Archived Posts November 2011 - Page 3 of 5 | Acton PowerBlog

Rediscovering Political Economy is the title of a book recently published by Lexington Books, edited by Joseph Postell and Bradley C.S. Watson, and including an essay by Fr. Robert Sirico. The Spring 2012 issue the Journal of Markets & Morality will feature a review of the book by Tim Barnett, an associate professor of political science at Jacksonville State University. Since that’s too long to wait for Prof. Barnett’s astute observations, we post here an edited and abridged version of the full review.

It is not easy to find a book on political economy that starts as well as this one does, with real insights on themes that matter!
The book rises from ten papers presented by notable economic thinkers at a conference co-sponsored by the Heritage Foundation and the Center for Political and Economic Thought (at St. Vincent College, Latrobe, PA). Allegedly, each essay aims to contribute something to the reuniting of economics with political and moral principles, especially in the context of the U.S. Constitution. This is an admirable goal. Still, as the book’s organizers point out, economics as a discipline has little capacity to adjudicate between competing presuppositions that underlie the political economy discourse. There is little in the text to suggest that such capacity has suddenly grown. Nonetheless, it is good that the conference participants have provided interested parties an opportunity to evaluate the observations, rationales and assumptions that inform their endeavor to reseed the logic of moral principles into the field of political economy.

Robert Sirico begins the book’s first chapter by observing an instability in the social order arising from a defense of liberty on the ground of efficiency rather than a legitimate normative basis. He argues that the management of a libertarian society without reference to morality will ultimately prove injurious to the liberty itself (4). While Sirico does not reference Theodore Roosevelt in this context, the idea calls to mind President Roosevelt’s famous dictum that sweeping attacks upon all men of means, without regard to whether they do well or ill, become inevitable if decent citizens permit rich men whose lives are corrupt to domineer in swollen pride.

Sirico then dissects political economy’s torn sinews with the dexterity of a surgeon. He declares, “In any market, the kinds of goods and services producers provide reflect the values of the consuming public” (4). In other words, the free market model is not inherently good or evil: It is as good and wise as the minds and hearts of those who create market demand and consume the supply. Sirico continues, “That is both the virtue and the vice of the consumer sovereignty inherent in market transactions where the consumer is king. Where the values of the buying public are disordered, the products available in the market will be disordered as well” (4).

The argument to this point is splendid and the core ramification inescapable: Where cultural drift results in foolish consumer demand, an economy and polity will sink as a consequence. Casting Sirico’s argument as a baseball game, two runners are now on base with no outs. Unfortunately, Sirico’s batting line-up does not bring these particular runners home, at least in my reading. Instead of arguing that regulatory guardrails must be erected as a lesser evil when sobriety is no longer behind the wheel on the free market highway of life, Sirico moves to a discussion of other matters such as rights versus privileges–useful corollaries but not the same thing as scoring the runners on base. Happily, Sirico scores a lot of other runners in ensuing innings. The result is a chapter brimming with worthwhile reflections and artful prose.

The second chapter, by John D. Mueller, involves an exploration of the notion that natural law’s teachings are sound enough to ensure that neoscholastic economists will win the political economy debate in the end. Empirical observations will build the case for Aristotle, Augustine and Aquinas (35). As a result, the idea that economics can be efficient without a moral compass will decline.

In chapter three, Alan Levine examines the historicity of the debate over the merits of commerce. In the following chapter Samuel Hollender argues that Engels and Marx never provided an adequate exposition of their vision of a communist organization. Many readers are likely to find Hollender’s interposition of Adam Smith the more interesting part of his essay, as Hollender has Smith addressing the moral hazard that arises from interest rates kept artificially low for too long – a matter of continuing salience.

Chapter five finds Bruce Caldwell extolling the wisdom of Hayek, Austrian insights represented as potentially curative for what ails us in these trying times. Readers are reminded that markets are dynamically self-adjusting, so government is best kept small–a point I would much rather dine with than the idea that positive unintended benefits arise in the aftermath of ‘markets gone wild’ (my indelicate phrase, not his).

Chapters six and seven (Richard Wagner and Thomas West, respectively), show the prospect of integration with Robert Sirico’s chapter. In explaining how leveling (egalitarianism) puts the general welfare at risk, Wagner posits “raising” as a superior alternative. One could argue that the connectivity between Sirico and Wagner is found in the idea that free markets arising from prudent culture will be morally fair markets, thus raising by a natural dynamic those who contribute appropriate value to the sustainable public good (i.e., the centerpiece of a virtuous national ethos). The outcome justifies fewer resources for program driven redistribution; hence, a smaller government footprint. Arguably, West’s examination of the Founding Era undergirds this theme with the observation that sound government protects people’s right to acquire property, not merely to hold it.

In the three chapters that close out the book Peter McNamara seeks common ground between Hamiltonians and Jeffersonians; Joseph Postell justifies a limited government superintendency over the economy; and Larry Schweikart warns that America’s fiscal and monetary policies will bring a day of reckoning.

The collection of essays is best viewed as a road toward the rediscovery of political economy. One travels the road and gains some understanding of the ideas that will belly up to the negotiating table when it comes time to put the national Humpty-Dumpty back together again. Until then, one should occasionally dust off a copy of David Ricci’s 1984 The Tragedy of Political Science, and console oneself with the realization that a political economy lacking suitable morality is an invitation for eventual replacement by a better one. Granted, the way higher will have detours and not be easy. Still, days of rebuilding usually follow days of collapse. Rediscovering Political Economy is a useful book for understanding the polity’s ongoing demise as well as its prospects for eventual rebirth.

Blog author: kspence
posted by on Wednesday, November 16, 2011

Writing two and a half years ago, Acton Research Fellow and Director of Media Michael Miller warned of the dangers of over-managed capitalism.Washington’s foolhardy manipulation of the housing market brought our economy to its knees in 2008, but it seemed the gut-wrenching panic hadn’t had taught us anything. The recovery tactics weren’t fundamentally any different from financial policy in the mid-2000s, but the establishment couldn’t conceive of doing things any differently. Said Miller:

In The Wealth of Nations, Adam Smith warned, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.”

Smith, who published his landmark work in 1776, warned of corporate collusion, but we’re experiencing something much more insidious — not just businesses, but business and government and a host of others all meeting, and colluding, at the posh Swiss resort town of Davos. It is Adam Smith’s nightmare.

This isn’t free market capitalism. It’s Davos capitalism, a managerial capitalism run by an enlightened elite — politicians, business leaders, technology gurus, bureaucrats, academics, and celebrities — all gathered together trying to make the economic world smarter or more humane. It might even be, as Bill Gates famously said last year at Davos, a more “creative” capitalism.

As Miller was writing those words, the White House was shunting billions of dollars of stimulus into green energy projects like Solyndra. The use of funds was more “creative” than a money bonfire on the National Mall, I guess.

Ok so the Occupy Wall Street set, the ones protesting corporate greed — the ones protesting a third ski chalet for the chief of a Fortune 500 company — surely they understand what Miller was talking about. General Electric’s CEO Jeffrey Immelt is the poster boy of creative capitalism (or, as conservatives call it, crony capitalism). He makes millions of dollars a year, lives in New Canaan, Conn., and was even the president of his Ivy League fraternity. His company has benefitted from the largess of the Federal Government (Think Progress was enraged when it found out that GE has gotten $4.7 billion dollars back from the IRS in the last three years). In a free market, Immelt wouldn’t still be in charge of GE: the company’s share prices have fallen 60 percent since their peak in 2001 just after he took over.

But the protesters don’t want the government to get out of business. In fact, they seem to think that if the government were just more involved in GE’s operations, everything would be more fair. Miller explains why the last thing we need is further collusion between Uncle Sam and GE.

The late Samuel Huntington coined the term Davos Man — a soulless man, technocratic, nation-less, and cultureless, severed from reality. The modern economics that undergirded Davos capitalism is equally soulless, a managerial capitalism that reduces economics to mathematics and separates it from human action and human creativity.

And we looked up to Davos Man.Who wouldn’t be impressed by the gatherings at the annual meeting of the World Economic Forum at Davos, a Swiss ski resort? Sharply dressed, eloquent, rich, famous, Republican, Democrat, Tory, Labour, Conservative, Socialist, highly connected, powerful and ever so bright.

Then, when the whole managerial economy collapsed, the managers and technocrats lost faith in markets. But they did not lose faith in themselves, and now they want us to entrust even more of the economy to them.

And who’s going along for the ride? Occupy Wall Street. When the jet set lost faith in markets, it was natural that they didn’t loose faith in themselves. How did they pull the wool over the eyes of anyone else though? How do they maintain an army of fiercely independent stooges?

It’s easy, it turns out, when that army’s economics is missing the understanding of human nature that ought to undergird it. The Davos men aren’t recognized for what they are — “soulless, technocratic, nation-less, and cultureless” — by camps of protesters who have no conception of culture, of fatherland, or even of soul.

Acton Institute is pleased to announce both the opening of registration for the 2012 Acton University (AU), and the launch of AU Online, a new internet-based educational resource for exploring the intellectual foundations of a free and virtuous society.

For four days each June, the Acton Institute convenes an ecumenical conference of pastors, seminarians, educators, non-profit managers, business people and philanthropists from more than 50 countries in Grand Rapids, Michigan. Here, 700 people of faith gather to integrate and better articulate faith and free enterprise, entrepreneurship, sound public policy, and effective leadership at the local church and community level. With this week of fellowship and discourse, participants build a theological and economic infrastructure for the work of restoring and defending hope and dignity to people around the world.

This year’s Acton University will take place on June 12-15. For the online registration form and complete conference information, please visit university.acton.org.

Acton Institute is also launching AU Online, a new internet-based educational resource for exploring the intellectual foundations of a free and virtuous society. This resource is designed to offer the Acton community another way to experience the first class content and interaction of an Acton sponsored event while at home, at the office, or at school. To celebrate the launch of this new program, we are presenting the same series of foundational lectures offered at Acton University as the four-part pilot series for AU Online. This will allow interested Acton University participants to opt to take these courses in advance and become eligible for alumni course selections at Acton University. This series will take place twice a week, December 6-15 of this year — act quickly to take advantage of this new resource! Visit auonline.acton.org for more information and to register.

Space and scholarship funds for both Acton University and AU Online are limited, so register or apply now! If you have any questions, please don’t hesitate to contact our programs staff at programs@acton.org or at 616.454.3080. We hope to see you in June!


Pope Benedict XVI delivered inspiring remarks at the European Year of Volunteering (EYV) summit held in Rome this past Nov. 10-11. He explained why gratuitous giving of personal talent and resources is so important in restoring a healthy vocational perspective to everyday business.

As Benedict knows all too well, a culture of Christian charitable giving is not at its height in Ol’ Europe, where the modern Welfare State and Keynesian economics have played such a dominant role the past 70 years (see why in Michael Miller’s 2008 Acton lecture The Victory of Socialism and the strong opinion of other Roman pontiffs in my blog Popes Say No to Socialism). European government dominance of charitable enterprise has reduced much of the Continent’s generosity in terms of private giving and volunteer activities.

A pervasive “every man for himself” mentality is now infecting the hearts of European workers and households struggling to stay afloat. From their perspective, who can really blame them? Many wonder: Who has the money or the time to care for others when you and your family are just barely surviving?

During the EYV summit, the Holy Father commended leaders from European charitable non-profits and volunteer organizations for keeping a culture of generosity and self-giving alive. Benedict underscored the absolutely essential role their work plays in building up a society of free giving and virtue (altruism, generosity and selflessness) and restoring confidence in man’s innately good heart, now withered and tested by the intense pressures of today’s down market. These latter socially destructive tendencies are the ones the Acton Insitute attempts to thwart in its program for effective charity, The Samaritan Award and Guide.

European charitable enterprise leaders, so to speak, help create a “market of gratuitousness”, as mentioned in Benedict’s social encyclical Caritas in Veritate (Charity in Truth). This same abundance philosophy is argued so convincingly in Arthur C. Brooks’s Gross National Happiness (see book with Brooks’s research on wealth and charitable giving). The president of the American Enterprise Institute writes that charitable giving of time and resources makes us psychologically happier and more humanly fulfilled, which in turn increases our chances of being more happy and productive in the workplace, which consequently influence growth trends in corporations and entire commercial sectors.

This is the positive circle of growth and happiness that charity helps inspire. It is the exact reason why volunteer activity ends up paying real dividends in commercial enterprise, as business people flourish morally and spiritually. To understand further, watch Arthur Brooks’s Fox News interview regarding economic growth factors linked to generosity and happiness in the United States and with some heavy criticism of giant Welfare States like France, a country ranked a miserable 91 out of 153 nations surveyed for the latest Index (download 2010 PDF report and index). According to the Index, some of the most enterprising European countries (like Great Britain, Ireland, Switzerland, Germany and Holland), while battling the same destructive welfare culture and economic crises, all made the top 20 with the traditionally high-ranking United States (no. 5). By contrast, the same welfare dependent, economically troubled but far less enterprising Greece was ranked dead last in the Eurozone and in the bottom five of all 153 countries represented.

The opposite destructive vicious circle goes something like this: stinginess of heart leads to a lack of deep vocational interest in work and therefore a miserly contribution of one’s talent and resources, which directly lowers overall production and profits for enterprise, as worker pessimism and selfishness help undermine commercial potential. This is one good reason why markets stagnate, retract and eventually die when such negativity and selfishness swirl violently into a cultural vortex, sucking down an entire nation’s true economic potential.

We are not surprised to hear Pope telling EYV participants that volunteer work and charity “is not merely an expression of good will.” As he articulated this great teaching:

At the present time, marked as it is by crisis and uncertainty, your commitment is a reason for confidence, since it shows that goodness exists and that it is growing in our midst. The faith of all Catholics is surely strengthened when they see the good that is being done in the name of Christ… His grace perfects, strengthens and elevates that vocation and enables us to serve others without reward, satisfaction or any recompense. Here we see something of the grandeur of our human calling: to serve others with the same freedom and generosity which characterizes God himself.

A day later, during his Nov. 13 Sunday Angelus, the Pope reflected on giving and investment of human talent and resources in the context of Sunday’s gospel (Parable of the Talents: Matthew 25:14-30). As Acton’s President Rev. Robert Sirico argues in his monograph The Entrepreneurial Vocation, Benedict XVI invited faithful to respond thankfully and generously to their individual gifts for the advancement of God’s abundance on Earth:

In today’s Gospel…Jesus invites us to reflect with gratitude on the gifts we have received and to use them wisely for the growth of God’s Kingdom. May his words summon us to an ever deeper conversion of mind and heart, and a more effective solidarity n the service of all our brothers and sisters.

Finally, the Holy Father’s press secretary, Fr. Federico Lombardi, SJ explained what Benedict XVI meant in a interview released after the Pope’s EYV remarks:

We are in the midst of an economic crisis afflicting the whole of Europe, and raising tensions, worries and anxieties throughout the world. It is a crisis that challenges the intellects and abilities of politicians and economists. In the midst of this crisis, the Pope’s speech to the young people gathered in Rome for the European Year of [Volunteering] may provide a modest contribution to help rediscover a common hope. The Pope asks us to keep in mind the idea of ‘gratuitousness’, of giving freely —that is, not living solely for one’s own interests, but living in such a way that we are a gift to others.

“In short, man does not live on bread alone, but also on the relationships between men and women who are truly free, who respect one another and take care of one another and love one another, beyond selfish calculations. It is from these relationships that mutual trust is rebuilt between people and populations. It is the fulcrum that is needed to lift the world anew.

The generous and routine volunteering of one’s talent and resources instills everyday habits that market-based economies need and rely on for individual entrepreneurs and businesses to grow and succeed. It’s what makes or breaks businesses teetering on the edge of failure, when employees and professional collaborators give a little more of themselves to help enterprise lunge forward.

Apart from emboldening private initiatives to diminish the role of  European Welfare States and increasing our Gross National Happiness, the real output of charity is measured in the increased hearts and souls of generous, selfless business people. It is these same business people who take the gratuitousness they learned in habitual acts of charity and apply this virtue to generous forms of service with “other-directed” collaboration, products and services.

 

Blog author: keagle
posted by on Monday, November 14, 2011

Tomorrow is a big day at the Acton Institute. November 15th marks the launch of two programs, 2012 Acton University (AU) and AU Online, a new internet-based educational resource for exploring the intellectual foundations of a free and virtuous society.

For the 2012 Acton University conference (June 12-15 in Grand Rapids), we’ve overhauled the registration process to make it more user-friendly and responsive, and we look forward to hearing what you think.

We are also happy to present AU Online. This new digital learning hub will let you access select Acton content from your home, office or classroom, so even if you can’t make it to one of our programs in person, you can hear and interact with the same experts online.

It’s an exciting time here at Acton and I hope you enjoy these new resources as much as we have enjoyed developing them.

Blog author: jballor
posted by on Monday, November 14, 2011

Abraham KuyperThis week’s Acton Commentary, “Work, the Curse, and Common Grace,” I examine the doctrine of common grace in the context of our relationship with animals. In particular I use some insights from Abraham Kuyper as appear in the forthcoming translation of his work, Wisdom & Wonder: Common Grace in Science & Art. (Pre-orders for Wisdom & Wonder are shipping out this week, so you can still be among the first to receive a hardcopy. We’ll be launching the book at the Evangelical Theological Society meeting later this week in San Francisco, and you’ll be able to order the book online beginning next week.)

Kuyper posits that now, after the fall into sin, “we can arrive at the knowledge of things only by observation and analysis. But that is not how it was in paradise.” Adam, by contrast, “immediately perceived the nature of each animal, and expressed his insight into the animal’s nature by giving it a name corresponding to its nature.”

It struck me that another “common grace” kind of reminder of this primal state appears in the narrative of Doctor Dolittle. Dolittle, of course, gains insight into the life of animals in a way that is not available to most other people. While he doesn’t have the direct intuition of Adam, his ability to communicate with animals gives him a unique perspective: “After a while, with the parrot’s help, the Doctor got to learn the language of the animals so well that he could talk to them himself and understand everything they said.”

Dolittle’s home even evokes our picture of the Garden of Eden:

The house he lived in, on the edge of the town, was quite small; but his garden was very large and had a wide lawn and stone seats and weeping-willows hanging over. His sister, Sarah Dolittle, was housekeeper for him; but the Doctor looked after the garden himself.

He was very fond of animals and kept many kinds of pets. Besides the gold-fish in the pond at the bottom of his garden, he had rabbits in the pantry, white mice in his piano, a squirrel in the linen closet and a hedgehog in the cellar. He had a cow with a calf too, and an old lame horse twenty-five years of age and chickens, and pigeons, and two lambs, and many other animals.

Doolittle has a special calling, it seems, and so he gives up being a “people” doctor and embraces his role as an “animal” doctor. In his relationship with animals Doolittle is a figure of Adam in the garden, and in his role of healing and renewal he evokes the second Adam, Christ.

Word spreads of Dolittle’s abilities, of course, “And so, in a few years’ time, every living thing for miles and miles got to know about John Dolittle, M.D. And the birds who flew to other countries in the winter told the animals in foreign lands of the wonderful doctor of Puddleby-on-the-Marsh, who could understand their talk and help them in their troubles. In this way he became famous among the animals all over the world better known even than he had been among the folks of the West Country. And he was happy and liked his life very much.”

Blog author: kspence
posted by on Friday, November 11, 2011

Last week the Acton Institute hosted its third annual Chicago Open Mic Night downtown at the University Club. Three panelists answered questions about — you guessed it — economics and a virtuous society from the audience.

Acton executive director Kris Alan Mauren emceed the event, and our president Rev. Robert A. Sirico was the first panelist. Heather Wilhelm, a senior fellow at the Illinois Policy Institute and a columnist for RealClearPolitics.com, and Brian Wesbury, chief economist at First Trust Advisors and a frequent guest on Fox, CNBC, and Bloomberg TV, rounded out the panel.

The general theme of the night was something like, “how do we get the economy going again?” The panel’s general answer was optimistic: “It already is — just keep government out of the way.”

Mr. Wesbury was back after his popular commentary last year, and he delivered again this year: the last questioner got a friendly-but-stern talking-to after asking how the U.S. economy could possibly keep chugging along after the blows it has been dealt since 2008.

Whether the question was about the role of the Federal Reserve, the desirability of continued stimulus, or presidential candidates’ tax policy, the panelists generally agreed: the parts of the economy that government (particularly the Federal Government) hasn’t tried to help are doing much better than sectors like housing where sophisticated Keynesian policy instruments have been brought to bear.

Wilhelm quoted H.L. Mencken to great effect: “The urge to save humanity is almost always a false front for the urge to rule it.”

The task for current generations, Sirico said, is to learn from the failures of the baby boomers and to take up wholeheartedly the task of rejuvenating the culture, and he sees in the Tea Party, in homeschooling movements, and in a return to traditionalism, signs that that moral rejuvenation is happening.

Special thanks to Mr. Jim Healy (center, with guests)

Open mic night as it happened

Blog author: rnothstine
posted by on Friday, November 11, 2011

For our air superiority, which by the end of 1944 was to become air supremacy, full tribute must be paid to the United States Eighth Air Force. – Winston S. Churchill

The young pilots and crews that took to the skies to defend democracy and liberate a continent are among the most committed and courageous to ever serve this country. When the United States entered the war, it was the greatest Air Armada to ever be assembled. However, most pilots and crews before their training had never flown before. Many of them came from small towns and farms. They were extremely bright and well educated. Most importantly deep courage was needed for early missions that resulted in an 80 percent casualty rate for the crews of the Mighty Eighth in the early stages of the war. Their commitment to a free Europe was tested by horrific experiences and mental and physical anguish. There were no foxholes in the skies, nowhere to hide, only the duty to carry out the mission and deliver the bombs amid a sky littered with enemy fighters and flak. “Perhaps at no other time in the history of warfare has there been been such a relationship among fighting men as existed with the combat crews of heavy bombardment aircraft,” says Starr Smith, former Eighth Air Force intelligence officer.

The British, who abandoned daytime bombing in World War II because of the extremely high casualties, saw their American ally step in so that Germany and its war machine would be bombed virtually around the clock. Donald L. Miller sums up just how dangerous the air war over Europe was in his book Masters of the Air: America’s Bomber Boys Who Fought the Air War Against Nazi Germany,

In October 1943, fewer than one out of four Eighth Air Force crew members could expect to complete his tour of duty: twenty-five combat missions. The statistics were discomforting. Two-thirds of the men could expect to die in combat or be captured by the enemy. And 17 percent would either be wounded seriously, suffer a disabling mental breakdown, or die in a violent air accident over English soil. Only 14 percent of fliers assigned to Major Egan’s Bomb Group when it arrived in England in May 1943 made it to their twenty-fifth mission. By the end of the war, the Eighth Air Force would have more fatal casulaties -26,000- than the entire United States Marine Corps. Seventy-seven percent of the Americans who flew against the Reich before D-Day would wind up as casualties.

Below is a tribute video of The Mighty Eighth and links to past Veterans Day posts:

Veterans Day Review: As You Were

Veterans Day: E.B. Sledge and The Old Breed

Veterans Day: Remember Bataan & Corregidor

The Secretary of State was not pleased.

I couldn’t believe my ears. But today I can.

Sandro Magister, one of Rome’s most veteran and credible vaticanistas, confirmed this afternoon what I had heard – and feared – nearly two weeks ago (See his Nov. 10 editorial “Too Much Confusion. Bertone Puts the Curia Under Lock and Key” ): The Pontifical Council’s controversial Note released two weeks ago “Towards Reforming the International Financial and Monetary Systems in the Context of Global Public Authority” really had not been independently reviewed by the Church’s highest authorities.

The Note, of a very particular worldwide interest, rocked the boat of the Vatican approval system.

At the Vatican Press conference held to debrief international reporters on its Note, the Council’s two highest authorities – President Cardinal Peter Turkson and Secretary Bishop Mario Toso – openly admitted that neither the Pope or any other senior Curial officials had approved or necessarily read the Council’s bold public statement.

It was their Council’s statement. They took full responsibility for recommending a world financial authority and global Tobin tax to stabilize the most destructive financial storm in nearly a century.

The Note was not – and still is not – undersigned by His Holiness Benedect XVI.

Ibidem for Secretary of State Cardinal Tarcisio Bertone, the Vatican’s second in command.

And now Cardinal Bertone is upset, taking corrective action to prevent this fiasco from ever happening again – especially regarding the release of an opinion of such relevance and sensitivity to the world’s well being.

As Sandro Magister reported:

In the hot seat was the document on the global financial crisis released ten days earlier by the pontifical council for justice and peace. A document that had disturbed many, inside and outside of the Vatican.

The secretary of state, Cardinal Tarcisio Bertone, complained that he had not known about it until the last moment. And precisely for this reason he had called that meeting in the secretariat of state.

The conclusion…was that this binding order would be transmitted to all of the offices of the curia: from that point on, nothing in writing would be released unless it had been inspected and authorized by the secretariat of state.

Finally, it has now become ever the more apparent that the practical prescriptions of the Note were not that of any religious professional. The marked economic language and financial terminology implied all along that a Vatican outsider had crafted the Note’s technical recommendations.

As Magister further writes:

On October 22, a further notification added the name of Professor Leonardo Becchetti to the ticket of the presenters [at the press Conference held on Oct. 24. See translation of his remarks].

Becchetti, a professor of economics at the University of Rome Tor Vergata and an expert on microcredit and fair trade, is believed to have been the main architect of the document.

And in fact, at the press conference presenting the document on October 24, his remarks were the most specific, centered in particular on calling for the introduction of a tax on financial transactions, called a “Tobin tax” after the name of its creator, or a “Robin Hood tax.”

What is next? A sequel or redraft of the Council’s Note on global financial and monetary reform? Let’s just say, it will not be any time soon.

An Italian friend of mine recently complained to me while painfully witnessing the climax of the Italian debt crisis: “Cosi Berlusconi, cosi l’Italia!” (As with Berlusconi, so too with Italy!).

My friend’s comment was an allusion to the Italian Prime Minister’s personal responsibility in dragging the entire Italian nation down with him. News broke late on Wednesday that Berlusconi had agreed to step down from office, as he effectively admitted his 17 years of political power had done nothing more to fix a broken system and as more members of his loose PDL coalition defected to centrist parties.

Even with the likely passing of the European Union fiscal reform measures designed to control Italy’s reckless public spending, it all seems too little too late.

With Berlusconi’s suprise announcement and Italy teetering on national debt default, the European stock markets tumbled late Wednesday. Logically, my friend then said, “Vedi? E cosi anche l’Europa” (See? And so too with Europe).

The domino effect is becoming a real potential. It is frightening. It is downright disturbing for anyone living and trying to survive in Europe. Still, we have to be careful of where we start pointing fingers.

My friend’s Berlusconi = Italy = Europe linear equation is not necessarily totally inaccurate.

The Italian Premier actually deserves some of the blame. For instance his center-right coalition government did recently raise capital gains taxes (from 10 to 20%!) along with corporate, personal income and VAT. This has further scared off the few serious local and foreign investors left in Italy and has sparked greater passion for the national pastime: tax evasion. This is the worst time to be raising taxes when economic growth is so wobbly at home. Berlusconi is an entrepreneur himself. He should know better. It is a total mystery why his business-friendly government is caving into Keyensian economic rebuilding.

All said, Italy and Europe is not a one-man disaster. Nor even a one-party disaster.

Italy’s national debt crisis is, above all, a crisis of national character – an Italian character that has become softened while shedding off its once great virtues of resilience, fortitude, integrity, self-reliance and innovation, just as we have seen in a paradigmatic shift in character with the rise of the modern Western European welfare states (watch Acton Media Director Michael Miller’s Acton Lecture – The Victory of Socialism, where he explains why socialism counts on citizens’ progressive external dependency on institutions and a loss of personal virtue).

France, Spain, Britain Germany Greece, Portugal, Belgium, Denmark. Take your pick: all have lost many of these same virtues of character in varying degrees. The Great Generation of post-World War II Europe is now too old to play the part of come-back hero.

No matter how great a vision or “business plan” the entrepreneurial Berlusconi had for Italy since the mid-1990s, no amount of collective cultural effort was ever possible when his country and Continent has lost its spirit of freedom and independence from big government and generous public programs.

National debt, while symptomatic of unsuccessful political regimes, is more the result of a national deficit of values and virtue.