Posts tagged with: economics

extreme-povertyCan the world put an end to extreme poverty within the next 15 years?

That’s the current goal of the World Bank, and its expected that the United Nations will adopt that same target later this year.

In 1990, the UN’s Millennium Development Goals included a target of halving poverty by 2015. That goal was achieved five years early. In 1990, more than one-third (36 percent) of the world’s population lived in abject poverty; by 2010 the number had been cut in half (18 percent). Today, it is 15 percent.

Extreme poverty is defined as living on less than $1.25 a day. The new goal is to move almost all the world’s population about that line by 2030. Is that even possible?
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bribeIt is no secret that rule of law in places like Slovakia is weak. Corruption, pay-offs, bribes and twisted use of power often pass for “rule of law.” However, this problem has infected  health care as well, which means those who are able to bribe the doctor or health care worker is the one who will get the care.

The Economist describes Communist-era corruption as a holdover infesting much of central and eastern Europe, and not just in health care. However, it’s one thing to bribe an official to get a building permit; it’s quite another to have to do it for live-saving surgery.

In Latvia Valdis Zatlers, an orthopaedic surgeon who served as the country’s president from 2007 to 2011, accepted what he called “gratitude payments” from patients without declaring them to the tax authorities. He was fined just 250 lats ($466). A European Commission survey in 2013 found 28% of respondents in Romania and 21% in Lithuania had made informal payments to doctors, compared to an EU average of 5%. (more…)

Acton Institute President and Co-Founder Rev. Robert A. Sirico was in Argentina last week for Acton’s conference in Buenos Aires on Christianity and the Foundations of a Free Society, which is part of a series of Acton conferences being held around the world on the relationship between religious and economic freedom. While he was there, he was interviewed on Infobae.tv and spoke about the problems of poverty that Argentina is struggling with, and also addressed the relationship between Pope Francis and the media and politicians, and the security arrangements that are in place to keep the pope safe.

jane marcetJane Marcet is remembered most often for her scientific work in chemistry. Born in London in 1769, she was well-educated, and shared a passion for learning with her father. When she married Alexander Marcet, a physician, she would proof-read his work and eventually decided to publish her own thoughts.

In a series of pamphlets entitled, “Conversations,” Marcet wrote on chemistry, botany, religion, and economics. She was a member of the London Political Economy Club, founded by James Mill.

In the early 19th century there were no academic societies or professional associations for economists. The Political Economy Club was a way to establish a scientific community, test ideas, and provide peer review for their work.

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Unemployment-0306Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and for communities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need to know (see also: What Christians Should Know About Unemployment).

Positive news is marked with the plus sign (+) while negative employment data is marked with a minus sign (-). No significant change is marked by (NC).
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On Friday afternoon, Acton Institute President Rev. Robert A. Sirico joined Neil Cavuto on Fox News Channel to discuss the notable lack of outrage on the part of the media in response to the slaughter of Christians by terrorist organization ISIS.

Yesterday, Acton’s Director of Research Samuel Gregg made an appearance on Relevant Radio’s The Drew Mariani Show to discuss Pope Francis’ recent comments calling money “the dung of the devil,” setting them in their proper context and discussing the Pope’s comments on cooperative organizations as well. You can listen to the interview via the audio player below.

and112812blogNear the top of the list of things I despise is companies that take advantage of the plight of the poor and desperate. But just above that on my list is something I hate even more: being poor and desperate. That’s why I loathe payday lending companies that charge usurious interest rates—and why I’m not yet ready to see them abolished.

Here’s how payday lending works. If you have a job (and pay stub to prove it), a payday lending company will allow you to write and cash a post-dated check. For this service the company will charge an absurd interest rate. A typical two-week payday loan with a $15 per $100 fee equates to an annual percentage rate (APR) of almost 400 percent. So if you need $100, you write the check for $115 and they’ll give you $100 in cash. Two weeks later they cash your check or you can renew or “rollover” the amount—for an exorbitant fee.

Why would anyone agree to such terms? Because they have no other choice. About twenty years ago I made some terrible choices and found myself in a serious financial bind. The amount I needed wasn’t much—about $200—but without it I wouldn’t have been able to pay my rent. I took out a payday loan that cost me $30 every two weeks. It took about eight weeks to get clear of the loan, resulting in a cost of $120 to borrow $200 for two months.

If you’re middle class and think of it in terms of interest rate, that repayment cost sounds appalling usurious. And it is. But as the poor will tell you, man does not live on APR alone. Having to pay an extra $120 was cheaper than having to find a new place to live. Yes, it was a bad deal. But it was better than all my other choices.

That is why I believe every serious critique of payday lending needs to be accompanied by a serious proposal to help those who are trapped by such “poverty problems.” An excellent example of an alternative approach is the one offered by Wesley Memorial United Methodist Church in Richmond, Virginia. One of their church members, Nina McCarthy, was initially trapped in the vicious payday lending circle:
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Marie Harf, U.S. Department of State

Marie Harf, U.S. Department of State

I do not believe Marie Harf is an eloquent speaker, but I did think her “jobs for ISIS” remarks made some sense. We know that in American cities, for instance, if young men do not have education and jobs, they get into mischief. The kind of mischief that includes gangs and drugs and violence. Why would we expect that young men in Libya, Iraq, and elsewhere would be any different?

Apparently, I’m not the only one. While others have sneered at Harf’s comments as being simplistic, a few are tentatively suggesting she is not as far off-base as first thought. The National Review‘s Tom Rogan says this: (more…)

primer-baptistI recently pointed to a helpful talk by Greg Forster to highlight how understanding economics is essential for developing a holistic theology of work, vocation, and stewardship. Economics connects the personal to the public, and prods our attentions and imaginations to the broader social order. In doing so, it alerts us to a unique and powerful mode of Christian mission.

In his latest book, Flourishing Faith: A Baptist Primer On Work, Economics, And Civic Stewardship, Chad Brand expands on this point, listing five reasons why pastors and seminaries (and thus, lay people) would do well to dig deeper into the realm of economics. (The following titles are paraphrased summaries, with the corresponding text pulled directly from Brand.)

1. The Bible Deals with Economic Issues

First, the Bible deals with economic issues…It addresses matters of stewardship of our world (Gen. 1–3; Gen. 9:1–7), of God’s ownership of creation (Matt. 6:25–30; Col. 1:16–20), and of economic shalom (Lev. 25:1–55; Acts 2:42–47; 2 Thess. 3:6–10), and other important issues given more detailed discussion in [this book].

2. Economics Helps Us Understand the Public Square

Second, an understanding of economics and especially of political economy can help us understand what is going on in the world around us. The general election…is impossible to follow without some understanding of the implications of Obamacare and its impact on Medicare, the federal deficit, and the long-term effects of continued deficit spending. The posturing on the part of Republicans and Democrats sometimes seems like little more than rhetoric, but the one who understands what is really at stake can help lead people to a better understanding of their responsibility in the public square.

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unbalanced“The bottom half of the world’s population owns the same as the richest 85 people in the world.”

The stat was quoted last month in a report by the development organization Oxfam, but similar claims have become common. You’ve probably seen this statistic—or one like it—before in articles about economic inequality and assumed they must be somewhat true.

But they aren’t. In reality, they are completely meaningless.

One of the problems is that the comparisons are based on net worth (assets minus liabilities). If you aggregate all the people who have a negative net worth into one category and call them the “bottom half” then you come up with some peculiar conclusions. As Felix Salmon says, “My niece, who just got her first 50 cents in pocket money, has more money than the poorest 2 billion people in the world combined.”
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