Category: Economics

Blog author: jsunde
posted by on Wednesday, February 5, 2014

Annette Gabbedy is a business owner and expert designer and goldsmith. She was also born without fingers, a disposition many might consider a “disability,” particularly in her line of work.

Yet, as you’ll see in the following video, having created and traded her wares for 23 years, Gabbedy sees no reason for this to inhibit her creativity and contribution to society.

As Gabbedy explains:

I tend to really look at people with fingers and think: Well, how can you manage with fingers, because they must get in the way? It’s just your own perceptive of how you look at yourself, and for me, I was born like it, so I’ve never known any different. I’m quite normal. I’m not disabled at all. (more…)

zero-sumWhy do liberal and conservative evangelicals tend to disagree so often about economic issues? This is the second in a series of posts that addresses that question by examining 12 principles that generally drive the thinking of conservative evangelicals when it comes to economics. The first in the series can be found hereA PDF/text version of the entire series can be found here.

In my first post, I covered the first four principles (#1 – Good intentions are often trumped by unintended consequences; #2 – Our current economic and historical context must be taken into account when applying Biblical principles; #3 – To exploit the poor, the rich need the help of the government; #4 – We love economic growth because we love babies). In this post I want to consider points #5 (The economy is not a zero-sum game) and #6 (Poverty in America is more often a matter of personal choice than structural injustice).

5. The economy is not a zero-sum game.

In a zero-sum game, one person’s gain (or loss) is exactly balanced by the losses (or gains) of the other participants. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. It’s similar to dividing a pumpkin pie between five people: someone can only get a larger slice if someone else’s portion is smaller.

Many progressives in America, including far too many (though not all) liberal evangelicals, believe economics is a zero-sum game. They believe wealth, like a pumpkin pie, is fixed and that “there must be one winner and one loser; for every gain there is a loss.” This may be true in some economic systems, but it does not apply in free markets.

Jay W. Richards explains why free enterprise does not require that there be an economic loser for every economic winner:
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Blog author: jcarter
posted by on Wednesday, February 5, 2014

Over the past few months I’ve become obsessed with the idea that economic principles and arguments need to be explained more intuitively. I’ve assumed that the best way to approach that task would be to create robust metaphors that can be intuitively grasped. But a short parody video by Julie Borowski on the minimum wage has made me realize that sometimes all we really need is to show the obvious conclusions of policy positions.

Borowski’s presentation is silly, her style slapdash and homemade, and her argument well worn to the point of being trite. But there is something about having the argument presented visually that helps to put a fresh spin on an stale (and obvious) point.

Watch the video below and keep in mind that when she talks about “raising your own minimum wage” that this is exactly what we are asking the government to do on the behalf of low-skilled workers — often with the same results.

(Via: Cafe Hayek)

liberal-conservativeWe read the same Bible and follow the same Jesus. We go to the same churches and even agree on the same social issues. So why then do liberal and conservative evangelicals tend to disagree so often about economic issues?

The answer most frequently given is that both sides simply baptize whatever political and economic views they already believe. While this is likely to be partially true, I don’t think it is a sufficient explanation for the views of more thoughtful and sophisticated evangelicals (which naturally, dear reader, includes you and me).* Even if we start with our naturally acquired political orientation, our engagement with the Bible tends to have a dialogical effect, causing us to modify and rethink our economic views in light of principles we discern from Scripture.

Because we conservatives and liberals come to different conclusions, though, one side will be right and the other wrong (or at least more right and more wrong than the other). We all believe our views on economics are true, which is why we are justified in holding these beliefs and think those who disagree are necessarily wrong. That is just how belief works.

But we often don’t have a sufficient depth of understanding about each others fundamental economic beliefs to know why exactly we come to such different conclusions. Too often we express disagreements about policy without comprehending what guiding principles are motivating our differences of opinion.
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Acton Institute Director of Research Samuel Gregg joined host Mike Murray on his show “Faith, Culture and Politics” on the Guadalupe Radio Network to discuss his latest book, Tea Party Catholic. The interview lasted nearly a half an hour, and you can listen to it via the audio player below.

“We need transformation, relief, and opportunity…in that order,” says AEI’s Arthur Brooks in a new video on conservatism and poverty alleviation. “Transformation starts with culture. Transformation is faith, family, community, and work…That’s the beginning of getting people into the process of rising.”

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Acton Institute Senior Editor Joe Carter joined host Darryl Wood’s Run to Win show on WLQV in Detroit this afternoon to discuss the issue of income inequality from a Christian perspective. The interview keyed off of Carter’s article, What Every Christian Should Know About Income Inequality. You can listen to the entire interview using the audio player below.

In his new book, Knowledge and Power, the imitable George Gilder aims at reframing our economic paradigm, focusing heavily on the tension between the power of the State and the knowledge of entrepreneurs — or, as William Easterly has put it, the planners and the searchers.

“Wealth is essentially knowledge,” Gilder writes, and “the war between the centrifuge of knowledge and the centripetal pull of power remains the prime conflict in all economies.”

In a recent interview with Peter Robinson, he fleshes out his thesis:

Quoting Albert Hirschman, Gilder notes that, “Creativity always comes as a surprise to us,” continuing (in his own words), “if it didn’t, we wouldn’t need it and planning would work….Entrepreneurial creativity is almost defined by its surprisal —  by its unexpected character.”

Making room for such surprise requires a dose of Hayekian humility, but as for the shapes, contours, and origins of the surprise itself, Christianity has plenty to say. (more…)

income-inequalityIn his recent State of the Union address, President Obama has signaled that income inequality will be his domestic focus during the remainder of his term in office. The fact that the president considers income inequality, rather than employment or economic growth, to be the most important economic issue is peculiar, though not really surprising. For the past few years the political and cultural elites have become obsessed with the issue.

But what should Christians think, and how should we approach the issue? Should we also be concerned? And if so, what should we do about it?

Here are ten points about income inequality that every Christian should understand:
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Blog author: bwalker
posted by on Tuesday, January 28, 2014

Pete Seeger performing the Woodie Guthrie song “This Land is Your Land” at President Obama’s “We Are One” Inaugural Concert, January 19, 2009.

Environmentalist, agent provocateur, leftist activist, recovering Communist and ardent redistributionist – all apply to the folksinger who died Monday in New York at the age of 94. Pete Seeger, for better or worse, answered to all of the above adjectives but it’s his legacy as a songwriter and performer for which this writer prefers to remember him.

Certainly there’s much with which to disagree with Seeger from an ideological standpoint over the decades of a nearly 70-year career, but taken as a whole his body of work stands out for its calls for equality and societal change for the better. Take for example Seeger’s “Turn, Turn, Turn,” a wonderful song that “sampled” a bit of Ecclesiastes to become a gentle yet powerful anthem akin to Curtis Mayfield’s “People Get Ready” and Sam Cooke’s “A Change Is Gonna Come.” With “Turn, Turn, Turn,” the songwriter assisted in the bridge between folk and rock when the song was appropriated by the Byrds’ signature jangle-and-harmony pop. (more…)