Category: Economics

636_debt_ceiling_0When it comes to political policy, Christians in America have a wide-range of opinions about what should be done. Even when we agree on a general principle, we tend to disagree about how that informs our policy choices. We recognize, for instance, that we have an obligation to care for the poor but differ on the type and degree of government involvement.

Such differences can lead us to believe that there is nothing we can agree on. But I don’t believe that is true. There are indeed some issues that all Bible-believing Christians should be able to agree on.

One such area of potential agreement is paying debts. The Bible is clear that believers are to pay what we owe. The Apostle Paul tells us, “Pay to all what is owed to them: taxes to whom taxes are owed . . .” (Romans 13:7). Similarly, the Psalmist warns that, “The wicked borrows but does not pay back . . .” (Psalm 37:21). And Proverbs tells us, “Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go, and come again, tomorrow I will give it”—when you have it with you.” (Proverbs 3:27-28).

The Bible is clear that when an individual incurs a debt they are required, to the best of their ability, to pay what they owe. But does this same principle apply to governments?
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money health careAccording to Fox News, Debbie and Larry Underkoffler, owners of North Georgia Staffing, are considering paying government-imposed penalties rather than offering Obamacare to temporary employees. The couple offers excellent health care to their full-time staff, but with hundreds of temporary employees, the cost of offering health insurance could sink their business.

[U]nder ObamaCare, the Georgia company now faces a tough choice — cover all of its temporary workers as well, or pay a hefty fine.

Aside from its full-time staff, the company also manages about 400 temporary workers, and is hoping to add another 200 in the next year. Those employees can buy into a separate health insurance program North Georgia Staffing signed up with. Under new ObamaCare rules, many of those “temps” will count toward the Underkoffler’s full-time staff.  Larry Underkoffler calculates their full-time employee count will instantly surge from 18 to around 200. They will go from boutique operation to “major employer” overnight. (more…)

Acton Director of Research Samuel Gregg joined host Raymond Arroyo last Thursday evening on EWTN’s The World Over to discuss his latest book, Tea Party Catholic, and addressed some of the common objections Catholic proponents of limited government often encounter.

Tea Party Catholic

Tea Party Catholic

In Tea Party Catholic, Samuel Gregg draws upon Catholic teaching, natural law theory, and the thought of the only Catholic Signer of America's Declaration of Independence, Charles Carroll of Carrollton—the first “Tea Party Catholic”—to develop a Catholic case for the values and institutions associated with the free economy, limited government, and America's experiment in ordered liberty. Beginning with the nature of freedom and human flourishing, Gregg underscores the moral and economic benefits of business and markets as well as the welfare state's problems. Gregg then addresses several related issues that divide Catholics in America. These include the demands of social justice, the role of unions, immigration, poverty, and the relationship between secularism and big government.

Visit the official website at www.teapartycatholic.com

$24.00

Blog author: dpahman
posted by on Monday, October 14, 2013

Among many other bizarre claims in his most recent article at The American Conservative, Patrick Deneen writes,

Today’s conservatives are liberals — they favor an economy that wreaks “creative destruction,” especially on the mass of “non-winners,” increasingly controlled by a few powerful actors who secure special benefits for themselves and their heirs….

Pace Inigo Montoya, I actually have no idea what Deneen thinks creative destruction means in this context.

Setting aside the question of whether or not it is a bad thing (or accurate, for that matter) to say that “[t]oday’s conservatives are liberals,” I am far more concerned with how Deneen thinks creative destruction is “wreaked” upon “non-winners.” This is further complicated by his implication that creative destruction supports, rather than threatens, “a few powerful actors.” (more…)

Acton On The AirOn Friday afternoon, Saumel Gregg, Acton Institute Director of Research, joined host Al Kresta on Kresta in the Afternoon to discuss the ongoing government shutdown from a Catholic perspective. In the course of his introduction, Kresta referred to Gregg’s latest book, Tea Party Catholic, as “the single best work to help us get into a Catholic understanding of our social responsibilities.” As usual, Al and Sam provide us with a fine discussion, which you can listen to using the audio player below.

Tea Party Catholic

Tea Party Catholic

In Tea Party Catholic, Samuel Gregg draws upon Catholic teaching, natural law theory, and the thought of the only Catholic Signer of America's Declaration of Independence, Charles Carroll of Carrollton—the first “Tea Party Catholic”—to develop a Catholic case for the values and institutions associated with the free economy, limited government, and America's experiment in ordered liberty. Beginning with the nature of freedom and human flourishing, Gregg underscores the moral and economic benefits of business and markets as well as the welfare state's problems. Gregg then addresses several related issues that divide Catholics in America. These include the demands of social justice, the role of unions, immigration, poverty, and the relationship between secularism and big government.

Visit the official website at www.teapartycatholic.com

$24.00

golden-2_2386999bFrom the Financial Times:

Greece’s neo-Nazi Golden Dawn party has penetrated the country’s police force, set up caches of heavy weapons in remote locations and trained its recruits to carry out brutal attacks against immigrants and political opponents, according to the country’s top security official.

Nikos Dendias, minister of public order and civil protection, said in an interview with the Financial Times that Golden Dawn’s cult of extreme violence was “unique” among European far-right groups.

The Ancient Greek leaders stressed things like prudent philosophy, intellectual inquiry, and the importance of reason. Modern Greeks – along with the governments of most European nations – spend money they don’t have on things they don’t need at rates they can’t maintain. The party is over for big-government socialism, but the economic (and political) nightmare of recession, depression and an increasingly unruly citizenry has just begun.

And what type of clientele comprise the membership of a group like the Golden Dawn? What do many of those who join share in common?
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This short, satirical video sums up our mess.

Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future

Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future

In Becoming Europe, Samuel Gregg examines economic culture - the values and institutions that inform our economic priorities - to explain how European economic life has drifted in the direction of what Alexis de Tocqueville called "soft despotism", and the ways in which similar trends are manifesting themselves in the United States.

Visit the official website at www.becomingeurope.com

$25.00

636_debt_ceiling_0What is the debt limit or debt ceiling?

In most years the federal government brings in less revenue than it spends. To cover this difference, the Treasury Department has to issue government bonds which increases the national debt. The debt limit is legislative restriction on the total amount of national debt the Treasury is authorized to borrow to meet its existing legal obligations.

What is the current debt limit?

The current statutory limit on total debt issued by the Treasury is just under $16.7 trillion.

Shouldn’t we want Congress to refuses to raise the debt ceiling since it will lower our national debt?

The debt ceiling does not lower the national debt. The legal obligation to pay the debt has already been incurred by the government so the money is already owed. Refusing to raise the debt ceiling merely prevents the Treasury Department from borrowing money to pay the government’s bills.

When will the government run out of money to pay its bills?

The current estimate is October 17, 2013.

What happens when the government doesn’t have money to pay its bills?
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Acton On The AirSamuel Gregg, Acton’s Director of Research, continues to promote his latest book, Tea Party Catholic, via radio interviews across the nation. This morning, he made an appearance on San Antonio’s KTSA radio, speaking with host Jack Riccardi about the Catholic (and broader Christian) case for limited government, a free economy, and a system of ordered liberty. You can hear the exchange via the audio player below.

Tea Party Catholic

Tea Party Catholic

In Tea Party Catholic, Samuel Gregg draws upon Catholic teaching, natural law theory, and the thought of the only Catholic Signer of America's Declaration of Independence, Charles Carroll of Carrollton—the first “Tea Party Catholic”—to develop a Catholic case for the values and institutions associated with the free economy, limited government, and America's experiment in ordered liberty. Beginning with the nature of freedom and human flourishing, Gregg underscores the moral and economic benefits of business and markets as well as the welfare state's problems. Gregg then addresses several related issues that divide Catholics in America. These include the demands of social justice, the role of unions, immigration, poverty, and the relationship between secularism and big government.

Visit the official website at www.teapartycatholic.com

$24.00

Blog author: johnteevan
posted by on Monday, October 7, 2013
Photo Credit: Alan Cleaver via Compfight cc

Photo Credit: Alan Cleaver via Compfight cc

This first appeared in my newsletter, Economic Prospect, in late 2008. Looking back after five years I still like it.

The American failure to save is matched by our insistence on spending to have it all. One part of the problem is the consumer’s love of debt. The other part is the government’s love of debt. Both love debt to enjoy things now and to put off the day of reckoning. How did we get so far from the idea of being content with having enough food, clothing, and shelter?

  1. This is a complex issue based at first in ‘scarcity’ which leads people to create products to fill real needs. When these products are produced people have jobs and can afford more products. Say’s Law says that production creates its own demand.
  2. There comes a point where we move beyond some invisible line and marketing takes over to create imagined needs in people. These needs are filled by more products creating more jobs. This happened after WW2 and made us very prosperous.
  3. Then there is a third stage when the credit industry takes over and tries to convince people to borrow not just for houses or cars (durables) but for anything to enhance their way of life. This started in the 1970s. Consumer debt is $2 trillion but this kind of borrowing creates still more jobs at least for as long as the party lasts.

But the day of reckoning has arrived. Will we get the point and change our behavior? Apparently not. First, the government sold bonds, then raided the trust funds (Social Security), then we borrow to stimulate the economy…then we just borrow without limit.

If Americans are not saving, who will loan us all this money? The answer is the Chinese and Asians who are amazing savers. They will loan us the money. China already owns nearly $2 trillion in U.S. government bonds. This is not a small issue.

Economics in One Lesson : The Shortest and Surest Way to Understand Basic Economics

Economics in One Lesson : The Shortest and Surest Way to Understand Basic Economics

This classic work provides the layman with a clear understanding of the economic way of thinking. A must-read for the beginner!
$14.00