Posts tagged with: Cronyism

[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…)

RussellDMoore-lowRussell Moore talks and writes about a lot of topics as president of the Southern Baptist Ethics & Religious Liberty Commission. He even writes about the legendary Johnny Cash. “Cash always seems to connect,” says Moore. When it comes to leading and speaking about religious liberty, the same can be said for Moore. There are few as engaging and persuasive as Moore in the public square today. He’s interviewed on this important topic in the issue of Religion & Liberty . In the editor’s notes, I speak a little bit on the impact of Moore’s character and integrity.

“Shades of Solzhenitsyn” is the feature essay and Kevin Duffy offers a critical analysis on some of the similarities between Pope Francis and Alexander Solzhenitsyn. A world starved by a lack of moral clarity is in desperate need of the best thoughts from both men.

Dylan Pahman reviews Reality, Grief, Hope: Three Urgent Prophetic Tasks by well-known Old Testament scholar Walter Bruggemann. I review Extortion: How Politicians Extract Your Money, Buy Votes, and Line Their Own Pockets by Peter Schweizer. We all are or should be aware that our leadership in Washington is a disaster and a cesspool of corruption. But it’s even worse than that according to Schweizer. The system is best understood by comparing it to organized crime. Schweizer was interviewed in the Winter 2013 issue of Religion & Liberty.

“Christian Environmentalism and the Temptation of Faux Asceticism”
by Fr. Michael Butler and Andrew P. Morriss is an excerpt from Creation and the Heart of Man: An Orthodox Christian Perspective on Environmentalism . That work is invaluable for a more responsible environmental framework with God at the center of creation.

It may be surprising, especially to many of our Reformed readers, that Richard Baxter has never been profiled for “In the Liberal Tradition.” Max Weber called Baxter the embodiment of the Protestant work ethic and Baxter’s thought and prolific writings are still widely utilized and studied. We’d all be better off if we took the time to read How to Do Good to Many.

If you’d like to read our executive director’s thoughts on Acton’s battle with the city over our property tax exemption, there is no better statement on this issue than Kris Mauren’s frequently asked questions segment.

topicAleteia’s Mirko Testa recently interviewed Samuel Gregg about the state’s role in defending religious liberty, the appropriate response of the Church to the growing welfare state, cronyism, and the upcoming conference hosted by the Istituto Acton: ‘Faith, State, and the Economy: Perspectives from East and West.’

What’s John Paul II’s legacy on the connection between limited government, religious liberty, and economic liberty?

[Gregg:] When you live much of your life under Communism, it is bound to accentuate your appreciation of freedom. And religious freedom and economic freedom are essential to limiting the scope and size of the state. Because if the state can take away your religious liberty, it can do anything. Moreover, a government that over-regulates the economy – or even seeks to impose a command economy – effectively undermines people’s freedom in numerous ways. (more…)

Blog author: jcarter
Wednesday, March 26, 2014
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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.

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…)

A recent report from the CBO contains an appendix detailing updated estimates of the labor market effects of the Affordable Care Act (ACA). Pundits for and against the ACA have wasted no time in putting their own particular spin on the projections. Republicans and some other opponents have seemingly celebrated the idea that these estimates may show that the ACA is “a job-killing, economy-crushing villain,” while Democrats and some other supporters have claimed that in times of high unemployment, it’s “an economic benefit” that some will be voluntarily reducing hours or dropping out of the labor force because that means greater demand for labor — those currently unemployed would therefore have more options.

So who’s right? These are mutually contradictory claims, or so it appears. The report is ultimately limited and mixed, but nevertheless raises some serious concerns, caused, in part, by the polarization of Congress both when the law was passed and up to the present. (more…)

Coolidge In November of 1925, President Calvin Coolidge delivered an address on the topic of the proper relationship between government and business. His audience was the New York State Chamber Commerce. One of Coolidge’s main aims of the speech was to elevate the spiritual value of business.

As president, Coolidge oversaw unprecedented economic expansion and growth, but he also lived through the rise of America’s progressive era and Russia’s Bolshevik Revolution. New ideas about government and society had already long been popularized in large segments of America by 1925. Coolidge, who saw himself as a civic educator, articulated a much more traditional and conservative view of American ideals. A common recurrence of his public addresses was to praise the truths and virtues of America’s founding principles. At the very end of this address, Coolidge closed with the line, “The truth and faith and justice of the ancient days have not departed from us.” Below is a poignant excerpt from his 1925 address:

While there has been in the past and will be in the future a considerable effort in this country of different business interests to attempt to run the Government in such a way as to set up a system of privilege, and while there have been and will be those who are constantly seeking to commit the Government to a policy of infringing upon the domain of private business, both of these efforts have been very largely discredited, and with reasonable vigilance on the part of the people to preserve their freedom do not now appear to be dangerous.

When I have been referring to business, I have used the word in its all-inclusive sense to denote alike the employer and employee, the production of agriculture, and industry, the distribution of transportation and commerce, and the service of finance and banking. It is the work of the world. In modern life, with all its intricacies, business has come to hold a very dominant position in the thoughts of all enlightened peoples. Rightly understood, this is not a criticism, but a compliment. In its great economic organization it does not represent, as some have hastily concluded, a mere desire to minister to selfishness. The New York Chamber of Commerce is not made up of men merely animated with a purpose to get the better of each other. It is something far more important than a sordid desire for gain. It could not successively succeed on that basis. It is dominated by a more worthy impulse; it rests on a higher law. True business represents the mutual organized effort of society to minister to the economic requirements of civilization. It is an effort by which men provide for the material needs of each other. While it is not an end in itself, it is the important means for the attainment of a supreme end. It rests squarely on the law of service. It has for its main reliance truth and faith and justice. In its larger sense it is one of the greatest contributing forces to the moral and spiritual advancement of the race.

cronyismActon’s Director of Research, Sam Gregg, discusses crony capitalism in today’s issue of The American Spectator. Gregg says 2014 looks to be the year of “inequality” economically-speaking, and that we must not forget the threat of crony capitalism.

Crony capitalism is an expression that’s used a great deal these days, so let’s be clear what it means. Crony capitalism is not criminal activity or outright corruption — though it verges on, and often enters, these spheres. Crony capitalism is about hollowing-out market economies and replacing them with what may be described as political markets. (more…)

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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Today’s new rich is the “government rich” according to Peter Schweizer. Massive centralization of money, resources, and regulation has allowed our public servants and many big businesses to thrive. The poor, new business start ups, the taxpayer, and the free market are punished. Washington and corporate elites profit from the rules and regulations they create for their own benefit and their cronies. As daily news reports currently reminds us, Washington is a cesspool of corruption and abuse of power.

It’s a moral crisis, and it’s the title for our interview with author and Hoover Institute Fellow Peter Schweizer. “I would say some of the biggest enemies of the free market today in America are big corporations,” declares Schweizer.

Jordan Ballor looks at two different versions of religious liberty that expresses freedom from religion that was modeled in the French Revolution and freedom for religion within America’s revolution in his feature, “Principle and Prudence.” The article was also published in Renewing Minds, a publication of Union University.

Stephen Schmalhofer offers a review of Sam Gregg’s Becoming Europe. There is also an excerpt of Faithful in All God’s House titled “Work and Play” by Gerard Berghoef and Lester DeKoster. Faithful in All God’s House is newly edited and reissued by Christian’s Library Press. The book was originally published as God’s Yardstick in 1982.

The “In The Liberal Tradition” figure is Clare Boothe Luce. Kris Mauren, Acton’s executive director, offers an important explanation on why R&L publishes the “In the Liberal Tradition.”

You can read more about the issue in my editor’s notes and be sure to check out all of the content here.