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The Independent (Quarterly Newsletter) Vol. 28 / No. 2 / Summer 2018 IndependentNEWSLETTER OF THE INDEPENDENT INSTITUTE Answering the Call to End Poverty IN THIS ISSUE By Robert M. Whaples Pope Francis has renewed the world’s attention 1 Answering the on how we might uplift the lives of the poor. Call to End Poverty His invitation for an open dialogue about free- market capitalism and government anti-poverty President’s Letter 2 campaigns should be welcomed by people of all creeds. In this regard, economists have much to 3 New Book: offer in overcoming confusion over causes and solutions as my colleagues T.R.M. Howard and I explain in our recent book, Pope Francis and the Caring Society. Our first lesson is a simple, under-reported fact: Absolute poverty around 4 Independent Institute the globe is not a growing problem, but a diminishing one. in the News In 2015, the World Bank announced that the rate of extreme poverty— defined as earning less than $1.90 per day—had dropped below 10 percent 5 New Opportunities for the first time in history. More than one billion people since 1990 have for a Free Society escaped dire impoverishment. It is no coincidence that poverty had fallen the most in countries that have adopted more market-friendly reforms, namely China, India, and Indonesia. 6 Unique Voice in Latin This points to our second lesson: the causal link between economic America and Beyond freedom and higher standards of living. When voluntary exchange and private-property rights are vigilantly 7 Improving User protected, the economic system becomes an engine of opportunity, enabling Engagement for people to work their way up the ladder, including by starting their own Greater Impact businesses. The resulting additional wealth in turn gives people greater ability to give to those in need. 8 Lighthouse Society Lesson 3: Private charitable giving tends to be far more efficient and effective than government welfare programs funded with confiscatory taxes. This is partly due to competition: Philanthropies often must compete for donor funds, and to succeed they must demonstrate positive impacts. In addition, people respond to taxes by working less and becoming less productive. Pope Francis is justified in calling for us to create a more caring world— but government redistribution has shown that it isn’t up to the task. At a time when modest market-based reforms have enabled hundreds of millions of people to lift themselves out of poverty, let us take one step further. Let’s make even greater progress in fighting poverty by offering people more freedom to create—and voluntarily share—their prosperity. Pope Francis earns our gratitude for urging the world to help the less fortunate realize their birthright of dignity and well-being. The best way make that happen, however, is to respect the blessing of economic liberty. Robert M. Whaples is Research Fellow at the Independent Institute, Professor of The Power of Independent Thinking Economics at Wake Forest University, co-editor of The Independent Review, and INDEPENDENT.ORG editor of Pope Francis and the Caring Society (Independent Institute, 2017). 2 INDEPENDENT PRESIDENT’S LETTER Milestones for Liberty for Best Book in Political/Current and business leader in Mississippi Events (awarded by the Indepen- and Chicago, to his calling as one dent Book Publishers Association). of America’s most inspirational China’s Great Migration tells civil rights leaders. the story of how people interact- Dr. Howard founded black ing voluntarily through their own community organizations, or- initiative and market-based enter- ganized civil rights rallies and prises—rather than bureaucratic boycotts, championed free enter- central planners—are the engines prise, critiqued Big Government of wealth creation and economic and socialism, mentored Medgar progress. Over the course of three Evers, fought the Ku Klux Klan, DAVID J. THEROUX decades, the book explains, 260 and helped lead the fight for justice Founder and President million people left China’s coun- for Emmett Till, Rosa Parks, and Since our founding in 1986, the tryside in search of urban jobs, many others. With a foreword by Independent Institute has been forcing the government to back Pulitzer Prize Finalist and two- deeply privileged to worked with off on its many restrictions and time Polk Award-winner Jerry many top scholars and policy ex- to begin recognizing the property W. Mitchell, this tribute to Dr. perts, and in the process, we have rights and new enterprises. T.R.M. Howard is long overdue. won over 70 book and film awards. From 1981 to 2011, the result- These books tell remarkable Now comes another prize-win- ing urbanization helped pull 753 stories of courage and can inspire ner, China’s Great Migration: million Chinese out of poverty. and instruct all of us today! We How the Poor Built a Prosperous Simply put, history’s largest migra- invite you to join with us to Nation by Independent Research tion spurred its greatest economic further the journey, advancing Fellow Bradley M. Gardner, a transformation. liberty-based emancipations from former East Asia correspondent for Our newest book, T.R.M. government folly—and building The Economist now with the U.S. Howard: Doctor, Entrepreneur, a better future—by becoming State Department. Civil Rights Pioneer, by Inde- an Independent Member. With In April it scored the best win- pendent Research Fellows and your tax-deductible membership, ning combination we’ve ever had for historians David T. and Linda you can receive a FREE copy of one of our books—two prestigious Royster Beito, also tells a pow- China’s Great Migration, Pope awards: the IPPY Gold Medal for erful story of transformation (see Francis and the Caring Society Best Book in Political/Economic/ p. 3). The book explores the life (p. 1), T.R.M. Howard (p. 3), The Foreign Affairs (awarded by In- of T.R.M. Howard through his Independent Review (p. 5), and dependent Publisher) and the es- humble beginnings in Kentucky, other publications, plus additional teemed Benjamin Franklin Award medical education in California, benefits (see envelope). and successful career as a surgeon We look forward to working with you to advance all that only EXECUTIVE STAFF a free society provides! David J. Th eroux Founder, President, and Chief Executive O cer Ivan Eland Mary L. G. Th eroux Senior Fellow Senior Vice President John C. Goodman Sally S. Harris Martin Buerger Senior Fellow President, Saint James Place, Inc. Herman Belz Vice President and Stephen P. Halbrook Philip Hudner, Esq. Professor of History, Chief Financial O cer Senior Fellow Retired Lawyer University of Maryland William F. Shughart II Robert Higgs Gary G. Schlarbaum, Thomas Bethell Research Director and Senior Fellow Senior Fellow Author, The Noblest Triumph: Property Ph.D., CFA and Prosperity Through the Ages Roy M. Carlisle Lawrence J. McQuillan Managing Director, Acquisitions Director Senior Fellow Palliser Bay Investment Management Thomas Borcherding Professor of Economics, Jason Monaghan Susan Solinsky Claremont Graduate School Publications Director Robert H. Nelson Co-Founder, Vital Score Senior Fellow Boudewijn Bouckaert Carl P. Close Benjamin Powell W. Dieter Tede Professor of Law, Research Fellow, Senior Editor Senior Fellow Former President, Hopper Creek Winery University of Ghent, Belgium Paul J. Theroux Randy T Simmons David J. Teece, Ph.D. Allan C. Carlson Technology Director Senior Fellow Chairman and CEO, President Emeritus, Howard Center for Berkeley Research Group, LLC Stephanie N. Watson Alexander Tabarrok Family, Religion, and Society Development Director Senior Fellow David J. Theroux Robert D. Cooter Rebeca Zuñiga Founder and President, Herman F. Selvin Professor of Law, Alvaro Vargas Llosa The Independent Institute University of California, Berkeley Digital Communications Director Senior Fellow Alisha Luther Mary L. G. Theroux Robert W. Crandall Richard K. Vedder Former Chairman, Garvey International Senior Fellow, Brookings Institution Director of Administration Senior Fellow Robert M. Whaples Richard A. Epstein Managing Editor and Co-Editor, BOARD OF ADVISORS New York University The Independent Review BOARD OF DIRECTORS A. Ernest Fitzgerald Christopher J. Coyne Author, The High Priests of Waste Co-Editor, The Independent Review Leszak Balcerowicz Gilbert I. Collins Professor of Economics, George Gilder Michael C. Munger Private Equity Manager Warsaw School of Economics Senior Fellow, Discovery Institute Co-Editor, The Independent Review John Hagel III, J.D. Jonathan J. Bean Nathan Glazer Bruce L. Benson Co-Chairman, Center for the Edge, Professor of History, Professor of Education and Sociology, Senior Fellow Deloitte & Touche USA LLC Southern Illinois University Harvard University Newsletter of the Independent Institute 3 NEW BOOK Remembering an African-American Champion of Liberty Doctor, Entrepreneur, Theodore Roosevelt Mason He continued to Civil Rights Pioneer “T. R. M.” Howard excelled push for reopening David T. Beito and in every realm he pursued, be of the case. Linda Royster Beito Foreword by Jerry W. Mitchell it hunting, medicine, public After moving to With an Afterword by the Authors speaking, entrepreneurship, Chicago in 1956, he opinion journalism, or polit- founded the profit- INDEPENDENT INSTITUTE ical activism. His remarkable able Howard Medical Center on the South Side and story has never been told bet- served as president of the National Medical Associa- ter than in T.R.M. Howard: tion, the black counterpart of the American Medical Doctor, Entrepreneur, and Association. In 1958, he ran for the U.S. House of Civil Rights Pioneer, by his- Representatives as a Republican against the powerful torians David T. and Linda black Democratic incumbent William L. Dawson, a Royster Beito (Independent close ally of Chicago mayor Richard J. Daley. Institute, 2018). Meanwhile, Howard helped found the Chicago Born into poverty in 1908, League of Negro Voters, which nurtured the black Howard used his quick mind independent movement of the 1960s and 1970s. In and boundless energy to be- 1965, Howard chaired a Chicago committee to raise come one of the great renaissance men in U.S.
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