Archived Posts July 2012 - Page 10 of 16 | Acton PowerBlog

Blog author: ckaupke
Thursday, July 12, 2012

Yesterday I blogged about the unintended consequences of the federal government’s mandate that Stafford student loan interest rates would not double as scheduled on July 1. Organizations such as the Jubilee USA Network praised the government’s action as an act of Christian charity towards students who were oppressed and taken advantage of by unscrupulous lenders. The phrase “predatory lenders” has been coined to describe entities that intentionally deceive borrowers into accepting loans they won’t be able to repay without going bankrupt. This is the accepted narrative, and is certainly what the Jubilee USA Network would like us to believe is true. However, this may not be the whole story.

In a working paper called “Complex Mortgages,” a group of four economists studied the differences between traditional mortgage borrowers – who paid down their balance over time – and complex mortgage borrowers, and found considerable evidence that suggested that many complex mortgage borrowers may have gone into mortgages fully intending to default. Thus the paper coined the term “predatory borrowers.”

The paper found that people who defaulted on complex mortgages were more likely than traditional mortgage borrowers to be highly educated and more highly paid, and to have higher credit scores, and they often defaulted even though they were not suffering financially. Complex mortgages are also more frequent in “non-recourse” states, where borrowers are legally protected from being pursued by lenders.

In summary, many mortgage defaults were not the fault of unscrupulous lenders, but rather, of unscrupulous borrowers. The accepted explanation for the housing bubble may only explain a part of the problem. If so, it is a sign of the moral laxity of our times that so many people seem to have no qualms about entering into agreements they fully intend not to keep.

Click here to read more.

Blog author: jcarter
Thursday, July 12, 2012

Capitalism Is Not…
Isaac Morehouse, Values & Capitalism

Capitalism gets saddled with a lot of baggage that doesn’t properly belong to it. Some of this is the result of ignorance of basic economics, some of it a poor reading of history, but most of it is due to a bad definition of capitalism.

Will the Obamacare “Tax” Trump Religious Liberty?
Seana Sugrue, Public Discourse

Though the Supreme Court has long been hostile to tax exemptions for religious reasons, the Religious Freedom Restoration Act and the Establishment Clause should give religious organizations reasons to hope that they won’t be penalized by the Obamacare “tax.”

Striking Contrast in Median Incomes of Men and Women Since 1968
James R. Rogers, First Things

Between 1968 and 2010, the number of men in the workplace grew by 68.6 percent. Over this same period, the number of women participating in the paid workplace more than doubled, increasing by a whopping 118.7 percent. Prior to 1979 there were more men working in the paid workforce than women. Since 1979, women have outnumbered men in the paid workforce every year.

Voucher demand soars in Louisiana
Will Sentell, The Advocate

More than 10,000 students have applied for state vouchers to attend private or parochial schools rather than troubled public schools, which is well above initial estimates, officials said Wednesday.

Most church-goers are used to announcements asking them to silence their cell phones before services begin. In a twist, Archbishop Lori of Baltimore did just the opposite, urging a congregation to pull out their cell phones and use them during Mass.

…Archbishop William Lori of Baltimore…called on the congregation to open their cellphones and text the word “freedom” or “libertad” to 377377. It was part of the U.S. bishops’ religious liberty text campaign, and in two minutes about 2,500 people suddenly joined the effort. Those who texted signed up to receive text messages about the campaign, which still continues. Archbishop Lori admitted that asking people to turn on their phones at Mass was a first for him – and likely a first for everyone in the congregation.

An overflow crowd of 5,000+ people attended the July 4  Mass at the Basilica of the National Shrine of the Immaculate Conception in Washington, DC, to close the U.S. Catholic Bishops’ ‘Fortnight for Freedom’ campaign.

View the video of Archbishop Lori here.

For more on the Fortnight for Freedom, see ‘We didn’t pick the time, nor did we pick the fight‘ and “New Video: HHS Mandate and Religious Liberty‘.

Kevin DeYoung, senior pastor at University Reformed Church in East Lansing, Michigan and regular blogger at The Gospel Coalition, featured Rev. Robert Sirico’s latest book, Defending the Free Market: The Moral Case for a Free Economy, on his blog. DeYoung praises Defending the Free Market for making a serious moral case for a free market system:

Robert Sirico, Defending the Free Market: The Moral Case for a Free Economy (Regnery 2012). Rev. Sirico is a Catholic priest, the president of the Grand Rapids based Acton Institute, and a former radical leftist. As you can guess by the title, he’s since said goodbye to his socialist and Marxist leanings. It’s a shame than in our hyper-partisan climate many people will automatically dismiss the book as Republican propaganda. But it really isn’t. Sirico is picking up where Michael Novak left off in making a strong moral case for capitalism, free markets, and the calling of the entrepreneur. It’s a case that Christians need to consider more carefully, even if you end up disagreeing with some of Sirico’s points, especially the many pastors who bring a superficial understanding of business and economics with them into the pulpit. This would be a great book to read and discuss in a small group, a book club, or a senior seminar.

For a free chapter of Sirico’s book, check out the official book site here.

Cranach, autoritrattoDaniel Siedell, Director of Cultural and Theological Practice at Coral Ridge Presbyterian Church, Fort Lauderdale, Florida, has a fine review of Steven Ozment’s The Serpent and the Lamb: Cranach, Luther, and the Making of the Reformation in the latest issue of Books & Culture.

As Siedell observes, “Ozment liberates Cranach from the confines of art history by offering a broader cultural framework within which to evaluate Cranach’s historical significance.”

One of the merits of Ozment’s study is that he thus situates Cranach in the context of his position in the royal court of Frederick the Wise:

His duties included decorating the Elector’s castles, designing and painting festival tents and uniforms, documenting hunting trips and his extensive relic collection, as well as making cake molds for birthday parties. This kind of workshop production has struck art historians as unbecoming of a fine artist.

Indeed, there is much in the modern approach to art that disdains such worldly and workaday considerations. As Siedell writes, noting a piece on the entrepreneurial aspects of early modern art, “most artists, especially those working at the highest echelons of culture, are obsessed with getting paid, in part, because at those levels, payment is much more sporadic and asking for it much less becoming.”

Indeed, “Art does not exist without some kind of market. The task of any artist is to find—or create—it, yet art historians have been slow to accept the market as a defining feature of artistic practice.”

As for the theological and religious aspects of his life and work,

Ozment’s Cranach embodies a proto-Lutheran approach to culture and vocation. Apparently unconcerned with the burden of demonstrating or achieving his salvation through his work, Cranach was freed to use and enjoy his God-given talents as a painter, politician, businessman, and advisor. He is also a historical example of what James Davison Hunter has called, in To Change the World (Oxford University Press, 2010), “faithful presence.” The Serpent and the Lamb makes the convincing case that without Cranach’s faithful presence, the Lutheran Reformation would not have possessed the scope that it had.

For more on Ozment’s book on Cranach as well as more generally on the Lutheran doctrine of vocation and its relevance for today, check out the eponymous blog of Gene Edward Veith.

And for more on art, culture, and the Christian calling, check out Abraham Kuyper’s newly-translated work on common grace in science and art, Wisdom & Wonder (also reviewed in the latest issue of Books & Culture).

Acton Institute president and co-founder Rev. Robert Sirico is slated to appear on The Frank Pastore Show tonight at 9:00 p.m. EST. Based out of Los Angeles, the Frank Pastore Show explores “the intersection of faith and reason.” Sirico’s segment can be streamed online at the show’s website.

Blog author: hunter.baker
Wednesday, July 11, 2012

Young people everywhere are attracted to the idea of doing good as they consume products and services. Tom’s Shoes appear on the feet of students all over my campus. The shoes come with a promise that a pair will be distributed in the underdeveloped world each time a pair is purchased. The same is true of Warby Parker glasses. I own a pair, though I bought them for affordability and quality rather than because I wanted to see a pair distributed. Young people are also busy buying “fair trade” coffee, t-shirts, and other goods. The idea is that through our buying habits, we can achieve a greater good than the one that comes from a straightforward exchange of money for products and services.

This concern for those who are less well-off or who live at a disadvantage to ourselves is, of course, nothing new. Certainly, the desire to aid the poor, the widow, and the orphan is a core element of the Judeo-Christian tradition. In my own generation (and really a generation or two before me), Francis Schaeffer criticized Americans (comfortable Christians included) for their addiction to “personal peace and affluence” and their “noncompassionate use of wealth.”

The buying practices I have mentioned are aimed at curbing the tendency of well-off westerners to consume too casually and perhaps too enthusiastically. There is an attempt to encourage thoughtfulness about the way one acquires consumer items. Buy the shoe that results in a pair being delivered to a poor person in Africa at the same time. Purchase the goods that have been produced in a more humane fashion than the ones that belch forth from a sweatshop. Good ideas. (more…)