Posts tagged with: poverty

Blog author: jcarter
posted by on Monday, August 25, 2014

union-jack-flag-great-britain-x-nature-with-uk-for-2685143At the height of power, circa 1922, the British Empire was the largest empire in history, covering one-fifth of the world’s population and almost a quarter of the earth’s total land area. Yet almost one hundred years later, Great Britain is not so great, having lost much of its previous economic and political dominance. In fact, if Great Britain were to join the United States, it’d be poorer than any of the other 50 states — including our poorest state, Mississippi.

Fraser Nelson discovered that fact by using a “fairly straightforward calculation” (see the end of this article for an explanation, and what Nelson missed). The result, as Nelson explains, is that all but one income group in America is better off than the same group in Britain:
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Blog author: jcarter
posted by on Friday, August 22, 2014

police-povertyI’m about to make a prediction that is incontrovertible — a claim that cannot be controverted because (a) I am absolutely right in my prediction, and (b) because I will be long dead before my rightness can be proven.

Here’s what I predict: By the year 2114 social scientists will have established with 90 percent confidence that the “root cause” of the majority of the social maladies we experienced in the early twenty-first century (i.e., right now) were attributable to family structure, family dynamics, or family culture.

A trend in that direction appears to already be underway. Consider, for example, research recently published in the British Journal of Psychiatry that studied more than half a million children born in Sweden between 1989 and 1993. The results of the study showed that children of parents in the lowest income quintile experienced an increased risk of being convicted of violent criminality and substance abuse compared with peers in the highest quintile. No real surprise there. What was unexpected was the conclusion: “There were no associations between childhood family income and subsequent violent criminality and substance misuse once we had adjusted for unobserved familial risk factors.”
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Francis (1)“If there is one thing that religious leaders around the world seem to agree on today,” says Acton research associate Dylan Pahman, “it is the evils of income inequality stemming from a globalized economy.” But as Pahman points out, there is a connection between inequality and poverty alleviation that affirms the moral merits of economic liberty:

It would seem the consensus is that economic inequalities have increased worldwide, and this is a clear moral evil. But when we examine the numbers, a somewhat different picture emerges. Even as inequality has increased, extreme poverty has simultaneously decreased—a clear moral good. Considered in this light, and with the help of Nassim Taleb and (in Part Two of this post) Friedrich Hayek, I will examine the connection between inequality and poverty alleviation and argue that the data affirm, rather than refute, the moral merits of economic liberty.

It stands to reason that if religious leaders are so willing to condemn global capitalism for its apparent evils, they ought to be even more eager to praise its actual goods. I will recommend a different moral metric, drawn from St. John Cassian and St. John Chrysostom, that would support people of faith in being attentive to the plight of the poor while prudently engaging the economic realities at hand.

Read more . . .

Participant in the Doe Fund, New York City

Participant in the Doe Fund, New York City

No one wants to be poor. No one enjoys figuring out how to stretch meals to last just three more days. No parent wants to tell their child they can’t play a sport or get a new backpack because there is simply no money. No one wants to be evicted. Poverty in America is a reality; so what are we going to do about it?

The American Enterprise Institute has a few ideas. They’ve taken a look at where we are 50 years after the War on Poverty was declared. The conclusion is that we’ve not been successful in that war. Poverty in America—and What to Do About It is a compilation of essays on the topic.

Aparna Mathur says the talk of late about “income inequality” is misleading. We must address poverty, not differences in individual income.

We are now in the fifth year of an economic recovery that does not seem like a recovery to most people in the labor market. There are more than 10 million unemployed workers, of which nearly 4 million have been jobless for longer than 27 weeks. In addition, there are another 10 million who are either in involuntary part-time jobs, or are too discouraged to look for work. Therefore, I would argue that the focus on income inequality is somewhat misplaced. This is essentially a problem of poverty.

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Blog author: jcarter
posted by on Wednesday, July 30, 2014

Christian churches in the West have been focused on redistribution of income rather than the creation of wealth, says Brian Griffiths in this week’s Acton Commentary.

Through much of the post-war period in the West, the formation of economic policy was dominated by Keynesian activism on the part of governments seeking an increasing role in providing public services, reducing material poverty, and reshaping income redistribution.

In the United States, President John F. Kennedy launched the New Frontier program and his successor, President Lyndon Johnson, soon after embarked on what came to be called the Great Society. In both cases, emphasis was placed on increasing the role of the state in order to solve problems of poverty and destitution. In intellectual terms, the economist John Kenneth Galbraith made the case for trade unions and government becoming “countervailing powers” in capitalist economies in order to check the power of large corporations. In Britain, Harold Wilson nationalized various industries, developed a national plan, a comprehensive prices and incomes policy, and extended the scope of the welfare state. Across the Channel and Rhine, the Social Democrat Willy Brandt was a major influence in extending the role of government in social policy throughout West Germany.

The full text of the essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

Blog author: mvandermaas
posted by on Tuesday, July 29, 2014
Crucible of Poverty

Stuart Ray, Donn Weinberg, and Anielka Munkel discuss solutions to poverty – July 17, 2014

On July 17th, the Acton Institute hosted a panel discussion titled “The Crucible of Poverty: Perspectives from the Trenches.” The discussion examined the issue of poverty, with a focus on what strategies for poverty alleviation have worked, what strategies have failed, and how we can better help the most vulnerable among us.

The panelists for the discussion were Mr. Stuart Ray, Executive Director of Guiding light Mission in Grand Rapids, Michigan; Mr. Donn Weinberg, Executive Vice President of The Harry and Jeanette Wienberg Foundation; and Ms. Anielka Munkel, Project Manager here at the Acton Institute, and a co-producer of the PovertyCure DVD series.

The discussion ranged from analysis of the roots of poverty in west Michigan to questions of federal policy relating to poverty, and how foundations can ensure that grant recipients are actually pursuing the goals supported by foundations.

The full discussion is available via the audio player below.

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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Natural Family Planning educatiaon in the Saint Anthony Clinic in Dili, East Timor

Natural Family Planning educatiaon in the Saint Anthony Clinic in Dili, East Timor

Once, in a Bible study I was involved with, we women got chatting, and one lady (as we were discussing poverty in Haiti) said, “If we could just get those women to stop having so many kids…” [drawn-out sigh.] My reply was that we didn’t need to stop women from having babies; we needed to help educate women.

For years, organizations like the World Health Organization have tried to distribute artificial birth control in the developing world. The thinking here is that if families have fewer children, there will be more opportunities for the health and welfare of the children who are born. Of course, this mentality fails on several counts. First, it overlooks religious and cultural values in many places around the world where large families are desired, and where artificial birth control is considered sinful. Second, even the World Health Organization notes that many forms of artificial birth control are known carcinogens. Finally, in many developing countries, the simplest of health care is out-of-reach both financially and geographically. That is, a family that cannot afford netting treated to ward off mosquitoes carrying malaria or who has to walk days to reach a clinic are certainly not going to be able to utilize artificial birth control with any regularity – which means it won’t work. (more…)

Recently, the World Bank agreed to partner with Nicaragua to give the country 69 million U.S. dollars in aid. This poses the immediate question of whether or not this aid will be effective in producing its stated goal of decreasing poverty and increasing economic productivity. Should the World Bank continue to give money to the government of Nicaragua, which – especially of late – has been showing a decrease in political stability and democratic processes? History shows that international loans provide little help when countries suffer from decreases in stability and equality within their system.

The World Bank justifies the money that Nicaragua receives: “Nicaragua has achieved a real Gross Domestic Product (GDP) growth of 5 percent in 2012 and 4.6 percent in 2013, returning to pre-crisis growth levels.” GDP, however, does not paint a complete picture of the country’s performance. Most of the wealth within Nicaragua is located among the upper class, making the GDP less accurate for the country as a whole. Gross Domestic Product in purchasing power parity (PPP) in 2012 was estimated at $20.04 billion USD, and GDP per capita in PPP at $3,300 USD, making Nicaragua the second poorest country in the Western Hemisphere.
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Blog author: sstanley
posted by on Wednesday, July 16, 2014

A few months ago, the Fairtrade movement came under fire after a British study stated that fairtrade certified farmers were actually making less  and were working in worse conditions than non-certified farmers. Of course, this was not the first time the fairtrade movement was accused of failing to fulfill its goals. However, Vega, a new company based in León, Nicaragua has decided to employ a new method of business that focuses much more on the coffee farmers.  They see the problem with fairtrade products in a bloated  supply chain; this is the normal supply chain for a cup of fairtrade coffee:

Supply Chain

Forbes contributor, Anne field, shows the disparity between the amount Americans pay for a cup of coffee and what the farmers receive:

Each small scale farmer produces about 500 pounds of Fair Trade organic coffee  a year and gets around $1.30 a pound, or $700 a year.  The upshot: Farmers of specialty grade coffee beans earn $1 a pound for a product costing U .S. consumers maybe $20. (more…)