Posts tagged with: economics

coins_ladderOne holdover from 2014 into the new year is the cry for an increase in the minimum wage. President Obama pledged (in a December 2014 speech) to bump the minimum wage up to $9/hour nationally. Many believe that this move will help stimulate the still-sluggish economy.

Michael R. Strain, at  the American Enterprise Institute, isn’t wholly against raising the minimum wage, but he’s not wholeheartedly for it, either. He thinks we are asking the wrong question. Do we need to raise the minimum wage, or do we need to increase employment?

The labor market for young and low-skill workers is in terrible shape. More than 14 percent of workers aged 16–24 are unemployed. The situation is even worse if you look only at teenagers, over 1 in 5 of whom are unemployed. The unemployment rate for high-school dropouts over the age of 24 is 10.8 percent — a two-decade high — and only 4 people out of every 10 in that group have jobs. And there are still a staggering 4.1 million unemployed workers who have been looking for a job for six months or longer, many of whom are young or low-skill. (more…)

china-christiansFor the past three decades China has been the world’s fastest-growing major economy, with growth rates averaging 10 percent a year for 30 years. As Brian J. Grim, founder and president of the Religious Freedom & Business Foundation, notes, there are many reasons for the growth, such as market mechanisms, modern technology and Western management practices. But one factor that is often overlooked is the role of Christianity:
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In an interview on Christian distance education, Dylan Pahman, the assistant editor for Acton’s Journal of Markets & Morality, talks about the education bubble, rising costs of higher education, and whether Christian worldview integration in a distance education program is worth a premium:

Luke Morgan: As a blogger for the Acton Institute, you have written about the education bubble, the textbook bubble, and other items regarding what education costs, and how those things should work in a free market. Could you describe to me what you mean when you say: “the education bubble?”

Dylan Pahman: The idea of a bubble came up in relation to the housing bubble which took place in 2007 in the recent recession. Part [of what] happened is, the government started subsidizing home loans, because they decided “everybody aught to be able to own a home.” So there were good intentions, but what they were doing, was cutting away the calculation of risk… The bank is no longer turning people away, that they normally would have… you have easy access flooded into this market for something people really desire… a nice place to live. In doing so, [the market] ended up ballooning. Demand keeps going up, and as demand goes up the price goes up. So people are getting into more and more debt, for the same exact product until it gets to a certain point where it’s too much, too many people couldn’t handle it, and so a lot of people ended up foreclosing on their homes… it was pretty severe, and it went past the housing market, it effected our whole economy, it effected worldwide economies.

Read more . . .

1964 tvI heard Fr. Robert Sirico say once that most of us now carry more technology in our pockets than it took to put a man on the moon in 1969. If you remember that, you’ll also remember when a radio was a substantial piece of furniture and having a color television made you a very popular kid in the neighborhood.

In the 1964 Sears Christmas catalog (if you don’t know what that is, ask your mother. Or your grandmother.), you could get a really swanky television console for $750. For that price today, you can head to your favorite electronics store and pick up six 24-inch flat screen televisions – one for every room in the house. AEI’s Mark J. Perry has a little fun comparing the Christmas of 1964 to 2014’s holiday, at least in terms in what the average family can get for their money. He adjusts for inflation for those console tvs:

The original prices are listed ($750 for the Sears Silvertone entertainment center and $800 for the more expensive one), and those prices are also shown converted to today’s 2014 dollars using the BLS Inflation Calculator: $5,700 for the basic 21-inch color TV model and $6,100 for the more expensive model.

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AzpilcuetaCoverCLP Academic has now released On Exchange, a new translation of a key section in Martín de Azpilcueta’s Manual de confesores y penitents, his most influential work.

Originally published in 1549, the section was included as one of four appendices to the Manual, offering commentary on Gregory IX’s prohibition of nautical usury. The release is part of the growing series, Sources in Early Modern Economics, Ethics, and Law.

Azpilcueta (1492-1586), also known as Doctor Navarrus, was a leading canonist and moral theologian of the early modern period. Although On Exchange was meant to provide moral guidance for pastors and penitents, it has drawn the attention of economic historians for its indirect analysis of 16th-century economic realities, including explorations on exchange practices, supply and demand, and the nature of money. As noted in the book’s overview, Azpilcueta’s “account of the fluctuation of the value of money marks a significant development in early modern economic thought.” (more…)

exploding xmas puddingWe all know it’s easy to get unhinged this time of year. It can be the overload of “How am I ever going to get everything for everybody on my list between now and Christmas and still sleep?” to “Which side of the family are we going to anger this year, since we can’t be everywhere at once?” to “You need HOW MANY cookies for the school party tomorrow?”

Christmas – the day Christians celebrate the coming of the God-Made-Man, Emmanuel – can turn very quickly from revelry to unraveled.

What to do? If you’re Arthur Brooks, you talk to a guru in India. (more…)

Summer-JobsGiving disadvantaged youth a summer job reduces violent crime, according to a new study published to the journal Science.

In a randomized controlled trial among 1,634 high school youth in Chicago, assignment to a summer jobs program decreases violence by 43 percent over 16 months (3.95 fewer violent-crime arrests per 100 youth). The decline occurs largely after the 8-week intervention ends.
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Interest-Rate-burdenUsury is the practice of making immoral monetary loans intended to unfairly enrich the lender. But what, for Christians, counts as an immoral loan?

For much of church history, any interest was considered immoral. The 12th canon of the First Council of Carthage (345) and the 36th canon of the Council of Aix (789) declared it to be reprehensible even for anyone to make money by lending at interest. But that view eventually changed, and today even the Vatican participates in modern banking.

Some Catholics have used this example to argue for other changes, such as contraception. As Jay Richards notes,
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_70189222_464_unemployedSeries Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and for communities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need to know (see also: What Christians Should Know About Unemployment).

Positive news is marked with the plus sign (+) while negative employment data is marked with a minus sign (-). No change is marked by (NC).
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The Fraser Institute has released the tenth edition of their annual report on economic freedom in North America. The report considers how such factors as size of government, takings and discriminatory taxation, and labor market freedom affect people’s freedom to choose how to produce, sell, and use their own resources, while respecting others’ rights to do the same. Read the report below to see where your state ranks.