Posts tagged with: Nicholas Eberstadt

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…)

Time magazine, 1964: Lyndon B. Johnson as Man of the Year

Time magazine, 1964: Lyndon B. Johnson as Man of the Year

As noted here on the Acton PowerBlog earlier this week, 2014 marks the 50th anniversary of Lyndon B. Johnson’s declaration of war on poverty. Economist Nicholas Eberstadt, in an interview with the American Enterprise Institute, discusses what he calls the “brave new welfare state” we now have due to over-grown public assistance and unintended consequences of government programs.

Asked if we need to spend more money on anti-poverty initiatives, Eberstadt answers:

Let me suggest this is not the right way of framing the question. Quite the contrary: if we presume that government entitlement transfers are the answer to the poverty problem, we are pretty much doomed to failure before we even start.

For a healthy national community of prosperous and independent citizens, we need a nation with strong families, solid education, a serious work ethic, and a good jobs market. Anti-poverty programs can only substitute for these fundamentals—and unfortunately such programs are necessarily rather limited and imperfect substitutes. Of course there is a role for public resources in addressing public need—but such government resources can be targeted more efficiently and intelligently than we are doing today.

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President Lyndon Johnson, Kentucky, 1964

President Lyndon Johnson, Kentucky, 1964

This year marks the 50th anniversary of Lyndon B. Johnson’s “War on Poverty.” Nicholas Eberstadt, an economist at the American Enterprise Institute, has published a monograph entitled, The Great Society: The Triumph and The Tragedy at Fifty. Eberstadt calls Johnson’s vision for the war on poverty “the most ambitious call to date” in American political history. At the time of Johnson’s speech unveiling this “Great Society,” the United States had only one nation-wide social program, Social Security. Johnson wanted more:

The Great Society proposed to reach even further: to bring about wholesale renewal of our cities, beautification of our natural surroundings, vitalization of our educational system. All this, and much more—and the solutions to the many questions encountered in this great endeavor, we were told, would assuredly be found, since this undertaking would “assemble the best thought and the broadest knowledge from all over the world to find those answers for America.

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Blog author: jsunde
Thursday, February 7, 2013
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Nation-of-takersJordan Ballor recently reviewed Nicholas Eberstadt’s A Nation of Takers: America’s Entitlement Epidemic, pointing out in some additional commentary that when “government is contiguous with society…perhaps our conceptions of ‘making’ and ‘taking’ need some re-examination.” Today, he connects some more dots, including a helpful reference to Herman Bavinck.

In my own review of the book at Values & Capitalism, I offer a similar response, focusing particularly on William Galston’s critique of Eberstadt, which is included in the book itself. Whereas Eberstadt can be overly dichotomous in his categorizing, Galston gives way to a blurrying impulse.

Galston’s primary critique of Eberstadt’s maker-taker paradigm is that his emphasis on “dependency” is over-hyped and undeserved. “The moral heart of this fiscal challenge is not dependence,” Galston writes, “but rather a dangerous combination of self-interest, myopia, and denial.” For Galston, dependency is a natural and healthy part of any society. Thus, as long as all the giving and taking balances out, who cares about the particular channels of exchange?

As I summarize in my review:

For Galston, the steep climb toward increasing entitlements is only a dangerous hike if we fail to tax the citizenry accordingly. While Eberstadt emphasizes that there is more to this lopsided situation than mere lopsidedeness, Galston struggles to understand why “dependence” and “entitlement” are features to be avoided in and of themselves, pointing out that planning for long-term security through a giant bureaucracy is no different than putting one’s life savings in a retirement annuity. “I do not see why transferring this case to the public sector makes a moral difference,” he writes.

If this rash conflation of distinct social and institutional orders weren’t enough, Galston goes further, comparing dependence on the state to the safety and security of the family. “We are in no way troubled when children depend on their parents,” Galston points out. “That’s the way it’s supposed to be … As long as we contribute our share, taking is morally unproblematic. We can be a nation of takers, as long as we are a nation of givers as well.”

Father/daughter = Obama/serf?

Potato potahtoe, tomato tomahtoe. (more…)

Working Class Bulwark by Jacob BurckAs I noted last week, my review of Nicholas Eberstadt’s Nation of Takers: America’s Entitlement Epidemic appears in the current issue of The City, a fine publication produced by Houston Baptist University.

Eberstadt provides an important service in bringing home the fiscal realities of the spending crisis facing the American government. But Yuval Levin’s brief reply was, for me, the high point of the book, as it emphasized the indispensability of the so-called “third sector” in social analysis. Eberstadt’s case is helpful for drawing sharp lines, but it’s also worth taking a step back to appreciate the real complexity of the situation.

This is in part why I find any dichotomous breakdown of the situation, whether it pits “makers” against “takers” or the proletariat against the bourgeosie, to be insufficient.

When you have a fuller picture of society than is provided through merely political lenses, it becomes far more difficult to determine who is really a maker and who is really a taker. Or as Joseph Sunde puts it in his review,

The moment we disregard the value in varying social and institutional relationships—beginning with a holistic disregard of the distinct responsibilities of the government vs. the business vs. the school vs. the church vs. the father vs. the daughter vs. the grandmother—is the moment we should expect to see “dependency” become warped toward a one-sided “entitlement archipelago” that serves the self, and little else.

As for the complexity of modern society, Herman Bavinck describes things this way, in a manner that helpfully complicates any simple oppositional narrative:

Current society displays in every respect the greatest inequality and the richest diversity, far greater inequality and diversity than its opponents usually imagine. For they divide society actually into only two classes: the filthy rich and the dirt poor, the superpowerful and the powerless, the abusers and the abused, tyrants and slaves. But the real society, the society that lives and breathes, does not look at all like that; the diversity is far greater, so great that no one can form a complete picture of it. The filthy rich constitute a very small minority, and of these people, membership along a continuum proceeds down to the bottom not by a big leap but rather in terms of a gradual slope in various degrees and in various stages.

For more on these matters, I highlight Bavinck’s insight and the phenomenon of natural diversity, particularly in economic terms, in a recent paper, “The Moral Challenges of Economic Equality and Diversity.”

Based on Nicholas Eberstadt’s book, A Nation of Takers, this Seussian video depicts the dangerous dependency of entitlements and the importance of liberty.

(Via: Values & Capitalism)

Blog author: jcouretas
Wednesday, September 19, 2012
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Writing in National Review Online, Acton Research Director Samuel Gregg weighs in on Mitt Romney’s remarks about the “47 percent”:

Ever since the modern welfare state was founded (by none other than that great “champion” of freedom Otto von Bismarck as he sought, unsuccessfully, to persuade industrial workers to stop voting for the German Social Democrats), Western politicians have discovered that welfare programs and subsidies more generally are a marvelous way of creating constituencies of people who are likely to keep voting for you as long as you keep delivering the goods. In terms of electoral dynamics, it sometimes reduces elections to contests about which party can give you more — at other people’s expense.

For several decades now, it’s been a playbook successfully used by European parties of left and right, most Democrats, and plenty of country-club Republicans to help develop and maintain electoral support. As Tocqueville predicted, “Under this system the citizens quit their state of dependence just long enough to choose their masters and then fall back into it.” In such an atmosphere, politicians who seek to reduce welfare expenditures find themselves at a profound electoral disadvantage — which seems to have been Mr. Romney’s awkwardly phrased point.

Of course, it all ends in insolvency, as we are seeing played out in fiscal disasters such as the city of Los Angeles, the state of California, the city of Philadelphia, the city of Detroit, the city of Chicago, and the state of Illinois.

Read “Mitt de Tocqueville” on NRO by Samuel Gregg.