Posts tagged with: business

In this week’s Acton Commentary, “Solyndra and the False Hope of Green Jobs” I look at the original problem with federally funded Green Jobs. The Solyndra debacle has been called a “microcosm of Obamanomics,” an example of what always happens when the Federal Government starts handing out $500 million checks. That’s true, but it’s a microcosm of something more — of an economy that’s lost it’s understanding of vocation. We stumble around trying to “create jobs” by Congressional action without really knowing what a job is.

A concern for jobs, simply, is dangerous. The dignity of a man’s employment does not come from his salary per se. Rather, it comes from his nature — man is called to work, to till the soil, from the very beginning, and the nobility of his labor is wrapped up in both the activity itself and in its ends. It does not befit a man to do work that is of no consequence.

Sadly, in the rush to “create jobs” by government stimulus, little thought is given to what work really is, or how more of it can be created. It is considered enough that a job run from nine in the morning till five in the afternoon, and that it come with a regular paycheck.

The green jobs movement is especially guilty of this unthinking attitude — indeed, it has never been defined what a green job is, and various bodies give widely varying definitions. If it’s not known broadly what a green job is, it won’t be possible to know whether all green jobs are compatible with the dignity of human labor, and whether governments are really capable of spurring their creation.

The now ubiquitous pictures of the president’s visit to Solyndra last year perfectly illustrate our now-empty conception of work: it is the U.S. Government that now creates jobs, not the entrepreneur.

The risks taken within the free market by an entrepreneur are calculated to yield a profit. That profit is, as Pope John Paul II put it, “the result of the overall expansion of work and the wealth of society.” The entrepreneur must create meaningful jobs, or else face the consequences imposed by the market.

Governments, because of their coercive power, do not feel the consequences of failure. The Department of Energy is the entrepreneur’s antagonist: it has just taken $535 million and flushed it, over the course of two years, down the drain. The loss was unintentional, but predictable, and we should expect that it will happen again, because the department’s work as a regulatory body is to consume, not to produce—as long as it is pretended that a job is nothing more than a desk and a salary, “jobs” will be created at a loss.

No arm of the government can purchase jobs as commodities and promote the common good, because such a purchase commodifies the worker and strips him of the dignity of real work.

Full piece here.

Blog author: kspence
Thursday, September 8, 2011
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Union leaders have been jockeying for position ahead of President Obama’s “jobs speech,” since the proposals he makes will be big opportunities for organized labor. AFL-CIO head Dick Trumka has asked the president to spend with abandon, and has reminded him rather ominously, “This is going to be a moment in history when our members are going to judge him.” Teamsters boss James Hoffa has called for the President to force companies with cash in the bank to spend that money on new hires.

It’s a good time to ask what exactly is the purpose of a labor union (or what is it supposed to be), and whether Trumka and Hoffa haven’t ventured beyond a union’s proper domain. Pope Leo XIII’s encyclical Rerum Novarum is most often invoked by defenders of big labor, because it provided an early explication the relationship between “labor” and “management,” and an endorsement of the right of the working class to form labor unions.

The encyclical gives as the aim of a labor union, “helping each individual member to better his condition to the utmost in body, soul, and property.” (¶57) Before that definition, which comes at the end of the encyclical, there is the explanation of what brings a men to join such associations—“because the hours of labor are too long, or the work too hard, or because they consider their wages insufficient.” (¶39) That is to say, men join labor unions because their employers have got the better of them individually, and they hope by common action to tilt the scales of power.

While that is still a main concern of unions—witness the Verizon strike last month—their leaders are more often found hammering politicians than upper management. Big Labor’s forceful methods were more palatable to Americans when workers were fighting forceful opposition from their employers. What the public found so distasteful about Hoffa’s pep talk earlier this week was that he brought that same swaggering Teamsters demeanor to politics, which despite the colloquial, has generally been a cleaner business.

What Hoffa and Trumka want, and what union-backed politicians are willing to give them, is a State that creates jobs for them, by taxing companies and the rich and redistributing money to companies that will hire union workers. The feasibility of such a scheme notwithstanding, lobbying for it does not fall within the purview of a “Catholic” labor union.

“Quintessential labor priests” may have existed in the 1920s and ’30s, but even Msgr. John A. Ryan, known as “The Right Reverend New Dealer,” noted that “no increase in beneficial legislation can adequately supply for the lack of organization among the workers themselves.” Arguments that today’s unions are somehow divinely favored—like this recent nonsense from Sojourners—are at best anachronistic.

Thanks to The Pulpit for the link!

The New York Times ran an op-ed yesterday by Canadian legal scholar Joel Bakan, the author of a new book titled Childhood Under Siege: How Big Business Targets Children. Bakan argues that the 20th century has seen an increase in legal protections for two classes of persons, children and corporations, and that one of these is good and one is terribly, terribly bad—mean, even. That furthermore, there has been a kind of inexorable, Hegelian clash between the Corporation and the Child, but that the Corporation is steamrolling the Child, and we’ve got to step in with governmental protections.

The first problem with Bakan’s analysis is his history of personhood. In his words, children were not legal persons until the U.N. Declaration of the Rights of the Child in 1959. And as he understands it, corporations are granted certain rights of personhood simply because they have lots of money to pay lobbyists with—not because they are risk allocating mechanisms that must function semi-autonomously from the men and women who run them.

It is ridiculous to assert that “the 20th century also witnessed another momentous shift, one that would ultimately threaten the welfare of children: the rise of the for-profit corporation.” A Canadian lawyer should have some history of the common law and should know of the numerous 18th and 19th century for-profit corporations. And you can’t talk of fin de siècle child welfare reforms without corporate dark satanic mills already abusing the children.

Worse than these blunders, though, is Bakan’s view of the condition of children vis-à-vis corporations today.

Childhood obesity mounts as junk food purveyors bombard children with advertising.

We medicate increasing numbers of children with potentially harmful psychotropic drugs, a trend fueled in part by questionable and under-regulated pharmaceutical industry practices.

We also know that corporations often use [toxic] chemicals as key ingredients in children’s products, saturating their environments.

It is not even considered that children’s parents might be responsible for the food they eat, the medicines they take, or the toys they play with. Indeed, the piece begins with a reflection on Bakan’s own children’s absorption in the digital world and a sense that something is wrong with their lives, but nowhere does it occur to him to do anything about it, except to raise awareness in the pages of the New York Times. If the progressive state is to solve his own problems of parenting just as it is to solve his children’s problems, how is our brave muser any different than a child?

Bakan ends with a quotation of Nelson Mandela: “There can be no keener revelation of a society’s soul than the way in which it treats its children.” Mandela was right, and Bakan is a ward of the nanny state—it treats him as it treats his offspring, and makes children of them both. It is frightening to remember what Chesterton said—that “education is simply the soul of a society as it passes from one generation to another”—if there is no difference between generations.

Earlier this week on the Acton Institute Facebook page, Rev. Sirico’s archived article “What is Capitalism?” was posted and sparked a lively discussion between two people (click here to see our Facebook page and the discussion). This blog post is to serve as my response.

Your idea of communionism, at least from what I understand from your comments, bears some resemblances to communism which has the end goal of society or the community possessing property in common. This, however, doesn’t preserve human dignity properly; nor does not foster interdependence among people. Instead it creates a society dependent on a centralized government.

In his Summa Theologica, Thomas Aquinas explains some of the core the problems with common property. Like Aristotle, he notes, that individuals are better managers of property because it allows for a more orderly fashion of management, and as he states “human beings content with their own property live in a condition of peace. And so we observe that quarrels arise rather frequently among those who possess goods in common not individually.” The quarrels can arise because no individual is specifically responsible for the care of the common property. There is no person who feels like he or she has stake in the property. A direct result, and historical example, of common property is the tragedy of the commons.

In Capital Marx argues that there is no value in human labor per se. He states “human labour, creates value, but is not itself value. It becomes value only in its congealed state, when embodied in the form of some object.” This is contrary to Christian beliefs. There is intrinsic value in human labor itself. To work is a calling and a form of stewardship. In the encyclical Laborem Exercens, (“On Human Work”), Pope John Paul II explains how working is a direct expression of our human dignity. Such preservation of human dignity cannot be found in a system that devalues work.

The idea of property that you advocate is also found in Marx’s Capital and the Manifesto of the Communist Party. This idea is flawed on many levels. It doesn’t take into account that the entrepreneur purchases the raw goods that the workers use to make the end product. As a result, based on any definition of property, the entrepreneur is the sole owner of the raw goods and it is his or her private property, not the worker. The worker engages in a contract with the entrepreneur in an exchange of services. Just because the worker uses his or her services, which he or she is paid for by the entrepreneur, does not translate into the worker becoming the owner of the raw good which becomes the final product.

The idea of private property that you advocate, rescinding property rights for all corporations, is dangerous on many levels. It puts political rights, religious rights, and all private property rights in danger. Marx notes that the abolition of private property for the bourgeois leads to the abolition of family because, according to his argument, the family is rooted in property and private gain. Furthermore, Marx articulates that his beliefs, which bring forth a communist centralized system, also abolish religion.

In Federalist Paper No. 10 James Madison argues how the first object of any government is the protection of property. Furthermore, in Democracy in America Alexis de Tocqueville explains that what makes America successful is its protection of private property for all. No landed property class exists. He articulates how the protection of private property translates into the protection of political rights even to the least of all citizens. Furthermore the right to property fosters “…obedience to established law, of the influence of good mores in republics, and of the assistance that religious ideas lend to order and freedom…” What makes America special and successful, according to Tocqueville, is the protection of rights for all people. As Tocqueville demonstrates, the right of property needs to be protected because other rights stem from it. This right extends to even corporations. Rights should be guaranteed for all, not winners and losers picked by the government.

Again, private property should be protected at all levels, for both individuals and corporations. Hernando de Soto explains this in his book and in an essay both titled, The Mystery of Capital. Through examples found in his essay, book, and case studies (which can be found by clicking here), de Soto effectively argues using proven facts, statistics, and real world examples that the protection of capital and private property rights has led to economic prosperity in the west, whereas the lack of protection is a leading reason to the economic disparity in poor countries. If we fail to protect private property rights on all levels, then we begin down a path of economic decline. Without the protection of private property rights, and an effective legal structure to guarantee such protection, the wrong message is being sent to businesses. No business will want to invest in an economic climate that is hostile towards them.

A market system, which is what Rev. Sirico argues for in his article “What is Capitalism?” actually fosters virtues that all Christians value. This is articulated by Stephen Grabil in his essay “The Market, School of Virtue.” Here Grabil shows that greed is not what makes a free market churning, but instead it is virtue. Some of the virtues fostered in a free market are trustworthiness, self-control, sympathy, and fairness. Jay Richards, author of Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem, demonstrates that greed is a vice which even Adam Smith condemned. Richards also shows why greed does not lead to a successful market economy, but actually destroys it.

In regards to the referenced Fulton Sheen article titled “New Slavery” it is important to note that the article was written in 1943 when many monopolies were present in the market. Acton has never believed in or supported crony capitalism. Monopolies do not allow competition which is bad for the consumer and the worker. Also, Sheen does not advocate for the end of private property in his article. Instead he says we have a right to private property and our use of it should be righteous “Possession [of property] has two faces, two aspects: we all have a right to private property, but this is accompanied by our responsibility for its righteous use.” As Sirico articulates in the posted article, when the market is structured successfully it is the consumer who has primary control and then next is the worker. This is because of competition. Monopoly capitalism comes when the government gets into bed with businesses, and essentially block new entrepreneurs and potential new competitors from entering into the market.

Free markets are not just about an economic system. It is something greater than economics, it is about freedom. The freedom to choose what to purchase, the freedom for the worker to find an employer and not be forced into employment with the state or a monopoly, and the freedom to hold property and have it protected, this freedom is what capitalism is about. Tocqueville saw this in his visit to America and correctly articulated how the protection of private property, in all levels, has led to the great freedom Americans enjoy. However, Tocqueville also recognized the need for virtuous men and women because he knew America cannot succeed, nor its structure of government without them. As he states, “There are no great men without virtue; without respect for rights, there is no great people: one can almost say that there is no society; for what is a union of rational and intelligent being among whom force is the sole bond?”

Elise Amyx recently published an interesting post about the Dodd-Frank Wall Street Reform and Consumer Protection Act, focusing on financial regulation.  Another interesting look at regulation concerns the “Ponzi scheme” that Bernard Madoff was apprehended for three years ago.

The tale begins in 2000 when Harry Markopolos, a chartered financial analyst and certified fraud examiner, submitted information to the Security and Exchange Commission’s Director of Enforcement, Grant Ward, that there were signs that Madoff was operating a fraudulent fund.  However, no action was taken by the SEC until 2008, when the damage from Madoff’s fraud was already done.

For eight years, the SEC, among other government financial regulators and private news sources, refused to audit Madoff’s fund for fraud, even though, to many financial experts, it appeared obvious something illicit was occurring.

Markopolos stated, “The biggest, most glaring tip-off that this had to a fraud was that Madoff only reported 3 down months out of 87 months, whereas the S&P 500 was down 28 months during that time period. No money manager is only down 3.4% of the time. That would be equivalent to a Major League Baseball player batting .966 and no one suspecting this player was cheating” (page 9).

In addition to the SEC, Markopolos tried to alert the Wall Street Journal to Madoff’s scheme: “ … there were several points in time when he [Wall Street Journal senior investigative reporter John Wilke] was getting ready to book air travel to start the story and then would get called off at the last minute. I never determined if the senior editors at the WSJ failed to authorize this investigation” (16).

The Wall Street Journal recently published a piece considering Markopolos and had this to say about his character: “Critics say he’s self-righteous and a little bit crazy. In his book, No One Would Listen, Mr. Markopolos describes how he armed himself should he ever meet Mr. Madoff face-to-face. He fortified his home for what he thought was the very real possibility the SEC would send a team to suppress evidence that it knew about Mr. Madoff through Mr. Markopolos’ efforts to expose him.”  So, perhaps the WSJ simply thought Markopolos was exaggerating and creating a scandal where there wasn’t one.

However, Markopolos stated in his testimony that he was disgusted that “neither the WSJ nor the SEC were inclined to even pick up a phone and dial any of the leads I had provided to them” (17).

Markopolos rightly stated, in his testimony, that this “was an abject failure by the regulatory agencies we entrust as our watchdog” to take action and investigate Madoff (1).

Even more disturbing to Markopolos was that “dozens of highly knowledgeable men and women also knew that Madoff was a fraud and walked away silently, saying and doing nothing,” (24) demonstrating that, like Amyx stated, a government cannot legislate into existence morality or values (like honesty!) for citizens.

In his testimony, Markopolos added, “We can ask ourselves would the result have been different if those others had raised their voices, and what does that say about self-regulated markets?” (25)

If personal morality and self-regulation fail, which underpin the free market, and government regulation fails, what can be done?

One obvious flaw is the United States has too many regulators and too many laws, yet not much effective regulation.  It seems a strange statement, but Markopolos said as much in his testimony to Congress: “Our nation has too many financial regulators. The separation and lack of connection and communication between them leaves too many gaping holes for financial predators to engage in ‘regulator arbitrage’ and exploit these regulatory gaps where no one regulator is the monitor” (29).

Criminals, like Madoff, can easily shift between regulators and regulatory jurisdictions, and avoid punishment for years, eroding faith that markets are self-correcting and self-regulatory and that individuals or the government are capable of, if called upon, preventing financial crime.

As much as over-regulation seems to be the problem, Markopolos never made the case that all regulation or oversight was unnecessary.  Indeed, he recognizes that a clear, but limited amount is beneficial to keep white-collar criminals, like Madoff, at bay.

In Markopolos’ opinion, “The goal needs to be to combine regulatory functions into as few a number as possible to prevent regulatory arbitrage, centralize command and control, ensure unity of effort, eliminate expensive duplication of effort, and minimize the number of regulators to which American businesses have to answer” (30).

This reduction in size and condensing of regulation would not only eliminate wasteful, duplicative government spending, it would make current financial law easier to understand and enforce.  Hopefully, this streamlining would also reduce egregious legislative overreach, like the 2,253 page Dodd-Frank bill Amyx detailed.

In the case of Bernard Madoff, self-regulation in the financial industry did not work, but neither did centralized, federal regulation.  What is needed is a responsible synthesis of personal morality and government oversight.

Christians should remember, in the words of Paul in 2 Corinthians 5:10, that, “We must all appear before the judgment seat of Christ; that every one may receive the things done in his body, according to that he has done, whether it be good or bad.”

Those who ignored/aided Madoff should remember this and be reminded that, in order for society and markets to function, individuals are responsible to a higher power for protecting one another and the helpless, such as all those who lost their life savings due to Madoff’s crime, from harm.

On the regulatory side, instead of an “alphabet soup” of regulators and excessive, market-infringing regulation, a single (or perhaps a few) regulators(s) could enforce a limited amount of financial regulation to prevent fraud.

Hopefully, this would satisfy the market as there would be less regulators and regulation involved, allowing for maximum creativity and innovation in the market, while, at the same time, satisfying the socially concerned that enough is being done to prevent large-scale exploiters like Madoff from harming millions of people. Personal morality and responsibility, coupled with consistent, limited, fair oversight, would, as Proverbs 2:9 states, allow markets and businesspeople to “… understand what is right, just, and fair, and…find the right way to go.”

Judy Hill with her son James

A few weeks ago I made a phone call to Judy Hill at High Cotton Ties simply because I had a strong feeling she had a compelling witness to offer about entrepreneurship, vocation, and creativity. Picking up the phone was a wise decision. She agreed to an interview for readers of the PowerBlog. I had ordered a few bow ties from High Cotton Ties and was extremely impressed with the unique design and high quality. I had no idea of any of Judy’s values, or her beliefs about vocation and entrepreneurship. I didn’t know her at all. At the same time, I was not surprised to find that so much of her thinking aligned with Acton’s ideas and principles. Simply put, Judy is easily among the most gracious, kindest, and spirit-filled ladies I have ever conversed with. She has a radiant personality and a great story to tell about turning a passion into a business success. Below is the interview:

How did the idea for High Cotton develop and what are a few things that make this product so unique?

High Cotton Ties was born out of prayer and the financial needs of our family. Our family had just moved to Charlotte in 2007 after 22 years in the D.C. area. Upon moving, the recession hit our family hard and we found ourselves searching creatively for ways to provide for our family of five, two sons in college and one son in high school. I took a year off from teaching a young women’s Bible Study to devote myself to thinking creatively of ideas for work. Eight months later, it was Christmas time and, having sewn most of my life, I decided to make a pattern and sew a few colorful bow ties for my son Cameron, who is a medical student at the University of Virginia.

Not able to find any silk to my liking, I chose four colorful cottons with which to make the ties. Cameron thought this was a great idea because he would be able to wash the ties so they would be clean to wear when seeing patients in the hospital. I had no idea until then that a study had been done which showed the presence of germs such as H1N1 on the silk neck ties of doctors nor did I know that wearing silk ties was already being discouraged in the hospital.

My middle son, James, took the same bow tie to his fraternity at Carolina (UNC Chapel Hill) and it received an even more enthusiastic response. The college students immediately took to the idea of a comfortable, cotton bow tie. It was preppy, smart, and had its roots in the South. It began to take off on the college campus and that is where the High Cotton Ties culture eventually developed.

Our product is unique in that it is made of high quality, washable cotton and is the first line of bow ties and cummerbunds made exclusively of cotton. Our line is made in the South by Southerners to precise standards and specifications. Our designs are “Southern Mainstays”: traditional patterns and fabrics such as tattersalls, ginghams, madras and seersucker as opposed to novelties and tiny prints. Our bow ties and cummerbunds are hand cut and hand sewn here in North Carolina.

How does your faith or your own concept of a “calling” play a role in your business?

I believe that God has given me a gift in High Cotton Ties, to be able to create the bow ties, to work hand in hand with my sons and to put my mind and abilities toward the work He has given me. Because I see my vocation as a gift and calling from God, it definitely brings more satisfaction to my work. It helps me to see that I am not doing this alone, or even just with my boys, but I am in the process of creating something with the help of the very God of creation and that brings joy, excitement and pleasure in my work.

What do you think are valuable character traits and virtues needed for entrepreneurship?

Creativity, vision, perseverance, integrity, honesty, and willingness to take risks. Focusing on the needs of others is an essential trait of entrepreneurship and that is a crucial aspect for building relationships.

Do you feel like any of these qualities have helped to make High Cotton Ties a success?

High Cotton Ties is still a young company and so if we are considered a success, it would be because we had a vision from the start that was unwavering and clear. We decided early on that we wanted to be the best cotton bow tie on the market, to make a genuine product through a genuine process and we have done everything we can to stay true to that mission with integrity and honesty.

How has it influenced the actual product?

We have worked hard to perfect and improve our bow ties and cummerbunds. In fact, just last week, after a very successful first year and significant praise for our product line, we decided to redesign our bow tie pattern to make it truer to size at the urging of two friends, one a trusted mentor in the apparel industry, and the other, a store owner whom we greatly respect. The product was slightly off in actual neck size and so we made the necessary changes to the pattern, losing valuable time, money and inventory, but the end result was to have as fine a product as is on the market today. We always say we want to be able to sleep at night knowing that we have made a good product and the recent changes to our ties have helped us get that good night’s sleep.

You have said you want to help bring a revival to the North Carolina textile industry and your business is very organic. What does that mean?

Growing up in North Carolina around textiles, I have seen and felt the devastation that industry experienced in recent years. When we outgrew the individual seamstresses we were using, we began to look in North Carolina for a manufacturer, determined to keep true to our mission.

After a state-wide search, we found a textile manufacturing company in a small North Carolina town (population 1200). The owner had returned to North Carolina to open the factory after working with larger international textile firms and experiencing first hand the difficult conditions in the factories overseas. It was a perfect match for our mission. So, now our ties are produced on the still vibrant main street of a “three stoplight” North Carolina town using North Carolina seamstresses.

Our distribution/fulfillment center is also located in another small North Carolina town, Cherryville.

In June, we are releasing our first t-shirt that, again, has the common theme of High Cotton Ties: Made in North Carolina. The cotton for our t-shirts is grown on local farms and picked, ginned, spun, woven, dyed and sewn, all within the borders of North Carolina. In committing ourselves to a local product, we are encouraging jobs in the industry, hopefully for years to come.

Our business is organic in that we have used our own resources to build the company because of a long term commitment to growing High Cotton Ties.

What are you excited about for what the future holds for High Cotton Ties? What would you ultimately like to see develop out of this idea?

The future of High Cotton Ties is all about growing our product line, creatively using 100 percent cotton fabrics to make high quality products for our customers. We are looking at a variety of apparel and accessories to add to our line in the near future and, most importantly, of finding ways to manufacture cotton fabric once again in North Carolina.

We would ultimately like to see our product line continue to grow and be produced in North Carolina, bringing jobs to the textile industry of our great state. And, we would like to earn the respect of our customers, for unparalleled customer service and quality products.

Acton University has been full of thought provoking lectures and stimulating discussion. It is easy to see why the attendees wish the conference was much longer. There are many interesting lectures, one just wishes he or she could attend all of them.

Yesterday Dr. John Bolt, of Calvin Theological Seminary, taught a course titled “Centralization and Civil Society.” Bolt’s course paid special attention to Alexis de Tocqueville and his contributions to defining a civil society. As one can imagine, by bringing Tocqueville into his lecture, Bolt discussed the role of religion and the sense of community in the United States.

Bolt explained that America is self-reliant; however, this self-reliance didn’t come through reflection. The American people didn’t wake up one day and decide they wanted to be more self-reliant. Instead, Bolt explains that America’s self-reliance is habitual. Furthermore, Bolt discussed how Tocqueville demonstrated that America can afford to be self-reliant and individualistic because it was founded on Christian principles and that liberty exists in the United States because of religion and Christian principles.

The dinner lecture was a real treat last night. The Acton Institute has always promoted entrepreneurship and what it means to intertwine faith with entrepreneurship. A panel of successful entrepreneurs shared their insight on how business can promote the common good. Betsy DeVos, chairman of the American Federation for Children and Alliance for School Choice and chairman of the Windquest group, articulated how she finds joy in enterprises that make a difference in other people’s lives. She believes that enterprise is a vehicle we use and invest our God given talents in.

According to Mark Murray, president of Meijer, Inc., entrepreneurs need to be servant leaders. In order to succeed they must remain rooted in integrity. Murray explained how the values found in Christianity, such as humility, are not only applicable but needed in business. Furthermore, we are all created in the mage and likeness of God. We are called to use our God given gifts and express our creativity. Murray believes we put our talents and creativity to use through work, and the development of the human capacity is promoted through business.

Stewardship was highlighted by John Kennedy, president and CEO of Autocam. We are all temporary custodians of everything and have to do the best with the assets we are given. Furthermore, Kennedy said that we must remember people and employees are all assets and leaders must discover the gifts of their employees and how those gifts can most help the enterprise. Not only are employees assets, but so is capital. Entrepreneurs are called to be stewards of both their employees and capital and use all they are given to the fullest extent, and by doing this entrepreneurs demonstrate their appreciation for all God has given and blessed them with.

While there are flawed business leaders who are not examples of how businesses contribute to the common good, Acton University attendees witnessed what it really means to be called to entrepreneurship. When the calling of entrepreneurship is accepted and founded in Christian principles, the entrepreneur is a tool to create and promote the common good.

Blog author: lglinzak
Thursday, April 21, 2011
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Easter is fast approaching, and in light of this revered day, we take a look at Easter messages the Acton Institute has published in the past.

A day celebrated by all Christians, Easter can mean many different things for people. The article, “An Easter Message for Business” explores what it means for entrepreneurs and business men and women. In the article we find that business is a calling and business men and women are called to utilize their Christian principles by applying them to in their every day lives on the job:

As the ability to work and function in the market system is a gift from God, it must be carried out according to moral precepts. Thus, a moral code must be present and alive in everyday business life. Every transaction, trade, or exchange must have at its core values based on natural law. In the Pontifical Council for Justice and Peace’s Compendium of the Social Doctrine of the Church, the description of Pope Pius XII’s teaching on social doctrine emphasize this point: “He insisted on the notion of natural law as the soul of the system to be established on both the national and the international levels”(53–54). How can the businessman know whether his actions are based on natural law? “Society, its structures and development must be oriented towards the progress of the human person” (56).

[…]

One might object that business cannot always take into consideration every person. How can a business function and make a profit while trying to maintain the dignity of all? In Centesimus Annus, John Paul II provided a response: “A business’s objective must be met in economic terms and according to economic criteria, but the authentic values that bring about the concrete development of the person and society must not be neglected.”

The business cannot be responsible for every person; rather its responsibility is towards its employees and contacts. Again, John Paul II admits, “The social doctrine of the Church recognizes the proper role of profit as the first indicator that a business is functioning well: when a firm makes a profit, this means that productive factors have been properly employed.” Prosperity and human flourishing need not be opposed, so long as corporate productivity and human dignity are brought into concord. The Church reminds business, “The legitimate pursuit of profit should be in harmony with the irrenounceable protection of the dignity of the people who work at different levels in the same company” (Compendium, n. 340).

On Easter we are reminded the powerful meaning of Christ conquering death. Ray Nothstine explains this influential message in “Easter: The Resurrection & the Life” which can resonate with all Christians:

Easter Sunday celebrates the power of Christ over death, and how that power is the joy and the fulfillment of the life of the believer. Our suffering, imperfections, tears, and grief are wiped away by the promises and power of Christ. It brings meaning and assurances to everything we know about the Christian faith. “The Gospels do not explain the resurrection. The resurrection alone is what can explain the Gospels,” says Thomas C. Oden.

The witness of faith for those who gather to celebrate Easter will testify mightily against a world and lifestyle that suffers to find meaning, redemption, joy, immortality, and love outside of God. All too often we see the consequences of the kind of lifestyles that are absent from faith, and the haunting despair that follows. But the Christian lives with the assurance and promise of eternal life because of the intercession and power of Christ over sin and death.

Another important message found in Easter is the message of hope. Hope is found in the resurrection of Jesus, and as Ray Nothstine articulates in, “What the Resurrection Means to Me” just when we find ourselves full of despair, we are reminded to look to the resurrection of Christ and are reminded that God is always with us:

Often in the burdens that afflict our inner most being we can only find meaning in the resurrection. The trials, despair, and pain of this life crushes us too much. But when we spend our time dwelling on the risen Lord, our despair turns to hope. We know that he will not abandon us or forsake those who love and worship him, especially beyond the grave. The resurrection is a cause for endless celebration. It is the seal that we will fully dwell in the everlasting with the Triune God who created us for relationship with him for his glory.

It has been over a year since the passing of the Affordable Care Act, and we are still discovering problems with it. Supporters claimed passing the bill will help everyone, especially the vulnerable. However, the Affordable Care Act ironically does just the opposite by placing the elderly in a very dangerous position. Dr. Don Condit, author of the Acton monograph a Prescription for Health Care Reform, explains how the Affordable Care Act negatively impacts the elderly and its violation of subsidiarity in this week’s Acton Commentary. Get Acton News & Commentary in you email inbox every Wednesday. Sign up here.

A Sugar Coating for the Bitter Pill of ObamaCare

By Dr. Don Condit

Remember Mary Poppins singing, “A spoonful of sugar helps the medicine go down in the most delightful way”?

If so, be concerned, because you or your parents are probably on Medicare – or will be soon — and last week the Department of Health and Human Services (HHS) proposed regulations for Accountable Care Organizations (ACOs).

The sugar-coated rhetoric in this announcement from HHS cannot disguise the bad medicine in this part of this part of the Affordable Care Act, which intends to bureaucratically cut as much as $960 million in Medicare spending over three years. This ObamaCare prescription  threatens patients, the physicians who care for them, and the common good. The only clear winners are the consultants and lawyers busy trying to decipher this 429-page tome of acronyms and encrypted methodology that will compromise the doctor-patient relationship and is contrary to the principle of subsidiarity.

Medicare beneficiaries will be “assigned” to 5,000 patient-minimum organizations to coordinate their care. While HHS Secretary Kathleen Sebelius talks about improvement in care, the politically poisonous truth is that Medicare is going broke and ACOs are designed to save money. The words “rationing” or “treatment denial” or “withholding care” are not part of her press release, but reading the regulations reveals intentions to “share savings” with those who fulfill, or “penalize” others who fall short of, the administration’s objectives. The administration’s talking points include politically palatable words which emphasize quality improvement and care enhancement when the real objective is cost control by a utilitarian calculus.

Physicians and other health care providers will find themselves in conflict with the traditional ethos of duty to patient within ACOs. Ever increasing numbers of doctors are leaving private practice and becoming employed by hospitals, due to a variety of challenges inherent in these uncertain times. The hospitals are the most likely recipient of bundled payments for caring for Medicare patients. Doctors will face agency conflicts between the time honored primary duty to patient, which may conflict with hospital administration, and ACO goals of fiscal savings. Medical care providers will receive incentives for controlling spending, and penalties if they do not. “No one can serve two masters” (Matthew 6:24). Not even physicians.

The physician’s ACO conundrum is illustrated in the language where these regulations proclaim that, “Providers should be accountable for the cost of care, and be rewarded for reducing unnecessary expenditures and be responsible for excess expenditures.” Yet the very next sentence stipulates that, “In reducing excess expenditures, providers should continually improve the quality of care they deliver and must honor their commitment to do no harm to beneficiaries.” (page 14)

The principle of subsidiarity guides policy makers to empower decision making and scarce health care resource allocation at the doctor-patient level. However, the Affordable Care Act moves in the opposite direction. It increases bureaucratic power and responsibility. This is not the antidote needed to reform health care in the United States. The complexity, cost, and confusion of implementing these ACO regulations defy comprehension. We can only hope ACOs will follow “just say no” HMOs into the historical ash heap of misguided health policy.

There is no question that significant – and scarce — health care resources are consumed in the Medicare population toward the end of life. ACOs intend to limit this spending — the government way. The Ethical and Religious Directives by the United States Conference of Catholic Bishops suggest a better path forward:

While every person is obliged to use ordinary means to preserve his or her health, no person should be obliged to submit to a health care procedure that the person has judged, with a free and informed conscience, not to provide a reasonable hope of benefit without imposing excessive risks and burdens on the patient or excessive expense to family or community. (32)”

The patient must be the focal point of concern. They, or their surrogate, with the help of their physician, need to become informed. They must also participate in the expense of their care, which will better allocate resources for the community than would more distant bureaucratic panels or regulation.

Furthermore:

A person may forgo extraordinary or disproportionate means of preserving life. Disproportionate means are those that in the patient’s judgment do not offer a reasonable hope of benefit or entail an excessive burden, or impose excessive expense on the family or the community (57).

Enabling all patients, with and without means, to “proportionally” participate in the cost of their care will better allocate scarce health care resources than further sugar-coated, and non-delightful, misguided administrative policies.

By the way, if you didn’t recognize the Mary Poppins song, that’s OK. Worry instead about your grandparents for now, and consider how your generation will counter-reform ObamaCare in the future.

Dr. Donald P. Condit, MD, MBA is an orthopaedic surgeon specializing in hand surgery in Grand Rapids, Michigan. After graduating with a BS in Preprofessional studies at the University of Notre Dame he attended the University of Michigan Medical School. At the Seidman School of Business of Grand Valley State University his emphasis of study was economics and the ethical allocation of scarce health care resources. With his family, he serves annually with Helping Hands Medical Missions in El Salvador. He also volunteers at Clinica Santa Maria and for Project Access, for the uninsured, in Kent County. He is the author of A Prescription for Health Care Reform and is a Clinical Professor of Surgery at Michigan State University.

 

For PowerBlog readers around New York City, Rev. Robert A. Sirico will be speaking tonight, Wednesday March 2nd.  The event, Business and Compassion: Rehumanizing Our Economy, is hosted by Heart’s Home, International Center for a Culture of Compassion, and the American Bible Society.  Rev. Sirico is one of four members speaking on a panel.  The event will be from 7:00pm-9:00pm (EST) at the American Bible Society National Headquarters (1865 Broadway, New York, NY 10023).  The cost of admission is $15 for students and $30 for general admission.  Any questions regarding tickets and admission can be directed to Heart’s Home.