Category: Poverty

In USA Today comes this story from the Associated Press:

VATICAN CITY (AP) — Pope Francis on Wednesday permanently removed a German bishop from his Limburg diocese after his 31 million-euro ($43-million) new residence complex caused an uproar among the faithful.

Francis had temporarily expelled Monsignor Franz-Peter Tebartz-van Elst from Limburg in October pending a church inquiry.

At the center of the controversy was the price tag for the construction of a new bishop’s residence complex and related renovations. Tebartz-van Elst defended the expenditures, saying the bill was actually for 10 projects and there were additional costs because the buildings were under historical protection.

But in a country where Martin Luther launched the Reformation five centuries ago in response to what he said were excesses and abuses within the church, the outcry was enormous. The perceived lack of financial transparency also struck a chord since a church tax in Germany brings in billions a year to the German church.

The Vatican said Wednesday that the inquiry into the renovation found that Tebartz-van Elst could no longer exercise his ministry in Limburg and that Francis had accepted his resignation, which was originally offered Oct. 20.

Back in October, I was part of a panel of guests on the BBC program World Have Your Say, discussing the question, “Should Religious Leaders Live a Modest Life?” The springboard for the conversation was the scandal surrounding Monsignor Franz-Peter Tebartz-van Elst.

At the Boston Globe yesterday, John Allen sees this as a potential sign of a social gospel alliance between Pope Francis and President Obama, whose first meeting is today: (more…)

wallet-lockWhen bank robber Willie Sutton was asked why he robbed banks, he is (mis)quoted as having said, “Because that’s where the money is.” Turns out that is also why there is more street crime in poorer neighborhoods: because that’s where the cash is. Or at least it’s where the case was.

It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional anonymity. In poor neighborhoods — where street offenses are concentrated — a significant source of circulating cash stemmed from public assistance or welfare payments. But starting in the 1990s that changed, as the Federal government gradually phased out paper welfare checks in favor of electronic debit cards (the Electronic Benefit Transfer [EBT] program).

A team of researchers studied the effects of this change in Missouri and found that it was directly responsible for a hefty 10 percent drop in the overall crime rate:
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church busImages of Mississippi needing federal assistance are iconic. Robert F. Kennedy’s 1967 trip to Mississippi’s Delta region produced images of poverty not unlike LBJ’s War on Poverty tour. Jennifer Haberkorn has written a piece at Politico titled, “Obamacare enrollment rides a bus into the Mississippi Delta.” Her snooty lede to the story reads: “In the poorest state in the nation, where supper is fried, bars allow smoking, chronic disease is rampant and doctors are hard to come by, Obamacare rolls into town in a lime green bus.”

It appears the author believes Obamacare could bring the good news of salvation if only Mississippians skeptical of the federal government would let it. Haberkorn writes:

The effort in Mississippi illustrates the obstacles the health law must overcome in many parts of the country, particularly in deeply conservative areas where antipathy toward Washington mixes with challenges of geography, education and general skepticism or ignorance of the Affordable Care Act. High rates of poverty and disease — which mark much of this state — don’t necessarily aid recruitment. Add the strident opposition of GOP leaders and enrollment gets that much tougher.

Haberkorn cherry picks a couple of positive stories where heavily subsidized consumers will save money under the Obamacare program, but totally ignores a major component of all the skepticism with the plan. Obamacare premiums in Mississippi are the third highest in the nation, only surpassed by Alaska and Wyoming. As of September 2013, a mid range plan cost $448 monthly, with costs expected to rise. (more…)

This past Saturday, I attended the Alleviating Poverty Through Entrepreneurship (APTE) 2014 summit. APTE is a student group at OSU in Columbus, OH, and they put together a wonderful cast of ten speakers on the subject of the future of social entrepreneurship. With seven pages of notes (front and back), I unfortunately cannot cover every detail of the conference, but instead I will briefly focus on a theme that recurred throughout the afternoon: private, often for-profit, solutions to public service problems facing the poor.

APTE brought together an impressive lineup of speakers for two rounds of individual presenters, followed by a Twitter Q&A, with a panel discussion on the city of Detroit in between the two groups: (more…)

Saul Reproved by Samuel, John Singleton Copley, 1798When decrying instances of do-gooder activism gone wrong, it’s become rather routine for critics to respond by saying, “good intentions aren’t enough” — and to a great extent, rightly so.

Yet, as I’ve argued before, in addition to critiquing the outcomes of our actions, we should also pause and ask whether our “good intentions” are all that good to begin with. If we are responding to some blurry impulse to “do something,” and that certain something ends up harming the very people we’re trying to help, what does that say about the origins of our actions? What does it say about the nature of the voices we’re heeding?

As Christians, we are called to help those in need. But from where does our direction come, and to whom does the glory ultimately go? As Peter Greer and Chris Horst explain, we outght to reach beyond humanitarianism, stretching for a level of whole-life transformation not easily comprehended by our earthbound categories and metrics. Such transformation will surely be “of this world” in many of its methods and effects, but it will necessarily correspond with a supernatural order — one that often runs contrary to our own plans and designs.

Far too often, we embrace God’s message even as we ignore his method. Each requires our close attention, of course, but the latter demands a closer level of prudence, prayer, and discernment than we typically acknowledge. (more…)

Bill GatesIn a recent interview with Rolling Stone, Bill Gates — the richest man in the world — shares his thoughts on poverty and inequality:

Should the state be playing a greater role in helping people at the lowest end of the income scale? Poverty today looks very different than poverty in the past. The real thing you want to look at is consumption and use that as a metric and say, “Have you been worried about having enough to eat? Do you have enough warmth, shelter? Do you think of yourself as having a place to go?” The poor are better off than they were before, even though they’re still in the bottom group in terms of income.

The way we help the poor out today [is also a problem]. You have Section 8 housing, food stamps, fuel programs, very complex medical programs. It’s all high-overhead, capricious, not well-designed. Its ability to distinguish between somebody who has family that could take care of them versus someone who’s really out on their own is not very good, either. It’s a totally gameable system – not everybody games it, but lots of people do. Why aren’t the technocrats taking the poverty programs, looking at them as a whole, and then redesigning them? Well, they are afraid that if they do, their funding is going to be cut back, so they defend the thing that is absolutely horrific. Just look at low-cost housing and the various forms, the wait lists, things like that.

Read more . . .

In an excerpt from the splendid PovertyCure series, Michael Fairbanks offers a helpful bit on why our attitudes about competition matter for economic development:

I can predict the future of a developing nation better than any IMF team of economists by asking one question: “Do you believe in competition?” When I go to Venezuela and I say, “do you believe in competition?,” they say “competition means the rich get richer and the poor get poorer.” They say “competition is the unnecessary duplication of effort because you have two firms doing the same thing.” They say “competition is a quaint North American concept that doesn’t apply here.”

But when I go to Silicon Valley and I say,“What do you think about the word competition?,” they say, “Well, I love competition, because even when I lose, I learn something. And my success is due to the fact that I speeded up my failures, and the only way to fail was to compete, and figure out where I wasn’t good enough.”

As Hayek put it, competition is a discovery procedure. If we neglect, distort, or downplay that process, we can expect the outcomes of discovery — the fruits of our sacrifice and service — to digress accordingly.

PovertyCure DVD Series

PovertyCure DVD Series

Join host Michael Matheson Miller on a journey around the world to explore the foundations of human flourishing, and learn how people are moving toward partnerships and pursuing entrepreneurial solutions to poverty rooted in the creative capacity of the human person made in the image of God. Meet religious and political leaders, entrepreneurs, missionaries, and renowned development experts, and discover the powerful resources Christianity brings to the pursuit of human flourishing.

Visit the official PovertyCure website for more information.

Regular Price: $59.99

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SNAP chartThe House Budget Committee has issued its report on The War on Poverty, 50 Years Later. It’s 204 pages long, so feel free to dig in. However, I’ll just hit some of the highlights.

Lyndon B. Johnson’s War on Poverty has created 92 government programs, currently costing us about $800 billion. The committee’s take on this is summed up as:

But rather than provide a roadmap out of poverty, Washington has created a complex web of programs that are often difficult to navigate. Some programs provide critical aid to families in need. Others discourage families from getting ahead. And for many of these programs, we just don’t know. There’s little evidence either way.

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Blog author: jcarter
Thursday, February 27, 2014
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Fracking_Graphic_t670Fracking is a slang term for hydraulic fracturing, a procedure of creating fractures in rocks and rock formations by injecting fluid into cracks to force them further open. The larger fissures allow more oil and gas to flow out of the formation and into the wellbore, from where it can be extracted. Fracking has resulted in many oil and gas wells attaining a state of economic viability, due to the level of extraction that can be reached.

Fracking has been around since the end of World War II, but it was only in the last decade or so that the economic incentives helped to make it more common practice. The result has been an increase in oil production — and an increase in controversy.

Gasland, a 2010 documentary, and Promised Land, a 2012 feature film starring Matt Damon, helped to turn public opinion against the process. The information in those films has been effectively rebutted, but the damage has already been done. According to a 2013 University of Texas poll, 41 percent of Americans oppose fracking.
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Dr. Seuss is renowned for his insights into human nature and development, along with an ability to communicate these insights in a way that is so straightforwardly simple that children can grasp the lesson immediately and intuitively.

Consider, for instance, the case of Thidwick the Big-Hearted Moose. Thidwick is a moose who cares about others, and so when the occasion arises, Thidwick is happy to share space on his antlers with a bug who needs somewhere to stay. But Thidwick’s generosity sets a precedent that can be abused, as increasingly pushy and impolite guests take advantage of Thidwick’s sentiment to impose themselves into his life. Thidwick has a heart for the poor, but as we often hear around the Acton Institute offices, that’s not enough. We need to have a mind for the poor as well.

thidwickguests
Benjamin Franklin once quipped that democracy is “two wolves and a lamb voting on what to have for lunch.” In Thidwick’s case, when he needs to migrate across the lake, the squatters on his antlers vote “democratically” against migrating.

The prospects for Thidwick look bad, indeed, as he has only one vote and therefore is facing starvation. But happily for Thidwick, his biology provide him with an escape, so to speak, from this unjust social arrangement.

Thidwick sheds his antlers naturally. But the larger lesson from Thidwick’s travails is that our political order has no such natural escape route. An exception may be the ability of the wealthy to vote with their feet, as in the case of France’s recent proposed 75% tax on the rich. This is perhaps part of the reason why Antonio Rosmini placed such importance of the “natural right” to “travel anywhere in the world.” As he put it, “Emigration cannot be denied to anyone who demands it.”

Consider, then, Thidwick as a cautionary tale of the temptations of social democracy and the dangers of democratic tyranny.