Showing posts with label poverty. Show all posts
Showing posts with label poverty. Show all posts

Monday, April 29, 2019

Real Caring Requires Thinking More than Feeling


Caring looks different sometimes from what we immediately think it should look like. That will be true when we look at many issues, for example:

·         Economic inequity
·         Borders
·         Gender dysphoria
·         Healthcare
·         Affirmative action
There’s a way of looking at these and other issues that is the quick gut version of caring. And then there’s a way of looking at the same things, with a little further thinking, to see whether the quick gut version will really help. Because, if it doesn’t, then real caring requires something else.

This concept came up in a couple of things I was listening to this weekend—Jordan Peterson debates, again. In a debate with Slavoj Zizek, titled “Happiness: Capitalism vs. Communism," Jordan Peterson (on the side of capitalism) says this:
Jordan Peterson in "Happiness" debate
screenshot from here


If you’re actually concerned that the poorest people in the world rise above their starvation levels, then all the evidence suggests that the best way to do that is to implement something approximating the free market economy.
In other words, all that stuff about fairness, or getting rid of inequality, because you care about the poor—that doesn’t work. He provides data:

The one thing you can say about capitalism is that, although it produces inequality, which it absolutely does, it also produces wealth—and all the other systems don’t. They just produce inequality.
So, here’s a few free market stats: From 1800 to 2017 income growth, adjusted for inflation, grew by 40 times for production workers and 16 times for unskilled labor, while GDP rose by a factor of about .5 from 1 AD to 1800. So, from 1 AD to 1800 AD it was like nothing. Flat. And then, all of a sudden, in the last 217 years there’s been this unbelievably upward movement of wealth.
And it doesn’t only characterize the tiny percentage of people at the top, who, admittedly, do have most of the wealth…. [The absolutely poor at the bottom are] getting richer faster now than they ever have in the history of the world.
And we’re eradicating poverty in countries that have adopted moderate free market policies at a rate that’s unparalleled. So, here’s an example. One of the UN millennial goals was to reduce the absolute rate of poverty in the world by 50% between 2000 and 2015. And they defined that as $1.90 a day. Pretty low, you know. But you have to start somewhere. We hit that at 2012, three years ahead of schedule.
And you might be cynical about that and say, well, it’s kind of an arbitrary number. But the curves are exactly the same at $3.80 cents a day and $7.60 a day. Not as many people have hit that, but the rate of increase towards that is the same. The bloody UN thinks that we’ll be out of poverty, defined by $1.90 a day, by the year 2030. It’s unparalleled.
Do you really care about getting the poor out of poverty? Because we know how to do that: free markets.

In a different debate—this one was a Jordan Peterson/Sam Harris debate in Dublin, moderated by Douglas Murray, which I reviewed via a response by commentator Chris Kohls on his Mr. Reagan podcast. The debate was on the efficacy (or harm) of religion, but Harris failed to engage on that. So there was a diversion to other themes, which includes our main theme for today:

There’s just as much error on the side of empathy as there is on the side of too little empathy. And that’s a hard thing for everyone to learn, because empathy feels so good. Like, if you feel mercy towards a suffering child, that is kind of an indication that you’re an ethical person. But that’s not the basis for complex and sophisticated foreign policy.
from left, Jordan Peterson, Douglas Murray, Sam Harris
in the Dublin debate, as reviewed by Mr. Reagan podcast
screenshot from here

Jordan Peterson was talking about borders, which I’ve heard him talk about elsewhere. But this is an excellent way of thinking about them, so I’ll share this version:

Borders exclude and privilege those within the borders. Yes. OK, now let’s take that seriously. Now, part of the seriousness is, poor innocent children are hurt at borders. That happens all the time. OK, the question is, are you willing to give up the borders?
Now let’s think about what borders are. Your skin is a border. And you’re prejudiced in protection of your skin. For example, you won’t just sleep with anyone; you reserve the right to keep that border intact. Right? And to be choosy about the manner in which it’s broached. You likely have a bedroom; it probably has walls. You have clothing. You have a house. You have a town. You have a state. You have a country. And those are all borders. It’s borders within borders within borders within borders. And you need those borders, because otherwise you will die. So we could not be too hypocritical about the damn borders. We don’t know how to organize fragile things without putting boundaries around them.
You see that in Genesis, right? As soon as people realize that—I’m sneaking in a little religion here, in case you didn’t notice—as soon as people realize, they become self-conscious. They wake up and realize their vulnerability. The first thing they do is manufacture a border between them and the world. And we need borders between us and the world.
 And we pay a bloody price for borders. And I say those words very carefully. We pay a bloody price for borders, and it’s often in the price of other people’s blood.
And so, then, the question might be, well, how should you conduct yourself ethically in a world where other people are paying in blood for your borders? And the answer that I’ve been trying to communicate to people is, get your damn house in order. Bear as much responsibility as you can. Act as effectively as you can as an individual in the world. Because then you can justify your privilege. You can justify your luck and your good fortune. And maybe, within the confines of your border, you can be more productive and useful than you would be in the absence of borders altogether.
You do what you can where you can. You don’t say, “I want to feel good about that poor suffering child at the border, so I’m going to insist that the whole country gives up that border.” Meanwhile, who cares what happens to the property owner right there at the border, or anyone else who is harmed by the lack of a border? And, for that matter, what does getting rid of the border do to help the poor suffering child there? It’s not a certainty that getting rid of the border would even help her.

We don’t really have room today to cover all the other issues on that list. But we can briefly cover a couple of them.

Gender Dysphoria

It might make you feel good to say, “I care about that poor person who was born a male but thinks he/she is a female.” OK, but it isn’t self-evident that the best treatment is to get the whole world to support that person in their self-deception. No matter how elaborate the costume—which could include hormones and surgery—the body will still be a male body, with male DNA in every cell. What could have been a reproductively fertile body could be rendered permanently infertile. Isn’t it worth considering whether there is another, maybe better, solution? Especially since outcomes for those who have transitioned are not very positive (suicide as high or higher, body dysphoria continues), and since many have overcome the dysphoria without transitioning, and many who have transitioned have regretted taking that drastic step.

It may be that the best way to care for that individual is to actually care for them individually, and get them the support and treatment that will do them the most good. That very well might include mental health therapy to deal with the gender dysphoria or confusion first. Certainly waiting would be a better way to deal with children—the majority of whom are likely to outgrow the problem by adulthood.

Affirmative Action

It might make you feel good to care about a student from a minority group that suffered discrimination in the past. But it isn’t self-evident that the best solution is to give that student special treatment, in college admissions, for example.

It might be that a black student scores relatively well on exams, showing he would do well in just about any state school, but would be well below the mainstream or even the bottom of students at an Ivy League school. Do you help that student by putting him in an environment where he’s not likely to thrive? High dropout rates among blacks given affirmative action shows it’s not a kindness. They’re also like to choose an easier major, avoiding STEM fields, where they would have done well enough to follow a good career path, if they’d gone to a good-enough college instead.

Malcolm Gladwell tells a story in David and Goliath, that illustrates this. A young woman black woman excelled in science and math in high school. She chose to attend Ivy League Brown, instead of University of Maryland. But it turned out to be overly competitive, and she struggled, coming to believe she was stupid and incapable, because she was comparing herself to even smarter students, and ended up giving up her lifelong science dream for an easier field.

Gladwell then says this about affirmative action:

Affirmative action is practiced most aggressively in law schools, where black students are routinely offered positions in schools one tier higher than they would otherwise be able to attend. The result? According to the law professor Richard Sander, more than half of all African-American law students in the United States—51.6 percent—are in the bottom 10 percent of their law school class and almost three-quarters fall in the bottom 20 percent. After reading about how hard it is to get a science degree if you’re at the bottom of your class, you’ll probably agree that those statistics are terrifying.[i]
Derryck Green, of Project 21, talks about the results of affirmative action in a recent PragerU video; the segment is from about 1:40 to 3:50, but you can watch the whole five-minute video below.

To summarize, we all need to take a clearer look at caring. Stop killing with kindness. Doing something  that looks like caring in order to make yourself feel good about how virtuous you are is called virtue signaling. Instead, try stepping back from the immediate emotion, and thinking through the specific case, or the full range of possible consequences. And then do a rationally kind act. And do that act yourself—instead of pushing, or even requiring, others to do it.




[i] Gladwell, Malcolm, David and Goliath, p. 91. The statistics he references are from Mismatch: How Affirmative Action Hurts Students It’s Intended to Help, and Why Universities Won’t Admit It.

Thursday, March 22, 2018

Promising Pencils


One of the principles of the Spherical Model is that you handle economic needs through a combination of free market and philanthropy.

A friend told me once about her experience as a missionary in socialist Denmark. Her assignment was to help the women’s organization figure out how to serve each other and the community. But when they would meet, every time the women came up with an idea, their first step was, “And we can apply to the government for a grant to do this.” It didn’t seem to occur to them that they could use their own resources. People had forgotten their own power to do good.

So I’m always pleased to find examples of people working to solve problems themselves, instead of saying, “How can we make government solve this problem?”

Remember, as we say here,

Whenever government attempts something beyond the proper role of government (protection of life, liberty, and property), it causes unintended consequences—usually exactly opposite to the stated goals of the interference.
People really can solve problems better than government can solve their problems. And this is true worldwide.

This week in book club we talked about the book The Promise of a Pencil: How an Ordinary Person Can Create Extraordinary Change, by Adam Braun. This young entrepreneur, only now in his mid-30s, began his project with $25 when he was not yet 25 years old.



Braun was trained in finance and started his career at Bain. But his heart was connected to a dream—maybe an obsession. He says, in the book’s subtitle, that he’s an ordinary person, but he probably doesn’t qualify; he's probably extraordinary.

The book is set up to take us through the story behind his “for-purpose” organization (a term he adopts, because “nonprofit” doesn’t pack enough power) that builds schools in impoverished parts of the world.

The first location was Laos. Later he expanded to Guatemala, Nicaragua, and Ghana. To date Pencils of Promise has built 457 schools for 86,021 students. They also do teacher training now, and water and health programs.


Screen shot from the Pencils of Promise website


The reason for the pencil comes from a question he asked. He was doing a Semester at Sea, traveling around the world. He didn’t want to collect trinkets as souvenirs. So he decided to collect answers from children. He would ask one child per country, “If you could have anything in the world, what would you want most?” He expected answers to be fancy things you can buy: a flat-screen TV, an iPod, or a fast car. But children didn’t answer that way. One young girl in Hawaii said, “To dance.” In Beijing a girl answered “A book.” This girl loved school, but didn’t own any books of her own. Another child answered, “Magic.” Yet another wanted his mother to regain her health.

In India, he asked a boy his usual question, and the boy said,

“A pencil.”
“Are you sure?” I asked. He had no family, nothing, yet his request was so basic.
More men came over and started chiming in. They prodded him, “You can have anything. He might give it to you!”
The boy remained constant with his wish: “A pencil.”
I had a No. 2 yellow pencil in my backpack. I pulled it out and handed it to him.
As it passed from my hand to his, his face lit up. He looked at it as if it were a diamond (p. 35).
The boy had never been to school, but he knew that children in schools learned to write, and they used pencils. What he wanted most was to go to school. It was the way to “unlock potential.”
So the pencil became a symbol—the beginning of learning, the portal to possibility.

Braun began carrying pencils with him, to give away to children, in various other countries.

He thought for a while—and his parents advised—that he would work hard, make plenty of money for a couple of decades, and then use that to eventually make a difference. But the dream to build a school kept eating at him. He started out doing fundraising to build a single school. Then he created an internship to work at his own nonprofit. And then he dove in full time to the nonprofit, and learned, a lesson or two at a time, to make it successful.
Nuth on the steps of the first
Pencils of Promise school,
photo by Nick Onken,
p. 128 of the book


Fortunately, he did a lot right. And, as he said, he learned from his mistakes. In fact, he said the organization benefited more from his mistakes than anything else.

In the book, each chapter heading is a mantra—or, rather, a principle statement about how to be successful in accomplishing whatever it is you dream of doing. These are things like, “Why Be Normal,” “Get Out of Your Comfort Zone,” “Big Dreams Start with Small, Unreasonable Acts,” and “Practice Humility over Hubris.” It’s his story of building Pencils of Promise, over several years, bringing in friends and family along the way. And bringing in timely contributions from just the right people.

I especially liked the chapter, “Change Your Words to Change Your Worth.” In that chapter he realizes that, when he’s talking to businessmen, they start to tune out when he says he’s involved in a nonprofit. They’re about profits, so being against what they’re for is a disconnect. The realization changed how he did things. He realized it wasn’t lack of profit he was focused on; he was focused on a purpose. So he started using the term “for purpose.” 

And then he started running things less like an ad hoc volunteer place and more like a business. Even volunteers who weren’t productive were “fired,” and replaced with committed producers. I don’t know if the phrase “for purpose” will catch on, but it is a better description of many enterprises, maybe even some “for profit” ones.

A lot goes right in Adam Braun’s story. While the mantras try to make it look like anyone could do this, it probably also required a young man with a sense of mission and an endless amount of optimism and faith, which all coincided with much fortuitous, well-timed help. It’s almost as though God wanted this enterprise to succeed.

Among the things I especially like were that this was all done without asking for government handouts. There had to be some working with various governments. And some cases the governments had a budget for teachers but not for building schools, so once Pencils of Promise put a school in place, education got underway.

But it is more than just rich people from rich nations dropping in to do something good and then dropping out. They got buy-in from the people in those poor local areas by having them make an investment. For people who only earned a dollar a day, they couldn’t contribute money. But sometimes they could contribute wood or stone that they gathered and carried to the building site. And sometimes they contributed their time in the construction. It was important that they showed they really wanted the school.

The partnerships were built ahead of choosing the building sites. The communities had to be ready, and show their willingness, before they were chosen as a building site. It was also important to have local management making things happen.

I prefer organizations that put all their donations into doing the good—rather than into overhead. Pencils with Promise operated on very low overhead the first few years. Still, they considered they were doing great to have around 83% of donations go to the actual building of schools. Later, they found a way to do a single large gala to earn the annual operating budget, so that all those small donations intended for the educating children would go 100% to building schools—and later also to books, materials, uniforms, and teacher training.

It helped that the self-driven young man, who surrounded himself with other self-driven volunteers and workers, had a background in finance. He still had a lot to learn, but it wasn’t a random guy off the street with an idea; it was the right guy.

I hadn’t heard of Pencils of Promise before we decided to read the book. But I’m glad to know about it now, and see it continue to do well.

Still, good isn’t always done by large worldwide organizations. Sometimes a service-oriented person finds things that need doing very close to home, and just does them. My mother-in-law was one of those. There was no stopping her; she had to serve, as a way of life. It was tiring for some of us to watch. But it was a good life.

Living a life with purpose is probably always going to be a life well lived. Happier. More fulfilled. Extraordinary success is great, and sometimes certain big things require the extraordinary effort, like Pencils of Promise. But small philanthropy done by many people in many places close to home, is also an answer to solving the economic and social problems in our world.


Thursday, September 29, 2016

More on Wealth, Poverty, and Politics

image from Amazon
Economist Thomas Sowell has a new edition of his classic book Wealth, Poverty, and Politics, and talked about it in the latest Uncommon Knowledge interview.

Peter Robinson starts the interview with a quote from the book, which serves as a theme:

It is not the origins of poverty which need to be explained. What requires explaining are the things that created and sustained higher standards of living.
In explaining what he means by that, Dr. Sowell says,

There are actually books with titles and subtitles about the origins of poverty. Well, the entire human species began in poverty. So I don’t know why we say, what is the origin? Perhaps the Garden of Eden or someplace. But more than that, you’re trying to explain why some countries are poor rather than trying to explain why other countries are more prosperous. There’s no explanation needed for poverty. The species began in poverty. So what you really need to know are what are those things that enable some countries, and some groups within countries, to become prosperous.
He further explains that there are unstated assumptions about income inequality that are false, but are left unexamined. To use another quote from the book,

One of the key implicit assumptions of our time is that many economic and social outcomes would tend to be either even or random, if left to the natural course of events, so that the strikingly uneven and non-random outcomes so often observed in the real world imply some adverse human intervention.
So, there’s this idea being promulgated that, because people are equal, their outcomes should be equal. But people aren’t equal. They are equal before the law—no class of humans more deserving of justice than any other—but people are different in intellect, drive, learning, creativity, desires, preferences, and circumstances.

Dr. Thomas Sowell
image from Uncommon Knowledge
And people are located in different places. Dr. Sowell talked about the Zaire River in Africa, which carries more water than the Mississippi. But it is full of falls and cascades that make it mostly non-navigable, while the Mississippi smoothly changes elevation by only about four inches per mile. People living by the Mississippi, then, have a water route that people living by the Zaire River do not.
He also talked about isolation, such as caused by mountains. People living in isolated Afghan mountain villages live at approximately the same level of poverty as people in isolated Appalachian mountain villages. And people who live discovered on isolated islands are found living very little different from stone age people. Isolation means less trade, less learning from others, less benefiting from others.

So it isn’t some rich person taking away from a poor person; it is a rich person doing what it takes to escape from poverty.

We basically know what those things are. One of the main sources of wealth is human capital. Here’s another quote from the book:

The welfare state reduces the incentives to develop human capital. And receiving the products of other people’s human capital is by no means as fundamental as developing one’s own human capital.” [18:30]
Following the quote, Peter Robinson asks “What is human capital, and why does the welfare state suppress the incentives to develop it?” Dr. Sowell answers, “Well, human capital is the ability to create the material things that constitute wealth.”

A classic example. In the 1970s, Uganda decided that the Gujaratis of India were just too wealthy and controlled too much of the economy. They sent them out, and they wouldn’t let them take their wealth with them. So the Gujaratis arrived mostly in England, destitute. And the Ugandan government has taken over all this material stuff. Over a period of a relatively few years, the Gujaratis were prosperous in England, and the Ugandan economy collapsed, because they didn’t have people who could do what the Gujaratis were doing. And so they no longer had the same production.
It's also one of the problems with trying to solve things by confiscating the wealth of the wealthy. All you can confiscate is the material wealth. You cannot confiscate the human capital.
Confiscating wealth from those who created it and giving it to those who didn’t create it only moves things around, not wealth-generating capabilities.

And income redistribution is wrong-headed in other ways. Talking about the concern that the top 10% have undue influence over society, Dr. Sowell says,

TS: 53% of American households are going to be in the top 10% at some point or other in their lives. You talk about these percentages as if these are ongoing, the same set of people in this bracket, and that bracket. Most Americans do not stay in the same 20% bracket for more than one decade.
PR: So it’s largely a life cycle: you’re poor when you’re young, and doing well when you’re old.
TS: Yes. And there’s nothing mysterious about that. Probably most people in this country, when they started out at entry level jobs were not making what they’re making when they’re forty years old. Heaven knows, I was making $2 a day to deliver groceries, and depended on tips for the rest. [17:20]
He later added,

Somebody said the other day that they want to ease the pain of people in poverty. The pain of poverty is what got many people out of poverty. [35:23]
Peter Robinson ended the interview by having Dr. Sowell read a passage from the book, which summarizes the fallacy of economic equality as a goal:

It is by no means obvious why we should prefer trying to equalize income to putting our efforts into increasing output. People in general, and the poor in particular, seem to vote with their feet, by moving to where there is greater prosperity, rather than where there is greater economic equality.
Rising standards of living, especially for those at the bottom economically, have resulted not so much from changing the relative sizes of different slices of the economic pie as from increasing the size of the pie itself, which has largely been accomplished without requiring heady rhetoric, fierce emotions, or bloodshed.
Does it not matter if the hungry are fed, if slums are replaced by decent and air conditioned housing? If infant mortality rates are reduced to a tenth of what they were before? Are invidious gaps and disparities all that matter? In a world where we are all beneficiaries of enormous windfall gains that our forebears never had, are we to tear the society that created all this apart because some people’s windfall gains are greater or less than some other people’s windfall gains? [40:34]
Thomas Sowell always offers up truth with good humor and common sense. So even when he says what he has said before, we enjoy it. Let’s summarize with a couple of basic economic principles:

·         Thou shalt not covet. [I wrote about this April 26, 2013]

·         Live the principles that build social capital. [I wrote about this February 24, 2012]

Thursday, August 4, 2016

There's No Such Thing as a Right-Wing Extremist

There’s no such thing as a right-wing extremist. There’s no such thing as a left-wing extremist either. Because the whole right-left model doesn’t work.

Yes, there are extremists. But communism (what we’ve been calling extreme left) isn’t the polar opposite of fascism (what we’ve been calling extreme right); they are almost the same. Both are nasty, misery-filled tyrannies. Trying to find some balance between two really awful things only gives us a really awful compromise.

I propose that we look at the actual polar opposites, and the world of positions between them, in hopes that we can make some better choices.

We want freedom, prosperity, and civilization. That’s our goal. We can judge an ideology or government form by how far it diverges from those political, economic, and social goal zones: near, far, or extremely far.

In the Spherical Model, the political sphere has freedom as the north pole; the south pole is tyranny. Overlaying that is the Economic Sphere, with prosperity north and poverty south. And overlaying the other layers is the Social Sphere, with civilization north and savagery south.

Lateral location on the sphere is neutral; it depends on whether the issue being looked at is relevant to local, regional, national, or larger interests, on a spectrum ranging from the individual and family all the way up to global. Lateral posistion only relates to tyranny if a higher level than necessary tries to take control.

When we look at the extremes of communism and fascism, they’re pretty close to one another. They may even overlap: the communist Soviet Union was called the Union of Soviet Socialist Republic. Nazi Germany was the National Socialist Party.

In this example Communism is blue, Socialism is red, Fascism is green
If we draw them on our Political Sphere, communism and fascism are both in the lower left quadrant, where you find statist tyranny, or totalitarianism. Socialism might overlap them completely. Or, as it is in some countries, there could be only partial socialism, so those versions might be less far south into tyranny. And there could be versions that are globalist, or only national or even more local. For example, Berkeley, California, has had a communist mayor and some citywide communist policies. And California is clearly more socialist than Utah or Texas. The latter two are much closer to Constitutional freedom than the current US as a whole.

From the perspective of the global interest extreme,
moving away from global interest either left or right
Communism and fascism can be different ideologies and still be right next to one another on the sphere. If we spin the globe a bit, so we’re directly facing the far eastern global line, we can place communism all the way south and next to global interests, and fascism can also be all the way south and next to global interests. It’s like being on either side of the international dateline. You might have come at the dateline from one direction, and your friend might have gotten there from the other direction, but you’re both within a couple of blocks from each other with an imaginary line between you.

Why does all this matter? Because ideas matter. Philosophies matter. That’s what determines what our governments are like.

And what our governments are like determines what our lives are like. How free we are to pursue our dreams, live our lives, enjoy the fruits of our labors and our property. Governments can either protect our life, liberty, and property, or they can limit our choices and prevent us from thriving.

And even if we, ourselves, figure out how to get to freedom, prosperity, and civilization, the government we live under is in part determined by the rest of society. So we need others to learn how to get there too.

Here’s the secret we keep trying to yell from the rooftops: Government needs to be limited to its proper role, the way it’s spelled out in the Preamble to the Constitution:

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

For prosperity, government gets out of the way of a free market and merely protects our lives and property. And for civilization, government that gets out of our way while encouraging good citizens to honor God, family, life, property, and truth.

Monday, March 7, 2016

Choosing to Solve Poverty

Some things are simple but not easy. Solving the problem of poverty is one of those things. But here at The Spherical Model, we have the solution:

Free-enterprise economy combined with charitable giving and service.

We don’t solve poverty by taking from those who have been able to acquire more than they currently need through hard work and good fortune and giving their money to those who have less, for whatever reasons.

How do we know? Prime evidence is the “War on Poverty,” now ongoing for over half a century. I wrote about it two years ago, when it turned 50 ("The Fifty Year War" part I and part II). It is the largest, costliest war ever. Yet poverty rates remain about the same. And government goes on taking money to transfer even though their approach is provably faulty.

Graphic I used in 2014, found here


Maybe there’s something more than numbers involved.

Prosperity requires a free people engaged in a free market—all of which requires a law-abiding, righteous people. Things are interrelated. There’s something that comes up in all three spheres—political, economic, and social—and that is choice.

We need the freedom to choose how we will live, what we will do in life, what we will believe, what we will pursue. So political freedom will set the foundation for greater prosperity than any tyranny can do.

We need a free economy, in which we choose how we work, and more particularly how we spend what we have earned. This encourages the incentive to work harder and innovate, so that we can enjoy the fruits of labor.

But one reason “the poor are always with us” is that some are unable, for reasons that are no fault of their own, to take care of themselves, either temporarily or permanently. Some might lack physical or mental capacity to earn enough to care for themselves. Some might be in the position of taking care of a loved one, which prevents them from earning income.

In a civilized society, we recognize these people in need, we have softened feelings for them, and we want to help. We choose to help.

Those who think there is some other way have always failed, and will always fail. You can’t force good will, or charity, or caring.

But how do we get people to do the necessary giving? Because, what if people just don’t do it? Are we just going to let people die on the streets?

No, no one wants people dying on the streets. But if giving power to government to do charity for us would work, we’d have evidence of that by now. Instead we have proved that coercive “charity” doesn’t work.

Remarkably, though, even though government has tried to usurp this charity role from the people, we have nevertheless been charitable. In the January issue of Imprimis, Karl Zinsmeister writes of “Charitable Giving and the Fabric of America.” He offers some surprising evidence of our choice to give. He says,

Private philanthropy is crucial in making America the unusual country that it is. Let’s start with some numbers. Our nonprofit sector now comprises eleven percent of the total United States workforce. It will contribute around six percent of gross domestic product this year. To put this in perspective, the charitable sector passed the national defense sector is size in 1993, and it continues to grow. And these numbers don’t take volunteering into account: charitable volunteers make up the equivalent—depending on how you count—of between four and ten million full-time employees. So philanthropy is clearly a huge force in our society.
He gives examples of a few of America’s larger philanthropists: Ned McIlhenny, Alfred Loomis, John D. Rockefeller, George Eastman, Milton Hershey. These are all businessmen who then used their considerable wealth to do good in ways they were passionate about.

Then he told the stories of some lesser known, smaller philanthropists, because only 14 percent of charitable giving comes from wealthy people giving to big foundations. And only 5 percent comes from corporate giving. “The rest comes from individuals, and the bulk of it comes from small givers at an average rate of about $2,500 per household per year.”

One such person was Anne Scheiber, a reserved auditor. She retired with $5,000 in the bank in 1944, lived frugally, invested wisely, and amassed $22 million by her death in 1995 at age 101. She left her legacy to Yeshiva University so “bright but needy girls could attend college and medical school.”

Then there was Elinor Sauerwein, who frugally mowed her own lawn, painted her own house, and grew her own garden. She was motivated by a goal to give all she could to the Salvation Army—which was $1.7 million in 2011.

A shoe-shine named Albert Lexie donated his tops to the Free Care Fun of the Children’s Hospital in Pittsburgh. From 1981 to present, he donated over $200,000, which was a third of his income.
There are others. You may know some. People who give to benefit society through education, or hospitals, or on-the-ground charities helping the poor and homeless. There are private societies preserving our history, maintaining libraries, and funding scientific developments.
America is great because America is good. So far. Partly because America is free to choose to be good.

Zinsmeister mentioned a comparison done by historian Daniel Boorstin: “In 1880, the state of Ohio had only three million inhabitants but 37 colleges. That same year, England had 23 million inhabitants but only four colleges. The difference was small-scale philanthropy directed towards education.”

Those who worry that charitable giving can’t possibly do enough look at private philanthropy with variations of three criticisms:

1.       It’s a drop in the bucket.
2.       It’s amateurish, chaotic, and lacks expert coordination.
3.       Private donors act from impure motives.

Zinsmeister then tackles each of these in turn. As for the first, he points out, “The Gates Foundation alone distributes more overseas assistance than the entire Italian government.”  And that single foundation is only “a tiny sliver of American philanthropy directed overseas. Members of American churches and synagogues send four-and-a-half times as much to foreigners in need each year as Gates does,” and far exceeds the foreign aid budget of the US government. Recent annual totals are $31-$39 billion.

About lack of coordination, he offers evidence that local people, observing a problem and acting to meet a need, are more likely to succeed than distant planners. He contrasts a woman named Lizzie Kander, who funded a settlement house for Russian Jewish immigrants around the turn of the last century—she made and sold a cookbook to fund the thing—with his experience working in the White House West Wing.

He asserts, “The healthiest forms of societal improvement result from lots of little experiments. Some will fail, but others will succeed and be copied. This is the method by which private philanthropy proceeds.”

As for the third concern, impure motives, he says, so what? Most donors have altruistic motives beyond a tax break or getting their name on a building. Still, if good things get done, why worry about mixed motives?

What if the government got out of the “charity” business tomorrow? Could we figure things out? I believe we would. I believe good people follow natural impulses to help one another. And the more we are personally connected locally, the more that is true.

My belief is that the natural freedom of the internet makes connecting givers to organizations and individuals working to make a difference easier. There’s also the possibility of fraud there, but I think we’ll get better with time at recognizing and weeding those out.

Some people have money to give. Some have time, talents, or expertise. There are so many ways to give and serve the community.
community service illustration from JustServe.org


My church has organized a website (I think it’s national and international) for connecting givers and servers with organizations in need of the help: JustServe.org. In Houston we’ve had a version of that for a while: VolunteerHouston.org.

For larger disasters and ongoing humanitarian projects, my favorite is LDS Philanthropies and Humanitarian Aid, where 100% goes to aid, because overhead is handled through other, separate donations. 

A couple of my most read posts relate to community service: “Community Service Is Better Than Community Organizing,” and “Peanut Butter News.”

Zinsmeister concludes: “Early on, Americans discovered that voluntary action to lift others up is not only possible, it is superior to the kind of state paternalism that diminishes freedom. Private charitable giving and the spirit of volunteerism have been essential bulwarks of the American character, and they remain indispensable to our national success.”

So, can we eliminate poverty? There will always be poorer people, but in a civilized society they are clothed and fed and sheltered. And paths are made available so that most can find a way out of being at the bottom of earners. That happy outcome happens not from government “being giving,” but by individuals in a free society choosing to give to one another.

Thursday, June 18, 2015

Disparity

Some people have more money than others. Some people have a lot more than others. Is there something wrong with that? Something evil that requires correction?

First of all, what is wealth, again? At the Spherical Model, this is the definition:

Wealth is not some mystical entity endowed by either government or birthright. Nor is it something that the haves enjoy by depriving the have nots of their fair share. Wealth, simply, represents the accumulation of the results of labor.
There is a total amount of wealth in the world—at this current moment. But that is an accounting detail, not a limit. There is no upper limit to wealth in the world. It is producible by every productive human individual.

There’s a section of The Lessons of History, by Will and Ariel Durant, on money, and disparity of wealth:

Since practical ability differs from person to person, the majority of such abilities, in nearly all societies, is gathered in a minority of men. The concentration of wealth is a natural result of this concentration of ability, and regularly recurs in history. The rate of concentration varies (other factors being equal) with the economic freedom permitted by morals and the laws. Despotism may for a time retard the concentration; democracy, allowing the most liberty, accelerates it….
We conclude that the concentration of wealth is natural and inevitable, and is periodically alleviated by violent or peaceable partial redistribution.
So, what we know is, there will always be differences, disparity of wealth. Because people are different. But the problem isn’t that wealth disparity exists; it is that poverty exists. As the Gospels say, “For ye have the poor with you always” (Mark 14:7, see also Matthew 26:11 and John 12:8).

It would be helpful to look at real root problems, rather than imagined problems.

Does a rich person’s wealth prevent a poorer person from generating wealth? Not in a free market. In a true free market, wealth is developed by producing more than the minimum necessary for survival. In the language of money, it’s when you earn more than you spend, and you accumulate the extra. And you might accumulate more if you invest it—low amounts in a savings account, possibly more with other investments—along with the risk of loss.

But what about the person who spends everything he can earn, and can hardly get by? What if he can barely cover his food, clothing, and shelter needs, with nothing left over for education, entertainment, or greater comfort? Is it fair that he works hard and lives this way, when another person works maybe only as many hours—and maybe at less physically taxing work?

Isn’t it evil for the rich person to accept so much money—way beyond what he needs—for work that is in many ways equivalent to a regular worker?

The Good Earth
That’s the kind of question that leads to discontent and sometimes to violence. 

In Pearl Buck’s novel The Good Earth, there’s a point where the poor are starving and growing daily more desperate, squatting along the walls of the wealthy, until things get so heated, the poor rise up and raid the property of the wealthy, looting and killing. That was a book of fiction, but the Durants’ book describes that as a typical cycle.

It might look like the problem is too much wealth at the top, but it’s really about too little at the bottom. When people are starving and suffering while the wealthy ignore their needs, that is an injustice that won’t stand indefinitely. Usually in that kind of situation, there are interferences going on that protect the position of the wealthy at the expense of the poor. There are class systems that keep people down. Or there are limits to who can do what work, or enter into certain businesses.

It is interference with liberty that leads, not simply to disparity, but to suffering by the poor with no apparent way out. More interference, even with the intention of making up for the injustice, will never solve the problem.

The problem isn’t that some people make more; the problem is that there are actual poor—those who, for no fault of their own, cannot earn enough to meet their needs—that aren’t being taken care of.

A Democrat friend (whom I am quoting without identifying, because I value the friendship, if not the ideas) recently posted this Jimmy Carter quote:

If you don’t want your tax dollars to help the poor—then stop saying that you want a country based on Christian Values, because you don’t.
And then he commented,

We are the government. We choose where the money is spent. If you hate government, then work to change it. A society is known for how it treats people. I choose to live in a society where we feed the poor and provide great education for people to succeed. I believe we should provide healthcare to all people regardless of what country of birth or ability to pay. These people are our brothers and sisters. If you want to turn away your brother and sister then send them to me. If you want to blame government for everything bad in this country, then blame your forefathers for setting up this system. I choose to work harder to make a difference.
I guess we need to mention that this is not the system of forefathers set up. I've read the Constitution. But this is an example of how many Democrats think. They would never vote for a Republican, because Republicans are mean and stingy, and out to make money for themselves and let the poor starve. But they’re wrong. Republicans, or conservatives in general, because they don’t assume that government has relieved them of responsibility, are much more likely to give freely, and are likely to find charitable organizations that make a real difference in the lives of those in need. need.[i]

Government is coercion. There is no charity in coercion, so government charity is a lie; it is the despotism of redistribution. In short, that means we are voting to allow government to take earnings from whomever it chooses and to give that confiscated money to whomever it chooses. In our individual lives, that is called theft. When our government does it, it doesn’t suddenly become noble; it is still theft.

The “we are the government” claim is a fallacy. We, the people, are sovereign, and grant to government only what we must, to perform specific security and infrastructure roles. When government takes our money to give to the poor, we aren’t being charitable; we are being robbed. And too often the poor aren’t helped out of poverty; they are lured into dependency on government, which is about government power much more than about helping people. If you assume that, once robbed by government you have no more responsibility to the poor, you might be making yourself feel good, but you’re not actually engaged in charitable giving.

Follow that “we are the government” idea to its logical conclusion, and it means any majority can do anything it wants: confiscate wealth, take businesses from those who own them (ask GMC dealers under threat of Obama), control what you produce and sell, control what you are allowed to do with your own property, decide whether you are a preferred person to get various opportunities, decide how you raise your children, decide whether you get health care and within what limits, and on endlessly.

The solution to poverty isn’t theft from earners. It has to be actual charity. People with enough to meet their needs need to feel compassion in their hearts and give freely, in ways that will help the poor, whenever possible, to move out of their situation and become self-sustaining, and on the way to building their own wealth.

Name calling about whether someone is Christian or not isn’t helpful. Start with tithes and offerings. A tithe is 10% of your gross income (you figure that out, if you’re a business; it can be after reinvestment in the business for future income). Then, on top of that, consider going without something, such as a meal or two while you fast, and giving that to the poor. If your church isn’t a good outlet for the entire amount of your charitable giving, then find the charities that work for you.[ii] If you’re not doing this minimal amount that God asks for, then don’t go pretending you’re more giving because you let government take your money for its purposes. [Note: the Democrat friend actually is a rare one who pays tithes, so at least he's not hypocritical on this point.]

Baby Social Sphere helps by making friends
at a nutrition screening in Peru
If you’re at the lower end but getting by, you can still give that percentage; the widow’s mite was the greatest gift left at the altar that day (Luke 21;1 and Mark 12:14). Seeing yourself as someone with extra to give can be mind-changing in ways that lead to wealth. You feel gratitude instead of covetousness. You recognize the value of what you have and take care of it. You feel generosity to care for the less fortunate. You cease to feel entitled to what others have earned and begin to feel confident in your own ability to meet your needs and offer value to the world.

Inculcating real charity, instead of resentment and covetousness, would get us closer to solving the poverty problem.


The problem isn’t disparity, so let’s not even worry about that. The problem is that some people are in need and really need help. The political solution isn’t more government control; it is more liberty. The economic solution isn’t forced redistribution and control, but free market with its opportunities. The real solution is something you need for civilization—real charity and voluntary giving.


[ii] I suggest Liahona Children’s Foundation, which offers nutrition-dense resources for poor children, a project daughter Social Sphere is helping with in South America the past couple of months.

Wednesday, March 4, 2015

More of the Best, Part III

Economic Sphere
Today is the actual anniversary of the first Spherical Model blog post. Hurray! And this is the third day in our 4th anniversary and 600th post celebration. The first time I did a “best of” collection, it was at 400 posts. So this new list adds to that list from the past couple hundred posts. The celebration started with the Spherical Model concept, and part II was on the Political Sphere. Come back tomorrow when we look at Civilization.

Today’s list is the Economic Sphere. To start your studies, you might want to read the Economic section of the Spherical Model website. And also take a look at the original “best of” list of Economic Sphere posts. The posts below are more recent. I see the list is long. That’s the problem with being my own editor. I wrote them with the hope they would be of value to readers. They still seem that way to me. So while this isn’t every economic post, it’s more than a top 10. You’re not required to read every post, but I think they could all be useful.
The Spherical Model—Best of: Volume II, Economic Sphere
·         Doing Business:  August 23, 2013 
·         Poverty of Nations Review:
o   Labor:  September2, 2013 
o   Prices:  September 4, 2013 
o   Greed vs. Self-Interest:  September 9, 2013 
·         Beanie Baby Economics:  October 28, 2013 
·         Redistribution:  October 30, 2013
·         Interference and Consequences: November 6, 2013 
·         The Rhetorical Question:  November 22, 2013
·         Economic Schools of Thought:  November 25, 2013 
·         The Fifty-Year War, Part I and Part II: January 13 and 16, 2014 
·         Flat Lining:  May 5, 2014 
·         Prosperity vs. Poverty:  July 21, 2014 
·         Giving until It Hurts:  November 6, 2014 
·         How Much Is 18 Trillion?:  December 9, 2014 
·         Laffer Curve Turns 40:  January 12, 2015