Posts tagged with: development

SR-culture-index-2014-Scorecard_Poverty-and-Dependence.The Heritage Foundation has released their 2014 Index of Culture and Opportunity, the first annual report that tells how social and economic factors relate to the success of individuals, families, opportunity, and freedom. Through charts that track changes, and commentary that explains the trends, the Index shows the current state of some key features of American society and tells whether specific indicators are improving or getting off track.

Here are a few highlights from the report:
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[Part 1 is here.]

In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)

poverty-declinedWould you say that over the past three decades (since about the mid-1980s) the percentage of people in the world who live in extreme poverty — defined as living on less than $1.25 per day — has:

A) Increased
B) Decreased
C) remained the same

The right answer is B: extreme poverty has decreased by more than half. Yet according to a recent Barna Group survey more than eight in 10 Americans (84 percent) are unaware global poverty has reduced so drastically, and more than two-thirds (67 percent) say they thought global poverty has risen during that period.

Additionally, more than two-thirds of US adults (68 percent) say they do not believe it’s possible to end extreme global poverty within the next 25 years. One exception to this pessimism is practicing Christians. Defined by Barna as people who have attended a church service in the past month and say their religious faith is very important in their life, practicing Christians under 40 are the most optimistic at nearly half (48 percent), with practicing Christians over 40 slightly higher than the general population (37 percent compared to 32 percent of all adults).

The reason for the pessimism about eradicating extreme poverty generally fall into one of five categories:

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Nigerian school girls

Nigerian school girls

I don’t know any terrorists, but they seem to be very fearful people. They are afraid of new ideas, other religions, air strikes, and bathing. Nicholas Kristof, of The New York Times, says that what terrorists are really afraid of are educated women.

Kristof points out that the Boko Haram did not choose to bomb a church or go after politicians. They targeted a girls’ school. The biggest threat to a terrorist is a woman who can read, write, work, and raise educated children.

Why are fanatics so terrified of girls’ education? Because there’s no force more powerful to transform a society. The greatest threat to extremism isn’t drones firing missiles, but girls reading books.

In that sense, Boko Haram was behaving perfectly rationally — albeit barbarically — when it kidnapped some of the brightest, most ambitious girls in the region and announced plans to sell them as slaves. If you want to mire a nation in backwardness, manacle your daughters.

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Children-in-PovertyFrom the fiscal to the familial, conservatives have the right answers, says Kevin D. Williamson:

The conservative hesitancy to put the issue of poverty at the center of our domestic economic agenda, rather than tax rates or middle-class jobs, is misguided — politically as well as substantively. Any analysis of the so-called War on Poverty, officially at the half-century mark this year, will find that the numbers are very strongly on the side of the conservative critique of the welfare state: We spend a great deal of money, achieve very little in the way of measurable positive good, and inflict a great deal of destruction on families and communities in the process. Addressing poverty in a meaningful and robust way calls for a response from every part of the conservative coalition, because we have a generation’s worth of social-science research documenting that poverty is only partially an economic phenomenon. Poverty is complexly intertwined with marriage and family, with childbearing habits, and with the prevailing norms in local communities. The cause-and-effect relationships here can be complicated, and they operate at the community level as well as the individual level: For example, poor children with married parents experience better long-term economic outcomes than do those with single parents, but the more significant variable, according to a fascinating Harvard study on the subject, is the prevalence of marriage in their communities. It matters whether a poor child has married parents, that is, but it matters even more how many of his friends and classmates have married parents. The free market is part of the solution here, but it is only a part of the solution. But whether the question is the organization of our families, the organization of our tax code, or the organization of our schools, conservatives are well-positioned to step in and do something about the mess the Left has made of things, if only conservative leaders — and, especially, Republican elected officials — were more inclined to do so.

Read more . . .

Blog author: johnteevan
posted by on Thursday, April 17, 2014

There are several ways to understand that poverty is expensive.

First poor people pay more for the things they buy or they find that cheap stuff is not good. The poor find it hard to pay for housing which leads to having a harder time saving money even by cooking. The poor have a hard time using a bank or even cashing a check without high fees.

Then there are the lower wage part-time jobs that some bosses make worse by urging people to work a few minutes or more or even over lunch for free.

A second way to look at the expense of poverty was highlighted by the 50th anniversary of the War on Poverty. The amount spent on poverty reduction, $1t annually, is terrifically expensive. Most of that comes from 80 means-tested federal programs according to Heritage’s Steven Moore.

A trillion dollars is equal to each of 45m people having $22,222. Of course, money is not given to people, there is a vast government and private web of helpers who work hard to improve conditions for those in poverty.  And they are paid well.

The third way, a way I think is better than the first two, is to count the cost of poverty in terms of wasted lives, wasted opportunity, and loss to our society.

If even 15m people went to work and earned $22,222 our GDP would thrive, tax revenues would rise and programs to help the poor would require dramatically less money.

There is dignity to work, satisfaction in working with others to meet a goal, and the pleasure of doing your job well and being paid for it. Millions are missing that opportunity and are living lives that tend toward mere passivity.

The high cost of poverty is essentially a human cost that is not limited to economic deprivation. The upside is that many who have little tend to be more spiritually rich than others though this idea is treated as a phony sop to keep people down.

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 . . .

Philosopher and theologian, Michael Novak recently delivered a speech at the Catholic University of America on the vocation of business and Forbes published the transcript. Novak argues that “capitalism is lifting the world out of poverty.” As many Asian and African economies shift from socialist to capitalist, they are seeing enormous economic growth, and small businesses are the force behind these economic gains:

Even in developed nations, most jobs are found in small business. In Italy, over 80 percent of the working population works in small businesses. In the U.S., the proportion is just about 50 percent, but some 65 percent of new employment is in small businesses.

During the great economic expansion of 1981-1989, the U.S. added to its economy the equivalent of the whole economic activity of West Germany at that time. Sixteen million new jobs were created in the U.S., the vast number of them in small businesses. Startups peaked as new businesses came into being at a rate of 13 percent (as a portion of all businesses) – an all-time high. Much the same happened under Clinton in 1993-2001, but even better – 23 million new jobs were created.

In the creation of small businesses, four factors are necessary. First, ease and low cost of incorporation; second, access to inexpensive credit; third, institutions of instruction and technical help (such as the system of local credit unions in the U.S.), and the steady assistance of the extension services of the A&M universities; and, fourth, throughout the population habits of creativity, enterprise, and skills such as bookkeeping and the organization of work. Economic development is propelled, as John Paul II said, by know-how, technology, and skill (Centesimus Annus 32). Therein, perhaps, lie the greatest entry-points for Americans and others who wish to help poor nations by proffering assistance in economic development from the bottom up. (more…)

inner-city-main

Several months ago, in the wake of Detroit’s bankruptcy and the flurry of discussions surrounding it, Chris Horst and I co-wrote a post on how Christians mustn’t forget or neglect the role of business in our attempts to rebuild, restore, and reinvigorate failing cities.

In the latest issue of The City, we return to the topic, expanding a bit more on what exactly businesses contribute — materially, socially, and spiritually — and how Christians might adjust their imaginations in response. If a city’s economic future is driven in large part by entrepreneurialism, high levels of human capital, clustering of skilled workers and industries, or in the case of North Dakota’s Bakken region, bountiful natural resources, what role should the People of God play therein?

Of  course, churches musn’t pretend to be economic chess players — surveying cities and placing pawns accordingly — but certain economic drivers and actions are bound to influence the way our witness ultimately takes shape. What do we miss if we ignore such factors? (more…)

Blog author: jcarter
posted by on Thursday, October 31, 2013

Have you heard the good news about global poverty? The number of people living in abject poverty — defined as living on less than $1.25 per day — has been halved since 1990. Steve Davies of LearnLiberty explains how that happened and how in the near future we may be able to eradicate extreme poverty.