Category: Effective Compassion

Blog author: abradley
posted by on Monday, August 25, 2014

Bruton_Church,_WilliamsburgThis summer I made a visit to Colonial Williamsburg in Virginia, and on a tour of churches, I heard a fascinating explanation of how society functioned when the church was the place where the poor had their material needs met, not the government. The Bruton Parish Church in Williamsburg is one example.

According to church records, Burton Parish formed in 1674 following the merger of several colonial parishes originating as far back as 1633. As a Church of England congregation, this Anglican parish church was the center of life and culture. For example, during the era of the American Revolution men like George Washington, Thomas Jefferson, and Patrick Henry attended the church. Not only did prominent people in politics attend the parish church, the church also served the central location for providing social services for the poor.

In 17th and 18th century Williamsburg, Virginia helping the poor was assumed, as a social norm, to be the responsibility of the church, not the state. In the Bruton Parish, the vestrymen, in addition to managing the affairs of he parish, were responsible for all poverty related social services. In the Anglican church, the vestry was established as a committee elected in local congregations to work with the wardens of the church to meet various needs. During the colonial era, if a person did not have adequate housing, adequate food or clothing, if women were widowed and children were orphaned, and so on, it was simply an assumption that the church would meet the needs of those on the margins locally and personally.
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Blog author: dpahman
posted by on Wednesday, August 20, 2014

Reading through the German economist Walter Eucken’s work The Foundation of Economics (1951), I came across one of the most helpful charts for economic analysis I have yet to find. In it, Eucken gives every possible form of market in a single table:

Eucken Chart

The Foundation of Economics, p. 158

Eucken adds four qualifications that are important to keep in mind:

  1. “These forms of market are actual forms which have been or are to be found in actual economic life (often blended with one another, and existing alongside the forms of a centrally directed economy). They are not given a priori. They are discovered with their distinguishing characteristics by studying the planning data of those taking part in the market….”
  2. “Under each particular form of market a man can act according to different principles, for example, that of maximum net receipts or that of optimum output….”
  3. “Each of these forms of market can appear in four types: both open, both closed, or closed on either side only.”
  4. “Fixing of prices by the state occupies a special position, since it can follow any form of market and has different effects accordingly…. For example, the significance of coal prices being fixed by the state varies according to whether perfectly competitive, oligopolistic, or monopolistic supply, or some other form of market, exists, or whether both sides of the market are open, or whether the supply side is closed by an investment veto. Governmental price-fixing is to be treated as a variant of the different market forms and not as a special market form of its own.”

So, what does this amount to? (more…)

Blog author: jballor
posted by on Thursday, August 7, 2014

Saul Bellow, 1990Saul Bellow is a writer who has affected me profoundly before. I have recently found a pair of essays given by him as part of the Tanner Lectures under the title, “A Writer from Chicago.”

They are substantive and serious, and occasionally pithy. For instance, Bellow observes that “a degenerate negative romanticism is at the core of modern mass culture,” “Humankind is always involved in some kind of metaphysical enterprise,” and, “The descent into subhumanity begins with the thinning out of the imagination.”
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Blog author: mvandermaas
posted by on Tuesday, July 29, 2014
Crucible of Poverty

Stuart Ray, Donn Weinberg, and Anielka Munkel discuss solutions to poverty – July 17, 2014

On July 17th, the Acton Institute hosted a panel discussion titled “The Crucible of Poverty: Perspectives from the Trenches.” The discussion examined the issue of poverty, with a focus on what strategies for poverty alleviation have worked, what strategies have failed, and how we can better help the most vulnerable among us.

The panelists for the discussion were Mr. Stuart Ray, Executive Director of Guiding light Mission in Grand Rapids, Michigan; Mr. Donn Weinberg, Executive Vice President of The Harry and Jeanette Wienberg Foundation; and Ms. Anielka Munkel, Project Manager here at the Acton Institute, and a co-producer of the PovertyCure DVD series.

The discussion ranged from analysis of the roots of poverty in west Michigan to questions of federal policy relating to poverty, and how foundations can ensure that grant recipients are actually pursuing the goals supported by foundations.

The full discussion is available via the audio player below.

immigration pledgeIn a commentary for the National Catholic Register, Acton’s Director of Research Sam Gregg considers the topic of immigration, specifically the current U.S. border crisis. Gregg views the border crisis through the lens of Catholic Social Teaching, which he says gives us a principled and thoughtful (as opposed to emotional) framework.

We also have a rich tradition of teaching about political questions that embodies principles based upon the Gospel and the natural law: principles that lay Catholics have the primary responsibility, as Vatican II underscored, to apply to complex subjects such as immigration.

Catholic teaching on immigration contains many exhortations to be merciful. Indeed, the commandment to love our neighbor often means we’re required to go beyond the strict demands of justice, albeit not in ways that violate justice. At the same time, the Church articulates a framework for thinking — rather than merely emoting — through the immigration issue in a manner consistent with Catholic concerns for liberty, justice, human flourishing and the common good. And part of this involves affirming that there is a right — albeit not an unlimited right — to migrate.

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Recently, the World Bank agreed to partner with Nicaragua to give the country 69 million U.S. dollars in aid. This poses the immediate question of whether or not this aid will be effective in producing its stated goal of decreasing poverty and increasing economic productivity. Should the World Bank continue to give money to the government of Nicaragua, which – especially of late – has been showing a decrease in political stability and democratic processes? History shows that international loans provide little help when countries suffer from decreases in stability and equality within their system.

The World Bank justifies the money that Nicaragua receives: “Nicaragua has achieved a real Gross Domestic Product (GDP) growth of 5 percent in 2012 and 4.6 percent in 2013, returning to pre-crisis growth levels.” GDP, however, does not paint a complete picture of the country’s performance. Most of the wealth within Nicaragua is located among the upper class, making the GDP less accurate for the country as a whole. Gross Domestic Product in purchasing power parity (PPP) in 2012 was estimated at $20.04 billion USD, and GDP per capita in PPP at $3,300 USD, making Nicaragua the second poorest country in the Western Hemisphere.
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Arthur Brooks, president of the American Enterprise Institute, challenges conservatives to think and act differently in the fight against poverty and income inequality. He says conservatives must acknowledge that we have income inequality in our society, and be willing to do something about it. That does not mean income redistribution. Rather, he says, we must be willing to do what actually helps the poor.

Brooks is clear: what helps the poor is free enterprise. However, much of our political rhetoric is about things and ideas, and not people. People, he says, need to know that we care more about them than about ideas. People want to know someone is willing to fight for them, not a set of political or economic ideas.

He poses the question, “How do people change their lives?” In talking with people who have brought themselves out of poverty, he says three things are clear. People must be willing to make moral transformations and take responsibility for their own lives. They must have a dependable but short-term safety net from the government for extreme circumstances, and they must have hope. People need to know that if they work hard and commit to changing their lives, they can succeed. However, Brooks says that isn’t happening enough or fast enough in our country, and people lose hope.

Take a few minutes and listen to his thoughts on work, entrepreneurship and education.

Blog author: ehilton
posted by on Tuesday, July 1, 2014

smart piggyChristopher Blattman, an associate professor at Columbia’s School of International and Public Affairs, thinks giving cash to the poor is a good idea. Not free meals, not tickets to redeem for food, but cash. And it just might work.

Blattman writes in The New York Times of the experience of giving cash to the poor. The knee-jerk reaction to this idea is, “Well, they’re just gonna waste it.” But Blattman finds evidence to the contrary.

Globally, cash is a major tool to fight extreme poverty. The United Nations is handing out ATM cards to Syrian refugees alongside sacks of grain. The evidence suggests these cash programs work. There have been randomized trials of cash grants to poor Mexican families, Kenyan villagers, Malawian schoolgirls and many others. The results show that sometimes people just eat better or live in better homes. Often, though, they start businesses and earn more.

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offering-plateDespite the struggling-to-recover economy, charitable giving by Americans continues to rise. But a smaller proportion of this money is going to religious organizations.

According to a newly released report by Giving USA, total estimated charitable giving in the U.S. rose 4.4 percent between 2012 and 2013, to $335.17 billion in contributions. The single largest contributor to the increase in total charitable giving was an increase of $9.69 billion in giving by individuals. In 2013, per capita giving by U.S. adults reached $1,016, and average U.S. household giving reached $2,974.

Giving increased for three of the four sources of giving. Only giving by corporations declined slightly in 2013, notes Tom Watson of Forbes, because of the slow rate of growth in pre-tax corporate profits in 2013, at 3.4 percent.

Unfortunately, charitable contributions to religion continue to slow. The report attributes this to the result of declining religious affiliation and attendance and religious-oriented charitable organizations categorized within other subsections.

But as The Economist points out, the sharp overall rise in charitable giving has been driven by the very rich, who tend to favor secular charities:
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hospiceI don’t know anyone who doesn’t believe that hospice is a good idea. The medical and emotional support offered by hospice workers to the terminally ill and their families is invaluable. And thanks to the Affordable Care Act, hospice is going away. Michigan Hospice of Holland is closing their doors. Their executive director explains:

The biggest issue under the Affordable Care Act is…that we’re going to see cuts in reimbursement- it’s going to be at least 12 percent. We projected out what those cuts are going to do to the organization long term and we realized that in a short period of time, we’re going to be pulling money from our savings in order to keep the house open…”

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