Category: Economic Freedom

Blog author: jcarter
Friday, February 27, 2015
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the-corporationWhat makes a company great? To find the answer, Jim Collins’s 21-person research team (at his management research firm) spent five years reading and coding 6,000 articles, generating more than 2,000 pages of interview transcripts, and creating 384 megabytes of computer data. His research identified 11 companies that met the criteria for transforming from a “good company” to one that had achieved “greatness.” Collins wrote about these companies in his book, Good to Great, which became a massive bestseller, selling over four million copies.

But the companies themselves didn’t always fare as well as the book about them. Circuit City went bankrupt in 2009, Fannie Mae was involved in the home mortgage scandal and was delisted from the New York Stock Exchange in 2010. Wells Fargo had to receive a government bailout in 2008 to keep from shutting down. As economist Steven D. Levitt noted in 2008, the returns on those 11 companies was not so great: a portfolio of the “good to great” companies would have underperformed the S&P 500.

Collins’s book sold well (and continues to do so, 14 years later) in large part because Americans of all stripes have an almost religious belief in the almost unlimited power—for good or ill—of corporations. We like to think that companies know what they’re doing and can largely control their futures (and ours). This is part of what Megan McArdle refers to as “corporation theology“:
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Blog author: dpahman
Friday, February 27, 2015
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Yesterday the FCC reclassified Internet Service Providers (ISPs) as a telecommunications service under Title II of the Communications Act, with additional provisions from Title III and Section 706 of the Telecommunications Act of 1996. This was done for the purpose of ensuring net neutrality or open internet access, requiring ISPs to treat all data on the internet equally. Notably, yesterday’s Order also includes mobile broadband for the first time as well.

In a press release, the FCC claims,

Together Title II and Section 706 support clear rules of the road, providing the certainty needed for innovators and investors, and the competitive choices and freedom demanded by consumers, while not burdening broadband providers with anachronistic utility-style regulations such as rate regulation, tariffs or network sharing requirements.

I have expressed concerns in the past about the smattering of regulations available under Title II, far beyond what would be required for net neutrality. On the surface, the press release would seem to indicate that the recent Order was designed to attempt to prevent those further regulations from being available to the FCC: (more…)

stutzman-flowersChristian florist Barronelle Stutzman was sued last year for refusing to sell flowers for the purpose of a same-sex wedding. Last week, a Benton County Superior Court Judge ruled against her, stating that her religious beliefs do not “excuse compliance with the law.” The 70-year-old grandmother now stands to lose everything: her business, her home, and her livelihood.

Next came a settlement offer from the attorney general of Washington, who proceeded to dangle dollars in an attempt to tease Stutzman into submission. The offer: Reject your religious beliefs and agree to accommodate such requests, and life can go on as before (after paying $2,000 in penalties, that is).

Stutzman promptly refused, and did so quite stridently via letter. Joe Carter has already pointed to that response, but given the key themes and tensions that continue to define these battles, the following paragraph by Stutzman bears repeating:

Your offer reveals that you don’t really understand me or what this conflict is all about. It’s about freedom, not money. I certainly don’t relish the idea of losing my business, my home, and everything else that your lawsuit threatens to take from my family, but my freedom to honor God in doing what I do best is more important. Washington’s constitution guarantees us “freedom of conscience in all matters of religious sentiment.” I cannot sell that precious freedom. You are asking me to walk in the way of a well-known betrayer, one who sold something of infinite worth for 30 pieces of silver. That is something I will not do.

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Blog author: ehilton
Monday, February 23, 2015
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Artful-Mayhem-Feb-2012-6We know that, for economies to thrive, people must be free to start their own businesses without taxing regulations, that free trade must be the de facto means of doing business, and that cronyism and corruption must be eradicated.

But that’s not enough.

At the Institute for Faith, Work & Economics, blogger (and former Acton intern) Elise Amyx says we have to have human flourishing as well.

Economic freedom is only one component of human flourishing. We should think about it as a prerequisite, a necessary foundation to society that makes human flourishing possible.

We need to ask ourselves, once we have economic freedom, what do we do with it?

Economic freedom may be the number one force wiping out extreme poverty across the globe, but it can’t do the job alone.

In a free society, we also need a culture of creativity, a culture of voluntary generosity, and a culture virtue and in order for humanity to flourish. (more…)

Blog author: jballor
Thursday, February 19, 2015
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Graeme Wood’s excellent piece in The Atlantic has justly been making the rounds for the past week or so. It is well worth reading with a number of insights and points that strike at the heart of the contemporary conflict between modernity and religious violence. I commend “What ISIS Really Wants” to your reading. (Rasha al Aqeedi’s “Caliphatalism,” which looks more closely at the situation in Mosul, makes a great companion read.)
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Marie Harf, U.S. Department of State

Marie Harf, U.S. Department of State

I do not believe Marie Harf is an eloquent speaker, but I did think her “jobs for ISIS” remarks made some sense. We know that in American cities, for instance, if young men do not have education and jobs, they get into mischief. The kind of mischief that includes gangs and drugs and violence. Why would we expect that young men in Libya, Iraq, and elsewhere would be any different?

Apparently, I’m not the only one. While others have sneered at Harf’s comments as being simplistic, a few are tentatively suggesting she is not as far off-base as first thought. The National Review‘s Tom Rogan says this: (more…)

When Botswana gained independence from the British in 1966, the nation was the third-poorest in the world. Then, for three decades it was the world’s fastest growing economy. Today it’s in the top 15 richest countries in Africa.

What accounts for the miraculous turnaround? As the Daily Signal notes, the country embraced democracy, free markets, and the rule of law.

In the following clip from the PovertyCure series, Doug Seebeck explains how U.S. agricultural subsidies have significant negative consequences both at home and abroad — misaligning human action, distorting market signals, and diminishing opportunities for the least of these.

Haiti used to be self-sufficient in rice. Now they get all their rice from the U.S. This is what we do to Africa. We subsidize our agriculture. We overproduce. Then we ship it as aid with a handshake, and we put them out of business. We disempower them. But you’re also putting the U.S. small farmer out of business. And it gets bigger and bigger and you’re squeezing out free enterprise….

How do I best love my neighbor in this rapidly integrating world…so that everybody has the ability to have what I have? It doesn’t mean we give it away. It means allowing them to succeed.

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Are you now or have you ever been a Randian?

Are you now or have you ever been a Randian?

Over at The Stream, John Zmirak takes on a new McCarthyism which he says smears small-government Catholics as libertarian heretics. He compares the “outrageous instances of red-baiting” during the 1950s to the current practice by some leftist Catholics who tar conservative opponents indiscriminately as devotees of Ayn Rand, whether or not they have actual evidence of such sympathies. Zmirak:

The idea of a detailed, consistent, morally binding body of economic and political policies imposed by the Church on believers on pain of sin is nonsense on red velvet stilts. Elsewhere I argue the point at some length without going to an opposite extreme. Broad principles that inform our life and our politics, such as the dignity of the individual and the family, solidarity, subsidiarity and all the rest? Absolutely. A political platform? Absolutely not.

Nor has the Church ever made such a claim. Most Catholics with any knowledge of history have learned to forgive and forget individual outrageous statements by popes from the past, fully aware that the charism of infallibility is narrowly defined and almost never invoked — twice at least, eight times at most, and never on issues of economics or politics. Catholics are not obliged to support book-burning just because Gregory XVI did.

Rand-baiting is being used today as red-baiting was in the past, by those who support a deeply immoral institution, to silence those who object to it by equating them with extremists. What is that deeply immoral institution? The bloated, secularist, immoral and coercive governments that rule over most Western countries, including the United States.

Read “‘Rand-Baiters’ Target Conservative Catholics” by John Zmirak at The Stream.

1.21411In the latest addition to Mike Rowe’s growing catalog of pointed Facebook responses, the former Dirty Jobs host tackles a question on the minimum wage, answering a man named “Darrell Paul,” who asks:

The federal minimum wage is $7.25 and hour. A lot of people think it should be raised to $10.10. Seattle now pays $15 an hour, and the The Freedom Socialist Party is demanding a $20 living wage for every working person. What do you think about the minimum wage? How much do you think a Big Mac will cost if McDonald’s had to pay all their employees $20 an hour?

Rowe begins by recounting a job he had working at a movie theater for $2.90 per hour (the minimum wage in 1979). He served his customers, learned a host of new skills, and received several promotions in due course. Eventually, he decided to move on, pursuing areas closer to his vocational aspirations.

He worked. He learned. He launched.

Turning back to the present (and future), Rowe is concerned about the ways various labor policies have prodded many business owners to innovate ever-closer to full-blown automation, leading to ever-fewer opportunities for unskilled workers. “My job as an usher [at the theater] was the first rung on a long ladder of work that lead me to where I am today,” Rowe writes. “But what if that rung wasn’t there?” (more…)