Category: Economics

Senator Jeff Sessions (R. – Ala.) is frustrated with the latest job report, saying more people are leaving the workforce than joining it:

Today’s jobs report underscores a deeper problem facing our economy: a large and growing block of people who are chronically jobless and completely outside the workforce. In December, the economy added only 74,000 jobs – not nearly enough to keep up with population growth –and 347,000 left the workforce. That means for every one job added, nearly 5 people left the workforce entirely. There are now nearly 92 million Americans outside the workforce, resulting in the lowest participation rate in 36 years.

This chart illustrates the December report, and includes figures on those who are unemployed yet still looking for work, and those who’ve given up searching. (more…)

68-wimpyIn a comment last month on the proposed federal budget deal, Sen. Rand Paul quoted one of the foremost economic thinkers of the twentieth century. “There is a recurring theme in Washington budget negotiations. It’s I’ll gladly pay you Tuesday for a hamburger today. I think it’s a huge mistake to trade sequester cuts now, for the promise of cuts later,” Sen. Paul said.

“I’ll gladly pay you Tuesday for a hamburger today,” was a catchphrase made famous by J. Wellington Wimpy, a character in the comic strip Popeye. But it also describes, with slight modification, the attitude of Americans to funding government: “I’ll begrudgingly pay you in the future for services provided today.”

Several years ago economist Steve Landsburg made an astute observation about our nonsensical idea about tax relief:

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Blog author: jcarter
posted by on Thursday, January 9, 2014

Putting ourselves and our children further in debt, notes Timothy Dalrymple, is not the way to help the poor:

One of the great difficulties of this issue, for Christians, is that the morality of spending and debt has been so thoroughly demagogued that it’s impossible to advocate cuts in government spending without being accused of hatred for the poor and needy. A group calling itself the “Circle of Protection” recently promoted a statement on “Why We Need to Protect Programs for the Poor.” But we don’t need to protect the programs. We need to protect the poor. Indeed, sometimes we need to protect the poor from the programs. Too many anti-poverty programs are beneficial for the politicians that pass them, and veritable boondoggles for the government bureaucracy that administers them, but they actually serve to rob the poor of their dignity and their initiative, they undermine the family structures that help the poor build prosperous lives, and ultimately mire the poor in poverty for generations. Does anyone actually believe that the welfare state has served the poor well?

Read more . . .

The Washington Examiner has published a chart that clearly lays out the difference between Obamacare versus private sector health care. Using Walmart as an example (despite the employer’s much-disparaged employee benefits), Elliot Smilowitz at the Examiner shows that the private sector is able to offer comparable health care at much less expense than Obamacare. (more…)

Untitled 4Even when we agree on what Biblical principles should guide our political choices, evangelicals from the left and right rarely agree on policy solutions. But there is one area where there appears to be an increasingly significant level of agreement: the immorality of our national debt.

At Christianity Today, David P. Gushee — an ethicist and politically progressive evangelical — explains why the $17 trillion national debt is both immoral and unwise:

Most progressive evangelicals who address government spending focus on compassion issues. They connect God’s care for the poor to U.S. government spending priorities. This often seems to mean by default that all cuts to social welfare spending are bad, and that all increases are good.

I agree with my progressive evangelical allies that our government—which projects spending $3.77 trillion in fiscal 2014—seems to have sufficient resources to provide for the sick, the aged, the poor, and the uninsured. I agree with an overall reading of the Bible that prioritizes physical human needs over most other priorities. But I protest a too-easy move from “God cares for the poor and calls Christians to do the same” to “God wants the secular government of the United States to spend x on social welfare.” Translating a sacred text into a political ethic is not that easy.

Still, we have a moral problem on our hands: While our nation budgets $3.77 trillion for spending in fiscal 2014, it forecasts revenue of $744 billion less than that. If a nation does that for long enough, it ends up with a debt of $17 trillion—and rising.

A government that develops a pattern of spending considerably more than it raises behaves immorally. But its immorality is not simply the immorality-as-immediate-hardheartedness-to-the-poor, so often decried by my friends.

Read more . . .

poverty-in-america-300x300In addition to reading Joe Carter’s striking by-the-numbers piece on the War on Poverty, and in keeping with Sam Gregg’s reflections on the deeper social and cultural forces at work, I heartily recommend taking in Josh Good’s excellent retrospective in AEI’s The American.

Leveraging a lengthy quote from Herman Bavinck’s The Christian Family, one I’ve put to use myself, Good notes the “inverse impact of changing family structure on productive work and a flourishing economy”:

The fact is, poverty is not merely a material problem. A half-century after the dawn of the War on Poverty, we would be well-served if President Obama addressed the American public on the cultural aspects of poverty…Americans truly interested in serving the poor more effectively will do well to recall this insight, from the late theologian Herman Bavinck:

“For children are the glory of marriage, the treasure of parents, the wealth of family life. They develop within their parents an entire cluster of virtues, such as … devotion and self-denial, care for the future, involvement in society, the art of nurturing. With their parents, children place restraints upon ambition [and] as with living mirrors they show their parents their own virtues and faults, force them to reform themselves, mitigating their criticisms and teaching them how hard it is to govern a person. The family exerts a reforming power upon the parents … [transforming] ambition into service, miserliness into munificence, the weak into strong, cowards into heroes, coarse fathers into mild lambs, tenderhearted mothers into ferocious lionesses.” (more…)

lbjIn today’s National Review Online, leading economists are asked to comment on the 50th anniversary of Lyndon Johnson’s “War on Poverty.” Acton’s Director of Research, Sam Gregg, weighs in:

As we know now, Johnson’s offensive against poverty did not have the impact envisaged by its progenitors. By the early 1970s, the failure was stark. Even today, this failure remains Exhibit A for the ineffectiveness of government intervention when confronting many economic problems. Not that this has led to any major rethinking on the part of most modern leftists when it comes to their conviction that you really cannot have enough state intervention or spend enough taxpayers’ money when you’re addressing an issue like poverty. Their approach remains unchanged: Pass more laws and throw more dollars at the problem. (more…)

According to a report released this week by the Pew Research Center, the so-called “digital divide” between whites and blacks is slowly being closed by smart phones. Here are the key findings of the report:

(1) African Americans trail whites by seven percentage points when it comes to overall internet use (87% of whites and 80% of blacks are internet users). At the same time, blacks and whites are on more equal footing when it comes to other types of access, especially on mobile platforms.
(2) Overall, 73% of African American internet users—and 96% of those ages 18-29—use a social networking site of some kind. African Americans have exhibited relatively high levels of Twitter use since we began tracking the service as a stand-alone platform.
(3) 92% of African Americans own a cell phone, and 56% own a smartphone.

While this may appear to be helpful information, the way the study is being reported tells us nothing about race. This type of data continues to feed the myth that the digital divide in this country is determined by a “racial wealth gap.” I am not convinced that there ever was a digital divide by race to begin with because the real digital divide in America is determined by class, not race.

If one reads the Pew report closely it becomes apparent that studying the “digital divide” along the axis of race is useless because there is essentially no statistical difference between access to the internet between blacks and whites when controlling the data according to income.
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letitia jamesThe saga of “income inequality” stretches on. The young people of the Occupy Wall Street movement now have a website, and President Obama has proclaimed it the “defining issue of our time.” But what IS it exactly? Does it mean that a teacher, a brain surgeon and a garbage collector should all earn the same wage? Does it mean the wealthy entrepreneur should simply give away her money, rather than investing it or leaving it to her heirs?

American Enterprise Institute fellow Jonah Goldberg believes if we’re going to keep talking about income inequality, we’d better figure out what it is. In a USA Today piece, Goldberg says liberals and conservatives view the idea of “income inequality” in very different ways: (more…)

The late, great Chuck Colson had impeccable taste in literature. By that I mean that he liked all of the same books that I like. Or I suppose that I should say, I like all of the same books he liked.

I especially loved the BreakPoint commentaries he’d do that focused on a great author. It always inspired me to hear Mr. Colson speak so eloquently and passionately about great novels that didn’t need Kirk Cameron starring in the movie version of them for Christians to praise.

While commenting on Fyodor Dostoevsky and his classic work Crime and Punishment, Colson said the following:

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