Posts tagged with: economics

Blog author: jcarter
Wednesday, April 2, 2014
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money-and-justice-scales“If a society regards governmental manipulation of money as the antidote to economic challenges,” writes Acton research director Samuel Gregg at Public Discourse, “a type of poison will work its way through the body politic, undermining justice and the common good.”

Money: it’s on everyone’s mind sometimes. In recent years, however, many have suggested there are some fundamental problems with the way money presently functions in our economies.

No one is seriously denying money’s unique ability to serve simultaneously as a medium of exchange, a measure and store of value, and a means of calculation. Yet deep reservations about the current workings of the world’s monetary systems, both foreign and domestic, have been expressed by people ranging from Senator Rand Paul (who is fiercely critical of the Federal Reserve), to Pope Francis (who has denounced what he calls “the cult of money”) and France’s François Hollande (who once described “big finance” as his “greatest adversary”).

Read more . . .

Acton Institute President Rev. Robert A. Sirico joins host Dennis Miller on The Dennis Miller Show to discuss President Obama’s recent visit in Rome with Pope Francis, and the differences between the current president’s relationship with the Roman Pontiff and that of Reagan and Pope John Paul II. They also discuss the PovertyCure initiative, after which Dennis declares “Bobby Sirico” to be a “good cat,” which is high praise indeed coming from the former host of SNL’s Weekend Update. The audio is available via the player below.

bitcoin“For federal tax purposes, virtual currency is treated as property.”

With those ten words, the IRS has made it more difficult — if not impossible — for bitcoin and other virtual currencies from gaining widespread, mainstream acceptance as a currency for commercial transactions. Because they are now treated as property, virtual currencies are considered, like stocks, bonds, and other investment property, as capital assets and will be subject to capital gains tax.

But why does this hinder bitcoins use a currency? The answer is fungibility: Bitcoins are no longer completely fungible.
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Blog author: jcarter
Wednesday, March 26, 2014
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Many who reject capitalism in favor of some “third way” do so because they often mistake it for government-corporate cronyism, says Jonathan Witt in this week’s Acton Commentary. But in countries that have begun extending true economic freedom to the masses, capitalist activity has already lifted hundreds of millions of people out of extreme poverty.

Happily, a new piece in The Economist magazine offers some helpful medicine for the confusion, insisting on the distinction between cronyism and capitalism while also pointing to some hopeful signs that a rising middle class around the globe is gaining the clout to fight the power structures that still wall millions out of the wealth creation game. My reservation about the article is that it misreads America’s Progressive era, and in the process, leaves cronyism’s favorite trick unexposed.

According to the piece, crony capitalism in America “reached its apogee in the late 19th century, and a long and partially successful struggle against robber barons ensued. Antitrust rules broke monopolies such as John D. Rockefeller’s Standard Oil. The flow of bribes to senators shrank.” Later, it tells readers that while developing countries are making progress against cronyism, “governments need to be more assiduous in regulating monopolies.”

The full text of his essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

Blog author: jcarter
Wednesday, March 26, 2014
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dv1693021Modern rhetoric of income inequality is driven by covetous envy, says Russell Nieli. Caritas, humility, gratitude, and goodwill toward others are a healthy society’s answer to the ancient curses of envy and pride:

The problem of the chronically poor is that they are chronically poor, not that some people make a lot more money than other people and bring about “inequality.” The fact that some fail to earn enough to live at a decent level is a genuine social problem. The fact that those who are not poor are widely dispersed in terms of how much they earn is not.

Under the rhetoric of “inequality,” covetous envy—including that of the upper-middle-class for the truly affluent—has reared its ugly head. Mayor de Blasio’s proposal to fund universal pre-kindergarten education by an income tax increase solely on the income of the highest income earners making more than $500,000 a year, who already pay city income taxes at the highest graduated rate, is an iconic example of this newer tendency to combine genuine anti-poverty concerns with envy-driven, soak-the-rich taxation policies. It is perhaps no accident that New York’s upper middle class (those making between $100,000 and $200,000 annually) voted for de Blasio in greater proportion than many New Yorkers in lower income brackets.

Read more . . .

wallet-lockWhen bank robber Willie Sutton was asked why he robbed banks, he is (mis)quoted as having said, “Because that’s where the money is.” Turns out that is also why there is more street crime in poorer neighborhoods: because that’s where the cash is. Or at least it’s where the case was.

It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional anonymity. In poor neighborhoods — where street offenses are concentrated — a significant source of circulating cash stemmed from public assistance or welfare payments. But starting in the 1990s that changed, as the Federal government gradually phased out paper welfare checks in favor of electronic debit cards (the Electronic Benefit Transfer [EBT] program).

A team of researchers studied the effects of this change in Missouri and found that it was directly responsible for a hefty 10 percent drop in the overall crime rate:
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Blog author: jballor
Monday, March 24, 2014
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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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