Posts tagged with: Economic liberalism

In the Washington Times, Nile Gardiner praises Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, the new book by Acton Research Director Samuel Gregg. Gardiner, the director of the Margaret Thatcher Center for Freedom at The Heritage Foundation and a Washington-based foreign affairs analyst for The Telegraph, says Becoming Europe “should be on the desk of every member of the House and Senate who cares about the future of America as a prosperous and free nation.” Gardiner recommends the book for its “rich detail describing the economic and social ‘Europeanization’ of America, from the rise of vast welfare systems to growing skepticism of the merits of the free-enterprise system.” Excerpt from the review:

“Becoming Europe” is a meticulously researched and well-argued thesis that lays out what is at stake for the world’s superpower, as it faces a stark choice between European-style decline or a return to the original vision of America’s Founding Fathers, as well as the classical liberal teachings of Alexis de Tocqueville, Friedrich von Hayek and Adam Smith. Mr. Gregg, who is director of research at the Acton Institute, paints a grim picture of the direction America is taking but, nevertheless, conveys a positive message to his readers. Mr. Gregg argues that while America is indeed on the path to the European model, it can still turn back and avoid the fate that Europe looks doomed to suffer. In many respects, this is an optimistic book based upon faith in America’s ability to renew itself through rediscovering the principles of economic liberty.

I agree with Mr. Gregg’s assessment. As Gallup polling consistently shows, America is still at its core a conservative nation, one that cherishes the foundations of individual liberty. The fire of freedom still burns brighter on this side of the Atlantic than it does in the Old World, where the suffocating supranationalism of the European Union marches on, with the EU heading toward ever-greater political and economic centralization. The European nightmare can be avoided here, however, only if America’s leaders, at both a national and state level, are willing to stand up for economic freedom and reject the destructive ideology of big government. Washington is already on the path to Brussels, Paris and Athens, but it still has an opportunity to reverse course and avoid the road to economic ruin.

Read Nile Gardiner’s full review of Becoming Europe in the Washington Times.

Blog author: dpahman
posted by on Wednesday, December 12, 2012

G. K. Chesterton
(one of the founding fathers of distributism)

Today at Ethika Politika, in response to a few writers who have offered, in my estimate, less-than-charitable characterizations of capitalism, I ask the question, “Which Capitalism?” (also the title of my article). I ask this in seriousness, because often the free economy that people bemoan bears little resemblance to the one that many Christians support. In particular, I ask, “Which Capitalism?” in reference to the following from Pope John Paul II, who outlines in his encyclical Centesimus Annus (no. 42) two different forms of capitalism as follows:

The first is “an economic system which recognizes the fundamental and positive role of business, the market, private property and the resulting responsibility for the means of production, as well as free human creativity in the economic sector” that “is the victorious social system” since the fall of the Soviet Union and that “should be the goal of the countries now making efforts to rebuild their economy and society.” The second is “a system in which freedom in the economic sector is not circumscribed within a strong juridical framework which places it at the service of human freedom in its totality, and which sees it as a particular aspect of that freedom, the core of which is ethical and religious.”

All three of the authors I take issue with are Roman Catholic and two of them have voiced their support for distributism as an alternative to capitalism. However, I ask with all sincerity, “[S]hould not distributists be asking whether distributism is a form of capitalism, rather than setting it up as an alternative to capitalism?” Given the high praise given by Pope John Paul II to capitalism, rightly understood as the free economy, ought not distributists simply be arguing that they, perhaps, have some valuable insights for supporters of capitalism, rather than opposing distributism to capitalism, uncharitably understood? (more…)

Based on Nicholas Eberstadt’s book, A Nation of Takers, this Seussian video depicts the dangerous dependency of entitlements and the importance of liberty.

(Via: Values & Capitalism)

Blog author: jballor
posted by on Friday, September 28, 2012

Article: “Big Questions and Poor Economics”
James Tooley. “Big Questions and Poor Economics: Banerjee and Duflo on Schooling in Developing Countries.” Econ Journal Watch 9, no. 3 (September 2012): 170-185.

In Poor Economics, MIT professors Abhijit Banerjee and Esther Duflo set out their solutions for global poverty. Their key premise is that development experts have been sidetracked by the “big questions” of development, such as the role of government and the role of aid. This approach, they say, should be eschewed in favour of adopting carefully tested “small steps” to improvement. The book ranges widely, covering topics such as food, health, family planning and microfinance. Here I treat only their arguments on education in developing countries. Poor Economics points to evidence that shows that governments have not been successful in bringing quality education to the poor. Nevertheless, the authors bring their own big-think judgments to suggest why, despite the evidence, governmentally owned and operated schooling should remain central. Part of their own evidence concerns how private schooling, including for the poor, is burgeoning and outperforming government schooling. But private education cannot be the solution, they argue, because private schooling is not as efficient as it could be. The problems identified by Banerjee and Duflo are, however, clearly caused by bad public policy. I suggest that development economists are quite justified in forming and exercising judgment on the big questions, and that when they do exercise such judgment they should be aware that they are doing so.

(more…)

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 a report on the Republican roundtable debate at Dartmouth College in New Hampshire, National Review Online’s Kathryn Lopez writes about the ongoing breakdown of the family and its role in economic life. She talks to Acton’s Samuel Gregg about the clashing views that often exist in the conservative world on economic questions.

“There are obvious tensions between those free marketers who have problems with objective morality and those social conservatives who have a bad habit of blaming the market economy for many of society’s problems,” says Samuel Gregg, research director at the Acton Institute. “But it seems to me that free societies characterized by a robust market economy, strong civil associations, and a limited state need (a) market institutions underpinned by a commitment to liberty and property rights and (b) social institutions that are characterized by unapologetically nonliberal conceptions of family and associational life. . . . Large, expansionist states tend to undermine not just the market but also civil society and strong families.”

Read “Love on the Campaign Trail” on National Review Online.

Acton director of research Samuel Gregg offers his thoughts on last night’s GOP Roundtable in this NRO Symposium. Gregg thinks the debate offered an important alternative to the government-driven economy talk that fills the news every other night of the week.

In a week in which two American economists from the non-Keynesian side of the ledger received the Nobel Prize for Economics, last night’s GOP debate gave us some insight into the depth and character of the various candidates’ free-market commitments and the different policy priorities which flow from the various forms of those commitments.

But if the ideas were strong, they were a reminder of separation between our free market ideals and our considerably less free economy:

For the most part, the candidates focused upon the institutional background that either impedes or facilitates economic growth: the regulatory environment, tax levels, trade policy, monetary policy, etc. Listening to the responses was a salutary reminder of the gap betweenAmerica’s free-market aspirations and rhetoric, and the rather different Eurosclerotic economic reality that has slowly envelopedAmerica– and not just over the past three years, but over several decades.

The only way we’re really going to get our economy going, is by addressing entitlements.

The surprising omission was substantial discussion of the issue of welfare reform and the related question of America’s public debt. While Obamacare was continually criticized because of its costs, that’s only part of the picture. Substantive entitlement reform is indispensable if we want to significantly reduce the spending and deficits that threaten to suck the life out of America’s economy. Addressing this subject is of course very politically risky because far too many Americans are more attached to the welfare state than they care to admit. But if fiscal conservatives aren’t willing to tackle this issue, then who will?

Noted NYU law professor and free-market advocate Richard Epstein has written a provocative piece titled “How is Warren Buffett like the Pope? They are both dead wrong on economics.” Here’s the money quote:

The great advantage of competition in markets is that it exhausts all gains from trade, which thus allows individuals to attain higher levels of welfare. These win/win propositions may not reach the perfect endpoint, but they will avoid the woes that are now consuming once prosperous economies. Understanding the win/win concept would have taken the Pope away from his false condemnation of markets. It might have led him to examine more closely Spain’s profligate policies, where high guaranteed public benefits and extensive workplace regulation have led to an unholy mix of soaring public debt and an unemployment rate of 20 percent. It is a tragic irony that papal economics mimic those of the Church’s socialist opponents. The Pope’s powerful but misdirected words will only complicate the task of meaningful fiscal and regulatory reform in Spain and the rest of Europe. False claims for social justice come at a very high price.

I blogged about Pope Benedict’s comments last week, and while I don’t disagree with Epstein’s main point, I wonder if he actually means to deny the importance of ethics in economics. The Pope wasn’t saying that there should be no fiscal or regulatory reform, but that such reform must consider future, and not merely present, well-being, which is actually the impetus for policies such as liberalizing labor markets. And unlike Warren Buffett, the Pope wasn’t calling for higher taxes on the rich.

In short, the Pope was making a larger ethical argument that can certainly include the much-needed reforms Epstein cites. Since the Pope isn’t an economist and doesn’t pretend to be one, we should listen to his moral teachings and try to incorporate them with sound economics, rather than disparage them as economically damaging. It is true that while Catholic social teaching stresses the importance and necessity of profits, far too many Catholic and other religious leaders neglect how profits are actually made and distributed – which Epstein briefly and usefully describes – and in this sense, it is far too easy for moralists to pit profits versus people. It would make more sense to try to relate how profit maximization can and often does contribute to the common good, but it can’t do so without ethical men and women who won’t lie, cheat and steal.

I’d like to think that both the Pope and Richard Epstein are right.

Continuing our recap of last year’s Acton Lecture Series in anticipation of Thursday’s opening lecture of the 2011 ALS (which you can register for right here), we’re pleased to present the video from February and March of 2010.

On February 18, 2010, Acton’s Director of Media Michael Miller Delivered a lecture entitled “Does Capitalism Destroy Culture?” His lecture discussed the positive and negative impact of capitalism in society today. Miller pointed out that it’s not just Christians that are worried about culture and that it is just not a right or left issue. Many are also worried about rampant consumerism and the perceived danger of technology. Miller also addressed the Southern Agrarians and their conservative critique of industrialization. Video is below:

A month later on March 18, we welcomed Rudy Carrasco to our podium to deliver a lecture entitled “Do the Poor Need Capitalism?” A 2009 paper from the National Bureau of Economic Research says that the number of people in the world living on less than $1 per day fell from 403 million in 1970 to 152 million in 2006. An analysis from the American Enterprise Institute says the biggest factor was the rise of the middle class in China and India, at a time when the world’s population grew by 3 billion. Carrasco discussed whether capitalism is a greater asset than liability in the fight against poverty, and whether capitalism must be moderated by virtue and morality before a Christian can embrace it. Again, the video is below:

GRAND RAPIDS, Mich. (Feb. 1, 2011) — A new survey of 5,500 organizations by the Think Tanks and Civil Societies Program at the University of Pennsylvania ranked the Acton Institute among the best global social policy organizations and in the top 50 think tanks overall in the United States.

The 2010 Global Go-To Think Tank Rankings, directed by James G. McGann of the International Relations department at Penn, put Acton at No. 12 on the Top 25 Social Policy Think Tank list. Acton was ranked No. 47 among the top think tanks in the United States. Overall, there are more than 1,800 think tanks in the United States, according to the survey.

McGann noted in his report that think tanks are indispensable to the creation of a “robust” civil society which, in turn, creates a “virtuous cycle” of consolidation for the public good. The potential for think tanks to build a healthier, more closely knit society, he said, was “far from exhausted.”

The rankings show that the two decades of work by the Acton Institute and its supporters aimed at the creation of a “free and virtuous” society are widely recognized by journalists, scholars and public policy experts, Executive Director Kris Mauren said. “Increasingly, Acton’s research is being used where policy issues engage the faith community,” he said. “There’s a growing realization that good intentions must be connected to sound economics.”

Mauren said he was particularly heartened by the growth of global networks and the partnerships between think tanks that were highlighted in the report. Acton’s international reach has expanded greatly in recent years through the expansion of its affiliate program, the publication of web content in several languages, and its association with groups like the Atlas Economic Research Foundation. The translation of the Acton documentaries Call of the Entrepreneur, Birth of Freedom and the Effective Stewardship DVD curriculum into more than a dozen languages has also made them available to think tanks and broadcast networks outside the United States. The Call of the Entrepreneur has been translated into Spanish, Italian, Mandarin Chinese, German, Polish, French, Slovak, Romanian and (in 2011) Portuguese.

For more on the 2010 Global Go To Think Tanks Rankings, and to download the report, please visit www.gotothinktank.com

Link to news release here.