Posts tagged with: 20/20

On Valentine’s Day, just one day before having to tender its application to the International Olympic Committee in Lausanne, Switzerland, Italy’s pragmatic Prime Minister Mario Monti showed no romantic spirit by canceling his nation’s dream to host the 2020 Summer Olympics.

In a last-minute decision made Feb. 14, Prime Minister Monti explained at a press conference that the already overburdened Italian taxpayers simply cannot afford to finance the estimated $12.5 billion to bring the 2020 Olympic Games to Rome.  “I do not think it would be responsible, considering Italy’s current financial condition.”  (See video below.)

[youtube http://www.youtube.com/watch?v=VTiq0oBT2cI]

The news sent shock waves through the national media and angered Rome’s Mayor Gianni Alemanno, who had aggressively put together the logistical plan and budget.

Yet Monti is no dupe and was honest enough not to hoodwink his nation into taking on financial responsibilities it is in absolutely no position to accept.  Finally, we are seeing an Italian politician demonstrating some degree of practical realism and sense of sacrifice. The Italian Premier, while spearheading historic fiscal reforms, wants the country to wake up and smell its caffe by finally shedding the need to fund unwarranted public expenditures.

While time will tell whether Monti and his government are making wise decisions, the heart-wrenching financial assessment was based on few simple black and white economic facts. Italy has an unbridled a national debt to GDP ratio, which has swelled from 115 percent  in 2010 to 120 percent in 2011 while experiencing stagnant growth and uncontrolled inflation over the last 10-15 years. Next you have the nation’s toxic dependency on massive public welfare programs, despite Monti’s drastic attempts to change Italy’s entrenched entitlement culture.  Then you add in widespread tax evasion, very little new entrepreneurship among young business persons, the Italian bond and spread crises, Standard and Poor’s further stripping of Italy’s credit rating (from A to BBB+) and downgrading 34 of the country’s top credit institutions at the start of 2012 and you got a country that is on the verge of insolvency.

It couldn’t get worse, but a day after Monti renounced any Olympics bid ANSA news service announced Italy had officially entered a recession with negative growth recorded for the last two quarters.

No Olympics, no gold. But whatever wealth seemed guaranteed at the end rainbow, it would be foolish to think the 2020 Games would bolster an entire national economy for more than a very limited period (and quite realistically, only the benefactors of Italy’s crony capitalism and the mafia-infested public works sectors). 

It is high time that Italians themselves start permanently growing their economy through new forms of entrepreneurship — just like it did in its economic boom era when Italy last hosted the Summer Olympics in 1960 –  and not count on riding on the tails of the government’s large-scale, short-lived public projects.

John Stossel must have been on vacation last week.

I caught part of the 20/20 special offering for Earth Day on Friday night. Among the reports was one by Jay Schadler focusing on solar power as an alternative source of energy.

Schadler pointed out that even though the United States has only 5% of the world’s population, we consume 25% of the world’s energy. It’s a typical canard trotted out by those who want to depict us ugly Americans as “energy hogs.”

But instead of taking a deeper look at these kinds of statistics, the stats usually appear at the intro of a news piece as a hook leading into some other point about alternative energy.

But let’s take a brief look at the implications of such statistics. Let’s even accept them at face value. What such conclusions about the wastefulness per capita of American energy consumption overlook is the inherent connection between economic productivity and energy usage.

Yes, let’s say America’s share of worldwide energy usage is 25%.

But what is America’s share of the global economy? Somewhere between one-fifth and one-third of gross world product. So just maybe there is in fact a link between economic output and energy consumption.

Another aspect of this relationship appears when you run a historical series comparing per capita CO2 emissions and income growth on Google’s Gapminder software.

Blog author: kwoods
posted by on Friday, December 1, 2006

John Stossel’s 20/20 show last Wednesday night, “Cheap in America,” asked the tough questions about American generosity. It was an intriguing piece, weaving contrasting arguments for two key conclusions: Bureaucracies, government ones and even big charity ones (national or international), just don’t do as good a job as private, local donors and charities; and (2) Americans are truly more generous than any other people on the planet–no matter their means. Rich and poor alike give generously.

So the “Cheap Americans” slogans making their way around the globe are simply wrong. The well-intended persuaders, even personally generous high-profile Americans, who argue that poverty and disaster relief solutions rest with a bigger portion of the US GNP, demonstrate incomplete information at best, inaccurate at worst.

Stossel interviewed Arthur Brooks, someone I’ve had the pleasure of recently talking with at different charity award events. His new book Who Really Cares, rooted in extensive research of American charity, has made him a high profile voice at a most opportune time of year. He says, “When you look at the data, it turns out the conservatives give about 30% more. And incidentally, conservative-headed families make slightly less money.” Stereotypes that liberals care more and give more, and that a higher income means increased generosity simply aren’t supported.

So one point is clear, defensible, and should motivate that worthy end-of-year giving: Charity does it better. Private donations are more substantial and yield more positive effects on the givers and receivers than any government effort. Volunteerism, direct involvement with those in need, is extremely powerful and productive.

There’s a second, equally critical point, interestingly not in the sites of the “more government money to fight world poverty” campaigns: effective giving. Give to organizations that transform people’s lives and communities.

Jesus told a parable that emphasized stewardship (Luke 19). Don’t “just give,” with no discernment. Marvin Olasky put practical guidelines on such giving with his 7 Principles of Effective Compassion. Maclellan Foundation’s Marketplace encourages givers to be both intentional and proactive. There are multiple charity evaluation tools, albeit with different emphais and valuation paradigms. Due diligence results in good stewardship.

That’s a good reason to include investigation of local needs; the credibility of the appeals and the organizations are more easily verified. Don’t overlook such community needs amid the high gloss, professionally prepared stack of appeals that have already arrived in your mailbox.

Today’s online Philanthropy News Digest carries a story about high hopes among some charity hospital fundraisers based on current stock market performance. And hospitals that include significant charity services do have valid need. But what about little charities? Linda Czipo, executive director of the Center for Nonprofit Corporations in New Brunswick, adds “Not all organizations are going to benefit equally. For small organizations, the impact won’t be as large.”

Individual good stewards can change that proclamation. Giving that is direct, personal, and accountable is the best to give or to receive. Oprah gave her October 30 show audience a chance to prove that. Every member of Oprah’s audience went home with $1,000 and a Sony DVD Handycam with the challenge to “Pay it Forward” to others.…but there was a catch. Oprah challenged more than 300 audience members to donate their money to a charitable cause. Sisters Kristy O’Conner and Kasey Osborne Lumpp were in that audience.

After making some calls, the sisters came upon Atlanta Union Mission and its women and children’s center, My Sister’s House. Once they decided to help the Mission, they took Oprah’s challenge and worked to multiply the effects of their gift. The sisters did not stop with their respective $1,000 contributions. Instead, they asked Q100 for help in getting word out to the community about the needs of Atlanta Union Mission’s My Sisters House. Q100 jumped on board and asked Kroger to be a collection site for donations. In addition, the Mission has been featured every morning on Q100 this week with live interviews with staff, clients, and Kristy and Kasey. They also went to every retailer they could find soliciting donations for the Mission.

And Christmas came early to the women and children at Atlanta Union Mission’s My Sister’s House on November 3 when Kristy and Kasey presented nearly $130,000 worth of gifts and monetary donations they had collected during the previous week.

The president of Atlanta’s Rescue Mission reports that close to a quarter million dollars of inkind and cash gifts have been received as a direct result of the good stewardship of Kristy and Kasey.