Posts tagged with: economics

Wizard of Id - Minimum WageThe protests organized by labor organizations to advocate for an increase in the minimum wage have garnered attention, most recently from the NYT, which editorialized in favor of such moves. Over at Think Christian, I weigh in with an attempt to provide some more of the complex context behind the moral evaluation of such mandates.

In the piece, I’m really less interested in the plight of current-minimum wage workers relative to those who might become minimum-wage workers with an increase, those who are currently priced-out of labor markets because of minimum-wage legislation, and those who will be priced out with an increase.

Earlier this week, Joseph Sunde discussed the issue with an eye towards the price of labor: “Prices are not play things.” I largely agree with Joseph about the significance of the price associated with various kinds of labor. The signal that minimum-wage workers should be receiving is that their work is not that specialized or valuable in the marketplace. You can rage against the values of the marketplace all you like, but that’s what the prices signal.

For a limited time, the Acton Book Shop is offering a book by rabbinical scholar Dr. Joseph Isaac Lifshitz for free: Judaism, Law & The Free Market: An Analysis. Acton released this title at an academic conference late last year, and in it, Lifshitz judaism_law_and_free_marketexamines the Jewish treatment of themes such as property rights, social welfare, charity, generosity, competition, and concepts of order.

There are three ways to download this title.

Click here to download this title as ePub.

Click here to download this title for Kindle.

Click here to download as a PDF file.

Again, this is a limited time offer.

Blog author: ehilton
Thursday, August 8, 2013

Is greed really good? Does self-interest equal sin? Samuel Gregg takes on these questions at, in an excerpt from his new book, Tea Party Catholic: the Catholic Case for Limited Government, a Free Economy and Human Tea-Party-Catholic-196x300Flourishing.

In many ways, the free economy does rely upon people pursuing their self-interest rather than being immediately focused upon promoting the wellbeing of others.

One response to this challenge is to recognize that fallen humanity cannot realize perfect justice in this world. ‘We can try to limit suffering, to fight against it’, Pope Benedict wrote in Spe Salvi, ‘but we cannot eliminate it.'[v] This Christian truth helps us to understand, like Saint Augustine, that what fallen humanity can achieve ‘is always less than we might wish.'[vi]


popeThe day Pope Francis was elected, I went directly to the bar. It was about noon when I first got word that white smoke had been spotted outside of the Sistine Chapel.  Soon after, my phone began to flood with texts declaring “Habemus Papam!” I called up a few of my Catholic friends and we decided that the best place to watch the announcement at St. Peter’s was none other than our favorite college pub.

The bar was empty so we asked the bartender to change the TV channel and ordered our first round. Our celebration had begun.

I remember the intensity in the room leading up to the reveal of our new Holy Father. When the announcement finally came, it was followed by a dramatic “Who?” None of us had heard of this beloved Cardinal from Argentina nor considered him in our discussions about possible Papal contenders. (more…)

Douglas Wilson has an interesting take on Detroit’s bankruptcy: “like a drunk trying to make it to the next lamp post.” Why this analogy? Wilson says we first have to understand that Detroit is inevitably in a defaulting situation; the question detroit blightnow is what kind of default.

The only thing we don’t know is what kind of default it will be. The only thing we don’t know is who the unlucky victim of our defaulting will be.

Government does not make wealth. If government has wealth, then this means it was taken. The only way that the government can acquire the means to pay its obligations and debts is by taking it. The only question left before the house is “who will they take it from?”


The newly released movies, Lone Ranger and Iron Man 3 both feature an evil capitalist as the villain. Writing at The American Spectator, Jonathan Witt addresses this common practice in Hollywood:

This media stereotype is so persistent, so one-sided, and so misleading that an extended definition of capitalism is in order. First a quick bit of housekeeping. Yes, there are greedy wicked capitalists—much as there are greedy wicked musicians, greedy wicked landscape architects, greedy wicked manicurists, et cetera, et cetera, ad infinitum—just as there are good people in each of these professions.

Now onto what capitalism is and isn’t. Capitalism is an economic system characterized by private (rather than state) ownership of businesses, a system where investments are determined by private decision, and where prices, production, and the distribution of goods and services are determined mainly by free choices in a free market overseen by the rule of law and stable property rights. In cultural terms, most of us are what you might call functional capitalists. At least when we’re not wrestling with theoretical abstractions, we buy, sell, trade, invest, donate; and we much prefer to do so free from the dictates of one or more government bureaucrats. (more…)

A mere recital of the economic policies of governments all over the world is calculated to cause any serious student of economics to throw up his hands in despair. What possible point can there be, he is likely to ask, in discussing refinements and advancements in economic theory, when popular thought and the actual policies of governments…have not yet caught up with Adam Smith? – Henry Hazlitt, Economics in One Lesson.

These words continue to echo in the District of Columbia as legislators and activists once again choose to listen to their well-intended intuition over the lessons of basic economics.

6858535588_84f27f81ca_bOn Wednesday, D.C. Council approved the Large Retailer Accountability Act (LRAA), a bill which requires “big-box” retailers to pay their employees a minimum wage of no less than $12.50 an hour. The bill is backed by labor activists and some religious leaders who claim that employees who are paid the city’s minimum wage of $8.25 (a dollar higher than the federal minimum wage) are not being paid a ‘living wage.’ Should the LRAA be signed by Mayor Vincent C. Gray (D) and pass a congressional review period, all D.C. retailers that work in a space of 75,000 square feet or more and exceed $1 billion in corporate sales will be forced to pay their employees this higher minimum wage.

Wal-Mart has warned the city that the company will abandon plans for three planned stores in the district should the bill be passed into law. Such a statement is being taken as an ultimatum by labor activists.  Among the most outspoken is Rev. Graylan Hagler, a senior pastor of the Plymouth Congregational United Church of Christ and a leader of Respect DC – a local activist group that fights for what they call living wages.  In response to Wal-Mart’s proposal, Hagler stated, “If you allow a bully to bully you, it’s never going to end. There will be something else. There will always be another agenda. We’ve got some work to do.” (more…)