Quotulatiousness

December 10, 2014

US child poverty is bad … but nowhere near as bad as they say

Filed under: Media, USA — Tags: , , , , — Nicholas @ 00:04

Tim Worstall debunks a headline statistic from earlier this month:

We’ve a new report out from the Mailman School of Public Health telling us that in some urban parts of the US child poverty is up at the unbelievable rates of 40, even 50% or more. The problem with this claim is that it’s simply not true. Apparently the researchers aren’t quite au fait with how poverty is both defined and alleviated in the US. Which is, when you think about it, something of a problem for those who decide to present us with statistics about child poverty.

[…]

Everyone else [in the world] (as well as using a relative poverty standard, usually below 60% of median earnings adjusted for family size) measures poverty after the effects of the tax and benefits systems on alleviating poverty. So, in my native UK if you’re poor you might get some cash payments (say, unemployment pay), some tax credits, help with your housing costs (housing benefit we call it), reduced property taxes (council tax credit) and so on. Whether you are poor or not is defined as being whether you are still under that poverty level after the effects of all of those attempts to alleviate poverty.

In the US things are rather different. It’s an absolute standard of income (set in the 1960s and upgraded only for inflation, not median incomes, since) but it counts only market income plus direct cash transfers to the poor before measuring against that standard. Thus, when we measure the US poor we do not include the EITC (equivalent of those UK tax credits, indeed our UK ones were copied from the US), we do not include Section 8 vouchers (housing benefit), Medicaid, we don’t even include food stamps. Because the US measure of poverty simply doesn’t include the effects of benefits in kind and through the tax system.

The US measure therefore isn’t the number of children living in poverty. It’s the number of children who would be in poverty if there wasn’t this system of government alleviation of poverty. When we do actually take into account what is done to alleviate child poverty we find that it’s really some 2-3% of US children who live in poverty. Yes, that low: the US welfare state is very much child orientated.

(Emphasis mine)

December 6, 2014

Everyday life in “The Ghetto Archipelago”

Filed under: Bureaucracy, Law, Media, USA — Tags: , , , , — Nicholas @ 00:03

At Reason, J.D. Tuccille reviews On the Run: Fugitive Life in an American City, by Alice Goffman:

The police presence in 6th Street is pervasive. Residents, young black men in particular, can expect to be frequently stopped, questioned, and searched. Many initial arrests are for drugs, often possession of marijuana. After that, as Goffman records, the system takes on a horrible logic of its own. Criminal records make employment hard to find, and recurring court dates devour time that might be devoted to work, job searches, or family responsibilities. Without regular income, court fees add up and may prove unpayable. Many of the people Goffman writes about are essentially constant low-level fugitives, hunted by police for missed appointments. Some end up committing additional crimes to pay their accumulating debts to the courts.

People living on the wrong side of the law are both dependent on and vulnerable to those around them. Goffman documents how chronic legal problems prevent young men from attending the births of their children or the funerals of their friends, since the authorities often monitor those occasions looking to make arrests. Those legal problems also provide opportunities for angry girlfriends and other acquaintances to avenge perceived wrongs with a simple phone call to the cops.

Neighborhoods heavily populated by young men on the run (usually in the most figurative sense, since their lives become circumscribed by familiar people and streets) also create business opportunities for those willing to serve their idiosyncratic needs. One memorable character in On the Run is Jevon, whose memory and ability at mimicry allow him to earn money impersonating men to their parole officers for curfew-checking phone calls. Another, Rakim, augments income from his passport photo business selling clean urine to men facing drug tests. Many local businesses-such as rental car lots and motels-have two price sheets, one for mainstream customers and one for those who have no credit cards or ID.

Identification itself is a commodity, with employees inside the Pennsylvania Department of Transportation selling drivers licenses-basically, new identities — for a substantial fee. (Other public employees, from court clerks to prison guards, also find it lucrative to sell favors and services.) “The level of social control that tough-on-crime policy envisions-particularly in a liberal state-is so extreme and difficult to implement,” Goffman writes, “that it has led to a flourishing black market to ease the pains of supervision.”

H/T to ESR who wrote:

Linked article explains why, though I’ve defended the shooting of Michael Brown as a prudent and ethical response to an imminent threat of deadly force, I’ve had little patience with those defending the Ferguson police in general either before or after the shooting.

Yes, the system oppresses people like the blacks in Ferguson, in a way that has little to do with “institutional racism” but everything to do with a vicious cycle of deteriorating ghetto culture coupled with perverse incentives on the police created by “tough on crime” laws.

How do I know? I’ve never been to Ferguson…but Philadelphia is my city. I used to live there, mere blocks from the ghetto archipelago. I’ve seen some of the overspill from what Goffman is writing about. She speaks truth, and we would do well to heed her.

November 25, 2014

QotD: Rand Paul and the war on drugs

Filed under: Law, Liberty, Quotations, USA — Tags: , , , , , — Nicholas @ 00:01

I’ll do everything to end the war on drugs. … The war on drugs has become the most racially disparate outcome that you have in the entire country. Our prisons are full of black and brown kids. Three-fourths of the people in prison are black or brown, and white kids are using drugs, Bill, as you know … at the same rate as these other kids. But kids who have less means, less money, kids who are in areas where police are patrolling … Police are given monetary incentives to make arrests, monetary incentives for their own departments. So I want to end the war on drugs because it’s wrong for everybody, but particularly because poor people are caught up in this, and their lives are ruined by it.

Rand Paul, speaking to Bill Maher, 2014-11-15.

November 23, 2014

Working and middle class pushback against Obamacare

Filed under: Health, USA — Tags: , , — Nicholas @ 11:20

At Mother Jones, Kevin Drum looks at some of the reasons Obamacare is not being embraced by the working and middle classes the way many expected:

Obamacare winners and losersHere’s an interesting chart that follows up on a post I wrote a few days ago about Democrats and the white working class. Basically, I made the point that Democrats have recently done a lot for the poor but very little for the working and middle classes, and this is one of the reasons that the white working class is increasingly alienated from the Democratic Party.

I got various kinds of pushback on this, but one particular train of criticism suggested that I was overestimating just how targeted Democratic programs were. Sure, they help the poor, but they also help the working class a fair amount, and sometimes even the lower reaches of the middle class. However, while there’s some truth to this for certain programs (unemployment insurance, SSI disability), the numbers I’ve seen in the past don’t really back this up for most social welfare programs.

Obamacare seems like an exception, since its subsidies quite clearly reach upward to families in the working and middle classes. Today, however, Bill Gardner points me to a Brookings paper from a few months ago that suggests just the opposite. The authors calculate net gains and losses from Obamacare, and conclude that nearly all its benefits flow to the poor. If I interpolate their chart a bit, winners are those with household incomes below $25,000 or so, and losers are those with incomes above $25,000.

October 24, 2014

QotD: Poverty in the West is not like poverty in the rest of the world

Filed under: Economics, Quotations, Technology, USA — Tags: , , , — Nicholas @ 00:01

What is it, in terms of physical goods and services, that we wish to provide for the poor that they do not already have? Their lives often may not be very happy or stable, but the poor do have a great deal of stuff. Conservatives can be a little yahoo-ish on the subject, but do consider for a moment the inventory of the typical poor household in the United States: at least one car, often two or more, air conditioning, a couple of televisions with cable, DVD player, clothes washer and dryer, cellphones, etc. As Robert Rector and Rachel Sheffield report: “The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European. The typical poor American family was also able to obtain medical care when needed. By its own report, the typical family was not hungry and had sufficient funds during the past year to meet all essential needs. Poor families certainly struggle to make ends meet, but in most cases, they are struggling to pay for air conditioning and the cable-TV bill as well as to put food on the table.” They also point out that there’s a strong correlation between having boys in the home and having an Xbox or another gaming system.

In terms of physical goods, what is it that we want the poor to have that they do not? A third or fourth television?

Partly, what elites want is for the poor to have lives and manners more like their own: less Seven-Layer Burrito, more Whole Foods; less screaming at their kids in the Walmart parking lot and more giving them hideous and crippling fits of anxiety about getting into the right pre-kindergarten. Elites want for the poor to behave themselves, to stop being unruly and bumptious, to get over their distasteful enthusiasms, their bitter clinging to God and guns. Progressive elites in particular live in horror of the fact that poor people tend to suffer disproportionately from such health problems as obesity and diabetes, and that they do not take their social views from Chris Hayes — and these two phenomena are essentially the same thing in their minds. Consider how much commentary from the Left about the Tea Party has consisted of variations on: “Poor people are gross.”

A second Xbox is not going to change that very much.

Kevin D. Williamson, “Welcome to the Paradise of the Real: How to refute progressive fantasies — or, a red-pill economics”, National Review, 2014-04-24

September 9, 2014

QotD: The Iron Law of Redistributionism

Filed under: Bureaucracy, Economics, Politics, Quotations — Tags: — Nicholas @ 00:01

[P]olicies intended to “help” the poor are invariably hijacked by a rentier class that fattens on the rising diversion of income. Result: help never arrives, much wealth is destroyed, growth is strangled, and the poor get poorer.

Eric S. Raymond, Google+, 2014-09-06.

August 21, 2014

Ferguson authorities issue an average of “about 3 warrants and 1.5 cases per household”

Filed under: Law, USA — Tags: , , , — Nicholas @ 07:45

The relationship between the Ferguson police and the residents of the municipality seem to have been on a weird footing long before the current face-off, as Walter Olson points out:

Reading through this Newsweek article on the troubled relations between police and residents in Ferguson, Mo. before this month’s blowup, this passage jumped out at me:

    “Despite Ferguson’s relative poverty, fines and court fees comprise the second largest source of revenue for the city, a total of 2,635,400,” according to the ArchCity Defenders report. And in 2013, the Ferguson Municipal Court issued 24,532 arrest warrants and 12,018 cases, “or about 3 warrants and 1.5 cases per household.”

My first reaction – maybe yours too – was “is that a misprint?” Three arrest warrants per household in Ferguson last year?

Now let’s stipulate that some of those warrants were written against out-of-towners, especially in matters arising from traffic offenses, tickets being a key revenue source for many municipalities in St. Louis’s North County. Yet here’s a second statistic some will find surprising: while reported property-crime rates in Ferguson have run well above the national average for years, violent-crime rates have not. After a high period that lasted through 2008, they have declined steadily to a point where last year Ferguson had about the same rate of violent crime as the nation generally.

What seems clear at this point is that Ferguson – while in some ways a nicer and safer town than some have imagined – does suffer from a unusual degree of antagonism between police and residents, an antagonism that crucially involves race (the town is an extreme outlier in its now-famous extent of black underrepresentation in elected office) and yet has other vital dimensions as well.

Update: Alex Tabarrok says this is an example of the return of debtor’s prisons in modern America.

How does a stop for jaywalking turn into a homicide and how does that turn into an American town essentially coming under military control with snipers, tear gas, and a no-fly zone? We don’t yet know exactly what happened between the two individuals on the day in question but events like this don’t happen without a deeper context. Part of the context is the return of debtor’s prisons that I wrote about in 2012:

    Debtor’s prisons are supposed to be illegal in the United States but today poor people who fail to pay even small criminal justice fees are routinely being imprisoned. The problem has gotten worse recently because strapped states have dramatically increased the number of criminal justice fees….Failure to pay criminal justice fees can result in revocation of an individual’s drivers license, arrest and imprisonment. Individuals with revoked licenses who drive (say to work to earn money to pay their fees) and are apprehended can be further fined and imprisoned. Unpaid criminal justice debt also results in damaged credit reports and reduced housing and employment prospects. Furthermore, failure to pay fees can mean a violation of probation and parole terms which makes an individual ineligible for Federal programs such as food stamps, Temporary Assistance to Needy Family funds and Social Security Income for the elderly and disabled.

[…]

You don’t get $321 in fines and fees and 3 warrants per household from an about-average crime rate. You get numbers like this from bullshit arrests for jaywalking and constant “low level harassment involving traffic stops, court appearances, high fines, and the threat of jail for failure to pay.”

If you have money, for example, you can easily get a speeding ticket converted to a non-moving violation. But if you don’t have money it’s often the start of a downward spiral that is hard to pull out of

August 11, 2014

Ordinary British life before August 1914

Filed under: Britain, History — Tags: , , , — Nicholas @ 10:35

The Telegraph has an interesting series of short articles drawn from their 1914 archive, showing ordinary life in Britain before the start of World War One. This isn’t the upper-crust’s way of life we tend to see in TV and movie presentations of the immediate pre-war era:

A month before the outbreak of war Henley Regatta opened in “brilliant fashion”, The Daily Telegraph reported, with record crowds and “perfect” weather. It presents an image of Edwardian Britain as we fondly imagine it to have been, before the sudden cloudburst of August 1914.

Of course, the reality was far different for the 99 per cent of people who did not own land, collect rents or vacation at Biarritz and Marienbad. Most Edwardians worked in dark, noisy factories, cut hay in fields, toiled down dirty and dangerous mines; had bones bent by rickets and lungs racked by tuberculosis. Life expectancy then was 49 years for a man and 53 years for a woman, compared with 79 and 82 years today. They lived in back to back tenements or jerry-built terraces, wore cloth caps or bonnets (rather than boaters, bowlers and toppers) and they had never taken a holiday — beyond a day trip to Brighton or Blackpool — in their entire lives.

The country was a seething mass of social tension and violent confrontations. It was a land torn and dislocated by the struggle of increasingly militant suffragettes; strikes in mills, mines and on the railways; the constitutional battle between Lords and Commons; and the threat of civil war in Ireland.

Readers of the Telegraph — as a glance at the archives will reveal — were far better informed about the true state of their nation and the world than our sugary sentimental view allows us. In a dramatic scoop, the paper had published an exclusive interview with Kaiser Wilhelm II in October 1908 in which the Kaiser had expressed alarmingly frank — and hostile — views about his mother’s native land (the Kaiser’s mama, Empress Victoria, was Queen Victoria’s eldest daughter). In this interview the Kaiser accused “you English” of being “mad, mad, mad as March hares” for fearing that the construction of Germany’s High Seas Fleet was aimed at challenging the Royal Navy’s command of the world’s oceans. Implausibly, he claimed that Germany’s real target was the rising sun of Japan.

H/T to Marian L. Tupy for the link.

July 22, 2014

23% of US children live in poverty … except that’s not actually true

Filed under: Government, USA — Tags: , , — Nicholas @ 07:48

In Forbes, Tim Worstall explains why the shocking headline rate of child poverty in the US is not correct (and that’s a good thing):

The annual Kids Count, from the Annie F. Casey Foundation, is out and many are reporting that it shows that 23% of American children are living in poverty. I’m afraid that this isn’t quite true and the mistaken assumption depends on one little intricate detail of how US poverty statistics are constructed. This isn’t a snarl at Kids Count, they report the numbers impartially, it’s the interpretation that some are putting on those numbers that is in error. For the reality is that, by the way that the US measures poverty, it does a pretty good job in alleviating child poverty. The real rate of children actually living in poverty, after all the aid they get to not live in poverty, is more like 2 or 3% of US children. Which is pretty good for government work.

[…]

However, this is not the same thing as stating that 23% of US children are living in poverty. For there’s a twist in the way that US poverty statistics are compiled.

Everyone else measures poverty as being below 60% of median equivalised household disposable income. This is a measure of relative poverty, how much less do you have than the average? The US uses a different measure, based upon historical accident really, which is a measure of absolute poverty. How may people have less than $x to live upon? There’s also a second difference. Everyone else measures poverty after the influence of the tax and the benefits system upon those incomes. The US measures only cash income (both market income and also cash from the government). It does not measure the influence of benefits that people receive in kind (ie, in goods or services) nor through the tax system. And the problem with this is that the major poverty alleviation schemes in the US are, in rough order, Medicaid, the EITC, SNAP (or food stamps) and then Section 8 housing vouchers. Three of which are goods or services in kind and the fourth comes through the tax system.

July 10, 2014

Argentina’s economic woes – tourist edition

Filed under: Americas, Economics — Tags: , , , , — Nicholas @ 10:56

How bad is the Argentinian economy right now? So bad that middle class Argentine tourists in Brazil eat at soup kitchens, according to the Wall Street Journal‘s Miriam Jordan:

The state-funded Citizen Restaurant in downtown Rio is accustomed to serving a balanced meal at an unbeatable price to about 5,000 poor residents of this city each day. During the World Cup, however, this cafeteria has been catering to another clientele as well: middle-class Argentines.

“We serve homeless people, drug addicts, blue-collar workers and retirees,” said Jose Barbosa, Rio de Janeiro state coordinator for food security. “This World Cup we have been welcoming Argentine soccer fans, too.”

With the value of the Argentine peso deeply eroded amid the country’s economic woes, many Argentines who have flocked here to root for their soccer team […] say they’re counting every Brazilian real they spend — and hunting for bargains. On Monday, dozens of Argentines lined up alongside Brazilians to buy lunch at the cafeteria, where a meal of black beans, white rice, salad and choice of meatballs or chicken sausage cost 1 real, or about 40 U.S. cents.

“Rio is very expensive — that’s why I am here,” said Fernando Castillo, a 24-year-old bartender from Buenos Aires. With gusto, he dug into his plate of food, which sat on a plastic-blue tray beside a cup of guava juice and a fresh orange for desert, both included in the price. “This is perfect,” he said, “especially at this price.”

“The generous portion keeps us filled all day,” added his cousin, Thomas Castillo.

[…]

To save on accommodations and flights, many Argentines drove to Brazil. In Rio, their campers and cars occupied prime beachfront parking spots until the city evicted them.

It then allowed them to park vehicles and pitch tents in a vast parking lot downtown that abuts the permanent bleachers where Rio’s samba schools perform during the annual carnival celebrations.

Word spread quickly at these parking lots that Citizen Restaurant, within walking distance of the Argentine encampment, offered good Brazilian fare at a bargain-basement price in a clean, safe environment. “It started with 10 of them one day, then 50 of them came and now we’re seeing about 200 Argentines each day,” said Ricardo Chaves, the eatery’s administrator.

June 25, 2014

QotD: The difference between money and wealth

Filed under: Economics, History, Quotations, USA — Tags: , , — Nicholas @ 00:01

… it is a mistake to use “money” and “wealth” as synonyms. Money is not wealth (though it is often a signifier of wealth). Wealth is a concept far greater, deeper, and more complex than mere money can encompass. Money is a tool; wealth is a state of being, an environment, a continuum in which we conduct our lives. When the left speaks of inequality in purely monetary terms, they are engaging in a puerile and futile kind of reductionism.

Consider a man with a wife and three teenage daughters, who lives in a house with only one bathroom. This man wouldn’t need a million dollars to feel wealthier; he’d just need a second bathroom. A chance to have a hot shower in the morning and have a clean space on the sink for his shaving gear. Wealth to this man is not the money it would take to build the extra bathroom; wealth is the time and comfort the new bathroom brings. Wealth is comfort he gains, his improved state of mind, the increased peace in his household, his improved quality of life. The marginal utility of the additional bathroom is great indeed (the utility of additional bathrooms would be less). The wealth of that additional bathroom is much greater, proportionally, than if this man and his family lived in a huge mansion with fifteen bathrooms. (In fact, the huge house might decrease his happiness due to the expense of upkeep and maintenance. Who knows?)

You don’t make a poor person wealthy by giving them money; history is full of lottery winners who ended up just as poor as when they started, and many’s the dissipated scion of a rich family who frittered away the family fortune. Wealthy people tend to have a lot of money because money is correlated with wealth (but does not cause it). Income, investments, assets — all can generate money for a wealthy person.

But wealth is more than just stuff. A loving spouse and healthy, happy children are treasures. Running a successful business can mean more than just the profits it generates; there is deep satisfaction in conducting a successful enterprise. A deep love of art or music can enhance and enrich a life. The company of good friends is truly priceless, and something that wise people learn to value more as time goes by.

Money gives access to some of those things, but all the money in the world can’t buy an appreciation of those things.

But to speak of wealth even in this broadened sense is misleading, for in America even “poor” people are wealthy beyond the dreams of people in many places in the world. And compared to people in most ages of the earth prior to the 20th century, there are no poor Americans. It’s amazing to consider how much better life for an average person is now compared to past times. We have food in amazing abundance and variety. Every house has a big-screen television, central heating and air-conditioning, and a refrigerator and range. Everybody has at least one car. Everybody has a cellular phone, and most people have a computer. Few of us work more than eight hours a day to afford all these things, leaving plenty of free time to relax. Medical technology has extended our lifespans, and made our tour upon the earth far more pleasant than in former times. We live healthier, more active, more stimulating lives than at any point in our history — wealthier lives.

Monty, “Wealth as an end and wealth as means to an end”, Ace of Spades HQ, 2014-06-24.

June 24, 2014

Fairtrade loses the moral high ground

Filed under: Africa, Business, Media — Tags: , — Nicholas @ 11:53

Following up on an article from earlier this month on Fairtrade’s business and ethical problems, Rossa Minogue talks to Professor Christopher Cramer who lead the investigation on which the report was based:

I ask Cramer if he was surprised by the study’s findings. ‘Yes and no’, he says. ‘[Fairtrade] perpetuated this fantasy of rural Africa being full of small, family farmers with roughly the same amount of land as each other. Unless there was an extraordinarily benign trickle-down effect, you wouldn’t really expect things to be much better [on Fairtrade farms]. But to find that the wages were worse and that most of the working conditions were worse, that did surprise me — and it’s a puzzle.’

The study’s findings were certainly disconcerting for Fairtrade’s supporters. They showed that farm labourers often make less on Fairtrade farms than non-Fairtrade farms, while many smallholders live in abject poverty. So, does Fairtrade benefit anyone in Third World agriculture? Cramer tells me that, during his four years of field research, his team realised that what Fairtrade defined as ‘smallholders’ covered everything from owners of farms of half a hectare to 130 hectares. The owners of bigger farms, he tells me, ‘are the ones who capture most of the direct benefits. They also tend to control the leadership of the cooperatives.’ So it seems that the larger farms, the ones that would presumably be doing alright anyway, are the only ones that reap the rewards of Fairtrade — a programme allegedly aimed at helping the poorest of the poor.

Cramer’s report is definitely a damning indictment of Fairtrade, which is why Fairtrade is doing all it can to smear its findings. When I wrote about Cramer’s findings a few weeks ago, I was informed that people who had tweeted my piece received direct tweets from Fairtrade UK, dismissing the article as sensationalist and untrue. Naturally, Cramer has borne the brunt of this hostility: ‘There was a legal threat made against us when [Fairtrade officials] saw the first draft of our press release’, he says. ‘They’ve also sent me hostile letters.’

[…]

In the West, people are often puzzled as to why rural Africans give up what is sometimes perceived to be a poor but idyllic existence in the countryside to live in the slums on the outskirts of cities. However, this puzzlement ignores the harsh realities of rural poverty. For many, moving to the city, where they can at least eke out a living, is the only rational choice. So what is the best path out of poverty for the farmhands of Africa?

‘That’s a big question. The focus must be on increasing agricultural productivity and that involves a lot of things, including infrastructure and investment. I don’t buy into the small-is-beautiful paradigm. My research shows that if you’re interested in driving up quality and enhancing productivity, as well as the lives and prospects of the poorest people, large-scale production has its advantages. Betting on the strong can also be betting on the weak.’

June 15, 2014

QotD: Shut up – it’s your right and (for some) your privilege

Filed under: Law, Liberty, Quotations, USA — Tags: , , , , — Nicholas @ 08:54

“Privilege” is a term that’s overused and misused in modern political discourse. Too often it’s used like a crass “shut up, I win” button in an argument. But “privilege” is sometimes an apt descriptive term of a human phenomenon: a person’s evaluation of a situation (like interaction with law enforcement) is colored by his or her own experiences, and those experiences are usually circumscribed by that person’s cultural identity and wealth. Any criminal defense attorney who has served affluent clients is familiar with this: such clients often conclude that they are a victim of a conspiracy, or of a “rogue cop” or “loose cannon prosecutor,” because their life experiences lead them to assume that the system can’t possibly treat all people the way they are being treated. By contrast, clients who have lived in poverty (or clients who are African-American or Latino) tend to recognize outrageous conduct in their case as the system working the way the system typically works — business as usual. In my post about the prosecution and death of Aaron Swartz, I argued that Swartz’ community showed such privilege in its reaction to his prosecution, seeing some sort of singular conspiracy where others saw the banal grinding of the system’s unfeeling wheels.

My advice to shut up is colored, in part, by privilege. I was reminded of this yesterday when Los Angeles County Sheriff’s Deputies searched Justin Bieber’s house. I praised Bieber for shutting up and declining to talk to the cops, and joked that criminal defense attorneys could shame clients into better practices by asking why they aren’t smarter than Justin Bieber.

But Justin Bieber and I — and many of my clients — share a crucial quality: we’re affluent and fortunate. This privilege makes us better able to endure the potential downside risks of shutting up. If we get arrested on a petty or bogus charge by a pissed-off cop, we can make bail. We won’t spend weeks or months in custody on that bogus charge because we can’t scrape together a few thousand dollars. Maybe we’ll spend the weekend in jail, because cops love to arrest you Friday afternoon, but we’ll get out in a few days at most, and in the meantime we won’t lose our jobs. Because we have families and support systems, if we do get thrown in jail on a bogus job by an angry cop, the Department of Child and Family Services won’t take away our children, plunging us into another broken system we have neither the money nor the knowledge to navigate. If the cops tow or impound our car, we can afford to pay the few hundred to few thousand dollars to get it out, and we won’t lose our jobs for lack of transportation. Even if we do lose our jobs because of a bogus and retaliatory arrest, we have savings, and families with savings, and we won’t swiftly lose our homes. If the police choose to retaliate against our silence with petty tickets and infractions and fines rather than arrest, we can fight them or absorb them.

That’s a privilege. Poor people don’t have it. Poor people live on the razor’s edge, and a bogus retaliatory arrest can destroy them. Retaliatory and capricious enforcement of petty crimes and infractions can destroy them financially. Police wield disproportionate power over them, and the criminal justice system and its agendas (like the War on Drugs) disproportionately impacts them. Police are more likely to use force against poor people and for the most part can do so without any significant risk of discipline.

When you and I weigh the downside risks of shutting up against the downside risks of talking, our downside risks are milder, and can be endured. People without our resources face a must starker choice: talk, and incriminate themselves, or shut up, and face an array of consequences they may not be equipped to survive.

Ken White, “The Privilege To Shut Up”, Popehat, 2014-01-15

June 10, 2014

The Catholic case against libertarianism

Filed under: Economics, Liberty, Religion — Tags: , , , , — Nicholas @ 08:14

First, let’s talk about the evils of the free market and how God wants to abolish free exchange of goods for our spiritual and moral welfare, shall we?

Something strange happened in Washington last week: A panel of Catholic intellectuals and clergy, led by His Eminence Oscar Andrés Maradiaga, was convened to denounce a political philosophy under the headline “Erroneous Autonomy: The Catholic Case against Libertarianism.” The conference was mainly about free-market economics rather than libertarianism per se, and it was an excellent reminder that the hierarchy of the Church has no special grace to pronounce upon matters of specific economic organization. The best that can be said of the clergy’s corporate approach to economic thinking is that it is intellectually incoherent, which is lucky inasmuch as the depths of its illiteracy become more dramatic and destructive as it approaches coherence.

[…]

The increasingly global and specialized division of labor and the resulting chains of production — i.e., modern capitalism, the unprecedented worldwide project of voluntary human cooperation that is the unique defining feature of our time — is what cut the global poverty rate in half in 20 years. It was not Buddhist mindfulness or Catholic homilies that did that. In the 200,000-year history of Homo sapiens, neither of those great religious traditions, nor anything else that human beings ever came up with, made a dent in the poverty rate. Capitalism did. One of the great ironies of our times is that so many of the descendents of the old Catholic immigrant working class have found themselves attracted to an American Buddhism that, with its love of ornate titles, its costumes, its fascination with apostolic succession, and its increasingly coddled professional clergy, is a 21st-century expression of Buddhism apparently committed to transforming itself — plus ça change! — into 15th-century Catholicism. Perhaps it should not be entirely surprising that it has embraced the same intellectual errors.

Cardinal Rodríguez Maradiaga and likeminded thinkers, stuck as they are in the hopelessly 19th-century distributist model of economic analysis, apparently are incapable of thinking through the implications of their own dogma. The question of how certain goods are “distributed” in society is a second-order question at best; by definition prior to it is the question of whether there is anything to distribute. To put it in Christian terms, all of the great givers in Scripture — the Good Samaritan, the widow with her mite, Joseph of Arimathea — had something to give. If the Good Samaritan had been the Poor Samaritan, with no resources to dedicate to the stranger’s care, then the poor waylaid traveler would have been out of luck. All the good intentions that we may muster are not half so useful to a hungry person as a loaf of bread.

Those who put distribution at the top of their list of priorities both make the error of assuming the existence of some exogenous agency that oversees distribution (that being the Distribution Fairy) and entirely ignore the vital question of what gets produced and by whom. Poverty is the direct by-product of low levels of production; the United States and Singapore are fat and happy with $53,101 and $64,584 in per capita economic output, respectively; Zimbabwe, which endured the services of a government very much interested in the redistribution of capital, gets to divide up $788 per person per year, meaning that under circumstances of perfect mathematical equality life would still be miserable for everybody. Sweden can carve up its per capita pie however it likes, but it’s still going to be 22.5 percent smaller than the U.S. pie and less than two-thirds the size of Singapore’s tasty pastry. You cannot redistribute what you don’t have — and that holds true not only for countries but, finally, for the planet and the species, which of course is what globalization is all about. That men of the cloth, of all people, should be blind to what is really happening right now on the global economic scale is remarkable, ironic, and sad.

June 3, 2014

“Fairtrade [is] a Western vanity project that impoverishes those it’s meant to benefit”

Filed under: Africa, Business, Media — Tags: , , , , , — Nicholas @ 00:01

Rossa Minogue on the image and reality of Fairtrade:

The world’s ethical shoppers are still reeling this week after a report revealed that Fairtrade programmes are of little benefit to those working on farms in the developing world.

The government-funded study published by SOAS, a part of the University of London, was conducted over a four-year period in Uganda and Ethiopia. It showed that labourers on farms that are part of Fairtrade programmes are usually paid less and are subject to worse working conditions than their peers on large commercial farms, and even other small farms that are not part of Fairtrade programmes. Professor Christopher Cramer, the study’s main author, said: ‘Fairtrade has not been an effective mechanism for improving the lives of wage workers, the poorest rural people.’

The study also found that the ‘social premium’ incorporated into the price of Fairtrade products, which is meant to be used to improve infrastructure in poor communities, is often misspent. In one instance, researchers found that modern toilets built with this premium were in fact for the use of senior farm managers only. The report also documented examples of health clinics and schools set up with social-premium funds that charged fees that were too high for the labourers they were intended to benefit.

Of course, nobody needed the clever people at SOAS to tell us all this. From its very inception, the concept of Fairtrade was rooted in maintaining low ‘sustainable’ horizons for the poor by those who consider people in Africa and other parts of the Third World to be intrinsically different to the rest of us. The movement did not originate with the poor farmers of the developing world, but with Western NGOs and their army of gap-year do-gooders intent on imposing their reactionary ‘small is beautiful’ values on an Africa desperate for change.

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