Posts tagged with: economics

market4In his new book, The Half Has Never Been Told: Slavery and the Making of American Capitalism, Edward E. Baptist “offers a radical new interpretation of American history,” through which slavery laid the foundation for and “drove the evolution and modernization of the United States.”

In a review of the book for the Wall Street Journal, Fergus M. Bordewich concurs with this central point, noting that “Mississippi…does not have to look like Manchester, England, or Lowell, Mass., to make it an engine of capitalism.”

Responding to Bordewich in a letter to the Journal, John Addison Teevan, author of the newly released Integrated Justice and Equality and past Acton University lecturer, offers some compelling counterpoint, asking, “Was Roman slavery capitalist as well?” (more…)

Cecilia, now 16, lives in Miami

Cecilia, now 16, lives in Miami

The New York Times has a poignant piece about Cecilia, a young Guatemalan girl who sought a better life in the U.S. and was unfortunately caught up in the machinations of human smuggling. The smugglers were bold, advertising on the radio with promises of a better life. They required a $7,000 loan, with her family’s home as collateral. Her trip ended in a gas station parking lot in Florida, with Cecilia being robbed of another $1,000. Then there is this:

Behind the surge of young migrants showing up for a shot at the American dream is a system of cruel and unregulated capitalism with a proven ability to adapt. The human export industry in the region is now worth billions of dollars, experts say, and it has become more ruthless and sophisticated than ever, employing a growing array of opportunists who trap, rape and rob from the point of departure to the end of the road. [emphasis added]

(more…)

job seekerAccording to the U.S. Department of Labor, unemployment across the country is at about 6.1 percent (here in Michigan, it’s at 7.4 percent, which puts us in the bottom 10 states.) That means a lot of folks are still struggling to find a job, or a job where they are not underemployed.

Peter Morici, an economist at the University of Maryland give 5 reasons for this. Have all the “good” jobs moved overseas? Do we need to raise the minimum wage? Are we Americans lagging behind in math and science? Here are Morici’s thoughts: (more…)

Blog author: ehilton
Thursday, October 2, 2014
By

Hamlet_skullSam Gregg, Acton’s Director of Research, bemoans the state of Europe in The American Spectator today. In a piece entitled, “Something is Rotten in the State of Europe,” Gregg begins by noting that Germany seems to have lost all common sense.

William Shakespeare knew a thing or two about human psychology. But he also understood a great deal about the body-politic and how small signs can be indicative of deeper traumas. So when Marcellus tells Horatio at the beginning of Hamlet that you can almost smell the weakness permeating Denmark, it’s Shakespeare’s way of telling us to pay attention to what sticks out as abnormal and to ask what else it may portend.

It was difficult not to be reminded of this advice when reading that a majority of Germany’s Ethics Council recently called for the abolition of legal constraints upon incest. Referring to a case in which a man had entered into a relationship with his biological sister, the Council declared: “The fundamental right of adult siblings to sexual self-determination has more weight in such cases than the abstract protection of the family.”

(more…)

Kid_superhero_muscle12The modern age has introduced many blessings when it comes to child-rearing and child development, offering kids ever more opportunities for education, play, personal development, and social interaction.

Yet as time, leisure, and wealth continue to increase, and as we move farther away from years of excessive and intensive child labor, we ought to be wary of falling into a different sort of lopsided lifestyle — one that over-elevates other goods (e.g. study, practice, play) to the detriment of good old-fashioned labor.

As I’ve written previously, the mundane and sometimes painful duties of day-to-day life have largely vanished from modern childhood, with parents continuing to insulate their children from any activity that might involve risk, pain, or (gasp!) boredom. Given our own newfound conveniences and pleasures, we adults suffer from this same insulation and pleasure-seeking, but especially when it comes to our kids, who are entering this peculiar world in a unique stage of development, we ought to be especially attentive of the formative fruits of productive labor.

When it comes to the cultivation of character and the human imagination, what do we lose in a world wherein work, service, and sacrifice have been largely replaced by superficial pleasures and one-dimensional modes of formation? What do we lose if our children learn only to play hard or study well, without also encountering a long day’s toil on a routine basis? (more…)

I loved being a stay at home mom. Sure, it was tedious some days and there were times when I was a bit weary of mac and cheese, but overall, I loved it. I enjoyed watching my kids grow, learning with them, enjoying leisurely days of bug watching, sidewalk chalk and cartoons.

Imagine my surprise when I found out that being a stay at home mom doesn’t count as work. Not real work: you know, the kind of work where you get dressed up, talk to grown-ups all day, have meetings and enjoy the view from the cubicle. The Washington Post wanted to investigate which states treated women best when it comes to pay equality and they gave us this handy map:

pink  map (more…)

Sic semper tyrannis, eh?

Sic semper tyrannis, eh?

The Burger King acquisition of Tim Hortons and the resulting plans to move the corporate headquarters under the taxing authority of the Canadian government is being derided by some as unpatriotic.

This is the latest in a long string of similar phenomena over the last decade or so, as we see patriotic loyalty (or the lack thereof) becoming a political issue in the context of offshoring, globalization, outsourcing, and so on.

A response to the charge of being unpatriotic would seem to me to require at least two points.

First, the responsibilities of a business owner, CEO, or corporate board are different than those of a government politician. They have different loyalties, so to speak. So to judge the one by the standards of the other is an exercise in missing the point.

Second, I would respond with a query along these lines: Which is more unpatriotic, a greater disservice to a nation, for someone to be involved in: moving a business from one country to another or making the tax environment in a country inhospitable to businesses?

Earlier this month, I wrote a two part article for the Library of Law & Liberty, critiquing the uncritical condemnation of income inequality by world religious leaders.

In part 1, I pointed out that “while the Pope, the Patriarch, the Dalai Lama, and others are right about the increase in [global income] inequality, they are wrong to conclude that this causes global poverty—the latter is demonstrably on the decline. And that, I would add, is a good thing.”

F. A. Hayek

In part 2, drawing on the work of F. A. Hayek, I noted, “As societies learn to use their resources ‘more effectively and for new purposes,’ the cost of manufacturing luxury goods decreases, making them affordable to new markets of the middle class and, eventually, even for the poor.” I continue, “Such inequality not only accompanies the very economic progress that lifts the poor out of poverty, it is one essential factor that makes that progress possible.”

We may add to this two more ways in which focusing solely on income inequality can be misleading from article in the Wall Street Journal yesterday by Nicholas Eberstadt: increased equality in lifespan and education. He writes,

Given the close correspondence between life expectancy and the Gini index for age at death, we can be confident that the world-wide explosion in life expectancy over the past century has been accompanied by a monumental narrowing of world-wide differences in length of life. When a population’s life expectancy rises from 30 to 70, the Gini index drops by almost two-thirds—from well over 0.5 to well under 0.2.

This survival revolution—and the narrowing of inequalities in humanity’s life chances—is an epochal advance in the human condition. Since healthy life expectancy seems to track closely with overall life expectancy, a revolutionary reduction in health inequality may also have occurred over the past century. Improvements in global mortality for the poor have contributed to the very “economic inequality” so many now decry. This is another reason such measures can be deceiving.

The spread and distribution of education has had a similar impact. In 1950 roughly half of the world’s adults—and the overwhelming majority of the men and women from low-income regions—had never been exposed to schooling. By 2010 unschooled men and women 15 and older account for a mere one-seventh of the world’s adults, and about one-in-six from developing areas. (more…)

union-jack-flag-great-britain-x-nature-with-uk-for-2685143At the height of power, circa 1922, the British Empire was the largest empire in history, covering one-fifth of the world’s population and almost a quarter of the earth’s total land area. Yet almost one hundred years later, Great Britain is not so great, having lost much of its previous economic and political dominance. In fact, if Great Britain were to join the United States, it’d be poorer than any of the other 50 states — including our poorest state, Mississippi.

Fraser Nelson discovered that fact by using a “fairly straightforward calculation” (see the end of this article for an explanation, and what Nelson missed). The result, as Nelson explains, is that all but one income group in America is better off than the same group in Britain:
(more…)

Reading through the German economist Walter Eucken’s work The Foundation of Economics (1951), I came across one of the most helpful charts for economic analysis I have yet to find. In it, Eucken gives every possible form of market in a single table:

Eucken Chart

The Foundation of Economics, p. 158

Eucken adds four qualifications that are important to keep in mind:

  1. “These forms of market are actual forms which have been or are to be found in actual economic life (often blended with one another, and existing alongside the forms of a centrally directed economy). They are not given a priori. They are discovered with their distinguishing characteristics by studying the planning data of those taking part in the market….”
  2. “Under each particular form of market a man can act according to different principles, for example, that of maximum net receipts or that of optimum output….”
  3. “Each of these forms of market can appear in four types: both open, both closed, or closed on either side only.”
  4. “Fixing of prices by the state occupies a special position, since it can follow any form of market and has different effects accordingly…. For example, the significance of coal prices being fixed by the state varies according to whether perfectly competitive, oligopolistic, or monopolistic supply, or some other form of market, exists, or whether both sides of the market are open, or whether the supply side is closed by an investment veto. Governmental price-fixing is to be treated as a variant of the different market forms and not as a special market form of its own.”

So, what does this amount to? (more…)