Posts tagged with: business

Blog author: KHanby
Wednesday, November 30, 2016
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“An underlying theme in basic economics says, ‘offering a product for free can destroy the local economy’” writes Luis Miranda.  Miranda recently watched Poverty, Inc and since seeing the award winning Acton Institute documentary he has shared some of its lessons in an article at The Indian Economist.  He begins by explaining how often times aid can harm its recipient more than help them.

A farmer in Rwanda goes out of business because he cannot compete against an American church sending free eggs to feed starving Rwandans. A rice grower in Haiti stops growing rice because he is unable to compete against very cheap rice coming from rich farmers in the US who receive huge subsidies. A local cobbler goes out of business in Africa when TOMS shoes land up in the village and are distributed for free.

In all these cases, the donors had honest intentions. The American church wanted to feed starving people in Rwanda. The US government wanted to feed the disaster-stricken Haitians. Blake Mycoskie, the founder of TOMS, genuinely wanted to help Africans who did not have proper footwear.

Miranda continues to share key takeaways from Poverty, Inc.  Next he shares how although aid can appear to be effective in the short term, it can create negative effects in the long term. (more…)

As, no doubt, many readers are getting flooded on social media with think pieces and hot takes (not to mention apocalyptic worry or celebration), the point of this post is simply to look at what the data seems to indicate about those who voted for President-elect Donald Trump and his opponent, Sec. Hillary Clinton. I’ll add a few thoughts at the end, but I am mostly just fascinated with the result, which shows more diverse support for each candidate than I had expect. However, I am also, like many, disappointed at the passions, particularly anger, that motivated some voters and which will remain with us, no matter what our party preferences, if we do not make a point to address them.

That said, there is a temptation, especially as of late, to paint supporters of either candidate with broad brushes (often unfavorably but sometimes overly flattering too). Neither serves the virtues of wisdom, prudence, or love, which ought to be at the forefront of any Christian social engagement. So, with the encouragement of those virtues as my goal, lets look at that some of the most interesting demographic groups this year.

I’ll be using New York Times exit polling data throughout. You can view it all and compare with past elections here. (more…)

clinton-trumpImagine if Donald Trump made a campaign promise that he would lower the pay of every American, but would ensure that the poorest 10 percent have their pay lowered the most. Would you vote for him then? Or imagine if Hillary Clinton said she would increase inflation substantially to make the economy more “fair” for everyone. Would she win your support?

Neither candidate has made such a claim—at least not directly. The American people would immediate reject such harmful economic policies, and politicians know they’d be rejected for making such inane promises.

In reality, though, both Clinton and Trump (as well as the candidates for the Green Party, Constitution Party, and the American Solidarity Part) have promised to implement policies that would have the same effect as increasing inflation or reducing pay, for all have proposed a means of lowering purchasing power.
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Blog author: jballor
Monday, October 10, 2016
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taxesLast week, before the most recent news about Donald Trump and the current US presidential campaign burst onto the scene, Think Christian ran a short reflection of mine on the question of taxation. As I argue, “There is no duty to pay anything other than what we owe in taxes. But whatever we do owe we must pay in good conscience and out of a spirit of justice.”

If you spend any time on the internet reading about political liberty, you are likely to come across the formula, “Taxation is theft.” The picture the Apostle Paul paints is rather different. The point of departure for my thoughts on taxation is his instruction: “Give to everyone what you owe them: If you owe taxes, pay taxes.”

So the moral status of taxation as such doesn’t seem to be problematic. But as I note in the piece, the question of implementation is different and much more complex. Just because taxation isn’t in itself theft, that doesn’t mean that there aren’t forms or levels of taxation that cannot devolve to that level.

Leo XIII, in his encyclical Rerum Novarum, considers appropriate taxation. He warns of the necessity “that a man’s means be not drained and exhausted by excessive taxation.” He continues,

The right to possess private property is derived from nature, not from man; and the State has the right to control its use in the interests of the public good alone, but by no means to absorb it altogether. The State would therefore be unjust and cruel if under the name of taxation it were to deprive the private owner of more than is fair. (47)

As with so many questions of political economy, the issue turns on the question, “Who decides?” What Paul and Leo make clear, however, is that there is a divine standard of justice to which those who require and those who pay taxes must both adhere.

How much value does religion add to the U.S. economy? According to a new study the effect of religion exceeds the revenue of the ten largest tech companies—including Apple, Google, Amazon, and Facebook combined.

The study, recently published in the Interdisciplinary Journal of Research on Religion, provides three estimates of the value of faith to U.S. society. The first and most conservative estimate takes into account only the revenues of faith-based organizations falling into several sectors (education, healthcare, local congregational activities, charities, media, and food). The second estimate takes into account the fair market value of congregational social services and contribution of businesses with religious roots. Their third, higher-end estimate based on the annual household incomes of America’s religiously affiliated population.

By their most conservative estimate, the economic contribution of the religion sector to the U.S. society is roughly $378 billion a year: healthcare ($161.0 billion), local congregational activities ($83.8 billion), education ($74.0 billion), charities ($44.3 billion), media ($0.9 billion), and food ($14.4 billion).

At ERLC, I have more more on this study and how they determined how religion affects the economy.

In our discussions about reviving a healthy and holistic theology of work and vocation, it can be easy to get stuck in the realm of the theoretical. But what does it actually look like in practice, whether as an individual or enterprise?

In an event co-sponsored by the Acton Institute and hosted at Southeastern Baptist Theological Seminary, several North Carolina businessmen share their insights and advice on a range of topics, including company culture, employee discipleship, and the church’s role in ministering to businesspeople. Moderated by Preston Parrish of Corporate Chaplains of America, the panel includes Cliff Benson, Bill Boddie, Don Dancer and Sidney Hinton.

 

Blog author: jsunde
Thursday, December 10, 2015
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elvesIn “The Elves and the Shoemaker,” the famous fairy tale by the Brothers Grimm, a cobbler and his wife struggle to survive, barely making enough to eat (never mind investing in the future of their business).

One morning, however, they wake to find that their last scraps of leather have been turned into a remarkable pair of shoes. Not knowing the source of such craftsmanship — and apparently incurious — the cobbler sells them off at a higher price, gaining new capital to grow his business. Each night thereafter, the miracle continues, and the enterprise grows in turn.

Months later, they finally take an interest in the source of such help, staying awake through the night to spot two naked elves, each happily laboring to make more shoes. The wife sews clothes for the elves, who, after finishing their work, express their thanks and graciously depart, never to be seen again.

One can find several morals or lessons in the tale, but Jeffrey Tucker does a marvelous job of highlighting its themes on the meaning of work, the gift of exchange, and the glories of capitalism. (more…)