Category: Effective Compassion

Blog author: johnteevan
Friday, August 29, 2014
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In his August 24, 2014 syndicated column Scott Burns tells of a study by Dunn and Norton who give five principles for having “Happy Money.”

  1. Buy experiences not things: go to Chicago rather than buy a new stuff.
  2. Make it a treat: don’t keep ice cream in the house, make it special by anticipating going out every Tuesday night for ice cream.
  3. Buy time: we are “time poor” people so slow down and avoid expenditures that devour time.
  4. Pre-pay your vacation so you don’t worry about spending “all that money.”
  5. Invest in others: give gifts or cash or support someone on a ministry trip or hand out $20 when you feel like it.

These ideas will help remove the tendency to endless question of “Is this worth it?” Burns does not mention it, but giving money to church, mission, health, poverty, orphan care or directly to people in need is “Happy Money” as well.

Earlier this month, I wrote a two part article for the Library of Law & Liberty, critiquing the uncritical condemnation of income inequality by world religious leaders.

In part 1, I pointed out that “while the Pope, the Patriarch, the Dalai Lama, and others are right about the increase in [global income] inequality, they are wrong to conclude that this causes global poverty—the latter is demonstrably on the decline. And that, I would add, is a good thing.”

F. A. Hayek

In part 2, drawing on the work of F. A. Hayek, I noted, “As societies learn to use their resources ‘more effectively and for new purposes,’ the cost of manufacturing luxury goods decreases, making them affordable to new markets of the middle class and, eventually, even for the poor.” I continue, “Such inequality not only accompanies the very economic progress that lifts the poor out of poverty, it is one essential factor that makes that progress possible.”

We may add to this two more ways in which focusing solely on income inequality can be misleading from article in the Wall Street Journal yesterday by Nicholas Eberstadt: increased equality in lifespan and education. He writes,

Given the close correspondence between life expectancy and the Gini index for age at death, we can be confident that the world-wide explosion in life expectancy over the past century has been accompanied by a monumental narrowing of world-wide differences in length of life. When a population’s life expectancy rises from 30 to 70, the Gini index drops by almost two-thirds—from well over 0.5 to well under 0.2.

This survival revolution—and the narrowing of inequalities in humanity’s life chances—is an epochal advance in the human condition. Since healthy life expectancy seems to track closely with overall life expectancy, a revolutionary reduction in health inequality may also have occurred over the past century. Improvements in global mortality for the poor have contributed to the very “economic inequality” so many now decry. This is another reason such measures can be deceiving.

The spread and distribution of education has had a similar impact. In 1950 roughly half of the world’s adults—and the overwhelming majority of the men and women from low-income regions—had never been exposed to schooling. By 2010 unschooled men and women 15 and older account for a mere one-seventh of the world’s adults, and about one-in-six from developing areas. (more…)

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
Wednesday, August 20, 2014
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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
Thursday, August 7, 2014
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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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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.

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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