Category: Business and Society

Blog author: dpahman
Wednesday, September 10, 2014
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I have spoken in the past in favor of net neutrality, writing,

Whoever is responsible for and best at enforcing it, net neutrality had this going for it: it was a relatively stable, relatively open playing-field for competition…. [T]he fact that companies tried to get around it via copyright protection privileges shows that it was, in fact, doing something to enforce freedom of competition. Now, without it, there is an opportunity for concentration of power…. As [Walter] Eucken illustrated, concentration can lead to instability, and instability leads to popular calls for state regulation, which tend in practice toward cronyism. Certainly, such a trajectory is not inevitable, but it is now more likely, giving good reason for pause at the idea that we do not need net neutrality — or something like it — in the future.

This week, House minority leader Nancy Pelosi voiced her support for net neutrality as well. So why would I object? Because the measures that Pelosi proposes give much more power to the government, following the trajectory outlined above in the direction of over-regulation. (more…)

Blog author: dpahman
Wednesday, September 3, 2014
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City Summer 2014In the most recent issue of The City, I have an essay on Orthodoxy and ordered liberty. I argue that Orthodox theological anthropology, which distinguishes between the image and likeness of God and two forms of freedom corresponding to them, fits well with the classical understanding of ordered liberty.

In particular, I examine these freedoms with regards to the family, religious liberty, political liberty, and economic liberty, arguing that the Orthodox ascetic tradition has much to offer to modern Christian social thought with regards to how best to order the freedom we have by virtue of being created after the image of God toward that freedom from passion and sin that finds its fulfillment in the likeness of Jesus Christ.

Of interest to our readers here, with regards to economic liberty, I write,

We are created with a capacity for freedom, autexousio, to be used for the purpose of the moral freedom of theosis: eleutheria. Thus, just as we ought to offer up our bodies as living sacrifices to God (cf. Romans 12:1), so also we are to offer up God’s creation to him through our labor. God has given us the earth in order “to tend and keep it” in a paradis[ai]cal state (Genesis 2:15). Thus, acknowledging … our propensity for failure, we nevertheless have a duty to make of God’s creation what we can, imitating the creativity of God and exercising the dominion he gave us (Genesis 1:26).

We must, then, have liberty in society to freely cultivate the resources of the earth for the sake of the higher good of self-sacrificing love. Helen Rhee affirms in Loving the Poor, Saving the Rich, her study of wealth and poverty in the early Church, the consistent patristic teaching of both the affirmation of private property rights and our moral duties to use our property for the good of others (what is known in the West as the “universal destination of goods”)….

You can read the full article online here.

And while you’re at it, take the time to subscribe to The City. It’s free and published in print and online three times a year. Subscribe here.

Blog author: johnteevan
Friday, August 29, 2014
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In his August 24, 2014 syndicated column Scott Burns tells of a study by Dunn and Norton who give five principles for having “Happy Money.”

  1. Buy experiences not things: go to Chicago rather than buy a new stuff.
  2. Make it a treat: don’t keep ice cream in the house, make it special by anticipating going out every Tuesday night for ice cream.
  3. Buy time: we are “time poor” people so slow down and avoid expenditures that devour time.
  4. Pre-pay your vacation so you don’t worry about spending “all that money.”
  5. Invest in others: give gifts or cash or support someone on a ministry trip or hand out $20 when you feel like it.

These ideas will help remove the tendency to endless question of “Is this worth it?” Burns does not mention it, but giving money to church, mission, health, poverty, orphan care or directly to people in need is “Happy Money” as well.

Sic semper tyrannis, eh?

Sic semper tyrannis, eh?

The Burger King acquisition of Tim Hortons and the resulting plans to move the corporate headquarters under the taxing authority of the Canadian government is being derided by some as unpatriotic.

This is the latest in a long string of similar phenomena over the last decade or so, as we see patriotic loyalty (or the lack thereof) becoming a political issue in the context of offshoring, globalization, outsourcing, and so on.

A response to the charge of being unpatriotic would seem to me to require at least two points.

First, the responsibilities of a business owner, CEO, or corporate board are different than those of a government politician. They have different loyalties, so to speak. So to judge the one by the standards of the other is an exercise in missing the point.

Second, I would respond with a query along these lines: Which is more unpatriotic, a greater disservice to a nation, for someone to be involved in: moving a business from one country to another or making the tax environment in a country inhospitable to businesses?

Aunt louisaOver at the Federalist, Gracy Olmstead wonders “what happens when people bring the country to the city?” She goes on to argue that “urban farming could have conservative implications and outworkings—and we should encourage these endeavors as much as possible, in our efforts to bring traditional principles back to urban environments.”

Is there a way to bring the city mouse and the country mouse together?

I’ve argued for the need for urban farming initiatives in the context of renewal movements in places like Detroit, and Michael Miller has cogently pointed out the entrepreneurial reality at the core of farmers’ markets.

But as Olmstead points to the diverse benefits of urban farming, I’m reminded of a story that pushes us beyond merely material and utilitarian calculus. The economist Wilhelm Röpke was a devotee of allotments for gardening and farming (Schrebergärten) commonly found in Europe, particularly after World War II.
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Reading through the German economist Walter Eucken’s work The Foundation of Economics (1951), I came across one of the most helpful charts for economic analysis I have yet to find. In it, Eucken gives every possible form of market in a single table:

Eucken Chart

The Foundation of Economics, p. 158

Eucken adds four qualifications that are important to keep in mind:

  1. “These forms of market are actual forms which have been or are to be found in actual economic life (often blended with one another, and existing alongside the forms of a centrally directed economy). They are not given a priori. They are discovered with their distinguishing characteristics by studying the planning data of those taking part in the market….”
  2. “Under each particular form of market a man can act according to different principles, for example, that of maximum net receipts or that of optimum output….”
  3. “Each of these forms of market can appear in four types: both open, both closed, or closed on either side only.”
  4. “Fixing of prices by the state occupies a special position, since it can follow any form of market and has different effects accordingly…. For example, the significance of coal prices being fixed by the state varies according to whether perfectly competitive, oligopolistic, or monopolistic supply, or some other form of market, exists, or whether both sides of the market are open, or whether the supply side is closed by an investment veto. Governmental price-fixing is to be treated as a variant of the different market forms and not as a special market form of its own.”

So, what does this amount to? (more…)

Blog author: jballor
Tuesday, July 22, 2014
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Idle RichOver at his blog, Peter Boettke writes, “The idle rich are never really idle in a free market economy.”

Now while we might want to distinguish between the rich and their riches, could it be that even in their consumption, conspicuous or otherwise, the rich are contributing to a rising tide that lifts all boats? Wesley Gant makes that related case over at Values & Capitalism: “Is It Possible to Waste Money?”

Gant seems to conclude that it isn’t possible to “waste” wealth. “Humans do not consume resources; they create and exchange them,” he says.

One might argue, however, as John Mueller does, that humans create and exchange things, but that they also consume and distribute them. It’s a truncated and reductionist economism that doesn’t do justice to that fuller picture. A basic problem with this kind of view is that it cannot distinguish between types of consumption. Maybe we need “ethics” rather than “economics” proper to do so, but that just goes to show the limitations of the economic way of thinking.

On Gant’s account, it would seem that there is no such thing as bad stewardship. Now it may be that consumption of luxuries is not always bad, or that such consumption often does have some redeeming virtues. But is it the case that such reasoning can justify any exchange or consumption? (As long as it doesn’t involve the government, of course!)

Perhaps the guy who got the one talent and buried it in the ground should have just given the wealthy owner a basic lesson in such economics.

It seems like nowadays everyone has a connection to someone who brews their own beer. Grand Rapids recently was named Beer City because of its lively microbrewery scene so this is especially true here. While this hobby can be very enjoyable and refreshing be aware that taking your hobby to the next step could be more difficult than you would imagine. Recent regulations have made it harder than ever for new craft beers to enter into the consumer market.

Entrepreneurs are the building blocks of all economies. Every company must come from somewhere to create what they are today. This can easily be seen by looking at any company from Apple all the way to Nike. The problem is that many large companies are now being protected from competition from small businesses by unnecessary regulations. (more…)

discrimination.photoWhile in college, did you ever join the Catholic Student Association, Campus Crusade for Christ, or some other student religious organization? If so, you might want to leave that off your resume. A new study in the sociology journal Social Currents found that applicants who expressed a religious identity were 26 percent less likely to receive a response from employers.

For the experiment, the researchers sent out resumes to companies in the South from fictional recent graduates of flagship universities located in the South. They signaled religious affiliation on the resume by listing membership in campus religious organizations such as the “University of Alabama _______ Association,” where the blank is replaced with a religious identity (e.g., atheist, Catholic, evangelical, Muslim). They also sent out resumes with similar information but left off any religious identifiers.
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Blog author: jballor
Tuesday, June 17, 2014
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The much-touted Lego Movie drops on disc today, and before you pick up your copy, I encourage you to remember that “Everything Really Is Awesome.”

the-lego-movie-movie-poster-11Emmet’s words to Lord Business apply to us all:

You don’t have to be the bad guy. You are the most talented, most interesting, and most extraordinary person in the universe. And you are capable of amazing things. Because you are the Special. And so am I. And so is everyone. The prophecy is made up, but it’s also true. It’s about all of us. Right now, it’s about you. And you… still… can change everything.

Everything really is awesome, or in other words, all is gift, so get your hands dirty.