Category: Poverty

povertycureWhile serving in an inner city ministry, Ismael Hernandez began to have doubts about whether he was effectively serving the poor. “For the first time in my ministry work I felt dissatisfied with what I was doing,” says Hernandez. “I saw that I was simply a ‘stuff-giver’, a bureaucrat of compassion, and under the weight of the free stuff I was dumping at the poor was their spirit, slouching aimlessly, awaiting.” He realized that the human person is not only called to change but also to choose:

Christian anthropology asserts that from the beginning of our lives we are created as subjects, not objects moved by forces; even if these forces are well intended. In pursuit of the safety that a parasitic life offers, some find comfort in the boredom of meaningless life or on the pity of others. The truth is that much of what we were doing for the poor was about ourselves and how it made us feel. We began and ended in moral posture that justified our endless call for resources to pass on to others; never daring to challenge the poor themselves, as that was blaming the victim. We had become the brokers and middlemen of a flow of goods passing from a set of hands to another but barely making a dent in the condition of those who ended up with the loot.

Read the rest to hear Hernandez’s five essential principles of poverty-alleviation.

War on Poverty special page article banner“Why, if we have made such great strides reducing poverty,” asks Scott Winship, “is there such widespread belief that, to quote Ronald Reagan, ‘We fought a war on poverty, and poverty won’?”

We won the War on Poverty in the sense that the prevalence of material hardship has declined. According to Meyer and Sullivan, just 8 percent of Americans live at the low standard of living endured by a third of Americans in 1963. But it was a limited and costly victory. Elderly entitlements will bankrupt the country moving forward. Great Society-style no-strings-attached welfare may have had behavioral and cultural impacts that have hurt child opportunity at the bottom. Upward mobility has not expanded. The conservative turn toward welfare reform after 1980 and the limited embrace of a work-promoting safety net by New Democrats produced an important shift in anti-poverty policy, but historically conservatives have not been constructively engaged in formulating a positive opportunity agenda for children at the bottom. That this is changing is the most hopeful sign in domestic policy in some time.

Read more . . .

The New York Times unwittingly highlights many of the points from the Acton Commentary, Maria Shriver’s Big, Big Government Rescue Plan For Women. In a piece entitled “Sarah’s Uncertain Path,” the Times takes a  look at poverty in America, focusing on a pregnant 15 year old girl.

Sarah’s family certainly has a rough go of it. And the Times would lead us to believe, just as the aforementioned Government Rescue Plan, that Sarah’s family and those like them are victims:

There is a myth in America: if you have a strong moral compass, work hard and make good choices, you will have equal opportunity. But after two years of listening to and documenting low-income families in rural America…we have witnessed a starkly unequal playing field.

(more…)

mother and daughterIs America inherently unfair to females? Do we need to expand government programs and invest in new ones in order to get women out of poverty and keep them above the poverty line?

Carrie Lukas, the managing director at the Independent Women’s Forum, believes the answer is a resounding, “No!” Lukas replies to the recent Shriver Report: A Woman’s Nation Pushes Back From the Brink. There are a lot of negative issues with this report, but Lukas says the primary one is selling “American women on the progressive political agenda.” The overall message of the report: “women are under siege in America, and only bigger government can save them.”

Lukas notes the flaws in The Shriver Report:

There is no recognition that a higher minimum wage and more generous mandatory paid leave programs can destroy job opportunities for women, particularly women seeking flexible work arrangements. There is no discussion of how the war on poverty itself, by encouraging the breakdown of the family, has contributed to many women’s current predicaments. There is no consideration of how existing government regulations, from our regulations on energy, to food, to health care, drive up the cost of everything American families must buy and discourage job creation, robbing people – particularly those “on the brink” with the fewest skills – of desperately needed employment opportunities.

(more…)

100930_minimum_wageYesterday I mentioned that translating economic principles into intuitive concepts is one of the most urgent and necessary tasks to prevent such evils as harm to the poor. Today, William Poole provides an excellent example of what is needed with his “common-sense thought experiment” on minimum wage increases:

Suppose Congress were to enact a minimum wage $50 higher than the current one of $7.25 per hour. Would a minimum of $57.25 reduce employment? I know of no economist who would assert a zero effect in this case, and recommend that readers ask their economist friends about this thought experiment. Assume that the estimate is that a minimum of $57.25 would reduce employment by 100,000. The actual number would be far higher but 100,000 will do for this thought experiment. Now, consider several other possible increases of less than $50. The larger of these increases would have substantial effects, the smaller ones smaller effects.

But is there reason to believe that a minimum of $10 would have no effect? I have never seen a convincing argument to justify that belief. If you accept as a fact that a minimum wage of $57.25 would reduce employment, and you accept as a fact that some workers are currently paid $7.25 per hour, then logic compels you to believe that a small increase in the minimum wage above $7.25 will have at least a small negative effect on employment.

The only escape from this logic is to believe that there is a discontinuity in the relationship between the minimum wage and employment. No one has offered evidence that there is a discontinuity at a certain minimum wage such that a minimum above that has an effect and one below does not.

Far too often, advocates of minimum wage increases tend to dismiss such thought experiments before giving them due consideration. I think I know why. I don’t mean to cast aspersions on their motives (it certainly sounds like I’m about to cast aspersions on their motives, doesn’t it?), but I suspect they fear that admitting the undeniable logic of this reasoning will cause them to lose the moral high ground.
(more…)

Many people believe laws to protect ownership and private property primarily favor the wealthy. But as Prof. Dan Russell explains, lack of property protections can lead to abject poverty.

(Via: Institute for Faith, Work, and Economics)

A recent speech by U.S. Senator Marco Rubio laid out what his press office terms “Conservative Reforms for Combating Poverty.” It began well and had a nice line or two emphasizing the role family breakdown plays in perpetuating generational poverty, but then it went all technocratic and wobbly.

So, for instance, at one point he argued that a lack of education is one reason for the decline of marriage among the poor, noting that “64% of adults with college degrees are married, while only 47% of those with a high-school education or less are.” How does he know that being married doesn’t make one more likely to pursue higher education, or that both tendencies aren’t caused by something else? (more…)

On Monday afternoon, Acton Institute President Rev. Robert A. Sirico was a guest on “Faith, Culture, Politics: In That Order” on the Guadalupe Radio Network, which broadcasts primarily in Texas. Rev. Sirico engaged in an extended discussion of Catholic Social Teaching, with a great deal of time dedicated to Pope Francis’ particular style and emphasis in dealing with some of the more controversial matters of our time. You can listen to the interview via the audio player below.

Update: The embedded audio appears to be having problems; you can go to the Soundcloud page for the interview by clicking this link.

I’ve just returned from Bangalore, where I attended a conference on “Bounds of Ethics in a Globalized World” at Christ University, which is run by the Carmelites of Mary Immaculate, the first Catholic religious order started in India. The headline attraction on the opening day was the appearance of the Dalai Lama and his remarks promoting “secular ethics.” This may seem surprising coming from one of the world’s most famous religious leaders (and a monk, at that), but like his counterpart in Rome, the Dalai Lama has a talent for speaking to the irreligious in a way that challenges and flatters democratic prejudices at the same time.

Being completely ignorant in Buddhism, I will refrain from evaluating the orthodoxy of his adoption of secular rather than religious ethics. The Dalai Lama knows how to poke fun at seemingly pious people by highlighting their hypocrisy. He preaches using liberal concepts like compassion and equality that are pleasing to the ears of the audience; in fact, he makes living with compassion by renouncing oneself the key to happiness. He goes even further by stressing that the world would be better off with perfect equality and no leaders to pose as authorities. And he does it all so easily, with a smile and joking asides that make him seem like your not-completely-all-there grandfather, which is all this one would be if he wasn’t the 14th incarnation of a great Tibetian leader, feared and exiled as a boy by communist China.  The Chinese would prefer to see him renounce his leadership as well.

In spite of his treatment by the Chinese government, the Dalai Lama called himself a “social and economic Marxist” during his talk, saying that capitalism is only about “money, money, money.” He said this while also speaking well of George W. Bush, the United States, and even suggested that NATO headquarters should be moved to Moscow in order to spiritually disarm the Russians. Listening to him makes you think that human pride could simply be shamed out of existence. It would be too easy to call his ideas contradictory and utopian. (more…)

“Today’s welfare state is largely the construction of decades of liberal political activism,” writes James C. Capretta. “If it is failing, and there is strong evidence that it is in many ways, then that is a stinging indictment of the liberal governing philosophy more than anything else.” He argues for more conservative activism on the poverty problem, particularly in education.

An effective conservative critique of existing policies starts with the acknowledgement that a strong social safety net is a must in a modern, market-based economy, and that the safety net built here in the United States, though flawed, has contributed substantially to improving the conditions for the poor. The official measure of the poverty rate is completely misleading in this regard because it does not include transfer programs or the taxes people pay in the measure of income. So, in a very real sense, no matter how much the government spends, the official poverty rate remains unchanged.

But when tax and transfer programs are factored into the assessment, and when the consumption patterns of the poor are examined and not just their cash incomes, the picture changes quite dramatically. The panoply of governmental support programs—Medicaid, Food Stamps, the earned income tax credit, housing vouchers, school lunch programs, and many more—substantially raise the living standards of those who otherwise have very low incomes. (more…)