Category Archives: Current Events

Steve Jobs was a Buddhist: What is Buddhism?

Apple CEO Steve Jobs  (AP Photo/Paul Sakuma)

(If you want to check out other posts I have done about about Steve Jobs: Some say Steve Jobs was an atheist , Steve Jobs and Adoption , What is the eternal impact of Steve Jobs’ life? ,Steve Jobs versus President Obama: Who created more jobs? ,Steve Jobs’ view of death and what the Bible has to say about it ,8 things you might not know about Steve Jobs ,Steve Jobs was a Buddhist: What is Buddhism? ,Did Steve Jobs help people even though he did not give away a lot of money? )

 
Steve Jobs passed away on October 5, 2011. I personally am very grateful to him for helping the world so much with his ideas and I have written about that before. Dan Mitchell of the Cato Institute noted:

He’s built a $360 billion company. That presumably means at least $352 billion of wealth in the hands of people other than himself. And that doesn’t even begin to count how consumers have benefited from his products, the jobs he has created, and the indirect positive impact of his company on suppliers and retailers.

According to published reports Steve Jobs was a Buddhist and he had a very interesting quote on death which I discussed in another post. Back in 1979 I saw the film series HOW SHOULD WE THEN LIVE? by Francis Schaeffer and I also read the book.

Francis Schaeffer observes in How Should We Then Live: The Rise And Decline Of Western Thought And Culturethat evolutionary theory in the form of humanistic thought has reduced everything to the level of a component in a great universal machine.

Of this outlook, Schaeffer writes, “In one form of reductionism, man is explained by reducing him to the smallest particles which make up his body. Man is seen as being only the molecule or the energy particle, more complex but not intrinsically different (164).”

To prove such an observation is more than Evangelical hyperbole, Schaeffer quotes Harvard University Chemistry Professor George Wald who said, “Four hundred years ago there was a collection of molecules named Shakespeare which produced Hamlet(164).”

In order to remain consistent, those holding to such a perspective have to concede such a masterpiece is not so much the result of creative insight as it is a fortuitous case of gas. And to any naturalist offended by my remarks, they cannot very well complain about them since by their own worldview, I had no control over what I wrote.

(Above remarks taken from blog of  Frederick Meekins)

After I read that I had the opportunity three times in the 1990’s to correspond with Dr. George Wald of Harvard. In one of his letters he suggested that Atheism and Buddhism are the same thing. I tend to agree. Below is a futher discussion of Buddhism.

Buddhism Print E-mail

Patrick Zukeran Written by Pa

For centuries, Buddhism has been the dominant religion of the Eastern world. With the rise of the Asian population in the United States, Buddhism has had a tremendous impact on this country as well. Presently, there are an estimated 300 million Buddhists in the world and 500 thousand in the United States.{1} It remains the dominant religion in the state of Hawaii, and many prominent Americans have accepted this religion, including the former governor of California, Jerry Brown,{2} Tina Turner, Phil Jackson (coach of the Los Angeles Lakers), Richard Gere, and Steven Seagal. The Dalai Lama has become a prominent spiritual figure for many throughout the world.

The Origin of Buddhism

Buddhism began as an offspring of Hinduism in the country of India. The founder was Siddhartha Gautama. It is not easy to give an accurate historical account of the life of Gautama since no biography was recorded until five hundred years after his death. Today, much of his life story is clouded in myths and legends which arose after his death. Even the best historians of our day have several different–and even contradictory–accounts of Gautama’s life.

Siddhartha Gautama was born in approximately 560 B.C. in northern India. His father, Suddhodana, was the ruler over a district near the Himalayas which is today the country of Nepal. Suddhodana sheltered his son from the outside world and confined him to the palace where he surrounded Gautama with pleasures and wealth.

Despite his father’s efforts, however, Gautama one day saw the darker side of life on a trip he took outside the palace walls. He saw four things that forever changed his life: an old man, a sick man, a dead man, and an ascetic. Deeply distressed by the suffering he saw, he decided to leave the luxury of palace life and begin a quest to find the answer to the problem of pain and human suffering.

Gautama left his family and traveled the country seeking wisdom. He studied the Hindu scriptures under Brahmin priests, but became disillusioned with the teachings of Hinduism. He then devoted himself to a life of extreme asceticism in the jungle. He soon concluded, however, that asceticism did not lead to peace and self-realization but merely weakened the mind and body.

Gautama eventually turned to a life of meditation. While deep in meditation under a fig tree known as the Bohdi tree (meaning, “tree of wisdom”), Gautama experienced the highest degree of God-consciousness called nirvana. Gautama then became known as Buddha, the “enlightened one.” He believed he had found the answers to the questions of pain and suffering. His message now needed to be proclaimed to the whole world.

As he began his teaching ministry, he gained a quick audience with the people of India since many had become disillusioned with Hinduism. By the time of his death at age 80, Buddhism had become a major force in India.

Expansion and Development of Buddhism

Buddhism remained mostly in India for three centuries until King Ashoka, who ruled India from 274-232 B.C., converted to Buddhism. Ashoka sent missionaries throughout the world, and Buddhism spread to all of Asia.

Even before its expansion, two distinct branches developed, a conservative and a liberal school of thought. The conservative school is labeled Theravada, and it became the dominant form of Buddhism in Southeast Asia. Thus, it is also called Southern Buddhism. Southern Buddhism has remained closer to the original form of Buddhism. This school follows the Pali Canon of scripture, which, although written centuries after Gautamas death, contains the most accurate recording of his teachings.

The liberal school is Mahayana Buddhism, which traveled to the north into China, Japan, Korea, and Tibet, and is also called Northern Buddhism. As it spread north, it adopted and incorporated beliefs and practices from the local religions of the land. The two branches of Buddhism are so different they appear to be two different religions rather than two branches of the same tree. Here are a few differences.

Theravada Buddhism sees Buddha as a man. Gautama never claimed to be deity, but rather a “way shower.” Mahayana Buddhism, however, worships Buddha as a manifestation of the divine Buddha essence. Since Gautama, many other manifestations or bodhisattvas have appeared. An example is Tibetan Buddhism, which worships the spiritual leader the Dalai Lama as a bodhisattva.

Theravada adheres to the Pali Canon and Buddhas earliest teachings. Since Mahayana believes there have been many manifestations, this branch incorporates many other texts written by the bodhisattvas as part of their canon.

Theravada teaches that each person must attain salvation through their own effort, and this requires one to relinquish earthly desires and live a monastic life. Therefore, only those few who have chosen this lifestyle will attain nirvana. Mahayana teaches that salvation comes through the grace of the bodhisattvas and so many may attain salvation.

Divine beings do not have a place in Theravada. The primary focus is on the individual attaining enlightenment, and a divine being, or speculations of such, only hinders the process. Therefore, several sects of this branch are atheistic. Mahayana, on the other hand, has many diverse views of God since this branch is inclusive, and has adopted the beliefs and practices of various religions. Many schools are pantheistic in their worldview while others are animistic. Buddha is worshipped as a divine being. Some schools pay homage to a particular bodhisattva sent to their people. Other schools have a mixture of gods whom they worship. For example, Japanese Buddhism blended with Shintoism and includes worship of the Shinto gods with the teachings and worship of Buddha.

When speaking with a Buddhist, it is important to understand what branch of Buddhism they are talking about. The two branches are dramatically different. Even within Mahayana Buddhism, the sects can be as different as Theravada is to Mahayana.

The Way of Salvation

The main question Gautama, the founder of Buddhism, sought to answer was, “Why is there pain and suffering?” His belief in reincarnation (the belief that after death one returns to earthly life in a higher or lower form of life according to his good or bad deeds) prompted a second question that also needed to be answered: “How does one break this rebirth cycle?” The basic teachings of Buddhism, therefore, focus on what Gautama believed to be the answer to these questions. These basic tenets are found in the Four Noble Truths and in the Eight-fold Path. Let us begin with the Four Noble Truths.

The First Noble Truth is that there is pain and suffering in the world. Gautama realized that pain and suffering are omnipresent in all of nature and human life. To exist means to encounter suffering. Birth is painful and so is death. Sickness and old age are painful. Throughout life, all living things encounter suffering.

The Second Noble Truth relates to the cause of suffering. Gautama believed the root cause of suffering is desire. It is the craving for wealth, happiness, and other forms of selfish enjoyment which cause suffering. These cravings can never be satisfied for they are rooted in ignorance.

The Third Noble Truth is the end of all suffering. Suffering will cease when a person can rid himself of all desires.

The Fourth Noble Truth is the extinguishing of all desire by following the Eight-fold path. “The Eight-fold path is a system of therapy designed to develop habits which will release people from the restrictions caused by ignorance and craving.”{3}

Here are the eight steps in following the Eight-fold path. The first is the Right View. One must accept the Four Noble Truths. Step two is the Right Resolve. One must renounce all desires and any thoughts like lust, bitterness, and cruelty, and must harm no living creature. Step three is the Right Speech. One must speak only truth. There can be no lying, slander, or vain talk. Step four is the Right Behavior. One must abstain from sexual immorality, stealing, and all killing.

Step five is the Right Occupation. One must work in an occupation that benefits others and harms no one. Step six is the Right Effort. One must seek to eliminate any evil qualities within and prevent any new ones from arising. One should seek to attain good and moral qualities and develop those already possessed. Seek to grow in maturity and perfection until universal love is attained. Step seven is the Right Contemplation. One must be observant, contemplative, and free of desire and sorrow. The eighth is the Right Meditation. After freeing oneself of all desires and evil, a person must concentrate his efforts in meditation so that he can overcome any sensation of pleasure or pain and enter a state of transcending consciousness and attain a state of perfection. Buddhists believe that through self-effort one can attain the eternal state of nirvana.

In Buddhism, ones path to nirvana relies on the effort and discipline of the individual. By contrast, Jesus taught our goal is not a state of non-conscious being, but an eternal relationship with God. There is nothing one can do to earn a right relationship with God. Instead, we must receive His gift of grace, the sacrificial death of His Son, Jesus Christ and this restores our relationship with our creator.

Karma, Samsara, and Nirvana

Three important concepts in understanding Buddhism are karma, samsara, and nirvana.

Karmarefers to the law of cause and effect in a person’s life, reaping what one has sown. Buddhists believe that every person must go through a process of birth and rebirth until he reaches the state of nirvana in which he breaks this cycle. According to the law of karma, “You are what you are and do what you do, as a result of what you were and did in a previous incarnation, which in turn was the inevitable outcome of what you were and did in still earlier incarnations.”{4} For a Buddhist, what one will be in the next life depends on one’s actions in this present life. Unlike Hindus, Buddha believed that a person can break the rebirth cycle no matter what class he is born into.

The second key concept is the law of samsara or transmigration. This is one of the most perplexing and difficult concepts in Buddhism to understand. The law of Samsara holds that everything is in a birth and rebirth cycle. Buddha taught that people do not have individual souls. The existence of an individual self or ego is an illusion. There is no eternal substance of a person, which goes through the rebirth cycle. What is it then that goes through the cycle if not the individual soul? What goes through the rebirth cycle is only a set of feelings, impressions, present moments, and the karma that is passed on. “In other words, as one process leads to another, … so one’s human personality in one existence is the direct cause of the type of individuality which appears in the next.”{5} The new individual in the next life will not be exactly the same person, but there will be several similarities. Just how close in identity they will be is not known.

The third key concept is nirvana. The term means “the blowing out” of existence. Nirvana is very different from the Christian concept of heaven. Nirvana is not a place like heaven, but rather an eternal state of being. It is the state in which the law of karma and the rebirth cycle come to an end. It is the end of suffering; a state where there are no desires and the individual consciousness comes to an end. Although to our Western minds this may sound like annihilation, Buddhists would object to such a notion. Gautama never gave an exact description of nirvana, but his closest reply was this. “There is disciples, a condition, where there is neither earth nor water, neither air nor light, neither limitless space, nor limitless time, neither any kind of being, neither ideation nor non-ideation, neither this world nor that world. There is neither arising nor passing-away, nor dying, neither cause nor effect, neither change nor standstill.”{6}

In contrast to the idea of reincarnation, the Bible teaches in Hebrews 9:27 that “man is destined to die once and after that to face judgment.” A major diverging point between Buddhism and Christianity is that the Bible refutes the idea of reincarnation. The Bible also teaches that in the eternal state, we are fully conscious and glorified individuals whose relationship with God comes to its perfect maturity.

Jesus and Gautama

There is much I admire in the life and teachings of Gautama. Being raised in the Japanese Buddhist culture, I appreciate the ethical teachings, the arts, and architecture influenced by Buddhism. As I studied the life and teachings of Gautama and of Jesus, I discovered some dramatic differences.

First, Buddha did not claim to be divine. Theravada remains true to his teaching that he was just a man. The idea that he was divine was developed in Mahayana Buddhism 700 years after his death. Furthermore, Northern Buddhism teaches that there have been other manifestations of the Buddha or bodhisattvas and some believe Jesus to be one as well. However, Jesus did not claim to be one of many manifestations of God; He claimed to be the one and only Son of God. This teaching was not the creation of his followers but a principle He taught from the beginning of His ministry. In fact, the salvation He preached was dependent on understanding His divine nature.

Second, Buddha claimed to be a way shower. He showed the way to nirvana, but it was up to each follower to find his or her own path. Christ did not come to show the way; He claimed to be the way. While Buddhism teaches that salvation comes through Buddhas teachings, Christ taught salvation is found in Him. When Jesus said, “I am the way the truth and the life” (John 14:6), He was saying He alone is the one who can give eternal life, for He is the source of truth and life. Not only did He make the way possible, He promises to forever be with and empower all who follow Him to live the life that pleases God.

Third, Buddha taught that the way to eliminate suffering and attain enlightenment was to eliminate all desire. Christ taught that one should not eliminate all desire but that one must have the right desire. He stated, “Blessed are they who hunger and thirst for righteousness for they shall be satisfied.” Christ taught that we should desire to know Him above all other wants.

Fourth, Buddha performed no miracles in his lifetime. Christ affirmed His claims to be divine through the miracles He performed. He demonstrated authority over every realm of creation: the spiritual realm, nature, sickness, and death. These miracles confirmed the claims that He was more than a good teacher, but God incarnate.

Finally, Buddha is buried in a grave in Kusinara at the foot of the Himalaya Mountains. Christ, however, is alive. He alone conquered sin and the grave. His death paid the price for sin, and His resurrection makes it possible for all people to enter into a personal and eternal relationship with God.

After a comparative study, I came to realize Buddha was a great teacher who lived a noble life, but Christ is the unique revelation of God who is to be worshipped as our eternal Lord and Savior.

Notes

1. Isamu Yamamoto, Buddhism, Taoism and Other Eastern Religions, (Grand Rapids, Mich.: Zondervan Publishing, 1998), p. 23.

2. Walter Martin, Kingdom of the Cults (Minneapolis: Bethany House 1985), p. 261.

3. Kenneth Boa, Cults, World Religions, and the Occult (Wheaton, Ill.: Victor Books, (1977) p. 35

4. Davis Taylor and Clark Offner, The World’s Religions, Norman Anderson, ed. (Downers Grove, Ill.: InterVarsity, 1975), p. 174.

5. John Noss, Man’s Religions (New York: Macmillan Company, 1968), p. 182.

6. Taylor and Offner, The World’s Religions, p. 177.

©1994 Probe Ministries.


About the Author

Patrick ZukeranPatrick Zukeran is a Hawaii-based research associate with Probe Ministries. He has a B.A. in Religion from Point Loma Nazarene University, a Th.M. from Dallas Theological Seminary, and a D.Min. from Southern Evangelical Seminary. He is an author, radio talk show host, and a national and international speaker on apologetics, cults, world religions, Bible, theology, and current issues. His nationally syndicated radio talk show “Evidence and Answers” is broadcast on the KTLW Network (covering the West Coast), through all of Asia (through World Harvest Radio), and on the web at evidenceandanswers.org. Before joining Probe, Pat served for twelve years as an Associate Pastor. He can be reached at pzukeran@probe.org.

Earlier I mentioned another post I wrote about Steve Jobs, but I mentioned Francis Schaeffer above and here are some links to posts about his film series.

Francis Schaeffer’s “How should we then live?” Video and outline of episode 10 “Final Choices”

E P I S O D E 1 0 How Should We Then Live 10#1 FINAL CHOICES I. Authoritarianism the Only Humanistic Social Option One man or an elite giving authoritative arbitrary absolutes. A. Society is sole absolute in absence of other absolutes. B. But society has to be led by an elite: John Kenneth […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 9 “The Age of Personal Peace and Affluence”

E P I S O D E 9 How Should We Then Live 9#1 T h e Age of Personal Peace and Afflunce I. By the Early 1960s People Were Bombarded From Every Side by Modern Man’s Humanistic Thought II. Modern Form of Humanistic Thought Leads to Pessimism Regarding a Meaning for Life and for Fixed […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 8 “The Age of Fragmentation”

E P I S O D E 8 How Should We Then Live 8#1 I saw this film series in 1979 and it had a major impact on me. T h e Age of FRAGMENTATION I. Art As a Vehicle Of Modern Thought A. Impressionism (Monet, Renoir, Pissarro, Sisley, Degas) and Post-Impressionism (Cézanne, Van Gogh, Gauguin, […]

Francis Schaeffer’s “How should we then live?” Video and outline of episode 7 “The Age of Non-Reason”

E P I S O D E 7 How Should We Then Live 7#1 I am thrilled to get this film series with you. I saw it first in 1979 and it had such a big impact on me. Today’s episode is where we see modern humanist man act on his belief that we live […]

 

Milton Friedman was right about Obama’s misguided view of stimulus many years ago

Milton Friedman was right about Obama’s misguided view of stimulus many years ago

Milton Friedman knew it a long time ago that President Obama was wrong when he blamed the ATM for unemployment. Take a look at this video clip below. He exposes the falacy that ignoring the principle of efficency will help create jobs. This is the misguided view that Obama has that led him to the failed stimulus two years ago too.

Sen. Ron Johnson (R-WI) spent 31 years in manufacturing before his election to Congress last November. He’s not letting that experience go to waste.

Johnson is out with a new video this morning to coincide with President Obama’s visit to Carnegie Mellon University in Pittsburgh to promote manufacturing. He criticizes Obama’s recent comments blaming inventions like the ATM for unemployment.

“This is a depressing display of economic ignorance,” Johnson says. He adds: “Technological innovations create jobs. They drive our economy forward, by helping workers be more productive. That raises everyone’s living standards.”

Johnson recounts a story of Milton Friedman’s visit to China. Upon seeing Chinese workers digging with shovels, he asked, “Why not use bulldozers?”. Freidman was told that workers using shovels would create more jobs. He replied, “Then why not use spoons, instead of shovels?”

Heritage is currently seeking stories from business owners who have encountered government regulations that harm business. If you would like to share your story, please send an email to scribe@heritage.org

99th anniversary of Milton Friedman’s birth (Part 13) Milton Friedman on freedom of choice

Next year is the 100th anniversary of Milton Friedman’s birth and I get on the computer today and read an article published today on the National Review Online and it quotes Milton Friedman.

I wish we would listen to Milton Friedman more often. This article below quotes Friedman and today I am starting a series on what Friedman had to say about the voucher system for our schools. Parents should be allowed to choose what school their children can go to.

Paternalism and Principle

by Michael D. Tanner

Michael Tanner is a senior fellow at the Cato Institute and coauthor of Leviathan on the Right: How Big-Government Conservatism Brought Down the Republican Revolution.

Added to cato.org on October 5, 2011

This article appeared on National Review (Online) on October 5, 20

If you are looking for a single statement that defines the essence of the modern welfare state, look no further than Secretary of Energy Steven Chu’s defense of the administration’s efforts to ban incandescent light bulbs. “We are taking away a choice that continues to let people waste their own money,” Chu said, quite satisfied with government’s efforts to protect Americans from their own choices.

Contrast this with Milton Friedman’s view that

those of us who believe in freedom must believe also in the freedom of individuals to make their own mistakes. If a man knowingly prefers to live for today, to use his resources for current enjoyment, deliberately choosing a penurious old age, by what right do we prevent him from doing so? We may argue with him, seek to persuade him that he is wrong, but are we entitled to use coercion to prevent him from doing what he chooses to do? Is there not always the possibility that he is right and we are wrong? Humility is the distinguishing characteristic of the believer in freedom, arrogance of the paternalist.

For too long, both liberals and too many conservatives have attempted to impose on people the government’s standards of what is best for them rather than leaving them to their own decisions, merely because those decisions may be mistaken. That is the real legacy of the welfare state as expanded by President Obama and as it has been practiced on a bipartisan basis for the last half century or more: We are, quite simply, less free.

Once you accept the paternalistic premise, there is no end to government interference.

In some cases, the restrictions on liberty are tangible and easily seen. As the economy becomes more and more socialized, so too do the consequences of individuals’ behavior. This, in turn, creates an incentive for the state to control that behavior. After all, if individual decisions impose a collective cost, it is only rational for those bearing that cost to demand input on those decisions. Thus, the nanny state seeks to restrict all manner of private consensual activity, whether it is eating fast foods and smoking or having consensual sex or driving without a seat belt. 

But there are other equally important, if less obvious, ways that the welfare state restricts liberty. Government-run health-care systems, for example, impose a minimum amount that you must spend on health care, either through taxes or through insurance mandates, as with the Patient Protection and Affordable Care Act. They determine which medical conditions and eventualities you must insure against, even if you would prefer not to cover such conditions. Thus, they turn individual moral decisions, such as whether to buy insurance that covers abortion, contraception, or drug-abuse treatment, into political questions. And in some government-run systems they deny people the right to purchase the health care they want even with their own money.

By the same token, government-run anti-poverty programs limit your ability to support the charity of your choice. Money you pay in taxes to support government charity is money that you cannot donate to private charity. Yet the charitable activities chosen by the government may not be the ones that you would have chosen, or even the ones most needed. Indeed, the government’s charitable decisions are likely to be driven by politics, favoring those constituencies with the greatest voting power or those causes that capture the public imagination because they are on television or in the newspapers.

Government-run schools automatically pit the values of one group of parents against the values of other groups. How many textbook controversies or debates about what to teach about homosexuality, whether students may pray, or phonics versus whole language could be avoided if parents could choose the school their child attended?

Social Security may or may not be a Ponzi scheme, but it prevents people — especially poor people — from saving and investing for their own retirement in ways that would allow them to build real, inheritable wealth.

Beyond the programs themselves, there is the simple fact that every dollar that the welfare state consumes to pay for itself is one fewer dollar that individuals have to spend the way that they want to, however that may be. As the French economist Frederic Bastiat put it in his parable of the shopkeeper with the broken window, “He would, perhaps, have replaced his old shoes, or added another book to his library.” Or to put it in today’s context, he might have purchased health care, saved for his retirement, or donated to charity. He might have started a business and hired workers. Or he might have spent it entirely on pleasure or frivolities. He might even have bought energy-inefficient light bulbs.

Whatever he might have done, he is now deprived of that choice. He is, in fact, less free.

Once paternalism is accepted in principle, there is no limit to the actions that government may take in controlling our lives and restricting liberty. The ultimate result, as Friedman writes, is “dictatorship, benevolent and maybe majoritarian, but dictatorship nonetheless.”

As we debate the ever-expanding welfare state and all its consequences — joblessness, a crushing debt burden on our children and grandchildren, and the loss of opportunity for the neediest among us — let us not forget the other casualty of big government: freedom.

Bono has the wrong answer for the poor of the world (Part 2)

Bono has the wrong answer for the poor of the world (Part 2)

Bono praises the election of President Obama!!!

_________________________

This is a series of posts that shows that Bono (who I have been listening to since 1983) has the wrong solution to the problem of worldwide hunger.

Max Brantley wrote on the Arkansas Times Blog:

Politico reports here that a group of celebrities, including former Baptist pastor Mike Huckabee, shouted a four-letter obscenity for cameras in a promotion to speak up against famine. Bleeps and labels to cover mouths obscure the actual word.

ONE, the Bono-founded organization, says: 

In the PSA, our celebrity supporters shout out one four letter word that the majority of viewers will find offensive, in order to shine a light on something only a minority seems to be offended by. I know the tone is a bit rough for ONE — that’s no accident. If it feels like a punch in the face, then good — mission accomplished. It’s time for a wakeup call and here’s the alarm. Love it? Great. Hate it? OK. Just don’t ignore it.

 I’m not sure I believe Huck did precisely as described.

_____________

One of the key parts of the solution is economic freedom. It is not the bailout, welfare approach of President Obama who Bono supported in 2008.  Here is the second part of an excellent article from the Cato Institute:

Ending Mass Poverty

by Ian Vásquez

September 2001

Ian Vásquez is director of the Cato Institute’s Project on Global Economic Liberty. This essay originally appeared on the U.S. Department of State’s electronic journal, Economic Perspectives (September 2001).

Economic growth is the “only path to end mass poverty,” says economist Ian Vásquez, who argues that redistribution or traditional poverty reduction programs have done little to relieve poverty. Vásquez writes that the higher the degree of economic freedom — which consists of personal choice, protection of private property, and freedom of exchange — the greater the reduction in poverty. Extending the system of property rights protection to include the property of poor people would be one of the most important poverty reduction strategies a nation could take, he says.

The historical record is clear: the single, most effective way to reduce world poverty is economic growth. Western countries began discovering this around 1820 when they broke with the historical norm of low growth and initiated an era of dramatic advances in material well-being. Living standards tripled in Europe and quadrupled in the United States in that century, improving at an even faster pace in the next 100 years. Economic growth thus eliminated mass poverty in what is today considered the developed world. Taking the long view, growth has also reduced poverty in other parts of the world: in 1820, about 75 percent of humanity lived on less than a dollar per day; today about 20 percent live under that amount.

Even a short-term view confirms that the recent acceleration of growth in many developing countries has reduced poverty, measured the same way. In the past 10 years, the percentage of poor people in the developing world fell from 29 to 24 percent. Despite that progress, however, the number of poor people has remained stubbornly high at around 1,200 million. And geographically, reductions in poverty have been uneven.

This mixed performance has prompted many observers to ask what factors other than growth reduce poverty and if growth is enough to accomplish that goal. Market reforms themselves have been questioned as a way of helping the poor. After all, many developing countries have liberalized their economies to varying degrees in the past decade.

But it would be a colossal mistake to lose focus on market-based growth and concentrate instead on redistribution or traditional poverty reduction programs that have done little by comparison to relieve poverty. Keeping the right focus is important for three reasons — there is, in fact, a strong relationship between growth and poverty reduction, economic freedom causes growth, and most developing countries can still do much more in the way of policies and institutional reforms to help the poor…

 

The Importance of Economic Freedom

The West’s escape from poverty did not occur by chance. Sustained growth over long periods of time took place in an environment that generally encouraged free enterprise and the protection of private property. Today, developing countries have an advantage. By adopting liberal economic policies, poor countries can achieve within one generation the kind of economic progress that it took rich countries 100 years to achieve. High growth is possible because poor countries will be catching up to rich countries, rather than forging a new path. Studies by both the World Bank and the International Monetary Fund confirm that countries such as China and others that have chosen to open their economies are indeed converging with the industrialized world.

The most comprehensive empirical study on the relationship between economic policies and prosperity is the Fraser Institute’s “Economic Freedom of the World” annual report. It looks at more than 20 components of economic freedom, ranging from size of government to monetary and trade policy, in 123 countries over a 25-year period. The study finds a strong relationship between economic freedom and prosperity. Divided by quintiles, the freest economies have an average per capita income of $19,800 compared with $2,210 in the least free quintile. Freer economies also grow faster than less free economies. Per capita growth in the 1990s was 2.27 percent in the most free quintile, while it was -1.45 percent in the least free countries.

The Fraser study also found that economic freedom is strongly related to poverty reduction and other indicators of progress. The United Nations’ Human Poverty Index is negatively correlated with the Fraser index of economic freedom. People living in the top 20 percent of countries in terms of economic freedom, moreover, tend to live about two decades longer than people in the bottom 20 percent. Lower infant mortality, higher literacy rates, lower corruption, and greater access to safe drinking water are also associated with increases in economic liberty. Indeed, the United Nations’ Human Development Index, which measures various aspects of standards of living, correlates positively with greater economic freedom.

The implications for the poor are impressive. Economists Steve Hanke and Stephen Walters examined the leading empirical studies on the relationship between economic freedom and prosperity and concluded that a 10 percent increase in economic freedom tends to increase per capita gross national product by 7.4 to 13.6 percent. Since developing countries can still increase their levels of economic freedom substantially, and some have by 100 percent or more in the past two decades, the payoff of enhanced liberty can be seen not only in terms of growth but also in terms of a range of human development indicators. Hanke and Walters found, for example, that an increase in per capita income from $500 to $1,000 produces a rise in life expectancy of about 6 percent. Indeed, high growth creates the wealth that makes it possible for countries to invest in health, education, and other human needs that are an essential part of continued growth. Nor are those benefits shared unequally. The Fraser study found that there is no correlation between economic freedom and inequality, while a World Bank study has found that the incomes of the poorest 20 percent of the population rise proportionately with the average rise in income.

Toward More Effective Poverty Reduction

Although the collapse of central planning forced many countries to abandon inward-looking economic policies in the 1990s, most of the developing world is still far from adopting a coherent set of policies consistent with economic freedom. Russia may have dumped communism, but in terms of economic freedom the Fraser Institute ranks the country 117 out of 123 nations. Even countries such as Argentina and Mexico that have done much to liberalize their economies have clung to policy remnants of the past, with devastating consequences for the poor. Mexico’s peso crisis of 1994-95, for example, resulted from monetary and fiscal policies during an election year that were thoroughly inconsistent with market economics.

Attention to market-oriented macroeconomic policies is well founded, particularly since they benefit the poor. That is especially so of two such policies — reducing inflation and the level of spending — which disproportionately favor the poor. Much less attention, however, has been paid to institutional reforms and the microeconomic environment. Three areas stand out: the rule of law, the level of bureaucratic regulation, and the private property rights of the poor.

A legal system capable of enforcing contracts and protecting persons and their property rights in an evenhanded manner is central to both economic freedom and progress. Indeed, the sustainability of a market economy — and of market reforms themselves — rests largely on the application of the rule of law. Yet the rule of law is conspicuously missing in much of the developing world. The 2001 “Economic Freedom of the World” report, which includes a more comprehensive index of economic freedom for 58 countries, takes this measure into account. It finds that Latin American countries rank especially low in this area. Also at the bottom of the list are transition countries such as Russia and Ukraine. Were reliable data available for African countries, they would no doubt receive low ratings as well.

The absence of the rule of law is especially unfortunate for the poor, not only because they have fewer private resources to protect their rights, but also because the rule of law in itself is related to economic growth. Robert Barro created an index that measured the rule of law on a scale of 0 to 6 and found that a country’s growth rate increases by half a percentage point with each increment in his index. Because the rule of law provides essential protections for the poor, sustains a market exchange system, and promotes growth, it may well be the most important ingredient of economic prosperity.

Another much neglected area in need of reform is regulation. Here again the Fraser Institute’s comprehensive index found that the freedom to operate a business and compete in the market is circumscribed in much of the developing world. The same countries that ranked low in the rule of law area ranked low in this area. To have an idea of the bureaucratic burden with which people in the developing world must contend, consider the cases of Canada, Bolivia, and Hungary. According to a study by the National Bureau of Economic Research, it takes two days, two bureaucratic procedures, and $280 to open a business in Canada. By contrast, an entrepreneur in Bolivia must pay $2,696 in fees, wait 82 business days, and go through 20 procedures to do the same. In Hungary the same operation takes 53 business days, 10 procedures, and $3,647. Such costly barriers favor big firms at the expense of small enterprises, where most jobs are created, and push a large proportion of the developing world’s population into the informal economy.

The informal economy in the developing world is large due to another major factor. The private property rights of the poor are not legally recognized. Peruvian economist Hernando de Soto has documented how poor people around the world have no security in their assets because they lack legal title to their property. In rural Peru, for example, 70 percent of poor people’s property is not recognized by the state. The lack of such legal protection severely limits the wealth-creating potential that the poor would otherwise have were they allowed to participate within the legal framework of the market. Without secure private property rights, the poor cannot use collateral to get a loan, cannot take out insurance, and find it difficult to plan in the long term.

Ending what amounts to legal discrimination would permit poor people to benefit fully from the market system and allow the poor to use their considerable assets to create wealth. Indeed, as de Soto has shown, the poor are already asset rich. According to him, the assets of the poor are worth 40 times the value of all foreign aid since 1945. The wealth of Haiti’s poor, for example, is more than 150 times greater than all foreign investment in that country since its independence in 1804. In the limited places that poor people’s property has been registered, the results have been impressive. Where registration was done in Peru, new businesses were created, production increased, asset values rose 200 percent, and credit became available.

Extending the system of property rights protection to include the property of poor people is the most important social reform that developing countries can undertake. It is a reform that has been almost completely ignored around the world, yet it would directly affect the poor and produce dramatic results for literally thousands of millions of people.

Keeping the Right Focus

Countries have ended mass poverty only by following policies that encourage economic growth. But that growth must be self-sustaining to translate into enduring increases in wealth. Policies of forced industrialization or state-led development may produce high growth for a time, but history has shown that such episodes are followed by economic contraction. Economic freedom, by contrast, shows a strong relationship with prosperity and growth over time. Fortunately, many developing countries are following that path, producing high and rapid growth and showing that it is good for the poor. Their experience may create a demonstration effect for the majority of nations that are in many ways still economically unfree.

All developing nations can do more to increase growth. Establishing the rule of law, reducing barriers that hamper entrepreneurship and competition, and recognizing the property rights of the poor are three reforms that go beyond the liberalization measures that many countries have already introduced. Those reforms not only contribute to economic growth; they increase the effectiveness of growth in reducing poverty. Policy-makers in rich and poor countries alike should not lose focus on the promise of growth. It remains the only path to end mass poverty.

Uploaded by on Jan 18, 2009

U2 performs Pride: In the name of Love, a song about Martin Luther King, at President-elect Barack Obama’s Inaugural concert on the Lincoln Memorial in Washington D.C. Bono told the estimated 600,000 there that on Tuesday “that dream comes to pass.” Jan. 18, 2009

“Woody Wednesday” A review of some of the past Allen films jh32

I am a big Woody Allen fan. Not all his films can be recommended but he does look at some great issues and he causes the viewer to ask the right questions. My favorite is “Crimes and Misdemeanors” but the recent film “Midnight in Paris” was excellent too.

Looking at the (sometimes skewed) morality of Woody Allen’s best films.

In the late ’60s, Woody Allen left the world of stand-up comedy behind for the movies. Since then, he’s become one of American cinema’s most celebrated filmmakers. Sure, he’s had his stinkers and his private life hasn’t been without controversy. But he’s also crafted some of Hollywood’s most thought-provoking comedies. Philosophical, self-deprecating and always more than a tad pessimistic, Allen adds another title to his oeuvre this Friday with Midnight in Paris. Whether it will be remembered as one of his greatest or another flop is too early to say, but its release gives us a chance to look back at some of his most indispensable works.

Love and Death (1975)

Allen’s Love and Death owes a lot to Tolstoy’s War and Peace and the films of Swedish director Ingmar Bergman. Death himself even makes an appearance, recalling the existential dread of Bergman’s The Seventh Seal. But despite the movie’s many highbrow allusions, Allen is more concerned with simply having a good time. Gags and one-liners abound, making it, if not a comic masterpiece, a pretty good way to spend an hour and a half.

Annie Hall (1977)

Like Love and Death, this Oscar winner paired Allen and Diane Keaton as a couple. But unlike Love and Death, it’s less concerned with throw-away gags. Instead, Allen uses humor to explore the complicated nature of relationships and the difficulties of love and communication. And of course, there’s also his trademark pessimism. The film begins with a joke about two women on vacation in the Catskills. One says to the other, “Boy, the food in this place is terrible,” and the other replies, “Yeah I know, and such small portions.” Allen’s character, Alvy Singer, goes on to say, “That’s essentially how I feel about life. Full of loneliness and misery and suffering and unhappiness—and it’s all over much too quickly.” In the end, Alvy’s salvation lies in art, for only there can he give life the happy ending it can’t have otherwise.

Hannah and Her Sisters (1986)

Allen continues the art-as-salvation theme in Hannah and Her Sisters, an ensemble drama about family and infidelity. The film tells three stories, one of which stars Allen as a hypochondriac named Mickey. Terrified of death, Mickey begins a search for meaning that takes him first to Catholicism and then the Hare Krishna movement. But it’s in a darkened movie theater playing the Marx Brothers’ Duck Soup that he finds all the meaning he needs to face life. From a Christian perspective, this is a far from ideal conclusion—and yet, it’s not without an element of truth. The bulk of the Bible is historical narrative, not a list of rules, and Christ often used stories to communicate His message. In this, and every other movie where Allen finds life’s ultimate answers in art, we can disagree—but only partly.

Crimes and Misdemeanors (1989) and Match Point (2005)

The sanctity of art plays a role in Crimes and Misdemeanors, but it’s a minor one compared to Allen’s interest in the human conscience. Does God exist, his characters wonder, and if He doesn’t, can there still be objective morality? His characters have asked these questions before, but never have the stakes been so high as when Judah Rosenthal (Martin Landau), a prominent New York ophthalmologist, finds his life turned upside by an act of violence he’s responsible for. In the aftermath, he’s plagued by guilt but still wonders if a guilty conscience is such a high price to pay for keeping his good name. His transformation as he struggles with this question is chilling to watch.

The same issue is at the heart of Match Point, Allen’s first movie set outside America. The particulars are different, but its trajectory is the same. When Chris Wilton (Jonathan Rhys Meyers) commits murder to preserve his status and good reputation, we wait for him to be caught. But Allen subverts our expectations again, as in Crimes and Misdemeanors—not because he condones murder, but to illustrate his belief that, if there’s no God, life is a crap shoot. Maybe you’ll get caught, maybe you won’t, but either way you’ll have to live with what you’ve done. In both films, he shows more pointedly than most other American filmmakers what hell on earth must look like.

Vicky Cristina Barcelona (2008)

The human conscience is also the focus of Allen’s Vicky Cristina Barcelona, though in a relatively smaller way. He’s also less concerned with the existence of God, but objective morality is still a question lingering in the back of his mind. As the two friends, Vicky (Rebecca Hall) and Cristina (Scarlett Johansson) consider their entanglement with the bohemian Spanish artist, Juan Antonio (Javier Bardem), they’re forced to re-examine the rules they each live by. Even though the movie unquestionably favors moral relativism, the character of Cristina, who was once so proud of her “liberated” spirit, comes away from her search for meaning with a more moral perspective. No longer content to live according to Juan Antonio’s eat-drink-and-be-merry philosophy, she ends her time in Spain determined to find “something else.” That something else isn’t likely to be conventional morality, but neither is it unrestrained passion. While still denying that life has any inherent meaning, Allen forces us to consider whether conventional morality is really so stifling after all.

Overall, Woody Allen can’t be called anything close to a Christian (or even a moral) filmmaker—his films often drip with pessimism (some would say nihilism). But most of his films also give viewers something to chew on, something all too rare at the movies.

Do you have a favorite Woody Allen movie?

Andrew Welch lives in Texas and has written for RELEVANT and Books & Culture.


Interview with Congresswoman Ileana Ros-Lehtinen

Take a look at another conservative in the House of Representatives:

Ileana Ros-Lehtinen’s path to Congress is unlike many others. Representing the 18th congressional district of Florida, she has been one of Congress’ leading voices for democracy and human rights for nearly two decades, and as a political refugee herself from Cuba, it’s fitting that she now chairs the House Foreign Affairs Committee.

Born in communist Cuba, Ros-Lehtinen fled the regime with her parents when she was only eight years old and together they successfully made their way to America. After graduating college, she became a teacher before eventually entering politics. Her story is unusual, but as she explains, also classically American:

“It’s pretty incredible,” she says about her story, “and it says a lot—not about Ileana Ros-Lehtinen—it says a lot about the United States of America. That a refugee child could have come here at the age of eight and rise not only to become a member of Congress, but the chair of the Foreign Affairs Committee. … No matter where you are from, not matter what your background is, no matter what your socioeconomic status is, every person can achieve his or her dreams. Because this is the land of opportunity—it really is.

Ros-Lehtinen recently sat down with The Heritage Foundation to discuss a wide range of topics ranging from US-Cuban relations to the continued attack on democracy and human rights in Latin America.

When asked why we ought to concern ourselves with the affairs of Latin America when our own country is in the midst of one of the worst economic recessions in recent history, Chairman Ros-Lehtinen correctly asserted that a freer, more stable and more prosperous Latin America is in an investment for peace and security in our Western Hemisphere.

“In the end it’s a good investment for America to be involved in helping people get democratic governance—not to take over their country—but to help people be free. And that is an investment that will pay off in the future.”

Don’t miss this interview with a truly remarkable and tireless advocate for freedom and liberty in our own country, the western hemisphere and around the world.

New episode of Gene Simmons very enlightening

gene simmons and shannon tweed picture1

Gene had a lot to deal with this in the opening. Gene had to commit to Shannon that he will be faithful and he did finally get around to making that verbal commitment. 30 years ago Gene should have stepped up and been faithful to Shannon or join the “he-man woman-haters club.” There is no middle ground.

 

Here is a short review:

Excuse me a moment while I flail on the floor in uproarious laughter. Call me a skeptic, but there’s just no way Gene Simmons will be able to cease his extra curricular activities; a wedding ring doesn’t make a man magically stop cheating. With their 22-year-old son Nick serving as best man and 19-year-old daughter Sophie standing as maid of honor, the KISS frontman and girlfriend of 28 years exchanged self-written vows in front of 400 guests. And yes, the wedding will be a part of the family’s reality TV show, Gene Simmons Family Jewels, airing on A&E October 18th. Image…

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Good without God?

busad.png

(The signs are up on the buses in Little Rock now and the leader of the movement to put them up said on the radio today that he does not anticipate any physical actions against the signs by Christians. He noted that the Christians that he knows would never stoop to that level.)

Debate: Christianity vs Secular Humanism (1 of 14)

Paul Kurtz pictured above.

August 11, 2011 on the Arkansas Times Blog many nonbelievers ranted about the requirement that an atheist group had to put down a $15,000 deposit in order to advertise the phrase “Are you good without God? Millions are.” (The signs are actually up on the buses now.)

I personally know of many atheists who are very fine moral people who have a wonderful marriage and a great family life. I could go on and name a bunch of names. However, I will mention my good friend John George who passed away a couple of years ago after a battle with cancer.

He wrote a book published by Prometheus which was started by Paul Kurtz. Kurtz was the originator of the Humanist Manifesto II. I have corresponded in the past with him and I have found him to be a very kind man. I highly recommend his debate concerning humanism on the John Ankerberg Show. I have included clips of that show.

I do not question the fact that many atheists live moral lives. However, this idea that humanists and atheists can come up with a logical moral system that rules out murder is not realistic. Rationally they can not do it. Without God in the picture then you only have this world of time and chance. If evolution teaches us the survival of the fittest then why would “might makes right” ever be wrong?

The movie maker and atheist Woody Allen knows this best.

allen_woody

I am a big Woody Allen movie fan and no other movie better demonstrates man’s need for God more  than Allen’s 1989 film  Crimes and Misdemeanors. This film also brought up the view that Hitler believed that “might made right.” How can an atheist argue against that?  Basically Woody Allen is attacking the weaknesses in his own agnostic point of view!! Take a look at the video clip below when he says in the absence of God, man has to do the right thing. What chance is there that will happen?

Crimes and Misdemeanors is  about a eye doctor who hires a killer to murder his mistress because she continually threatens to blow the whistle on his past questionable, probably illegal, business activities. Afterward he is haunted by guilt. His Jewish father had taught him that God sees all and will surely punish the evildoer.

But the doctor’s crime is never discovered. Later in the film, Judah reflects on the conversation his father had with Judah’s unbelieving Aunt May during a Jewish Sedar dinner  many years ago:

“Come on Sol, open your eyes. Six million Jews burned to death by the Nazi’s, and they got away with it because might makes right,” says Aunt May.

Sol replies, “May, how did they get away with it?”

Judah asks, “If a man kills, then what?”

Sol responds to his son, “Then in one way or another he will be punished.”

Aunt May comments, “I say if he can do it and get away with it and he chooses not to be bothered by the ethics, then he is home free.”

Judah’s final conclusion was that might did make right. He observed that one day, because of this conclusion, he woke up and the cloud of guilt was gone. He was, as his aunt said, “home free.”

The basic question Woody Allen is presenting to his own agnostic humanistic worldview is: If you really believe there is no God there to punish you in an afterlife, then why not murder if you can get away with it?  The secular humanist worldview that modern man has adopted does not work in the real world that God has created. God “has planted eternity in the human heart…” (Ecclesiastes 3:11). This is a direct result of our God-given conscience. The apostle Paul said it best in Romans 1:19, “For that which is known about God is evident to them and made plain in their inner consciousness, because God  has shown it to them” (Amplified Version).

Crimes and Misdemeanors (Woody Allen – 1989) – Final scenes

It’s no wonder, then, that one of Allen’s fellow humanists would comment, “Certain moral truths — such as do not kill, do not steal, and do not lie — do have a special status of being not just ‘mere opinion’ but bulwarks of humanitarian action. I have no intention of saying, ‘I think Hitler was wrong.’ Hitler WAS wrong.” (Gloria Leitner, “A Perspective on Belief,” The Humanist, May/June 1997, pp.38-39). Here Leitner is reasoning from her God-given conscience and not from humanist philosophy. It wasn’t long before she received criticism.

Humanist Abigail Ann Martin responded, “Neither am I an advocate of Hitler; however, by whose criteria is he evil?” (The Humanist, September/October 1997, p. 2.). Humanists don’t really have an intellectual basis for saying that Hitler was wrong, but their God-given conscience tells them that they are wrong on this issue.

Debate: Christianity vs Secular Humanism (11 of 14) (How to motivate people to be good without God?)

Debate: Christianity vs Secular Humanism (3 of 14)

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Arkansas Times Bloggers: “Are you good without God? Millions are.” (Part 3)

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Arkansas Times Bloggers: “Are you good without God? Millions are.” (Part 2)

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Bono has the wrong answer for the poor of the world (Part 1)

Bono praises the election of President Obama!!!

_________________________

This is a series of posts that show that Bono (who I have been listening to since 1983) has the wrong solution to the problem of worldwide hunger.

Max Brantley wrote on the Arkansas Times Blog:

Politico reports here that a group of celebrities, including former Baptist pastor Mike Huckabee, shouted a four-letter obscenity for cameras in a promotion to speak up against famine. Bleeps and labels to cover mouths obscure the actual word.

ONE, the Bono-founded organization, says: 

In the PSA, our celebrity supporters shout out one four letter word that the majority of viewers will find offensive, in order to shine a light on something only a minority seems to be offended by. I know the tone is a bit rough for ONE — that’s no accident. If it feels like a punch in the face, then good — mission accomplished. It’s time for a wakeup call and here’s the alarm. Love it? Great. Hate it? OK. Just don’t ignore it.

 I’m not sure I believe Huck did precisely as described.

_____________

One of the key parts of the solution is economic growth. It is not the bailout, welfare approach of President Obama who Bono supported in 2008.  Here is the first part of an excellent article from the Cato Institute:

Ending Mass Poverty

by Ian Vásquez

September 2001

Ian Vásquez is director of the Cato Institute’s Project on Global Economic Liberty. This essay originally appeared on the U.S. Department of State’s electronic journal, Economic Perspectives (September 2001).

Economic growth is the “only path to end mass poverty,” says economist Ian Vásquez, who argues that redistribution or traditional poverty reduction programs have done little to relieve poverty. Vásquez writes that the higher the degree of economic freedom — which consists of personal choice, protection of private property, and freedom of exchange — the greater the reduction in poverty. Extending the system of property rights protection to include the property of poor people would be one of the most important poverty reduction strategies a nation could take, he says.

The historical record is clear: the single, most effective way to reduce world poverty is economic growth. Western countries began discovering this around 1820 when they broke with the historical norm of low growth and initiated an era of dramatic advances in material well-being. Living standards tripled in Europe and quadrupled in the United States in that century, improving at an even faster pace in the next 100 years. Economic growth thus eliminated mass poverty in what is today considered the developed world. Taking the long view, growth has also reduced poverty in other parts of the world: in 1820, about 75 percent of humanity lived on less than a dollar per day; today about 20 percent live under that amount.

Even a short-term view confirms that the recent acceleration of growth in many developing countries has reduced poverty, measured the same way. In the past 10 years, the percentage of poor people in the developing world fell from 29 to 24 percent. Despite that progress, however, the number of poor people has remained stubbornly high at around 1,200 million. And geographically, reductions in poverty have been uneven.

This mixed performance has prompted many observers to ask what factors other than growth reduce poverty and if growth is enough to accomplish that goal. Market reforms themselves have been questioned as a way of helping the poor. After all, many developing countries have liberalized their economies to varying degrees in the past decade.

But it would be a colossal mistake to lose focus on market-based growth and concentrate instead on redistribution or traditional poverty reduction programs that have done little by comparison to relieve poverty. Keeping the right focus is important for three reasons — there is, in fact, a strong relationship between growth and poverty reduction, economic freedom causes growth, and most developing countries can still do much more in the way of policies and institutional reforms to help the poor.

The Importance of Growth

The pattern of poverty reduction we see around the world should not be surprising. It generally follows the relationship found by a recent World Bank study that looked at growth in 65 developing countries during the 1980s and 1990s. The share of people in poverty, defined as those living on less than a dollar per day, almost always declined in countries that experienced growth and increased in countries that experienced economic contractions. The faster the growth, the study found, the faster the poverty reduction, and vice versa. For example, an economic expansion in per capita income of 8.2 percent translated into a 6.1 reduction in the poverty rate. A contraction of 1.9 percent in output led to an increase of 1.5 percent in the poverty rate.

That relationship explains why some countries and regions have done better than others. “Between 1987 and 1998, there was only one region of the world that saw a dramatic fall in both the number of people and the proportion of the population living on less than a dollar a day. That region was East Asia,” observes economist Martin Wolf. “But this was also the only region to see consistent and rapid growth in real incomes per head.”

High growth allowed East Asia to reduce the share of its poor during this period from 26 to 15 percent and the number of poor from 417 million to 278 million people. With annual growth rates of nearly 9 percent since 1979, when it began introducing market reforms, China alone has pulled more than 100 million people out of poverty. The more modest but increasing growth rate in India during the past decade means that the outlook of the poor in the two countries that make up half of the developing world’s population is noticeably improving.

Elsewhere the performance is less encouraging but follows the same pattern. Poverty rates rose in Eastern Europe and Central Asia, where economic activity declined sharply, and stayed the same in Latin America and sub-Saharan Africa, where growth was low or negligible.

Even within regions there are variations. Thus Mexico’s per capita growth rates of 1.5 percent in the 1990s did not affect the share of people living in destitution, while Chile’s 7 percent average growth rate from 1987 to 1998 reduced the poverty rate from 45 to 22 percent, according to the Institute for Liberty and Development based in Santiago.

Likewise, Vietnam stands out in Southeast Asia. With that country’s per capita growth rates averaging about 6 percent in the 1990s, the World Bank reports that those living under the poverty line declined from 58 to 37 percent between 1993 and 1998. And Uganda’s per capita growth of more than 4 percent in the 1990s reduced the share of people living below a minimum poverty line from 56 percent to 44 percent between 1992 and 1997. The Centre for the Study of African Economies at Oxford University concluded that “general growth accounts for most of the fall in poverty.”

The dramatic impact of growth cannot be understated, even when differences in productivity rates are apparently small. To illustrate, Harvard economist Robert Barro notes that per capita income in the United States grew at an average 1.75 percent per year from 1870 to 1990, making Americans the richest people in the world. Had this country grown just one percentage point slower during that time period, U.S. per capita income levels would be about the same as Mexico’s. Had the growth rate been just one percentage point higher, average U.S. income would be $60,841 — three times the actual level.

Uploaded by on Jan 18, 2009

U2 performs Pride: In the name of Love, a song about Martin Luther King, at President-elect Barack Obama’s Inaugural concert on the Lincoln Memorial in Washington D.C. Bono told the estimated 600,000 there that on Tuesday “that dream comes to pass.” Jan. 18, 2009

Let’s turn the table on Brummett’s comedy at Republicans’ expense

John Brummett enjoyed an evening of comedy at Republicans’ expense. Let me make two points here.

First, Lorne Michaels who runs Saturday Night Live observed that it is Republicans that are better at laughing at the jokes directed to them than the Democrats. Many times Democrats get offended.

Second, I laugh at all the jokes the same. I know that if a Republican is in charge in the White House then he is fair game. If there is something different about that president then the SNL people will have a field day with him. President Clinton with his womanizing ways gave SNL the most material though.

Here is a story on Lorne Michaels followed by a couple of my favorite skits: