John H. Armstrong tackles the question, “How Should Government Deal with Poverty?”
He writes, “A regular argument made, at least from some evangelical political voices from the political left, is to cite numerous Old Testament texts about poverty and then suggest that one of the central concerns of a just government is to solve the problems associated with poverty.”
A couple of weeks ago, I noted the amazing “just do it” outpouring of compassion in response to the wildfires in the Central Plains. My small home town in Oklahoma was among those areas burned or seriously damaged by the fires.
A Stanford expert on philanthropy argues that tax-deductible American charity is actually a government subsidy and that philanthropy is not ‘redistributive’ enough. Acton’s Karen Woods points out (obvious to most) that helping the needy is not the exclusive domain of the state. “The real problem with government ‘charity’ is that government takes a ‘one size fits all’ approach to the problem of poverty,” Woods writes.
After decades of civil unrest, the African nation of Liberia has elected the first female head of state in the history of the continent. Ellen Johnson-Sirleaf, a Harvard-educated economist and veteran of international affairs, was sworn in yesterday in the capital city of Monrovia. Founded in 1822, Liberia is Africa’s oldest republic, and the result of the work of the “American Colonization Society to settle freed American slaves in West Africa. The society contended that the immigration of blacks to Africa was an answer to the problem of slavery as well as to what it felt was the incompatibility of the races.”
Jeffrey Tucker at the Ludwig Von Mises Institute:
You might say that water needs to be conserved. Yes, and so does every other scarce good. The peaceful way to do this is through the price system. But because municipal water systems have created artificial shortages, other means become necessary. One regulation piles on top of another, and the next thing you know, you have shower commissars telling you what you can or cannot do in the most private spaces.
The long wait is finally over. Federal vouchers are coming!
Before you get too excited, however, I have to inform you that the vouchers are not for education. You can’t use these vouchers to send your child to the school of your choice.
Instead, because of the government-mandated switch for broadcast TV from analog to digital bandwidths, set for Feb. 17, 2009, upwards of 20 million television sets will be obsolete, only able to receive the then-defunct analog signals.
“To avoid a consumer revolt, Congress has set aside about $1.5 billion to smooth the transition. Owners of outmoded TV sets will be eligible for two vouchers, worth $40 each, to help buy converter boxes that will enable today’s analog TV sets to receive digital signals,” Fortune magazine reports.
The government argues that the move will open up huge new areas of bandwidth for greater technical innovation and delivery. Once broadcast TV is moved to the digital spectrum, the old analog bandwidths will be auctioned off, and the government stands to make a pretty penny on the deal. “The sale of this valuable, scarce real estate is expected to bring in about $10 billion, maybe more. That will help reduce the federal budget deficit,” writes Marc Gunther.
Of course, those companies buying up the newly-opened space will be better off too: “With the new auction, we will finally become a broadband nation,” says Blair Levin, a Washington analyst with Stifel Nicolaus. “Google, Yahoo!, Microsoft, Intel, Dell — these companies will all benefit. The more broadband pipes you have, the more applications will come along, the more often you will upgrade your device.”
The interesting thing about these digital tuner vouchers is that one argument for their issue is that the poor will be disproportionately affected by the switch. Gunther writes, “But for consumers with one of those 70 million sets — many of whom are likely to be poor, elderly or uneducated, being forcibly switched from one technology to another will be a nightmare.”
Gunther goes on to describe the “nightmare scenario,” in which “people who depend on free, over-the-air TV for news and entertainment will lose their access, or have to pay more for it, so that the rest of us can get faster service on our Blackberries and ESPN on our cell phones.”
Last I checked, news and weather information on which people depend is still freely available over the radio. And maybe some of us would be better off with less access to TV. AC Nielsen reports (PDF) that “During the 2004-05 TV season (which started September 20, 2004 and just ended September 18, 2005), the average household in the U.S. tuned into television an average of 8 hours and 11 minutes per day.”
We’ve all heard the stories about families on federal assistance in the inner city with big screen TVs, or living in trailer parks with satellite dishes. Nowadays, Marx might say that TV is the opiate of the people rather than religion, or better yet, that TV has become the religion of the people.
Read more on Federal Vouchers Are Coming!…
The Chronicle of Higher Education reports on the closing of a federal housing loophole. The full article is accessible only to subscribers, so I’ll summarize. College students for a number of years have been taking advantage of Section 8 (federally subsidized housing) rules to live in “projects” while they go to school. Such housing is, obviously, supposed to be for the needy, but decidedly un-needy students have been benefiting. The Des Moines Register originally investigated the story (described here) and Senator Tom Harkin of Iowa initiated the legislation to close the loophole. One student living at the expense of taxpayers was the son of the Univeristy of Iowa’s football coach, who earns $2 million per year.
With a gracious spirit, let’s say that [url=http://thomas.loc.gov/cgi-bin/query/F?c109:1:./temp/~c109UcVNaR:e173273:]Section 317[/url] of [url=http://thomas.loc.gov/cgi-bin/query/D?c109:1:./temp/~c109UcVNaR::]Senate Tax Relief Act of 2005[/url] was penned with the intent of fostering honest accountability in the charity world. And, furthermore, let’s graciously allow that the legislation was designed to send the message that the Internal Revenue Service is vigilantly watching over the donation of tax-deductible clothing and household goods.
A [url=http://www.washingtonpost.com/wp-dyn/content/article/2005/12/29/AR2005122901503.html]recent article[/url] in the Washington Post justifiably underscored the importance of providing goods to charities that actually have value. Too much of what is given to charities today winds up in the local dump.
But Congress was not thinking clearly when it included a “Limitation of Deduction for Charitable Contributions of Clothing and Household Items” in Section 317. This measure requires the Secretary of the Treasury to annually create a list that places ‘market values’ on all household goods or items that would potentially be donated to a charitable organization. For a contribution in excess of $250, the donor would be required to secure a receipt from the charity that provided an itemized list “of number of items contributed, an indication of the condition of each item, a description of the type of item contributed, and a copy of the Secretary’s valuation list or an instruction on how to obtain such list.”
If the donated item is not in a “good used condition or better,” the charity would then need to value the contribution at 20 percent of the market value as deemed by the Secretary’s list. Or no value at all if the charity said it was worthless to the organization.
The [url=http://www.cpjustice.org/cprf]Coalition to Preserve Religious Freedom[/url] argues that Section 317 generates serious operations and accounting burdens for rescue missions and small nonprofit organizations. That is a polite response.
For more than two years now, the IRS has been telling Congress — and the Senate Finance Committee in particular — that it doesn’t have the resources to get its charity oversight work done. Now the IRS wants to get into the clothing and household goods valuation business?
There’s a lot of buzz in the blogosphere on Mark Steyn’s “It’s the Demography, Stupid”, which appears in today’s OpinionJournal.com and is originally published in the January 2006 issue of The New Criterion.