Poverty and Perverse Incentives
Ross Douthat, New York Times

[T]he problem of marginal tax rates does suggest at least a few lessons for policymakers focused on mobility and the working poor.

Read more on PowerLinks – 12.12.12…

Conestoga Wood Specialties of Pennsylvania, with 950 employees, has filed suit against the government’s HHS mandate. The Mennonites, who trace their religious roots to the 16th century, have about one million members worldwide. Mennonites understand that life begins at conception, and the owners of Conestoga Wood Specialties do not want to be forced to comply with a mandate that conflicts with their faith.

Read more on Mennonite-owned Company Joins in HHS Fight…

The Michigan legislature passed right-to-work legislation today, a landmark event that promises to accelerate the state’s rebound from the near-collapse it suffered in the deep recession of 2008. The bills are now headed to Gov. Rick Snyder’s desk. The right-to-work passage was a stunning reversal for unions in a very blue state — the home of the United Auto Workers. Following setbacks for organized labor in Wisconsin last year, the unions next turned to Michigan in an attempt to enshrine prerogatives for their organizing efforts in the state constitution. A union-backed ballot proposal was handily defeated by voters in the Nov. 6 election.

Read more on Big Gains for the Union Liberation Movement…

Solidarity designed by Thibault Geoffroy, from The Noun Project

When I moved to west Michigan, one of the things that struck me the most were distinct cultural differences between the different sides of the state. While I was pursuing a master’s degree at Calvin Theological Seminary, I worked for a while in the receiving department at Bissell, Inc. I remember being surprised, nay, shocked, that a manufacturer like Bissell was not a union shop. (All those jobs are somewhere else now, in any case.)

Before attending Michigan State as an undergrad, I had lived in Detroit, and although I never had a union job myself, the cultural expectations of organized labor were (and still are) deeply ingrained on the east side of the state. My dad is a longtime editor at a suburban newspaper, and one of the reasons he still has a job amid the economic downturn and the upheavals facing that industry is his membership in the guild.

But things really are different on this side of the state. That’s one reason why the protests taking place today in Lansing, the centrally-located state capital, are symbolic of two sides of the state, in many ways divided by culture, economy, and politics. As to the latter, consider some statewide candidates for public office in recent memory that haven’t done so well when trying to move beyond west Michigan, including Pete Hoekstra, Dick DeVos, Dick Posthumus. The fight over Right to Work legislation in Michigan is, in this way, a tale of two Michigans.

It is also a tale about two paths forward for Michigan, though. On the one side is the state’s historic identification with Big Labor and the Big Three. On the other side is a Michigan that embraces enterprising innovation and entrepreneurial competition.

The Wall Street Journal editorialized yesterday on this topic (HT: Ross Emmett), and captures the essence of the choice facing Michigan: “Unions loathe right to work because they know that many workers would rather not join a union.”

I think that the right to organize and therefore unions are fundamental to flourishing societies. But what concerns me is that the argument against Right to Work is not about this fundamental right to organize, but rather about protecting the entrenched and embedded political interests of a particular kind of union.

There is a world of difference between voluntary union membership and mandatory, government-enforced, union membership. If the former is akin to something like the freedom of religion, then the latter is more like the government establishment of a particular religion or church. What we need is the separation of Union and State in the way that we have historically had free churches. We need to disestablish labor in the same way that we have disestablished religion in America, while simultaneously protecting the right to organize and join a union as well as the right to worship and express our religious convictions.
Read more on The Separation of Union and State…

The Michigan legislature’s historic vote today on the right-to-work issue raises the important question: Do labor unions offer the best protection for the worker? Liberating Labor: A Christian Economist’s Case for Voluntary Unionism by Charles W. Baird answers that question and explains the Catholic social teaching on the issue.

Read more on ‘Liberating Labor’ and Right-to-Work…

Alexandre Havard leading a recent “Virtuous Leadership” seminar with CEOs and entrepreneurs in Latvia, one of the most industrialized and wealthy republics of the former Soviet Union

The Acton Institute’s Rome office led its recent Campus Martius Seminar with Alexandre Havard, the Russian-French author of Virtuous Leadership (2007),  Created for Greatness: The Power of Magnanimity (2011) and founder of the Moscow- and Washington, D.C.-based Harvard Virtuous Leadership Institute.

Havard, speaking with Zenit’s Ed Pentin in an article following the seminar, said that during today’s economic crisis aspiring and veteran entrepreneurs alike are suffering from an improper understanding of the intimate union between humility and magnanimity, even the most religious and virtuous of them:

It’s much easier to say to God: ‘Do the work in me and I just do nothing. But God very often tells us: ‘I will not do it because I have already given you talents through nature; you have to discover those things and do it …Humility is to say: ‘I have gifts, I have talents, and they come from God.’ You recognize that you have not produced those talents, that they are a gift from him to you. Then magnanimity is to say: ‘I have them but I have to make them fructify, I must develop them and multiply them, and put them at the service of the community and the common good.  So you see these two things come together. [Talents] are not mine. I have been given them and this is my humility; my magnanimity tells me to multiply them and use them.

Havard agreed to sit down with me recently and talk about the moral and character pitfalls in both the East and the West as well as the inspiration for his virtuous leadership training program. Read more on Magnanimity and Humility Make for Good Entrepreneurs…

Prof. Giovanni Patriarca, recipient of the Acton Institute’s 2012 Novak Award given recently in Rome at the Pontifical University of St. Thomas Aquinas, was interviewed by RomeReports Television News Agency in a video released Friday.

Read more on Video: Novak Award Winner Says Religion Inspires Hope, Creativity in Crisis…

On Nov. 28, the Canada-based Fraser Institute released the eighth edition of its annual report, Economic Freedom of North America 2012, in which the respective economic situation and government regulatory factors present in the states and provinces of North America were gauged.

Global studies of economic freedom, such as the Heritage Foundation’s 2012 Index of Economic Freedom and the Fraser Institute’s Economic Freedom of the World 2012, rank the United States and Canada as two of the most economically free countries in the world. But, as data from the North America report shows, not all sections of the countries are experiencing an equal level of economic freedom and it is important to look at areas in which this falters.

States and provinces were evaluated and ranked within three categories: 1) Size of Government; 2) Takings and Discriminatory Taxation; and 3) Labor Market Freedom. The Canadian province, Alberta, claimed the top spot as most economically free, followed closely by Delaware. New Mexico placed 59th, making it the least economically free state, followed by Prince Edward Island of Canada, notching the rank of least economically free area in North America (between the United States and Canada).

The Economic Freedom of North America 2012 report draws a clear link between prosperity and economic freedom, through a comparison of states and provinces. “In the United States, the relatively free Georgia does much better than the relatively unfree West Virginia. In Canada, British Columbia, where economic freedom has been increasing in recent years, has been experiencing considerably greater growth on a per-capita basis than Ontario, where economic freedom has been decreasing in recent years.” Read more on Economic Freedom: Vital for All…

Given all the reassessment going on today about conservatism and its popularity and viability for governing, I recommend picking up a copy of The High Tide of American Conservatism: Davis, Coolidge, and the 1924 Election by Garland Tucker, III.

The author is Chief Executive Officer of Triangle Capital Corporation in Raleigh, N.C. Over the years, I’ve highlighted how Coolidge’s ideas relate to Acton’s thought and mission. And while I’ve read and written a lot about Coolidge, I knew next to nothing about John W. Davis. Davis was a lawyer, ambassador, and Solicitor General of the United States who hailed from West Virginia. He argued 140 cases before the Supreme Court. As the Democratic presidential nominee in 1924, he was also Coolidge’s election opponent.

Davis believed strongly in limited government and economic freedom. He criticized the policies of the New Deal saying, “Whether business is better today than it was yesterday, or will be better or worse tomorrow than it is today, is a poor guide for people who are called upon to decide what sort of government they want to live under both today and tomorrow and for the long days after.”

I reached out to the author to ask him some questions about his book and about the ideas and significance of Coolidge and Davis. Below is the interview:
Read more on The ‘High Tide of American Conservatism’ and Where We are Today…

Susan Brooks Thistlethwaite, professor of theology at Chicago Theological Seminary believes that Jesus had an economic plan. She’s written a book, #Occupy the Bible: What Jesus Really Said (and Did) About Money and Power, and claims that Jesus came to reverse economic inequality.

Read more on ‘Jesus Had An Economic Plan’: Was it Redistribution?…