Category: Business and Society

The National Urban League forgot to invite me to be one of the keynote speakers at their annual conference meeting in St. Louis this week, July 25-28. I’m not mad. I’m sure it was just an oversight. I would have been much cheaper than Hilary Clinton, Barack Obama, and John Edwards. But, if had a platform at the conference I would make the case that black America will self-destruct if we don’t address the following issues immediately:

(1) The marriage and family crisis–nearly 70 percent of all black kids are born to single parents; 43 percent of black women and nearly 53 percent of black men will never marry

(2) Abortion–over 43 percent of all black pregnancies end in abortion

(3) Education–almost half of the black kids in urban schools don’t graduate and of those who do they are primarily female.

(4) Nearly all black colleges and universities have become women’s colleges–most black colleges average 60-67 percent female populations

(5) The declining significance of the black church among the hip hop generation (those 40-years-old and under).

(6) HIV/AIDS–Black women make up almost 70 percent (7,586 out of 11,859) of all new AIDS cases among women.

(7) Ghetto culture and misogyny in some segments of hip hop culture.

(8) Rhetoric vs. Reality–Do massive government programs help poor blacks in the long run?

(9) The need for promotion of Black Enterprise Magazine’s “Declaration of Financial Empowerment“–A wonderful savings and investing tool!!

(10) Saving Black Men–Black men in America are in trouble. Low high-school graduation rates, fatherlessness, high incarceration rates, lack of moral and spiritual formation, and, worst of all, black men have no venue to discuss personal pain and heal from deep woundedness (physical or psychological). The League has a “Women of Power” workshop and that’s part of the problem. What is needed is a “Men of Power” workshop. There’s been such an emphasis on developing black women that black men are being left behind.

There are wonderful workshops this year as well ranging from entrepreneurial activities, to professional development, to health. Maybe I’ll get to speak there next year.

Blog author: jspalink
Friday, July 20, 2007
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Lemonade EntrepreneurActon continues its award winning ad campaign by looking at how the entrepreneurial calling begins at an early age. A child who sets up a lemonade stand outside of his house is an entrepreneur, assuming a certain amount of risk and responsibility and providing a product that will increase the happiness of passers by. Adults often praise the hard work of children, especially children who find ways to earn something through their hard work, but often this attitude changes as the child becomes a successful business person or entrepreneur.

By shouldering the risks, entrepreneurs make the future a little more secure, and a whole lot easier for the rest of us. So, the next time you run into Johnny, don’t resent him. Thank him for a job well done.

Blog author: jspalink
Wednesday, July 18, 2007
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Samuel Gregg examines the nature of equality in democratic society. “Though Tocqueville held that democracy’s emergence was underpinned by the effects of the Judeo-Christian belief in the equality of all people in God’s sight, he perceived a type of communal angst in democratic majorities that drove them to attempt to equalize all things, even if this meant behaving despotically,” he writes.

Read the complete commentary here.

Blog author: jballor
Wednesday, July 11, 2007
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Here’s a new NBER working paper, “Why are Immigrants’ Incarceration Rates so Low? Evidence on Selective Immigration, Deterrence, and Deportation,” by Kristin F. Butcher and Anne Morrison Piehl.

Here’s the abstract:

The perception that immigration adversely affects crime rates led to legislation in the 1990s that particularly increased punishment of criminal aliens. In fact, immigrants have much lower institutionalization (incarceration) rates than the native born – on the order of one-fifth the rate of natives. More recently arrived immigrants have the lowest relative incarceration rates, and this difference increased from 1980 to 2000. We examine whether the improvement in immigrants’ relative incarceration rates over the last three decades is linked to increased deportation, immigrant self-selection, or deterrence. Our evidence suggests that deportation does not drive the results. Rather, the process of migration selects individuals who either have lower criminal propensities or are more responsive to deterrent effects than the average native. Immigrants who were already in the country reduced their relative institutionalization probability over the decades; and the newly arrived immigrants in the 1980s and 1990s seem to be particularly unlikely to be involved in criminal activity, consistent with increasingly positive selection along this dimension.

Blog author: jballor
Monday, July 9, 2007
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In yesterday’s WaPo, George F. Will assesses FDR’s domestic legacy, “Declaration of Dependence.”

It’s not a pretty tale: “The war, not the New Deal, defeated the Depression. Franklin Roosevelt’s success was in altering the practice of American politics.

This transformation was actually assisted by the misguided policies — including government-created uncertainties that paralyzed investors — that prolonged the Depression. This seemed to validate the notion that the crisis was permanent, so government must be forever hyperactive.”

In a previous issue of Religion & Liberty, Prof. Steven Gillen writes that FDR helped to

redefine freedom and liberalism in America. In speeches throughout the 1930s the president declared, ‘I am not for a return of that definition of liberty under which for many years a free people were being gradually regimented into the service of a privileged few’ and called for a ‘second bill of rights’ that included governmentally-guaranteed rights to remunerative jobs, decent homes, and adequate health care. Not surprisingly, FDR’s neo-liberal justification of his ‘New Deal’ expansion of the economic role of the federal government enormously appealed to the heavily poor Catholic base of his Democratic Party during the Great Depression and still dominates much of the ‘liberal’ thinking with respect to liberty, rights, and the role of government in America today.

Acton research fellow Kevin Schmiesing also discusses the history and legacy of the New Deal in his book, Within the Market Strife: American Catholic Economic Thought from Rerum Novarum to Vatican II.

A review of Schmiesing’s book by Thomas E. Woods notes of Schmiesing’s reappraisal of Catholics and the New Deal, “Schmiesing has made an important contribution because he reminds us that a great many considerations, including the dangers posed by political centralization and broad construction of the Constitution, may inform the Catholic conscience on economic matters.”

Blog author: jballor
Wednesday, July 4, 2007
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Henry I. Miller, a doctor and fellow at the Hoover Institution, author of The Frankenfood Myth, weighs in on the milks wars over the artificial hormone rBST.

In “Don’t Cry Over rBST Milk,” Miller writes, “Bad-faith efforts by biotechnology opponents to portray rBST as untested or harmful, and to discourage its use, keep society from taking full advantage of a safe and useful product.”

Whether or not scientific studies show that the use of rBST is as safe as not using it, I think it is bad faith to say that milk consumers should not be able to buy rBST-free milk if they so choose.

So, Miller writes, “Some milk suppliers and food stores have increased the price of milk labeled ‘rBST-free,’ even though it is indistinguishable from supplemented milk, and offer only this more expensive option, pre-empting consumers’ ability to choose on the basis of price.” Try reading that paragraph while drinking a glass of cool milk and not do a spit take, or laugh so hard that some of it comes out your nose.

The fact is, consumers can freely choose to patronize any one of the millions of markets that don’t carry rBST-free milk (much less carry it exclusively). If rBST is so safe and so effective, why not let it compete in the marketplace against non-rBST milk? Let milk companies proudly use the label, “A Proud Product of rBST-Supplemented Cows,” and see how they do.

I’m not in favor of banning rBST. But neither am I in favor of banning non-rBST labeling. And it’s the latter impulse that is driving so much of the lobbying in the milk wars.

The National Center for Policy Analysis (NCPA) has published a paper titled, “Taxing the Poor: A Report on Tobacco, Alcohol, Gambling, and Other Taxes and Fees That Disproportionately Burden Lower-Income Families” (PDF).

The paper highlights state lotteries as particularly regressive taxes: “The dollar amount spent on the lottery by the lowest-income individuals (earning less than $10,000 annually) is twice as much as the highest earners (earning more than $100,000 annually).” I wrote a piece reacting to a poll with a similar finding awhile back.

The NCPA study also points out that “lotteries have worse odds than other forms of gambling; in fact, states retain some 33 cents of each dollar of lottery revenue — whereas privately owned casinos keep just 4.4 percent of the take.” And of course that casino take depends on the type of game played. Keno has the worst odds, with roughly 1/4 of the take going to the house, while games like roulette, slots, or blackjack have less than 5% house takes.

The paper also studies other popular sin taxes, like tobacco and alcohol, and one of the newest potential additions to the sin tax category: gasoline.