Category: Crony Capitalism

Blog author: jcarter
posted by on Friday, March 14, 2014

koch15web-304You are unlikely to find a pair of siblings who are both as admired and reviled as the Koch brothers. Charles and David Koch are billionaire philanthropists, heads of the nation’s second largest private company, and activists who promote libertarian causes. To many on the right, the brothers are virtuous champions of liberty. To many on the left, the duo is the greatest threat to humanity since global warning (which some on the left would directly attribute to the Kochs).

Both defenders and detractors should be able to set aside their differences, though, and join in agreement with the Kochs on at least one issue: croynism. In a recent interview with the Wichita Business Journal, Charles Koch explained how cronyism hurts us all — especially the poor:

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On January 14, as Brad Chacos so perfectly put it for PC World, “a Washington appeals court ruled that the FCC’s net neutrality rules are invalid in an 81-page document that included talk about cat videos on YouTube.” Reactions have been varied. Joe Carter recently surveyed various arguments in his latest explainer. For my part, I recommend the German, ordoliberal economist Walter Eucken as a guide for evaluating net neutrality, which as Joe Carter put it, “[a]t its simplest … is the idea that all Internet traffic should be treated equally and that every website … should all be treated the same when it comes to giving users the bandwidth to reach the internet-connected services they prefer.” (more…)

Fighting off entrepreneurs! Taking on any threat to their power! Collect ‘em all!

Coolidge In November of 1925, President Calvin Coolidge delivered an address on the topic of the proper relationship between government and business. His audience was the New York State Chamber Commerce. One of Coolidge’s main aims of the speech was to elevate the spiritual value of business.

As president, Coolidge oversaw unprecedented economic expansion and growth, but he also lived through the rise of America’s progressive era and Russia’s Bolshevik Revolution. New ideas about government and society had already long been popularized in large segments of America by 1925. Coolidge, who saw himself as a civic educator, articulated a much more traditional and conservative view of American ideals. A common recurrence of his public addresses was to praise the truths and virtues of America’s founding principles. At the very end of this address, Coolidge closed with the line, “The truth and faith and justice of the ancient days have not departed from us.” Below is a poignant excerpt from his 1925 address:

While there has been in the past and will be in the future a considerable effort in this country of different business interests to attempt to run the Government in such a way as to set up a system of privilege, and while there have been and will be those who are constantly seeking to commit the Government to a policy of infringing upon the domain of private business, both of these efforts have been very largely discredited, and with reasonable vigilance on the part of the people to preserve their freedom do not now appear to be dangerous.

When I have been referring to business, I have used the word in its all-inclusive sense to denote alike the employer and employee, the production of agriculture, and industry, the distribution of transportation and commerce, and the service of finance and banking. It is the work of the world. In modern life, with all its intricacies, business has come to hold a very dominant position in the thoughts of all enlightened peoples. Rightly understood, this is not a criticism, but a compliment. In its great economic organization it does not represent, as some have hastily concluded, a mere desire to minister to selfishness. The New York Chamber of Commerce is not made up of men merely animated with a purpose to get the better of each other. It is something far more important than a sordid desire for gain. It could not successively succeed on that basis. It is dominated by a more worthy impulse; it rests on a higher law. True business represents the mutual organized effort of society to minister to the economic requirements of civilization. It is an effort by which men provide for the material needs of each other. While it is not an end in itself, it is the important means for the attainment of a supreme end. It rests squarely on the law of service. It has for its main reliance truth and faith and justice. In its larger sense it is one of the greatest contributing forces to the moral and spiritual advancement of the race.

Help-Wanted-Whites-OnlyThe legacy of Dr. Martin Luther King, Jr., like most mortals, evokes a certain ambivalence regarding what should be celebrated and what should be rightly critiqued. There are certainly parts of his life and thinking that warrant correction, rebuke, and challenge, but this will be true of all us if we live long enough. On this MLK holiday, however, I am thinking about my parents. My parents spent the first third of their lives being denied the equal application of the rule of law because of Jim Crow laws.

During Jim Crow, my parents could not trust the justice system. State and local courts of justice were unreliable. My parents were not free to take roads trips wherever they pleased, especially at night. They were not allowed to attend certain elementary and high schools. They were not allowed to even apply to several colleges. They were not allowed to equally compete in the marketplace against whites in the South. What made Jim Crow additionally immoral is that they were laws that protected a particular class of people so that they could not suffer the consequences of racial discrimination. Jim Crow protected whites in the South from learning the hard lesson that racial discrimination is bad for business and undermines social flourishing.
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On Wednesday, Rev. Robert A. Sirico, Acton’s President and co-founder, offered his initial comments on “Evangelii Gaudium,” the Apostolic Exhortation released on November 26 by Pope Francis. This morning, Rev. Sirico spent some time extending his thoughts during the course of a couple of radio interviews.

In his first interview of the day, Rev. Sirico appeared on The Chris Salcedo Show on The Blaze Radio Network:

Later on, Rev. Sirico joined host Larry Kudlow on 77 WABC in New York City for a nearly 40 minute discussion of the document, which is well worth your time to listen to in full:

I recently posted some thoughts at The Power Blog on “God’s Problem With Centralized Power”, which took a macro view of what I believe to be God’s clear disdain for mankind pursuing their own ends instead of His articulated purposes when it comes to how we organize ourselves communally. This time I want to highlight a specific, micro-level example of that same general idea.

The story of Israel’s demand for a king in I Samuel 8 contains so many relevant, interesting nuggets of insight that I’ve broken it into two parts. This first post will cover verses 1-9; the second one (on Monday) will explore verses 10-22.

When the elders of Israel come to Samuel on behalf of their people to ask for a king to lead them, the decentralized governing system of “judges” had largely been in place since the Hebrew people’s return from exile in Egypt (some 400 years). What the people were asking for was a massive break with a God-ordained system and time-tested tradition. It marks a major shift in the history of God’s chosen people and, truly, the history of God’s plan for salvation. (more…)

Sid Meir's CivilizationMy wife despises Sid Meier. She’s never met him, nor would she even recognize his name. But she knows someone is responsible for creating the source of my addiction.

For over twenty years I’ve spent (or wasted, as my wife would say) countless hours playing Civilization, Meier’s award-winning strategy game. Every time I play the game I enter an almost trance-like state of complete immersion. According to positive psychologist Mihály Csíkszentmihályi, what I’m experiencing in that moment is known as “flow.” Csíkszentmihályi describes the mental state of flow as,

being completely involved in an activity for its own sake. The ego falls away. Time flies. Every action, movement, and thought follows inevitably from the previous one, like playing jazz. Your whole being is involved, and you’re using your skills to the utmost.

According to Csíkszentmihályi, there are ten factors that accompany the experience of flow:
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Blog author: jcarter
posted by on Wednesday, October 16, 2013

The morticians wanted the monks shut down—or even thrown in jail—for the crime the Benedictines were committing.

Casket-making MonksUntil 2005, the monks of St. Joseph Abbey in St. Benedict, Louisiana had relied on harvesting timber for income. But when Hurricane Katrina destroyed their pine forest they had to find new sources of revenue to fund the 124-year-old abbey. For over 100 years, the monks had been making simple, handcrafted, monastic caskets so they decided to try to sell them to the public.

According to the Wall Street Journal, after a local Catholic newspaper publicized the effort in 2007, local funeral directors got the Louisiana State Board of Embalmers and Funeral Directors—of which eight of the nine members are funeral industry professionals—to serve the abbey with a cease-and-desist order. Louisiana law makes it a crime for anyone but a licensed parlor to sell “funeral merchandise.” Violating the statute could land the monks in jail for up to 180 days.

Since the sole purpose of the “casket cartel” law is to protect the economic interest of the funeral industry, the Institute for Justice filed a federal lawsuit on behalf of the monastery claiming the legislation restricts “the right to earn an honest living just to enrich government-licensed funeral directors.”
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healthcare.gov-crash-1As everyone from political pundits to late-night talk show hosts have pointed out, HealthCare.gov, the flagship technology portion of the Affordable Care Act (aka Obamacare), went live a couple of weeks ago — and was a complete failure.

A very, very expensive failure.

Andrew Couts points out that taxpayers “seem to have forked up more than $500 million of the federal purse to build the digital equivalent of a rock.”

Clouts puts that figure in perspective by comparing it to other websites:

Facebook, which received its first investment in June 2004, operated for a full six years before surpassing the $500 million mark in June 2010. Twitter, created in 2006, managed to get by with only $360.17 million in total funding until a $400 million boost in 2011. Instagram ginned up just $57.5 million in funding before Facebook bought it for (a staggering) $1 billion last year. And LinkedIn and Spotify, meanwhile, have only raised, respectively, $200 million and $288 million.

Why did the government spend a half-billion on the equivalent of a 404-page? Because of crony capitalism. Mike Masnick lists the political cronies who were hired to build the site despite having a “long history of screwed up giant IT projects”:
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