Category: Economics

Blog author: jsunde
posted by on Friday, January 31, 2014

“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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Blog author: mvandermaas
posted by on Thursday, January 30, 2014

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…)

cpr uncle samThe Gateway Pundit gives us a list of “fun” facts about the economy. Of course, “fun” is used in an ironic way, which become clear when you look at just how dreary these facts are:

    • $1.8 Trillion: Cost Of ObamaCare’s Coverage Provisions From 2014 To 2023 (CBO, 7/30/13)
    • $1 Trillion: The Total Student Debt Held By Americans. (Josh Mitchell, “Student-Loan Debt Slows Recovery,” The Wall Street Journal’s Real Time Economics, 12/30/13)

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    Blog author: jcarter
    posted by on Tuesday, January 28, 2014

    War on Poverty special page article banner“Why, if we have made such great strides reducing poverty,” asks Scott Winship, “is there such widespread belief that, to quote Ronald Reagan, ‘We fought a war on poverty, and poverty won’?”

    We won the War on Poverty in the sense that the prevalence of material hardship has declined. According to Meyer and Sullivan, just 8 percent of Americans live at the low standard of living endured by a third of Americans in 1963. But it was a limited and costly victory. Elderly entitlements will bankrupt the country moving forward. Great Society-style no-strings-attached welfare may have had behavioral and cultural impacts that have hurt child opportunity at the bottom. Upward mobility has not expanded. The conservative turn toward welfare reform after 1980 and the limited embrace of a work-promoting safety net by New Democrats produced an important shift in anti-poverty policy, but historically conservatives have not been constructively engaged in formulating a positive opportunity agenda for children at the bottom. That this is changing is the most hopeful sign in domestic policy in some time.

    Read more . . .

    Blog author: jcarter
    posted by on Monday, January 27, 2014

    economic-shalom-bolt“Economics is complicated,” says Derek Rishmawy in his review of John Bolt’s new book, Economic Shalom. “Establishing a Christian approach to economics seems even more daunting a task, especially given the amount of ink that’s been spilled when it comes to a Christian approach to money and wealth.”

    The primary strength of Bolt’s proposal is try to move us past the simple biblicism that tends to run rampant in these theological discussions. In the first chapter, he disposes of the idea that there is clearly one “biblical economics” that can be cleanly read off the surface of the text. He does so partially by surveying the economic thought of three major christian ethicists, Walter Rauschenbusch, Ronald Sider, and David Chilton, using essentially the same biblicistic assumptions, end up with a wide variety of contradictory economic proposals ranging from interventionist socialism to theonomic libertarianism.

    Instead, he holds up the thought of Herman Bavinck, who put forward a more chastened reading of Scripture that takes into account it’s salvific purposes . . .

    Instead of piling up a bunch of verses and trying to see which specific commands can be cleanly mapped onto the current political system, Bavinck proposes we recover the main spiritual purpose of the Scriptures–the restoration of fallen man to God through the Gospel. From there, humans begin to be restored to their proper relationships with each other and are enabled to begin taking up the form of life rooted in God’s creational norms. Where do we go to find those norms? Well, back to the Scriptures, but now, we don’t go looking for particular commands, but the general principles that underlie and inform them. For this reason, Bavinck won’t speak directly of a “biblical economics”, but rather an economic system that is consistent with Scripture.

    Read more . . .

    Acton Institute Director of Research and author of Tea Party Catholic Samuel Gregg joined host John Pinhiero for a discussion of his latest book and the Catholic influence on the American founding on Faith and Reason, Pinhiero’s new show on Holy Family Radio in Grand Rapids and Kalamazoo, Michigan. The wide-ranging discussion lasted a full broadcast hour, and can be heard using the audio player below.

    Blog author: jcarter
    posted by on Thursday, January 23, 2014

    economistsIs the teaching of basic microeconomics — opportunity cost, supply and demand curves, incentives, etc. — a form of conservative propaganda?

    Most people, including almost all economists whether liberal or conservatives, would obviously say “no.” Yet many educators, as well as the general public, believe it’s true.

    In 1994, the Federal Goals 2000 Act expanded the national standards movement to include the teaching of economics in K-12 education. This led to the creation in 1997 of the Voluntary National Content Standards in Economics (VNCSE), which were organized around the core principles of the discipline. While there has been almost no controversy within the discipline over the VNCSE, notes Robert M. Costrell, the objections have come almost entirely from those outside the discipline. Costrell adds that, “There are many who believe that mainstream economics provides an unwarranted defense of free markets, or at least gives short shrift to the case for government intervention.”

    Joy Pullmann provides some examples of criticism from non-economists that Costrell chronicles:
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