Posts tagged with: classical liberalism

Acton On The AirActon Research Fellow Jordan Ballor – who also serves as Executive Editor of the Journal of Markets and Morality – took to the airwaves in the Houston, Texas area last night to discuss the ecumenical movement, his book, Ecumenical Babel, and Christian social thought with the hosts of A Show of Faith on News Talk 1070 AM.

To listen to the interview, use the audio player below:

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In the latest issue of Religion & Liberty, Acton Institute executive direct Kris Mauren answers the question, “Why does the Acton Institute publish the Journal of Markets & Morality?”

For more, check out my interview with Micheal Hickerson of the Emerging Scholars Network.

You can support the work of the journal by getting a subscription for yourself or recommending a subscription to your library of choice.

We live in the information age, or more accurately referred to as the age of “information overload.” Anyone who has a Twitter account knows what I’m talking about. You may feel like you’re drowning in a flood of Facebook statuses, emails and YouTube videos. With information coming at us every which way, how can we process it all? How do we even know it’s true?

Neoclassical economics assumes people act on the basis of perfect information. With all the information that’s out there, this might seem like a good assumption. Dr. Robert Nelson, a professor of environmental policy at the School of Public Policy at the University of Maryland, does not agree with this theory. In his critique of neoclassical economics at Acton University, he said,

Perfect ignorance is a better starting assumption than perfect information.

Rather than perfect information, perhaps we only need “good enough” information. Economist Vernon Smith claims markets converge toward equilibrium by trial and error. Experiments outlined in his book Rationality in Economics show equilibrium can be reached with a limited amount of information. Similarly, Austrian economist Friedrich Hayek argues that prices are sufficient in signaling value and enabling efficient economic decision making.

An experiment conducted by Paul Andreassen in the late 1980s tested two groups of MIT business students to see how information affects stock investments. One group could only see changes in prices while the second group was allowed to read The Wall Street Journal, watch CNBC and consult experts on market trends. Unexpectedly, the group with less information earned twice as much as the well informed group. His analysis suggests the high-informed group was distracted by the rumors and insider gossip from the extra information. The excess information encouraged them to engage in much more buying and selling than the low-informed group because they were confident their knowledge allowed them to operate more efficiently in the market. In this case, price signals and the invisible hand of the market proved more efficient than an overload of information.

In a world that seems to have all the technology and science to answer life’s greatest questions, we realize it is still imperfect and demand more. For example, many believe that overwhelming forensic evidence was enough to convict Casey Anthony of the murder of her daughter Caylee, but the verdict proved otherwise. The jury demanded more than just DNA; they wanted the exact time of death and a stronger motive.  

Information is a necessary prerequisite for belief, but we must be careful not to fall into the trap of doubting Thomas (though we have all been there). Always demanding personal evidence and more proof in order to believe something will only lead to skepticism. A skeptic says he will only believe it if he sees it, but rarely do we ever experience information from a primary source. Should we believe the facts we read in our textbooks? Should we believe what the experts say on the news? Belief always takes a step of faith.

In his encyclical letter Fides et Ratio, Pope John Paul II asks,

Who, for instance, could assess critically the countless scientific findings upon which modern life is based? Who could personally examine the flow of information which comes day after day from all parts of the world and which is generally accepted as true? Who in the end could forge anew the paths of experience and thought which have yielded the treasures of human wisdom and religion? This means that the human being—the one who seeks the truth—is also the one who lives by belief.

In the age of technology and information overload, we should be humbled in our human limitations. Because information is imperfect, it takes a little faith in the invisible hand to reach equilibrium in the free market. But we should not center our faith in free markets because markets are imperfect and will fail as everything else in the world. Information, which is necessarily imperfect, and faith is required in the human pursuit of truth. Whoever knew markets could teach us so much about faith?

Long-time Acton Institute friend and Markets and Morality contributor Jean-Francois Orsini has a new book out. In Fight the Left (yes, it has a polemical edge!), Orsini argues that there are essentially two approaches to the world: liberalism and conservatism. His use of liberalism is decidedly contemporary (i.e., modern, not classical liberalism). His conservatism is sympathetic to the free market but, more importantly, it is “first principled,” meaning that he lays out the foundation on which conservatism must be based. In particular, it must recognize the truth about man: a being, created by God, endowed with the ability to choose good or evil. From this anthropology flows the rest of Orsini’s discussion, including a brief historical survey of conservative giants (Buckley, Goldwater, Reagan); an exposition of Catholic social teaching; and a few policy applications.

If you’re looking for a brief, easy, but nonetheless thought-provoking read, check out Fight the Left.

Acton On The AirLast week, the Acton Institute held a conference in Rome examining the rise of Asian Economies. One of the keynote speakers was Thomas Hong-Soon Han, the Ambassador of the Republic of Korea to the Holy See. Vatican Radio spoke with him about the topic of the conference; you can listen to the interview using the audio player below:

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Acton On The AirThis afternoon, Acton President Rev. Robert A. Sirico joined host Paul Edwards on The Paul Edwards Program (broadcasting live from the Acton Institute here in Grand Rapids today, by the way) to discuss some of the hot issues in the world of politics and economics, including the efforts of governors in Wisconsin and Michigan to address the fiscal issues faced by their states, and also giving a response to Jim Wallis’ question of what would Jesus cut? Listen via the audio player below:

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I’m pleased to report that Hunter Baker is the recipient of the 2011 Novak Award from the Acton Institute. Hunter is associate dean of arts and sciences and associate professor of political science at Union University in Jackson, Tenn., and author of The End of Secularism (Crossway Academic, 2009).

From the release:

With his writing and speaking in a variety of popular and academic contexts, Dr. Hunter Baker has made a compelling and comprehensive case for the integration of the Christian faith into all areas of life, including economics and business.

Baker said the award was made all the more meaningful to him in light of the “power and diligence” that Michael Novak has shown over a long career. “Novak’s work helps readers understand the importance of the Christian faith as both a supernatural relationship with God that stirs the soul and as a powerful impetus for and sustainer of liberty, compassion, creativity, and excellence in the broader culture,” he said.

About the award: “Named after distinguished American theologian and social philosopher Michael Novak, the Novak Award rewards new outstanding research by scholars early in their academic careers who demonstrate outstanding intellectual merit in advancing the understanding of theology’s connection to human dignity, the importance of limited government, religious liberty, and economic freedom.”

Hunter has been a good friend to the Acton Institute, and as the award recognizes, holds forth a promising future for a career (building off of his already significant achievements) articulating the foundations of a free and virtuous society.

He’s a contributor to the PowerBlog, and here’s a sampling of his work elsewhere: