Posts tagged with: poverty

In Austin, Texas, the organization Mobile Loaves & Fishes has started a new program for the homeless: Community First! a village of tiny houses and other small domiciles. Lee Morgan of the New York Daily News reported recently,

A life of relative luxury awaits homeless people in Texas with the construction of a new gated neighborhood featuring a garden, drive-in theater and air stream motel.

Hundreds of down-and-outs in east Austin will have the chance to get back on their feet by moving into the pioneering Community First Village.

Residents will have to work and pay a minimal rent to be able to stay at the compound, which will be nestled in 27 acres of land east of U.S. Highway 183.

Mobile Loaves & Fishes is explicitly motivated by Christian principles and has been working with the homeless in Austin since the mid-1990s. The webpage for Community First! even quotes Genesis 2:15: “The Lord God took the man and settled him in the Garden of Eden to cultivate it and take care of it.” Their work in the past has involved not only feeding the homeless with their food trucks but helping them find employment, obtain upward mobility, and shelter. (more…)

Acton’s busy week of media appearances continued last night with Acton President Rev. Robert A. Sirico joining guest host Arthur C. Brooks – president of the American Enterprise Institute – on The Hugh Hewitt Show to discuss Pope Francis, Evangelii Gaudium, and the compatibility of Catholic social teaching with free market capitalism. We’ve embedded the interview for you below, and added the video of Arthur Brooks’ 2012 Acton University plenary address after the jump.

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Acton Institute President Rev. Robert A. Sirico stopped by the studios of TheStreet.com today and spoke with host Joe Deaux about how Pope Francis differs from his predecessors in his approach to economic issues.

The pope is emphasizing “human solidarity,” Sirico said. “He quoted Benedict by saying that globalization has brought us to be close, to be neighbors, but not to be brothers.” Achieving a sense of fraternity is the goal.

We’ve embedded the video for you below.

Last night, Acton Institute President Rev. Robert A. Sirico joined host Lawrence Kudlow and author Naomi Schaefer Riley on The Kudlow Report to discuss the selection of Pope Francis as Time Magazine’s Person of the Year, the effect he is having on the Catholic Church worldwide, and his views on economics and free markets. We’ve embedded the video of the interview from CNBC below.

EgyptCairo is an amazing place. I lived and went to school in this city of over 9 million in the early 1990s. On top of the recent governmental conflict and unrest, it’s a city that has for a long time been devastated by pollution and environmental problems. The smog alone is a constant irritant to the senses.

During my time in Cairo, one of the most dramatic and life-changing events was visiting “Garbage City.” This neighborhood is where many of the Zabaleen people live and they have been sorting the trash in Cairo and using their entrepreneurial skills for decades. To see so many people living in that kind of poverty put my own life and blessings into perspective. When I heard that they were a Christian community, at that point their plight and just the blessing of being an American became very clear. I’ve talked about the Zabaleen people before on the PowerBlog. Because of their Christian faith, they have also been maligned and marginalized in Egypt. They were even forced to destroy their vast drove of pigs (300,000) because of a swine flu outbreak, even though the pigs had no role in the outbreak. The pigs were instrumental in the garbage recycling process for Cairo. Their absence has been detrimental to the excessive amounts of rotting food in the streets.

A few weeks ago, The Guardian ran an excellent story on what the Zabaleen people mean for Cairo and how the new government is aiming to finally give them official status for Cairo’s cleanup. It explains why they are so essential to the success of Cairo. Below is an excerpt from the piece:

“It’s an aberration. Over the years the Zabaleen have created an efficient ecosystem that is both viable and profitable, with a recycling capacity of almost 100 percent. It provides work for women and young people who are the first to suffer from Egypt’s unemployment. We need to use this local organisation,” said Leila Iskandar, who became minister of the environment after the fall of Morsi in July. She has worked for years with organisations in the working-class neighbourhood of Manchiet Nasser, where about 65,000 Zabaleen live. (more…)

caremergencyYesterday I began a series of posts which attempts to explain why the working poor tend to make terrible financial decisions and how they think about money differently than other economic classes. In my initial post I wrote,

Imagine that instead of having to deal with consumption smoothing decisions, at most, several times a year, you had to deal with them several times a month, or even several times a week. Now also imagine there is no workable solution that will actually smooth the short-term consumption problem and the best that you can hoped for is a temporary fix that delays having to deal with the issue.
That is what it’s like to be the working poor.

Several people have asked me to explain more what I meant, so before moving on I wanted to provide a more in depth example.

Let’s again begin by looking at the decision-making process of the middle-class. Imagine that you want to buy a home. Your household income is $51,404 a year (the median household income in the U.S.) and the house you’re interested in is on the market for $152,000 (the avg. home price in the U.S.). At what point do you buy the house?

There are several ways the average American may answer, but the one response you will almost never hear is, “You should buy the house only after you’ve saved the $152,000 needed to pay for it.”

While most people would agree that it would be prudent to apply a down payment, the idea that you’d pay the entire amount at once – even if you had $152,000 in cash – would strike most people as peculiar if not absurd. Instead, we borrow money for a mortgage that will allow us to pay a set amount each month for 15 to 30 years. Because we are willing to spread our payments out into the future we will pay a lot more than the $152,000 (at 5% for 30 years, the total would be $293,748.79). But we consider that a reasonable accommodation for getting what we want right now.

That is an example of how most of us take the concept of consumption smoothing for granted.
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workingpoorAfter reading a comment thread in which her online friends were complaining about poor people’s self-defeating behavior, Linda Walther Tirado wrote an articled titled “Why I Make Terrible Decisions, or, Poverty Thoughts,” which chronicled her struggles with near abject poverty.

I think that we look at the academic problems of poverty and have no idea of the why. We know the what and the how, and we can see systemic problems, but it’s rare to have a poor person actually explain it on their own behalf. So this is me doing that, sort of.

Tirado’s article went viral. A literary agent contacted her, and after a few readers emailed offers to contribute to a book project, Tirado started a GoFundMe page. Her initial goal was $10,500; she raised more than $60,000.

But there was a problem with her story: it wasn’t true.

As Angelica Leicht of the Houston Press discovered, Tirado doesn’t fit the mold of the working poor: She went to a fancy boarding school, speaks both German and Dutch, works as a political consultant, and is married to a Marine. Tirado eventually clarified that her piece was “taken out of context, that I never meant to say that all of these things were happening to me right now, or that I was still quite so abject. I am not.”

While the article seemed to confirm what many people already believed, for those who are actually poor – or at least once were — the article likely didn’t resonate. It doesn’t even live up to the title’s claim of an explanation for why those in poverty “make terrible decisions.”

The fact is that the working poor do tend to make terrible financial decisions — and not just because they lack resources. The working poor think about money differently than other economic classes. I’d like to take a crack at explaining why that’s the case.
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Last night on CNBC’s The Kudlow Report, PovertyCure director and Acton Research Fellow Michael Matheson Miller joined host Lawrence Kudlow and Rusty Reno, Editor of First Things magazine, to discuss the position of the Roman Catholic Church on global capitalism in light of Pope Francis’ Apostolic Exhortation ‘Evangelii Gaudium.’ The video is embedded below.

pope with peterPope Francis has released his first apostolic exhortation, Evangelii Gaudium (The Joy of the Gospel). An apostolic exhortation

…is published to encourage the faithful to live in a particular manner or to do something, e.g., post synodal documents offered to the church in summary of a previous synod and hoping the faithful will do something helpful for the life of the church…

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A recent piece in The Washington Post by Lori Montgomery reports that conservative U.S. Congressman Paul Ryan has been working on solutions to poverty with Robert Woodson, solutions rooted in face-to-face compassion, spiritual transformation and neighborhood enterprise. The Post seems to want to praise Ryan (R. Wis.) for his interest in the poor, but to do so it first has to frame that interest as something foreign to conservatism:

Paul Ryan is ready to move beyond last year’s failed presidential campaign and the budget committee chairmanship that has defined him to embark on an ambitious new project: Steering Republicans away from the angry, nativist inclinations of the tea party movement and toward the more inclusive vision of his mentor, the late Jack Kemp.

The Post’s tendentious description of the tea party movement is contradicted by data laid out in Arthur Brooks’ Gross National Happiness, which shows that conservatives, on average, give a significantly higher percentage of their income to charitable causes than liberals do.

In its defense, the article does have a poster child for its misleading stereotype of conservatism — Paul Ryan’s 2012 presidential election running mate Mitt Romney, the multimillionaire caught on film writing off the bottom 47% of American earners as unreachable freeloaders who don’t pay any taxes. But what Romney has to do with your rank and file tea party conservative is never made clear in the article.
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