Home
/
RELIGION & LIBERTY ONLINE
/
The Cause and Cure of Poverty
The Cause and Cure of Poverty
Jan 18, 2026 11:24 PM

What causes poverty? The question presently plagues many serious Christian thinkers and leaders. The answers vary but the proposed solutions are the stuff of our political campaigns every four years. We can already hear the discussion from the various candidates for the presidency in 2008, both Republican and Democrat. One candidate, John Edwards, actually wants to make poverty a major issue in the next election, maybe as important as the Iraq War. He openly presents his version of a solution and thus makes it a major part of his stump speech these days.

Many Christians, who think about these kinds of questions, will argue that poverty can not be solved in a free-market context. They believe the problem is economic since capitalism is fundamentally rooted in greed. The idea here is quite simple. The rich have all the wealth, they are the ones who create the products, make the money and drive the markets. The poor suffer all the more when this happens. Because capitalism has this perceived inherent flaw it will always, or at least ultimately, foster huge inequities in e and create greater poverty. These inequities will actually increase grinding poverty for millions of people, making things even worse for more poor people as the wealthy class grows. Since the percentage of monetary growth in the present economy shows the rich are getting richer and the poor and middleclass are gaining ground by a much smaller percentage this seems to favor these kinds of arguments against capitalism. (I will not get into this issue in this article, but there are different answers to this question that are both appropriate and sound.)

In 1981 author and political advisor, George Gilder, wrote a huge best-seller, Wealth & Poverty. This popular book influenced a new generation. It did so by challenging the “greed thesis” at its core. I have always admired George Gilder. I realized back in the 1980s that it was his thinking that powerfully influenced the Reagan administration to adopt what became known as Reaganomics, a much maligned and oft-debated theory of wealth, poverty and economics.

(Continue reading the rest of the article at the ACT 3 website…)

John H. Armstrong is founder and director of ACT 3, a ministry aimed at "encouraging the church, through its leadership, to pursue doctrinal and ethical reformation and to foster spiritual awakening."

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Latin America: After the Left
This week’s mentary: The left is in trouble in Latin America. Sebastián Piñera’s recent election as Chile’s first elected center-right president in decades owes much to the inability of the center-left coalition that governed Chile after 1990 to rejuvenate itself. Yet across Latin America there is, as the Washington Post’s Jackson Diel perceptively observes, a sense that the left’s decade of dominance is unraveling. Future historians may trace the beginning of this decline to the refusal of Honduras’s Congress, Supreme...
A ‘reckless’ Green Patriarch?
Over at the American Orthodox Institute’s Observer blog, Fr. Hans Jacobse takes Ecumenical Patriarch Bartholomew to task for jumping on the global warming bandwagon: We warned the Ecumenical Patriarch that endorsing the global warming agenda was reckless. Anyone with eyes to see saw clearly that global warming (since renamed “climate change” — a harbinger that the effort might freeze over) was a political, not scientific, enterprise calculated to centralize the control of the economies of nation-states under bureaucracies. New evidence...
Recall Aristide to Haiti? No way.
Jean-Bertrand Aristide, the ex-president of Haiti who has lived lavishly in exile as a guest of the South African government for the past six years, recently announced he was ready to go back and help Haiti rebuild from its catastrophic earthquake. Allowing the former despot Aristide — a long time proponent of liberation theology — back into the country would be the worst thing we could do to Haiti right now. The American government must resist any move by Aristide...
Fear the Boom and Bust — rappin’ with Hayek and Keynes
From Econstories.tv: In Fear the Boom and Bust, John Maynard Keynes and F. A. Hayek, two of the great economists of the 20th e back to life to attend an economics conference on the economic crisis. Before the conference begins, and at the insistence of Lord Keynes, they go out for a night on the town and sing about why there’s a “boom and bust” cycle in modern economies and good reason to fear it. Lyrics sample (written by John...
A Reminder
Children are not the property of the state: A Christian family from Germany have been granted political asylum in the US after facing the threat of prison for home schooling their children. Uwe and Hannelore Romeike, who are evangelical Christians, were forced to flee Germany as they wished to educate their five children at home. Home schooling is still illegal in Germany under laws introduced during the Nazi era. The German law means that parents who choose to home school...
Psychologists confirm: Power corrupts
The Economist reports on a new study by psychologists that looks into the problem of abuse of power. The researchers attempt to “answer the question of whether power tends to corrupt, as Lord Acton’s dictum has it, or whether it merely attracts the corruptible.” These results, then, suggest that the powerful do indeed behave hypocritically, condemning the transgressions of others more than they condemn their own. es as no great surprise, although it is always nice to have everyday observation...
The Audacity of the Savior State
The current issue of Touchstone magazine features an impressive cover essay by Douglas Farrow, Professor of Christian Thought at McGill University in Montreal, Quebec. In “The Audacity of the State,” Farrow uses the biblical Ichabod motif to examine the crumbling pillars of the family and church, which when properly respected form critical foundations for a flourishing society. In their place, writes Farrow, is the “savior state,” which “presents itself as the people’s guardian, as the guarantor of the citizen’s well-being....
Forgive us our deficits
This week’s mentary: As 2010 unfolds, many countries are confronting a public deficit crisis of disturbing proportions. Since 2008, countless politicians have underscored that a cavalier attitude to debt on the part of Main St. and Wall St. contributed significantly to the recent financial crisis. It’s therefore ironic to observe these contemporary preachers of thrift plunging developed economies into an abyss of public liabilities. In 2009, for example, the Obama Administration spent more money on new programs in nine months...
Ineffective Compassion?
Writers on this blog have pointed to a lot of examples of passion when es to charity and public policy. But what can passion, or maybe just a passion, look like? The Lieutenant Governor of South Carolina Andre Bauer made ment saying government assistance programs for the poor was akin to “feeding stray animals.” I’m not highlighting ment just to bash Bauer and you can watch the clip where he clarifies ments. He continues in a follow up interview by...
Bernanke bad for limited government and the little guy
This week’s reappointment vote for Fed Chairman Ben Bernanke has created some strange bedfellows in Washington. A muddled middle of Republicans and Democrats supports the Keynesian’s reappointment, but the real odd couples are among the opposition. For different if overlapping reasons, free market proponents and far-left figures such as democratic-socialist Bernie Sanders of Vermont are both convinced that Bernanke has done much to hurt our economy, particularly those in the bottom half of our economy. Desmond Lachman of The Enterprise...