Posts tagged with: economics

Beroud, Louis (1852–1930) Central Dome of the World Fair in Paris 1889

The newest edition of the Journal of Markets & Morality is now available online to subscribers.

This issue of the journal (14.2) is actually a theme issue on Modern Christian Social Thought. Accordingly, all ten articles engage the history and substance of various approaches to Modern Christian Social Thought, with special emphasis on the Reformed and Roman Catholic traditions.

There is also another installment of our Controversy section, featuring a three-way debate over the question, “Does Libertarianism Tempt Some Catholics to Stray from Catholic Social Thought?”

As always we have another thorough collection of first-rate book reviews from top scholars and experts in the fields of theology, ethics, and economics.

Lastly, our Status Quaestionis section includes two works from the nineteenth century which have never before been translated into English: “Critical Analysis of the First Concepts of Social Economy” (1857) by Luigi Taparelli, SJ and “Christ and the Needy” (1895) by Dutch theologian and statesman Abraham Kuyper. All in all, it may possibly be our largest issue yet.
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Blog author: jcarter
Friday, February 24, 2012
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How much is a homemaker worth? Financial service company Investopedia recently added up what it would cost to hire someone to do cooking, cleaning, child care, driving, laundry, and lawn service equivalent to a full-time homemaker. The equivalent compensation would total $96,261.

Studies like this one are perennial, as Greg Forster notes, and have been around since at least the 1950s. But while the intentions are well-meaning, such studies have a tendency to reinforce materialistic assumptions about the nature of human relationships in both the family and the economy:

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Blog author: jcouretas
Wednesday, February 22, 2012
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Over at National Review Online, Acton Research Director Samuel Gregg takes a look at a recent Charles Blow op-ed in the New York Times in which the writer hyperventilates about statements made by Rick Santorum on the subject of income inequality.

Economically speaking, income inequality reflects the workings of several factors, many of which are essential if we want a dynamic, growing economy. Even your average neo-Keynesian economist will acknowledge that, without incentives (such as the prospect of a higher income), many entrepreneurial projects that create wealth — not to mention jobs and often greater incomes for others — may lie dormant forever. Either that or the entrepreneur will simply leave for a more friendly economic environment in which his ideas, willingness to assume risk, and potential job-creation capacities are taken more seriously.

Part of Mr. Blow’s unhappiness with Santorum was that he made his inequality remarks in Detroit, despite Blow correctly noting that “income inequality in the Detroit area isn’t particularly high.”

But Detroit’s well-documented economic problems have little to do with income inequality per se. They have far more to do with decades of corporatist collusion between bailed-out car companies and the UAW, rampant political corruption, and assorted crony-capitalist arrangements — the same arrangements that recently helped, as a recent University of Illinois study illustrated, the Chicago metropolitan region merit (yes, merit) the unenviable title of “the most corrupt area in the country since 1976.”

Read “Inequality Anyone?” by Samuel Gregg on National Review Online.

Blog author: jballor
Wednesday, February 15, 2012
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In this week’s Acton Commentary, “Corrupted Capitalism and the Housing Crisis,” I contend we need to add some categories to our thinking about political economy. In this case, the idea of “corporatism” helps understand a good deal of what we see in the American system today. Adding corporatism to our quiver helps us to make some more nuanced distinctions than simple “socialism” and “capitalism” allow.

Take, for instance, Mitt Romney’s contention this week while campaigning in Michigan that the bailouts of the auto companies was a feature of “crony capitalism.” A better way to understand the relationship between big business and big government today might instead be characterized as “crony corporatism.” You have a select group at the highest levels of an industry influencing government policy, which in turn favors those big businesses, provides various moral and fiscal incentives to consumers to patronize these industries, and then when necessary bails them out.

In this week’s commentary I use corporatism as a way of unpacking what happened in the recent housing crisis. For too long the American dream has revolved around home ownership. Owning a home is a good thing for many people; for many others it isn’t. What we have failed to recognize is the moral hazard that attends to government promotion of a particular vision of the American dream and the crises that result. As Dambisa Moyo characterized the housing crisis,

The direct consequence of the subsidized homeownership culture was the emergence of a society of leverage, one where citizen and country were mortgaged up to the hilt; promoting a way of life where people grew comfortable with the idea of living beyond one’s means.

The definition of the American dream offered by politicians should be far less precise, and presumably not include the level of specificity that says we should all own a home, drive a GM car, and have a college degree. As Nobel laureate Edmund Phelps put it in a 2009 interview,

I’m hoping that the administration and other thought leaders will succeed eventually in bringing the country back to the older idea that the American dream is having a career, getting a job, and getting involved in it, and doing well. That was the core of the good life. That’s what we have to get back to, and get away from this mystique that the most important thing in your life that could ever happen to you is to be a home owner.

The cultivation of an “ownership society” through government subsidy is only one feature of the creeping corporatism of contemporary America. As has been documented just in the last few days, the role of the government in directing and providing social goods has increased dramatically over recent decades. Following a New York Times story describing the increasing dependence of the American middle class on governmental initiatives of one form or another, Steve Hayward summarizes, “increasingly we’re taxing the middle class to pay themselves their own money, minus a large commission to Washington DC” (HT: The Transom). The government is increasingly using these subsidies and incentives to shape how people live their lives.

As I conclude in today’s piece, “The American people do not need politicians to tell them what happiness is and how it should be pursued. These are functions that our families, churches, and friendships fulfill.” One place to look instead would be the Westminster Shorter Catechism: “Man’s chief end is to enjoy God and glorify him forever.” Another would be the words of Jesus: “Life does not consist in an abundance of possessions” (Luke 12:15).

Methodism was once the largest denomination in America. The faith grew rapidly from America’s beginning and has traditionally been characterized by aggressive evangelism and revival. It has carried a vibrant social witness, too. Methodist Church pronouncements once garnered front page headlines in The New York Times. Its high water mark undoubtedly came during prohibition, the greatest modern political cause of the denomination. Methodists even built and staffed a lobbying building next to Capitol Hill believing a dry country could remake society.

In Methodism and Politics in the 20th Century, Mark Tooley has chronicled Methodism’s denominational political pronouncements from William McKinley, America’s first Methodist president, to 9-11. Tooley has unearthed a staggering amount of official and unofficial Methodist declarations and musings on everything from economics, war, civil rights, the Cold War, abortion, marriage, and politics.

Tooley, who is also the author of Taking Back the United Methodist Church, offers very little of his own commentary on the issues in Methodism and Politics, instead allowing Methodism’s voice for over a century to speak for itself. Ultimately what emerges is a denomination that begins to recede in significance, perhaps because of the sheer saturation of their witness in the public square. But its leadership often trades in a prophetic voice for a partisan political one, and sadly at times, even a treasonous voice.

Methodists not only led on prohibition, but were out in front on issues like women’s suffrage, the New Deal, and the Civil Rights Movement. While they did not always carry a unified voice on these issues, even many Southern annual conferences and bishops broke with the popular political position of defending segregation in their home states.

While support for the New Deal and greater federal intervention in the economy was not rubber stamped by all Methodists, an emerging and often biting anti-free market voice would dominate official pronouncements. This continues to this day with declarations calling to support greater government regulations, single payer health care, and a host of measures calling for government wage and price controls. Way back in 1936, one Oklahoma Methodist pastor offered his own advice to some of his brethren:

Why do [these Methodist Reds] not get passports, emigrate to Russia where they can prostrate themselves daily before the sacred mummy of Lenin and submit themselves to the commands of Joseph Stalin?

Tooley chronicles the pacifist sentiment that begins to overtake the denomination. This amounted to the equivocating of a denomination that once was harsh in its critique of communism to one where a committee of bishops would pronounce by the 1980s, that “actions which are seen as ‘Marxist-Leninist’ by one group are seen as the core of the Christian message by others.”

Perhaps most shameful was the action of several bishops during the American hostage crisis in Tehran, Iran, from 1979 – 1981. United Methodist Bishop Dale White said of the new Islamic fundamentalist regime, “I know there are individuals in the Iranian power structure who do trust The United Methodist Church.” White offered assessments of the new regime being “democratic.” The General conference sent a message to Ayatollah Khomeni declaring that it hears the “cries of freedom from foreign domination, from cultural imperialism, from economic exploitation.” Methodist officials participated in pro-Khomeni student demonstrations in Washington D.C. and met with and offered praise for officials in the new Iranian government. One former hostage recalled:

Some of the people who came over especially the clergy were hypocrites because they came to aid and comfort the hostages but ended up giving aid and comfort to the Iranians and actually making it worse for us.

The election of President Ronald Reagan naturally sent many United Methodist Church officials into a tizzy. “People voted their self interest instead of the Social Principles of the church. It looks like United Methodists with everybody else forsook their Christian idealism at the ballot box,” said Bishop James Armstrong. Some United Methodist Bishops had already declared their denomination much more aligned with the Democratic Party. It was downhill from there for many Methodist leaders, as they coddled the Sandanistas and “Brother Ortega” in Nicaragua and dove head first into the nuclear freeze movement.

In the 1990s one General Board of Global Ministry official bewailed the Republican Congress by saying, “White, male supremacists now wear suits. They talk states rights and anti-taxes. The climate of hate and violence is a challenge to us.” General Board of Church and Society official Robert McLean declared that the GOP Contract with America effectively “cancels” the Sermon on the Mount.

Hyperventilating over partisan politics would continue in The United Methodist Church and continues to this day by American officials. Most recently many have joined forces with the “What Would Jesus Cut Campaign?” But because Methodism is a connectional denomination, the growing African influence is counter balancing what Methodist progressives and political liberals can accomplish. They have already reached the pinnacle of their power, which has been shrinking for decades. And because progressives have made so many predictable pronouncements, they no longer speak with the weighty spiritual authority they once held. It is a lesson for all churches and those that wish to bring their faith into the public square. At the 1934 Illinois Annual Conference one lay delegate offered what can be seen only as prophetic now when he declared, “It is time for churches to stop adopting resolutions and then finding out what they mean afterward.”

Just a few weeks ago, The United Methodist Church’s General Board of Church & Society heaped praise on President Obama’s HHS mandate with no mention of the measure’s threat to religious liberty, deciding to only view it as a partisan measure to defend for furthering the role of government in health care.

At the conclusion of the book, after reading through 100 years of political pronouncements, Tooley finally offers just a hint of his own assessment,

American Methodism in 1900 was growing, confident, largely unified, and politically formidable. One hundred years later, it had already endured several decades of steep membership decline and accompanying political marginalization as church officials were no longer presumed to speak for most church members.

Tooley, through the myriad of voices that he has chronicled over such a lengthy period, understands those voices only need to speak for themselves to make his point.

In the 1920s Calvin Coolidge once said of Francis Asbury, one of the first two Methodist Bishops in early America, that “he did not come [to America] for political motives,” but came to bear “the testimony of truth.” One wishes Methodist denominational officials would not only follow more of Asbury’s doctrine, but his praxis as well.

Over at National Review Online, Acton Research Director Samuel Gregg recaps President Obama’s State of the Union address:

There is always something surreal about a Chicago politician talking about “fairness” and “playing by the rules.” There is something even more bizarre about a president talking about the need to expand energy production after his administration has generally undermined significant progress in facilitating energy development for three years in the middle of a recession. And who would describe Detroit as “on the way back”? A stroll down the ghost town otherwise known as downtown Detroit — which is teetering on the edge of being put into administration — would suggest the opposite. It’s not often that I agree with very much said by the New York Times’s Maureen Dowd, but this State of the Union speech illustrated that the lady was dead right in describing the Obama presidency as a bubble within a bubble.

Read it all on NRO.

“Stupid is the new smart,” and “Pop culture is a wasteland” are just a few lines from Daniel J. Flynn’s introduction to Blue Collar Intellectuals: When the Enlightened and the Everyman Elevated America. Certainly, one does not need to read Flynn’s account to surmise that there are grave problems with our culture. But many would miss some great stories and a return to a people and time that crafted a great uplifting for mass audiences.

Flynn has profiled six intellectuals or thinkers who sprung out of the immigrant backgrounds and / or a working “blue collar” origins. They opened up and popularized the great works, theories, and conversations of Western Civilization for the everyman. It seems it is of little coincidence that in profiling Mortimer Adler, Eric Hoffer, Ray Bradbury, Will and Ariel Durant, and Milton Friedman, Flynn touches on diverse streams of thought such as history, literature, economics, philosophy, and popular story teller. Flynn laments that we do not see these type of public intellectuals today and we are surrounded by passive and meaningless entertainment that not only debases but detaches us from the great ideas and a common heritage.

Will and Ariel Durant popularized history with their widely popular 11-volume The Story of Civilization. Flynn lauds them as writers who “extracted history from the academic ghetto whither it had retreated, opening the conversation about the past to all comers.”

Mortimer Adler, who compiled The Great Books of the Western World set, once quipped, “The only education I got at Columbia was in one course.” That course studied the classic works of Western Civilization and Adler sought to package them for mass consumption. A brilliant mind, Adler received a Ph.D from Columbia without ever receiving a high school diploma, bachelor’s, or master’s degree. Adler held a disinterest and disdain for the academic bubble, and in turn academics turned their noses up at his work for packaging and popularizing the great works. “The Great Books Movement, for better or worse, offered education minus the middleman. It is no wonder the middleman objected so vociferously,” says Flynn.

The idea that somebody who took on entrepreneurial endeavors and worked a myriad of jobs in the economy might make a better or more notable economist makes sense. But it’s not always the case, when one looks at say the lifelong academic John Maynard Keynes. Flynn notes what many free marketers already know about Milton Friedman and that is he “waited tables, peddled socks door-to-door, and manned roadside fireworks stands. He attended the public schools and lived in rent controlled apartments.” Friedman harnessed his experiences, professorship, books, a “Newsweek” column, and a PBS series to popularize libertarian free-market economic principles. He transformed public policy and much of the economic lingo and ideas we borrow today directly comes from the free-market economist.

Eric Hoffer, the longshoremen philosopher, was the favorite author of President Dwight D. Eisenhower. His book The True Believer covers the psychology of mass movements. “Hoffer’s patriotism stemmed from the belief that America was the workingman’s country. That the everyman became president hardly proved America’s mediocrity; it proved the excellence of the American everyman,” says Flynn.

Ray Bradbury, still writing, and most noted for Fahrenheit 451, could not afford college. He has proudly said that he is an alumnus of the Los Angeles Public Library. Bradbury glamorized small town Midwestern life and the significance of books, while slamming the detached superficial culture that suffers from a lack of education and critical thinking.

Flynn has weaved together some wonderful stories to remind us that great culture and deeper ideas are accessible to the masses. I have often wondered how some history professors could turn a lively and passionate subject boring. History, and other academic subjects, have too often been turned into gender-bending, “evil colonialist” type studies, eschewing much of the established work of Western Civilization. They deliberately use their own inner language and codes. “The ivory tower has become a tower of babble,” Flynn says.

He makes the easy case that a vapid society is objectionable and bankrupt of purpose, meaning, and ideas. He also highlights the less known significance on society of six influential thinkers, who because of their background, were able to help uplift the masses to the great ideas and release those ideas from an academic ghetto. Outside of Friedman, I did not know much about these figures and the stories he tells are lively and I did not realize how some of these thinkers already had had an influence on me. Growing up, my family had the set of The Great Books of the Western World, so it was fascinating to hear the story behind it.

As somebody with a divinity degree, and as an observer of ministry and churches, I thought about this problem in our faith culture. Today, there is a serious issue with the need to see Church as a form of entertainment first. Too often churches reflect the very same problems that plague our culture. There is little use for serious deeper reflection in some churches, and little use for the study of doctrine and traditions. The consequences are that confusion abounds today about what Christianity teaches and its transformative power. A revival and renewal is not just needed in culture, but in many of our churches too. There is a great need for teachers and preachers to deliver that word in days such as these as well.

David Deavel’s review of Mitch Pearlstein’s From Family Collapse to America’s Decline: The Educational, Economic, and Social Costs of Family Fragmentation has been picked up by First Things and Mere Comments. Deavel’s review was published in the Fall 2011 issue of Religion & Liberty.

In his review, Deavel declared:

His [Pearlstein] new book, From Family Fragmentation to America’s Decline, laments this inability of many to climb their way up from the bottom rungs of society. But rather than fixating on the one percent, he focuses on the 33 percent. This is the percent of children living with one parent rather than two. These children, victims of what many call “family fragmentation,” start out with tremendous social and educational deficits that are hard to narrow, nevermind close. These are most often the children for whom upward mobility has stalled. Their economic well-being has led to decline in American competitiveness and also the deeper cleavages of inequality that have been so widely noted.

Dolphus Weary has a remarkable story to tell and certainly very few can add as much insight on the issue of poverty as he does. When you read the interview, now available online in the Fall 2011 R&L, or especially his book I Ain’t Comin’ Back, you realize leaving Mississippi was his one ambition, but God called him back in order to give his life and training for the “least of these.” One of the things Weary likes to ask is “Are you going into a mission field or are you running away from a mission field?” It’s a great question we should all ask ourselves.

Historian Mark Summers returns to offer another piece commemorating the 150th anniversary of the American Civil War. Last issue, Summers penned “The Great Harvest: Revival in the Confederate Army during the Civil War.” In this this issue he has written an article focusing on Northern Catholics and the Catholic Church during the conflict.

David Deavel has offered a very timely review of Mitch Pearlstein’s, From Family Collapse to America’s Decline: The Educational, Economic, and Social Costs of Family Fragmentation. Pearlstein focuses on the 33 percent rather than the one percent. Deavel observes:

This is the percent of children living with one parent rather than two. These children, victims of what many call ‘family fragmentation,’ start out with tremendous social and educational deficits that are hard to narrow, nevermind close. These are most often the children for whom upward mobility has stalled. Their economic well-being has led to decline in American competitiveness and also the deeper cleavages of inequality that have been so widely noted.

I reviewed the new biography of William F. Buckley, Jr. by Carl T. Bogus. This book, written by a self-described liberal, is critical of Buckley but works at achieving fairness. If you want to read a comparison of two very different biographies of Buckley, I also reviewed Lee Edwards sympathetic biography of Buckley in the Spring 2010 issue of Religion & Liberty.

The Russian philosopher and writer Vladimir Solovyov is the “In The Liberal Tradition” figure this issue. Dylan Pahman has already profiled this piece on the PowerBlog so check out his comments here.

There is more content in the issue and the next interview in R&L will be with Reformation scholar and Refo500 director Herman Selderhuis.

Finally, I just want to say learning from Dolphus Weary’s story was a spiritually enlightening experience. I read his book in one night in preparation for the interview and he is truly humble. While Weary offers a lot of insight, I believe his greatest strength is teaching and leading through example. It’s no wonder many ministries have tried to replicate what he has done and now does in Mississippi. There is something to be said for somebody who remains tied to their roots and is proud of where they come from, especially if where they come from may look hopeless by the world’s standards.

A practical man?

On the American Spectator, Acton Research Director Samuel Gregg examines the baleful influence exerted on economic thought and public policy for decades by John Maynard Keynes. Gregg observes that “despite his iconoclastic reputation, Keynes was a quintessentially establishment man.” This was in contrast to free-market critics of Keynes such as Friedrich Hayek and Wilhelm Röpke who generally speaking “exerted influence primarily from the ‘outside': not least through their writings capturing the imagination of decidedly non-establishment politicians such as Britain’s Margaret Thatcher and West Germany’s Ludwig Erhard.” Perhaps not so surprisingly, many of Keynes’ most prominent devotees are also “insider” types:

The story of Keynes’s rise as the scholar shaping economic policy from “within” is more, however, than just the tale of one man’s meteoric career. It also heralded the surge of an army of activist-intellectuals into the ranks of governments before, during, and after World War II. The revolution in economics pioneered by Keynes effectively accompanied and rationalized an upheaval in the composition and activities of governments.

From this standpoint, it’s not hard to understand why New Dealers such as John Kenneth Galbraith were so giddy when they first read Keynes’s General Theory. Confident that Keynes and his followers had given them the conceptual tools to “run” the economy, scholars like Galbraith increasingly spent their careers shifting between tenured university posts, government advisory boards, international financial institutions, and political appointments — without, of course, spending any time whatsoever in the private sector.

In short, Keynes helped make possible the Jeffrey Sachs, Robert Reichs, Joseph Stiglitz’s, and Timothy Geithners of this world. Moreover, features of post-Keynesian economics — especially a penchant for econometrics and building abstract models that borders on physics-envy — fueled hopes that an expert-guided state could direct economic life without necessarily embracing socialism. A type of nexus consequently developed between postwar economists seeking influence (and jobs), and governments wanting studies that conferred scientific authority upon interventionist policies.

Read Samuel Gregg’s “The Madness of Lord Keynes” on the American Spectator.