Category: Economic Freedom

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.

Acton Institute President Rev. Robert A. Sirico made an appearance on The Price of Business with host Kevin Price on Business 1110 KTEK in Houston, Texas. The conversation focused on the importance of liberty and the vital need to understand the foundations of our freedoms. You can listen to the interview via the audio player below.

what-is-justice-1The morality of the market, important as it is in a free society, says James Stoner, is not the only kind of morality that matters in common life:

So is there a moral basis for the free market?

Sure, but it is part of a complex moral environment that rightly limits market freedom even as it supports it. The morality of the market, important as it is in a free society, should not be mistaken for the only kind of morality that matters in common life. It certainly should not be allowed to undermine, as I fear it is beginning to do, the political culture of America. That political culture gave birth to our dynamic free economy in the first place, in part by its insistence on limiting government, in part by developing means in an imperfect world for protecting rights and finding what good we have in common.

Read more . . .

If you want to improve the material conditions of the poor and working classes, what is the one economic metric you should consider most important?

carpooling-Life MagFor progressives the answer is income inequality, since a wide disparity between the incomes of the rich and poor is considered by them to be an obvious sign of injustice and a justification for using the force of the government to redistribute wealth. But for conservatives, the answer is upward economic mobility, the ability of an individual or family to improve their economic status. One of the benefits of the free market is that it harnesses liberty, diligence, and hard work in order to advance economic mobility.

The economic realm, though, exists in the physical realm, which is why economic mobility often requires effective means of physical mobility, that is, reliable transportation. While progressives tend to favor government-controlled public transit (such as busses and subways), conservatives tend to prefer individual transportation, especially access to cars. The reason is that history has shown, as Sasha Volokh says, that freedom drives a car:

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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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Many people believe laws to protect ownership and private property primarily favor the wealthy. But as Prof. Dan Russell explains, lack of property protections can lead to abject poverty.

(Via: Institute for Faith, Work, and Economics)

Given the recent and wide-ranging discussion here on the PowerBlog surrounding the the minimum wage (Hunter Baker, Joe Carter, Jordan Ballor, Elise Hilton, yours truly), this short little video offers a nice overview of the seen and unseen effects of such an instrument.

To make its argument, the video assumes the worst about wage-setters, describing Edgar the Employer as Edgar the Exploiter: one who cares only about “making profit” and even dreams about paying his employees less. I have yet to meet such a miser, even in my dark days behind the McDonald’s fry vat, but surely he exists. (more…)

The Institute for Faith, Work, and Economics just released a nice little video that captures the importance of vocation and the beauty of work, elevating freedom as the primary driver of human flourishing.

Watch it here:

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KOPPITZ 0010Reading this profile of UPS’s “Mr. Peak,” Scott Abell, is an enlightening exercise, particularly after the close of this holiday season. Mr. Peak is the guy in charge of making sure that the thing you ordered the Friday before Christmas gets there by Christmas Eve. Or as Devin Leonard puts it, “It’s become so easy for people to shop via computers and smartphones that they frequently delay their purchases until the last minute. Mr. Peak’s job, in effect, is to fulfill the Internet’s promise of instant gratification.”

In my Christmas commentary, I wondered about what a civilization organized around the principle of instant gratification might look like. It wasn’t a pretty picture: “A society that sows the gratification of its material desires everywhere and always, without limitations of rest or Sabbath, will reap a harvest of barbaric sensualism.”

If the Internet promises instant gratification, is the world wide web a force for barbarism rather than civilization? No, but perhaps only if we are willing and able to adjust our expectations. The civilized thing to do might be to order your Christmas presents with more than a few hours to spare. It would certainly make life a bit easier on Mr. Peak. He had a pretty rough season this year.

Mr. Peak “tries to get his family to avoid Internet shopping altogether after Thanksgiving. ‘I’m not going to tell them not to shop,’ he says. ‘But I tell them that they should do it early. Early’s better.'”
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“With every passing year, and each new EU bailout, Europeans seem to be forgetting where they came from,” writes journalist David Aikman in a new review of Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. In The Weekly Standard, Aikman commends Acton Research Director Samuel Gregg’s book for showing how the long post-war project designed to advance European integration, economic security and social welfare has in fact degenerated into government dependency and bureaucratic bloat. The former Time magazine senior correspondent and bestselling author also applauds Gregg for reminding us that Marxist inspired “redistributionism” is really the core problem. Excerpt from the review:

The idea of a European federal superstate as an economic and political entity was never far from the minds of Europe’s key founders. Democratic capitalism was to be the main economic engine of that entity. But as Samuel Gregg points out in this cogently argued study—which frequently refers to Alexis de Tocqueville—whereas the American federal experiment emphasized economic and political freedom as the prerequisites for social prosperity and “human flourishing,” Europe’s postwar program was heavily influenced by social democracy. The goal became economic security for everyone, an idea that required labor-union political power and large bureaucracies to administer the welfare state.

Gregg correctly reminds us that behind social democracy’s stress on fair economic outcomes for Europe’s population lay the fundamental Marxist principle of redistributionism. He certainly does not attribute the European Union’s recent woes to the influence of Marxism, but he assembles a variety of ingredients that add up to what he calls “social Europe,” a social-welfare coterie of EU countries in which general prosperity has declined as economic freedoms have been whittled down. (more…)