Category: News and Events

The Universidad Francisco Marroquín is webcasting a celebration of the life of Manuel “Muso” Ayau, its founder, live on Sunday, Sept. 12, at 1 p.m. local time. Watch the event here. The University also has published a special web page dedicated to the legacy of Ayau, with videos and other resources.

Read Acton Research Director Samuel Gregg’s PowerBlog remembrance of Ayau.

The following appreciation of the life and work of Ayau is from Rev. Robert A. Sirico, president and co-founder of the Acton Institute:

When in January of 1990 I was invited to present a paper at the Mont Pelerin Society in Antigua, Guatemala, I had no idea that the visit to this small Central American country, and the people I would meet at the conference, would have such a lasting effect on me and the work I would end up doing the following two decades.

The president of the Mont Pelerin Society that year was Manual Ayau, known as Muso to his friends, among which I would be honored to be numbered.

Muso had a testy relationship with the Church. Although his daughter was a nun (in fact, the foundress of a monastery with a ministry to orphaned children), Muso found the opinions of numerous clergy on economic matters to be superficial at best and odious at worse, His special ire was directed at proponents of the attempted Christian-Marxist hybrid, Liberation Theology, which he saw as lending a moral patina to the socialist experiments his nation and much a Latin America suffer from.

So it was amusing to see Muso’s delighted reception of my speech in Antigua in which I endeavored to take apart the various fallacies of liberation theology: anthropological, theological and economic. At first his seems incredulous that priest could invoke Mises or Hayek, but he soon warmed up and invited me to join him on a speaking tour of remote parts of his country during his run at the presidency of Guatemala. Is country is worse off for not having elected him.

Muso was a man gifted with keen entrepreneurial talents which was not merely direct at building businesses: He used them to build a movement of ideas in a hostile environment.

Along with a band of brothers, Muso saw the effects of poverty in their homeland, and the ideology of the Fabian movement that would insure its continuance. This band of brothers, whom Muso described as “rebellious improvisers,” began a counter movement with the translations of solid books making the case for the free society. They formed, in 1959, one of the first think tanks in Latin America to promote the free economy, The Center for Social and Economic Studies.

Muso’s crowning achievement, and other than his family, his lasting legacy, will be the Universidad Francisco Marroquín, from which I had the honor of receiving an honorary doctorate at Muso’s hands. This university, one of the finest in Latin America, is guided by a clear philosophy of human liberty and organized in such a way to ensure that all who complete its curriculum grasp the interconnection between economic and personal liberty and the practical implementation of these principles in their respective spheres of influence.

Convinced that in order for a given society to appreciate the principles of human freedom, it was necessary for its leaders to be imbued with these ideas. The UFM today churns out young business and academic leaders who are capable of defending the free society.

Muso was as friendly as he was contentious; a man of vision and accomplishment, he could also be humble and an attentive listener.

Muso passed into eternity with his beloved wife Olga at his bedside and will be buried on the grounds of the monastery where it was his wish to watch these little, abandoned ones in the care of his daughter, Mother Inez Ayau at the orphanage she founded. A great champion for the cause of liberty has departed this world, leaving our hearts a bit dimmer. May the Author of Freedom grant him eternal repose in His presence.

On Public Discourse, Acton Research Director Samuel Gregg looks at fiat money and how today it “represents the end of a long process of development whereby governments have used their power of legal tender to use money to pursue various policy goals.”

This brief excursion into economic history hints at some of the deeper economic—not to mention moral—problems associated with fiat money. One is, as noted, the greater ease with which it permits governments to devalue currencies, thereby reducing the wealth of those with assets denominated in that currency. This surely constitutes an injustice to those individuals and businesses that have saved and behaved in a fiscally responsible manner while simultaneously letting the fiscally imprudent off the proverbial hook.

This underscores the second problem associated with fiat money: its facilitation of systemic moral hazard throughout entire economies. Moral hazard describes those situations whereby people are encouraged to take excessive risks because of the implied assurance that someone (usually the state) will bail them out if the enterprise or investment fails. From this standpoint, fiat money’s very existence arguably encourages the development of moral hazard throughout every sector of the economy. The high level of the U.S. federal government’s public deficit, for example, is at least partly premised on the unspoken supposition that the Fed (which is, after all, a government institution that operates within legal parameters set by Congress and whose members are nominated by the President) can simply print more money in paper or electronic form if creditors become worried that the U.S. government’s borrowings cannot be covered by anticipated taxation revenues, foreign borrowings, and its existing resources. This in turn encourages more people and governments to buy U.S. government debt in the form of bonds, which permits more deficit-spending, thereby encouraging a cycle of ever-spiraling public debt.

Read “Fiat Money and Public Debt” on Public Discourse.

From Chuck Colson’s column on Christian Post. Read the entire article here.

If the Great Recession of 2008 has taught us anything, it’s that you can’t detach economic prosperity from moral issues. Greed, imprudent spending by individuals and by government, debt, all of these things brought our economy to where we are today. As I’ve said many times on BreakPoint, our economic collapse is the result of our moral and ethical collapse.

We don’t teach our kids that there are such things as right or wrong, and we wonder why they grow up to cheat and steal.

And the social costs of disintegrating traditional families in terms of crime, divorce, juvenile delinquency, are truly staggering.

You don’t think supporting traditional families — and marriage — matters? Well, then you’ve never been inside a prison, like I have. You haven’t met the thousands of young men and women I have who have told you about their missing fathers or their drugged-out moms.

No society that rejects the moral good can possibly stay solvent. The price tag for moral corruption, as we have learned, is simply too high.

On Sept. 8, Acton Research Director Samuel Gregg appeared live on the EWTN network to discuss “St. Thomas More: Saint, Scholar, Statesman, Martyr.” The show was hosted by Fr. Mitch Pacwa, S.J.

Blog author: jcouretas
Thursday, September 9, 2010
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On his website, David Bahnsen reviews The Battle: How the Fight between Free Enterprise and Big Government Will Shape America’s Future by Arthur C. Brooks:

The strongest points of the book, and the reason Brooks has done such critically important work here (World magazine has already recognized the book as its Book of 2010, by the way) are found in these two areas:

(1) The moral nature of the battle that exists

(2) The fundamental materialism that underpins the left’s approach towards creating income equality.

I heard Dr. Brooks speak about the latter at the annual Acton Institute dinner in 2009 and wrote about it here. Brooks concept of “earned success” is indisputably true and of fundamental importance in how we approach the problems in today’s world. Understanding the idea that true happiness comes from “earned success”, and not simply receiving a bigger slice of society’s overall wealth pie via government-coerced redistribution, is not mere economics. This latter point makes his former point all the more compelling. For what could be more immoral than advocating a policy worldview that dooms millions of people to unhappiness by robbing them of their human dignity? The arguments against the coercive and progressive and inefficient portions of our tax code are important (and all valid), but they miss the most important point of all: They fail to do what they set out to do, and make life worse for those they set out to help.

Read “The Battle for our Hearts and Souls” by David Bahnsen.

On the The American Spectator website, Theodore Roosevelt Malloch reviews Wilhelm Ropke’s Political Economy, a “brilliant, analytical intellectual history” from Acton Research Director Samuel Gregg.

We are extremely grateful then to the brilliant researcher and scholar, Samuel Gregg of the Acton Institute, for a concise, penetrating, and thorough analysis of Röpke’s contribution to intellectual life. It breaks new ground, is highly readable, and adds considerably to the economic literature. It should become mandatory reading for every student of political economy.

As the intellectual author of Germany’s post-World War II economic resurrection, Röpke is an under-appreciated thinker who informed policymaking. Gregg rightly calls him a Smithian, as he was against the unlimited power of the state. Put positively, he was much more. Röpke was an “economic humanist” of the first order. He historically showed how the Great Depression came to limit economics as a science and how collectivism is incompatible with authentic human freedom.

The purpose of Gregg’s masterful book is to provide a descriptive and critical introduction to Röpke’s understanding of political economy. This is unquestioningly an exercise in historical recovery. The focus is on four subjects that concerned Röpke up until his early death in 1966. They are: the challenge of business cycles, the unending growth of the welfare state, full employment and inflation, and international economic relations.

Read Malloch’s “The Great Wilhelm Röpke” on the American Spectator website.

We’ll be posting excerpts from Sam’s new book in the days ahead.

On Aug. 28, Rev. Robert A. Sirico, Acton president and co-founder, was interviewed by Freedom Watch host Judge Andrew Napolitano in a wide ranging discussion of natural rights, the moral law and politics. They were joined by Michael Shermer, publisher of Skeptic Magazine.

Until recently, many thought that Europe had escaped the worst of the 2008 financial crisis. Some even argued that the crisis has demonstrated the European social model’s superiority over “Anglo-Saxon capitalism”. In 2010, however, we have seen an entire country bailed out, riots in Athens, governments slashing budgets, and several European nations staring sovereign debt default in the face. Some are even claiming that the euro is finished. So what went wrong for Europe? How adequate have been the responses of European governments? And what are the consequences for America? The video is from the Aug. 2 Acton Lecture Series in Grand Rapids, Mich.

Today’s NYT has an op-ed by David Brooks that’s been getting good cyber-circulation, “The Gospel of Wealth.” Brooks highlights in particular Southern Baptist pastor David Platt, who is touted as the youngest mega-church leader in the country. Rebelling in many ways from the new traditions associated with mega-churches, Brooks says Platt inhabits the nexus between “between good and plenty, God and mammon,” spirituality and materiality, and that Platt “is in the tradition of those who don’t believe these two spheres can be reconciled.”

Here’s what Brooks concludes: “Americans will not renounce the moral materialism at the core of their national identity. But the country is clearly redefining what sort of lifestyle is socially and morally acceptable and what is not. People like Platt are central to that process.”

It’s true that the call to follow Jesus is a radical call. But it is false to juxtapose that radicalism with a demarcation between those areas of life in which one can be faithful to him and not.

What we can really hope for is that each of us will be obedient to Christ in our own callings, whether in plenty or in want, in abundance or scarcity. In the realm of economics, for most people that will mean that they act responsibly with their money, avoiding the temptation to live in the midst of crippling debt and seeking meaning in buying and identity with what we purchase and consume. This is what I’ve called the “fourth” pillar of the new economy, “Spend all you can.”

But as Brooks points out, the pursuit of sustainable wealth and profit in the midst of responsible giving and saving isn’t at all a new idea. It’s only the excessive spending and unsustainable consumption of recent decades that make it seem new.

Leading up to next week’s Labor Day holiday we’ve been reflecting on the nature of work the last few days. Today I’d like to conclude this little series with a note on the relationship between work and civilization, with specific reference to work in the context of Western civilization.

Yesterday I passed along the perspective on work as a formative influence on the soul of the worker: “…the soul formed by daily decision to do work carries over into eternity.”

But as DeKoster and Berghoef also note, “God so arranges that civilization grows out of the same effort that develops the soul.” What they mean is that God has providentially arranged that the work of each individual in a society, when properly oriented toward the service of others, to create a civilization, in which the needs of others are met by the work of their neighbors, whether proximate or at a greater remove.

WorkIn his little book Work: The Meaning of Your Life—A Christian Perspective, DeKoster puts these pieces together. The two definitions fit well. Work is “the form in which we make ourselves useful to others.” And civilization is “sharing in the work of others” and “good and services to hand when we need them.”

As he writes, “It is a circle we will finally see close: our working puts us in the service of others; and the civilization which work creates puts us in the service of ourselves. Thus work restores the broken family of mankind.”

You can pre-order Lester DeKoster’s Work: The Meaning of Your Life—A Christian Perspective in hardcopy today from the Acton BookShoppe or download it to your Kindle reader and read it right away. There’s a special Labor Day discount for the pre-order (add the book to your cart to see the discounted price).

And for the broad account of the relationship between the Christian faith, including the theological perspective on work, and the development of Western civilization, see the Acton Media production The Birth of Freedom. You can view the trailer below:

You can also visit The Birth of Freedom website to get more information on the related small-group curriculum, as well as complementary video shorts, which address questions related to work and civilization, like “Why didn’t China have an industrial revolution before the West?” and “If medieval Europe was so great, why were so many medievals poor?”