Posts tagged with: economics

minwage11Acton’s Director of Research, Samuel Gregg, recently  wrote about the effects of raising the minimum wage at the National Review Online. The latest CBO report estimates that increasing the minimum wage to over $10/hour in 2016 will not greatly affect the poorest in society; it is estimated that this increase will only help 2% of those living in poverty. The benefit of the increase will go to people “already comfortably above the poverty line.” Gregg discusses this phenomenon:

Is that just?

Given the minimal (pardon the pun) effects of mandated minimum wages upon poverty, one must ask why some people invest so much intellectual energy and political capital in a policy that tends to benefit, for example, teenagers and young people from comfortable backgrounds who won’t be staying in minimum-wage jobs for very long.

In part it’s the top-down approach at work. Legislating minimum wages gives us the illusion that legislators and governments can flip a switch and make things better. Legislated minimum wages, however, aren’t immune from the workings of supply and demand. (more…)

JMM_16 2The most recent issue of the Journal of Markets & Morality, vol. 16, no. 2, has been published online at our website (here). This issue’s articles explore a range of subjects from biblical understandings of poverty, Islamic scripture, John Locke, the ills of apathy, an Eastern Orthodox view of the family and social justice, and much more.

In addition, this issue includes our regular symposium of the papers from the Theology of Work Consultation at the Evangelical Theological Society’s 2012 conference.

2013 marked several important anniversaries, as executive editor Jordan Ballor points out in his editorial, (more…)

Pope Francis

Pope Francis

Kishore Jayabalan, Director of Istituto Acton in Rome, recently interviewed with the BBC to discuss Pope Francis’ views on poverty and economics as the pope enters the second year of his papacy. Enjoy the report via the audio player below.

Blog author: jballor
posted by on Thursday, February 13, 2014
"I don't build in order to have clients. I have clients in order to build!"

“I don’t build in order to have clients. I have clients in order to build!”

At Slate Miya Tokumitsu writes that the motto “Do What You Love” really functions as a kind of capitalism-supporting opiate: “In masking the very exploitative mechanisms of labor that it fuels, DWYL is, in fact, the most perfect ideological tool of capitalism.” While Tokumitsu singles out Steve Jobs, perhaps Howard Roark might agree.

If that’s true (and it is more than debatable), then this Think Progress piece which touts the Affordable Care Act as a liberation of workers to do what they love ends up being a funny kind of justification for the capitalistic status quo: “People need to work, sure, but that doesn’t justify forcing people to do a particular kind of work — one they wouldn’t choose to do otherwise — at the pain of bad health.”

The problem with these perspectives, and they both represent ends of a continuum, is that work isn’t either all about you or all about someone else (society, your boss, lords of capital, our elected royalty, and so on). Work is something that concerns both us and others; it has a subjective and an objective aspect that must be balanced.

The reality is that a flourishing society needs people working at occupations all across the spectrum, from more subjectively and inwardly focused artistic, creative, entrepreneurial, and inventive types to those who are working primarily with the service of others in mind, whether to provide for their families or to do the dirty work necessary for others to thrive. But all occupations need to have some element of both the subjective and the objective element, even if the ratio is somewhat different in each individual case.

Even so, the best way to balance these horizontal concerns, I argue today at Think Christian, is by triangulating them vertically, to add attention about God’s divine call into the mix. That gets us beyond, I think, “the conflict that inevitably follows the calculation of labor against capital, dog against dog, me against you.”

Rev. Robert Sirico

Rev. Robert Sirico

Catholics@Work in Danville, Calif. is pleased to present Fr. Robert Sirico, the President of the Acton Institute, as their guest speaker at the March 11, 2014 breakfast forum. Rev. Sirico will be speaking about Pope Francis and his recent apostolic letter, Evangelii Gaudium, and the issue of poverty.

John Duncan, president of Catholics@Work, says,

After listening to and reading articles by Fr. Sirico on this subject it seems to me that there are two dimensions we must put in balance as we listen to and observe this dynamic new Pope.  They are compassion and self-reliance. When properly balanced compassion does not mean providing endless handouts and self-reliance does not mean letting people flounder on their own when they need a little help.

This is a breakfast event, with a Mass celebrated prior. More information and registration details can be found here. (more…)

A recent report from the CBO contains an appendix detailing updated estimates of the labor market effects of the Affordable Care Act (ACA). Pundits for and against the ACA have wasted no time in putting their own particular spin on the projections. Republicans and some other opponents have seemingly celebrated the idea that these estimates may show that the ACA is “a job-killing, economy-crushing villain,” while Democrats and some other supporters have claimed that in times of high unemployment, it’s “an economic benefit” that some will be voluntarily reducing hours or dropping out of the labor force because that means greater demand for labor — those currently unemployed would therefore have more options.

So who’s right? These are mutually contradictory claims, or so it appears. The report is ultimately limited and mixed, but nevertheless raises some serious concerns, caused, in part, by the polarization of Congress both when the law was passed and up to the present. (more…)

jobs-reportThis morning the federal government released the latest jobs report. You may have noticed confusing headlines and reporting about the data, such as this story from NPR, “Job Growth Less Than Expected, But Unemployment Hits 5-Year Low.” What does that mean? Is that bad news mixed with good news? How should we interpret the jobs report?

Here’s what you need to know to understand what the job report is, what it tells us, and what it means for the economy:

What is the “jobs report”?

The “Jobs Report” is the term often used to refer to the Employment Situation Summary, a monthly report issued by the Bureau of Labor Statistics that is based on surveys used to monitor the labor market. This report is released on the first Friday of every month.

Why is the jobs report considered so important?
(more…)

zero-sumWhy do liberal and conservative evangelicals tend to disagree so often about economic issues? This is the second in a series of posts that addresses that question by examining 12 principles that generally drive the thinking of conservative evangelicals when it comes to economics. The first in the series can be found hereA PDF/text version of the entire series can be found here.

In my first post, I covered the first four principles (#1 – Good intentions are often trumped by unintended consequences; #2 – Our current economic and historical context must be taken into account when applying Biblical principles; #3 – To exploit the poor, the rich need the help of the government; #4 – We love economic growth because we love babies). In this post I want to consider points #5 (The economy is not a zero-sum game) and #6 (Poverty in America is more often a matter of personal choice than structural injustice).

5. The economy is not a zero-sum game.

In a zero-sum game, one person’s gain (or loss) is exactly balanced by the losses (or gains) of the other participants. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. It’s similar to dividing a pumpkin pie between five people: someone can only get a larger slice if someone else’s portion is smaller.

Many progressives in America, including far too many (though not all) liberal evangelicals, believe economics is a zero-sum game. They believe wealth, like a pumpkin pie, is fixed and that “there must be one winner and one loser; for every gain there is a loss.” This may be true in some economic systems, but it does not apply in free markets.

Jay W. Richards explains why free enterprise does not require that there be an economic loser for every economic winner:
(more…)

Blog author: jcarter
posted by on Wednesday, February 5, 2014

Over the past few months I’ve become obsessed with the idea that economic principles and arguments need to be explained more intuitively. I’ve assumed that the best way to approach that task would be to create robust metaphors that can be intuitively grasped. But a short parody video by Julie Borowski on the minimum wage has made me realize that sometimes all we really need is to show the obvious conclusions of policy positions.

Borowski’s presentation is silly, her style slapdash and homemade, and her argument well worn to the point of being trite. But there is something about having the argument presented visually that helps to put a fresh spin on an stale (and obvious) point.

Watch the video below and keep in mind that when she talks about “raising your own minimum wage” that this is exactly what we are asking the government to do on the behalf of low-skilled workers — often with the same results.

(Via: Cafe Hayek)

Acton Institute Senior Editor Joe Carter joined host Darryl Wood’s Run to Win show on WLQV in Detroit this afternoon to discuss the issue of income inequality from a Christian perspective. The interview keyed off of Carter’s article, What Every Christian Should Know About Income Inequality. You can listen to the entire interview using the audio player below.