Archived Posts November 2012 - Page 2 of 17 | Acton PowerBlog

Below is an excerpt from a 1925 Washington Post editorial on President Calvin Coolidge’s Inaugural Address. The comments speak directly to the moral arguments Coolidge was making for a free economy. It is the kind of moral thinking about markets and taxes we desperately need today from our national leaders.

The excerpt comes from an excellent book, The High Tide of American Conservatism: Davis, Coolidge, and the 1924 Election by Garland S. Tucker, III.

Few persons, probably, have considered economy and taxation moral issues. But Mr. Coolidge so considers them, and his observations give a fresh impression of the intensity of his feeling on this subject. He holds that economy, in connection with tax reduction and tax reform, involves the principle of conservation of national resources. A nation that dissipates its resources falls into moral decay. Extravagance lengthens the hours and diminishes the rewards of labor. “I favor the policy of economy,” says Mr. Coolidge, “not because I wish to save money, but because I wish to save people” [emphasis added]. He would protect those who toil by preventing the waste of the fruits of their labor. The burden of taxation is excessive. It makes life more meager, and falls hardest upon the poor. The United States is fortunate above other nations in the opportunity to economize. It is at peace and business activity has been restored. “The collection of any taxes which are not absolutely required, which do not beyond reasonable doubt contribute to the public welfare is only a species of legalized larceny,” is Mr. Coolidge’s vigorously expressed conclusion on the subject of economy.

It’s a logical, simple, and a deeply moral message. Some might call it common sense. Our times and the economic peril we face clearly calls for a commitment to reducing government spending and our tax burden. It has fallen on deaf ears in Washington and much of America. Coolidge’s words resonate today because it is the cure for our fiscal cliff and the ailing economy. And as Coolidge understood so well, it is the moral thing to do.

Blog author: dpahman
Thursday, November 29, 2012

According to AEI author Mark Perry, there is another education-related “bubble” to worry about: the textbook bubble. He writes that this textbook bubble “continues to inflate at rates that make the U.S. housing bubble seem relatively inconsequential by comparison.” He continues, “The cost of college textbooks has been rising at almost twice the rate of general CPI inflation for at least the last thirty years.” Given that many students use loan money to purchase books as well as pay for classes, we might think of this as one of the many sources pumping air into the student debt bubble. But what choice do students (or professors, for that matter) have than to surrender to the textbook “cartel,” as Perry characterizes it? This bubble popping, while a bad thing for the textbook bubble-boys committed to the old, cartel-style model, could be a small relief and contribute to slowing the growth rate of the student debt bubble. (more…)

Ann Schneible, who interviewed Rev. Robert A. Sirico for Vatican Radio today (see PowerBlog post for audio) also published an interview with the Acton Institute president and co-founder on the Catholic news site, Zenit. Excerpt:

ZENIT: In response to those Christians and Catholics who are hesitant about buying into the idea of a free market economy, how can one demonstrate that there are elements to a free market – or Capitalist – economy which are compatible to Catholic social teaching?

Father Sirico: There are a number of elements that can make the connection. I keep going back to this anthropological question because that’s the beautiful way to do it. I think it was Chesterton who said that Catholicism is the religion of stuff, by which he was really addressing the Incarnational nature of the Church. We have incense, and bells, and candles, and vestments, and all these things. In other words – in a non-liturgical context – the material world is good. We see that in the book of genesis. And God places us in the material world and asks us to pursue sanctity there.

The moment he places us in the material world, he places us in the context of limitations and scarcity. This gives rise to economics – which means that we have to find a way that is in accord with our nature, that is ethical, that is appropriate, that is effective – to make use of nature for the glory of God. It is in the same way an architect who studies geometry uses that geometrical precision and technique to build the façade of a cathedral, and thereby rendering praise to God. So too in a different way, the entrepreneur, who discovers the use of something or the combination of other things and represents and organizes them and creates a network and a marketing campaign to build a business, that that architectural construct ends up sustaining many families who participate in that, and sustain many consumers in the sense that they buy a good or a service at a higher quality and for a lower price than they would have otherwise, thereby giving their family a little more money to use at their discretion; all of these things, too, can be considered rendering nature for the glory of God. And that’s enterprise; that’s business. I don’t like the word “capitalism” because I think it’s too narrow a word. I like “free economy,” or “free market.”

Read “A Moral Case for a Free Economy — Acton Institute’s Co-founder Explores Free Market Economy in New Book,” an interview by Ann Schneible on Zenit.

Blog author: jcarter
Thursday, November 29, 2012

When it comes to government programs for redistributing income, nothing is quite as malevolently effective as state lotteries. Every year state lotteries redistribute the income of mostly poor Americans (who spend between 4-9% of their income on lottery tickets) to a handful of other citizens—and to the state’s coffers.

A prime example is yesterday’s Powerball jackpot. Two people became instant multimillionaires from a voluntary transfer of wealth from their fellow citizens. The money came from the 563 million tickets that were sold, as the old adage says, to those who are bad at math.

The odds of winning were 1 in 175 million, which means that if every person in America had bought a ticket, only two would have won. The chances of a single ticket holder winning the Powerball were only slightly higher than meeting a random stranger on the street who hands you a million dollars.

Yet despite the harm it does to our financially vulnerable neighbors, Christians—who are called to seek justice for the poor—often participate and encourage this activity. Even more disconcerting is that the state not only allows, but participates, in this exploitation. Jordan Ballor explains how lotteries allow the state to prey on the poor:

On Vatican Radio, Acton President and co-founder Rev. Robert A. Sirico discusses his new book Defending the Free Market: The Moral Case for the Free Market Economy with reporter Ann Schneible.

According to Vatican Radio, the broadcasting station of the Holy See:

… Fr Sirico highlighted his objectives in writing this book. Defending the Free Market, he said, was written “with the intention of making accessible economic ideas that I thought were important in general terms; but, in particular, especially for religious people, to understand there is what we call a normative or moral dimension to economic activity.”

“It’s not just, live by the Ten Commandments and open a store,” Fr Sirico explained, but he wanted to demonstrate “that there’s something more internal to the whole dynamism of a market economy that makes sense both economically and morally.”

Click on the media player below to listen to Schneible’s full interview with Rev. Sirico:

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Blog author: jcarter
Thursday, November 29, 2012

On Farmers and Subsidies
Jake Tawney, The American Catholic

One of the farmers explained it in a single sentence, “Subsidies only subsidize those who don’t pay taxes.” 

Value, Trade & Faith
Anne Bradley, Institute for Faith, Work & Economics

One of the biggest debates throughout the history of economics is how value is defined and determined. I want to take a look at this question and what it means for our work and our faith.

With Democracy For All and Freedom for None
Daniel Greenfield, Sultan Knish

When government power isn’t limited, then democracy is just tyranny with a popular vote behind it.

It’s Not Just the Economy’s Fault
Joy Pullman, Values & Capitalism

It irks me that a dominant narrative about why Millennials don’t grow up is “the economy made them do it.”

Review of Silent Spring at 50: The False Crises of Rachel Carson. Edited by Roger Meiners, Pierre Desrochers, and Andrew Morriss (Cato, 2012)

During the 50 years following the publication of Rachel Carson’s Silent Spring, much has been written to discredit the science of her landmark book. Little, however, has been written on the environmentalist cult it helped spawn.

Until Silent Spring at 50, that is.

Subtitled “The False Crises of Rachel Carson,” Silent Spring at 50 is a collection of essays specially commissioned by the Cato Institute and edited by Roger Meiners, Pierre Desrochers and Andrew Morriss. Much like Roger Scruton’s recent How to Think Seriously About the Planet: The Case for Environmental Conservatism, the essays present a unified indictment not necessarily of Carson per se but of the disastrous results wrought by the policies she inspired.

In “The Lady Who Started All This,” environmentalist William Kaufman presents an admiring portrait of Carson as a scientist who unfortunately took a left-turn from her previous works — based on objective, empirical research — when she endeavored to write Silent Spring shortly after her cancer diagnosis. For this ill-conceived approach, Kaufman blames Wallace Shawn, the New Yorker editor who prompted Carson to abandon her “disinterested scientist” voice in favor of a more “adversarial” tone. Since the famous editor signed Carson’s check, the author readily complied. (more…)