Posts tagged with: economics

Blog author: jballor
posted by on Monday, March 24, 2014

Lorde LikenessAt Reason Thaddeus Russell argues that Macklemore and Lorde embody a kind of progressive cultural critique of capitalism, captured in the attack on “conspicuous consumption” made famous by Thorstein Veblen. Russell traces the “progressive lineage” of this critique: “Their songs continue a long tradition, rooted in progressivism, of protests against the pleasures of the poor.”

Having never listened to him, I have no opinion about Macklemore. Russell’s piece makes me want to take a moment to hear “Thrift Shop.” But over at Q Ideas today, I argue that in Lorde we find some cultural resources to inoculate us against the corrosive effects of envy.

The Christian tradition has long recognized that the poor can be just as materialistic and greedy as the rich. The poor just don’t usually have the same resources to bring those vices to such “conspicuous” manifestation. And it really is a stewardship problem to spend money on luxury goods when basic necessities are given short shrift.
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Amity Shlaes

Amity Shlaes – Graphic Novelized!

In November of last year, we had the privilege of welcoming bestselling author Amity Shlaes for a visit here at the Acton Building while she was in Grand Rapids to speak about Calvin Coolidge at Grand Valley State University’s Hauenstein Center for Presidential Studies. Aside from being a fine author of some very thought provoking books on history and economics, she’s a delightful lady, and it was a pleasure to have an opportunity to make her acquaintance personally. At the time, she was very excited about a project that she had been working on which was soon to be released to the public – a graphic novel adaptation of her best-selling book, The Forgotten Man. Her enthusiasm for the project was infectious, and I’ve been looking forward to its release ever since. (You can pre-order a copy of the book, which is set to be released on May 27.)

But how does one take a nearly 500 page hardcover book that revisits the economic history of the Great Depression and translate it into a visual presentation on the printed page? It wasn’t a simple process. Paul Rivoche is the artist who worked with Shlaes on the project; in this interview at Graphic Novel Reporter, he describes how the original book was reworked in order to create a compelling visual story:

The original book was nonfiction and of course not at all structured to be a graphic novel. It’s an economic history of the New Deal/Great Depression era, described from an alternative viewpoint. It has a huge cast of characters — all real people — and discusses many abstract ideas. To make it work as a graphic novel, we had to find a new structure for the same material; we couldn’t follow the exact arrangement in the print book. For example, there are many jumps in location in the real-life story we tell, and all these characters coming and going. In prose, it worked because you imagine it in your head, stitching it together, following the steady guidance of the author’s voice. In comics form, the same thing was disorienting. We learned that if the visuals change too fast, without enough explanation, the reader easily becomes confused when dealing with such complex events, all these different scenes and faces. To solve this, we decided to introduce a “framing story” using a narrator, Wendell Willkie. In telling the story, he guides us — at times directly, and in other scenes we hear his voiceover narration in captions. Also, we had to make the story as visual as possible, not all “talking heads,” which make for dull comics. Instead, we highlighted interesting locales: the Hoover Dam, the great flood of 1927, Willkie’s famous debate, and many others. In every scene we aimed to introduce as much movement, action, and characterization as possible.

The full interview has more detail on the project; After the jump, you can listen to an August 2012 Radio Free Acton interview with Amity Shlaes on her then-forthcoming biography on Calvin Coolidge.

Paul_Rivoche_The_Forgotten_Man

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Bill GatesIn a recent interview with Rolling Stone, Bill Gates — the richest man in the world — shares his thoughts on poverty and inequality:

Should the state be playing a greater role in helping people at the lowest end of the income scale? Poverty today looks very different than poverty in the past. The real thing you want to look at is consumption and use that as a metric and say, “Have you been worried about having enough to eat? Do you have enough warmth, shelter? Do you think of yourself as having a place to go?” The poor are better off than they were before, even though they’re still in the bottom group in terms of income.

The way we help the poor out today [is also a problem]. You have Section 8 housing, food stamps, fuel programs, very complex medical programs. It’s all high-overhead, capricious, not well-designed. Its ability to distinguish between somebody who has family that could take care of them versus someone who’s really out on their own is not very good, either. It’s a totally gameable system – not everybody games it, but lots of people do. Why aren’t the technocrats taking the poverty programs, looking at them as a whole, and then redesigning them? Well, they are afraid that if they do, their funding is going to be cut back, so they defend the thing that is absolutely horrific. Just look at low-cost housing and the various forms, the wait lists, things like that.

Read more . . .

I spent last week in London attending a couple of stimulating conferences at the Institute for Economic Affairs (IEA) and the Transformational Business Network (TBN), and catching up with some friends and acquaintances. All of the discussions were either officially off-the-record or of a personal nature, so I can’t be too specific about who said what but my general impression, obvious to anyone who’s visited, is that London remains an extremely vibrant, forward-looking, prosperous global capital in stark contrast to much of Europe and even other parts of Britain. But the reasons why are varied and may upset some seemingly-settled orthodoxies about religion and wealth.

London’s wealth is certainly tied to the City and international finance, even if giants such as the Royal Bank of Scotland are posting record losses (£9 billion in 2013). There’s much distress about such losses, especially subsequent to the massive bailouts RBS and other banks received in the wake of the 2008 financial crisis. We often forget that making bad investments and taking losses is part of the normal, necessary functioning of the market economy; Milton Friedman went so far to say that losses are even more important the profits. Wealth can’t be created if we don’t allow losses to get rid of badly-managed or mistaken enterprises.

No one wants to fail, of course, but without failure, we can’t have success, even at the individual level. I’m reminded of a Teddy Roosevelt image we used to have at the office of my college newspaper emblazoned with the words, “The only man who never makes mistakes is the one who never does anything.” Certainly true, even if the vice of sloth and complacency often tells us otherwise; what’s more important is to learn from one’s mistakes and try again.

Critics of capitalism have often cited the constant striving and relentless competition as negative aspects; what’s the point of hard work, after all, if we can never enjoy its fruits? The austerity and disciple required by the market are sometime called “Protestant” because they supposedly imply a pessimistic, individualistic view of human nature, as opposed to Catholicism’s more positive, “relaxed,” social view. Made famous by the German sociologist Max Weber, this thesis has always seemed to contain some elements of truth but never completely accurate to me, and my time in London confirmed my doubts. (more…)

Comedian Andrew Heaton uses the move “Dallas Buyer’s Club” to explain economic issues, brought to life on the silver screen. Enjoy!

A brothel corridor in Pascha, Cologne

A brothel corridor in Pascha, Cologne

It’s the oldest profession, right? It’s worldwide, and attempts to criminalize it don’t seem to work. Does legalizing prostitution solve any problems?

That’s the question Nisha Lilia Diu of The Telegraph set out to answer. In a lengthy piece that focuses on Germany, Diu visited brothels, talked to their owners, visited with prostitutes – all in order to see if the legalization of prostitution “works.”

Germany legalized prostitution in 2002. The law was meant to to do a number of things, but primarily it was meant to give prostitutes legal standing, making their job like any other. Was it effective?

The idea of the law, passed by Chancellor Gerhard Schröder’s Social Democrat-Green coalition, was to recognise prostitution as a job like any other. Sex workers could now enter into employment contracts, sue for payment and register for health insurance, pension plans and other benefits. Exploiting prostitutes was still criminal but everything else was now above board. Two female politicians and a Berlin madam were pictured clinking their champagne glasses in celebration.

It didn’t work. “Nobody employs prostitutes in Germany,” says Beretin. None of the authorities I spoke to had ever heard of a prostitute suing for payment, either. And only 44 prostitutes have registered for benefits.

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Philosopher and theologian, Michael Novak recently delivered a speech at the Catholic University of America on the vocation of business and Forbes published the transcript. Novak argues that “capitalism is lifting the world out of poverty.” As many Asian and African economies shift from socialist to capitalist, they are seeing enormous economic growth, and small businesses are the force behind these economic gains:

Even in developed nations, most jobs are found in small business. In Italy, over 80 percent of the working population works in small businesses. In the U.S., the proportion is just about 50 percent, but some 65 percent of new employment is in small businesses.

During the great economic expansion of 1981-1989, the U.S. added to its economy the equivalent of the whole economic activity of West Germany at that time. Sixteen million new jobs were created in the U.S., the vast number of them in small businesses. Startups peaked as new businesses came into being at a rate of 13 percent (as a portion of all businesses) – an all-time high. Much the same happened under Clinton in 1993-2001, but even better – 23 million new jobs were created.

In the creation of small businesses, four factors are necessary. First, ease and low cost of incorporation; second, access to inexpensive credit; third, institutions of instruction and technical help (such as the system of local credit unions in the U.S.), and the steady assistance of the extension services of the A&M universities; and, fourth, throughout the population habits of creativity, enterprise, and skills such as bookkeeping and the organization of work. Economic development is propelled, as John Paul II said, by know-how, technology, and skill (Centesimus Annus 32). Therein, perhaps, lie the greatest entry-points for Americans and others who wish to help poor nations by proffering assistance in economic development from the bottom up. (more…)

I have five kids. I thought I was sane, but apparently, I’m living a crazy alternative lifestyle.

Freestyle halfpipe skier David Wise won gold at Sochi. NBC, rather than being impressed with his world-class athleticism, focused on his “alternative lifestyle.” You see, Wise is married to Alexandra, and they have a young son. Wise is also considering becoming a pastor.

San Diego Chargers quarterback Phillip Rivers has had his critics in terms of his play, but there are also critics of his “alternative lifestyle”: he and his wife, Tiffany, have six kids (they recently had a seventh child.) ESPN noted with this comment:

Six kids? Regardless of your profession, it’s impossible to be a good parent to six kids. Not enough hours in the day.

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Blog author: dpahman
posted by on Monday, February 24, 2014

Today at Red River Orthodox, I offer a brief introduction to the liberal tradition for Orthodox Christians living in the West:

Liberalism, historically, is a broad intellectual tradition including a large and disparate group of thinkers. The epistemological differences between John Locke, David Hume, and Immanuel Kant do not stop them all from being liberals. In economics the range extends from Friedrich Hayek to John Maynard Keynes. In political philosophy, from John Rawls to Robert Nozick. For that matter, both the American and French Revolutions have liberal foundations, though often (and rightly) contrasted.

I conclude by encouraging a more nuanced engagement with the West than is sometimes the case in the East:

[F]or a responsible, “liberal engagement” with the West from an Orthodox Christian perspective, it will not do to dismiss anything we don’t like as Western and liberal and, therefore, wrong. As Solzhenitsyn put [it], “the line dividing good and evil cuts through the heart of every human being.” And if that is true, then both East and West, including Western liberalism, have plenty of good and evil to go around.

How might Orthodox Christians better evaluate one of the many liberalisms that make up the water in which we swim in the West today?

To give an example, I would positively recommend to my fellow Orthodox Christians the German ordoliberal school of economic thought for the following reasons: (more…)

thinkingWe read the same Bible and follow the same Jesus. We go to the same churches and even agree on the same social issues. So why then do liberal and conservative evangelicals tend to disagree so often about economic issues?

To explore that question I recently wrote a series of posts explaining “What Liberal Evangelicals Should Know About the Economic Views of Conservative Evangelicals.” The posts covered 12 principles that generally drive the thinking of conservative evangelicals when it comes to economics:

1. Good intentions are often trumped by unintended consequences.
2. Our current economic and historical context must be taken into account when applying Biblical principles
3. To exploit the poor, the rich need the help of the government.
4. We love economic growth because we love babies.
5. The economy is not a zero sum game.
6. Inequality and poverty in America is more often a matter of personal choice than structural injustice.
7. The best way to compensate for structural injustice is to increase individual freedom.
8. Saddling future generations with crippling debt is immoral.
9. Social mobility — specifically getting people out of poverty — is infinitely more important than income inequality.
10. Jobs that lead to human flourishing are the most important part of a moral economy.
11. Free markets are information systems designed for virtuous people
12. Free markets are the best way to serve free people.

To make it easier to read, I’ve compiled the entire series into a single essay, which can be downloaded in PDF or text format here.