Posts tagged with: economics

There are 14 million Americans who are out of work yet don’t show up in the monthly unemployment statistics. The federal government spends more money each year on cash payments for this group than it spends on food stamps and welfare combined. They are part of the hidden social safety net. They are the disabled former workers.

disability-approvedNPR’s Planet Money has produced a fascinating report on the growth of federal disability programs and what disability means for American workers. Here are some of the highlights.

Whether you’re disabled often depends on your education level and what types of work you can do:

“We talk about the pain and what it’s like,” he says. “I always ask them, ‘What grade did you finish?'”

What grade did you finish, of course, is not really a medical question. But Dr. Timberlake believes he needs this information in disability cases because people who have only a high school education aren’t going to be able to get a sit-down job.

Dr. Timberlake is making a judgment call that if you have a particular back problem and a college degree, you’re not disabled. Without the degree, you are.

(more…)

Blog author: jsunde
Friday, March 22, 2013
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Tyler Cowen has an interesting column in last Sunday’s New York Times, arguing that despite run-of-the-mill objections to “cold” and “heartless” economic analysis, economics is, as a science, “egalitarian at its core”:

Economic analysis is itself value-free, but in practice it encourages a cosmopolitan interest in natural equality. Many economic models, of course, assume that all individuals are motivated by rational self-interest or some variant thereof; even the so-called behavioral theories tweak only the fringes of a basically common, rational understanding of people. The crucial implication is this: If you treat all individuals as fundamentally the same in your theoretical constructs, it would be odd to insist that the law should suddenly start treating them differently.

James Poulos offers an healthy response, reminding us that “no matter how solid the economic foundation for moral egalitarianism, there’s a thing or two of great moral significance that’s missing.”

Indeed, in attempting to avoid the cliché of cold-heartedness, Cowen risks perpetuating a different one: that economists ignore the mystery and spiritual significance of humanity and human behavior. The instilling of egalitarian sensibilities when it comes to seeing people as people is one thing, but part of this reorientation needs to include a recognition of the features that make each us different. Leveling things is helpful when the earth is rocky, but the bigger problem for the modern economist seems to be his propensity to create craters in the pretty green grass. (more…)

Alejandro Chafuen, President of the Atlas Economic Research Foundation, is hoping that newly-elected Pope Francis will be able to sort out the misunderstandings of what “social justice” means in the Church today. In today’s Forbes, Chafuen suggests that “social justice” has too often meant (especially in places like the pope’s home country of Argentina) taking from the rich and giving to the poor.

Chafuen observes that the Jesuit order, to which Pope Francis belongs, has a long intellectual history when it comes to describing what social justice should be. (more…)

In today’s American Spectator, Acton’s Michael Matheson Miller focuses on Pope Francis’ “street smarts“: a man who knows poverty and economics at the most important and basic level.

It’s a counter-intuitive tale of one of Latin America’s most significant bishops living in modest lodgings, cooking his own meals, and riding the crowded public transportation system in Buenos Aires. Even the small but telling gesture of paying his own hotel bill after the Vatican conclave drew media attention.

As a priest and archbishop he went into the poorest parts of Argentina to minister to the people. He said this in a 2008 homily: “Today the place for Christ is in the street… The Lord wants us like Him; with an open heart, roaming the streets of Buenos Aires and carrying his message!”

His vision of engagement with the poor runs deep. Pope Francis has spoken eloquently about the need to treat poor people as “subjects” and not mere “objects” of the state or the economy.

Miller goes on to say that Pope Francis understands and highlights the social aspects of the market, and rejects notions that the poor are somehow “objects” of action, rather than active participants in the economy.

Read “Street Smarts” in American Spectator magazine.

Will Pope Francis promote a leftist view of economics? Hot Air’s Ed Morrissey asked that question of Kishore Jayalaban, Director of Acton’s Rome office. Jayalaban says the impression that Francis will push economic arguments to the left is a misunderstanding of both Catholic economic thought and the economic situation in Argentina—where capitalism is much more rife with cronyism and corporatism than in the US.

Read more about this story HotAir.com.

Samuel Gregg recently spoke with Marie Stroughter from African-American Conservatives. They discuss Gregg’s new book, Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. 

Stroughter asked Gregg about the dichotomy between “cuddle capitalism” (the European social model) and a dynamic market economy.  Gregg says that Americans are more and more choosing a ‘Europeanized’ economy favoring security over economic liberty.

Listen to the full audio here:

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You can purchase the hardcover or eBook version of Becoming Europe here.

Blog author: jcarter
Friday, February 22, 2013
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Innovation is an ethical matter through and through, says Chris MacDonald, because ethics is fundamentally concerned with anything that can promote or hinder human wellbeing.

Innovation is generally a good thing, ethically, because it is aimed at allowing us to do new and desirable things. Most typically, that gets expressed in the painfully vague ambition to ‘raise productivity.’ Accelerating our rate of innovation is a worthy policy objective because we want to be more productive as a society, to increase our social ‘wealth’ in the broadest sense. The 20th Century has seen a phenomenal burst of innovation and increases in wellbeing, exemplified not least by the fact that life expectancies in North American have risen by more than half over the last hundred years. The extension and enriching of human lives are good goals, which in turn makes innovation generally a good thing.

Indeed, when looked at that way, innovation isn’t just a ‘good,’ but a downright moral obligation. Yes, lives for (most) people in developed countries are pretty good. But many still don’t have happy and fulfilling lives; many children, even here, still go to bed hungry. Boosting productivity through innovation is a key ingredient for making progress in that regard. And if less developed nations are going to be raised up to even a minimally tolerable standard of living, we need innovations that will help them, and we need innovations that will make us wealthy enough that we can afford to be substantially more generous toward them than we currently are.

Read more . . .

Trade and Mutual AidIn the forthcoming issue of Comment magazine, I examine how free trade orients us towards the good of others. In doing so, I argue against the value of pious banalities and cheap slogans. I include examples like, “Go in peace; keep warm and well fed,” or, “When goods do not cross borders, armies will.” The latter is often attributed to Bastiat, and while it captures the spirit, if not the letter of Bastiat’s views, the closest analogue is actually found in Otto Tod Mallery: “If soldiers are not to cross international boundaries on missions of war,” wrote Mallery in 1943, then “goods must cross them on missions of peace.”

I was struck by the disconnect between ideology and reality, or between idealism and realism, in an anecdote from a recent foreign policy speech from Sen. Rand Paul. As Paul notes,

In George Kennan’s biography, John Gaddis describes President Clinton asking Strobe Talbot “why don’t we have a concept as succinct as ‘containment.'” Talbot’s response [was] “that ‘containment’ had been a misleading oversimplification; strategy could not be made to fit a bumper sticker. The president laughed… “that’s why Kennan’s a great diplomat and scholar and not a politician.”

I guess that’s also the reason that I’ll never be a politician, either. As Lord Acton observed, “Every doctrine to become popular, must be made superficial, exaggerated, untrue. We must always distinguish the real essence from the conveyance, especially in political economy.” The key for responsible governance is not to lose sight of the complexity that lies behind popular exaggerations and conveyances.

As I argue in “Trade and Mutual Aid,” the temptation to rest easy with simple formulas to complex problems is common, but must be resisted: “Divorced
from a more comprehensive conception of the human person and social flourishing, an uncritical reliance on free trade to solve the world’s problems can well become destructive.” Even so, I conclude, “Free trade is a system that imperfectly, and yet with some measure of success—as Bono and countless others are beginning to recognize anew—orients us toward the good of others.” In the course of this piece, I draw on a variety of sources, including Frédéric Bastiat, Adam Smith, John Calvin, Johannes Althusius, Abraham Kuyper, Herman Bavinck, Pope Paul VI, and Friedrich Hayek.

To get your copy of the Comment issue on the topic of persuasion, including my piece on the fundamental persuasive nature of exchange, “Trade and Mutual Aid,” subscribe by March 1. You’ll also find content from new editor James K.A. Smith, Anne Snyder, Jim Belcher, Ashley Berner, Jonathan Chaplin, Marilyn McEntyre, Janet Epp Buckingham, D. Bruce Lockerbie, Calvin Seerveld, Natalie Race Whitaker, and Nicholas Wolterstorff.

Flourishing Churches and CommunitiesI recently wrote about the need to reach beyond an earthbound economics, re-orienting our thinking around a more transcendent framework that requires active spiritual engagement and discernment. Even as Christians, far too often we set our focus too strongly on temporal features like material needs, happiness, and quality of life—all of which come into play accordingly—without first concerning ourselves with what God is actually calling us to do as individuals.

Transcendent ends will only come from transcendent beginnings, and those beginnings will only be ordered properly if we take the time to identify what objective truths exist for society and how exactly God is calling us to participate within that broader social framework.

As Charlie Self notes in his book, Flourishing Churches and Communities: A Pentecostal Primer on Faith, Work, and Economics for Spirit-Empowered Discipleship, “cultural, economic, and social institutions are built on transcendent moral foundations,” and rely on spiritually transformed individuals to function and flourish toward God’s ultimate ends. By structuring our institutions around this understanding, we create more opportunity for society to reach past the mere meddling of man.

As Self explains, properly rooted ourselves in transcendent truths opens the door to a broader, fuller approach to “service” itself:

Economic and personal liberties must be united with the rule of law to nurture loving and just expressions and allow all people to flourish. Objective truths, which guide behavior and relationships, do indeed exist. There must be explicit and implicit values that ensure cohesive and prosperous living. The Holy Spirit gives discernment and wisdom, enabling Christians to engage virtuously in commerce and culture without being enslaved by the perversions of liberty caused by rebellion and sin. (more…)

Coolidge and pitching great Walter Johnson.

Coolidge and pitching great Walter Johnson.

Calvin Coolidge is ripe for national recognition and his wisdom is being sought out perhaps now more than ever. If you’re a voracious reader of commentary and columns you’ve noticed his common sense adages are being unearthed at a rapid pace. Most of the credit and recognition for the Coolidge revival goes to Amity Shlaes. Her newly released and splendid biography Coolidge can’t be recommended enough. (Full review on the PowerBlog forthcoming)

Coolidge was the last president to oversee federal budget surpluses for every year in office. He cut taxes and government while preaching the wisdom of the American Founders. He was dismissed by many intellectual contemporaries and most historians ignored him or discounted him as some sort of throwback that came to power by luck. A mere placeholder in between the more important Progressive and New Deal eras. But as our spending and debt crisis continues to spiral out of control, America is starving for economic heroes. There is so little courage in Washington to make the tough choices and address the crisis directly. The spending binge has become a mockery of America’s foundations and ideals.

However, This fiscal insanity, debt, and rapid centralization of power is magnifying Coolidge’s heroics. His words and deeds are really timeless though, and deeply rooted in America’s Founding. The principles and lessons only need to be put into practice. Below is a great excerpt from the introduction of Shlaes’s biography:

Our great presidential heroes have often been war leaders, generals, and commanders. That seems natural to us. The big personalities of some presidents have drawn attention, hostile or friendly: Lyndon Johnson, Franklin Roosevelt. There are plenty of personal events in Coolidge’s life, many of them sad, but he was principally a man of work. Indeed, Coolidge was a rare kind of hero: a minimalist president, an economic general of budgeting and tax cuts. Economic heroism is subtler than other forms of heroism, harder to appreciate.