Posts tagged with: exchange

Blog author: TGroenendal
Thursday, June 30, 2016


Abraham Kuyper (1837 – 1920) | Wikimedia Commons

The benefits of free trade are vast, and enjoyed throughout the world.  The alternative — trade restricted by protective tariffs and quotas — concentrates benefits to a protected few who profit due to less competition from foreign competitors.

The morality of free trade is clear. Individuals can choose what they buy from where, linking the world through a network of exchange. Integration through trade and exchange is a major factor lifting people out of poverty. The more and freer the trade, the better for human flourishing. Despite this, there is a growing protectionist movement in the United States political landscape.

In Abraham Kuyper’s book Antirevolutionaire Staatkunde (or Anti-Revolutionary Politics), he discusses his political support of tariff increases in the Netherlands. One of Kuyper’s arguments in defense of tariffs is a moral argument, which stems from concerns over unemployment. He writes:

Excessive enthusiasm for Free Trade and for free movement of population can deprive men of work who would otherwise have it in abundance. Free Trade can have as a consequence that many items are fabricated abroad so that there is no work to be done here. This can be observed in its simplest form in the case of lumber. If unsawed logs are imported, then the wages of sawing can be earned here. If, however, lumber arrives sawed, then the wages for sawing are lost here. (more…)

cracked-flag-fragment-america-dividedThe fabric of American society is tearing at the seams. Whether witnessed through the disruptive insurgencies of Donald Trump and Bernie Sanders or the more mundane fissures of pop culture and daily consumerism, Americans are increasingly divided and diverse.

Yet even in our rash attempts to dismantle Establishment X and Power Center Y, we do so with a peculiar nostalgia of the golden days of yore. You know, those days when institutions mattered?

This is particularly evident in the appeal of Mr. Trump, whose calls to burn down the houses of power come pre-packaged with a simultaneous disdain for the power of bottom-up diversity and the liberty it requires. Once the tattered castle on the hill is torched to the ground, we’re told, we will receive a greater castle on a higher hill with a far more deserving king. The scepter will be yuge, and with power restored to the hands of a man shrewd enough to exploit it, surely we will “win” again. (more…)

LessiusCover-01In his famous work, History of Economic Analysis, economist Joseph A. Schumpeter gives a favorable nod to the works of Leonardus Lessius (1554–1623), sparking a fair amount of interest in the 16th-century Jesuit moral theologian.

CLP Academic has now published On Sale, Securities, and Insurance, a selection from Lessius’ most influential contribution to early modern economics, ethics, and law. The book offers the first full English translation of key sections of the second book (On Justice) of Lessius’ treatise On Justice and Right (De iustitia et iure), specifically chapters 21 (On Sale-purchase) and 28 (On Suretyship, Insurance, Pledge, and Mortgage).

Based at the Jesuit College in Louvain, Lessius earned the reputation as “Oracle of the Netherlands” for the advice and analysis he offered to local merchants, jurists, and political rulers regarding matters of conscience, duty, and justice.

As translator Wim Decock writes in the introduction: “Though dwelling on the virtues of prudence, fortitude, and temperance too, the better part of the treatise includes a systematic treatment of the virtue of justice and, particularly, of property, torts, and contract law.” (more…)

In Leonard Reed’s famous essay, “I, Pencil,” he marvels over the cooperation and collaboration involved in the assembly of a simple pencil — a complex coordination that is quite miraculously uncoordinated. 

In a short video from economist Alex Tabarrok, the same lesson is applied to Valentine’s Day roses:

“Behind every Valentine’s Day rose, there’s an extensive network of people from all over the world,” says Tabarrok, “from the farmer to the shipper to the auctioneer to the retailer—all cooperating to produce and transport roses from field to hand in a matter of days.”

But though these countless creative partners are surely acting out of some degree of self-interest, and though (in this case) they are working to enable and empower what we presume to be “loving” exchanges, there is something deeper going on throughout the activity. (more…)

money-abstractWhen it comes to economic stewardship, Christians are called to a frame of mind distinct from the world around us.

Though we, like anyone, will sow and bear fruit, ours is an approach driven less by ownership than by partnership, a collaboration with a source of provision before and beyond ourselves. This alters how we create, manage, and invest as individuals. But it mustn’t end there, transforming our churches, businesses, and institutions, from the bottom up and down again.

In some helpful reflections from the inner workings of his own organization, Chris Horst, vice president of development for HOPE International (a Christian microfinance non-profit), opens up about the types of questions they wrestle with as a non-profit. Through it, he demonstrates the type of attentiveness we were meant to wield across all spheres of society.

Blog author: jsunde
Wednesday, December 9, 2015

0611When we think about “stewardship,” our minds tend to revert to the material and the predictable. We think about money or the allocation of resources. We think about growing crops or creating goods or financial investment and generosity.

For the Christian, however, stewardship goes much further, weaving closely together the tangible and transcendent in all areas of life. “Stewardship is far more than the handling of our money,” write Lester DeKoster and Gerard Berghoef. “Stewardship is the handling of life, and time, and destiny.”

In For the Life of the World, God’s oikonomia is compared to a song, with our activity in each sphere of creation harmonizing together even as it plays in its own distinct way and through its own “modes of operation” — whether in family, business, education, or elsewhere. God has given us stewardship as a gift, granting the responsibility to manage his house and the availability to partner with the divine in that remarkable task.

C.S. Lewis points to this reality in The Magician’s Nephew, where he writes at length about the origins of Narnia and the creative call of humankind. (more…)

In Cuba, taxi drivers earn far more than doctors, raking in more money in one day than a doctor will make in an entire month.

The reason? Unlike most of the Cuban economy, taxi licenses are privately held and wages are not set by the state.

Johnny Harris explains:

Although Cuba offers few opportunities for private enterprise — outside of its sprawling black market, that is — the number of self-employed workers has slowly grown in recent years. Seven years after Raul Castro took over, 20% of the economy is now private.  (more…)