Category: Economics

Bob Geldof

Bob Geldof

Good story in the Wall Street Journal today about rocker-activist Bob Geldof and how he’s spearheading a push by private-equity firms into Ethiopia to effect a “historic shift from aid to trade.” Investments are flowing into private sector projects such as a flower farm, a juice company, pipeline building and commodity exchanges.

A number of high-profile investors have recently shown up here. KKR & Co., the New York-based private-equity firm, last summer bought control of a rose farm, Afriflora, for about $200 million, its first investment in Africa. Blackstone Group plans to build a $1.35 billion pipeline to bring gasoline to the capital, Addis Ababa. Hedge-fund manager Paul Tudor Jones is backing a $2 billion geothermal power project.

The investors are following in the footsteps of Irish punk rock singer turned activist Bob Geldof, whose Live Aid concerts 30 years ago this summer raised about $145 million for the victims of a devastating Ethiopian famine. Mr. Geldof now chairs 8 Miles LLP, a London-based private-equity firm that invests in Ethiopia. 8 Miles raised a $200 million fund in 2012; Mr. Geldof put in a few hundred thousand dollars. “They don’t have to die in vast numbers before we pay attention,” Mr. Geldof said in an interview. “The potential rewards in Africa are far greater than anywhere else.”

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smile-curveThe smile curve is an idea came from the computer industry, but it applies broadly. It’s a recognition, in graph form, that there is good money to be made (or more value to be added) in research and development, and, at the other end, in marketing and retailing.

It’s also a recognition that there is almost no profit to be made, except in high volumes, in the middle areas of manufacturing (assembly or shipping). This has hurt the American middle class because we used to be a manufacturing nation. Yet today, even where manufacturing is strong, it does not usually pay well.

It’s one reason so much factory work has gone overseas (especially textiles and assembly). In the early stages of a product, there is good money in the middle, but when it becomes common to make a car or a computer or a vacuum cleaner, then the value of manufacturing goes down, as we all know. (more…)

BroadwayUMC-naveIn the early 2000s, Broadway United Methodist Church had a series of outreach programs, including a food pantry, after-school program, clothing ministry, and a summer youth program that served up to 250 children per day. Today, these programs are completely absent, and it’s no accident.

“They’ve been killed off,” writes Robert King in a fascinating profile of the transformation for Faith and Leadership. “In many cases, they were buried with honors. But those ministries, staples of the urban church, are all gone from Broadway. Kaput.”

“One of the things we literally say around here is, ‘Stop helping people.’” says Rev. Mike Mather, the church’s pastor. “I’m serious.”

Although Mather was the first to initiate many of these programs, with some efforts going back as far as the late 1980s, after a series of circumstances, including a series of community tragedies, he began to believe that a new approach was needed. “I started paying attention to what they really cared about,” he says. (more…)

forest-path-stewardship1Being a follower of Jesus includes a hopeful vision of the future. In the fullness of the kingdom of God, we will live on a new earth as embodied humans, worshiping and working, married to Christ and in fellowship with sisters and brothers from all nations (Rev. 21-22). There will be no more war, perfect justice, a restored ecology and each person will steward gifts and responsibilities consistent with his or her created design and fidelity during this present age (Isaiah 2; Mt. 25).

The resurrection of Jesus and the gift of the Holy Spirit are the historical/personal guarantees of this eschatological vision (Acts 2-3). This audacious Christian hope inspires our covenant fidelity to the Triune God and concrete service to the world. Because of God’s unconditional love expressed in the Cross-and the liberating power of the resurrection, we now serve others sacrificially and all our present good works are signposts of the future.

This vision – eloquently expressed by Scot McKnight, N.T. Wright and Cherith Fee-Nordling among others – avoids utopian fantasy and dispensational fatalism. Our efforts are substantial but partial, for we are saved in hope of the final redemption (Ro. 8:18-27). We are not merely gathering decisions before the Rapture, but making disciples of all nations that work out their salvation in local communities that evangelize and seek the common good (Phil 2:12-16). Our disciples-making includes all elements of human flourishing, from the inner life of contemplation to creating value through our work. (more…)

katy-big-snow-virginia-burton“No work? Then nothing else either. Culture and civilization don’t just happen. They are made to happen and to keep happening — by God the Holy Spirit, through our work.” –Lester DeKoster

As we begin to discover God’s design and purpose for our work, there there’s a temptation to elevate certain jobs or careers above others, and attempt to inject our work with meaning from the outside. Yet as long as we are serving our neighbors faithfully, productively, ethically, and in obedience to God’s will, the meaning is already there.

We can wrap our imaginations around this reality in a number of ways, but one helpful thought experiment is to imagine what would happen if a particular job or task were to be left undone. With our newfound prosperity and privilege, it is sometimes easy to dismiss certain forms of manual or “unglamorous” labor (the plumber, the builder, the garbage collector) in favor of supposedly “higher pursuits.” Yet if any of the workers in these areas vanished, what would happen to civilized society? Indeed, in a way, the simple, tangible nature of such work often provides the clearest illustration of the service and sacrifice God has called us to, bearing fruit we can quite easily taste and see.

I was reminded of this when reading my kids Katy and the Big Snow, the classic children’s story by Virginia Lee Burton (author of another timeless tale about work). Burton tells the story of Katy, a “beautiful red crawler tractor” who was “very big and very strong” and was able to push either a bulldozer or snowplow, depending on the season. (more…)

There will be some twists and turns here, so hold on. Earlier this month, the BBC highlighted what it called “YouTube sensation ‘I, Russian Occupier'” the hit propaganda film that “feels more like the opening sequence of a big budget Hollywood movie than a homemade political message.” So far, it’s racked up 5.6 million views and more than 31,000 comments. (“likes” are outpacing down votes by a 5-1 margin. The video also “attacks Western values, dropping in visual references to same-sex parenting, and rounds off by ‘sending’ the entire message to US President Barack Obama.”

The BBC identified the creator of the video as Evgeny Zhurov, a 29-year-old motion graphics designer from Russia, who claimed he was not paid for the work. “A full-scale information war is being waged against Russia. I’m just taking part in the war on Russia’s side,” Zhurov told the BBC. “My goal is high-quality pro-Russian propaganda.”

Or were the creators working for Russians at the highest level? The Age, an Australian newspaper, reports that the video was actually funded by the Russian Orthodox Church. Nick Miller, citing Russian website Medialeaks.ru and a broadcast report, identifies producers from a studio called My Duck’s Vision (MDV) who “confessed” it was their work. When pressed, the producer said: “It was an order from [the] Russian Orthodox Church. It was not our idea.” He added that, “it was an order we’ve been paid, but still for us it’s just a stupid script, we’ve made [it] for fun.” (more…)

Blog author: ehilton
Friday, March 20, 2015
By

jane marcetJane Marcet is remembered most often for her scientific work in chemistry. Born in London in 1769, she was well-educated, and shared a passion for learning with her father. When she married Alexander Marcet, a physician, she would proof-read his work and eventually decided to publish her own thoughts.

In a series of pamphlets entitled, “Conversations,” Marcet wrote on chemistry, botany, religion, and economics. She was a member of the London Political Economy Club, founded by James Mill.

In the early 19th century there were no academic societies or professional associations for economists. The Political Economy Club was a way to establish a scientific community, test ideas, and provide peer review for their work.

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1940Today’s parents are obsessed with setting their kids on strategic paths to “success,” filling their days with language camps, music lessons, advanced courses, competitive sports, chess clubs, museum visits, and so on.

Much of this is beneficial, of course, but amid the bustle, at least one formative experience is increasingly cast aside: good, old-fashioned hard work.

In an essay for the Wall Street Journal, Jennifer Breheny Wallace points to a recent survey of U.S. adults where “82% reported having regular chores growing up, but only 28% said that they require their own children to do them.” Paired with the related decreases in youth employment outside the home, such a trend offers a worrisome glimpse of our economic future, but even more troubling for those who believe that work with the hands produces far more than mere material benefits. (more…)

che quevara tWouldn’t it be nice if we could all just get along? We could share all our stuff. You know, you could borrow my cashmere sweater that I saved up for, and I could borrow your Che Guevara t-shirt you got at in the dollar bin at the local flea market. Isn’t that what Christians are supposed to do?

John Zmirak thinks otherwise. At The Stream, Zmirak takes on those Christians who have a warm, fuzzy spot in their misguided hearts for what he calls “friendly fascism.” He reflects on Elizabeth Stoker-Bruenig’s latest piece in the New Republic, in which she scolds conservatives for “fighting” Pope Francis’ attempts to open the Church up to new economic ways of thinking.

She credits her discovery of Catholicism to the influence of a priest who called himself a “Christian socialist.” You remember socialism — the ideology that was denounced by Pope Leo XIII and Pope Pius XI even before its most orthodox forms claimed the lives of some 94 million people. It’s the system which still governs North Korea, Cuba and Venezuela, and in more diluted versions is slowly poisoning Western Europe.

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cogIn a recent piece for the Wall Street Journal, Rachel Feintzeig sets her sights on the latest trends in corporate “mission statements,” focusing on a variety of employer campaigns to “inject meaning into the daily grind, connecting profit-driven endeavors to grand consequences for mankind.”

Companies have long cited lofty mission statements as proof they have concerns beyond the bottom line, and in the past decade tech firms like Google Inc. attracted some of the economy’s brightest workers by inviting recruits to come and change the world by writing lines of code or managing projects.

Now, nearly every product or service from motorcycles to Big Macs seems capable of transforming humanity, at least according to some corporations. The words “mission,” “higher purpose,” “change the world” or “changing the world” were mentioned on earnings calls, in investor meetings and industry conferences 3,243 times in 2014, up from 2,318 five years ago, according to a Factiva search.

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