Posts tagged with: economy

John Stossel must have been on vacation last week.

I caught part of the 20/20 special offering for Earth Day on Friday night. Among the reports was one by Jay Schadler focusing on solar power as an alternative source of energy.

Schadler pointed out that even though the United States has only 5% of the world’s population, we consume 25% of the world’s energy. It’s a typical canard trotted out by those who want to depict us ugly Americans as “energy hogs.”

But instead of taking a deeper look at these kinds of statistics, the stats usually appear at the intro of a news piece as a hook leading into some other point about alternative energy.

But let’s take a brief look at the implications of such statistics. Let’s even accept them at face value. What such conclusions about the wastefulness per capita of American energy consumption overlook is the inherent connection between economic productivity and energy usage.

Yes, let’s say America’s share of worldwide energy usage is 25%.

But what is America’s share of the global economy? Somewhere between one-fifth and one-third of gross world product. So just maybe there is in fact a link between economic output and energy consumption.

Another aspect of this relationship appears when you run a historical series comparing per capita CO2 emissions and income growth on Google’s Gapminder software.

Blog author: jballor
posted by on Friday, March 9, 2007

Some of Michigan’s economic woes are pretty well outlined in an editorial in today’s OpinionJournal, “MoveOnOutofMichigan.org”.

It begins by noting a symbolically important defection:

Comerica Inc. was founded in 1849 in Detroit and the Detroit Tigers play in Comerica Park, but this week the bank holding company announced it is moving its headquarters to Dallas–where, it said, the bigger growth opportunities are. Consider it one more vote of confidence in the state the national expansion forgot, and especially in Michigan Governor Jennifer Granholm’s economic agenda.

Read the rest here.

Michigan’s unemployment rate was 6.9% in January, the worst in the US, and has been one of the worst in the nation for about the last two years.

As a side note, the actual website MoveOnOutofMichigan.org is “coming soon.”

With all this talk of health care reform this year, I couldn’t help but do some digging into the real aspects of the proposals. Ranging from the completely disruptive universal medical care plan from California Governor Arnold Schwarzenegger to the socialist-like plan from Senator Ted Kennedy (D-MA) in the 110th congress, health care is big on the agenda for 2007. I am afraid that if the policies proposed by Schwarzenegger and Kennedy are passed, future generations will witness a detrimental effect on our economy. Kennedy’s home state of Massachusetts, being the first state to provide universal health care to its citizens, has already seen negative aspects in regards to business and job creation.

These arguments for universal health care come disguised in many forms, but all contribute negatively to the economy. The idea of making health care affordable and available to citizens is an excellent idea, however, Governor Schwarzenegger’s and Senator Kennedy’s ideas are the wrong way to go.

Forcing employers to provide health care and penalizing them for not providing coverage is not the right direction to head.

The state of Massachusetts employs a combination of subsidies and penalties to make insurance more affordable and to force people to buy it. The law requires employers with 11 or more full-time employees to offer health coverage or be subject to a $295 fee for each employee, as well as face being billed for services their uninsured employees get.

Because of this policy, employees are going to lose other benefits and suffer pay cuts, or even be fired. The cost of medical insurance is extremely high. The real solution rests in not forcing employers to provide coverage, but to make insurance more affordable.

The answer lies in eliminating all of the fraudulent law suits filed every day by money-hungry lawyers who are completely destroying the medical system. As lawyers sue doctors, malpractice insurance premiums increase. The number of personal injury litigations has steadily increased at a rate of 12% since 1975.

Jury Verdict Research, a database of plaintiff and defense verdicts, says awards in medical liability cases increased 43 percent in 1999, from $700,000 to $1,000,000. Jury awards in medical malpractice claims jumped 43 percent in one year—from $700,000 in 1999 to $1 million in 2000. Juries are compensating plaintiffs more generously than in the past. From 1994 to 2000, Jury Verdict Research found that more than half of medical malpractice jury awards were for $500,000 or more.

Seeing the direct correlation between health care cost and the cost of medical malpractice insurance for doctors (driven up by law suits), the root of the problem is obvious. This must be attacked before anything else. If Senator Kennedy and Governor Schwarzenegger want to see real progress, their plans must be disregarded and tort abuse must be solved first. There are various other aspects to their plans that are also misinformed and misdirected, but I’ll save that for another time.

Blog author: jspalink
posted by on Thursday, December 21, 2006

Rev. Robert Sirico examines the nature of giving, which keeps us all so busy during this Christmas season. “Without exchange, without private property and a moral sense of its foundation, giving would be limited, impossible or morally dubious,” he writes.

Read the commentary here.

Blog author: jballor
posted by on Monday, December 18, 2006

In this week’s Acton Commentary, Anthony Bradley takes a look at the Spanish economy as it faces a “dilemma,” as he puts it, “simultaneously needing immigrants and seeking to curb them.” Bradley also notes that “institutions like marriage and family seem silly to many Spaniards.”

As APM’s Marketplace reports, shifting trends in Spain might claim another Spanish institution, the siesta. A variety of factors, including increasing competition with labor forces in other nations, are leading some to question the viability of the siesta system in Spain.

The siesta works like this: in the middle of the workday, beginning at around 2pm, offices and businesses close up shop for a few hours, giving workers an extended break. It used to be that employees could go home, spend some time with the family, have a meal, and take a brief catnap, returning fresh to work after the siesta concluded.

But nowadays, the lengthy commutes for urbanites makes a trip home impractical. And many workers don’t like having to stay at work until 9pm in order to get a full day’s work in after the siesta break. What once was a way to create family time is now being seen as contributing to an anti-family work environment. As Jerome Socolovsky reports, “Young parents who want to go home before 9 o’clock to be with their kids can meet with disapproval from the boss.”

One interesting thing about this story is the juxtaposition of the situation in Spain, which seems to be heading away from the siesta model, and the reality in some other industrialized nations, such as Japan, where “power napping” is becoming big business.

In his depiction of the Christian’s daily activities in Life Together, Dietrich Bonhoeffer says that “the noonday hour, where it is possible, becomes for the Christian family fellowship a brief rest on the day’s march. Half of the day is past. The fellowship thanks God and prays for protection until eventide. It receives its daily bread and prays…”

It strikes me that in the rise of the Japanese power nap and the fall of the Spanish siesta, we’re seeing two extremes come together. Perhaps working 12-hour days, as is common in Japan, isn’t the human ideal. And neither is the extended break during the hottest hours of the day necessary in places where the work being done isn’t manual labor.

Appropriate rest is needed, that is beyond question. But exactly what constitutes the right amount of rest seems to be an open question, or at least culturally contextual to some extent. As Calvin observed, the moral requirements of the fourth commandment concerning Sabbath observance are universal, and include provision for “our servants and labourers relaxation from labour.” This includes the “carnal” labor of daily work, as but a pointer toward “the mystery of perpetual resting from our works.”

Update: Marketplace takes a look at the immigration boom in Spain here. According to one immigration lawyer, a major reason immigrants head to Spain is “the generous welfare system. Illegal aliens get free health care here.”

Blog author: jspalink
posted by on Wednesday, November 8, 2006

How can developing countries best compete in a global economy? Humberto Belli, president of Ave Maria College of the Americas in Nicaragua, points to the power of education and human resources. In many cases, poorer countries have a long way to go. “This imbalance in the development of human resources, if not corrected, will negatively impact many countries, impeding them from enjoying the benefits of globalization,” Belli writes.

Read the commentary here.

Blog author: jballor
posted by on Wednesday, November 8, 2006

Strong claims coming from Sam at the Philanthropy in Culture, Education, Entrepreneurship blog:

The Charity model does not work – Fact. Time to move on. Responsible, accountable, dignified, respectable investment will liberate the developing world. Inventing a new model for the philanthropic space is not necessary. There is one already in existence – the business model. Change comes about through those who are bold and fearless, constantly innovating on a daily basis, questioning, re-inventing out dated methodologies. Trends suggest partnerships between business and NGO, sharing expertise to deliver lasting, viable solutions – a potent combination.

I guess it depends on what you mean by “the charity model,” but this strikes me as a false dichotomy. Why not both vibrant charity and vigorous commercial investment? Or is that what Sam is arguing for?

Forbes passes along a ranking of the fifty states (plus the District) on the friendliness of fiscal policy toward small business (HT: The Entrepreneurial Mind), provided by the Small Business & Entrepreneurship Council (PDF).

Michigan ranked 10th in the list, which examines 29 governmentally-influenced factors such as personal income tax, capital gains tax, corporate income tax, property tax, death tax, electricity costs, and number of bureaucrats. Michigan was in the top half of most categories (it did rank 47th in the state rankings of gasoline taxes, which underscores the question of who profits from gasoline sales).

Blog author: jspalink
posted by on Wednesday, November 1, 2006

Despite signs of a cooling economy, the Fed is holding the line on interest rates. And reason is fairly simple: Worries about inflation. While there are many good reasons for fiscal restraint in the face of the inflation threat, there are also larger moral issues at work, says Sam Gregg. Inflation strikes at the economy’s ability to assist people to achieve their full human potential. “Tough monetary policy is not just good economics,” Gregg writes. “It’s also an exercise in tough love – for all of us.”

Read the full commentary here.

Blog author: jballor
posted by on Wednesday, November 1, 2006

Christianity Today has identified four political races to watch that “feature debates about issues of special concern to evangelicals.” One of these is Michigan’s race for governor between incumbent Jennifer Granholm and challenger Dick DeVos.

CT is featuring the economy as an issue of evangelical concern in this race:

The September news of massive layoffs by Ford has become far too common in Michigan. Unemployment stands at 7.1 percent, well above the national average. What’s bad for the state could be good for the campaign of Dick DeVos, the Republican. The name may sound familiar to evangelicals. His father, Rich DeVos, helped found Amway Corporation and bankrolled many evangelical schools and ministries.

Acton’s Jerry Zandstra is quoted in the brief piece, as is Corwin Smidt, executive director of Calvin College’s Paul B. Henry Institute for the Study of Christianity and Politics, whose “research indicates evangelicals have become more receptive to Republican economics.

Says Smidt, “Whereas evangelicals were fairly united on social issues in the 1980s and early 1990s and much less unified on economic issues, evangelical voters took a much more unified stand on economic issues by the end of the millennium.”

This contradicts, by the way, the message of Fr. Andrew Greeley and Michael Hout in their recent book The Truth About Conservative Christians: What They Think and What They Believe. In a review of the book, E.J. Dionne writes of their conclusions, “All this suggests that a significant share of the white Christian community, including Evangelicals, is willing to hear alternative arguments to those offered by the Right. Greeley and Hout believe the best arguments for Democrats are about economics. ‘Get economic justice right,’ they argue, ‘and the conservative Christians held back by economic injustice will back you.’” (HT: Mirror of Justice)

Other races featured by CT include Pennsylvania’s Senate race between Bob Casey Jr. and Sen. Rick Santorum and South Dakota’s abortion ban.