Journalist Andrew Gumble recently wrote in The Independent (UK): “Poverty deepens when the wealthy don’t care. Poverty deepens when the super wealthy simply get greedy. No other explanation is possible.” In fact, many other explanations are possible. (more…)
For over 25 years, an increasing number of other countries have established some form of personally held accounts in response to their own social security and pension crises. Following their lead is a smart and sustainable way to reform our own Social Security system before it is too late. (more…)
A recent article in Resurgence Magazine (December 2007) makes the claim that our free-market economy “lacks a moral compass” and is “value-free.” The author proposes a moral compass for the economy based on values pointing towards the environment and fulfilling human needs.
However, this sort of economy overlooks the (more…)
While the debate continues over top-down, government-provided health care vs. consumer-driven, grassroots health care, here are some interesting points to consider.
First, the government- provided approach. Many say that affordability would not be an issue, given a payroll tax to pay for universal coverage. However, any time a tax is levied, more of “middle America” loses earned income. This leads to an increasing burden on working families, without any guarantee of (more…)
“Income inequality” is a central part of the debate surrounding poverty and economic growth. However, a better alternative to the term “income inequality” is “opportunity inequality.” Poverty is not about what or how much you consume but about limited opportunity and freedom. (more…)
Poverty, economic development and fairness are words often used when speaking about income inequality. “Income inequality” refers to the gap in consumption between the rich and the poor but fails to illustrate anything about well-being and long-term self-sufficiency.
The term “income inequality” is not particularly helpful. It focuses more on (more…)
Presidential hopefuls, policy wonks and advocates from the Left have given the idea of ownership a bad rap. These are many of the same folks working on poverty alleviation. Unfortunately, they are missing a crucial element to helping the poor: Property rights and possession of assets are instrumental to poverty alleviation. Contrary to claims by critics that focusing on ownership breaks down communities and fosters an “everyone-for-himself” attitude, research shows asset ownership results in greater community and civic participation by the poor. (more…)
The U.S. Supreme Court ruled that retirees do not have an ownership claim to future unpaid Social Security benefits. Because you do not have a property right to your mandatory contributions, you may never be able to benefit from them. In over 30 countries, however, personal accounts are increasing long-term security and ensuring retirement benefits. (more…)
Protecting the earned income of low-income families is a proven method of concretely reducing poverty and increasing economic equity. The Earned Income Tax Credit, first enacted in 1975, encourages individuals to remain employed rather than depend on unearned income such as welfare programs. Within the asset building field, it is essential to advance the concept of “making work pay” via public policies and community programs. (more…)