Posts tagged with: Arthur Brooks

Brian Fikkert, a Professor of Economics and Community Development at Covenant College and the Executive Director of the Chalmers Center for Economic Development, takes a look at Arthur Brooks’ The Road to Freedom: How to Win the Fight for Free Enterprise in this week’s edition of CPJ’s Capital Commentary.

I think it’s a pretty balanced review, and Fikkert rightly highlights some of the important strength’s of Brooks’ work. But he also highlights some specifically theological concerns that have animated my own engagement with “happiness” research:

At a fundamental level, Christians must reject Brooks’ ethical standard: human happiness as defined by autonomous human beings. Brooks’ ethics are rooted in Enlightenment humanism rather than the transcendent standards of God’s moral decrees. To determine if the free enterprise system is moral, Christians must determine if it satisfies biblical standards of justice, not autonomous humans’ notions of happiness.

It’s important to note, of course, that as the head of AEI Brooks is making a case to a much more heterogeneous audience than simply like-minded Christians. And he’s trained as a social scientist, not as a theologian. But I think it would be interesting to hear how Brooks would address some of these challenges not firstly as the president of the American Enterprise Institute but as a professing Christian.

The answer Arthur Brooks gave to Josh Good of Christians for a Sustainable Economy (CASE) at Dr. Brooks’ plenary at the most recent Acton University is a great place to start:

American Enterprise Institute president and 2012 Acton University plenary speaker Arthur Brooks has a recent column in The Washington Post that lists five myths about free enterprise. Brooks’ five myths address some of free enterprise’s most common critiques and do so by giving free enterprise a moral aspect. The five points are especially relevant this election season, he says, because the two candidates represent such different fiscal perspectives.  Here’s a look a myth #2:

2. Free markets are driven by greed.

I once asked Charles Schwab how he built the $16 billion investment company bearing his name. He never said a word about money. He spoke instead about accomplishing personal goals, creating good jobs for employees and the sacrifices along the way — including when he took a second mortgage on his home so he could make payroll.

Entrepreneurs are rarely driven by greed. According to, in 2011, small-business owners made 19 percent less money per year than government managers. And as Northwestern University business professor Steven Rogers has shown, the average entrepreneur fails about four times before succeeding.

Free markets and entrepreneurship are driven not by greed but by earned success. For some people, earned success means business success, while for others, it means helping the poor, raising good kids, building a nonprofit, or making beautiful art — whatever allows people to create value in their lives and in the lives of others.

Earned success gets at the heart of “the pursuit of happiness.” The General Social Survey from the University of Chicago reveals that people who say they feel “very successful” or “completely successful” in their work lives are twice as likely to say they are very happy about their overall lives than people who feel “somewhat successful.” And it doesn’t matter if they earn more or less; the differences persist.

Those acquainted of Acton Institute president and co-founder Rev. Robert Sirico will recognize arguments such as these from Sirico’s recent title, Defending the Free Market: The Moral Case for a Free Economy. Sirico, like Brooks, argues that free enterprise is the economic system that best complements morality.

To listen to Brooks’ 2012 Acton University Lecture, click here.

EcclesiastesThe Preacher says that God “has set eternity in the human heart” (Ecclesiastes 3:11 NIV). This is within the broader context of his discussion of the paradox of exploring the wonder of God’s creation and the vanity of human striving in a fallen world.

But the more immediate context is a discussion of work. In verse 9 he asks, “What do workers gain from their toil?” A bit earlier he discusses the meaningless of work, but concludes that “a person can do nothing better than to eat and drink and find satisfaction in their own toil.”

The entire book of Ecclesiastes is an excellent primer on relating human happiness to material and spiritual goods. These sections on work and satisfaction are some of the most significant along these lines. For as the Preacher continues, such “satisfaction” in work “is from the hand of God, for without him, who can eat or find enjoyment?”

So work is both significant for our satisfaction but no substitute for eternal things. This resonates quite well with the picture of work we get in Lester DeKoster’s book on the subject. It also brings to mind some of Arthur Brooks’ work on the social science of happiness and “earned success.” One caveat, or at least necessary frame of reference for the discussion of earned success, it seems to me, is this idea that our enjoyment of things on this earth is to be properly oriented to and subjoined under the higher things of God.

If, as Augustine put it, “our hearts are restless until they rest in you, O Lord,” then whatever happiness we derive from work, earned success, and everything else “under the sun” must be appreciated as the gifts of God that they are and properly valued as such. Such a perspective helps keep us from confusing heaven and earth, so to speak, and turning work, happiness, or anything else in the created order into an idol.

Prager University has a new course up and running. The lecturer? Arthur C. Brooks, president of the American Enterprise Institute and author of Gross National Happiness: Why Happiness Matters for America—and How We Can Get More of It as well as the recently published The Road to Freedom: How to Win the Fight for Free Enterprise. Brooks’ lecture, titled “Earning Happiness: The Moral Promise of Free Enterprise,” makes a case for the free market as the economic system most conducive to human welfare. In the lecture, Brooks says, “Free enterprise matters not just because of its unparalleled material benefits but because of its unparalleled moral benefits.”


The Prager University course page can be found here.

The deadline to register for the 2012 Acton University conference is this Friday, May 18! This means that you have less than five days to visit to finish that application you started a few days ago.

If I were going to try to explain Acton University, I could say that attendees and faculty alike are professionals who are among the best in their respective fields. I could also say that the number and variety of resources brought to the event by everyone involved, whether directly or indirectly, is simply astounding. Or, I could explain that both of these elements help us to create an environment that cultivates your ability to articulate your understanding of the Judeo-Christian view of liberty and morality and its application in a free and virtuous society. Try as I might, though, none of this accurately describes the experience you’ll have at Acton University this summer. But remember: You only have until Friday to register so that you can find out for yourself!

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.


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AEI President Arthur Brooks answers the question from MSNBC’s Matt Miller, “What do we do when huge forces beyond our control shape our destiny?”

Director of Research Samuel Gregg has a piece in Public Discourse today as part of a series on the 2012 presidential election. “Fix America’s Economy: Two Principles for Reform” explains why limited government is better government, and how the principle of subsidiarity can guide regulation that governments undertake. From the essay:

The economist Arthur Brooks is exactly right when he notes that the end-game of America’s free enterprise culture is not the endless acquisition of wealth. The goal is human flourishing.

In much of Europe, a contrary attitude has long been characteristic of its economic culture: that if people are to lead fulfilling lives, they need to be given things and protected from risk. In policy and institutional terms, this translates squarely into the European social model, which is presently collapsing before our very eyes throughout the Old Continent.

Ironically, however, there is a scarcity of evidence that such policies actually help make people happy. Why? Because people who are always given things know that they have not earned what they have. As evidence, Brooks points to studies that underscore correlations between unearned income and dissatisfaction with life. These illustrate, for example, that welfare recipients are generally less happy than those who earn the same income through employment.

Still, there is a need for governmental regulation of free economic activity—for exceptions to the rule of non-intervention:

But how do we prevent the exceptions from becoming the rule and thus a rationalization for endless economic intervention by the government? Part of the answer lies in a second principle: the much-misunderstood idea of subsidiarity.

Subsidiarity may be summarized in the idea that “higher” organizations (such as governments) should normally not directly intervene in the life of “lower” communities (such as families, businesses, and churches).  Intervention by higher bodies is permitted, however, when (1) a “lower” community has proved itself manifestly incapable of addressing problems that properly fall within its sphere of responsibility; and (2) other communities closer to the problem are unable to resolve the difficulty.

Subsidiarity consequently tells us that in normal circumstances, the function of child-raising is properly performed by families. It also tells us that when a family proves incapable of addressing particular problems associated with child-raising, non-governmental actors such as churches should usually be the first to render assistance.

As Gregg writes in his conclusion, because the principles of economic freedom and subsidiarity both stem from our human nature, successful government cannot ignore them.

If the economy features as the biggest single issue in the 2012 election, defenders of the market should be willing to supplement empirical economic arguments with full-bodied contentions about the nature of human happiness and how we realize it. To do so would not only be consistent with the very best of the American Founders’ vision; it would also breathe new life into America’s great and ongoing experiment of ordered liberty.

Rev. Robert A. Sirico, president and co-founder of the Acton Institute, published a new column today in the Detroit News:

‘Social Justice’ is a complex concept

Rev. Robert Sirico: Faith and Policy

A column by Anthony M. Stevens-Arroyo, a Catholic writer for the Washington Post, makes the claim that “Catholic social justice demands a redistribution of wealth.” He went on to say that “there can be no disagreement” that unions, the government and private charities should all have a role in fighting a trend that has “concentrated” money into the hands of the few. In this conjecture Stevens-Arroyo confused the ends with potential means.

What Stevens-Arroyo is promoting is an attenuated and truncated vision of “social justice” that has fostered a great deal of injustice throughout the world. This path, he should know, has been decisively repudiated by the Church.

He also betrays a strange split in thinking common to those on the religious left, who are quick to denounce the profit motive and commercialism. Yet, they seem to think that the key to happiness is giving people more stuff — by enlisting the coercive power of government. This perverse way of thinking holds that “social justice” demands that we take money from those who have earned it and give it to those who have less of it. That’s not social justice; that’s materialism.

A friend and colleague, Arthur Brooks, a social researcher who is now president of the American Enterprise Institute, has shown that what makes people truly happy is a system that “facilitates earned success among its citizens and does not create disincentives to achieve or squash ambition.” That’s the market economy.

The incredible growth of economies in places like China and India isn’t happening because wealth was being shifted around, but because wealth is being created.

What happens when wealth is “redistributed” is obvious now.

We’re seeing the train wreck of the “social assistance state” in Europe.

In his 1991 social encyclical “Centesimus Annus,” Pope John Paul II warned that a bloated state “leads to a loss of human energies and an inordinate increase in public agencies, which are dominated more by bureaucratic ways of thinking than by concerns for serving their clients, and which are accompanied by an enormous increase in spending.” I call that prophetic.

Let’s also be clear that the Church’s teaching condemns the idolatry of money and material goods.

The Church finds another way, neither condemning market activities nor exalting them beyond their rightful place in the grand scheme of things. It asks us to work for the highest good and to contribute as we can our time, talents and wealth that we have earned for the betterment of the world. The Church also demands that we build just systems of trade that enable the poor to be the agents of their own betterment.

So let’s drop these false notions about what constitutes the Church’s understanding of social justice.

A system that pits the haves against the have-nots, with politicians and bureaucrats acting as referees, should be rejected by anyone sincerely interested in building a just social order.

The Hastert Center at Wheaton College will host a debate tomorrow night between Jim Wallis, president of Sojourners, and Arthur Brooks, president of the American Enterprise Institute, on the question, “Does Capitalism Have a Soul?” Washington Post columnist Michael Gerson will moderate.

In framing the debate, Dr. Seth Norton, Hastert Center director, notes in the press release:

“It’s a good chance to compare different visions of capitalism and market economies, and to discuss the role of government in those economies. There is a lot of debate on these issues in secular venues, but this is a chance to hear two people who have a spiritual common denominator address complicated issues related to economic systems, and that’s a rare event.”

The event begins at 7 p.m. and is open to the public.