Posts tagged with: wealth redistribution

The Good Rich and What They Cost Us, Robert Dalzell Jr.In a new book, The Good Rich and What They Cost Us, Robert Dalzell Jr. aims to address “a great paradox at the core of the American Dream: a passionate belief in the principles of democracy combined with an equally passionate celebration of wealth.”

In a review for the Wall Street Journal, Amity Shlaes notes that although the book provides an in-depth look at the history of American philanthropy, the author’s own personal prescriptions lend too high a trust to government redistribution:

“The Good Rich” starts out like a tour through a portrait gallery, describing rather than judging. For much of his narrative, Mr. Dalzell refrains from giving his own opinion explicitly and reports merely that the rich have often blamed themselves for their lapses or oversize good fortune, or that their peers did.

Toward the book’s end, though, Mr. Dalzell drops his own screen, putting forward a familiar argument: that democracy suffers unless wealth and philanthropy are redistributed to reduce economic inequality. Even the “good rich” cost us: They don’t give wisely, Mr. Dalzell contends, spending too much on “elite institutions like Harvard, Yale, MIT and Princeton, which seems unlikely to reduce the income gap by much.” …For the sake of the public good, then, the rich must fashion better charity projects while handing over more of their money to the government.

Such philanthropic efforts deserve to be thoroughly examined. Likewise, from the poorest of us to the wealthiest, we should be energetic in examining our own activities, using discernment and wisdom in how we use our resources. But as Shlaes indicates, if it’s difficult for we individuals to wrestle with these deep questions about stewardship — particularly when we’re calling on the Divine for wisdom, as many philanthropists under Dalzell’s microscope claim to have done — how much more difficult will it be for a bloated government machine to utilize proper discernment? (more…)

One line from last night’s debate leapt out at me. It wasn’t a stumble amidst the cut and thrust of open debate. It was during President Obama’s closing statement—400 words that I’m guessing he and his staff crafted with painstaking care.

About half way through his summation, the president gave his vision of government in a nutshell. He said that “everything that I’ve tried to do, and everything that I’m now proposing for the next four years,” was “designed to make sure that the American people, their genius, their grit, their determination, is – is channeled.”

In that one word, channeled, President Obama distilled the problem. It isn’t his job to channel America’s genius, grit and determination anymore than it’s a traffic cop’s job to tell you where to go when you hop in your car. The police officer has an important role. Government has an important role. But it isn’t to channel.

That isn’t how you free a country for greatness; it’s how you suffocate it, by having politicians and bureaucrats endlessly picking winners and losers, inserting themselves into the middle of every market bigger than a lemonade stand. (Oh wait, they got to the lemonade stand, too.)

President Obama quickly went on to explain what he meant by the federal government channeling, but the gloss was cold comfort. The good parts of the gloss—“everybody’s getting a fair shot,” “everybody’s playing by the same rules”—had nothing to do with channeling. And the part that was all about channeling—the government making sure that “everybody’s getting a fair share, everybody’s doing a fair share”—was just same failed, slightly creepy vision of an all-embracing nanny state that has Europe on the brink.

The Civil Society Trust reviews Jay Richards’ book “Money, Greed and God” (buy it here) and reflects on government compassion.

We can read in Genesis that man was created by God, in His own image. Richards expands on that in a way that struck me as particularly novel. If God is the Creator with a capital ‘C’, then being created in His image, mankind has been endowed with the ability to create as well — we are creators with a little ‘c’. And mankind’s progress through history, with all of our worldly creations, should demonstrate that. But what have we “created” via our government, in the name of compassion? Is it working?

At the end of the day, most of the programs and policies of government initiated in the name of helping people amount to rounding up resources from the private sector and redistributing them to others. And there are plenty of people who argue we need to do more of that. But if these programs and policies are in fact not working, or perhaps even making things worse, and yet we continue to do them, I would suggest that we are ignoring the original goal of helping others and instead focusing on how these programs make us feel instead.

My guess is that it is a very rare sermon that gets into these areas. That is a shame, because it flies in the face of what believers in God are taught. As Saint James wrote (James 2:14-26 NRSV), “faith without works is dead.” But is faith though repeatedly failing works alive?

Read The Costs of False Compassion on the Civil Society Trust.

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.