Category: News and Events

Below is an excerpt from a 1925 Washington Post editorial on President Calvin Coolidge’s Inaugural Address. The comments speak directly to the moral arguments Coolidge was making for a free economy. It is the kind of moral thinking about markets and taxes we desperately need today from our national leaders.

The excerpt comes from an excellent book, The High Tide of American Conservatism: Davis, Coolidge, and the 1924 Election by Garland S. Tucker, III.

Few persons, probably, have considered economy and taxation moral issues. But Mr. Coolidge so considers them, and his observations give a fresh impression of the intensity of his feeling on this subject. He holds that economy, in connection with tax reduction and tax reform, involves the principle of conservation of national resources. A nation that dissipates its resources falls into moral decay. Extravagance lengthens the hours and diminishes the rewards of labor. “I favor the policy of economy,” says Mr. Coolidge, “not because I wish to save money, but because I wish to save people” [emphasis added]. He would protect those who toil by preventing the waste of the fruits of their labor. The burden of taxation is excessive. It makes life more meager, and falls hardest upon the poor. The United States is fortunate above other nations in the opportunity to economize. It is at peace and business activity has been restored. “The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare is only a species of legalized larceny,” is Mr. Coolidge’s vigorously expressed conclusion on the subject of economy.

It’s a logical, simple, and a deeply moral message. Some might call it common sense. Our times and the economic peril we face clearly calls for a commitment to reducing government spending and our tax burden. It has fallen on deaf ears in Washington and much of America. Coolidge’s words resonate today because it is the cure for our fiscal cliff and the ailing economy. And as Coolidge understood so well, it is the moral thing to do.

Blog author: dpahman
Thursday, November 29, 2012
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According to AEI author Mark Perry, there is another education-related “bubble” to worry about: the textbook bubble. He writes that this textbook bubble “continues to inflate at rates that make the U.S. housing bubble seem relatively inconsequential by comparison.” He continues, “The cost of college textbooks has been rising at almost twice the rate of general CPI inflation for at least the last thirty years.” Given that many students use loan money to purchase books as well as pay for classes, we might think of this as one of the many sources pumping air into the student debt bubble. But what choice do students (or professors, for that matter) have than to surrender to the textbook “cartel,” as Perry characterizes it? This bubble popping, while a bad thing for the textbook bubble-boys committed to the old, cartel-style model, could be a small relief and contribute to slowing the growth rate of the student debt bubble. (more…)

Ann Schneible, who interviewed Rev. Robert A. Sirico for Vatican Radio today (see PowerBlog post for audio) also published an interview with the Acton Institute president and co-founder on the Catholic news site, Zenit. Excerpt:

ZENIT: In response to those Christians and Catholics who are hesitant about buying into the idea of a free market economy, how can one demonstrate that there are elements to a free market – or Capitalist – economy which are compatible to Catholic social teaching?

Father Sirico: There are a number of elements that can make the connection. I keep going back to this anthropological question because that’s the beautiful way to do it. I think it was Chesterton who said that Catholicism is the religion of stuff, by which he was really addressing the Incarnational nature of the Church. We have incense, and bells, and candles, and vestments, and all these things. In other words – in a non-liturgical context – the material world is good. We see that in the book of genesis. And God places us in the material world and asks us to pursue sanctity there.

The moment he places us in the material world, he places us in the context of limitations and scarcity. This gives rise to economics – which means that we have to find a way that is in accord with our nature, that is ethical, that is appropriate, that is effective – to make use of nature for the glory of God. It is in the same way an architect who studies geometry uses that geometrical precision and technique to build the façade of a cathedral, and thereby rendering praise to God. So too in a different way, the entrepreneur, who discovers the use of something or the combination of other things and represents and organizes them and creates a network and a marketing campaign to build a business, that that architectural construct ends up sustaining many families who participate in that, and sustain many consumers in the sense that they buy a good or a service at a higher quality and for a lower price than they would have otherwise, thereby giving their family a little more money to use at their discretion; all of these things, too, can be considered rendering nature for the glory of God. And that’s enterprise; that’s business. I don’t like the word “capitalism” because I think it’s too narrow a word. I like “free economy,” or “free market.”

Read “A Moral Case for a Free Economy — Acton Institute’s Co-founder Explores Free Market Economy in New Book,” an interview by Ann Schneible on Zenit.

On Vatican Radio, Acton President and co-founder Rev. Robert A. Sirico discusses his new book Defending the Free Market: The Moral Case for the Free Market Economy with reporter Ann Schneible.

According to Vatican Radio, the broadcasting station of the Holy See:

… Fr Sirico highlighted his objectives in writing this book. Defending the Free Market, he said, was written “with the intention of making accessible economic ideas that I thought were important in general terms; but, in particular, especially for religious people, to understand there is what we call a normative or moral dimension to economic activity.”

“It’s not just, live by the Ten Commandments and open a store,” Fr Sirico explained, but he wanted to demonstrate “that there’s something more internal to the whole dynamism of a market economy that makes sense both economically and morally.”

Click on the media player below to listen to Schneible’s full interview with Rev. Sirico:

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It makes little, or really no sense for Americans to fork over more taxes without a balanced federal budget and seeing some fiscal responsibility out of Washington. The fact that the United States Senate hasn’t passed a budget in well over three years doesn’t mean we aren’t spending money, we are spending more than ever. The last time the Senate passed a budget resolution was April of 2009.

We are constantly bombarded with rhetoric that “taxing the rich” at an even greater rate will somehow dig us out of this mess. That’s delusional of course but the line works well in focus groups and polls. Here is a great common sense post from Frank Hill on the problems with that line of reasoning. Hill directs The Institute for the Public Trust and has a solid understanding of the economic and budget challenges facing the nation. His blog is a must to follow and as always Acton’s Principles for Budget Reform are worth reading.

There has been a lot of news coverage and debate about Republicans who signed a tax pledge. Now some of them feel boxed in and want flexibility to cut a deal. The criticism from some is that they want to cave without demanding any real concessions. Sen. Rand Paul (R-Ky) is leading the charge of criticizing Republicans who want to raise taxes. His argument is that budgets need to be balanced and taxes cut to spur economic growth.

At any rate, it’s obvious we have a spending crisis in Washington not a crisis stemming from a lack of revenue. More revenue won’t cure the ailment that plagues Washington.

At this hour, it seems that the number of leaders who are making the moral argument on the rights of Americans to keep more of their property is rapidly dwindling. Strong economic conservatives like Calvin Coolidge and Ronald Reagan made impressive moral arguments about the importance of low taxes in a free society. It not only makes economic sense but it makes sense morally. And for the record, if a politician signed his name to a pledge he or she should show some backbone and principle by honoring his word. Property and taxes are important issues, but today there is little leadership on the issue, especially the kind of moral leadership this nation desperately needs.

Africans unite to save Norwegians from dying of frostbite. By joining Radi-Aid, you too can donate your radiator and spread some warmth in the frozen wasteland of Norway.

Why Africa for Norway?
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Global poverty and its alleviation are often subjects of heated debate. Join us for an AU Online lecture series that explores the theme of human flourishing as it relates to poverty, globalization, and the Church in the developed world. The Globalization, Poverty, and Development series is scheduled for December 6 through December 13, 2012. Online sessions will be held at 6:30 p.m. EST on Tuesdays and Thursdays. Visit auonline.acton.org for more information and to register.

You should also check out the newly released 6 episode DVD series from our friends at PovertyCure that explores human flourishing and their creative capacity.