Posts tagged with: government

People do not love markets,” says Pascal Boyer of the International Cognition & Culture Institute, “there is a lot of evidence for that.” Sadly, Boyer is right and I suspect he’s right about the cause too: People do not like markets because people seem not to understand much about market economics.

We don’t fully understand this antipathy, Boyer notes, because there hasn’t been much research on folk-economics, a study of “what makes people’s economic modules tick.” But I think Boyer has identified one of the key reasons why people tend to prefer government interventions to market-driven solutions:

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President Obama’s speech last week in which he asserted to businesspeople, “You didn’t build that,” has been getting some pretty harsh and some pretty hilarious responses.
In this week’s Acton Commentary, “It Takes a Village to Raise a Business,” I caution against responses that play into a simple individualist/collectivist dichotomy that underlays the president’s message:

We all know at some level that we didn’t get where we are on our own, and that we have an ongoing responsibility and dependence on others for our continuing enjoyment of the goods of human existence. Christians realize too that our independence and freedom is ultimately limited and dependent not simply on other people but on the grace of God.

So to President Obama’s problematic construal of the structure of society (essentially consisting of the individual and the helping hand of government), critics shouldn’t respond simply with the vehement assertion of naked individualism. Instead, we need to articulate a more balanced and accurate perspective, one that properly relates “independence and mutuality, individuality and community.”

One such response from Hunter Baker is here, and is worth checking out.

David Theroux of the Independent Institute concludes his two-part article on “secular theocracy” here (the full article can be read here). In this second part, Theroux observes that “C.S. Lewis understood that natural law applies to all human behavior including government officials.”

Indeed, it is hard to see how the rule of law can function apart from a conception of the natural law. Now as Theroux shows, not just any conception of the natural law will do. It has to be one rooted in the divine lawgiver to those created in his image, with the implications for dignity and basic rights entailed by such.

Otherwise you might have a “natural law” that empowers the strong over the weak on the basis of their ability to dominate, or their intelligence, or their “fitness” to rule. See, for instance, Sam Gregg’s explanation of how Plato and Aristotle justified slavery.

Blog author: rnothstine
posted by on Wednesday, December 14, 2011

In terms of the blogosphere, I’m sure this polling data from Gallup published two days ago showing that fear of big government dwarfs fear of big business and big labor is ancient history. I only want to offer a few observations.

At one point in our history, I think a lot of Americans or even a majority of Americans looked at the federal government as a vehicle for fairness, progress, and justice. Certainly, the federal government has done quite a few things well over the years. However, as politics has become even more partisan and divisive, and more and more power has been centralized into the Washington beltway, these beliefs have eroded dramatically. In my August commentary “The Folly of More Centralized Power” I noted,

Washington’s inability to balance budgets and restore fiscal responsibility, a problem magnified by a crippled economy, has also bankrupted the public trust. Citizens who take summer vacations to the nation’s capital can easily connect the dots as they observe a Washington Beltway that is booming with jobs and opportunity as tax dollars siphon into the region, even while their own communities are ravaged by job loss and businesses struggle under regulatory burdens.

I also said in the piece,

People feel disconnected from their federal government not only because they are separated geographically, culturally, ideologically, but also because they believe that their access to the political process has been severed. They doubt whether their representatives actually have the best interests of the nation in mind.

Considering all the continued deficit spending, continued government growth, you might expect that some real progress would have been made to start digging us out of this massive hole. But more and more Americans are realizing that the federal government does not have their best interest at heart. It will be interesting to see how the disconnect between the governing and federal bureaucratic class continues to morph as even more and more money and capital is needed to preserve and protect the power structure. A lot of class warfare cards of course will be played and both political parties will do what is best to preserve their power.

When I think about liberals and the war on poverty and mobilizing the government for good, two famous photographs come to mind. I remember when LBJ visited Eastern Kentucky to declare a war on poverty and of course the famous photo of Robert F. Kennedy visiting the impoverished Mississippi Delta. But even liberals or the political left must look out on the political landscape, when well meaning and historic poverty programs were implemented generations ago by well meaning leaders who captured the nation’s conscious, and they must wonder what went wrong? With the political climate the way it is now, even the good intentions are gone and the rhetoric is so shortsighted and rings hollow.

Over at Patheos’ Black, White and Gray blog, where a group of Christian sociologists “share our observations and research and reflect on its meaning for Christian faith and practice,” Margarita A. Mooney writes about “Faith-Based Social Services: An Essential Part of American Civil Society.”

Many of the points she raises echo the principles of effective compassion that have long animated the Acton Institute’s engagement with welfare reform and social service. Be sure to check out the Hope Award program sponsored by WORLD magazine and the American Bible Society, which carries on this legacy of emphasizing effective compassion carried out by private faith-based organizations.

Mooney points out that long before the last few decades of welfare reform and faith-based initiatives at the federal level, faith-based social services were alive and vigorously engaged in charitable activity. As Mooney writes of the 1996 and 2002 federal efforts, “most research shows that these initiatives did little to change the size or focus on faith-based social services. Why? Because most of these faith-based social services existed long before recent federal programs, and because some of what religious organizations do best in social services focuses on deep personal transformations, goals best pursued without government support.”

She quotes Robert Wuthnow on the faith-based social service organization’s vision of the human person. For religious organizations, the human person is more than just a material being with material needs. As Marvin Olasky notes, this older model knew that “true philanthropy must take into account spiritual as well as physical needs.” On this, writes Wuthnow,

…the research that has been conducted among faith-based organizations, although quite sparse, suggests that it is probably their ability to forge encompassing whole-person, personally transforming relationships with clients that accounts for any special success they may have.

Mooney goes on to examine some compelling particular instances. All of this leads to the key question: “Aren’t there ways to allow government support for large faith-based organizations that neither lead to government support for proselytizing nor impede religious organizations from carrying out their missions as they define it?”

On this question, be sure to check out the review essay by David A. Wagner on Lew Daly’s book, God’s Economy: Faith-Based Initiatives and the Caring State, which appears in the latest issue of the Journal of Markets & Morality, “A Liberal ‘Welfare Conservative’ Boldly Explains Why Nineteenth-Century Popes Are Relevant to Twenty-First-Century Welfare Reform.”

I can always find common ground with the Distributists I meet. We want to replace the government-corporate cronyism that characterizes so much of our current economic system. And we want our culture to raise up young people with the skills, virtues and freedom to accumulate productive capital and invest it in ways that promote human flourishing for themselves and others.

But then there’s the question of centralized political power in the economy. Sometimes when Distributism is described, you get the sense that Distributism and one of its leading early proponents, Hilaire Belloc, have always been committed to a largely grass roots, bottom-up strategy of change. But Belloc himself painted a different picture in An Essay on the Restoration of Property:

We must seek political and economic reforms which shall tend to distribute property more and more widely until the owners of sufficient Means of Production (land or capital or both) are numerous enough to determine the character of society…. The effort at restoring property will certainly fail if it is hampered by a superstition against the use of force as the handmaid of Justice. (P.29)

So when I have a conversation with Distributists, the first thing I like to clear up is what they mean by Distributism. Do they merely want people and companies to model best-Distributist practices voluntarily, so as to propagate Distributist ideas and behaviors in a free marketplace of ideas? Do they just want to get the federal government out of the job of picking winners and losers in the economy? Or do they also want to vote in politicians who will arrogate to the federal government expanded powers to seize and redistribute private property and keep it more evenly distributed?

Until those questions are cleared up, the opportunities for muddle and fog are just too great to bother wading in.

Hilaire Belloc, An Essay on the Restoration of Property, (Norfolk, Virginia: IHS Press, 2002).

Acton’s tireless director of research Samuel Gregg has a post up at NRO’s The Corner in reaction to yesterday’s bad poverty numbers (46.2 million Americans live below the poverty line now—2.6 million more than last year). Gregg is ultimately not surprised about the increase, because not only does the American welfare state produce long term dependence on governmental support, but the huge debt incurred by poverty programs tends to slow economic growth.

It is now surely clear that the trillions of dollars expended on welfare programs since the not-so-glorious days of the 1960s have not apparently made much of a dent in significantly changing the ratio of Americans in poverty.

In some instances, America’s welfare apparatus may have prevented some people (especially the elderly) from falling into abject poverty. There is, however, very little evidence that it has helped millions of people out of relative poverty. There is also plenty of data to indicate that many welfare programs have produced intergenerational dependency on the state—a point that even Bill Clinton seemed to have grasped by the mid-1990s.

Gregg then warns against the temptation to double down on government-as-the-answer, arguing that we don’t have the fiscal leeway to experiment as we did in the 1960s.

We need to keep these serious failures of America’s welfare state in mind because these new poverty numbers will almost certainly be used as an argument by some people of good will (as well as those whose motives are far less noble) to resist any reductions in welfare spending, despite America’s far-from-healthy debt and deficit situation. Yet the sheer size of government spending on entitlement programs (by far the biggest item in the federal government’s budget) makes cuts in these areas inescapable if—I repeat, if—our political masters are serious about wanting to balance the government’s books.

Indeed, such cuts are assuming an ever-increasing urgency in light of the studies which continue to appear indicating that crushing levels of public and government debt run the risk of significantly impeding growth. That’s worrying, not least because a slowdown in growth will hurt those in poverty far more than the wealthy. Strong growth rates are one of the most powerful antidotes to poverty – just ask anyone living in mainland China or India. More welfare spending is simply not the answer.

Full post here.

Last week I wrote a commentary titled the “The Folly of More Centralized Power,” making the case against ceding anymore power to Washington and returning back to the fundamental principles of federalism.

Rep. Amash (R-Mich.), a member of the freshmen class in Congress, made that case as well. Amash was asked about his Washington experience so far in an interview and declared,

When I was in the state government, I thought things were dysfunctional there in my opinion. Now I’ve discovered things in Congress are much worse than in state government and the state government runs fairly smoothly by comparison.

In speeches and townhalls, Rep. Amash has stated that the federal government has enumerated powers and it is not supposed to expand beyond that specific scope. I quoted the Virginia Constitution in my commentary. The line I cited was originally from the Virginia Declaration of Rights in 1776. It reads, “That no free government, or the blessings of liberty, can be preserved to any people but by a firm adherence to justice, moderation, temperance, frugality, and virtue and by frequent recurrence to fundamental principles.”

My contribution to today’s Acton News & Commentary. Sign up for the free weekly Acton email newsletter here.

Protect the Poor, Not Poverty Programs

By John Couretas

One of the disturbing aspects of the liberal/progressive faith campaign known as the Circle of Protection is that its organizers have such little regard – indeed are blind to — the innate freedom of the human person.

Their campaign, which has published “A Statement on Why We Need to Protect Programs for the Poor,” equates the welfare of the “least of these” in American society to the amount of assistance they receive from the government — a bizarre view from a community that trades in spiritual verities. Circle of Protection supporters see people locked into their circumstances, stratified into masses permanently in a one-down position, thrown into a class struggle where the life saving protection of “powerful lobbies” is nowhere to be found. And while they argue that budgets are moral documents, their metrics for this fiscal morality are all in dollars and cents.

Not only does the Circle of Protection group appear to be oblivious to the power of private charity and church-based outreach to the needy, but they seem to have no hope for the poor outside of bureaucratic remedies. This is a view of the human person not as a composite of flesh and spirit, but as a case number, a statistic and a passive victim of the daily challenges and troubles that life brings.

In response to the Circle of Protection campaign, another faith group has formed with a very different outlook on the budget and debt debates that will consume the political energy of the country in the months ahead. Christians for a Sustainable Economy (CASE) argue for policies that are focused less on protecting poverty programs and more on protecting the poor (I am a supporter). In a letter to President Obama, CASE wrote:

We need to protect the poor themselves. Indeed, sometimes we need to protect them from the very programs that ostensibly serve the poor, but actually demean the poor, undermine their family structures and trap them in poverty, dependency and despair for generations. Such programs are unwise, uncompassionate, and unjust.

This is what Fr. Peter-Michael Preble was getting at when he observed that “… the present government programs do nothing but enslave the poor of this country to the programs and do nothing to break the cycle of poverty in this country.” This is not, he added, an argument to eliminate all government assistance but rather for “a safety net and not a lifestyle.”

In discussing the relative merits of the Circle of Protection and the Christians for a Sustainable Economy campaign, Michael Gerson wrote that “the Circle’s approach is more urgent.” Arguing against “disproportionate sacrifices of the most vulnerable,” he asserted that “public spending on poverty and global health programs is a sliver of discretionary spending and essentially irrelevant to America’s long-term debt.”

It’s a big and growing “sliver.” According to a Heritage Foundation study of welfare spending, of the 70-odd means-tested programs run by the federal government, “almost all of them have received generous increases in their funding since President Obama took office.” The president’s 2011 budget will increase spending on welfare programs by 42 percent over President Bush’s last year in office. Analyst Katherine Bradley observed that “total spending on the welfare state (including state spending) will rise to $953 billion in 2011.”

Instead of more billions for failed poverty programs, CASE argues that “all Americans – especially the poor – are best served by sustainable economic policies for a free and flourishing society. When creativity and entrepreneurship are rewarded, the yield is an increase of productivity and generosity.” Underlying this is a belief that the human person is able to freely and creatively anticipate what life may bring, rather than wait around for a caseworker or a Washington lobbyist to intervene.

That freedom explains why some people, even in difficult economic times, can move up the income scale despite assertions that they are among the “most vulnerable.” A U.S. Treasury study showed that “nearly 58 percent of the households that were in the lowest income quintile (the lowest 20 percent) in 1996 moved to a higher income quintile by 2005. Similarly, nearly 50 percent of the households in the second-lowest quintile in 1996 moved to a higher income quintile by 2005.” In an analysis of income inequality and social mobility, economist Thomas Sowell wrote that there is a confusion “between what is happening to statistical categories over time and what is happening to flesh-and-blood individuals over time, as they move from one statistical category to another.”

Income mobility is debated endlessly by economists, but it is the existential reality for countless Americans who have ever strived for something better — or suffered a setback in their hopes. Yet the one sure thing that will stifle this mobility is an economy in decline, with job creation slowed, and encumbered by ever higher federal budget deficits and debt. And that’s what we’ll get more of if the Circle of Protection’s prescriptions for a “moral budget” hold sway.

When economic systems break down, as they are now unraveling in some European welfare states, those who will be hurt first and hardest will be the poor, the working family living from paycheck to paycheck, the pensioner – those operating at the margins. If we fail to come to grips with the reality of our potentially ruinous fiscal trajectory, we will all learn, as other countries are now learning, what “truly vulnerable” means.

Standard and Poor’s decision to downgrade the United States’ credit rating has everyone talking. Discussion has ranged from we shouldn’t take Standard and Poor’s decision seriously at all to this could be the beginning of the end for the United States if it doesn’t make immediate changes. In a roundup published by National Review Online, Samuel Gregg weighs in on how the credit downgrade should be understood:

There are many reasons to be cynical about ratings agencies. These are, after all, the same outfits that assured us collateralized-debt-obligation markets were doing fine just before they started imploding in 2007–2008. Their slowness in warning about the fading creditworthiness of corrupt entities such as Enron and government-sponsored enterprises such as Fannie Mae and Freddie Mac is a matter of record.

That said, Standard & Poor’s decision to downgrade America’s creditworthiness shouldn’t surprise us. It simply states in a pseudo-official kind of way what everyone — citizens, investors, politicians, and maybe even Paul Krugman — already knows: The failure of Washington’s neo-Keynesian policies combined with the long-term projections for entitlement-spending have lowered confidence in the U.S.’s ability to meet its fiscal obligations.

While the downgrade shouldn’t surprise anyone, Gregg notes that action needs to be taken in order for the United States to recover its credit rating. Such a change does not just consist of national fiscal policy or a balanced budget, but it also includes a transformation in attitude: Americans will need to adjust the expectations they have for their government.

Click here to read the article and those of other contributors to “Down on the Downgrade?” on NRO.