Archive for the ‘Charity’ Category

At the risk of oversimplifying, there are two types of statists.

The first type is generally insincere and simply views bigger government and increased dependency as a strategy to obtain and preserve political power. Most inside-the-beltway leftists in Washington are in this category.

The second type genuinely cares about the less fortunate but makes the mistake of thinking that good intentions somehow lead to good results. You could call these people the Pope Francis leftists.

As you might imagine, there’s very little hope of persuading the first category of statists. You could show them all the data and evidence in the world, for instance, that a flat tax would boost prosperity, and they’ll simply shrug and tell you to jump in a lake because genuine tax reform would reduce the power and influence of Washington’s political elite.

But the second group of statists should be persuadable. That’s why I share so many comparisons of nations with smaller government and freer markets versus countries with bigger government and more intervention. I want open-minded folks on the other side to see how good policy leads to better economic performance, particularly since the poor will be big beneficiaries. That should be compelling, especially when combined with the data on how the welfare state simply traps poor people in government dependency.

I then try to augment that macro data with specific micro examples of how policies that seem compassionate actually backfire.

Is it compassionate, for instance, to increase the minimum wage if that means low-skilled workers can’t get jobs?

Alternatively, is it compassionate to extend unemployment benefits if that means people are less likely to get jobs?

Anyhow, all this discussion is simply to provide some context for a very good piece on the pitfalls of John Kasich and so-called compassionate conservatism.

In her Wall Street Journal column, Kimberly Strassel takes aim at Governor Kasich and other folks who think big government is somehow good for the poor.

…here’s one way to divide the arena: small-government reformers and big-government surrenderists. That debate is at the center of a bigger GOP meditation on how to better appeal to the poor and minorities. Mr. Kasich has emerged as the most eloquent and compelling spokesperson for the go-big camp. …his theme: that it’s OK to be “conservative” and have a “big heart.” It’s his way of excusing his decision to embrace ObamaCare’s expansion of Medicaid, putting that welfare program on track to consume 50% of Ohio’s operating budget in 2016.

Needless to say, Ms. Strassel doesn’t think Kasich’s embrace of Obamacare demonstrates a big heart.

Instead, it’s just the latest manifestation of the big-government conservatism that failed so badly last decade.

This is “compassionate conservatism”—or at least a bastardized version of it. George W. Bush first used that phrase to explain how conservative policies made everyone better off. But it would later turn into a license for Republicans to embrace government for their own conservative ends. Giant new education spending was needed to create school “accountability”; a new Medicare drug entitlement would create health-care “competition;” green-energy subsidies bolstered “national security.” …The philosophy got a revamp in the past year in the self-styled “reformicon” movement. …it’s Compassionate Conservatism 2.0.

And what happens when you cede the moral high ground and agree with the statists that bigger government somehow benefits people?

…underpinning the entire compassionate-conservative movement is a glum surrender to the entitlement state. The left has won; all that remains is to argue that conservative big-government is better managed than liberal big-government.

Ms. Strassel is much more impressed with what she calls the “small-government reformers.”

…there is another approach to compassion. It’s the version made popular by Jack Kemp, and embraced by House Ways and Means Chairman Paul Ryan—and a growing list of converts. It holds that there is nothing whatsoever compassionate about consigning low-income Americans to a government health-care system that delivers second-class outcomes. There’s nothing compassionate about making today’s working poor pay into a bleeding Social Security system… There’s nothing compassionate about propping up a federally run poverty industrial-complex that spends most of its money on itself. The Kemp-Ryan view knows that government is the problem, not the answer—not in any form. The answer is to devolve the money and power back to states and communities…spreading the gospel of smaller government, in the name of helping those most vulnerable.

Amen. Kemp was a hero in the battle to lower confiscatory tax rates, leading to a victory that was enormously successful in the 1980s. And Ryan deserves endless praise for his efforts to reform entitlement programs such as Medicare and Medicaid.

This is the approach that offers the most hope to the less fortunate because it enables growth and job creation.

Big-government conservatism, by contrast, undermines economic dynamism by acquiescing to the idea of an ever-growing state.

By the way, none of this suggests that John Kasich is universally bad on policy or that Paul Ryan is universally good. Kasich, after all, was Chairman of the House Budget Committee in the 1990s when genuine spending restraint led to a balanced budget. And Paul Ryan’s otherwise good ideas on tax reform have been marred by occasional flirtation with a value-added tax.

What ultimately matters is whether a politician is – on balance – pushing to shrink the size and power of the federal government. So ultimately it’s an imperfect process of deciding which lawmaker is 75 percent good and which one is 65 percent good (or, in too many cases, comparing one who is 10 percent good with one who is 5 percent good).

P.S. If “Libertarian Jesus” is correct and genuine compassion is defined as helping others with your own money, then Americans have much bigger hearts than their European counterparts.

P.P.S. Speaking of compassion, here’s an anti-Obama joke featuring some Pennsylvania cops.

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When I’m in Europe giving speeches and participating in conferences, it’s quite common that folks on the left will attempt to discredit my views by asserting that Americans are selfish and greedy.

Since I’m generally sympathetic to Ayn Rand’s writings, I don’t see anything wrong with people striving to make themselves better off. Moreover, Adam Smith noted back in 1776 that the desire to earn more money leads other people to make our lives better. One of his most famous observations is that, “It is not from the benevolence of the butcher, the brewer, or the baker, that we can expect our dinner, but from their regard to their own interest.”

But, for the sake of argument, let’s accept the premise of my statist friends in Europe and simply look at whether their assertion is correct. Are Americans more selfish and greedy that their counterparts across the ocean?

The most obvious way of testing this proposition is to compare rates and levels of voluntary charity. Selfish and greedy people presumably will cling to their money while compassionate and socially conscious people will share their blessings with others.

So how does the United State compare to other nations? Well, I’m not a big fan of the Organization for Economic Cooperation and Development, but the bureaucrats in Paris are quite good at collecting statistics from member nations and producing apples-to-apples comparisons.

And if you look at rates of “voluntary private social expenditure” among nations, it turns out that Americans are easily the most generous people in the developed world.

Voluntary Social Expenditure in OECD Nations

Wow, people in the United States are so generous that their voluntary giving amounts to 10.2 percent of gross domestic product. The only other nations that even crack 5 percent of GDP are the Netherlands, Canada, and the United Kingdom.

Most of the supposedly compassionate welfare states have dismal levels of charitable giving. Voluntary social expenditure in major European nations such as France, Germany, Italy, and Spain averages less than 2 percent of GDP.

It’s also worth noting that these numbers actually understate the charity gap between Americans and folks from other nations. Economic output in the United States is about 30 percent higher than it is in the rest of the developed world, so charitable giving by Americans actually represents a much bigger slice of a much bigger pie.

Statists might respond by asserting that Europeans express their generosity through the public sector. I reject that comparison since – as I explained when criticizing a Michael Gerson column – it’s wrong to equate government coercion with private charity.

But even if you have the European mindset that government should be a vehicle for redistribution, the OECD numbers show that there’s not much difference between the United States and other developed nations. According to the OECD data, government redistributes 20 percent of GDP in America compared to an average of 21.9 percent of GDP for all OECD nations. And since there’s strong evidence that government redistribution undermines progress in the fight against poverty, I actually wish there was a big gap between America and other nations!

And don’t forget, by the way, that 20 percent of U.S. GDP is a lot more money than 21.9 percent of GDP in other nations, so government in the United States spends more on redistribution, on average, than other OECD governments. Indeed, I’ve already shared healthcare numbers making that same point.

P.S. It’s also worth sharing the data showing that proponents of small government in the United States are far more generous than those who favor a big welfare state.

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Back in 2010, I posted some fascinating (at least to me) data on the underlying differences between conservatives, liberals, and libertarians.

That same year, I also wrote about whether evolutionary history helps explain why some people are leftists.

Let’s now reexamine the difference between those on the right and those on the left, based on some data in a fascinating report from the Chronicle of Philanthropy on the generosity of 359 cities in America.

It turns out that “red state” America is far more generous than “blue state” America. I was thinking of writing about the implications of this new research, but I found out that somebody else beat me to it – and said everything I could possibly say.

Here’s some of what Jeff Jacoby wrote about this study.

According to the Chronicle, the most generous city in America is Provo, Utah, where residents typically give away 13.9 percent of their discretionary income. Boston, by contrast, ranks No. 358: In New England’s leading city, the median household donates just 2.9 percent of its income to charity. Provo’s generosity is typical for its region. Of the 10 most generous cities in America, according to the Chronicle’s calculations, six are in Utah and Idaho. Boston’s tight-fistedness is typical too: Of the 10 stingy cities at the bottom of the list, eight are in New England — including Springfield (No. 363) and Worcester (No. 364). What’s the matter with Massachusetts? How can residents of the bluest state , whose political and cultural leaders make much of their compassion and frequently remind the affluent that we’re all in this together , be so lacking in personal generosity? And why would charitable giving be so outstanding in places as conservative as Utah and Idaho? The question is built on a fallacy.Liberals, popular stereotypes notwithstanding, are not more generous and compassionate than conservatives. To an outsider it might seem plausible that Americans whose political rhetoric emphasizes “fairness” and “social justice” would be more charitably inclined than those who stress economic liberty and individual autonomy. But reams of evidence contradict that presumption, as Syracuse University professor Arthur Brooks demonstrated in his landmark 2006 book, Who Really Cares .

Jacoby summarizes the entire discussion in these two sentences.

…this doesn’t mean that there aren’t generous philanthropists in New England. It doesn’t mean selfishness is unknown on the right. What it does mean is that where people are encouraged to think that solving society’s ills is primarily a job for government, charity tends to evaporate.

In other words, statists pretend to be compassionate. And they compensate for their stinginess by wanting to squander our money.

The fact that government programs generally hurt the people they’re designed to help seems irrelevant to them. It’s all about good intentions. But only good intentions with someone else’s cash.

P.S. If you want a less serious look at the differences between various groups, here’s a funny post on the differences between liberals, conservatives, and Texans.

P.P.S. Sometimes people have irreconcilable differences, which is why this post about the right and left getting a divorce is amusing.

P.P.P.S. We already know, from this clever video, that rich left-wingers like the idea of higher taxes for everybody else, but conveniently say no when they’re asked to pay more.

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