Posts tagged with: government

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.

Blog author: lglinzak
Tuesday, August 9, 2011

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.

Acton’s Director of Research Dr. Samuel Gregg has two new pieces today, in Public Discourse and The American Spectator.

The first is a response to Greg Forster’s “Taking Locke Seriously” on June 27 in First Things. In that article, Forster took issue with Gregg’s June 22 Public Discourse piece, “Social Contracts, Human Flourishing, and the Economy.” Gregg argues, in a July 29 response to Forster titled “John Locke and the Inadequacies of Social Contract Theory,” that Locke’s political thought is based in a false understanding of human nature, which any student must keep in mind. Locke’s unrealistic social compact theory, based as it is in a State of Nature myth, reveals his ignorance of man’s innate political drive, and thus his whole nature. Says Gregg,

Locke … has an inadequate grasp of the workings of intentionality, practical reason, and the will, and therefore of human freedom and human flourishing.

These insufficiencies might owe something to Locke’s metaphysics of the person, which essentially locates human identity in consciousness. As for Locke’s conception of the will, Locke specifies that “the will in truth signifies nothing but a power, or ability, to prefer or choose.” Taken together with his tendency to treat freedom as absence of constraint, these constitute a potent combination of dualism, voluntarism, and perhaps even nominalism.

Gregg’s other target is across the globe, but China’s leadership share the same nominalist confusion about human nature. What precisely they may think about human nature is not a matter of public record, but it’s a good bet they don’t agree with the Acton Institute. The Chinese government is having trouble controlling the economic freedom it has granted to citizens: it turns out morality and economics are connected, and now Chinese in free enterprise zones are turning to the Church for metaphysical answers Maoism can’t provide. That grounding is essential to a polity:

Back in 2006, the then-head of China’s religious affairs ministry, Ye Xiaowen, begrudgingly acknowledged the various Christian churches’ contributions to helping Chinese society cope with the effects of increasing wealth.

Beijing’s predicament, however, is that the same Christianity which provides people with a moral compass in rapidly changing societies also insists the state is not God and may not exercise religious authority over the Church. This position is especially pronounced in Catholicism. It receives doctrinal and canonical affirmation in Catholicism’s insistence upon the need for all Catholic bishops to be in full communion with St. Peter’s successors as Bishop of Rome. Among other things, this means Rome’s approval must be granted before ordination as a Catholic bishop is considered licit.

China is a living example of what starts to happen when the metaphysic of a people is deeply and swiftly uprooted. The political theory of John Locke threatens to encourage that same uprooting if it is not tempered with Christianity. Let us rejoice that even in China, the state does not seem to be able to quash man’s religious impulse.

Blog author: jmeszaros
Wednesday, July 20, 2011

John Boehner recently stated, in the debt-ceiling talks, that “We’re going to continue and renew our efforts for a smaller, less costly and more accountable government,” which most Americans agree with in principle.  However, citizens say that keeping benefits the same for the three big programs, Social Security, Medicare, and Medicaid, is more important than taking steps to reduce the budget deficit by a margin of 60 percent compared to 32 percent for Social Security, 61 compared to 31 percent for Medicare, and 58 compared to 37 percent for Medicaid.

So Americans purportedly want thriftier government, but still want benefits? What gives?  Part of the problem, according to James Kwak, is “the idea that there is one thing called ‘government’–and that you can measure it by looking at total spending–makes no sense.”

What Kwak means is that total expenditure is a misleading measure of the “size” of government. He presents this example:

The number of dollars collected and spent by the government doesn’t tell you how big the government is in any meaningful sense. Most government policies can be accomplished at least three different ways: spending, tax credits, and regulation. For example, let’s say we want to help low-income people afford rental housing. We can pay for housing vouchers; we can provide tax credits to developers to build affordable housing; or we can have a regulation saying that some percentage of new units must be affordably priced. The first increases the amount of cash flowing in and out of the government; the second decreases it; and the third leaves it the same. Yet all increase government’s impact on society.”

So increased spending (or decreasing it) does not necessarily mean the “size” of government has grown (or shrunk). Think how regulation is synonymous with big government, but it does not involve a tax or direct spending of any kind.

In fact, “big” government is often viewed through the lens of regulation, rather than cost. For instance, Kwak explains:

When people say government is too big, they often have in mind something like the Consumer Financial Protection Bureau–a regulatory agency that tells businesses what they can and can’t do…the CFPA’s budget is about $300 million, or less than one-hundredth of one percent of federal government spending.”

Again the divergence between cost and “bigness” is seen.  The CFPA may be viewed as “big,” intrusive, and unnecessary but it is not large in terms of cost like Social Security and Defense spending.

Kwak states, “popular antipathy toward the regulatory state has been translated into an attack on popular entitlement programs.”  Many people dislike certain government regulations and, due to the budget debate, dislike of regulation, the amount of government spending, and specific government programs may have become accidentally intertwined.

As mentioned before, Americans view Social Security, Medicare, and Medicaid as important and worth preserving.  Kwak elaborates: “Rationally speaking, your opinion about Social Security or about Medicare should be based on how much you put in and how much you get out–not on the gross size of the program, and not on how big the rest of the federal budget is. Yet instead the total size of the budget has become the driving force behind potential structural changes in Social Security and Medicare.”

Kwak suggests that “we should make decisions on a program-by-program basis, just like a business is supposed to do.”  His advice is: “If there’s a program that the American people, through our democratic system, agree will provide benefits greater than its costs, we should do it, independently of the existing spending level. And if there’s a program that isn’t covering its costs, we should kill it.”

Instead of focusing on a generality, “government size”, our elected officials should evaluate programs on a cost-benefit level.  Then government agencies that are viewed as too costly or intrusive (the CFPA) could be eliminated and government programs that are viewed as beneficial (SS, Medicare), but need reform, can be focused on in an unbiased way and not be harmed by the “too big” generality.

Jordan Ballor, in a blog post for Acton, wrote: “All government spending, including entitlements, defense, and other programs, must be subjected to rigorous and principled analysis.”  Indeed, although the American people think Social Security, Medicare, and Medicaid are beneficial, 52 percent think Social Security needs significant reform, 54 percent think Medicare needs reform, and 54 percent, likewise, for Medicaid.  However, without having a clear definition of what “too big” means, successful retooling will be difficult to achieve.

Ballor added: “This means that the fundamental role of government in the provision of various services must likewise be explored. This requires a return to basics, the first principles of good governance, that does justice to the varieties of governmental entities (local, regional, state, federal) and institutions of civil society (including families, churches, charities, and businesses).”  True reform requires not simply legal and budgetary change, but a reevaluation of what entities perform certain services, as Ballor suggested.

The Acton Institute is committed to real budget reform, and, to make sure that programs, like Social Security, are evaluated fairly and reformed properly, the United States should make sure it clearly defines the costs and benefits of individual programs before taking drastic action.

Blog author: eamyx
Thursday, July 14, 2011

Back in February 2008, then candidate for president Barack Obama addressed a crowd at a General Motors Assembly Plant in Janesville, Wis. He said,

…I am my brother’s keeper; I am my sister’s keeper– that makes this country work. It’s what allows us to pursue out individual dreams, yet still come together as a single American family. E pluribus Unum. Out of many, one.

It is ironic that Obama preached a “we’re-in-this-together” economic philosophy yet three years later, Main Street is carrying Washington’s debt burden.

Debt negotiations are currently at a deadlock in Washington over taxes. President Obama doesn’t want to follow through with $4 trillion in spending cuts without a $1 trillion tax increase, while Senate Democrats are asking for a whopping $2 trillion in new taxes. Democrats also do not want to sacrifice entitlement programs. Top leaders worry they will not be able to reach a deal in time to avoid a government default. With the predicted default deadline of August 2 creeping around the corner and unemployment on the rise at 9.2 percent, citizens feel a sense of urgency about the debt crisis.

When Obama said “I am my brother’s keeper,” what did he really mean? If the government is to act as our brother’s keeper, this means it should be accepting responsibility for the welfare of all citizens. Raising taxes to cover up Washington’s nasty spending habits is certainly not accepting any responsibility.

If the government was really acting in the best interest of its citizens, it would stop raising taxes. According to the Tax Foundation, Americans will need to work from January 1 to April 12 before they have earned enough to pay off their taxes. Tax increases may seem like a quick way to reduce the deficit as opposed to spending cuts alone, but the bottom line is that Washington has a spending problem, not a revenue problem. A Goldman Sachs report found that tax increases usually fail to correct fiscal imbalances and are damaging to economic growth while spending cuts correct fiscal imbalances and boost growth. Milton Friedman explains in his essay titled Fallacy: Government Spending and Deficits Stimulate the Economy why government spending does not mean “stimulus”:

Getting the extra taxes, however, requires raising the rate of taxation. As a result, the taxpayer gets to keep less of each dollar earned or received as a return on investment, which reduces his or her incentive to work and to save. The resulting reduction in effort or in savings is a hidden cost of the extra spending. Far from being a stimulus to the economy, extra spending financed through higher taxes is a drag on the economy.

The $2 trillion tax increase Senate Democrats are pushing has the potential to suffocate economic growth and job creation, which would not be good news for 14 million unemployed Americans. Today, the Great Recession now has more idle workers than the Great Depression. An article in The Fiscal Times claims the employment level is nowhere near where it should be for a typical recovery:

In a typical recovery, we would have had several hundred thousand more hires per month than we are seeing now—this despite unprecedented fiscal and monetary stimulus (including the rescue of the automobile industry, whose collapse would likely have lost a million jobs).

If spending binges don’t work for a family, why would they work for a government? When a family spends more than they are making, the only sensible solution would be to cut spending. Bureaucrats should take House Minority Leader Eric Cantor’s advice and be willing to share the sacrifice:

Everyone understands that Washington has been on a spending binge of late and we’ve got to start spending money the way taxpayers are right now and that’s learning how to do more with less.

The debt crisis is not just an economic hazard but a prodigious moral issue of poor stewardship as explained in an Acton commentary by Jordan Ballor and Ray Nothstine titled The Fiscal Responsibility of Mall Rats and Bureaucrats:

Responsible stewardship of one’s material resources is a consistent and recurring biblical theme. At the conclusion of a parable on stewardship, Jesus said, “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much” (Luke 16:10 NIV). We shouldn’t be duped into granting the use of greater and greater portions of our paychecks to a federal government that has been unfaithful with what it has already claimed.

Our economy will continue to hobble along until Washington is willing to truly act as a brother’s keeper in showing that it too can share the sacrifices necessary for getting spending under control. Until then, we will pay the price for Washington’s fiscal irresponsibility and millions of Americans will continue to struggle.

Black men and women in America are faced with many problems. Only 47 percent of black males graduate from high school on time compared to 78 percent for white males. In America between 1970 and 2001, the overall marriage rate declined by 17 percent; but for blacks, it fell by 34 percent. These are just a few of the many daunting statistics.

These are problems that make can make even the strongest person tired.

Often we look to government to solve our problems, and it has been the government who has falsely been the “beacon of hope” for black men and women. Instead, government has been keeping generations of those suffering addicted to social services. I call for wedding good intentions with sound economic principles. More money has been doled out, but it is hasn’t fixed any of the problems. Throwing cash at broken systems do not fix the systems. Black men and women face moral problems, but money can not solve moral problems; moral problems require moral solutions.

In my new book, Black and Tired: Essays on Race, Politics, Culture, and International Development, I provide the moral solutions to these problems by connecting theology and economics through a Christian perspective of loving the poor. In these essays, drawn from my years of work with and writing for the Acton Institute, I tackle issues of race, politics, contemporary culture, globalization, and education, and argue how moral formation, rather than government intervention, provide the solutions to these issues.

Marvin Olasky, Acton senior fellow and Editor-in-chief of WORLD, was kind enough to endorse the book: “Dr. Thomas Sowell, black and eighty years old, displays no signs of tiredness in writing columns–but when he does, Anthony Bradley shows in Black and Tired why he should be Sowell’s successor. Dr. Bradley trumps liberal opponents with facts and wit, and does so within a Christian worldview that allows him to go deeper than conventional economics allows.”