Posts tagged with: adam smith

A simple example of hamburgers being made at home versus at a restaurant can help illuminate the explosion of prosperity since the Industrial Revolution, says Don Boudreaux in this Marginal Revolution University video.

The story of the division of labor and development of specialized tools is an old story (Adam Smith introduced the concept in his Wealth of Nations), but it still has tremendous explanatory power about how prosperity is created.

Acton Institute Director of Research Samuel Gregg was a guest on Thursday’s edition of Kresta in the Afternoon on the Ave Maria Radio Network; his conversation with host Al Kresta touched on Europe’s current struggles with Islamic terrorism, with a focus on this week’s attacks in Brussels, Belgium, and then shifted to a preview of Sam’s upcoming Acton Lecture Series address on Pope Francis, Poverty, and the Economy. If you’d like to attend that lecture here at the Acton Building on March 30, click here to register.

You can listen to the full interview via the audio player below.

Working For Our Neighbor“If you are a manual laborer, you find that the Bible has been put into your workshop, into your hand, into your heart. It teaches and preaches how you should treat your neighbor.” –Martin Luther

Christian’s Library Press has now released Working for Our Neighbor, Gene Veith’s Lutheran primer on vocation, economics, and ordinary life. The book joins Acton’s growing series of tradition-specific, faith-work primers, which also includes Baptist, Wesleyan, Pentecostal, and Reformed perspectives.

Veith, who describes Martin Luther as “the great theologian of vocation,” believes Luther’s approach is distinct in approaching vocation as a manifestation of “the spiritual and the physical, transcendence and incarnation, ascent and descent, faith and love, love of God and love of neighbor.” Luther’s theology “shows the interconnections of faith, work, and economics not just theoretically, but practically,” Veith writes, “and discloses how the ordinary, seemingly secular activities of everyday life are essential dimensions of Christian spirituality.”

Beginning with a hearty critique of Max Weber’s classic work, The Protestant Ethic and the Spirit of Capitalism, Veith argues that the Reformation’s influence on capitalism has long been mischaracterized and misunderstood. Although Weber properly identified a variety of psychological and cultural factors, his analysis of the theological and spiritual connections fell remarkably short. (more…)

The Poverty of NationsTheologian Wayne Grudem has teamed up with economist Barry Asmus to write a book on poverty entitled The Poverty of Nations: A Sustainable Solution. On this edition of Radio Free Acton, we explore the fundamentals of growth and human flourishing, and how Christians should understand economics and aid. You can listen via the audio player below.

Since the era of Adam Smith economists have been asking, “What creates wealth?” One key answer is specialization and trade. On a timeline of human history, the recent rise in standards of living resembles a hockey stick — flatlining for all of human history and then skyrocketing in just the last few centuries.

As economist Don Boudreaux explains, without specialization and trade, our ancient ancestors only consumed what they could make themselves. How can specialization and trade help explain the astonishing growth of productivity and output in such a short amount of time—after millennia of famine, low life expectancy, and incurable disease?

Good now, sit down, and tell me, he that knows,
Why this same strict and most observant watch
So nightly toils the subject of the land,
And why such daily cast of brazen cannon,
And foreign mart for implements of war;
Why such impress of shipwrights, whose sore task
Does not divide the Sunday from the week;
What might be toward, that this sweaty haste
Doth make the night joint-labourer with the day:
Who is’t that can inform me?

–Marcellus, in Shakespeare’s Hamlet

Human beings, with our diversity of gifts, talents, and dispositions, were created to, as Adam Smith put it, “truck, barter, and exchange.” In other words, we were made to trade.

But we were not created to be constantly trucking, bartering, and exchanging. That’s the central truth about humanity that the commandment concerning Sabbath rest communicates:

Remember the Sabbath day by keeping it holy. Six days you shall labor and do all your work, but the seventh day is a sabbath to the Lord your God. On it you shall not do any work, neither you, nor your son or daughter, nor your male or female servant, nor your animals, nor any foreigner residing in your towns. For in six days the Lord made the heavens and the earth, the sea, and all that is in them, but he rested on the seventh day. Therefore the Lord blessed the Sabbath day and made it holy.

Over at The Gospel Coalition today, I expand on the news of Amazon’s new delivery service on Sundays to discuss “Sabbath Rest and the Moral Limits of Consumption.”

Just as we sleep each night to give our bodies rest from daily labors, our souls (as well as our bodies) need rest from mundane and worldly activities. This is the kind of rest that the Sabbath is designed to provide. The Sabbath principle calls us to rest from the gratification of our earthly desires, whether they be morally permissible or not, and whether we consider them to be work or leisure.
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khomeiniAs a child I was fascinated with world news and current events. I was especially drawn to reports about the rabid anti-Americanism in Iran and their almost decade long war with Iraq. It was not the film “Argo” or even living in the Middle East that renewed my interest in Iran, but an excellent book by Mark Bowden titled, “Guests of the Ayatollah: The Iran Hostage Crisis: The First Battle in America’s War with Militant Islam.” Still, I knew little about the suffering of Iranians, especially Christians, in the aftermath of the Islamic Revolution.

Earlier this year, I read “Prisoner of Tehran,” another impressive book about the Islamic Revolution in Iran. The author, Marina Nemat, delivered a keynote address at Acton University this year and that’s where I sat down to interview her about her prison experience and the state of the Middle East today. She offers a lot of insight on torture, the hope we have as Christians, and what exactly is going on today with many of the uprisings we see in that region in the news.

The feature article, “But What if They’re All Republicans?” is written by Andrew Yuengert. He is a professor of economics at Pepperdine University. Yuengert argues that an overly politicized Catholic episcopacy damages the Church’s social witness.

David Deavel reviews a new work on Adam Smith authored by James Otteson. The book on Smith is part of the Bloomsbury series “Major Conservative and Libertarian Thinkers.” Deavel notes in his review, “In James Otteson’s short, witty, and well-sourced introduction to Smith, one can see why Kirk and Burke thought so highly of this figure— and why our contemporaries should, too.”

Samuel Gregg’s Tea Party Catholic is garnering a lot of attention and we offer an excerpt from the book in this issue. The article focuses on Charles Carroll of Carrollton. Carrollton was the only Catholic signer of the Declaration of Independence and the last surviving signatory of the document.

Margaret Thatcher is honored as the “In the Liberal Tradition” figure. “Economics are the method; the object is to change the heart and soul,” Thatcher once told the Sunday Times.

There is more content in this issue of Religion & Liberty and you can find it all on our publications page. Check out my editor’s notes for the issue too.