Category: Economics

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.
(more…)

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:

(more…)

Video-GamesWhy are working-class men falling behind? Economic, familial, and lifestyle factors all play a role. One of the main reasons less-educated men are losing economic opportunities, explains anthropologist Michael Jindra, is that they are gaining more ways to indulge in entertainment and leisure:

Dr. Leonard Sax’s Boys Adrift lists video games among the causes of boys’ school struggles, not because they drive boys to violence, but because they create a need for stimulation, crowd out reading, and lessen boys’ focus in school and other activities. (Boys play console games, commonly used for sports and violent games, at four times the rate of girls.) Rates of ADHD have skyrocketed, and the causes of this are unclear, but overstimulation may play a role. These patterns can also lead later in life to heavy television viewing, often of sports (witness the domination ESPN has over the male gaze), and heavy online activity, such as viewing porn.

[. . .]

All of these things mentioned above—early reliance on stimulating entertainment, lower educational attainment, disconnection from families and role models, and the attractions of different, “edgy” subcultures—contribute to a widening gulf between those more connected to family, work, and society, and those without these commitments. While men are losing connections, women continue to participate in the labor force, attend religious services more often, and belong to other community and civic organizations. This is partly because many have dependent children and need to support them, whereas men can to a large extent avoid this responsibility.

Read more . . .

family-reading-bible-3The decline of marriage and fertility is one factor in the global economic crisis, says sociologist W. Bradford Wilcox:

The long-term fortunes of the modern economy depend in part on the strength and sustainability of the family, both in relation to fertility trends and to marriage trends. This basic, but often overlooked, principle is now at work in the current global economic crisis.

That is, one reason that some of the world’s leading economies — from Japan to Italy to Spain to the euro zone as a whole — are facing fiscal challenges is that their fertility rates have been below replacement levels (2.1 children per woman) for decades. Persistent sub-replacement fertility eventually translates into fewer workers relative to retirees, which puts tremendous strains on public coffers and the economy as a whole. Indeed, one recent study finds that almost half of the recent run-up in public debt in the West can be attributed to rapid aging over the last two decades.

Read more . . .

Writing in The Detroit News, Rev. Robert A. Sirico looks at Pope Francis’ recent Apostolic Exhortation, the “much talked about, but little-read” document titled “The Joy of the Gospel” with a special emphasis on how the pontiff understands the problem of poverty. The president and co-founder of the Acton Institute notes how Francis “speaks boldly through effective and moving gestures.” Excerpt:

It is no surprise that the man who took as his model and name the model of il poverello of Assisi would place the poor as a central concern of his pontificate: their dignity, their rights and their sustenance. Yet, the spontaneous gestures and the impromptu manner in which they are displayed ought not to beguile us into thinking this pope is offering a superficial dichotomy between left and right; between capitalism and socialism. To think that any pope, but especially this pope, is animated in his concern for the poor and vulnerable by a particular political ideology is to miss him completely.

While renouncing the notion that the market alone is sufficient to meet all human needs, Francis is also prepared to denounce a “welfare mentality” that creates a dependency on the part of the poor and reduces the Church to the role of being just another bureaucratic NGO. The complexity of his thought surprises some, on both the Right (some of whom worry, needlessly, that he is a liberation theologian) and the Left (who are already using his words to foment a political “Francis Revolution” in his name). Such tendencies reveal a rather anemic understanding of this man but also of Catholicism, which has historically been comfortable balancing the tensions of apparent paradoxes (Divine/human; Virgin/Mother; etc.). It is too facile a temptation to collapse 2,000 years of tradition, commentary and lived experience into four or five politically-correct hot button sound bites that are the priority, not of the Church, but of propagandists with an agenda.

Read “Pope Francis, without the politics” by Rev. Robert A. Sirico in The Detroit News.