Category: Economics

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
Tuesday, January 28, 2014
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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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    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 . . .

    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.

    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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    Coolidge In November of 1925, President Calvin Coolidge delivered an address on the topic of the proper relationship between government and business. His audience was the New York State Chamber Commerce. One of Coolidge’s main aims of the speech was to elevate the spiritual value of business.

    As president, Coolidge oversaw unprecedented economic expansion and growth, but he also lived through the rise of America’s progressive era and Russia’s Bolshevik Revolution. New ideas about government and society had already long been popularized in large segments of America by 1925. Coolidge, who saw himself as a civic educator, articulated a much more traditional and conservative view of American ideals. A common recurrence of his public addresses was to praise the truths and virtues of America’s founding principles. At the very end of this address, Coolidge closed with the line, “The truth and faith and justice of the ancient days have not departed from us.” Below is a poignant excerpt from his 1925 address:

    While there has been in the past and will be in the future a considerable effort in this country of different business interests to attempt to run the Government in such a way as to set up a system of privilege, and while there have been and will be those who are constantly seeking to commit the Government to a policy of infringing upon the domain of private business, both of these efforts have been very largely discredited, and with reasonable vigilance on the part of the people to preserve their freedom do not now appear to be dangerous.

    When I have been referring to business, I have used the word in its all-inclusive sense to denote alike the employer and employee, the production of agriculture, and industry, the distribution of transportation and commerce, and the service of finance and banking. It is the work of the world. In modern life, with all its intricacies, business has come to hold a very dominant position in the thoughts of all enlightened peoples. Rightly understood, this is not a criticism, but a compliment. In its great economic organization it does not represent, as some have hastily concluded, a mere desire to minister to selfishness. The New York Chamber of Commerce is not made up of men merely animated with a purpose to get the better of each other. It is something far more important than a sordid desire for gain. It could not successively succeed on that basis. It is dominated by a more worthy impulse; it rests on a higher law. True business represents the mutual organized effort of society to minister to the economic requirements of civilization. It is an effort by which men provide for the material needs of each other. While it is not an end in itself, it is the important means for the attainment of a supreme end. It rests squarely on the law of service. It has for its main reliance truth and faith and justice. In its larger sense it is one of the greatest contributing forces to the moral and spiritual advancement of the race.

    welfare-stateStanford University’s Michael J. Boskins wants to talk about disease and dysfunction. It’s not a medical condition, though; it’s an economic one.

    Far too few governments rein in their countries’ bloated welfare states before disaster strikes. As a result, some citizens eventually suffer the economic equivalent of a heart attack: wrenching declines in living standards as they are victimized by unsustainable programs’ endgame. Greece and the city of Detroit are only the most recent grim examples.

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    Acton Institute President Rev. Robert A. Sirico made an appearance on The Price of Business with host Kevin Price on Business 1110 KTEK in Houston, Texas. The conversation focused on the importance of liberty and the vital need to understand the foundations of our freedoms. You can listen to the interview via the audio player below.