Posts tagged with: Budget Crisis

Napp Nazworth, a reporter for Christian Post, interviewed Rev. Robert A. Sirico about House Budget Committee Chair Paul Ryan’s budget plan, “The Path to Prosperity: A Blueprint for American Renewal.” Nazworth asked Rev. Sirico, Acton’s president and co-founder, to talk about how closely Ryan’s plan lines up with Catholic social teaching, as the Republican budget chair has claimed, and to speak to criticisms of the plan. “A group of about 60 politically liberal Christian leaders wrote a letter taking exception to Ryan’s comments, calling it ‘morally indefensible,’” the reporter wrote. “In an interview with The Christian Post, Congresswoman Rosa DeLauro (D-Conn.) also said the Ryan budget is in opposition to Catholic teaching.”

Nazworth: Ryan said that subsidiarity is essentially federalism and that the budget considered the poor and vulnerable by reducing or cutting programs that lead the poor to become dependent on government. Did Ryan seem to understand those Catholic doctrines correctly?

Sirico: Subsidiarity is not “essentially” federalism. There is a dimension of federalism that reflects some of the values of subsidiarity. But, federalism is a political structure. And, subsidiarity is more of a social and theological principle, so that federalism speaks about one way of governing people. You could have subsidiarity in a society that didn’t live under an American form of government.

There is a kinship. I wouldn’t say it is essentially the same, but there is a kinship between the two, that you should leave things to people who know best. The motivation of subsidiarity is that human needs are complex and sometimes very nuanced. When you pull back and make human needs abstract, you don’t get to the core of what the need is, so that people closest to human need can make that determination better than bureaucrats or politicians that have other pressures and motivations far away from the person who is actually in need.

Read “Catholic Priest on Ryan Budget and Church Doctrine” by Napp Nazworth on Christian Post.

Faith leaders protest budget cuts (at U.S. Capitol, not NCC meeting)

A “budget is a moral document,” right?

The Institute on Religion & Democracy reports that following the loss of a major donor, the National Council of Churches (NCC) finds itself “closer than ever before to the precipice” of financial collapse. The progressive/liberal church coalition, comprised largely of mainline Protestant and Orthodox churches, is running out of dough. IRD’s Barton Gingerich:

Evangelical Lutheran Church in America Presiding Bishop told the NCC’s September board meeting: “We have 18 months sustainability.” All voting NCC board members were scrambling for “immediate sustainability,” mostly behind closed doors as they discussed the NCC’s audit and budget. Further highlighting the crisis was an interruption of the meeting by placard waving union employees distressed over benefit cuts to NCC staffers.

Meeting in secrecy? Workers protesting draconian budget cuts? In response, some NCC leaders suggested that the organization do nothing for a year but seek out prospective donors. Of course, they used the appropriate biblical vocabulary for “shutting this place down”:

At one point, the board broke up into small table groups to propose solutions to these besetting toils. One table, headed up by Bishop Mark Hanson and United Methodism’s Betty Gamble, even recommended the NCC take a “jubilee.” Under this plan, the NCC would withdraw from public activities and focus on fundraising. Many delegates pointed out that such a recess would negate any reasons for donors to contribute.

But how strange that the same NCC leaders who signed onto the Circle of Protection’s faux-prophetic admonition to “resist budget cuts that undermine the lives, dignity, and rights of poor and vulnerable people” are now looking at slashing pension and health care benefits for their own employees. Didn’t the NCC hear that our nation is facing a health care crisis? Wasn’t it General Secretary Dr. Michael Kinnamon who not so long ago reminded us all that with the troubled economic times, “millions more are finding increases in medical co-payments and participation requirements unmanageable or are losing health benefits with the loss of employment”?

Didn’t NCC’s president, the Rev. Peg Chemberlin, point out when she endorsed the Circle of Protection that Christians have sometimes failed to heed “the call to economic justice in our national life. Sometimes we have gotten so concerned about our personal lives we have neglected this very point”?

The employees of the NCC, and presumably their union steward, don’t care for the budget cutting idea at all:

Accentuating the tension was an interruption by the NCC staffers’ union, the Association of Ecumenical Employees, which marched into the board meeting waving placards. Ironically, the pro-union NCC has been trying to reduce retirement and health benefits with its own union. It seems that contract negotiations have lasted nearly eight months, prompting distressed unionists to conduct their silent interruption, after which they quietly marched out.

Maybe the memory is too fresh in their minds of NCC executives getting themselves arrested in the U.S Capitol Building last summer while they were offering “public prayers asking the Administration and Congress not to balance the budget on the backs of the poor.”

Is it finally sinking in among some on the religious left that you can’t just wish away a looming budget meltdown? Perhaps the NCC leadership would profit from a review of the Acton Institute’s Principles for Budget Reform or the website of Christians for a Sustainable Economy. They won’t find any fundraising tips on these pages but they might just start to better appreciate the virtue of fiscal prudence.

Writing in today’s Pittsburgh Tribune-Review, Rev. Robert A. Sirico, president and co-founder of the Acton Institute:

Jobs & deficits — the moral equation

By Rev. Robert A. Sirico

Thursday, September 15, 2011

The Genesis account of creation tells us that from the beginning, humanity was created to work. God puts Adam in the garden to “work and watch over it.” The Scripture provides an insight into our nature: We are all, man and woman, called into this life to find our vocation, the work that is uniquely ours and contributes to the flourishing of the wider community.

This explains why we are naturally so troubled about what appear to be merely economic problems: intractable unemployment and the various schemes put forth by policy makers to spur job creation. But behind the question is the reality that we naturally prefer people to be productive contributors to our economic life.

How we accomplish that is the subject of the debate over our unsustainable budget and debt trajectory. Do we choose those policies that make room for more freedom in the market, unleashing the creative potential of the American worker, business owner and entrepreneur? Or do we default, once more, to political and bureaucratic measures that require heavier burdens of taxation and regulation?

A government that actively sustains poverty by removing natural incentives to work is gravely in the wrong. Such government is without its essential anchor, which is that understanding of humanity as creative and productive.

The super committee created by Congress’ debt-ceiling compromise has begun its work to find $1.5 trillion in federal spending cuts ($2 trillion if the committee accepts the cuts corresponding to President Obama’s proposed stimulus). Even after this reduction, though, the nation’s debt will be unacceptably burdensome.

In 2011, for the first time since World War II, the amount of our total federal debt will surpass annual GDP. This is perilous, because economic capacity begins to be seriously affected when a country’s debt reaches 80 percent of GDP.

The super committee should begin by cutting social programs that perpetuate cycles of poverty. The only way to rise from poverty is to contribute to economic activity — a job is the best poverty program ever devised.

The federal government has spent hundreds of billions of dollars in the “War on Poverty” since Lyndon B. Johnson declared it, but we have next to nothing to show for the expense. And the agenda put forward by the religious left devalues the human person, treating the poor as objects of charity rather than as economic contributors.

The federal government does have real obligations to current generations that must be met. But without substantive reform of our largest entitlement programs, the country’s long-term fiscal health cannot be secured.

We cannot leave future generations with the full burden of our debt, which becomes a heavier weight the longer it is left unaddressed.

Congress must remember that economic growth is driven by innovations — by improvements in how the population produces goods and delivers them. The incentives caused by an expanding government run counter to economic growth because they run counter to human nature.

As reform of federal spending is undertaken, all cuts must be made with an eye to freeing citizens of every class to pursue their economic potential — to engage in the kind of dignified work that is essential to our nature, properly understood.

In “Stop Coddling the Super-Rich” investor Warren Buffett, one of the world’s wealthiest men, makes a case for upping the tax rate on the “mega-rich” in America. In a response published on National Review Online, Acton Research Director Samuel Gregg observes that “this is a broken record that Mr. Buffett has taken to re-playing over the past five years.” He points out that the U.S. tax system is already heavily progressive (no pun intended) and that the label “mega-rich” may not be as obvious as Buffett would like us to believe:

It’s safe to say that a substantial number of these people operate small-to-medium-size businesses that don’t play the corporate welfare game a la General Electric, that are already subject to some of the world’s highest corporate tax rates (most of which is paid by the owners of companies), that reinvest much of their income in expanding their activities and taking on new risk, and, above all, that employ people. They are the engine of growth and employment in America today — not the United States government. Why on earth would we disincentivize them from creating value and jobs by raising their taxes?

Read Samuel Gregg’s “Taxing Warren Buffett” on NRO.

Rev. Sirico was interviewed by Kathryn Jean Lopez of National Review Online on the national debt of the United States, the debt ceiling, and the moral issues of the budget debate. Their discussion spanned from how a prudent, discerning legislator should look at the debt-ceiling debate to the mind set needed when considering spending cuts:

LOPEZ: So many spending cuts can be spun, some perhaps legitimately so, as mean (and liberal policymakers and activists — many with the best of intentions — are all too happy to spin them). How should we be thinking of such things? Does it require a change in thinking?

SIRICO: The question should be right-or-wrong, prudent-or-imprudent, not mean-or-nice. Religious leaders bring their principles into the political debate, but the application of those principles is a prudential question, not an emotional one. It’s also an opportunity for us to reflect upon what governments really need to do, and what is more appropriately done by non-state entities — and I’m not talking about the ones (such as many religiously associated charities and relief agencies) that receive the bulk of their funding from various federal-government contracts.

Yes, a change of thinking is required. If cuts are to be made, then Americans cannot operate under the mentality that “it is acceptable to cut government programs as long as it isn’t government programs that I benefit from.” The core problem is that few are eager to take the pain now. If we don’t, the pain will be much more unbearable down the road. Consider how we got into this situation in the first place.

In the end, reining in spending will protect programs that aid those truly in need, and provide the space for non-state and non-government-funded agencies to undertake much-needed work — that is, to secure the entire infrastructure that makes prosperity possible. That not only creates the grounds for economic flourishing, but preserves human dignity.

Click here to read the full interview.

Yesterday Senator Harry Reid finally proposed a budget plan – one week before the United States is set to default. It is about time that Senate Democrats joined President Obama and House Republicans in offering a concrete budget proposal; however, their budget plan passes the buck onto future generations.

The government cannot continue to leave budget woes to future generations, and this is exactly what Senator Reid is trying to do. In fact, after viewing a video found on his website, he seems rather proud of the fact that his budget proposal doesn’t touch the three largest entitlements—Social Security, Medicare, and Medicaid—which alone consist of 40 percent of federal spending in 2010 (entitlement spending makes up 57 percent of federal spending). Instead of making the tough call, proposing reforms and cuts to spare future generations from the large financial burden these programs bring, the Senate Democrats are deciding to continue with things as they are. Judging by the current financial state of the U.S. this is rather problematic.

The Senate Democrats’ budget proposal disregards the principles of stewardship. By not cutting or reforming entitlements they are not looking long term to ensure the creation of a strong and stable economy for our children and grandchildren.  Jordan Ballor in his commentary “Do Less with Less: What the History of Federal Debt and Tax Leverages Teaches” offers a pretty common sense solution for Senator Reid:

Raising taxes without such assurances, even for such a critical cause as the public debt crisis, is pure folly. To really address the structural deficits at the heart of the federal budget, particularly with respect to entitlement programs like Social Security, Medicare, and Medicaid (which together accounted for 40 percent of federal spending in 2010), the government simply needs to find ways to do less with less.

Entitlements have greatly contributed to our deficit problem, and a sound budget solution will recognize their contribution to the deficit and look to rectify the situation.

As Samuel Gregg articulates in “Deficit Denial, American-Style” the U.S. must pay off its debt if it hopes to economically grow and flourish:

After examining data on 44 countries over approximately 200 years, two economists recently found evidence suggesting that developed nations with gross public debt levels exceeding 90 percent of GDP (i.e., America) find that their medium-growth rates fall by one percent, while average growth declines by an even greater proportion.

The United States can begin down the path of prosperity by shrinking government and doing less with less and fostering an economic climate that is strong and vibrant for future generations.

Also see the Acton Institute’s  Principles for Budget Reform which can be viewed by clicking here.

 

 

 

Writing in the Sacramento Bee, Margaret A. Bengs cites Rev. Robert A. Sirico’s Heritage Foundation essay “The Moral Basis for Economic Liberty” in her column on faith communities and government budget battles.

As a priest, Sirico has met many entrepreneurs “who are disenfranchised and alienated from their churches,” with often little understanding by church leaders of the “vocation called entrepreneurship, of what it requires in the way of personal sacrifice, and of what it contributes to society.”

This lack of understanding, he believes, is due to the collection basket economic model which “tends to foster a view of the economic world as a pie that needs to be divided.” The entrepreneur, instead, engages in producing wealth, not redistributing it.

“Entrepreneurs create jobs, reduce human suffering, discover and apply new cures, bring food to those without, and help dreams become realities,” he says. In contrast, “the welfare state is too often thought of in morally favorable terms, but its social consequences, however well-intended, can be largely damaging.”

Read “Putting faith in economics to help the poor” in the Sacramento Bee.

Also see Acton’s Principles for Budget Reform and download the free “What Would Jesus Cut … from the Constitution” poster.

Blog author: hunter.baker
posted by on Sunday, April 3, 2011

While visiting my grandmother’s home for her 95th birthday a little evening television surfing brought us to House Hunters International. We observed with fascination as a couple living in New Orleans worked toward their move to the French countryside.

The husband was a professional trumpeter apparently making money on the side as a carpenter. The wife was identified as a dancer of some sort. While we heard the husband pop out a few bars of When the Saints Come Marchin’ In on a couple of occasions, the wife did not provide any sort of evidence of her spinning and twirling chops. They had a young son and seemed to have a friendly community of pals in the Big Easy.

During the episode, we discovered that the wife was French and that was part of the motivation for making the move to France, but the big draw, enthusiastically embraced by the husband, was that “Everything is free there!” He went on to mention health care as an example.

The first thing that comes to mind is that this young fellow needs an immediate short course in Robert Heinlein’s TANSTAAFL (There Ain’t No Such Thing as a Free Lunch). Someone is paying, my friend. Now, maybe it’s a rich guy. I don’t know. Does the rich guy owe this couple free healthcare? Or then again, maybe they will pay for it after all. Maybe they’ll pay in taxes. Maybe they’ll pay in other ways than money. Maybe they’ll pay with things like time and DMV-style inconvenience.

The second thing that occurs to me is that policymakers in France can’t be very happy with developments like this. A young couple with no certain way to make a living is moving to their country to take advantage of “free” things like healthcare. THAT’S GREAT NEWS!

The word “sustainability” applies to things other than the environment. :-)

Jordan Ballor, research fellow at the Acton Institute, will be a panelist at the American Enterprise Institute’s event “I Hope I Die Before I Get Old” on Wednesday, April 20. The event runs from 6-8 pm at the Wohlstetter Conference Center in Washington (1150 Seventeenth Street, N.W., Washington, D.C. 20036). The panel will be discussing and fielding questions on America’s long-term budget crisis and “The Call for Intergenerational Justice.”

Ballor has been very active in both topics. He recently wrote a commentary titled “Back to Budget Basics” and engaged in a discussion with Gideon Strauss, CEO of The Center for Public Justice and co-author of “The Call for Intergenerational Justice,” on The Call. Audio from the discussion can be found here.

If you plan to attend the event please be sure to register. The American Enterprise Institute will also be broadcasting live footage of the event for those who are unable to make it. To register for the event, find out more information, or to watch the event live on April 20th please click here.

Acton On The AirTime for another roundup of recent appearances by Acton folks on radio outlets; today we focus on Acton’s Director of Research, Dr. Samuel Gregg.

On March 16, Dr. Gregg joined host Al Kresta on Kresta in the Afternoon to discuss Pope Benedict XVI’s ongoing efforts to highlight and reconnect Europe with its Christian heritage. The interview is 14 minutes long and available via the audio player below:

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Yesterday, guest host Sheila Liaugminas welcomed Sam to The Drew Mariani Show on Relevant Radio in order to participate in the continuing discussion on the role of unions in society, especially in the aftermath of the Wisconsin protests over legislation to restrict public sector union collective bargaining rights. You can listen to Dr. Gregg engage both host and callers below:

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