Category: General

Acton’s director of research Samuel Gregg is up at Public Discourse, with a piece titled “Monetary Possibilities for a Post-Euro Europe.” With his usual mix of sophisticated economic analysis and reference to deep principles, Gregg considers European countries’ options should the eurozone fail. If that happens, he says, “European governments will have a once-in-a-lifetime opportunity to rethink the type of monetary order they wish to embrace.”

One such scenario is a three-way monetary division within the EU that reflects the differing political commitments and economic priorities of different nations. Germany and the more fiscally responsible eurozone members such as Austria, Finland, and the Netherlands could, for instance, decide to reconcile themselves to being the only ones with the necessary fiscal and monetary discipline to maintain a common currency.

Alongside this bloc would be two other groups. One would consist of those EU countries such as Britain, Sweden, and Denmark that have maintained their own monetary systems because of reservations about the euro’s implications for national sovereignty. Another group would include EU nations such as Greece, Portugal, and Italy that are simply unable or unwilling to embrace the disciplined monetary and fiscal policies required by a common currency; these nations would consequently find themselves outside the eurozone and reverting to their national currencies.

A more radical monetary opportunity for a post-euro EU would be currency competition. This was once proposed by Britain’s Margaret Thatcher as an alternative to the present common currency. Contemporary proposals for currency competition, such as that advanced by Philip Booth and Alberto Mingardi, involve the monetary authorities of different countries authorizing the use of currencies alongside the euro in domestic settings other than their own. Consumer choice rather than state sovereignty would thus ultimately determine which currencies were used.

Yet another option would be the embrace of what might be called a European gold standard. In the 1950s and 1960s, the German economist Wilhelm Röpke argued that European monetary integration could occur via a nucleus of countries agreeing to adhere to a gold standard, much as had happened somewhat spontaneously in the nineteenth century through a process of unilateral decision-making by individual countries. Once this had occurred, adherents of such a gold standard would have to insist upon all members maintaining monetary discipline as well as freedom and stability in foreign exchange markets.

The stability of the European currency would be assured not by EU bureaucrats, but by the gold standard itself, and by allowance for the expulsion of countries that abuse their big-boy privileges.

Britain just rejected an EU treaty because the Conservative Party decided Brussels was trying to capitalize on the Mediterranean crisis by grabbing more power. The three proposed currency models, Gregg argues, would maintain countries’ freedom by yanking monetary power from central bureaucrats who exercise political power. He reflects further on the composition and history of the eurozone, on the countries’ political and economic freedom, and on what Röpke would have to say in the rest of the piece.

In this week’s Acton Commentary, I examine Jesus’s famous parable of the Lost Sheep in the context of the Occupy Wall Street movement.

In the Gospel of Luke, Jesus tells the parable after some people grumble about him eating with “tax collectors and sinners.” Tax collectors at the time had a bad reputation of unfair business practices and government ties. Yet, Jesus tells the parable of a man who left ninety-nine sheep to find the one that went missing in order to caution his detractors about marginalizing even these tax collectors.

In light of this, does the “we are the 99%” rhetoric of the Occupy Wall Street movement, which implicitly insinuates that anyone in the top 1 percent has gotten there unjustly, amount to shunning the lost sheep (and others) of our society today? Read this week’s Acton Commentary for more.

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Unported Author: Another Believer

Blog author: dpahman
Wednesday, November 23, 2011
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In a recent BBC article, Sean Coughlan reports a novel idea from Oxford academic Will Crouch,

He argues that someone becoming an investment banker could create sufficient wealth to make philanthropic donations that could make a bigger difference than someone choosing to work in a “moral” career such as an aid charity.

Indeed, there seems to be an ever increasing suspicion, even among Christians, that certain career paths are per se more moral than others. However, as Fr. Robert Sirico writes in The Entrepreneurial Vocation,

Every person created in the image of God has been given certain natural abilities that God desires to be cultivated and treated as good gifts. If the gift happens to be an inclination for business, stock trading, or investment banking, the religious community should not condemn the person merely on account of his or her profession.

This is unfortunate, to say the least. Crouch argues that if more ethically inclined individuals would pursue careers in banking, for example, they would significantly increase the resources at their disposal to help those in need. According to Crouch,

The direct benefit a single aid worker can produce is limited, whereas the philanthropic banker’s donations might indirectly help 10 times as many people.

Using some basic, ball-park calculations, he estimates that “an ethically inclined banker who donated half their income could save 10,000 lives” throughout their working lifetime. What might be the difference in our neighborhoods, country, and world if more charitably inclined people were open to business related careers? Certainly, it is not everyone’s gift, and there is nothing wrong or deficient about being a social worker, for example, but perhaps there are some who have avoided such a path, such a calling, simply because of an unfair stigma.

Will Crouch offers a different perspective:

We are calling on people to be like Robin Hood, but by earning the money rather than stealing it.

A novel idea, if you ask me.

Blog author: jcouretas
Monday, November 21, 2011
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You have the fruit already in the seed. — Tertullian

Image-maker Alexander Tsiaras shares a powerful medical visualization, showing human development from conception to birth and beyond. (Some graphic illustrations.) From TEDTalks (TED stands for Technology, Entertainment, Design).

Well, that wasn’t a serious title: After an hour of reflection, I am forced to admit that pizza qua pizza is a morally neutral proposition. We might have thought it was politically neutral too, until Congress decided this week that pizza sauce still counts as a serving of vegetables in public school lunch lines.

The brouhaha over pizza’s nutritional status reminds one of the Reagan-era attempt to classify ketchup as a vegetable. The department of agriculture was tasked with cutting the federal school lunch budget but maintaining nutritional standards, which it proposed to do by reclassifying ketchup — acondiment up to that point — as a vegetable. The move would have saved schools the cost of an extra serving of vegies, but Democrats cried foul (hard to blame them), and ketchup was left alone.

At Acton we go in for the natural law, and tend to shun legal positivism, so Congress’s declaration on pizza doesn’t really change the way we look at it (which is, after an informal poll, as a mixture of a number of food groups, vegetables not among them since the tomato is a fruit).

Talking Points Memo takes a less metaphysical tack, and discovers to its outrage that (1) lobbyists for Big Pizza spent more than $5 million lobbying Congress to maintain the status quo, and (2) the reclassification of pizza as a non-vegetable might have helped lower the child obesity rate, which is alarmingly high.

When a democratic government begins making laws that harm particular business sectors, they hire lobbyists. If TPM thinks it has solved the problem of faction, it should reveal the solution before skipping right to complaining about its redundancy and assuming we’ve all made the same brilliant political discovery they have.

Otherwise, if they’re upset that the problems of faction have infected school lunch lines, they should remember that the only way to get the K Street money out would be to relinquish Congress’s micromanagement of what children eat for lunch.

And that brings us to the second point. TPM can’t believe that even though “the CDC estimates about 17 percent — or 12.5 million — of children between the ages of 2 and 19 are obese,” Congress is allowing public schools to continue passing off two tablespoons of salty pizza sauce as a vegetable.

But the 17 percent childhood obesity rate is not actually a result of Congressional action. Michelle Obama’s recent healthy eating campaigns admit as much — they’re aimed at parents.

Laws always have an effect on the character of citizenry — a fact which the left usually chooses to ignore — and much less frequently on its health. In the case of school lunches, it’s easy to trace the government take-over of lunchtime through parental disregard of nutrition to 17 percent childhood obesity.

If you teach parents that their children’s health is not their responsibility, they’ll stop worrying about it, but when your federal bureaucracy can’t keep their 74 million children healthy, you shouldn’t blame Domino’s and Papa John’s.

The Center for American Progress (CAP) has boldly rebutted the arguments of our own Kishore Jayabalan, director of Istituto Acton, concerning the Vatican’s note on a “central world bank.” It has done so by showing him to be lacking in “respect for the inherent dignity of human life.” … Yes, we are talking about that Center for American Progress.

In a feature on their website that purports to tie last month’s Vatican note to the Occupy Wall Street movement, CAP offers this smarmy response to the analysis Jayabalan gave.

Some conservative Catholic commentators are not as supportive, however….

Kishore Jayabalan of the conservative Catholic Acton Institute said that the note’s appeal to an international authority contradicts the church’s teaching that problems are best solved starting at local levels of authority, also known as the doctrine of subsidiarity.

What these conservatives are missing is that the note draws heavily from the tradition of Catholic social teachings on justice and respect for the inherent dignity of human life. This is where the Occupy movement finds an ally.

CAP has one-upped us doctrinally: where Jayabalan is concerned with minor theological nuances like the doctrine of subsidiarity, their minds are fixed on higher principles like respect for human dignity, the most immediate threat to which is the great and terrible free market.

“At heart, it is a moral enterprise,” say CAP’s Jake Paysour about Occupy Wall Street. Yes, except at the hearts of its camps, where women dare not go because their human dignity is respected only as much as strong men find it convenient.

CAP’s record on human dignity speaks for itself. Its position on the lives of unborn children, for example, could not be any more out of line with Catholic teaching on “justice and respect for the inherent dignity of human life.” It is shocking that CAP even uses those words: the suggestion that they give one hoot about Church teaching on human dignity is nonsense.

I will resist the temptation of a GetReligion-style dismantling of the feature, since it would sail right over their heads at CAP, but I must point out that the Church’s principles of social justice were not “set forth 80 years ago” in Quadrogesimo Anno, as the author claims, but rather 40 years before in Rerum Novarum (hence the second encyclical’s name — not that we should expect anyone there to have any Latin). I don’t mean to make an ad hominem argument, but if you can’t get that right, what are you doing trying to explain the relative weights of principles first explicated in Rerum Novarum?

In the future: If you’re going to use the words of an Acton Institute expert, it is expected that you will avoid the shameless contortion of facts and logic that CAP indulged in today.

If you’ve watched any football or baseball recently, you’ve probably seen this Audi commercial. It’s quite funny, and it’s right up Acton’s alley: it artfully distinguishes between proper and improper stewardship of one’s wealth. In this case, an awkward after dinner exchange shows what happens to the use of wealth when culture is diminished:

We have on the one hand a couple appreciative of the aesthetic triumphs of humanity (the Browns), and on the other, a couple of barbarians (the Joneses). In order to get to know each other, the Browns go over to the Joneses’ house for dinner, where they are struck by the Joneses’ art collection – the latter, with the Metropolitan Museum of Art, seem to be the world’s greatest collectors of the Dutch master Vermeer.

But it turns out that the Joneses are boors who have no idea of the value of their collection, and can appreciate only the Smiths’ expensive car. Their wealth may have been acquired by the virtues of industry and thrift, but it is wasted if it is not spent on things of value.

On MercatorNet, Sarah Phelps Smith writes what must have been intended as a companion piece to the Audi commercial: a review of the Florentine art exhibit Money and Beauty; Bankers, Botticelli and the Bonfire of the Vanities running right now in that city. The exhibit is a collection of banking artifacts, coins, and art from the Medicis and other Florentine banking families.

The exhibit is particularly relevant right now because, as Wall Street has done, the Medicis became wealthy by providing indispensible financial services, and along the way they made some rather imprudent decisions (Dr. Smith provides the example of business done with royalty, who could default at will). The Medicis also supported the work of Botticelli, Leonardo, and others Renaissance geniuses, and for that, Western Civilization will always be in their debt.

It’s easy to point out that a months-long drum circle in the middle of New York City isn’t a cultural achievement, no matter how many sleepless nights are inflicted on the neighbors. But what should have instead of those drum circles? Besides making you depressed about federal funding of the arts (with apologies to cowboy poets in all states), Dr. Smith reminds us that you can’t take it with you:

Do we, as a culture, use “disposable income” to foster artists who have put the time and effort into learning their craft so that they can make beautiful objects with a beauty that will last five hundred years? Perhaps the exhibition can leave us with a desire to encourage people with means to commission, support and propagate works of art that will be timelessly beautiful and universal in appeal, so that when history looks at the products of our culture we (or rather those who come after us) will find our legacy worth looking at.

The Audi marketing team breaks the cringe making silence in their commercial with the text “True greatness should never go unrecognized.” They playfully acknowledge that their big sedans are toward the bottom of the important-things-in-life scale, and that someone for whom a Vermeer might as well be a Thomas Kinkade is not living a fully human life. It’s funny — you can’t be in the business of selling high end cars without rejecting cultural relativism.