Category: Business and Society

Blog author: jballor
posted by on Wednesday, July 10, 2013

bernardusJonathan Merritt reports on a decision made by the parent company that produces Samuel Adams beer, Boston Beer Company, to redact “by their Creator” from an Independence Day ad featuring the Declaration of Independence. As Merritt writes, “We have arrived at a time in our history where some people are so offended by even the idea of God that they can’t bear to speak God’s name or quote someone else speaking God’s name. Worse yet, they have to delete God’s name from the Declaration of Independence to make a point.”

My friend Will Hinton rightly identifies the company’s defense of its decision for the fig leaf that it is:

“We adhere to an advertising code, established by the Beer Institute – a beer industry trade organization – that states, ‘Beer advertising and marketing materials should not include religion or religious themes’,” according to a statement provided by a Boston Beer Company spokeswoman. “We agree with that, and we follow these guidelines and approach our marketing with the utmost responsibility.”

As Will points out, brewing has a rich religious history, and many of the most popular specialty brews are branded with religious themes. Here are those produced by members of the Beer Institute he highlights: Bell’s Christmas Ale; Ommegang Abbey Ale; Marin Brewing Co. Witty Monk; Marin Brewing Co. Altar Boy; New Belgian Abbey Ale; New Belgian Lips of Faith. It is true that there is such a code and that point 7 reads as the spokeswoman declares. Right after point 6, “Beer advertising and marketing materials should not contain graphic nudity,” comes point 7, “Beer advertising and marketing materials should not employ religion or religious themes.”

Some will blame market forces for Sam Adams’ decision to secularize its commercial messaging. But that doesn’t really add up. The most natural thing to avoid controversy would be to leave the text of the Declaration intact, especially when linking the text thematically to the person of Sam Adams. To redact the text as the commercial does is to, as the backlash makes clear, runs the risk of alienating a huge swath of potential customers.

There’s something other than economic caution going on here, and Merritt puts his finger on it.

This is less about a decision to avoid controversy for fear of alienating a consumer base than it is an expression of a corporate culture that embraces a radical secularism and is tone deaf to the point of editing one of our nation’s most significant documents. It has more to do with a secular political and social sensibility than it does with economic savvy.

In such a radical separation of faith from public life, Sam Adams the beer company has done something that Sam Adams himself would never have stood for.

As Sam Adams put it himself in 1776, “We have this day restored the Sovereign to whom all alone men ought to be obedient. He reigns in Heaven, and with a propitious eye beholds his subjects assuming that freedom of thought, and dignity of self-direction which He bestowed on them. From the rising to the setting sun, may His kingdom come.”

Here’s the ad in question:

Blog author: ehilton
posted by on Tuesday, July 2, 2013

Wes Selke thought he might be called to seminary. Instead, he wound up in business school. That doesn’t mean he’s any less filled with a sense of mission and purpose.hub ventures

An article in Christianity Today has Selke discussing his desire as a Christian to invest in social entrepreneurship and how his faith and his work life intertwine. As co-founder of Hub Ventures, Selke seeks to help entrepreneurs get off to a solid start through a 12-week, intensive training course. He also sees his work as worship:

Selke is an investor who views his work as a form of worship. But worship isn’t just where you might expect. For some, a mall can be a modern temple, complete with iconography and rituals, a false faith of consumerism directed at shaping people’s desires. For Selke, worship is embracing capital as a means of achieving human flourishing, an outpouring of his talents in finance and his faith in God.

“The market is a great servant but a horrible master,” says Selke, paraphrasing 20th-century missiologist Lesslie Newbigin. “Our culture tends to become slaves to the market and greed, when in reality the market should be our servant in attaining the best allocation of goods and services.”

Selke believes that by investing in entrepreneurial ventures, he can do good in the world and practice stewardship by creating profit.

“Impact investing is a holistic view of profits, the planet, and people. It’s the stewardship of resources,” Selke says. “Christians thinking about ways to leverage their resources are called to make sure their capital is doing good.”

Read “Faith in the Free Market” at Christianity Today.

 

FAULKNERCourtesy today’s edition of Prufrock, a fine daily newsletter edited by Micah Mattix, comes this classic resignation letter from William Faulkner, onetime postmaster at the University of Mississippi:

[October, 1924]

As long as I live under the capitalistic system, I expect to have my life influenced by the demands of moneyed people. But I will be damned if I propose to be at the beck and call of every itinerant scoundrel who has two cents to invest in a postage stamp.

This, sir, is my resignation.

(Signed)

As the economist Walter Williams once observed, in the market system you don’t have to love your neighbors, you just have to serve them, even if they happen to take the form of an “itinerant scoundrel who has two cents to invest in a postage stamp.” That, apparently, was something that Faulkner just couldn’t tolerate.

Once upon a time, America was a country where a young adult would jump at an opportunity to learn new skills so that he or she could increase their options later. They were grateful. Those days are over thanks to a new ruling against unpaid internships. Thanks to an America that fertilizes Millennial narcissism in new ways, combined with the federal government undermining how employers develop their employees with minimum wage laws, everyone is worse off in the long run. Someone should have talked to Eric Glatt and Alexander Footman about this because these former interns sued Fox Searchlight Pictures for an unpaid internship where they “performed basic administrative work such as organizing filing cabinets, tracking purchase orders, making copies, drafting cover letters and running errands,” according to the Associated Press. A federal judge ruled in favor of Glatt and Footman.

Instead of these two young men being thankful for simply having an opportunity to have access to skills learned and the network of contacts they would make during their short stay, they decided to sue because they were not being paid for doing the same work as the hired employees. What Glatt and Footman seem to be unaware of is that if they had applied for those jobs outright they probably would not have been hired. So they should be thankful that they were given a spot to view operations from the inside at all. Where’s the rub? These young people believe that they are entitled to be compensated for work for an advertised “unpaid” internship. (more…)

Last night in Dublin I was having a conversation with a 65-year-old man who was ranting about the high unemployment rate in the European Union, which in the 17-nation currency area rose to 12.2 percent in April. The current unemployment rate is a new record since the data series began in 1995. My new friend was very open about being an outright socialist and said that Europe’s problem is that people are not being treated fairly.

Capitalism, he explained, promotes a culture where people do not share their resources because it encourages inequality. To solve the European unemployment crisis, my friend suggested that Europe “needs a dictator” to come in and simply tell everyone what to do so that there will be true equality. The problem, however, my Irish friend confessed, is that when someone gets in a power “they get carried away with it,” and people end up being taken advantage of. He did not seem able to connect the dots that countries that have tried socialism and dictatorships are countries where the poor are worse off in the long-run. Therefore, his proposal will not work.

The conversation raised several questions for me. To start, I wondered why this 65-year-old man drinking a Smithwick’s beer, sitting next to me drinking a pint of Guinness, did not see that we were both experiencing equality thanks to the free market, property rights, and the rule of law. I also wondered why he thinks that something like socialism would be the best way forward given the fact that a form of it is currently not working in the European Union.
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The Washington Post has an interesting story on young people who feel their vocation is “earning to give”—making as much money as possible in order to give away as much as possible to worthy causes. An example is Jason Trigg, an MIT computer science graduate who works as a programmer for a high-frequency trading firm:
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MonksInkWhat do markets have to do with monasticism? Quite a lot to the Benedictine monks of St. Andrew’s Abbey in Southern California, according to a recent press release. Their prior Fr. Joseph Brennan describes MonksInk, the monks’ business selling ink and toner cartridges:

Every monastery has something unique about them. For example, a monastery in Louisiana makes soap. Some make jellies and jams. The Camaldolese make amazing fruitcake. But we never developed anything like that. Until now, we only produced ceramics, and even these were designed by a brother monk in Belgium. We really needed to do something different. MonksInk was a good fit.

The article goes on to detail their offerings:

Product selection meets or exceeds what one could find at any big box office supply store — including ink and toner options for every make and model of printer, fax and copy machine, from HP and Epson to Xerox, and every brand in between. Buyers also have their choice of original manufacturer products, alternative cost-saving brands, or re-manufactured items. And, the monks are quick to point out, anyone can always add a prayer request or two as well! (more…)

trip_hurdles_400_clrOne of the most basic concepts in economics and business is marginal or incremental cost, the additional cost needed to produce or purchase one more unit of a good or service. For example, if a business can produce 100 widgets at a total cost of $5,000 and 101 widgets for $5,500, the marginal cost of the 151st unit is $500. At that rate, the company has a disincentive to produce more than 100 widgets since the cost rises sharply (an average additional cost of $4.45 per widget).

The same principle applies to the cost of labor. Imagine a worker who makes $16 an hour for 29 hours per week but whose incremental cost for the 30th hour of work each week rises to $112.15. For the 29 hours of labor, the cost is $464 while for 30 the cost is $576.15. That sharp increase would prevent many employers from hiring workers for more than 29 hours per week.

According to Jed Graham at Investor’s Business Daily, that is exactly what effect Obamacare will have on wages.
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Acton’s Director of Research, Samuel Gregg, has a column in the latest issue of Legatus magazine. In it, he recognizes the accomplishments and Catholic faith of one of America’s Founding Fathers, Charles Carroll. Carroll, the only Catholic signer charles carrollof the Declaration of Independence, was an established businessman, and signing the Declaration was a risky move. It literally put his entire fortune at risk.

Carroll’s commercial interests extended far beyond those of the typical Marylander of his time. They ranged from grain products to livestock, small cloth factories, building crafts, cattle, mills, orchards, land speculation, and iron production. As well as investing in domestic and European markets, Carroll was in the business of making loans, charging market interest rates. He even authored a document defending the legality and morality of compound interest. And, it should be said, a portion of Carroll’s assets consisted of slaves.

Carroll’s commercial success did not mean, however, that what he often called the “habit of business” became suffocating for him. He would have thoroughly agreed with Calvin Coolidge that “the accumulation of wealth cannot be justified as the chief end of existence.”

Gregg also points out that Carroll had a sense that “the life of business was itself one full of potential nobility and purpose…” Carroll believed that order and discipline, in business and in life, made one’s life fruitful.

Read “Catholic Founder, Catholic businessman” at Legatus Magazine.

According to the 2013 Mackinac Policy Conference, Michigan’s three largest universities (Michigan State, University of Michigan and Wayne State) are producing entrepreneurs at twice the national average. According to Michael Wayland, the report included:

…responses from more than 40,000 of the 1.2 million alumni of the University of Michigan, Michigan State University and Wayne State University. The responses revealed that more than 19 percent of the alumni surveyed have started a company, and some have created more than one.

The study suggests a significant number of alumni are starting their own businesses, and more than 50 percent of those businesses are here in Michigan, contributing to our state’s economic prosperity,” said URC [University Research Corridor] Executive Director Jeff Mason in a statement. “The URC is committed to supplying the tools that can lead to new companies and more jobs.” (more…)