Category: General

National Review Online’s Kathryn Jean Lopez talks to Rev. Sirico about his new book, Defending the Free Market: The Moral Case for a Free Economy, the link between economic liberty and public morality, and the differences between socialism and capitalism:

LOPEZ: How can you get more greed with socialism than capitalism?

FR. SIRICO: To the extent that socialism holds back creativity and thus productivity, it increases poverty. When people become desperate, even good people can become self-centered. Few of us are at our best in crowds where everyone is trying to get out the same exit, or when trying to grab for the last remaining sale item. Socialism begins with the material world (the redistribution of pre-existing things); capitalism begins with ideas and dreams (the creation of things). Socialism increases the hoarding instinct and often places power in the hands of petty dictators (wait in line in a governmental office to see what I mean). We all know where that leads.

Of course, I am not saying that a system of free exchange will abolish greed. But even here, free markets and competition tend to temper greed, subordinating it to the service of others, which is the only way you are going to be successful in the market.

Read more . . .

Blog author: jcarter
Monday, July 9, 2012
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During the Revolutionary Era, Americans had the highest per capita income in the civilized world and paid the lowest taxes, says Thomas Fleming, and they were determined to keep it that way.

By 1776, the 13 American colonies had been in existence for over 150 years—more than enough time for the talented and ambitious to acquire money and land. At the top of the South’s earners were large planters such as George Washington. In the North their incomes were more than matched by merchants such as John Hancock and Robert Morris. Next came lawyers such as John Adams, followed by tavern keepers, who often cleared 1,000 pounds a year, or about $100,000 in modern money. Doctors were paid comparatively little. Ditto for dentists, who were almost nonexistent.

In the northern colonies, according to historical research, the top 10% of the population owned about 45% of the wealth. In some parts of the South, 10% owned 75% of the wealth. But unlike most other countries, America in 1776 had a thriving middle class. Well-to-do farmers shipped tons of corn and wheat and rice to the West Indies and Europe, using the profits to send their children to private schools and buy their wives expensive gowns and carriages. Artisans—tailors, carpenters and other skilled workmen—also prospered, as did shop owners who dealt in a variety of goods. Benjamin Franklin credited his shrewd wife, Deborah, with laying the foundation of their wealth with her tradeswoman’s skills.

Read more . . .

Blog author: jcarter
Friday, July 6, 2012
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The Ideal Economy of Wilhelm Roepke
Ralph E. Ancil, The Imaginative Conservative

We are often told that among the great benefits of our modern capitalist economy are our expanded choice, free­dom, and power to get what we want. And yet at the same time it is evident that there is still a deep and pervasive sense of dissat­is­fac­tion among us, as though the more we get what we want, the less happy we are.

More on the President’s Uninsured Tax
Veronique de Rugy, National Review Online

There has been, understandably, a lot of attention paid to the tax that uninsured Americans will have to pay if they decide not to buy insurance. I find this data useful to understand how it may work . . .

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If you, or someone you know, are searching for last-minute scholarship opportunities, I invite you to please take the time to learn more about the scholarship programs offered through the Acton Institute.

Through the Calihan Academic Fellowship program, Acton’s Research department offers scholarships and research grants from $500 to $3000 to graduate students and seminarians studying theology, philosophy, economics, or related fields. Applicants must demonstrate the potential to advance understanding in the relationship between theology and the principles of the free and virtuous society. Such principles include recognition of human dignity, the importance of the rule of law, limited government, religious liberty, and freedom in economic life. Please visit the Calihan Academic Fellowship page on our website to download applications and obtain additional information about eligibility, conditions, the selection process, application requirements, and deadlines. In order to qualify for the upcoming deadline for the 2012 Fall Term, all application materials must be postmarked by July 15.

Blog author: jcarter
Thursday, July 5, 2012
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Why free enterprise is about morals, not materialism
Arthur C. Brooks, FoxNews.com

It’s not an easy time to be a free enterprise advocate in America. For years, we thought we had won. After all, almost no self-respecting public figures call themselves socialists anymore.

How to Put a Waitress Out of Work
Michael Saltsman, Wall Street Journal

When the government forces restaurants to pay servers more, jobs and tip income go down.

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Because there’s nothing sweet about it.

As the 2012 Farm Bill moves through Capitol Hill, the policy debates are ramping up. The bill, projected to seriously cut the deficit, has garnered bipartisan support thus far, but will likely meet more resistance in the House. Whether or not the 2012 Farm Bill will cut its projected $23 billion dollars is subjective. Fluctuating crop prices and the extent to which the weather cooperates (pray for rain) will determine that. What is certain, however, is that under the the proposed legislation, Americans will continue to pay too much for sugar. As it stands now, the bill keeps the existing sugar program entirely intact. This benefits the 61,000 Americans employed in the sugar industry and works to the detriment of taxpayers, sugar farmers in the developing world, and the 988,000 U.S. employees in industries that rely on sugar.

U.S. sugar policy, touched on in PowerBlogger John MacDhubain’s Tuesday post and Tad DeHaven’s Cato post from June, is essentially mercantilism and a prime example of regulation getting in the way of economic progress. On average, taxpayers spend $2.4 billion annually on sugar to raise $1.4 billion for American sugar producers.

What’s more, these government-mandated favors naturally come at the expense of others. Think of the sugar farmer in the developing world, whose access to economic liberty is severely limited by the U.S. government’s policy of price supports, trade restrictions, and domestic quotas. Then consider the American jobs lost when, about a decade ago, Life Savers moved a plant from Holland, Michigan across the border into Canada. The move cost Americans hundreds of jobs while saving the candy company $90 million. The Coalition for Sugar Reform estimates that for every American sugar growing job saved by the policy, three more are lost.

Fiscal policies cannot avoid moral consequences. Job loss and the stifling of economic development are moral issues just as much as they are fiscal or political. The way forward demands new policies rooted and sound economic and moral thinking. Presently, American sugar policy is not only fiscally inefficient, it’s morally bankrupt. And there’s the bad jokes.

Have a new book, or one not so new, that you’d like to recommend to PowerBlog readers for packing away to the beach and vacation spot? Add your picks to the comment box on this post.

Let’s begin with five books selected by Acton Research Director Samuel Gregg, who was a contributor to National Review Online’s symposium, “Got Summer Reading?”

By Samuel Gregg

For those who sense we’re presently reliving the 1930s (sigh), this is the book Paul Krugman and the other high priests of the economic left don’t want you to read. Anyone searching for an account of the New Deal that simply tells the truth about how and why it failed will benefit from reading Amity Shlaes’s The Forgotten Man (2008). Her well-written narrative of the Roosevelt administration’s failures and arbitrariness as it wrestled with the Great Depression not only reveals the New Dealers as truly out of their depth; it also indirectly raisesquestions about some disturbing trends in contemporary American political and economic life.

Another book that gets beneath superficial commentary on a subject that needs further discussion is David Satter’s It Was a Long Time Ago, and It Never Happened Anyway (2012). As we all know, the Left in America and Europe (in fact, everywhere) has never really acknowledged the full barbarity of Communism. Satter’s text, however, underscores just how much denial and downplaying of the sheer moral and physical destruction wrought by the Soviet experiment continue to poison contemporary Russian politics and culture. (more…)