Posts tagged with: free markets

80s fashionI grew up in a very small town. Our fashion purchases were limited to the dry goods store (yes, it still went by that name) which carried things like Buster Brown shoes and sensible sweaters, or the grain elevator, where you could buy durable overalls for farm work.

As someone who eagerly awaited Seventeen magazine every month and witnessed the birth of MTV, you can imagine my fashion dilemma. The closest mall was 70 miles away. I needed Calvin Klein jeans, Candies heels and Esprit tops like, now.

Steven Quartz, a philosopher and neuroscientist at Caltech, along with Anette Asp, a political scientist and neuromarketer, feel for me. In The Atlantic, Bourree Lam talked with the two about the connection between “cool” and capitalism. Quartz and Asp, believe, in as sense, that capitalism created “cool.” First, though, Quartz says there are four myths linked to capitalism (or what some would call “consumerism”) that their research shows to be false:

First, that it doesn’t make us happy. Second, that it relies on instilling false needs in us because it’s contrary to our real nature. Third, that it erodes public life.  Fourth, that it’s primarily about “stuff.”

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On this week’s edition of Radio Free Acton, Burt and Anita Folsom discuss their latest book, Uncle Sam Can’t Count. We examine whether the government has a good track record in subsidizing industry and innovation, and look at some of the unforeseen consequences of subsidies in society. You can listen via the audio player below, and then be sure to check out the video of Burt’s Acton Lecture Series address as well.

jane marcetJane Marcet is remembered most often for her scientific work in chemistry. Born in London in 1769, she was well-educated, and shared a passion for learning with her father. When she married Alexander Marcet, a physician, she would proof-read his work and eventually decided to publish her own thoughts.

In a series of pamphlets entitled, “Conversations,” Marcet wrote on chemistry, botany, religion, and economics. She was a member of the London Political Economy Club, founded by James Mill.

In the early 19th century there were no academic societies or professional associations for economists. The Political Economy Club was a way to establish a scientific community, test ideas, and provide peer review for their work.

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Isabel Paterson

Isabel Paterson

“If there were just one gift you could choose, but nothing barred, what would it be? We wish you then your own wish: you name it. Our is liberty, now and forever.”

Isabel Paterson came to influence the likes of Ayn Rand and William F. Buckley, but her early life was rough and tumble. One of nine children, Paterson had only two years of formal education but loved to read. Her father had a difficult time making a living and was constantly uprooting his family in search of work. However, Paterson credited her early life for teaching her self-sufficiency and hard work.

As a teen, she moved to Calgary and began a career as a journalist. It was in Vancouver that she found her voice, writing about the changing role of women both in the family and in the world, and chiding those with servants for their snobbish attitudes towards those who worked for them. (more…)

Cuba-food-vendorRemember when you bought that first thing – a car, maybe – with your own first income? Remember the feeling of pride it gave you? You’d scrubbed pots and pans in the diner kitchen all summer. Or maybe you were the “go-to” babysitter for everyone in your church. You earned that money, and  you bought yourself something.

Now imagine living in a world where that could never happen. You are told by the government that they will care for your every need, no need to pay for anything. Everyone will get the same things, and all will be well. We call this place “Cuba,” and that system has not worked. (See also, Soviet Russia, Bay-area communes and Shakers.)

With the U.S. sanctions against the island nations now lifted, Cuba is beginning to see economic life again. The Communist government also recently changed laws about self-employment.

Joan Perez-Garcia has always had a job – the government guaranteed him one – but he’s never made much money. That is changing. (more…)

picedenAs reported by the Wall Street Journal, Iraq’s largest oil refinery for domestic use has been overtaken by the Islamic State of Iraq and Syria (ISIS), the radical jihadi terrorist group aiming to establish an Islamic caliphate in these two nations. As Iraq’s most lucrative resource is now siphoned off by a radical organization, the global oil market risks destabilization while financially empowering ISIS. Economic stability facilitates greater religious freedom – establishing an ISIS controlled government as detrimental to Iraq’s advances toward a stable and secular democratic state. The Christian population has been a primary target of this fundamentalist movement, with ISIS demanding they must convert to Islam, pay a fine, or face “death by the sword.” It was in here, in ancient Babylon, where political and economic institutions took stead; today these have been condemned while the Biblical story of Exodus is being retold with 50,000 Christians fleeing their homes.
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searching-blindfolded-manIn the latest edition of First Things, Acton’s Director of Research Sam Gregg discusses how adherence to Catholic social teaching does not require a limited economic viewpoint. In fact, such a limited vision, or blindness as Gregg states in the article’s title, is what holds back development in many parts of the world. (Please note that the full article is available by subscription only, but is excerpted here.)

Gregg recounts how the aggressive or “Tiger” economies of East Asia have resulted in positive changes, despite problems such as endemic corruption.

To be sure, not everything is sweetness and light in East Asia. Memories of the region’s severe financial meltdown in 1997 linger. More ominously, China’s mammoth banking system is a hopelessly run extension of its government. The same banks are heavily and rather incestuously invested in propping up thousands of underperforming Chinese state-owned enterprises. That’s a recipe for trouble. Corruption remains an endemic problem, most notably in China and India, which rank an unimpressive 96 and 134, respectively, in the World Bank’s 2014 Ease ofDoing BusinessIndex, while Singapore, Hong Kong, South Korea, Malaysia, and Thailand are ranked in the top twenty.

Nonetheless, the overall benefits of greater economic liberty in East Asia can’t be denied. In 2010, the Asian Development Bank reported that per capita GDP increased 6 percent each year in developing Asian countries between 1990 and 2008. Christians should especially consider how this growth has contributed to the reduction of poverty. The ADB estimated that between 1990 and 2005 approximately 850 million people escaped absolute poverty. That is an astonishing figure.

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[Part 1 is here.]

In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)

This morning, Acton Institute President Rev. Robert A. Sirico took some time away from his preparations for Acton University to speak with Jim Engster, host of The Jim Engster Show on WRKF radio in Baton Rouge, Louisiana, discussing how to address the issue of poverty in society, and the approach taken by Pope Francis and the church in general to that and other issues. They also discussed the problems with the ObamaCare model of health-care reform, among other issues. You can listen to the interview using the audio player below.

pope and cross

Pope Francis

Much has been said about Pope Francis’ views on economics (in fact, you can read Acton’s Special Feature on this here.) In The Wall Street Journal, Cardinal Timothy Dolan of New York, discusses how the media has skewed Francis’ remarks as endorsing redistribution and denouncing capitalism. Cardinal Dolan says this is unfortunate, given what the pope has actually said. While the pope is clear that we must be generous in all our social activity, he is not denouncing capitalism.

The church believes that prosperity and earthly blessings can be a good thing, gifts from God for our well-being and the common good. It is part of human nature to work and produce, and everyone has the natural right to economic initiative and to enjoy the fruits of their labors. But abundance is for the benefit of all people.

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