Category: Business and Society

Blog author: jballor
posted by on Tuesday, July 22, 2014

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
posted by on Tuesday, June 17, 2014

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.

dontstealLast week, Walmart announced that it distributed $3 million last year to charities in New York City. The giving included $1 million to the New York Women’s Foundation, which offers job training, and $30,000 to Bailey House, which distributes groceries to low-income residents.

Naturally, there was one group that was appalled by the charitable giving: local politicians.

More than half the members of the New York City Council sent a letter to Walmart demanding that it stop giving millions in charitable contributions to local groups in the city.

Twenty-six of the 51 members of the Council charged in the letter that the world’s biggest retailer’s support of local causes is a cynical ploy to enter the market here.

“We know how desperate you are to find a foothold in New York City to buy influence and support here,” says the letter, obtained by The Post and addressed to Walmart and the Walton Family Foundation.

“Stop spending your dangerous dollars in our city,” the testy letter demands. “That’s right: this is a cease-and-desist letter.”

For the sake of argument, let’s concede Walmart is trying to “buy influence and support” in New York City. Such activity is called “lobbying.” Are these NYC council members against lobbying? Will they soon be sending a cease-and-desist letter to their political contributors who are trying to “buy influence and support”?

There’s an old bumper sticker that reads, “Don’t Steal! The Government Hates Competition.” Maybe we need a new one that says, “Don’t Give to Charity! The Government Hates Competition.”

(Via: Hot Air)

Blog author: jballor
posted by on Monday, June 2, 2014

Soup-NaziIn an article in the Journal of Markets & Morality, Ryan Langrill and Virgil Henry Storr examine “The Moral Meanings of Markets.” They argue that “traditional defenses of the morality of the market tend to inadequately articulate the moral meanings of markets.” Such defenses tend to argue from practical, even pragmatic or utilitarian, grounds.

But for Langrill and Storr, “markets depend on and promote virtue.” Evidence of this virtue in the marketplace, they argue, is that “consumers are often willing to pay a premium and workers are often willing to work at a discount in order to interact with honest, trustworthy, faithful, and even loving (i.e., charitable) brokers and merchants.”

A recent study seems to contradict this finding, however, noting that at least in some circumstances rude behavior by retail clerks increases sales. Today at Think Christian in “The Paradoxical Appeal of Rude Sales Clerks,” I explore these findings and put them within the broader context of what it might mean to “ration by rudeness.”

Read more: Ryan Langrill and Virgil Henry Storr, “The Moral Meanings of Markets,” Journal of Markets & Morality 15, no. 2 (Fall 2012): 347-362

Blog author: jballor
posted by on Thursday, April 24, 2014

cittfcSpeaking of Thomas Piketty, here’s a very helpful and revealing interview with Matthew Yglesias, “Thomas Piketty doesn’t hate capitalism: He just wants to fix it.” (HT: PEG)

A few highlights with some comment:

On the need for a historical perspective in economics:

Thomas Piketty: … It’s not only economists’ fault. Historians and sociologists are too often are leaving the study of economic issues to economists. Sometimes nobody does it.
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This past Saturday, I attended the Alleviating Poverty Through Entrepreneurship (APTE) 2014 summit. APTE is a student group at OSU in Columbus, OH, and they put together a wonderful cast of ten speakers on the subject of the future of social entrepreneurship. With seven pages of notes (front and back), I unfortunately cannot cover every detail of the conference, but instead I will briefly focus on a theme that recurred throughout the afternoon: private, often for-profit, solutions to public service problems facing the poor.

APTE brought together an impressive lineup of speakers for two rounds of individual presenters, followed by a Twitter Q&A, with a panel discussion on the city of Detroit in between the two groups: (more…)

David and Charles Koch

David and Charles Koch

Given the press the Koch brothers (David and Charles) get, one would expect to see a photo of them sporting devil’s horns with blood dripping from their fangs. Here are just a few examples:

They have a pattern of lawbreaking, political manipulation, and obfuscation. I’ve been in Washington since Watergate, and I’ve never seen anything like it. [The New Yorker]

Today, the Kochs are being watched as a prime example of the corporate takeover of government. [Greenpeace]

[W]hen Barack Obama became president, the Kochs, like a lot of right-wingers, flipped out. They threw their weight behind a stealth campaign to turn back the president’s “socialist” agenda… [Rolling Stone]

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Blog author: abradley
posted by on Friday, March 14, 2014

Untitled 4As much as progressives balk at the “imposition” of religious morality and the church in public and social spaces, secular humanism’s moral relativism is not working in America and continues to leave children vulnerable to profound evil. For example, the Urban Institute recently released a report on the economy of America’s sex industry — and the numbers are astounding.

The Urban Institute’s study investigated the scale of the underground commercial sex economy (UCSE) in eight major US cities — Atlanta, Dallas, Denver, Kansas City, Miami, Seattle, San Diego, and Washington, DC. Across cities, the UCSE’s worth was estimated between $39.9 and $290 million in 2007, but decreased since 2003 in all but two cities. In the study, interviews with pimps, traffickers, sex workers, child pornographers, and law enforcement revealed the dynamics central to the underground commercial sex trade.

Here are some of the key findings regarding those who manage the sex economy:
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