Posts tagged with: economics

Blog author: mhornak
Monday, April 30, 2012
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Is ‘fair trade’ more fair or more just than free trade? While free trade has been increasingly maligned, The Fair Trade movement has become increasingly popular over the last several years. Many see this movement as a way to help people in the developing world and as a more just alternative to free trade. On the other hand, others argue that fair trade creates an unfair advantage that tends to harm the poor.
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Blog author: mhornak
Friday, April 20, 2012
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Have you always wanted to interact with one of Acton’s staff members? Do you have questions or ideas related to Acton’s foundational principles that haven’t been answered? Do you want the chance to participate in an intellectual discussion organized by Acton?

If you answered yes to any of these questions, then this is your chance!
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How do potatoes from Idaho end up in supermarkets in New York City? As economist Walter Williams explains, its because of the power of the profit motive.

I had the privilege of giving the opening lecture last night for the “Limited Government and the Rule of Law” conference taking place here in Grand Rapids this weekend. The talk was on “Christian Origins of Limited Government,” and was followed by an excellent Q&A session.

One of the questions had to do with economic consequences or effects of the Fall into sin, particularly with respect to the curse. There are of course myriad implications for economics from the curse, starting first with the recognition of the toilsome nature of labor in the fallen world:

“Cursed is the ground because of you;
through painful toil you will eat food from it
all the days of your life.
18 It will produce thorns and thistles for you,
and you will eat the plants of the field.
19 By the sweat of your brow
you will eat your food
until you return to the ground,
since from it you were taken;
for dust you are
and to dust you will return.”

Presumably this means that human work isn’t as productive as it would be otherwise. One practical effect of this is scarcity. Fallen work doesn’t produce as many goods and services as non-fallen work; and it would seem there are in fact both qualitative and quantitative consequences for the fruits of human labor. The noetic effects of sin would have some implications here, as well, as it may be that Adam’s insights into the nature of the world were adversely effected. Where he had previously known the nature of things by immediate perception, this insight may well have been clouded. Certainly, as Abraham Kuyper notes, we no longer possess that direct insight that Adam had before the Fall.

So if we understand economics to be, at least from one perspective, reflection on the dynamic between limited resources and unlimited needs, wants, or desires (as Victor Claar described it in his talk on envy earlier this week), then we have clear implications for economics on the scarcity side stemming from the curse.

But I would also argue that the curse has impacted the other half of the dynamic as well. Our desires have become disordered, inordinate, and confused. We want the things we shouldn’t, and we want the things we should want more than we should want them. The acquisitive, grasping, desiring side of human nature is unmoored from and detached from its natural human limits and orientation. We see evidence of this disorder in the aspect of the curse that is applied to the wife: “Your desire will be for your husband, / and he will rule over you.”

So if the curse was the introduction of scarcity into human life, it also was the introduction of desires no longer appropriately limited by obedience to God’s will. Economics in this fallen world deals directly with these (and other) consequences of the curse.

Dismal science, indeed!

Blog author: jballor
Wednesday, April 4, 2012
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Here are some events worth noting next week:

On Wednesday, April 11, Victor Claar will join us for an Acton on Tap. Victor Claar is a professor of economics at Henderson State University in Arkansas, and previously taught for a number of years at Hope College. I’ll be introducing Victor and the topic for the evening, “Envy: Socialism’s Deadly Sin.” We’ll begin to mingle at 6pm, and the talk will commence at 6:30, followed by what’s sure to be some lively discussion. Join us at Derby Station, and if you’re on Facebook, check out the event page, where some enjoyable dialogue has already commenced.

George Weigel

That same evening George Weigel is visiting Grand Rapids to lecture as part of the Catholic Studies Speaker Series at Aquinas College. Weigel is a prolific author, perhaps best known for his magisterial biography of Pope John Paul II, and holds the William E. Simon Chair in Catholic Studies at Ethics and Public Policy Center in Washington, DC. At 7pm at the Wege Ballroom, Weigel will speak on the topic, “John Paul II, Ex Corde Ecclesiae, and the Future of Catholic Higher Education.” Check out the event and Catholic Studies at Aquinas College on Facebook.

The following morning, Thursday, April 12, at 8am Victor Claar will be headlining a breakfast at Kuyper College. Kuyper has recently introduced a business leadership major, and this breakfast is the latest event held to promote development among the students, faculty, staff, and broader community around the vitally important challenges of faithful engagement of business and economic aspects of life. Claar is the co-author of Economics in Christian Perspective, and will draw on this well-regarded text as he provides principles for understanding the relationship between Christian faith and commercial activity. There is some limited seating available for this breakfast, so check out the details at Kuyper’s website for more information on reserving a spot.

I’ll also be attending the 21st annual Wheaton Theology Conference, which this year focuses on the theme, “Bonhoeffer, Christ, and Culture.” One of my many projects at present is a dissertation (my second!) on Bonhoeffer’s ethics, and so I’m looking forward to this event, which runs Thursday and Friday next week and is at Wheaton College in Wheaton, Illinois.

Bonhoeffer, Christ, and Culture

A week ago, Dr. Samuel Gregg addressed an audience here at Acton’s Grand Rapids, Michigan office on the topic of “Europe: A Continent in Economic and Cultural Crisis.” If you weren’t able to attend, we’re pleased to present the video of Dr. Gregg’s presentation below.

Blog author: dpahman
Friday, February 24, 2012
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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).