Category: Economic Freedom

Photo courtesy of the Friedman Foundation for Educational Choice

Photo courtesy of the Friedman Foundation for Educational Choice

As we approach what would be Milton Friedman’s 104th birthday this Sunday, July 31st, we should note the enduring significance of his evaluation of the connection between economic and political freedom. In his popular work, Capitalism and Freedom, in a chapter titled “The Relation between Economic Freedom and Political Freedom,” Friedman explains how a society cannot have the latter without the former.

Friedman criticizes the notion that politics and economics can be regarded separately and that any combination of political and economic system is possible. He calls the view “a delusion,” holding that there is “an intimate connection between economics and politics.” Though Friedman concedes the possibility of an economically free and politically repressed society, the opposite, he claims, is impossible. Political freedom, both historically and logically, is inseparable from economic freedom.

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dncplatformEarlier this week, I talked about the religious and economic implications of the RNC platform. As the DNC wraps up, it is time to examine the relevant points of the Democratic platform.

Innovation & Entrepreneurship

We need an economy that prioritizes long-term investment over short-term profit-seeking, rewards the common interest over self-interest, and promotes innovation and entrepreneurship.

Minimum Wage

Democrats believe that the current minimum wage is a starvation wage and must be increased to a living wage. No one who works full time should have to raise a family in poverty. We believe that Americans should earn at least $15 an hour and have the right to form or join a union. We applaud the approaches taken by states like New York and California. We should raise and index the minimum wage, give all Americans the ability to join a union regardless of where they work, and create new ways for workers to have power in the economy. We also support creating one fair wage for all workers by ending the sub-minimum wage for tipped workers and people with disabilities.

Democrats support a model employer executive order or some other vehicle to leverage federal dollars to support employers who provide their workers with a living wage, good benefits, and the opportunity to form a union. The $1 trillion spent annually by the government on contracts, loans, and grants should be used to support good jobs that rebuild the middle class.

Poverty

We believe that today’s extreme level of income and wealth inequality—where the majority of the economic gains go to the top one percent and the richest 20 people in our country own more wealth than the bottom 150 million—makes our economy weaker, our communities poorer, and our politics poisonous.

We reaffirm our commitment to eliminate poverty. Democrats will develop a national strategy to combat poverty, coordinated across all levels of government. We will direct more federal resources to lifting up communities that have been left out and left behind, such as the 10-20-30 model, which directs 10 percent of program funds to communities where at least 20 percent of the population has been living below the poverty line for 30 years or more. We will also focus on communities that suffer from persistent poverty, including empowerment zones and areas that targeted government data indicate are in persistent poverty.

Democrats will protect proven programs like the Supplemental Nutrition Assistance Program (SNAP)—our nation’s most important anti-hunger program—that help struggling families put food on the table. We will also help people grow their skills through jobs and skills training opportunities.

Religious Liberty

Opposes attempts to impose a religious test to bar immigrants or refugees from entering the United States.

Supports a “progressive vision of religious freedom that respects pluralism and rejects the misuse of religion to discriminate.”

Supports protecting both Muslims and religious minorities and the “fundamental right of freedom of religion” in the Middle East. (Read more here)

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In the wake of last week’s Republican National Convention, and in the midst of the Democratic National Convention, it is more important than ever for voters to be thoroughly educated on each party’s platform going into the general election season. In two recent posts on the Republican Party platform, (part one, part two) Joe Carter provides a comprehensive summary of the Republican Party’s main stances (we’ll look at some of the Democratic Party’s platform issues in a later post). Some of the highlights of the platform include: (more…)

One and Indivisible is a new collection of essays on the connection between religious and economic liberty. Those who regard freedom as essential should uphold the importance of both religious and economic liberty; these essays dig deeper in search of an essential connection or natural interplay between the two.

Now on sale in the Acton Book Shop

Now on sale in the Acton Book Shop

One and Indivisible connects both freedoms as complimentary and symbiotic. Richards discovers a “virtuous cycle” between religious and economic freedom. Michael Novak traces the foundations of each through the American natural rights tradition, finding that economic liberty is both a product of and a supporter of religious freedom.

The book successfully connects the foundations of economic and religious freedom with the challenges society faces today, in the United States and abroad. Especially timely are Jay Richards’ examination of the threat to religious freedom posed by the loss of economic liberty in the Affordable Care Act and Cardinal Joseph Zen’s exploration of the paradox of high economic freedom and low religious freedom in China.

Later in the collection, a case is made for the strength of the symbiosis of religious and economic freedom in combating poverty and restoring an anthropological understanding of private property. A key thought echoed by each essayist is the ability of Christian anthropology to undergird poverty alleviation, natural law, and conclusively economic development. At the end of her essay, “Faith and Freedom and the Escape from Poverty,” Anielka Münkel Olson wraps the ideas of economic flourishing and religion together by quoting St. John Paul II in his address to the United Nations: (more…)

halo-effect1As church attendance continues to decline across the West, many have lamented the spiritual and social side effects, namely a weakening of civil society and the fabric of community life. What’s less discussed, however, is the economic impact of such a decline.

In a new study published by Cardus, Dr. Michael Wood Daly of the University of Toronto explores this very thing, researching the “economic value” of ten Toronto congregations, and finding “a cumulative estimated economic impact of approximately $45 million,” based on a combined budget of only $10 million. The study refers to this as the “halo effect,” noting the church’s value to the community, whether through social capital, community services, or physical resources and infrastructure.

The research builds on an existing framework from a pilot study done in 2010 by Partners for Sacred Spaces and the University of Pennsylvania, which resulted in similar findings. Focusing on 12 congregations, the Pennsylvania study found an economic contribution of roughly $52 million, concluding that local congregations can “now be viewed as critical economic catalysts.” Both studies evaluated a range of variables in the seven key categories, including (1) open space, (2) direct spending, (3) education, (4) magnet effect, (5) individual impacts, (6) community development, and (7) social capital and care. (more…)

shutterstock/cnnmoney

shutterstock/cnnmoney

Vox recently published an article claiming that Charles Koch is right and Bernie Sanders is wrong about how the economy is rigged. Both agree that there are laws that unfairly favor some financially over others. Sanders often claimed during his campaign that the rich have used their money to lobby for laws that favor their interests over those of everyone else.  Meanwhile, Charles Koch has condemned excessive regulation and restrictions on economic freedom that allow the few to bend laws in their financial favor against the many. In looking at the real problem in the economy, Charles Koch’s analysis of the problem comes closer to the truth.

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bourgeious-equality-mccloskeyIn Dierdre McCloskey’s latest book, Bourgeois Equality: How Ideas, Not Capital or Institutions, Enriched the World, she builds on her ongoing thesis that our newfound prosperity is not due to systems, tools, or materials, but the ideas, virtues, and rhetoric behind them.

Much has been made of her argument as it relates to the (ir)relevance of those material features as causes: “coal or thrift or capital or exports or exploitation or imperialism or good property rights or even good science.” But less has been said about her views on the spiritual/material as it relates to the byproducts.

I’m not yet finished with the book, but on page 70, she offers her view on the spiritual dynamics of what’s to come.

Contrary to popular claims that an increasingly prosperous free society will necessarily trend toward greed, envy, and idleness, McCloskey sees a future with more resources, and thus, more time and space for the transcendent. “One would hope that the Great Enrichment would be used for higher purposes,” she writes…”Enrichment leads to enrichment, not loss of one’s own soul.” (more…)