Category: Economics

?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Over the past 60+ years, Israel has emerged as an economic powerhouse despite all odds. With only 7.1 million people, no natural resources, and surrounded by enemies and constant threats, it has somehow managed to attract nearly $2 billion in venture capital. It produces more start-up companies than large countries like Japan, India, Korea, and the United Kingdom, and has more companies on the NASDAQ than any country other the United States. Given its range of challenges, how can this be?

In their book, Start-up Nation: The Story of Israel’s Economic Miracle, Dan Senor and Saul Singer set out to explore the question. Indeed, as countries across the world struggle to develop the human, cultural, and institutional capital necessary for a thriving economy, Israeli society appears to cultivate these features with ease.

What might the rest of us learn from such an example? “The West needs innovation,” the authors write. “Israel’s got it. Understanding where this entrepreneurial energy comes from, where it’s going, how to sustain it, and how other countries can learn from the quintessential start-up nation is a critical task for our times.”

The lessons are many, and throughout their book, Senor and Singer outline a host of competing theories and hypotheses. But of all the potential drivers, I was struck most by the role the nation’s military plays in cultivating Israeli culture and bolstering its unique ethos of innovation and entrepreneurship. As peace and prosperity have largely prevailed throughout much of the West (compared to most of human history), what “built-in” lessons of human existence might now need more of our attention? (more…)

Through Christian’s Library Press, the Acton Institute has published four tradition-specific primers on faith, work, and economics, including Baptist, WesleyanPentecostal, and Reformed perspectives. Each offers a distinct contribution to the subject, and when taken together provides a rich and coherent framework for Christian stewardship. The books are part of Acton’s growing Oikonomia Series.


This week, Acton and CLP will be giving away two complete sets of the series (that’s 4 books total for each winner!), including Chad Brand’s Flourishing FaithDavid Wright’s How God Makes the World a Better Place, Charlie Self’s Flourishing Churches and Communities, and John Bolt’s Economic Shalom.

The contest will end Friday night (February 13) at 11:59 p.m. To enter, use the interface below. To get started, all you need to enter is your email address! After that, there are five ways to enter, and each will increase your odds (with extra points for tweeting).

a Rafflecopter giveaway

Note: Due to certain constraints, print copies are only available to contestants who live North America. Winners who reside elsewhere will receive a digital copy.

flowers-saleWhen Christians think of the majesty of God’s handiwork we tend to think of the visible aspects of nature. We agree with King David that, “The heavens declare the glory of God; the skies proclaim the work of his hands” (Psalm 19:1). But there are intricate and beautiful aspects of God’s creative genius that we don’t often think about—or don’t think about as being created by God.

Take, for instance, the price system. As economist Alex Tabarrok says in the video below, “If it had been invented, the price system would be one of the most amazing creations of the human mind.” The price system is indeed an amazing creation—but of the divine mind. It’s one of God’s means of coordinating human activity for the purposes of human flourishing.

As with most good gifts given by God to humans, we are able to corrupt it and use it in ways that harm our neighbors. Yet for the most part, the price system is an ingenious method of communication that have been used to improve the human condition.

In this video, Tabbarrok explores the mystery and marvel of prices and discusses how the price system allows for people with dispersed knowledge and information to coordinate global economic activity.

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…)

MolinaCover - CopyCLP Academic has now released A Treatise on Money, a newly translated selection from Luis de Molina’s larger work, On Justice and Right (De iustitia et iure). The release is part of the growing series from Acton: Sources in Early Modern Economics, Ethics, and Law.

Molina (1535–1600) was one of the most eminent theologians of the Jesuit order in the sixteenth century. Known widely for developing a theory of human freedom of action (and in turn, a new religious doctrine now known as Molinism), Molina was also the first Jesuit to make major contributions to economic thought through a major treatise (On Justice and Right).

In the book’s introduction, Rudolf Schuessler offers more on the historical context and Molina’s contribution therein. As Schuessler explains, Molina’s views on freedom impacted his entire approach to economics and helped “set the pace for Jesuit economic thought.”

Jesuit economic thought in the seventeenth century gravitated toward individual freedom and displayed a keen appreciation of the market economy while upholding moral restrictions for market activities in a flexible and low-profile form. These features of Jesuit economic thought are of great—although not universally recognized—importance because the Jesuits were the teaching order par excellence in early modernity. Almost all early modern economic thinkers in Catholic countries were taught by the Jesuits, and Molina had the privilege to set the agenda for his order’s economic thought…

…By summarizing and discussing the state of the art of his time, Molina sets the pace for Jesuit economic thought. After the demise of the scholastic tradition and the temporary abolition of the Jesuit order in the eighteenth century, the respective doctrines traveled on back roads into the nineteenth century where they influenced the Austrian school and the marginalist revolution in economics. Molina and his contemporaries were the first to apply the laws of supply and demand systematically to money markets, and as a result conceived the quantity theory of inflation. They began to understand the role of risk, of liquidity, and of time preference in economic contexts, as well as the institutional role of property rights. For this they still deserve our attention.


datacenter_workWhere can people turn when technology eliminates their jobs? Greg Forster argues the answer is the “church.”

Forster offers five things the church can be for those whose jobs are eliminated or endangered by technological change:

The church can be a place where people find their true identity.

The church can be a place where people find healing.

The church can be a place where people find wisdom and vision.

The church can be a place of cultural entrepreneurship.

The church can be a place where the poor flourish.

Check out his article at TGC where he expands on each item.

primer-baptistI recently pointed to a helpful talk by Greg Forster to highlight how understanding economics is essential for developing a holistic theology of work, vocation, and stewardship. Economics connects the personal to the public, and prods our attentions and imaginations to the broader social order. In doing so, it alerts us to a unique and powerful mode of Christian mission.

In his latest book, Flourishing Faith: A Baptist Primer On Work, Economics, And Civic Stewardship, Chad Brand expands on this point, listing five reasons why pastors and seminaries (and thus, lay people) would do well to dig deeper into the realm of economics. (The following titles are paraphrased summaries, with the corresponding text pulled directly from Brand.)

1. The Bible Deals with Economic Issues

First, the Bible deals with economic issues…It addresses matters of stewardship of our world (Gen. 1–3; Gen. 9:1–7), of God’s ownership of creation (Matt. 6:25–30; Col. 1:16–20), and of economic shalom (Lev. 25:1–55; Acts 2:42–47; 2 Thess. 3:6–10), and other important issues given more detailed discussion in [this book].

2. Economics Helps Us Understand the Public Square

Second, an understanding of economics and especially of political economy can help us understand what is going on in the world around us. The general election…is impossible to follow without some understanding of the implications of Obamacare and its impact on Medicare, the federal deficit, and the long-term effects of continued deficit spending. The posturing on the part of Republicans and Democrats sometimes seems like little more than rhetoric, but the one who understands what is really at stake can help lead people to a better understanding of their responsibility in the public square.


unbalanced“The bottom half of the world’s population owns the same as the richest 85 people in the world.”

The stat was quoted last month in a report by the development organization Oxfam, but similar claims have become common. You’ve probably seen this statistic—or one like it—before in articles about economic inequality and assumed they must be somewhat true.

But they aren’t. In reality, they are completely meaningless.

One of the problems is that the comparisons are based on net worth (assets minus liabilities). If you aggregate all the people who have a negative net worth into one category and call them the “bottom half” then you come up with some peculiar conclusions. As Felix Salmon says, “My niece, who just got her first 50 cents in pocket money, has more money than the poorest 2 billion people in the world combined.”

The 2015 Acton Lecture Series continued on January 29th with a presentation by American Enterprise Institute President Arthur C. Brooks, who delivered a great talk on what really leads to happiness in life. In an era when Americans are finding less and less satisfaction with their nation while enjoying great abundance compared to much of the rest of the world and overall human history, what can we do to regain our confidence in the American enterprise system that has lifted much of the world out of poverty? Brooks explains, and you can hear his explanation via the video player below.

244-BudgetCover-FY2016What is the President’s budget?

Technically, it’s only a budget request—a proposal telling Congress how much money the President believes should be spent on the various Cabinet-level federal functions, like agriculture, defense, education, etc. (A PDF of the 150 page document can be found here.)

Why does the President submit a budget to Congress?

The Congressional Budget Act of 1974 requires that the President of the United States submit to Congress, on or before the first Monday in February of each year, a detailed budget request for the coming federal fiscal year, which begins on October 1.

What is the function of the President’s budget request?

The President’s annual budget request serves three functions: