Category: Economic Freedom

Wizard of Id - Minimum WageThe protests organized by labor organizations to advocate for an increase in the minimum wage have garnered attention, most recently from the NYT, which editorialized in favor of such moves. Over at Think Christian, I weigh in with an attempt to provide some more of the complex context behind the moral evaluation of such mandates.

In the piece, I’m really less interested in the plight of current-minimum wage workers relative to those who might become minimum-wage workers with an increase, those who are currently priced-out of labor markets because of minimum-wage legislation, and those who will be priced out with an increase.

Earlier this week, Joseph Sunde discussed the issue with an eye towards the price of labor: “Prices are not play things.” I largely agree with Joseph about the significance of the price associated with various kinds of labor. The signal that minimum-wage workers should be receiving is that their work is not that specialized or valuable in the marketplace. You can rage against the values of the marketplace all you like, but that’s what the prices signal.
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Blog author: jcarter
posted by on Friday, July 26, 2013

No Vans Land tells the inspiring story of a small business owner taking on New York’s City Hall. Hector came here from Jamaica for opportunity. But like too many others, he has been forced to constantly defend himself against government attempts to restrict his business and protect powerful interests. The Charles Koch Institute’s new film project, Honest Enterprise, shines a light on the burden put on immigrant entrepreneurs like Hector by the federal, stand, and local governments.

income-inequalityWhen it comes to household income, progressives tend to start with their intuitive understanding of fairness (i.e., some people have a lot more income than others), move to the solution (redistribution of income and wealth from those who have more to those who have less), and only then to develop a metric that justifies implementing their solution: income inequality.

Because of this roundabout approach, you rarely hear progressives argue that income inequality is a problem since for them it just is an injustice — and that wealth redistribution is the primary solution. When conservatives and libertarians disagree about whether it even is an issue we should be concerned with, we are considered heart-hearted apologists for an immoral capitalist system.

The truth, however, is that we don’t care about income inequality because relative differences in income tell us nothing about fairness or the just distribution of wealth. What we care about — what everyone should care about — is whether people have adequate opportunities to increase their household’s income, and hence, improve their standard of living. While there is no truly adequate gauge to measure such opportunities, we can get a fair estimate based on measurements of social mobility.

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A study out of Harvard University focusing on tax credits and other tax expenditures has caused 24/7 Wall St. to declare that America has 10 cities where the poor just can’t get rich. Among the reasons that economic upward mobility is so Detroit Area Economy Worsens As Big Three Automakers Face Dire Crisisminimal in these cities: horrible public education (leading to high dropout rates) and being raised in single-mother households. What these cities share is an economic segregation: two distinct classes of people, with virtually nothing in common.

However, it seems not only bold but disingenuous to say that there “are cities where the poor cannot get rich.” Is it tough? Yes. Is it impossible? Of course not. In A Field Guide to the Hero’s Journey, entrepreneur Jeff Sandefer tells how he made his first job work for him. It wasn’t glamorous. (more…)

Economic-freedomThe wide differences in economic freedom that we observe at the country level can exist at the subnational level as too (e.g., residents in Texas and Florida have greater economic freedom than those in California and New York). But until recently, there were no local indices comparable to the national and global rankings. In a recently published study for the Journal of Regional Analysis & Policy, Dean Stansel, professor of economics at Florida Gulf Coast University, shows that greater economic freedom in metropolitan areas corresponds to higher incomes and lower unemployment in these localities.

Here are the most and least free metro areas in America:

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Hobby-Lobby-StoreAccording to the Becket Fund for Religious Liberty, for-profit businesses won a significant victory for religious liberty today. A federal court granted Hobby Lobby a preliminary injunction against the HHS abortion-drug mandate, preventing the government from enforcing the mandate against the Christian company.

This victory comes less than a month after a landmark decision by the full 10th Circuit Court of Appeals, which ruled 5-3 that Hobby Lobby can exercise religion under the First Amendment and is likely to win its case against the mandate.

“The tide has turned against the HHS mandate,” said Kyle Duncan, General Counsel with the Becket Fund for Religious Liberty, and lead attorney for Hobby Lobby.

In an opinion read from the bench, the court said, “There is a substantial public interest in ensuring that no individual or corporation has their legs cut out from under them while these difficult issues are resolved.”

Nietzsche-e1348964402763In the Genealogy of Morals, Friedrich Nietzsche makes an interesting observation about cultural elites and how a culture defines what is “good”:

[T]he real homestead of the concept of “good” is sought and located in the wrong place: the judgement “good” did not originate among those to whom goodness was shown. Much rather has it has been the good themselves, that is, the aristocratic, the powerful, the high-stationed, the high-minded, who have felt that they themselves are good, and that their actions were good, that is to say of the first order, in contradistinction to all the low, the low-minded, the vulgar, and the plebeian. It was out of this pathos of distance that they first arrogated the right to create values for their own profit, and to coin the names of such values (italics his)

As frustrating as Nietzsche can be for many, his point here is helpful in understanding why it is that elites feel justified in using power and coercion to force those who are not as enlightened and advanced, in the opinion of the elites, to live according to the elite’s imaginings for human life. This is a basic orientation of the type of progressivism we see playing out in American politics today. Progressives see themselves as more enlightened than the rest of us and believe that it is within their right to exert power over the common person to conform us all to a progressive vision for society.

Progressive elites not only know what is best but they will always use power to implement programs to actualize their social visions. Back in 1920, Herbert Croly, a key apologist of progressivism that heavily influenced the New Deal policies of President Franklin D. Roosevelt’s administration, described it this way:

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I’m getting ready to take a bus ride this week. For under $70, I get a round-trip from my city to Chicago. I’ll have free wi-fi, a clean and comfortable ride, and I don’t have to deal with Chicago traffic. It’s convenient, quick, inexpensive and easy. It’s also an entrepreneurial dream. So what does the government have against bus travel in America? Check out this video from Reason:

mcdaniel Senator Chris McDaniel represents Mississppi’s 42nd District (Jones County) in the state legislature. McDaniel has a bachelors degree from William Carey College in Hattiesburg and in 1997 received his Juris Doctor (J.D.) from the Ole Miss School of Law. You can find a full biography at his website. I’ve been following McDaniel’s commentaries, which are an impressive defense of the free society rooted in virtue and a moral framework. He’s a serious thinker and I’ve highlighted his work on the PowerBlog a couple of times. I felt it would be beneficial for our readers to publish an interview with Senator McDaniel. He is worth getting to know and is somebody who echoes so many of the ideas of the Acton Institute.
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Alexei Khomiakov, the Russian Slavophile thinker often credited with first articulating the Orthodox principle of sobornost.

Today at Ethika Politika I offer an assessment of the phenomenon of globalization from the perspective of Orthodox Christian anthropology. In particular, I focus on the concept of sobornost in the thought of the Russian philosopher Vladimir Solovyov, writing,

Solovyov’s account of the moral progress of humanity through globalization is rooted in the Russian idea of sobornost’, which Christopher Marsh and Daniel P. Payne define as “the idea that human beings retain their freedom while participating in human society, and that human society is a participatory process through which human beings actualize themselves as unique hypostases [i.e. persons].” Accordingly, Solovyov writes that true society does not abolish the individual, but “subordination to society uplifts the individual” and “the independence of the individual lends strength to the social order” — an Orthodox parallel to subsidiarity.

I had raised the question of the similarity between sobornost and subsidiarity a few weeks ago during Fr. Michael Butler’s Acton University talk on “Orthodoxy, Church, and State.” I summarized his insight on the concept at the time, writing,

With the reforms of Tsar Peter the Great, however, the Church was literally made a department of the state [in Russia]. The inspiration for this, notably, was not symphonia but the European Protestant national Church model. While in this context the Russian Church still continued to carry out its functions in society, it had lost a great degree of autonomy. In the midst of this context, the Slavophile thinkers Alexei Khomiakov and Ivan Kireevsky reacted to this statist trend in Russian society by developing the theory of sobornost, inspired in part by the Russian word for “Catholic” in the Nicene Creed and inspired by the Orthodox Church’s conciliar basis of authority.

As they framed it, the idea of sobornost placed the idea of sovereignty in the whole of a people. All human beings are interconnected, and each therefore deserves their own autonomy while, at the same time, [each] has a duty to serve all others…. Ultimately, sobornost at its best would be an Orthodox parallel to subsidiarity in which each level of society, all the way down to the individual, has a role to freely play for the common good and each has a duty to assist others for that end.

The question of similarities and differences between subsidiarity and sobornost has been on my mind for some time. There would seem to be clear parallels between the concepts that were coincidentally developed in their modern forms at nearly the same time, though among different traditions for somewhat different purposes. (more…)