Category: Economic Freedom

Joe Carter
posted by on Tuesday, March 5, 2013

“Want a job at the Pig?” asked my best friend Steve.

By my reaction, you would have thought he’d asked if I wanted a date with Kathy Ireland rather than inquiring about a job as a grocery sacker at the Piggly Wiggly. But I was living at Steve’s parent’s house rent-free, and needed to earn some money. And in Clarksville, Texas in 1985, the prospects of an inexperienced teen finding a good job were only slightly better than chances of dating a supermodel.

piggly-wigglyThe elation was short-lived, though, and lasted only until I saw my first paycheck. As a full-time student working for a job that qualified for tips (I never, ever got tips) my employer was allowed to pay me the subminimum wage of $2.85 a hour (the equivalent of $5.87 in 2012). After FICA and Social Security took their cut, there wasn’t much left for me.

So if Ronald Reagan had announced in his State of the Union address that he was raising the minimum wage to $4.37 an hour (the equivalent in 1986 of Obama’s $9 minimum wage) I would have been ecstatic. Like all my fellow proletarian coworkers I was disdainful of Reagan’s economic policies, particularly his refusal to raise the minimum wage. Reagan’s was the only administration not to have raised the minimum wage since it was introduced nationally in 1938—a fact we often repeated in the breakroom as we looked at our paystubs and cussed the president.

Twenty-seven years later, though, I see the situation differently. I realize that I have not only my friend Steve but also President Reagan to thank for my getting hired at the Piggly Wiggly. Had the minimum wage been raised, the store owner could have never afforded to hire me. Since my labor was barely worth $2.85 an hour, having a government imposed price increase on wages of 52% would have priced me out of the market.

As William Graham Sumner explained in 1883, by attempting to do me a favor—by artificially raising the minimum wage I must be paid—the politicians were hurting both me and my potential employer:
Read more on The Forgotten Man at the Piggly Wiggly…

Political activism  by religious took a relatively new twist during the last presidential election cycle when the Nuns on the Bus initiative hit the road. The Roman Catholic sisters insisted they backed neither candidate, but were vehemently opposed to Sen. Paul Ryan’s (R-WI) proposed budget.

The election has long since been decided, but the progressive crusade of Nuns on the Bus and its parent organization Network continues apace not only on the nation’s highways and byways, but as well in corporate boardrooms. This last is precipitated by proxy resolutions by “social justice” activists who are elbowing their way into annual shareholder meetings, courtesy of retirement funds invested in stocks or tax-deductible stock donations made to such organizations as Network.

On its website, Network asserts: “Gifts of stock are a great way putting the stock market to work for justice!” However, Network’s concepts of justice don’t necessarily align with the faith that all nuns have taken vows to uphold. Read more on ‘Social Justice’ Nuns Throw Doctrine Under the Bus…

MSNBC.com reports on a video about wealth inequality that has now gone viral, with over 2.2 million views in just a few months.

A video made shortly after the 2012 election showing how much greater the disparity actually is, has gone viral in the last few days thanks to links from websites including Reddit and Mashable. First, it lays out what people see as ideal, a system in which wealthy Americans get a lot more but poor Americans are slightly above the poverty line. Reality perhaps has the most shock value. As the narrator lays out in the video (uploaded by an unaffiliated, anonymous YouTube user), the top 1% has 40% of all the nation’s wealth, the bottom 80% only has 7% of it.

If you watch the video, you’ll be left with many questions. Among them are the following:

  • What is morally wrong with wealth inequality?
  • Why must wealth be distributed?
  • Whose job is it to distribute the wealth?
  • What makes the distribution of wealth “fair”?
  • How do we measure “fairness” with respect to how people acquire their wealth?
  • What is the “ideal” distribution of America’s wealth and who has the authority to determine what that distribution should be and how should it be enforced?

There are many more questions to pose, for sure.

Near the end of the video the narrator commits a fatal error, which ultimately reveals a possible motive behind the production, when he asks why CEOs should earn a salary “380 times” more than their average employee. The narrator then says, “we don’t have to go back to socialism to find something that is fair for hard working Americans.” There you have it friends: envy. The idea that somehow those who are wealthy are undeserving of their wealth leaps out at the end of the video. There is a deep seated envy epidemic in this country and we see it in videos like this.
Read more on They Don’t Deserve It!: The Idolatry of Wealth Inequality…

Alex Chafuen’s Forbes article on “champions of innovation,” which Michael Miller blogged here recently, is now one of the top features on the contributors page at The Blaze. Here’s an excerpt:

Read more on PovertyCure: From ‘Paternalism to Partnerships’…

Should Catholics be concerned about the looming budget cuts? The National Catholic Register asked several Catholic leaders and thinkers, including Acton’s Samuel Gregg, for their response to the sequester:

NCRlogo_tagRe-establishing fiscal discipline and welfare reform are necessary components to securing the common good, a key principle in Catholic social teaching, said Samuel Gregg, author of the new book Becoming Europe: Economic Decline, Culture and How America Can Avoid a European Future.

Read more on Samuel Gregg on Catholics, Welfare, and the Sequester…

Anthony Bradley
posted by on Friday, March 1, 2013

I have yet to read a moral argument for why the taxes collected from working men and women should be redistributed to businesses. It’s called “corporate welfare.” This is the odd state of affairs where, business owners compete for government funding rather than exclusively competing for customers in the marketplace. In fact, many of the biggest recipients of corporate welfare are the same businesses that hire high-priced lobbyists to help write laws in Congress that protect them from competition. Why, then, do voters turn a blind eye to corporate welfare?

Bloomberg.com reports that:
Read more on Corporate Welfare: Why?…

Joe Carter
posted by on Thursday, February 28, 2013

What do we mean when we talk about “liberty?”

roman-slaveWhile it may appear that we all use the word in the same way, closer examination reveals that Americans have a wide range of meanings for the term. For instance, when those of us at Acton refer to liberty we tend to have in mind the definition we use in our “core principles”: Liberty, in a positive sense, is achieved by fulfilling one’s nature as a person by freely choosing to do what one ought.

Other individuals and organizations often define the term in ways that differ, either subtly or radically, from the Acton Institute. Liberty, then, is less an easily definable term than a word used to refer to a range of loosely related concepts. Understanding how “liberty” has been used in the past can therefore help us understand how and why we have different views of it today.

A prime example is political historian Quentin Skinner’s explanation of “neo-Roman liberty.”
Read more on Neo-Roman and Christian Conceptions of Liberty…

The February issue of Sojourners magazine presents various perspectives on the surge in evangelicalism’s interest in exploring new national and international peace initiatives. For example, The World Evangelical Alliance’s Peacebuilding and Reconciliation Initiative acknowledges “that in our zeal for evangelism, we have often overlooked the biblical mandate to pursue peace. We commit ourselves anew to this mandate within our homes, churches, communities, and among the nations.” Evangelicals for Social Action (ESA) promotes itself as an evangelical organization that “consistently campaigns at the grassroots and policy level for a world that is pro-life and pro-poor, pro-family and pro-racial justice, pro-sexual integrity and pro-creation care.” “We want Christians to look deeply, act justly, and love radically,” says ESA.

Justice and peace are, of course, themes we can all support. What Christians are there in the world who are pro-war and pro-injustice? Even with these themes, however, is it possible that those who are oppressed and suffering need more than a society that is merely peaceful and where people are acting justly? Because “peace” and “justice” are normally situated in light of negative realities, more often than not, the discourse tends to focus on what we should not do in society instead what allows people to be free to live out their vocation to be human. The solutions offered tend to narrowly focus on lofty hoped for visions that deny trade-offs necessary in a broken world.

Additionally, we find the surprising promotion of a ruling class of elites in government having concentrated decision-making power over those with less money and less political power, rather than considering ways to allow people to make decisions that empower them to seek their own solutions to meeting their needs. We need to do more than “end slavery” or “end poverty.” We need to think more deeply about what it means to be human and how we can put people in positions, in accordance with their design by their Creator, to live well. In other words, we need to focus our attention on human flourishing.

In a 2003 article on human flourishing,” Dr. Edward W. Younkins helps us get a sense of the advantages of focusing on human flourishing: Read more on Human Flourishing: Seeking More For The Oppressed…

In a lengthy interview in the Daily Caller, Acton Research Director Samuel Gregg picks up many of the themes in his terrific new book, Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. Here’s an excerpt:

Read more on Samuel Gregg: California, Illinois and New York Going Euro…

Tom Brady was drafted by the New England Patriots in the unimpressive 6th round of the 2000 NFL draft out of the University of Michigan. No one predicted that the slow-footed, lumbering QB in this footage from pre-draft workouts that year would become one of the greatest players in the sport’s history.

But he did. Boy, did he!

I’m no fan of the Patriots and care little for Tom Brady himself, but the guy is a winner and fierce competitor. His statistics speak for themselves. The teams he’s captained for more than a decade have amassed a staggering amount of wins. His three Super Bowl rings put him in rarefied air when the conversation about where he ranks among Hall of Famers starts up. He’s got multi-million-dollar endorsement deals and a super model wife. According to the largely superficial standards of our modern world – dude’s getting it done!

And so as Brady entered this off-season’s contract negotiations, conventional wisdom said that the 35 year-old QB would be in line for yet another big pay-day. After all, these 1%-er, out-of-touch athletes are all money-obsessed jerks, no? Given the “spread the wealth” mentality that increasingly typifies America in 2013, we’ll probably need to get some congressional oversight to limit the salaries of the wealthy jocks parading around the field playing a kid’s game, right? Read more on Tom Brady and The Reality of Living in a World of Trade-Offs…

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