Posts tagged with: poor

The Acton Institute will be hosting another thought provoking and discussion orientated Acton on Tap on Tuesday, May 17. The event will begin at 6:30pm at the Derby Station (2237 Wealthy St. SE, East Grand Rapids 49506).

Leading the discussion will be Victor Claar, who is a professor of Economics at Henderson State University. The Acton on Tap with Professor Claar is titled “Clarifying the Question of Fair Trade: A Christian Economist’s Perspective.” Claar will bring a unique perspective of the discussion of fair trade by fusing Christian and economic principles:

Fair trade is an enormously popular idea in Christian and secular circles alike. Who, after all, could be against fairness? There are now fair trade certified products as varied as coffee, chocolate, fruit, and, most appropriate for an Acton on Tap audience, beer. Victor V. Claar, associate professor of economics at Henderson State University and co-author of Economics in Christian Perspective, however, raises significant economic and moral questions about both the logic and economic reasoning underlying the fair trade movement. Claar suggests that, for all its good intentions, fair trade may not be of particular service to the poor, especially in the developing world.

Claar has written extensively on fair trade including his monograph, “Fair Trade? Its Prospects as a Poverty Solution.” He wrote a commentary in 2010 discussing the economic obstacles for the world’s poor, and how to bring them out of poverty:

If we want to be effective agents in aiding the poor, we should focus our efforts in directions leading to the enhanced value of an hour of labor. That is, we should help poor countries wisely grow their stocks of human and physical capital, all the while bearing in mind that markets and their prices send the best available signals regarding where our efforts can have the greatest impact. The newfound success of innovative micro lending efforts such as Kiva can help show us ways to effectively invest in the accumulation of physical capital by the global poor. Compassion International is a marvelous organization that works to further the education—the human capital—of poor children worldwide, with a financial accountability record above reproach.

Further, markets work best when economic systems maintain the dignity of human beings. First, human beings grow and flourish—and accumulate human and physical capital—in systems that afford them considerable economic freedom. Economic freedom means that people are able to make personal choices, that their property is protected, and that they may voluntarily buy and sell in markets. Yet, economic freedom requires the protection of private property. When property rights are clearly defined and protected, people will work harder to create and to save. When they are confident that the fruits of their labors cannot be taken away arbitrarily or by force, people everywhere have greater assurance that their labors will lead to better lives for themselves and their families. Today’s rich collection of NGOs that work toward basic human rights play a critical role in this regard.


If we really care about the global poor, we should work to make trade freer for everyone in our global community: a level playing field for all. That means tearing down all of the barriers we use to keep the global poor from working in the very jobs in which they are perfectly positioned to make the greatest lasting gains.

To read the full commentary click here.

Click here for more information on next week’s Acton on Tap.

Now meeting the goal of cutting our dependence depends largely on two things: first, finding and producing more oil at home; second, reducing our overall dependence on oil with cleaner alternative fuels and greater efficiency. This begins by continuing to increase America’s oil supply.

These were the words spoken by President Obama on March 30 in an address he gave at Georgetown University on America’s energy security.  The president also stated in the same speech that “one big area of concern has been the cost and security of our energy,” and “ … our best opportunities to enhance our energy security can be found in our own backyard … ”

Today, Fox News reports that the Environmental Protection Agency (EPA) is forcing the Shell Oil Company to scrap its efforts to drill for oil in the Arctic Ocean,  off the northern coast of Alaska. The move by the EPA is based on the decision that the arctic drilling will be hazardous to those who reside in a small village located 70 miles away from the proposed off-shore drill site.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.

The stakes associated with Shell’s proposed drilling site are  high: an estimated 27 billion barrels of oil. Furthermore, oil production on the North Slope of Alaska is currently so low that any more decrease in production will result in the shutdown of the pipeline.  Is that how we reduce dependence on foreign oil?

The problem is the Obama Administration is not walking in step with the president’s most recent speech. Today they scrapped what may have become an important step to increasing more oil produced in America. President Obama stated in his speech, “…producing more oil in America can help lower oil prices, can help create jobs, and can enhance our energy security…”

In the same speech he said:

Right now the [oil] industry holds tens of millions of acres of leases where they’re not producing a single drop. They’re just sitting on supplies of American energy that are ready to be tapped. That’s why part of our plan is to provide new and better incentives to promote rapid, responsible development of these resources.

Again, it doesn’t look like the Obama Administration is following through with its message.

Among other problems, we can see that this latest action by the Obama Administration will do nothing to slow the rapid rise in the price of gasoline.  In a recent commentary, Ray Nothstine articulates many of the problems Americans are seeing by the rising gas prices:

Many individuals and families are already curtailing discretionary spending to save for gas. In turn, more money and jobs exit the U.S. economy for oil exporting countries.


Some lawmakers from both parties in oil producing states are asking for more domestic drilling, more refineries, and uniform state standards on gasoline mixture requirements. All of these proposals will help lower prices and could add hundreds of thousands of American jobs.

President Obama has responded by saying an increase in domestic drilling “will help some.” He also signaled he may be willing to tap more of the Canadian oil sands, but at the same time, he wants to cut oil imports by one-third.

High prices at the pump can offer a moment to pause too and remember a spiritual truth. The price of gas not only draws attention to the Middle East, but it draws our attention back to the Garden of Eden that tradition places in that oil-rich region.

Oil itself is decayed vegetation and plankton that has seeped into the ground, forming over millions of years. At one time wildlife was abundant and forests were especially lush in the garden. In the creation story we are reminded that after the fall of man, we have to toil for resources (Genesis 3:19).

While we are bound to labor, 17th century Bible commentator and Presbyterian minister Matthew Henry reminds us, “Let not us, by inordinate care and labor, make our punishment heavier than God has made it; but rather study to lighten our burden.”

President Obama’s speech, delivered on March 30, 2011, can be read here.

To read Ray Nothstine’s commentary, “High Gas Prices Devastating to Poor” click here.

Below is the full-length version of “The Rich Young Man: The Law Versus Privilege,” an essay published in the winter 2011 Religion & Liberty. John Kelly’s essay was shortened because of space limitations for the print issue. He was passionate about sharing the full version, which he edited himself for readers of the PowerBlog. Mr. Kelly, a financial advisor, also authored a piece in 2004 for Religion & Liberty titled “The Tithe: Land Rent to God.”

— — — — — —


by John Kelly

As Jesus conducted his public ministry, he drew considerable crowds. Within the throngs were, of course, the peasants of the neighborhood, along with longer-term disciples. There were many who wished to see miracles, many who wished to hear his sayings of peace, love, hope and promise. There were those who wanted reinforcement of the Law and those who wished to see some of the Law abandoned. And within all these groups were many who were troubled by personal doubt.

Jesus spoke with these people, engaging them, answering their questions, asking them questions, all the while proclaiming the authority and the efficacy of the Law. He said, “Do not imagine that I have come to abolish the Law or the Prophets. I have come not to abolish – but to complete them.” He then goes on – he’s trying to make sure his listeners understand: “In truth I tell you, till heaven and earth disappear, not one dot, not one little stroke, is to disappear from the Law until all its purpose is achieved.” (Matthew 5:17-18 – NJB)

Some of Jesus’ most engaging images come from these conversations. Rich and poor, titled and powerless, legalists and apostates, disciples and strangers all had encounters with Jesus that fleshed out for them his view of the Law. However, our lack of knowledge regarding the economic, political and cultural environment in which Jesus lived and preached sometimes hampers our understanding of his message.

One of the more famous of these encounters was with the rich young man. This story is found, in almost identical versions, at Matthew 19:16-22, Mark 10:17-22 and Luke 18:18-23. He approached Jesus and asked what was necessary to be saved. “Good Master, what must I do to inherit eternal life?” Jesus replied that the young man should keep the commandments. “I have kept all these,” stated the rich young man, “What more do I need to do?” Jesus said to him, “If you wish to be perfect, go and sell your possessions and give the money to the poor … then come, follow me.” This was too much for the young man. Scripture says that he “went away sad, for he was a man of great wealth.”

This story seems too hard for most of us. What is fundamentally wrong with being rich? Preachers try to make sense of this passage by assuming that the rich young man was too materialistic, and that the story is a warning to us about that failing. That much may be true, however, that interpretation is about the young man’s reaction, not about Jesus’ words. Jesus instructed him to sell everything he had and give it to the poor. Why? (more…)

International aid has come in for a lot of criticism recently and with the debate on the federal budget just beginning, U.S. funding for aid is on the chopping block.  With a rising deficit, and a struggling economy, many are asking why the United States chooses to continue funding international, or foreign, aid. People of faith are often caught in the middle of the debate on whether international aid should or shouldn’t be cut, along with the role the state should play.

In International Aid and Integral Human Development, Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, addresses the problems with international aid, the role the state should play in funding it, and how international aid should be funded to most effectively benefit those who receive it along with ensuring that the aid is founded on the correct moral principles.

Booth articulates that aid needs to focus on true development, which can be understood as a more well-rounded development.  Aid that fosters true development will encourage moral development, will ensure that those benefiting from the aid will not become slaves to consumer goods, presents an opportunity to own property and save, respects openness to God, the natural world and human rights.

In this new monograph, Booth explains why he thinks that our current structure of international aid is failing.  He offers a timely example:

Estimates of the size of the fall in the number of very poor in China over the last two decades or so range from 50 to 400 million, and other Asian countries such as Vietnam  have also seen astonishing declines in absolute poverty.  Such Asian countries account for the greats share of the reduction in absolute poverty in recent years, yet they are not among the top thirty recipients of U.S. foreign aid between 1996 and 2006.

Later in his monograph, Booth discusses the problems with the current top-down process of international aid.  He conveys how aid currently benefits the governing elite who have used their power to keep their people poor.  Corrupt governments prevent the aid from going to those who need it the most.  Booth also says that, “Aid changes the lines of accountability in government.  Governments become accountable to those from whom they receive aid—either through other government or institutions—and not to their own people.”  From his evaluation, Booth explains history has proven poor countries can develop without aid, and countries that receive aid do not tend to develop.

In a recent article appearing in The Telegraph, Booth further expands upon his ideas laid out in International Aid and Integral Human Development by showing that fair trade is not the answer to solving poverty. Instead, we should be looking towards free trade. In order to truly help a country, he argues, we must make sure they develop a sound economy that does not rely on aid. Booth explains in his column that fair trade is not the answer and is counter productive to its goals:

Fair trade is supposed to bring better working conditions to poor producers, together with higher prices and better social infrastructure. Questions have been asked about whether monitoring in the supply chain is sufficiently robust, and examples of unsatisfactory practice have been found. Furthermore, there are costs for producers. Poor farmers have to pay considerable sums to join up and often have to organise their businesses in particular ways: it is not suitable for all producers, especially in the poorest countries.

Booth later demonstrates how “fair trade is not capable of pulling 400 million people out of absolute poverty as free trade has done.”

In his monograph, Booth goes on to explain basic preconditions that are necessary for countries to develop, and where direct aid is appropriate. He brings in principles from Catholic social teaching, and explains that the common good requires basic conditions for humans to be able to flourish.  In International Aid and Integral Human Development, Booth gives very timely advice, and provides insightful recommendations for international aid while still abiding by the principles founded in Catholic social teaching.

International Aid and Integral Human Development by Philip Booth is available through the Acton Bookshoppe.  Booth’s article in The Telegraph can be found here.

In a follow up to Jordan Ballor’s commentary last week, “Christian Giving Begins with the Local Church,” here is a related excerpt from Darren Dochuk’s From Bible Belt to Sunbelt: Plain-Folk Religion, Grassroots Politics, and the rise of Evangelical Conservatism. I will review the new book published by Norton in the next issue of Religion & Liberty and for the PowerBlog. The excerpt from Dochuk’s book is an excellent reflection of not just how the local church can fulfill their Gospel mandate to help the poor, but also empower and build the community:

The sense of community the Allens found in this congregation was deeper than anything found in Dodson. Theirs was not an uncommon experience. During the last stages of the Depression, southern evangelicals relied heavily on their churches for support of all kind. After moving from Oklahoma to Compton in the 1930s, Melvin Shahan, for instance, saw his parents falling into debt, even with his own weekly ten-dollar paycheck from Goodyear helping out. In response, the Shahans’ church organized a “pounding,” a ritual that saw congregants stock the pantry of a needy and unsuspecting friend with canned goods, preserves, and smoked meat. Melvin would later recall that such acts of kindness were facilitated in part because his neighbors lived so nearby, something he did not experience in Oklahama:

‘So many people there are at Guymon [Oklahoma] came from neighboring farmhouses out around town. When they came into town for the services, it was farther for them to drive than it was here [Compton] where people lived right in the immediate area of their church.’

For the Shahan family, the intimacy of the country church often idealized by those from the South was a reality not enjoyed until after arriving in Southern California. The same applied for the Allens. When wartime conditions sent fathers to the front and mothers to work, the congregants of Southern Missionary leaned especially hard on each other. Since women constituted a majority of church membership during these years, the onus for community fell on them. Churchwomen not only organized drives to increase Sunday attendance but also made sure that neighborhood families were provide with child care, transportation, and, when needed, financial support. For Marie Allen, whose family livelihood depended on her full-time work at a local defense plant, such neighborly assistance proved financially critical. More importantly, it strengthened the bonds of Christian sisterhood and her ties to the church family. (p.21)

Throughout Caritas in Veritate there is a strong message to help the poor.  This is an age old belief held by many.  It can be found throughout the Bible and is preached by Christians and members of differing faiths.

What was interesting and refreshing to hear in this new encyclical was how Pope Benedict XVI renewed this call for helping the poor.  What has become the common theme presently is to provide aid to poor countries that gets funneled directly to the government.  It is then left to the decisions of the governments of the poor countries to determine how to spend the aid.  Unfortunately, too many governments of poor countries are corrupt and tyrannical, and they use the aid in inappropriate ways that does not help provide aid to the poor of their country.

Pope Benedict seemed to not only understand but acknowledge this in Caritas in Veritate by recommending that the people receiving the aid should have direct influence on how the aid is used.  Those receiving the aid know better than their government where the aid is most needed and how to put it to the greatest use possible:

Social concern must never be an abstract attitude. Development programmes, if they are to be adapted to individual situations, need to be flexible; and the people who benefit from them ought to be directly involved in their planning and implementation. The criteria to be applied should aspire towards incremental development in a context of solidarity — with careful monitoring of results — inasmuch as there are no universally valid solutions. Much depends on the way programmes are managed in practice.

Furthermore, Pope Benedict carefully iterates in section 58 that the aid should be used to improve the lives and conditions of those that receive it.  The aid should not come with strings attached that keep those who receive it locked into a state of dependence or exploitation with the donors.  Instead the aid should liberate people from the state of poverty that they are currently in and provide them with opportunities to work and provide for themselves.

Too provide such aid Pope Benedict calls for us and for countries to look within and cut waste.  Once that waste is cut, people and countries should be able provide more aid to those who need it.  As we’re reminded in the Acton Institute video shown above, the solutions to poverty start with us.

A 2001 radio interview of Barack Obama surfaced yesterday in which he said that “one of the tragedies of the Civil Rights movement,” and one of the limitations of the Warren Supreme Court, was that although they won such formal rights as the right to vote and “sit at the lunch counter and order,” they “never ventured into the issues of redistribution of wealth.”

A caller to the station, WBEZ Chicago 91.5 FM, then asks if the courts are “the appropriate place for reparative economic work to take place.” Obama responds that “you can craft theoretical justifications for it legally,” but a more effective approach is “the political and community organizing and activities on the ground that are able to put together the actual coalitions of power through which you bring about redistributed change.”

Does the radio interview demonstrate that Obama harbors radical views? Does it suggest that the black liberation theology of his former pastor, Jeremiah Wright, plays a bigger role in Obama’s thinking than he claims? Should black Americans get substantial monetary payments from other Americans as repayment for slavery and racism? If these are the primary questions swirling around this radio interview in the coming days, an important question may go begging: Would reparations specifically, and wealth redistribution generally, actually help poor black Americans?

In a new Acton video short, “How not to Help the Poor,” experts on poverty fighting argue that government wealth redistribution has devastated poor communities.

One of the experts interviewed is Robert Woodson, a former Civil Rights activist and president of the Center for Neighborhood Enterprise. “We in Washington today lead the nation in 21 separate categories of poverty expenditures,” he notes. “Explain to me why a child born in Washington D.C. has a life expectancy that’s lower than a child born anywhere in the western hemisphere second only to Haiti. We have the highest per capita expenditure on education and we’re 48th in outcomes for kids.”

Woodson does not find the answer in the history of blacks under slavery but in U.S. social policy after 1960. “The black marriage rate in 1930 to 1940 was higher than in the white community. Eighty-two percent of all black families had a man and a woman raising children. But what happened in 1960 when government intervened with the poverty programs, a major paradigm shift occurred and contributed to the decimation of the family.”

Why do such well-intended programs have such devastating consequences? And what has proven to help lift up the poor? The video short also explores these questions.

An early transcript of the Obama radio interview is available here.