The 2008 credit crisis is not only a crisis in economics, but also a crisis in the basic concepts and assumptions that underlie our thinking about economics, economics as a science. Critical analyses are called for of both economic practices and economic theory. New concepts and paradigms are needed. The first Kuyper Seminar Amsterdam aims at exploring what resources the Christian tradition has to offer for developing a sustainable and just economy of the future.
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.
As noted already at the PowerBlog today, Sam Gregg has a fine piece on the complex relationship between law and morality, or constitutions and culture, over at Public Discourse.
As a follow-up (read the piece first), I’d like to point to an interesting aspect of James Buchanan’s advocacy of a balanced-budget amendment. As Gregg notes, Buchanan is an example of someone who thought that “America’s constitution required amending to bestow genuine independence upon a monetary authority,” or advocated for the “constitutionalization” of money. A related effort would be Buchanan’s efforts in support of a balanced-budget amendment to the American Constitution, as explored by James Alvey in his piece, “James M. Buchanan on the Ethics of Public Debt and Default.”
Tyler Cowen fielded an interesting topic on his blog last week, focusing on economists who are (or were) clergy.
There’s an interesting list, including notables like the Salamancans, Paul Heyne, and Heinrich Pesch. I didn’t realize that Kirzner is a rabbi. Malthus is named first, but as the initial comment on Cowen’s post notes, anytime you mention Malthus you should mention Anders Chydenius in the following breath.
How about Edmund Opitz of the Foundation for Economic Education, or even Rodger Charles, S.J., or James Schall? It depends largely on how narrowly you define being an “economist,” of course, as the inclusion of the Salamancan theologians indicates. Being a moral theologian who focuses on ethics and economics might not be enough to qualify. Does being a political philosopher/political economist count? But certainly A. M. C. Waterman should be noted.
And of course it also depends on how narrowly you define “clergy.” As Asher Meir notes in the post, how about non-ordained academic theologians, or economists with theological training (or theologians with economic training)? Then the list would start to get very long, indeed.
Any other names come to mind?
On his personal blog, author and publishing industry executive Joel J. Miller asks, “What if we dumped Rand for Röpke?” Good question. Miller says that it’s simply unnecessary for Christians to invoke Rand in their defense of the free market. Why not base that defense on the work of a Christian economist instead?
“Unlike Rand,” he writes, “Röpke grounded his critique of socialism and his defense of free markets in a thoroughly Christian understanding of man and his world.” He goes on to say that not only is this critique “of an entirely differing quality than Rand’s, it’s far deeper as well. Röpke saw the materialist answers of socialism as papering over the spiritual crisis that beset Western civilization in the middle twentieth century, and still does to this day.”
Miller also includes a link (bottom of post) to a free, downloadable copy of Röpke’s The Humane Economy.
In the archives you’ll find links to the July 2 American Spectator piece titled “The Prophet of Europe’s Crisis” and have access to “The Profoundly anti-Keynesian Political Economy of Wilhelm Röpke,” a new podcast on the Library of Law and Liberty.
Stanford economists Russ Roberts and John Taylor offer a helpful discussion potential GDP, recessions, and recoveries. Their comparison of previous recession/recovery cycles to the most recent one helps to illuminate just how unusual (read: terrible) our current recovery has been.
(Via: Cafe Hayek)
Global History and Culture Centre – University of Warwick – 12-14 December 2012. This International conference held at the Global History and Culture Centre of the University of Warwick seeks to explore how our understanding of early modern global connections changes if we consider the role material culture played in shaping such connections. In what ways did material objects participate in the development of the multiple processes often referred to as ‘globalisation’? How did objects contribute to the construction of such notions as hybridism and cosmopolitanism? What was their role in trade and migration, gifts and diplomacy, encounters and conflict? What kind of geographies did they create in the early modern world? What was their cultural value vis-à-vis their economic value? In short, this conference seeks to explore the ways in which commodities and connections intersected in the early modern world.
Book Review: “Ferguson on Green, Pauper Capital”
David R. Green. Pauper Capital. Farnham, Surrey: Ashgate, 2010. Reviewed by Christopher Ferguson (Auburn University)
The Poor Law Amendment Act of 1834, more commonly known as the New Poor Law, is arguably the most notorious piece of legislation in British history. Deeply controversial in its day, it has unsurprisingly generated a dense and diverse scholarly literature ever since, yet one in which the national capital has played a remarkably minor role. Indeed, David R. Green’s study is the first to attempt to explore the history of the Poor Law in nineteenth-century London in its geographic and administrative entirety. One need not read far to understand why, for the history of the Poor Law in London prior to and post 1834 is enormously complex. Green is to be commended both for undertaking a difficult task and for producing a study that is remarkably easy to read, despite the intricacies of its subject matter. His study makes the arcane history of poor relief in nineteenth-century London accessible to the non-specialist, while simultaneously yielding significant insights about this history for specialist scholars of poverty, policy, and the nineteenth-century British state.
The Department of History at Brown University invites applications for a tenure-track assistant professorship in the history of capitalism defined broadly to encompass candidates working in labor history (free and unfree), business history, economic history, history of economic thought, history of consumer society, and the political economy of the nineteenth and/or twentieth-century US.
Article: “Economics Education and Greed”
Long Wang, Deepak Malhotra, and J. Keith Murnighan, Academy of Management Learning & Education
The recent financial crisis, and repeated corporate scandals, raise serious questions about whether a business school education contributes to what some have described as a culture of greed. The dominance of economic-related courses in MBA curricula led us to assess the effects of economics education on greed in three studies using multiple methods. Study 1 found that economics majors and students who had taken multiple economics courses kept more money in a money allocation task (the Dictator Game). Study 2 found that economics education was associated with more positive attitudes toward greed and toward one’s own greedy behavior. Study 3 found that a short statement on the societal benefits of self-interest led to more positive ratings of greed’s moral acceptability, even for noneconomics students. These effects suggest that economics education may have serious, albeit unintended consequences on our students’ attitudes toward greed.
Talking Points, October 15, 2012, Grand Rapids Theological Seminary, with Amy Black (Wheaton College), Timothy Gombis (GRTS), and George Marsden (Notre Dame). The thrust of Talking Points 2012 is to generate reflection on how we might restore civility in America as a model for restoring and fostering civil discourse around the world. The last half-century has seen the emergence of evangelical Christians as a significant force in national elections and debates over domestic and foreign policy. Unfortunately, Christian civic engagement has been hijacked by polarizing voices and unimaginative choices. It isn’t simply the case that in order to be “politically engaged” we must choose to vote for party A or B. Christian civic responsibility and political engagement can be more creative and redemptive, and more civil and gracious, than has been modeled by leading figures over the last several decades. Grand Rapids Theological Seminary has invited three leading scholars to help us reflect upon how “Christian Civic Engagement” has taken shape in America, and to imagine how we might take up these rights and responsibilities as new opportunities emerge.
Call for Editor: “Enterprise & Society Editor Search”
The Business History Conference announces its search for editor of Enterprise & Society: The International Journal of Business History. Published by Oxford University Press, Enterprise & Society is one of the world’s leading journals in business history. Interdisciplinary in approach and international in scope, it offers a forum for research on the historical relations between businesses and their larger political, cultural, institutional, social, and economic contexts.
Article: “Catholicism, Human Rights and the Public Sphere”
Christopher McCrudden, International Journal of Public Theology
This article suggests that the scope and meaning of human rights, and its relationship to religion, is anything but settled, and that this gives an opportunity to those who support a role for religion in public life to intervene. Such intervention should address four main issues. First, it should ensure that judges engage in attempting to understand religious issues from a cognitively internal viewpoint. Secondly, it should articulat a justification for freedom of religion that fully captures the core of the significance of religious belief, and the importance of the religious principles in the public sphere. Thirdly, it should ensure engagement and dialogue between the churches and others on the meaning of human dignity, given its centrality to religious and secular perspectives on rights. Lastly, the churches should consider more carefully what it means to give ‘public reasons’ in the political and cultural context, and how it can engage in the process of ‘public reasoning’ regarding human rights.
Article: “New Challenges for Catholic-Inspired NGOs in Light of Caritas in Veritate“
Jane Adolphe, Catholic Social Science Review
The non-governmental organization (NGO) is perceived not only as a disseminator of information, monitor of human rights, or provider of services, but also as a shaper of national, regional, and international policy. Many members of the lay faithful, working with others from various Christian denominations, have established NGOs to monitor and to promote the rights of the unborn, the natural family, and many other topics of common interest. These NGOs lobby at the national, regional, and international levels. This paper discusses the role of the Catholic-inspired NGO on the international level with reference to the thought of Pope Benedict XVI in his encyclical, Caritas in Veritate.
International Conference on “Governance and Sustainable Development: Building Commerce and Communities,” Coimbatore, India 10th-13th December, 2012. With increasing calls for greater accountability and efficient management of sustainable development, there are also greater demands for more effective governance in this area. The overarching aim of the conference is to provide a forum for stimulating debate and exchange of ideas by exploring the latest developments in the governance of sustainable development from a variety of perspectives including environmental sustainability, social enterprise, corporate governance, legal pluralism, and social investment. The conference will appeal to academics, professionals from both business and non-profit entities, and policy makers.
The Operations Editor would work with the JBIB editor to identify data bases and journal listings that the JBIB should be in, to assist with printing and other logistics, and to help guide the future of the JBIB in the fast-paced academic journal industry.
The Book and Media Editor would work with the editorial staff of the JBIB to manage media reviews for the journal. The Editor should understand the nature of media in the 21st century, be organized, be experienced in the classroom, and be of an inquiring mind.
The course I taught was a survey of some major themes in the Catholic social tradition, with readings from Augustine, Aquinas, Maritain, and the modern papal encyclicals and conciliar documents. Interested readers can see the syllabus here. Guest speakers Father Robert Dodaro, OSA and Father Stephen Brock brought their great expertise to bear on our discussions of Augustine and Aquinas, and I took the class on a side trip to the magnificent Augustinian mother church in Rome, the Basilica Sant’Agostino, which includes the tomb of St. Monica and a wonderful Caravaggio (Madonna di Loreto).
While the economy of America is influenced by old British economists like Smith and Keynes, Germans are still being influenced by an even older, homegrown economist: Martin Luther.
Even today Germany, though religiously diverse and politically secular, defines itself and its mission through the writings and actions of the 16th century reformer, who left a succinct definition of Lutheran society in his treatise “The Freedom of a Christian,” which he summarized in two sentences: “A Christian is a perfectly free Lord of all, subject to none, and a Christian is a perfectly dutiful servant of all.”
Consider Luther’s view on charity and the poor. He made the care of the poor an organized, civic obligation by proposing that a common chest be put in every German town; rather than skimp along with the traditional practice of almsgiving to the needy and deserving native poor, Luther proposed that they receive grants, or loans, from the chest. Each recipient would pledge to repay the borrowed amount after a timely recovery and return to self-sufficiency, thereby taking responsibility for both his neighbors and himself. This was love of one’s neighbor through shared civic responsibility, what the Lutherans still call “faith begetting charity.”
How little has changed in 500 years. The German chancellor, Angela Merkel, a born-and-baptized daughter of an East German Lutheran pastor, clearly believes the age-old moral virtues and remedies are the best medicine for the euro crisis. She has no desire to press a secular ideology, let alone an institutional religious faith, on her country, but her politics draws unmistakably from an austere and self-sacrificing, yet charitable and fair, Protestantism.
(Via: Gene Veith)