Posts tagged with: globalization

In a new article at The Stream, Acton Director of Research Samuel Gregg offers good reasons why a move toward economic nationalism is not in the best interest of America.  He starts with this:

Whatever the motivations for such policies, their costs vastly outweigh their benefits. In the first place, protectionism discourages American businesses and workers from focusing on producing those goods and services where they enjoy a comparative advantage vis-à-vis other nations. Not only does this undermine productivity, efficiency, and international competitiveness of American businesses. It also encourages American workers to enter industries that, no matter how much protection they enjoy, won’t be able to compete in the long term.

Gregg continues to give reasons against economic nationalist policies throughout his article, but one reason that seems to be quite relevant at the time is crony capitalism.  Gregg says this:

Yet another problem with economic nationalism is that it encourages a growing problem in American economic life: crony capitalism.

Giving certain American businesses subsidies or lumbering foreign products with tariffs may seem like economic questions, but in practice they are ultimately political. Such policies encourage companies prefer to seek profits by lobbying legislators and bureaucrats rather than serving customers and creating value.

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The following article is the Acton Institute’s English translation from the Italian “Il Papa e la condanna dei soldi. Parla Padre Robert Sirico” written by  Matteo Matzuzzi and published in the Rome-based daily Il Foglio on November 8.  Readers should note that there is no official English translation of Pope Francis’ November 5 address to leaders of lay movements gathering inside the Vatican. The original speech in Italian, Spanish and Portuguese can be found here.


“It certainly would be absurd to criminalize money if one’s sincere concern is the well-being of the poor. Lamenting the struggle of the poor is not the end goal of moral compassion. Ameliorating their concern is. And at least at the material level, this requires the production of wealth,” said Rev. Robert A. Sirico, president of the American think tank, the Acton Institute for the Study of Religion and Liberty, which aims to promote a free, virtuous and humane society.

Rev. Sirico shared his views with the Italian daily ll Foglio following the Pope’s long speech delivered last Saturday before an audience of charismatic lay movement leaders who had come to the Vatican for their third world gathering. During the audience, Pope Francis relaunched his accusation that money is “an idol that rules instead of serves, which tyrannizes and terrorizes humanity.”

Francis

Pope Francis regularly speaks to leaders of cultural and social change during specially arranged private audiences inside the Vatican.

It is money, continued the Holy Father, “that rules with the whip of fear, inequality, economic, social, cultural and military violence. [It] generates ever more violence in a seemingly unending downward spiral. There is a basic [form of] terrorism stemming from the global control of money on earth and which threatens all of humanity.”

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Today at The Stream I provide some analysis of Donald Trump’s speech earlier this week at the Detroit Economic Club. As I conclude, “The trouble for Trump’s promised future lies in the impossibility of reclaiming a bygone era.”

In Trump’s campaign there is a mix of both nostalgia and optimism, which bookend serious critiques of America’s more recent past and the legacy of his political opponents in particular. This approach is appealing to an important, and often overlooked segment of the American public. These are the new voters who Trump has promised to bring to the GOP, and who have sometimes embraced his campaign with a kind of religious fervor.

But the broader appeal of this vision is dubious. Trump’s larger economic vision certainly does bear some resemblance to Bernie Sanders’ agenda, as they emphasize nationalism, interventionist trade policy, and a revitalization of traditional manufacturing and labor sectors. It remains to be seen how many of Sanders’ supporters will migrate to the similarly nationalist approach of Donald Trump.

The real challenge for Trump is to express this hopeful vision about the future while simultaneously hearkening back to an idyllic past. If Clinton is “the candidate of the past,” it is the recent past, the last few decades of the Obama administration and bad trade deals like NAFTA. Trump, meanwhile, is both the candidate of the future as well as of the more remote, perhaps even mythic past, in which America was first: in jobs, manufacturing, global influence, leadership, and military strength.

As Trump put it in his Detroit speech, “Americanism, not globalism, will be our new credo.” Joseph Sunde pointed out the salient Christian critique of such a credo recently, and I also recommend Abraham Kuyper’s treatise Twofold Fatherland for a proper and penultimate valuation of the nation-state and national identity relative to Christian citizenship in God’s kingdom. Twofold Fatherland is included in the forthcoming On the Church volume of the Abraham Kuyper Collected Works in Public Theology.
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Photo courtesy of Wikimedia

In a recent interview with MercatorNet, Samuel Gregg explains why the integration of markets is not in itself a bad thing.  Gregg starts out by explaining why Brexit does not contradict economic globalization, but why it is actually beneficial to the global economy.  Hey says:

But Brexit is also quite compatible with economic globalization. Economic globalization is rendering trade blocs such as the EU increasingly irrelevant. Britain now can choose to trade freely with whoever it wants, instead of waiting for every single member of the EU to agree.

The interview continues to talk about Gregg’s 2013 book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future and what exactly is America trying to avoid by not becoming Europe.  He explains: (more…)

virtual-choir-whitacre-water-nightThe rise of globalization and the expansion of trade are continuously decried for their disruptive effects, particularly as they apply to “authentic community.”

Indeed, our strides in global connectedness have often come at a local cost, with the small and familiar being routinely replaced by the big and blurry, the intimate with the superficial, and so on. The shift is real and widespread, but it needn’t be the framework of the future.

Disruption is sure to continue as collaboration expands and innovation accelerates around the globe. But while we’re right to be cautious of the merits of such change, we mustn’t forget the opportunities it presents, not just for our economy or personal wellbeing, but for community itself.

Examples of these fruits abound and surround us, from trade to technology to niche hobbies to global missions and so forth, but I was reminded of it recently while watching a “virtual choir” performance by Eric Whitacre, the famous composer and conductor.

Known best for his choral works, Whitacre continues to leverage the technological tools of globalization to gather singers from around the world, each submitting an individual video to contribute to a massive global choir. (more…)

image1We live, work, and consume within an increasingly grand, globalized economy. Yet standing amidst its many fruits and blessings, we move about our lives giving little thought to why we’re working, who we’re serving, and how exactly our needs are being met. Adam Smith’s “invisible hand” feels more invisible than ever.

In response to our newfound economic order, big and blurry as it is, many have aimed to pave paths toward more “communitarian” ends, epitomized by recent waves of “localist consumerism,” “artisanal shops,” and “social entrepreneurship.” Such efforts can be tremendously fruitful, and insofar as they meet real human needs, we should heed their resistance to blind marches toward “progress.”

I only wish that such movements would appreciate the broader range of possible solutions. The slow and local is all well and good, but something as mundane and mainstream as a local McDonald’s can serve community needs just as well as the trendy mom-and-pops of the future. The big and global is not necessarily the enemy of the small and local.

As Chris Arnade demonstrates through a series of stories, for many low- and middle-income areas, “McDonald’s have become de-facto community centers and reflections of the surrounding neighborhood,” offering a hub for the very sort of social fabric-weaving that crunchy communitarians crave. (Note: I was an employee and then shift manager of a McDonald’s during my teenage years.)

One can be resistant to the nutritional risks of the food — just as I remain resistant to the budgetary risks of overpriced “artisanal donuts” — and still perceive the value that such enterprises bring to local communities everywhere: economic, social, and (dare I say) spiritual. (more…)

trade-globalization-exchange-collaborationIt’s become rather predictable to hear progressives promote protectionist rhetoric on trade and globalization. What’s surprising is when it spills from the lips of the leading Republican candidate.

Donald Trump has made opposition to free trade a hallmark of his campaign, a hole that his competitors have been slow to exploit. In the most recent CNN debate, Ted Cruz, Marco Rubio, and John Kasich each echoed their own agreement in varying degrees, voicing slight critiques on tariffs but mostly affirming Trump’s ambiguous platitudes about trade that is “free but fair.”

Why so much silence?

Unfortunately, as Tim Carney details at length, voters are biting and swallowing what Trump is peddling, and conservatives are struggling to find solutions that sell. “Conservatives may scoff at this Made in America mindset as economically illiterate,” he writes. “But politically, it seems to be a winner.” (more…)