Category: Economics

sower1The faith and work movement has grown significantly over the past decade, yielding a range of researchers and institutions that seek to explore the intersections of work, economics, and the Christian life.

Each year, Acton University offers a unique center of gravity for these intersecting voices, and now, in a new special report from the Washington Times, the Institute for Faith, Work, and Economics has sponsored a similar symposium of thinkers, each tackling a unique angle on economic flourishing and the church.

Authors include familiar Acton partners such as Michael Novak, John Stonestreet, Amy Sherman, and Andy Crouch, as well as leading figures in the church (Tim Keller, Os Guinness) and the public square (Governor Sam Brownback, House Speaker Paul Ryan). (more…)

redistribution[Note: This is the second in an occasional series evaluating the remaining presidential candidates and their views on economics and liberty. You can find the first article here.]

In the previous article in this series I explained that the key to understanding Donald Trump’s economic policies is the recognition that, for him, policy and principle are secondary to process. The overriding concern for Trump is not money or wealth but deal-making.

“I don’t do it for the money . . . I do it to do it,” wrote Trump in The Art of the Deal. “I like making deals, preferably big deals. That’s how I get my kicks.”

This flippant disregard for money is the type of thing that is only said by saints and trust fund kids. And Trump is no saint.

Trump started out in business with a loan from his father worth almost $7 million in 2016 dollars. He also inherited between $40 and $200 million when his father died in 1999. As a rich kid, he’d be fabulously wealthy even if he never worked a day in his life.

Because he has never had to be concerned about earning money, he has always treated it as a measuring stick. For Trump, dollars are the main way that “deals” are measured. The more dollars you can extract from someone else, the more you “win.”

This may sound like the normal process of capitalism, but it’s not. In a free enterprise system (at least in an ideal one) “deals” are mutually beneficial to both parties. The deal may not be equally beneficial to both parties or even beneficial in the same way, but each side must believe they are better off for having entered into an economic exchange. If they did not, they would not have agreed to the deal.

There is a way, however, to “win” at a deal without everyone involved agreeing that it was mutually beneficial: get the government to redistribute someone else’s property to you.
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Blog author: jcarter
Wednesday, May 11, 2016
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forgodandprofitIf we forget finance’s indispensable role in modern economies, says Samuel Gregg, research director for the Acton Institute, in an op-ed for The Detroit News, it’s guaranteed that everyone will be worse off.

Finance establishes links between the economic present and economic future of individuals and communities. It helps us manage risk and develops methods for continually enhancing the management of risk over the short, medium and long term. And it creates economic value by enabling money to assume the characteristics of capital.

Note that none of these functions are exercises in radical individualism. Finance can certainly help make us independent, but it also increases and is a sign of our interdependence.

Read more here. The op-ed is adapted from Gregg’s For God and Profit: How Banking and Finance Can Serve the Common Good.

creative-service-house-flow3“The fruit of our labor is fellowship. It’s community. It’s relationship.”

Global trade has suddenly emerged as a hot conversation in the current election cycle, with candidates like Donald Trump and Bernie Sanders leading the charge toward severe protectionism, while the others quietly shrug and nod along accordingly.

Voters of all ideological stripes are responding with fervor, calling for more trade barriers and increased manipulation of prices and wages, hoping to insulate the American economy from our global neighbors and “keep what’s ours.”

Such stances quickly fall apart when one looks to basic economic theory. But well before and beyond its threats to material wellbeing, protectionism inhibits and prohibits something far more important: widespread creative service and the transcendent beauty of free and open exchange. (more…)

LessiusCover-01In his famous work, History of Economic Analysis, economist Joseph A. Schumpeter gives a favorable nod to the works of Leonardus Lessius (1554–1623), sparking a fair amount of interest in the 16th-century Jesuit moral theologian.

CLP Academic has now published On Sale, Securities, and Insurance, a selection from Lessius’ most influential contribution to early modern economics, ethics, and law. The book offers the first full English translation of key sections of the second book (On Justice) of Lessius’ treatise On Justice and Right (De iustitia et iure), specifically chapters 21 (On Sale-purchase) and 28 (On Suretyship, Insurance, Pledge, and Mortgage).

Based at the Jesuit College in Louvain, Lessius earned the reputation as “Oracle of the Netherlands” for the advice and analysis he offered to local merchants, jurists, and political rulers regarding matters of conscience, duty, and justice.

As translator Wim Decock writes in the introduction: “Though dwelling on the virtues of prudence, fortitude, and temperance too, the better part of the treatise includes a systematic treatment of the virtue of justice and, particularly, of property, torts, and contract law.” (more…)

“I never saw a supply and demand curve in seminary. I should have.”

This was written by Virginia Congressman David Brat in an academic paper back in 2011, when he was still an economics professor at Randolph-Macon College. The paper offers a unique exploration of the intersections of economics, policy, and theology, promoting a holistic view of economic freedom and social justice united with Christian witness.

Brat, who holds both a Master of Divinity and a Ph.D in economics, has been in Congress for just over a year, and in a recent interview with Ben Domenech, it appears as though he’s retained much of that original perspective.

The discussion covers a range of subjects (economics, education, foreign policy), but one of the more striking bits comes when Domenech asks Brat about the decline of religion in American life and the corresponding erosion of local communities and civic institutions. Brat’s response is wide and varied, but he begins by noting that modern society as a whole is now in “uncharted territory.” (more…)

chobani-ceoAs politicians continue to decry the supposed “greed” of well-paid investors, business leaders, and entrepreneurs — promoting a variety of reforms that seek to mandate minimums or cap executive pay — one company is demonstrating the value of economic freedom and market diversity.

Chobani, a privately owned greek yogurt manufacturer, recently announced it will be giving a 10% ownership stake to its roughly 2,000 full-time workers, a move that could result in hundreds of thousands, if not millions, of dollars for some employees.

According to the New York Times:

Hamdi Ulukaya, the Turkish immigrant who founded Chobani in 2005, told workers at the company’s plant here in upstate New York that he would be giving them shares worth up to 10 percent of the company when it goes public or is sold.

The goal, he said, is to pass along the wealth they have helped build in the decade since the company started. Chobani is now widely considered to be worth several billion dollars.

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