Category: News and Events

Quoting former Chairman of the Joint Chiefs of Staff Admiral Mike Mullen, Mitt Romney was right to make the point that the federal deficit is the biggest national security threat to our country. Romney has also been critical of President Obama for failing to resolve significant cuts to defense spending under the Budget Control Act. Both political parties agree these cuts would be a disaster and they were implemented primarily as a motivational mechanism for real budget reform.

While cuts to defense will not solve our budget crisis, considering the depth of our spending mess, defense cuts can’t be ruled out entirely. Acton’s own principles for budget reform declare, “While no federal spending measures should be immune from cuts, our funding priorities should reflect the constitutional responsibilities and duties of the federal government.”

The defense budget was raised dramatically over the last decade to combat terrorism and fight two wars. Certainly as some forces draw down, savings can be made along with new investments for national defense and readiness. At home, we also have a moral obligation to care for our wounded warriors, which I addressed at greater length in a 2009 commentary, “Veterans First on Health Care.”

The challenge of course is securing savings while not compromising our constitutional charge to defend the country. Defense spending and defense budgets are a complex subject, but there are areas for savings. The military has a fairly long tradition of acting in one degree or another as a social laboratory. Military social programs continue to swallow up even more of the defense budget. I leave you with these words offered by Allen Baker in a discussion I had with him this morning. Baker, a combat veteran, served as a naval aviator:

We are three aircraft carriers short of providing absolute minimum coverage. When the “Arab Spring” sprung, guess what wasn’t in the Mediterranean Sea for the first time in a half-century? (Hint for Pres Obama: It’s a ship where airplanes take off and land). Ditto when terrorists murdered our ambassador in Benghazi. No U.S. carriers nearby (despite the clearly elevated threat). That’s because we have too few, and the ones we have are either worn out, or are wearing out at a faster-than-programmed rate due to the extremely high operations-tempo . . .

They are building multi-million dollar child development centers in places like Columbus, Miss. while the Training Squadrons have broken jets sitting idly on the ramp for lack of parts and maintenance . . .

The Army needs new tanks. Smaller, faster, cheaper. New helicopters, too. Less child development and ‘total warrior support’ and just more warriors and weapons. Simple stuff, really.

At some point in tonight’s foreign policy debate between the two presidential candidates, Governor Mitt Romney should send his very capable inner wonk on a long coffee break and press a big-picture truth that otherwise will go begging: America’s strength on the international stage requires economic strength, and our economic strength cannot long endure under the weight of a government so swollen in size that it stifles human enterprise.

The connection between economic freedom and economic growth is well-established. The connection between the relative strength of a nation’s economy and its strength on the international stage is also well established.

There are a lot of reasons for this, but it’s maybe easiest to grasp by thinking about technology. Our strength rests partly on our position as a technology leader, which allows our military to do more with less. But we’re unlikely to maintain that position of leadership if our government habitually suffocates our high-tech entrepreneurs under high taxes and hyper-regulation.
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Blog author: mhornak
Friday, October 19, 2012
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Is the “secular vs. sacred” worldview struggle just another first-world problem? Join us in a discussion of this topic in the AU Online series Freedom and Virtue in the Developed World. The first lecture of this AU Online series will be held on Tuesday October 23 at 6:30pm EDT. Don’t miss your chance to explore this important topic!

In the Freedom and Virtue in the Developed World series, Acton’s Director of Research, Dr. Samuel Gregg, will lead us through a theoretical and practical reflection of the far ranging economic, social, and political causes and impacts of the West’s identity crisis.

If you’re interested in participating but might not have the extra time in your schedule, don’t worry! Everyone who registers for an AU Online series will have access to recordings of the live online lectures to view at their convenience. Visit the AU Online website for more information or to register. For further questions about AU Online, please contact the AU Online team at auonline@acton.org.

This week I wrote about the dignity of paying taxes (among other ways of contributing to social flourishing). But as we know, not all taxes are created equal. Indeed, as Antony Davies and James Harrigan write this week at US News, “Politicians are in the business of buying votes with tax breaks and sweetheart deals for their preferred constituencies, and they have to offset these deals by taxing disfavored constituencies at increased rates. The longer this game is played, the more convoluted the tax code becomes.”

As I argued previously at Capital Commentary, this amounts to a kind of back door social engineering (as well as playing favorites, picking winners, and so on). The fundamental purpose of taxation is not to buy votes and give preference to lobbies and special constituencies. Instead, as I write, “The point of taxation is to raise funds to enable the government to fulfill its moral, political, and social responsibilities.” Such a view is ultimately at odds with a Utilitarian theory, which considers taxation to be a tool rather used “to maximize overall well-being in society.” Matthew Weinzierl argues for greater attention to a theory of Equal Sacrifice, which on Weinzierl’s account “assumes individuals have the first claim to their output, and that they voluntarily agree to form societies that collect taxes in order to purchase public goods.”
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Blog author: dpahman
Friday, October 19, 2012
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Working Paper: “The Eurozone Debt Crisis — The Options Now
Buchheit, Lee C. and Gulati, G. Mitu
SSRN Working Papers, October 8, 2012

The Eurozone debt crisis is entering its third year. The original objective of the official sector’s response to the crisis — containment — has failed. All of the countries of peripheral Europe are now in play; three of them (Greece, Ireland and Portugal) operate under full official sector bailout programs.

The prospect of the crisis engulfing the larger peripheral countries, Spain and Italy, has sparked a new round of official sector containment measures. These will involve active intervention by official sector players such as the European Central Bank in order to preserve market access for the affected countries.

This paper surveys the options now facing the sovereign debtors and their official sector sponsors. It concludes that there are no painless or riskless options. In the end, the question may come down to this — to what extent will the official sector sponsors of peripheral Europe be prepared to take on their own shoulders (and off of the shoulders of private sector lenders) a significant portion of the debt stocks of these countries during this period of fiscal adjustment? (more…)

Rev. Robert A. Sirico appeared on the Frank Pastore Show Oct. 15 to discuss Vice President Joe Biden’s claim that the HHS mandate was not a threat to religious liberty and the quick rebuke he received from the Catholic bishops. Rev. Sirico also discussed broad faith and policy themes, including how best to reduce poverty, in this hour-long program.

Click the media player below to listen:

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On National Review Online, Acton Research Director Samuel Gregg offers an analysis of last night’s debate between President Barack Obama and Gov. Mitt Romney. Gregg begins with the assertion by Melinda Henneberger of the Washington Post that the candidates are ignoring poor and working-class Americans. Gregg responds:

… what’s generally missing from the discussion of poverty in the context of this presidential election — though Romney did obliquely reference it in the second debate — is acknowledgment that: (1) the economic causes of impoverishment are more subtle and less amenable to wealth redistribution than the Left is willing to concede; and (2), with a few exceptions, liberals are generally reluctant to acknowledge some of poverty’s non-economic causes, not least because it throws into relief some of the more destructive effects of their cultural agenda.

If poverty was simply a question of wealth redistribution, the sheer amount of dollars spent since the not-so-Great Society programs of the 1960s should have resolved the problem. In 2011, Peter Ferrara calculated that “total welfare spending [in 2008] . . . amounted to $16,800 per person in poverty, 4 times as much as the Census Bureau estimated was necessary to bring all of the poor up to the poverty level, eliminating all poverty in America. That would be $50,400 per poor family of three.”

The effects in terms of reducing poverty have, however, been underwhelming. As Ferrara observes: “Poverty fell sharply after the Depression, before the War on Poverty, declining from 32% in 1950 to 22.4% in 1959 to 12.1% in 1969, soon after the War on Poverty programs became effective. Progress against poverty as measured by the poverty rate then abruptly stopped.” In short, America’s welfare state, which now easily accounts for the biggest outlays in the federal government’s annual budget, has proved inadequate at realizing one of its central goals.

Read “Who’s Really Forgotten the Poor” by Samuel Gregg on NRO.