Posts tagged with: economics

For God and Profit“Gregg lays out a careful and detailed argument for the proposition that, done well, financial endeavors can serve the common good,” says Adam J. MacLeod in a review of Acton Research Director Samuel Gregg’s most recent book For God and Profit: How Banking and Finance Can Serve the Common Good. MacLeod’s review at The Public Discourse, gives praise to Gregg’s book saying that anyone who feels called to the finance industry “can get quite a lot straight by reading this fine book.”

The review starts out by noting how well Gregg is able to explain the ins and outs of the finance industry so anyone can understand it. MacLeod says:

A major barrier to seeing this possibility is widespread ignorance of how finance works. Clearing away misconceptions is a delicate task, especially in a book for a general audience. One wants not to assume too much knowledge but also not to insult readers’ intelligence or good will. Gregg strikes the right balance as he walks through the fundamentals of economics and finance.

He examines the historical foundations of zero-sum economic thinking (which was founded in ancient experiences with zero-sum and exploitative economies), and how the rise of capital during the commercial revolution of the Middle Ages enabled widespread participation in economic growth. He explains financial practices such as short trading, the role that a government’s monetary policy has on inflation and unemployment, and much else. Throughout, he probes financial practices for their underlying logic and purposes. Readers will benefit from his insights, no matter how much economic knowledge they possess at the outset.

(more…)

Note: This is post #12 in a weekly video series on basic microeconomics.

Why do taxes exist? What are their effects? In this video by Marginal Revolution University, economist Alex Tabarrok explains how taxes affect consumer surplus and producer surplus. He also discusses the concept of deadweight by considering a real-world example from the 1990s: taxing luxury yachts.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Who pays the tax?

o-UNEMPLOYMENT-HEALTH-facebookSeries Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and for communities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need to know (see also: What Christians Should Know About Unemployment).

Positive news is marked with the plus sign (+) while negative employment data is marked with a minus sign (-). No significant change is marked by (NC).

Overview: While most of the metrics were positive, few jobs were added and a large number of Americans dropped out of the labor for, making this one of the worst jobs report in years.
(more…)

Paul Bonicelli, Director of Programs at the Acton Institute, appeared on CNBC’s Closing Bell on Thursday afternoon to discuss President-elect Donald Trump’s deal with Carrier to keep 1,000 jobs in Indiana, and to offer analysis of the potential economic priorities of the incoming Trump Administration. You can view the interview below.

kuyper-2-pro-rege“A human kingship imperceptibly came to power, leaving no place for the kingship of Christ.” –Abraham Kuyper

The West prides itself on valuing freedom – political, economic, religious, and otherwise. For some, this leads to the promotion of a certain brand of libertinism: the freedom to do what we want. For others, such as Lord Acton, “Liberty is not the power of doing what we like, but the right of being able to do what we ought.”

For the Christian in particular, true freedom is more than a little paradoxical, involving plenty of constraints and restraints. We know that “it is for freedom that Christ has set us free,” and yet, in keeping with the upside-down economics of the Gospel – “the first shall be last,” “those who lose their life will find it” – it comes with prepackaged with calls to servanthood and obedience. These are good hints that true freedom may have less to do with nitpicking over “choice” and “constraint” and more to do with accurately recognizing the image of God we bear and the responsibility it entails.

In seasons of pain and frustration, the notion tends to feel more clear and less paradoxical, of course. “The Lord is my rock, my fortress and my deliverer,” the Psalmist sings. “My God is my rock, in whom I take refuge, my shield and the horn of my salvation, my stronghold.

This is the sound of freedom through dependence, and it’s one that Christians are well familiar with. But it’s a song we also tend to forget and neglect. (more…)

816bkjgz2xLThe church has recently awakened with renewed interest in the intersection of faith and work, leading to a widespread movement in congregations and seminaries and a constant flow of books, sermons, and other resources (including a hearty bunch from the Acton Institute).

In a new NIV Faith and Work Bible from Zondervan, we gain another valuable tool for expanding our economic imaginations, weaving a rich theology of work more closely with the Biblical text.

Edited by David H. Kim, Executive Director for the Center for Faith and Work, and including a foreword by Tim Keller, the Bible offers a range of pathways and commentaries to assist Christians in connecting the dots between their daily work and the Biblical story.

Kim describes the Bible as a “unique and exciting combination of doctrine, application, and community experience,” with the goal of developing a theology of work that “will hopefully rewire the way you understand the gospel and how it has everything to do with your work.”

To accomplish this, the Bible includes, among other things, (1) specific introductions to each book that highlight key lessons and applications to work and economics; (2) a “storylines” feature that serves as an introductory study for those new to the Bible); (3) essays on doctrine as it relates to stewardship (e.g. dominion in Genesis); (4) historical writings written after the Bible; and (5) real stories of application in daily/modern life. (more…)

“Supporting markets as the economic arrangements most likely to help promote human flourishing doesn’t necessarily mean you accept libertarian philosophical premises” says Acton Institute Director of Research Samuel Gregg in an essay published today at Public Discourse.  This comes in response to “Koch Brothers Latest Target: Pope Francis,” an Oct. 14  article written by John Gehring at the American Prospect that claims the Acton Institute is part of a larger network of organizations behind “a decidedly different message than Pope Francis does when it comes to the economy and climate change.”  Gehring, Catholic program director at Faith in Public Life, labels various free-market organizations as “libertarian” and asserts that “libertarian thought … is the exact opposite of Catholic teaching.”

Gregg begins his response by noting some of the contributions that great libertarian thinkers such as Hayek and Mises have made to economics:

Libertarianism’s great strength lies in economics. Prominent twentieth-century libertarian economists, such as Ludwig von Mises and Friedrich von Hayek, made major contributions to the critique of socialist economics. While ridiculed by some at the time, their criticisms turned out to be spot-on.

In Socialism (1922), for example, Mises illustrated that socialist economies can’t replicate the market price system’s ability to signal the supply and demand status for countless goods and services to consumers and producers at any one point in time. However intelligent and statistically equipped the top-down planners might be (whether they take the form of a Communist politburo, a Fascist dictator, or a 1970s British government), they simply cannot know the optimal price for any good or service at any point in time. Any attempt to dictate prices from the top-down will lead, paradoxically, to economic disorder and dysfunction.

(more…)