Category: Business and Society

Blog author: jballor
posted by on Friday, July 8, 2005

As the jobless levels across the nation continues to decline, Michigan continues to lag behind. The nationwide unemployment rate decreased to 5.0% in June, to the lowest levels since September, 2001 according to reports. Meanwhile, Michigan remains at the bottom of the list with the worst unemployment levels, upwards of 7%.

But the key to understanding why these improving numbers have not translated into job gains in Michigan appears in the same report: “Factory payrolls shrank for the fourth straight month as auto assembly and parts plants cut back on production. A glut of inventories has prompted many automakers to slow production lines until demand can catch up. Some 96,000 manufacturing jobs have been lost since August 2004.”

Michigan’s manufacturing-centered economy has simply been unable to compete in the global marketplace, and state policies have tended to restrict rather than promote new business enterprise. An op-ed piece in yesterday’s Wall Street Journal argues that Gov. Granholm’s proposed tax plan

does nothing to reduce the excessive overall tax burden on job providers. The governor’s $2 billion bond proposal places taxpayer dollars under the control of “independent job creation experts” (the administration’s term; in the real world, we call them entrepreneurs) and instructs them to invest directly into the perceived industries of tomorrow.

This additional debt does nothing to improve Michigan’s attractiveness to investors, but instead hopes the administration’s handpicked experts will invest “other peoples’ money” effectively. And the governor’s $40.5 billion budget increases spending $1.6 billion above last year’s level and includes $300 million in tax increases. History and basic economics teaches us that Gov. Granholm’s attempt to tax-spend-and-borrow Michigan to prosperity will fail.

The answer to increasing economic growth, creating jobs and raising incomes in Michigan is simple and works whenever tried: Reduce taxes.

Blog author: jballor
posted by on Thursday, July 7, 2005

ARMAVIRUMQUE passes along an excerpt from an article posted yesterday by The New Republic, “The Killing Machine,” by Alvaro Vargas Llosa. The article is about Che Guevara, and the famous photograph that “thirty-eight years after his death, is still the logo of revolutionary (or is it capitalist?) chic.”

Llosa interviews Javier Arzuaga, a former Catholic priest, self-described as “closer to Leonardo Boff and Liberation Theology than to the former Cardinal Ratzinger.” Arzuaga’s relates the following:

there were about eight hundred prisoners in a space fit for no more than three hundred: former Batista military and police personnel, some journalists, a few businessmen and merchants. The revolutionary tribunal was made of militiamen. Che Guevara presided over the appellate court. He never overturned a sentence…. I pleaded many times with Che on behalf of prisoners. I remember especially the case of Ariel Lima, a young boy. Che did not budge.

For more about Guevara, check out ARMAVIRUMQUE for a link to a story in The New Criterion, “The real Che,” by Anthony Daniels.

You may also recall the recent Hollywood release, The Motorcycle Diaries, examined in part in an Acton Commentary by Bruce Edward Walker, “Scary Movie: Hollywood Humanizes the Despot.” Walker writes that the film is “frightening in its attempts to humanize the South American ideologue and revolutionary Ernesto ‘Che’ Guevara. The film is an attempt to validate the Communist ideology as a cure for the diseases of poverty and illness and as a substitute for the religion that is, in the film’s depiction, petty and ineffective.”

So we see the irony of a rabid Communist like Che Guevara becoming a pop culture icon, so that, in the words of Llosa, “His likeness adorns mugs, hoodies, lighters, key chains, wallets, baseball caps, toques, bandannas, tank tops, club shirts, couture bags, denim jeans, herbal tea,” and more. Whence comes this contradiction?

As I commented in a relevant blog post over at Brad Warthen’s Blog, some of the contemporary appeal can be linked to the popularization and idolization of Guevara by Zack de la Rocha and the group Rage Against the Machine. Their music is featured in The Matrix movies, and they are perhaps most famous for their subversive politics and revolutionary ideology. The group was formed in 1990 and broke up in 2000, a decade in which their popularity peaked, influencing a generation of pop culture.

So says Dr. George Ayittey, a professor of economics at American University and founder of the Free Africa Foundation, in an interview on today’s Morning Edition from NPR.

Ayittey argues in part that after the African nations gained independence, they rejected the market system out of hand as a Western innovation, to the detriment of their societies. He calls for a return to indigenous structures of civil society, which embrace markets and free trade.

He also says that we need to distinguish between African governments and African people…a confusion that is simply made all too often.


Three separate studies
published by the Archives of Pediatrics & Adolescent Medicine suggests that too much TV-watching can harm children’s ability to learn. The article says that in one study, involving nearly 400 northern California third-graders, those with TVs in their bedrooms scored about eight points lower on math and language arts tests than children without bedroom TVs. A second study, looking at nearly 1,000 adults in New Zealand, found lower education levels among 26-year-olds who had watched lots of TV during childhood. A third study, based data on gathered from nearly 1,800 U.S. children, found that those who watched more than three hours of television daily before age 3 scored slightly worse on academic and intelligence tests at ages 6 and 7 than youngsters who watched less TV.

In our current political climate, the response might be to now pass a law limiting TV viewing in the home. Or maybe 26-year-olds will now start suing television companies for lowering their educational achievements? But, like all things in the market place, this study reveals that parents play a crucial role in mitigating technology in the home. The larger issue is not so much that television dumbs down children but the fact that what the market provides must be consumed with wisdom. What at home rules for kids work the best?

The following is from Archbishop Tomasi’s address at the 93rd International Labor Conference in Geneva. (Click here for the full text of his remarks.)

"It is the dignity of every human person that requires access to work in condition of personal security, health, fair renumeration, a safe environment. Work is a right and the expression of human dignity…work is the motor for development and poverty elimination, for unlocking the hidden resources of nature, for personal and professional fulfillment and family support, for social participation in the well-being of society."

And from the Catechism of the Catholic Church:

"In work, the person exercises and fulfills in part the potential inscribed in his nature. The primordial value of labor stems from man himself, its author and its beneficiary. Work is for man, not man for work."

From time to time, it is worth revisiting these basic but crucial premises of all fruitful discussions of labor.

Blog author: mvandermaas
posted by on Thursday, June 30, 2005
Smoke, smoke, smoke that cigarette – the state needs the cash.

Last year, when I was still a Legislative Assistant in the Michigan House of Representatives, I had a front-row seat for the debate over House Bill 5632, the legislation that raised cigarette taxes by 75 cents and placed Michigan at #2 on the list for highest cigarette taxes in the country.

If my memory serves me correctly, the debate was utterly predictable. Those in support of the tax argued in two primary (and seemingly contradictory) directions: first, that the state desperately needed the increased revenues that would result from jacking up the tax in order to continue serving the low-income community’s health care needs through the state’s Medicaid program; and second that increasing the tax would be beneficial to public health because many smokers would be forced to give up the habit due to the drastically increased cost. This mindset is summed up nicely in this excerpt from Nurseline, a publication of the Michigan Nurses Association, which supported the tax increase:

It is estimated that with a 75 cent increase in the tobacco tax, there will be roughly a 13 percent decrease in youth consumption and a 7 percent decrease in adult consumption of tobacco. These declines in consumption will end up saving Michigan about $1,590 billion in long-term healthcare costs. Additionally, the revenues generated would protect health care for 200,000 Michigan children, improve the state’s health status by reducing smoking, protect thousands of Michigan health care jobs by earmarking the revenues to health care, and bring real dollars to Michigan from federal Medicaid matching monies.

Conservatives argued that a reasonable person might conclude that the second benefit (a reduction in smoking rates) would eventually cancel out the first (increased cigarette tax revenue) – although it would be just as reasonable to assume that a great many smokers wouldn’t quit smoking but would instead find ways – often illegal – to circumvent the new tax.

They also pointed out that the increased tax would disproportionately impact the poor, and would in the end be counterproductive in that it would greatly harm small businesses (such as gas stations and convenience stores), causing job losses and further hampering Michigan’s already struggling economy.

Needless to say, the tax was raised.
(more…)

Recent high-profile examples of the combination of violence and technology, such as “happy-slapping,” bring into sharp focus the need for moral judgment in the marketplace. The social nature of violence and sin mean that “no government, economy, family, or society can survive if a critical mass of citizens do not exercise a particular level of self-government and restraint.”

Read the full text here.

Blog author: abradley
posted by on Wednesday, June 29, 2005

Rapper and actor Will Smith urged rappers to serve as role models for black communities at the annual BET Awards. "The kids that are making these trends, making these songs, don’t understand the level of effect that black Americans have around the world," Smith said in an interview. "Black Americans are so elevated, it’s almost worship." The gangsta lifestyle is celebrated in black communities for its portrayal of strength, Smith said. "That’s the image of survivors. The dude that sells the drugs or has the guns or is most willing to kill somebody is the dude that has the greatest potential for survival, or at least that’s the perception. So that’s what people strive for."

At the awards, hip-hop artist Kanye West won "Video of the Year" for the hit "Jesus Walks." This raises several issues. For example, what incentives do rappers have to view themselves as role models? Is a "gangsta" rapper really likely to see himself in that role anyway? Are entertainers the best role models for black kids? Are not black entrepreneurs, professors, pastors, teachers, and the like, better role models?

Blog author: jballor
posted by on Tuesday, June 28, 2005

AMD is suing Intel, claiming "freedom of choice and the benefits of innovation…are being stolen away in the microprocessor market," says Hector Ruiz, AMD chairman, president and chief executive.

This case raises concerns over at Fast Company Now, as Kevin Ohannessian writes,

I worry that this could start a new trend. Is a competitor trouncing you? Sue him. Do you feel your product is underperforming due to unfair opposition? Take your rival to court. It does seem at times that America is a nation built on litigation, but capitalism is about competition. Such lawsuits should make competition more fair, and not replace it altogether. Let us hope the next year proves this to be the case.

Tort reform policy is an important part of addressing the litigious mind-set of America. Ohannessian’s comment brings out the critically important role of the courts, as arbiters of justice. But they should be arbiters of the last resort, not replacing other structures and spheres of reconciliation.

In Trial by Fury, the latest volume in the Christian Social Thought Series, law professor Ronald J. Rychlak makes the argument that the tort system needs to be oriented to the common good in order to maximize justice. And part of realizing the common good is appreciating the role of essential mediating institutions.

Madison, Wisconsin’s city council voted down a resolution that would have allowed an exemption from the public smoking ban for cigar bars. The ban goes into effect July 1.

HT: Cigar Jack’s Cigar Blog