Posts tagged with: Forbes

Repurposed library card catalog

Repurposed library card catalog

I am not an economist. Truth be told, I only took one class in economics as an undergrad. However, I’ve learned a lot in the past few years, and one of the things I’ve learned is that most people don’t understand economics.

Pascal-Emmanuel Gobry knows this as well, and explains it far better than I could. In today’s Forbes, Gobry breaks down the understanding of economics into two broad camps: the “productivist” view and the “creativist.” First, the productivist:

Violently compressed, the productivist view of the economy holds that an economy works because it gives people stuff to do and stuff to buy. The reason why an economy which hums along hums along is because it produces enough stuff and people have enough money to buy that stuff so that people buy stuff and that gives jobs to the people who produce stuff, and in turn the stuff that is produced makes people want to buy them. To the productivists, the key thing is to keep the machine running and, hopefully, make it run faster, and more efficiently. But, fundamentally, what makes the economy run is this consumerist dynamic.

This, Gobry says, is the way most people – even economists – understand economics. It’s right in the short-term, but flawed. This viewpoint holds that economics is merely an endless cycle of buying and selling. As long as there is products are made, bought and sold, everything should be okay. (more…)

bandj missionHobby Lobby and Conestoga Wood Specialties are two companies with consciences. It is that sense of morality that has put both those companies before the Supreme Court right now. These companies, in accordance to their understanding of right and wrong, do not want to be forced (by government mandate) to pay for employees’ birth control and abortions.

Should the government have a say in a company’s conscience?

Ben & Jerry’s, the Vermont-based ice cream makers, have a conscience. Their mission has three parts: product, economic and social. Their social mission reads:

Our Social Mission compels us to use our Company in innovative ways to make the world a better place. To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally and internationally.

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Philosopher and theologian, Michael Novak recently delivered a speech at the Catholic University of America on the vocation of business and Forbes published the transcript. Novak argues that “capitalism is lifting the world out of poverty.” As many Asian and African economies shift from socialist to capitalist, they are seeing enormous economic growth, and small businesses are the force behind these economic gains:

Even in developed nations, most jobs are found in small business. In Italy, over 80 percent of the working population works in small businesses. In the U.S., the proportion is just about 50 percent, but some 65 percent of new employment is in small businesses.

During the great economic expansion of 1981-1989, the U.S. added to its economy the equivalent of the whole economic activity of West Germany at that time. Sixteen million new jobs were created in the U.S., the vast number of them in small businesses. Startups peaked as new businesses came into being at a rate of 13 percent (as a portion of all businesses) – an all-time high. Much the same happened under Clinton in 1993-2001, but even better – 23 million new jobs were created.

In the creation of small businesses, four factors are necessary. First, ease and low cost of incorporation; second, access to inexpensive credit; third, institutions of instruction and technical help (such as the system of local credit unions in the U.S.), and the steady assistance of the extension services of the A&M universities; and, fourth, throughout the population habits of creativity, enterprise, and skills such as bookkeeping and the organization of work. Economic development is propelled, as John Paul II said, by know-how, technology, and skill (Centesimus Annus 32). Therein, perhaps, lie the greatest entry-points for Americans and others who wish to help poor nations by proffering assistance in economic development from the bottom up. (more…)

Forbes contributor Jerry Bowyer recently interviewed Fr. Robert Sirico about PovertyCure and charity. Bower has split his interview into several parts and you can read the previous post here. In this section, their discussion focuses on “Bad Almsgiving:”

Jerry: “Charity can be selfish, can’t it?”

Fr. Sirico: “Yeah, it can be very self-indulgent.”

Jerry: “Let’s say ‘philanthropy’. I mean, genuine charity is a Christian virtue, but the philanthropy industry can be selfishly structured and selfishly supported.”

Fr. Sirico: “Well, what we look at in PovertyCure in one of the episodes is all of the different elements (especially in international grants and aid) — the NGOs that are involved in the process; we even look at the celebrities and how this comes up every few years where people are saying, “Help us, let’s do this food for Africa,” or the U.N.’s effort to tax all the nations 1% of their GDP, the Millennium Goals project. All of these different things that come up every few years that are part of this whole poverty industry, and how dangerous that is because it distorts all of the incentives and removes the centerpiece of the ladder for the poor to actually climb up out of poverty, because it removes the profit incentive for people to come and invest and train people in a workforce that’s ultimately productive.”

Jerry: “There’s a quote also in that section of PovertyCure, from Sir Bob Geldof: “We need to do something, even if it doesn’t work or help.”” (more…)

sebelius comicAvik Roy of Forbes has never been what you’d call a fan of Obamacare.  Now, however, he’s calling the mandated insurance program “lawless” and “unconstitutional.” Why?

The White House—having canceled Americans’ old health plans, and having botched the system for enrolling people in new ones—knows that millions of Americans will enter the new year without health coverage. So instead of actually fixing the problem, the administration is retroactively attempting to force insurers to hand out free health care—at a loss—to those whom the White House has rendered uninsured. If Obamacare wasn’t a government takeover of the health insurance industry, then what is it now?

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Rate-map-3-27-40-67Forbes has just released its 49-state analysis of Obamacare and the cost of insurance premiums. The findings?

In the average state, Obamacare will increase underlying premiums by 41 percent. As we have long expected, the steepest hikes will be imposed on the healthy, the young, and the male. And Obamacare’s taxpayer-funded subsidies will primarily benefit those nearing retirement—people who, unlike the young, have had their whole lives to save for their health-care needs.

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Just like this poor couple trying to buy a bed, we are finding out that Obamacare is a gigantic debacle, but “otherwise perfectly all right.” It’s health care, done by Monty Python’s Flying Circus. Look at the facts:

Blog author: ehilton
Monday, September 9, 2013
By

Crowded emergency room waiting area.The Obama Administration is counting down the days and rounding up “navigators” to get Obamacare off the ground. (Those navigators, by the way, will get $58 for each person they sign up, on top of their hourly pay.) The big question: Is Obamacare going to work? Will it deliver better health to Americans? There are a lot of skeptics, including Forbes’ Paul Howard. Howard’s concern is that Obamacare is using mid-20th century assumptions about health and insurance in a 21st century world.

Washington’s view of health care remains deeply entrenched in mid-century assumptions about health and illness.  Health care via industrial policy makes sense if illness is an Act of God to which all are equally vulnerable and a known quantity of health care can be delivered to everyone at a fixed price.   If these assumptions are true, the largest payer – the government – can set the rules of the road, from which all (or almost all) benefit.

That was a reasonable picture of medicine well into the 20th century…when infectious diseases dominated U.S. deaths.  But by 1950, heart disease and cancer had displaced infections as the nation’s most potent killers.  (“Diseases of early infancy” was still the fourth-leading cause of death in 1950. By 2010, they had dropped off the table entirely.)

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Alejandro Chafuen, president and chief executive officer of the Atlas Economic Research Foundation and board member of the Acton Institute, recently wrote a piece for Forbes.com discussing youth unemployment in the United States. According to the latest report, U.S. youth unemployment is at 16.2 percent which is more than double the adult unemployment rate. The unemployment rate for youth in Europe is currently at 24 percent. Chafuen asks, “Can we learn from the European experience?”

Using data compiled by the economic freedom indices of the Fraser Institute in Canada, and the Heritage Foundation, in the United States, we recently looked at how economic freedom, labor regulations, social spending, and regulatory climate, correlated with youth unemployment. Against our preconceptions, at least as shown with our simple static analysis, there were no convincing results.  I will spare the reader the statistical jargon and graphs and focus on apparent contradictions. (more…)

Alejandro Chafuen, board member of the Acton Institute and a contributor to Forbes.com, has recently written an op/ed asking, “Will think tanks become the universities of the 21st century?” He says that “think tanks and the academy in all likelihood, were united at birth.” and that “Massive Online Open Courses, or MOOCs, are affecting universities as few other developments in the history of education. [He] would not be surprised if taking advantage of this technology some of the major think tanks, especially those with outstanding scholars on their staff, will soon develop into small boutique universities.” Chafuen also lists several U.S. think tanks that are working on university type programs, including Acton University:

  • The Ludwig von Mises Institute, in Auburn, Alabama, has been hosting their Mises University since 1986.  The one week course focuses on Austrian economics.
  • Cato Institute has its Cato University, usually taking place at the end of July.
  • A recent entrant to this market, the Acton University, organized by the Acton Institute, Grand Rapids, Michigan.  Last year it attracted close to 800 students and professors from approximately 80 countries.   It is the most international free society educational program in history.
  • The Atlas Network hosts a Think Tank MBA course for talented intellectual entrepreneurs, as well as a “leadership academy”  as an online course to help enhance think tank talent.

He concludes with this thought:

The new global scene and the new technologies are changing the optimum size of educational institutions.   The lessons from Plato’s Academy, which took place in a garden grove near Athens, had an enormous impact on civilization.  The evolving scene in higher education and the growth of think tanks will lead to new educational offerings that will have a major impact on the quality and quantity of policy studies and public policy education.

Unfortunately registration for Acton University is closed, but you can check out AU Online.  The foundational courses are free!