Poverty

Not so long ago disaffected youngsters would take to a life of crime and hard drugs, a trajectory which would often kill them. These days, some young men from our Muslim community sign up instead to the so-called Islamic State, and the dream of a distant Caliphate. Why? Well, forget theology or even the prestige which comes from being a warrior — if Sister Christine Frost is right, it all comes down to housing. Sister Christine has worked on the Will Crooks Estate in Poplar, east London, for over 40 years. She accidentally got into the news in early August when she removed the black flag of radical Islam which was flying over the entry to the estate, and the press were fascinated that a small, lone woman aged 77, would take such a risk.

In the latest in a long-line of Commissions or studies into the roll-out of a ‘Living Wage’, today the Archbishop of York Dr John Sentamu has called for the introduction of a wage rate of £7.65 per hour (or £8.80 in London) in sectors that ‘could afford it’. In reality this means the public sector and a host of other industries where there aren’t many low paid individuals, such as accountancy, consultancy, banking and construction. Though not as damaging as an economy wide roll-out, if adopted this could still have a host of unintended consequences.

[audioplayer src="http://traffic.libsyn.com/spectator/TheViewFrom22_3_April_2014_v4.mp3" title="Matt Ridley and Fraser Nelson discuss the IPCC's latest report" startat=67] Listen [/audioplayer]Advocates against global warming often frame the issue in terms of helping the poor. ‘You’re right, people dying thanks to climate change is some way off...’ ran one fairly typical advert recently, ‘about 5,000 miles, give or take.’ Indeed, the United Nations agrees that, looking toward the future, climate change ‘harms the poor first and worst’. And the logic stacks up: the poorer you are, the less able you’ll be to afford the resources to adapt to a changing climate. However, climate policies also have a cost, and these predominantly hurt the poor.

 Gaza City Tattered green Hamas flags still flap above the streets in central Gaza and posters of its martyrs hang in public spaces. But these are tough times for the Hamas government, and not just due to the recent flare-up in tensions with Israel. In December last year, they cancelled rallies planned for the 26th anniversary of their founding, an occasion celebrated ever since they seized power here in 2007, and though usually secretive about their financial affairs, they revealed a 2014 budget of $589 million, with a gigantic 75 per cent deficit. So, what’s gone wrong for Hamas? Just a year ago, it seemed to be enjoying a honeymoon here.

A year ago, a relatively unknown Argentine cardinal, Jorge Mario Bergoglio was elected Pope. A few days later he announced he would take the name Francis, after Saint Francis of Assisi, because, he said, he had particular concern for the poor. In the 1880s, Pope Leo XIII also drew the attention of his clergy to St Francis’s teachings on poverty. The Spectator approved, and recommended it to Protestants as well as Catholics, but it took issue with the Pope’s argument that the spectacle of rich people joyfully embracing holy poverty would be enough to encourage the poor not to mind being poor.

Pessimism sells. It shifts books and newspapers, sends ratings soaring. It fills lecture halls, wins research grants, makes political careers. We are fed this constant diet of doom, predicting anything from meteorological Armageddon to a tyranny of austerity, and so it is little wonder that we tend to miss the bigger story. A cold, dispassionate look at the facts reveals that we are living in a golden era. and that, if you use objective measures, 2013 has been the best year in human history. As a public service - and one which is rarely provided in broadcast or print - The Spectator will below provide evidence for these assertions. We can start from crude figures: $73.5 trillion, the world’s economic output this year.

Fanciful predictions of all the deaths that will result from climate change, decades into the future, are regularly thrown into public debate. Less attention has been given to a real statistic from the here and now, released by the Office of National Statistics this week, which shows the effects of one of the policies designed to tackle climate change: high energy prices. It emerged this week that there were 31,000 ‘excess’ deaths in England and Wales last winter, almost a third more than the previous year. Almost all were, in effect, British pensioners who died of the cold. It’s odd: Britain is a rich country with a massive welfare state — and we know how to heat and insulate houses. We also send millions away in overseas aid.

No serious person today views the Cuban Revolution as anything other than an impoverished tyranny – up to and including the leaders of that Revolution, who have been hastily turning toward capitalism since learning in 2009 that the island was on the brink of insolvency. It remains much easier to find useful idiots willing to defend Venezuela’s so-called ‘Bolivarian revolution’, however, which until recently was supposed to promise something better than its ossified Caribbean neighbour. Not for much longer, perhaps; for Venezuela is on the brink of a social explosion after 15 years of economic incompetence by Islington’s favourite petrocrat. It was reported this week that, absurdly, the most oil rich country in the world is facing food shortages.

The problem about relative poverty is precisely its relativity. The child poverty index, which measures whether a family’s income is below 60 per cent of the average, is a case in point; when incomes go down, bingo, so does child poverty. Which means that one sure fire if controversial way to improve the Government’s child poverty record would be to drive down everyone’s earnings. Iain Duncan Smith, Work and Pensions Secretary, made just this point yesterday when he made a speech about whether the definition should be rather wider than it is. ‘As we saw last year,’ he observed, ‘when the child poverty level dropped by two per cent – a fall in the median income may lift a family out of poverty on paper.

Yesterday’s reshuffle isn’t the only story in town. Save the Children, a global charity, has today started to fundraise for children in Britain whom it says are affected by the government’s cuts. It is now run by Justin Forsyth, an ex-aide to Gordon Brown, who will have understood the political implications of the research: that coalition policies are making child poverty worse. The problem is that this analysis mistakes the nature of poverty in Britain, and – worst of all – the ways of alleviating that poverty. The root problem is a confusion of low income as a cause of these issues, rather than the symptom of wider social failings it often represents. This basic failure has characterised political programmes and grand government schemes for years.