Posts tagged with: corruption

[Part 1 is here.]

In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)

[Part 1 is here.]

Even a cursory look at the annual list of the freest and least free economies in the world suggests a strong correlation between economic freedom and the prosperity of its citizens, including its poorest citizens. But there’s another correlation that tends to capture the attention of those making a cultural critique of the free economy. They note that America is economically free, and that it’s experiencing cultural decay, so they conclude the first causes the second. The conclusion isn’t absurd, but it also doesn’t follow necessarily. Sometimes correlation is due to causation, and sometimes it isn’t. To avoid confusion and false conclusions, we need to distinguish the idea of economic freedom from some things it isn’t.

A lot of people view economic freedom as synonymous with big corporations cutting sweetheart deals with politicians to suppress competitors and consumer choice. This stuff goes on all the time, of course, but it isn’t economic freedom. It’s the leviathan state and big business colluding to manipulate the market, to stack the deck in favor of political insiders. Every market economy on the planet has some of this sort of thing, since economies are operated by fallen human beings. The question is, where does cronyism tend to be the worst? (more…)

Blog author: jcarter
posted by on Monday, June 16, 2014

briberyThere’s an old saying that corruption is authority plus monopoly minus transparency. That combination makes state-level governments especially prone to the temptations of corruption.

A new study in Public Administration Review, “The Impact of Public Officials’ Corruption on the Size and Allocation of U.S. State Spending,” looks at the impact of government corruption on states’ expenditures. Defining corruption as the “misuse of public office for private gain,” the authors of the paper note that public and private corruption can have a range of negative effects, including lower-quality work, reduced economic productivity, and increased poverty.

According to Leighton Walter Kille, the researchers explored two possible theories: First, higher levels of corruption should cause states’ spending levels to be higher than they would be otherwise. Second, corruption would distort states’ spending priorities in ways that favor bribes from private firms and others. Some of the findings include:
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Blog author: jcarter
posted by on Wednesday, March 26, 2014

Many who reject capitalism in favor of some “third way” do so because they often mistake it for government-corporate cronyism, says Jonathan Witt in this week’s Acton Commentary. But in countries that have begun extending true economic freedom to the masses, capitalist activity has already lifted hundreds of millions of people out of extreme poverty.

Happily, a new piece in The Economist magazine offers some helpful medicine for the confusion, insisting on the distinction between cronyism and capitalism while also pointing to some hopeful signs that a rising middle class around the globe is gaining the clout to fight the power structures that still wall millions out of the wealth creation game. My reservation about the article is that it misreads America’s Progressive era, and in the process, leaves cronyism’s favorite trick unexposed.

According to the piece, crony capitalism in America “reached its apogee in the late 19th century, and a long and partially successful struggle against robber barons ensued. Antitrust rules broke monopolies such as John D. Rockefeller’s Standard Oil. The flow of bribes to senators shrank.” Later, it tells readers that while developing countries are making progress against cronyism, “governments need to be more assiduous in regulating monopolies.”

The full text of his essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

Edwin Edwards once declared that the only thing that could keep him from Louisiana’s governor’s mansion was getting caught in bed with a “dead girl or a live boy.” He’s been called “The Luca Brasi of the Bayou,” “The Silver Zipper,” and “The Pirate Kingfish.” When Edwards ran against and trounced former Ku Klux Klan leader David Duke in the 1988 governor’s race, he had bumper stickers printed up that read, “Vote for the Crook. It’s Important.” He then declared that the only thing he had in common with Duke was “that we are both wizards under the sheets.”

Edwards

Edwards, a convicted felon, who just three years ago was released from federal prison for conviction on seventeen charges that included extortion, racketeering, conspiracy, money laundering, wire fraud, and mail fraud. Edwards, who was notoriously corrupt, was under investigation for decades. After his conviction, Edwards quipped, “I will be a model prisoner as I was a model citizen.”

He’s tried without success to secure a pardon from President Barack Obama to run for governor of Louisiana, a position the 86 year old is not eligible to hold for 15 years because of his criminal record. However, he’s eligible to run for U.S. Congress, and declared his candidacy yesterday.

Edwards, a life long Democrat, has lived a fascinating if not surreal life in Louisiana politics. There may be no politician that is a better model for Lord Acton’s famous dictum, “power corrupts.” Edwards however, is still loved by large segments of Louisiana’s population. Agnes Brouilette, his mother, was pure Cajun French. As some have said of Edwards in Louisiana, “Un de nous autres.” He’s one of us. His charm and mastery of retail politics is renowned.
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Blog author: jsunde
posted by on Tuesday, February 25, 2014

facebook_ad_large_1On-demand ride-sharing services such as Uber and Lyft are on the rise, allowing smartphone users to request cab drivers with the touch of a button. But though the services are popular with consumers and drivers alike, they’re finding less favor among their taxi-company competitors and the unions and government bureaucrats who protect them.

Calling for increased regulation, entrance fees, and insurance requirements, competitors are grappling to retain their privileged, insulated status. In Miami-Dade County, an area with particularly onerous restrictions and regulations, Diego Feliciano, president of the South Florida Taxicab Association, argues that the change is bound to “ruin the very thing it’s trying to improve,” all because it threatens the fat cats who pay his salary, and who can afford to jump through the regulatory hoops. “When looking at new technologies,” he writes, “we must also be sure people’s basic civil rights and the safety of the riding public are protected.”

Bringing these petty municipal battles into the limelight, actor Ashton Kutcher, an early investor in Uber, recently appeared on Jimmy Kimmel Live, decrying “antiquated legislation,” “old-school monopolies,” and “old-school governments” who continue to stand in the way of innovation and consumer demand. In areas like Miami, Kutcher says, there is a “Mafioso mentality” against letting the “new guys” in.

Indeed, as Miami’s Feliciano aptly demonstrates, the protectionist mindset only sees what is, viewing economic activity in static and self-centered terms, and failing to recognize or value the type of opportunity and possibility that comes with increased freedom and ownership. Feliciano claims that he’s interested in “safety” and “basic civil rights,” but the only folks being protected are those with power and pocketbooks. (more…)

Blog author: dpahman
posted by on Monday, December 23, 2013

John Howard Yoder
Photo Credit: New York Times

Today at Ethika Politika, in my essay “Prefacing Yoder: On Preaching and Practice,” I look at the recent decision of MennoMedia to preface all of Mennonite theologian John Howard Yoder’s works with a disclaimer about his legacy of sexually abusive behavior:

Whatever one thinks of MennoMedia’s new policy or Yoder’s theology in particular (being Orthodox and not a pacifist I am relatively uninterested myself), this nevertheless raises an interesting concern: To what extent ought the character of a theologian matter to their readers and students?

While I am unsure whether MennoMedia has handled this rightly, I appreciate the effort on their part not to turn a blind eye to the complexity of this issue. When it comes to theologians and teachers of morality, personal character does matter, though certainly poor character does not justify dismissing off-hand all a theologian says.

Yet, as I note at Ethika Politika, “while one may be able to study all the mechanics of swimming, for example, and teach them to others from a purely technical point of view, people would naturally be skeptical about the value of this teaching if they discovered their teacher could not actually swim.” Thus, I do not find it surprising or unfounded to be skeptical of Yoder. But what caused this situation? As Lord Acton wrote, “Power tends to corrupt.” (more…)

boss-tweed2Mike Coyner, who is the Bishop of the Indiana Conference of The United Methodist Church, penned a thoughtful essay reflecting on the dysfunction in our federal government. His main point: It’s our fault and our defective culture is the engineer of the political rot. Coyner declared:

All of the traits in Washington that we decry are actually an outgrowth of the messed-up values in our whole culture.

We complain about over-spending by Congress, but the average American household is spending 103% of their income.

We complain about the rising debt level, but the typical American is increasingly in debt (and that is even mirrored in our churches which are increasingly in debt).

We complain about the culture of entitlement, but the typical American has an “entitlement” attitude (just watch the way people drive over the speed limit, cut off others in lanes, and ignore simple traffic rules – all of that reflects an attitude which says “I am entitled to break the rules that I don’t like.”).

We complain about the rising cost of healthcare, but most Americans are over-weight, out of shape, and in poor health by virtue of lifestyle choices.

We complain that the politicians are not able to work together, but Americans seem to be more and more disagreeable and unruly (If you don’t believe that, just go to a Little League baseball game and watch the behavior of the parents. Or watch a local school board meeting and listen to the inability of people to listen politely to those with whom they disagree. Or you can even see that unruly behavior in some church meetings.)

In “Churches & Government Shut-Down” by Mark Tooley, he focuses on Jim Wallis’s insatiable appetite for more government and contrasts his views of the government shutdown with more measured responses by other church leaders. Joe Carter addressed Wallis yesterday too on the PowerBlog. Tooley points out a few errors in Coyner’s essay but praises his larger point as the kind of faithful and responsible witness needed in the Church.

“How is it possible that society should escape destruction if the moral tie is not strengthened in proportion as the political tie is relaxed?” asked Alexis de Tocqueville. Instead of parroting partisan talking points and shifting even more power away from personal responsibility and virtue, leaders in the Church need to be asking the deeper questions why the government is broken in the first place.

Today there is a severe lack of unity and leadership in America that can speak clearly to our culture and address the root problems. In truth, we are infested by sin and sin by its nature is divisive and separates us from our true purpose. And if you know anything about theology, you know that unredeemed sin, in the end, always gives us what we deserve.

In his bestseller, Throw Them All Out, Peter Schweizer declares, “The Permanent Political Class has no sense of urgency to change because, for them, business is good.”

Schweizer, who is interviewed in the latest issue of Religion & Liberty, appeared today on the Mike Huckabee radio show to talk congressional insider trading. Schweizer told Huckabee that “Big government creates big profits for people that are in power.”

Schweizer added that this is not a partisan problem but a human problem that reflects the fallen nature of man. Listen to the full audio of the segment below.

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The Rana Plaza garment factory collapse in Bangladesh on April 24th killed 1,127 people, including almost 300 whose bodies have not yet been identified. In the article, “Buy Yourself a Cup of Tea” — A Collapse in Culture”, PovertyCure’s Mark Weber highlights a complex and deeply-rooted problem within Bangladeshi culture that has contributed to numerous disasters like this: corruption. The reversal of this pattern requires a commitment much stronger than any government regulation can provide, he maintains.

He says,

Corruption disguises what is true and what is untrue, what is safe and what is unsafe, what is legitimate and what is illegitimate. It disallows the ideal of a free market because the economic actors are not truly free, for they are subjects to a thousand cronies. This is why, while the push for increased corporate standards is indeed of utmost importance, a deeper conversation about corruption needs to take hold. Government regulations in the many forms of building codes are already well established; they’re just not being honored. Western companies are increasingly careful, if not by their own volition then by the powerful push from consumers, but they’re inevitably limited in their powers of supervision. For an end to the factory fires and structural disasters that kill innocent Bangladeshi workers every year, the culture of petty corruption needs to be overthrown. Such a revolt will necessarily have to come from within…

View the entire article on the PovertyCure Blog.