A study out of Harvard University focusing on tax credits and other tax expenditures has caused 24/7 Wall St. to declare that America has 10 cities where the poor just can’t get rich. Among the reasons that economic upward mobility is so minimal in these cities: horrible public education (leading to high dropout rates) and being raised in single-mother households. What these cities share is an economic segregation: two distinct classes of people, with virtually nothing in common.
However, it seems not only bold but disingenuous to say that there “are cities where the poor cannot get rich.” Is it tough? Yes. Is it impossible? Of course not. In A Field Guide to the Hero’s Journey, entrepreneur Jeff Sandefer tells how he made his first job work for him. It wasn’t glamorous. (more…)
“Who could be against fairness?” Victor Claar asked this question at Acton University last month. He and Travis Hester gave a talk titled, “Fair Trade Versus Free Trade” with their focus on the coffee industry. They explained what the fair trade movement is, evaluated its effectiveness, and explored ways for caring people to help coffee growers overcome poverty.
Before looking at the fair trade movement, it is important to note that coffee is what economists call an inelastic good. That means that if the price of coffee increases, the quantity demanded will not decrease by a lot. Claar puts it simply: “If coffee prices rise, coffee drinkers will probably buy less coffee, but probably not much less.” Spikes occur frequently in coffee prices due to bad weather and the delicacy of Arabica coffee plants. The price of coffee is volatile and is, according to fair trade advocates, too low. (more…)
I recently wrote on the implications of “pathological altruism,” a term coined by Oakland University’s Barbara Oakley to categorize altruism in which “attempts to promote the welfare of others instead result in unanticipated harm.”
Oakley’s paradigm depends on whether such harm can be “reasonably anticipated,” and as Greer’s story indicates, far too often the church isn’t anticipating much at all. Ship the stuff, check the box, and sing our merry songs. (more…)
Over at Rough Trade, the always intriguing James Poulos celebrates the increased attention now being given to the “relationship between economic and religious life,” pointing to the Acton Institute’s very own Samuel Gregg to kick things off.
Yet he remains unsatisfied, fearful of a return to what he views to be unhelpful “conceptual frameworks and cultural antagonisms” of the past, and urging us to push toward “a new mode of analysis that breaks away from the old, exhausting debates.” For Poulos, this means embracing an “economics of grace,” an interrelated component of something he has called “radicaltarianism” in the past (see more on this here and here).
Poulos observes the typical divides among Christians as follows:
Christians who accept these teachings [about the fall of man and grace] tend to split into two economic camps: those who lean toward an uncritical embrace of free-market capitalism, and those who tilt toward a far more skeptical, suspicious attitude. For the first group, the social upshot of Christianity is an institutional framework that supports flourishing with minimal reliance on the state. Christianity supplies a good foundation for market activity. For the second, the most durable and authentic institutional frameworks supplied by Christianity raise damning questions about the sustainability of neoliberalism — the secular “democratic faith” that gives market capitalism its modern philosophical foundations. For both groups, the key is that, ultimately, religion drives sustainable economic life. The difference is that the first group typically understands religion in a Protestant way, as a driver of explosive, and morally legitimate, economic growth, while the second takes a more Catholic view, doubtful of the moral purity of explosive growth, and focused much less on growing capital than other sorts of things, like families.
Describing the state of the debate more broadly, Poulos argues that our political factions have also proven unhelpful, using terms like “economic growth” based on limited materialistic assumptions. (more…)
In 1936, near the end of the Great Depression, Children International launched one of the earliest child sponsorship charities. Today, child sponsorship is one of the most significant forms of foreign aid. It’s estimated that there are over 8 million internationally sponsored children in the world. With the average monthly sponsorship level set at about $30 (not including other gifts sent to sponsored children), the flow of resources from wealthy countries to poor countries from international child sponsorships is about $3.2 billion per year.
Despite the substantial amounts of money being funneled through these charities, few empirical studies have been conducted to gauge their effectiveness. But a new peer-reviewed, independent study on the viability of international child sponsorship led by Bruce Wydick, professor of economics and international studies at the University of San Francisco, reveals “large and statistically significant impacts on life outcomes for children enrolled in Compassion International’s Christian child sponsorship program.”
Some of the key findings from the study include:
Michael Matheson Miller, Acton’s Director of Media and PovertyCure, joined host Hugh Hewitt on the Hugh Hewitt Show this afternoon to discuss the election of Pope Francis, and how his experiences in Argentina may influence his actions as Pope in addressing issues of poverty. He notes that Pope Francis is not a proponent of Liberation Theology, and quotes the new Pope’s earlier writings:
We cannot truly respond to the challenge of eradicating exclusion and poverty if the poor continue to be objects, as targets of actions by the state and other organizations in a paternalistic and aid based sense, instead of subjects in an environment where the state and society create social conditions that promote and safeguard their rights and allow them to build their own destiny.
Listen to the full interview here:
I’m just back from the republic of Texas and Acton’s Toward a Free and Virtuous Society conference. One of my fellow lecturers was Southwestern Baptist Theological Seminary professor Ben Phillips. In between sessions, he showed me a recent Houston television news piece on SWBTS’s Darrington prison extension, where Phillips and other Southwestern profs are bringing prisoners to Christ, with a plan to send graduates of the program to other Texas prisons. Many of these men may grow old and die in prison, but they won’t die without hope, and they won’t die without becoming a blessing to their fellow prisoners at Darrington and other Texas prisons.
The cover story of a recent Religion & Liberty tells about a similar program on a larger scale, at Angola Prison in Louisiana, where many men on death row, with no hope of parole, have been transformed by the power of the Gospel.
It’s hard to imagine an example more dramatic than Angola prison, but if there is one, it’s the work of Rwandan Bishop John Rucyahana, Prison Fellowship, and others to bring the grace of Christ to the imprisoned genocidiers of Rwanda. Through this work, many of the men involved in the 1994 genocide that took almost a million Rwandan lives have repented of their participation in the genocide, sought and obtained forgiveness from the families of their victims (itself a miracle), and been reintegrated into society after serving their prison sentences. (more…)
When Adam Smith wrote his famous “Inquiry into the Nature and Causes of the Wealth of Nations,” he helped shift the terms of the discussion. Centuries earlier, work focused on different aspects of poverty. Jurists and city authorities analyzed whether the poor should be allowed to beg freely and move to other cities. Charities were set up to help the destitute. The great Florentine Saint, Antonino Pierozzi (1389-1459), even set up a charity to serve the “shameful poor” (poveri vergognosi). These were formerly rich people who were impoverished by government attacks and injustices, but who would prefer to die rather than beg. It is easy to be poor; it is harder to understand how wealth is created. Smith changed the approach.
PovertyCure tries to create a similar shift among those who work in this field. It seeks to move efforts from aid to enterprise and from paternalism to partnerships. We often ask how to alleviate poverty. But the real question is: How do people in the developing world create prosperity for their families and communities?
Read “From Aid to Enterprise: Intelligent Poverty Cures” by Alex Chafuen at The Blaze.