Wilhelm Röpke is one of the most important 20th century economists that almost no Americans know anything about. Fortunately, that may soon change as Röpke’s classic work on economics, A Humane Economy, is being republished by ISI Books with an introduction by Samuel Gregg, director of research at the Acton Institute.
On January 14, as Brad Chacos so perfectly put it for PC World, “a Washington appeals court ruled that the FCC’s net neutrality rules are invalid in an 81-page document that included talk about cat videos on YouTube.” Reactions have been varied. Joe Carter recently surveyed various arguments in his latest explainer. For my part, I recommend the German, ordoliberal economist Walter Eucken as a guide for evaluating net neutrality, which as Joe Carter put it, “[a]t its simplest … is the idea that all Internet traffic should be treated equally and that every website … should all be treated the same when it comes to giving users the bandwidth to reach the internet-connected services they prefer.” (more…)
Back in October, I was a guest on the radio show World Have Your Say on BBC World Service. The occasion was the suspension by the Vatican of the Bishop of Limburg, Germany, Franz-Peter Tebartz-van-Elst, known as the “bishop of bling.” The bishop had reportedly recently spent 31 million euros (roughly $41 million) for the renovation of the historic building that served as his residence, inciting his suspension and a Vatican investigation into these expenditures.
Using this as a springboard, the subject of the BBC discussion was “Should Religious Leaders Live a Modest Life?”
Today, Tim Roberts of the National Catholic Reporter records a similar, but perhaps more ambiguous, case with regards to the Camden Bishop Dennis Sullivan:
Camden Bishop Dennis Sullivan has purchased a new residence, an historic mansion that once served as the home of the president of Rowan University.
The New Jersey diocese purchased the 7,000 square foot home with eight bedrooms and six bathrooms for $500,000. The residence will provide Sullivan with more room for entertaining dignitaries, hosting donors and for work space, according to Peter Feuerherd, diocesan spokesman.
He said the bishop will live there “with at least two other priests, maybe more.”
The home, built in 1908, has been on the market for about two years. According to a report in the Camden Courier Post newspaper, the home was purchased in 2000 for Dr. Donald Farish, then president of Rowan University. Under the university’s ownership, the house underwent about $700,000 in renovations.
Some of the amenities include an in-ground pool, three fireplaces, a library and a five-car garage. (more…)
I had the opportunity today to take part in a discussion on the BBC program World Have Your Say, discussing the recent suspension by the Vatican of the Bishop of Limbu, Germany, Franz-Peter Tebartz-van-Elst, known in the German press as the “bishop of bling.” He is under investigation regarding expenditures of 31 million euros (roughly $41 million) for the renovation of the historic building that served, in part, as his residence. This story (which can be read here) served as a springboard for the broader question: Should religious leaders live a modest life?
One point I wish had been examined a little more (though it is briefly mentioned at the end) is that of redemption. Much was said of how one needs to handle one’s wealth well, but little was said of what hope there may be for someone who has misused their wealth or even who may simply be overly attached to it. While Christ warned, “It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God,” he continues to condition this statement by saying, “With men it is impossible, but not with God; for with God all things are possible” (Mark 10:25, 27). As St. Paul writes, “For you know the grace of our Lord Jesus Christ, that though He was rich, yet for your sakes He became poor, that you through His poverty might become rich” (2 Corinthians 8:9) — rich in holiness and virtue, heavenly treasures that do not wear out.
Listen to the interview at BBC World Service here.
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…)
German Finance Minister Wolfgang Schaeuble is a frustrated man. With unemployment rates in Germany hovering at around 8 percent, and Greece and Spain at almost 60 percent, he believes the EU is on the brink of “revolution.” His answer is not to scrap the welfare model however; he wants to preserve it.
While Germany insists on the importance of budget consolidation, Schaeuble spoke of the need to preserve Europe’s welfare model.
If U.S. welfare standards were introduced in Europe, “we would have revolution, not tomorrow, but on the very same day,” Schaeuble told a conference in Paris.
Not everyone agrees. Italian Labour minister Enrico Giovannini says European youth are being asked to put their lives on hold, and that this is “unacceptable.” Werner Hoyer, head the European Investment Bank, acknowledged that there is no plan at this point to direct the spiraling downturn of the EU economy. There is, instead, a country-by-country “patchwork” approach. For instance, Greece is attempting to focus on job training and entrepreneurship for 350,000 young people, and France is working on a similar plan within its own borders. (more…)
A recent survey contains one of the most disheartening statistics I’ve ever read: In eastern Germany the survey was unable to find a single person under the age of 28 who claimed they were “certain God exists.”
The survey was taken in 2008, which means that not a single person born after the fall of the Berlin Wall could be found who expressed no doubt about the reality of their Creator. In contrast, 17.8 of young people in western Germany are certain about God (which is still low compared to the U.S. (53.8 percent) or even Russia (28.2 percent).
In the Guardian, Peter Thompson says that some observers believe East German atheism is a form of continuing political and regional identification:
While the economy of America is influenced by old British economists like Smith and Keynes, Germans are still being influenced by an even older, homegrown economist: Martin Luther.
Even today Germany, though religiously diverse and politically secular, defines itself and its mission through the writings and actions of the 16th century reformer, who left a succinct definition of Lutheran society in his treatise “The Freedom of a Christian,” which he summarized in two sentences: “A Christian is a perfectly free Lord of all, subject to none, and a Christian is a perfectly dutiful servant of all.”
Consider Luther’s view on charity and the poor. He made the care of the poor an organized, civic obligation by proposing that a common chest be put in every German town; rather than skimp along with the traditional practice of almsgiving to the needy and deserving native poor, Luther proposed that they receive grants, or loans, from the chest. Each recipient would pledge to repay the borrowed amount after a timely recovery and return to self-sufficiency, thereby taking responsibility for both his neighbors and himself. This was love of one’s neighbor through shared civic responsibility, what the Lutherans still call “faith begetting charity.”
How little has changed in 500 years. The German chancellor, Angela Merkel, a born-and-baptized daughter of an East German Lutheran pastor, clearly believes the age-old moral virtues and remedies are the best medicine for the euro crisis. She has no desire to press a secular ideology, let alone an institutional religious faith, on her country, but her politics draws unmistakably from an austere and self-sacrificing, yet charitable and fair, Protestantism.
(Via: Gene Veith)
In what was dubbed the “Bailout Game” of the 2012 European Championships, the German national team defeated their Greek counterparts, the 4-2 score only slightly representative of the match’s one-sidedness. The adroit, disciplined Deutscher Fuβball-Bund owned 64% of the ball, prompting at least one economic retainment joke and the asking of the question: What does this game mean for Europe?
Not much, according toIra Broudway of Bloomberg Businessweek, who last week issued a preemptive “calm down” to the throngs of journalists, broadcasters and politically-aware fans itching to work their witticisms into the soccer-as-political-grudge-match conversation. Chill out, he says; thinking soccer could have any say in the realm of global affairs is “mass lunacy.” He’s right, the German’s systematic defeat of the Greece’s beloved Blue-White’s won’t spur any continental economic legislation or seal Greek’s fiscal fate. But maybe Broudway’s treatment of the match’s relevance is a tad too dismissive.
To deny the social influence of sports, especially in soccer-crazed Europe, is to forget about a history of cultural milestones. Less than two weeks before Germany and Greece met on the pitch, international tensions between Poland and Russia, together with a poorly-scheduled game-time resulted in violent riots on the streets of Warsaw. For a brighter recollection, think only of the Miracle on Ice, the 1995 Rugby World Cup or you name that sporting-event-turned-movie. For better and for worse, athletics have an undeniable ability to inspire and incite.
But what’s behind this potential? Social scientist Arthur Brooks, president of the American Enterprise Institute, has written and spoken widely on the topic of “earned happiness.” It’s difficult to think of a realm that encourages earned happiness more than athletics. Sports pit conflicting dreams of teams, cities, nations against each other and promise fulfillment to the winner. Done fairly, competition even maximizes potential for all involved parties.
Imagine the consequence of a Greek victory. No, a victory wouldn’t have paid back billions of euros of debt, but it might have reaffirmed the possibility of achievement for a people decimated by a burdensome fiscal situation. It may have at least modeled the idea of earned happiness for a society that today knows more about learned dependency.
Who knows, maybe that dream still exists for one of Europe’s debt-ridden nations. Germany’s next opponent? Italy. Squaring off on the other side of the bracket? Portugal and Spain. Soccer fans and the globally-concerned can at least speculate about the cultural implications of the coming week of soccer, and what it has to say to Europe’s present economic context. Vamos!
In short, the EU’s transactions-tax scheme reflects a long-standing desire to “throw sand” in the wheels of financial globalization. Its origins lie in what’s called the “Tobin tax,” named after the American economist James Tobin, who argued in 1972 for the levying of a 0.5 percent tax on all spot-currency conversions. The point, for Tobin, was to discourage “speculators” who “invest their money in foreign exchange on a very short-term basis.”
Unfortunately for its advocates, there’s considerable evidence that Tobin-like taxes on financial transactions don’t reduce volatility. In the midst of financial crises, long-term and short-term investors behave in very much the same way — they get out, and transaction taxes don’t prevent them from abandoning ship. Greece, for example, currently applies a transaction tax to the sale of Greek-listed shares. That, however, isn’t doing much to prevent the present exodus of capital from Greece.
Taking the broader view, it’s hard to avoid concluding this latest EU harmonization boondoggle is about two things. First, it’s a way for EU officials and governments to appear to be punishing European financial institutions for their contributions to Europe’s economic crisis. Second, it reflects the general European failure to come to grips with some of the deeper problems contributing to Europe’s debt crisis.
Read “Financial Fiddling while the Euro Burns” by Samuel Gregg on NRO.