Posts tagged with: Illinois

In a lengthy interview in the Daily Caller, Acton Research Director Samuel Gregg picks up many of the themes in his terrific new book, Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. Here’s an excerpt:

Daily Caller: In what ways do you think the U.S. has become like Europe?

Samuel Gregg: If you think about the criteria I just identified, it’s obvious that parts of America — states like California, Illinois, and New York — have more-or-less become European. Likewise, the fact that most federal government expenditures are overwhelmingly on welfare programs replicates the situation prevailing throughout Western Europe. Then there is the unwillingness on the part of many Americans to accept that we cannot go on this way. It is one thing to have problems. But it’s quite another to refuse to acknowledge them.

Daily Caller: What’s so bad about becoming like Europe? It’s not that bad of a place. It’s not like becoming like North Korea, right?

Samuel Gregg: I lived and studied in Europe for several years. So I can report that there is much to like! But even leaving aside many European nations’ apparent willingness to settle for long-term economic stagnation, I would argue that it’s becoming harder and harder to be a free person in Europe. By that, I don’t mean a re-emergence of the type of socialist regimes that controlled half of Europe for 50 years. Rather I have in mind two things. (more…)

National Review Online invited Acton Research Director Samuel Gregg to contribute to a roundup of opinion on the inauguration of a second term in office for President Barack Obama. Gregg, the author of the just-published Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, was also featured yesterday on Ed Driscoll’s blog on Pajamas Media. Driscoll linked his New York Post column on “eurosclerois.

Here’s Gregg’s contribution to NRO’s “Inauguration Day Survival Guide”:

Time is a precious thing, and I, for one, don’t intend to waste it watching the hubris-filled extravaganza and tedious acclamation of identity politics that’s likely to occupy much of the media’s attention over the next few days.

A far better investment of time for those worried that the republic is slowly entering the twilight world of failed states such as California and Illinois would be to forget about the ins and outs of policy debate for a few days, dust off some of the classics of the American Founding, sit down, and, yes, actually read them.

Plenty of people — and not just conservatives and free-marketers — know there’s a more-than-serious risk that the next four years will take the United States even closer to the nadirs of political Detroitification and economic Europeanization. But for all the endless introspection that apparently grips the Right these days, we don’t need to reinvent the philosophical and political principles for the way forward. For although they didn’t agree about everything, the basic agenda for a resurgence of conservative America was penned by those present at the creation in places like Mount Vernon and Philadelphia over 230 years ago. Remembering that is worth more than all the polling and focus groups in the world.

Be sure to pick up a copy of Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter Books, January 2013).

Writing on The American Spectator website, Acton Research Director Samuel Gregg looks at the strange notion of European fiscal “austerity” even as more old continent economies veer toward the abyss. Is America far behind?

Needless to say, Greece is Europe’s poster child for reform-failure. Throughout 2011, the Greek parliament passed reforms that diminished regulations that applied to many professions in the economy’s service sector. But as two Wall Street Journal journalists demonstrated one year later, “despite the change in the law, the change never became reality. Many professions remain under the control of professional guilds that uphold old turf rules, fix prices and restrict opportunities for newcomers.” In the words of one frustrated advisor to German Chancellor Angela Merkel, “Even when the Greek Parliament passes laws, nothing changes.”

Politics helps explain many governments’ aversion to reform. Proposals for substantial deregulation generates opposition from groups ranging from businesses who benefit from an absence of competition, union officials who fear losing their middle-man role, to bureaucrats whose jobs would be rendered irrelevant by liberalization. The rather meek measures that Europeans call austerity have already provoked voter backlashes against most of its implementers. Not surprisingly, many governments calculate that pursuing serious economic reform will result in ever-greater electoral punishment.

In any event, America presently has little to boast about in this area. States such as Wisconsin have successfully implemented change and are starting to see the benefits. But there’s also fiscal basket-cases such as (surprise, surprise) California and Illinois that continue burying themselves under a mountain of debt and regulations.

Read “Why Austerity Isn’t Enough” by Samuel Gregg on The American Spectator.

Blog author: jballor
posted by on Tuesday, November 22, 2011

It seems that the supercommittee (the US Congress Joint Select Committee on Defict Reduction) has failed to agree on $1.5 trillion in cuts over the next decade. In lieu of this “failure,” automatic cuts of $1.2 trillion will kick in. These cuts will be across the board, and will not result from the committee’s picking of winners and losers in the federal budget.

In the context about discussions of intergenerational justice earlier this year, Michael Gerson said that such across-the-board cuts are “really the lazy abdication of governing.” And with respect to the outcome of the supercommittee process, Gerson is laying the lion’s share of blame for this failure to govern with President Obama: “It is the executive, not the legislature, that gives the budget process energy and direction. The supercommittee failed primarily because President Obama gave a shrug.”

But I want to speak out in favor of across-the-board cuts, at least provisionally. I do not think they necessarily represent a failure to govern, or the “lazy abdication of governing.” It’s true as Gerson says that “To govern is to choose. And some choices are more justified than others.” In the case where there is no clear agreement about spending priorities, or even the basic views of the purpose of government, choosing to keep spending priorities as they currently exist might just be the most feasible political move. If everyone agrees that there needs to be cuts, but no one wants their pet programs cut, then it seems reasonable to, as Gerson puts it, “let everyone bear an equal burden.”

If we were to try to weigh the cuts and divide them proportionally between various areas of government spending, it seems to me that we’d need to come to grips with the various responsibilities of government: primary, secondary, tertiary, and so on. Things that are more central to the federal government’s purpose should be cut relatively less than those things that are more peripheral. That’s the view that appears in the Acton Institute’s “Principles for Budget Reform,” for instance.

But one thing that’s clear about today’s political climate is that there is very little consensus on what the central functions of government are. And in the absence of consensus, maintaining current spending priorities might be the best we can hope for.

Blog author: jballor
posted by on Monday, September 12, 2011

The folks over at Think Christian asked me to write up a response to President Obama’s jobs speech from last Thursday. That response is now up over at the TC site, “The misplaced faith of Obama’s job speech.”

I took special note of President Obama’s invocation of a couple lines from JFK: “Our problems are man-made – therefore they can be solved by man. And man can be as big as he wants.” I found this quote, used in this context, to be particularly illuminating. It illustrates perfectly, I think, an idolatrous view of human ability, particularly of human politics.

So when you add the formula, “Man can be as big as he wants,” to the president’s derision of “some rigid idea about what government could or could not do,” and you’ve got an equation that results in government as big as we want.

In some ways then the question really does come down to this: How big of a government do we really want? We’ve been electing politicians for decades that have been promising us things that could only be accomplished by massive expansions in government. If we want truth-tellers in politics, as Thomas Friedman rightly urges, then citizens have to demand them, and hold ourselves to the maxim, “If it sounds too good to be true, it probably is.”

A dispute has arisen in Illinois between Catholic Charities and the state government. As the National Catholic Register explains it, “Catholic Charities branches of three Illinois dioceses have filed a lawsuit against the state of Illinois in order to continue operating according to Catholic principles — by providing foster care and adoption services only to married couples or non-cohabitating singles.” In an interview, with the newspaper, Rev. Robert A. Sirico defends Catholic Charities in light of the principle of subsidiarity while arguing for the right of the Catholic Charities to exist and conduct its own business without the influence of the state:

“What is it about foster care that necessitates a state-run system? Why can’t it be done on local levels?” he said. “Why can’t a city, municipality or affiliation of organizations do it and merely abide by standards set by the state? But when you have it monopolized, in effect, by the state [which uses organizations such as Catholic Charities as contractors to provide services], then you have the political-interest groups in control.”

Rev. Sirico also offers a solution for guaranteeing the independence of Catholic Charities:

“I think we need to separate the giving from the mechanism of the state,” Father Sirico continued. “I think there are ways to incentivize people to give that aren’t channeled through political and bureaucratic agencies. For instance, what if we had a tax credit to corporations or individuals that allowed their money to be used in a way that isn’t run through the state, but for services that they’re already obligated to pay the state to perform? For example, you have a tax obligation; but let’s say you’re allowed to take the portion going to social services and designate it to a specific charity you wanted to support. You don’t pay the state. The state reduces its involvement in that sphere. What you do is present the state with a documented receipt that you paid money to that charity.”

Click here to read the full article

Acton On The AirIf you’ve been following the news recently, no doubt you’re aware of the controversy in Wisconsin surrounding Governor Scott Walker’s budget proposals – which include curtailing collective bargaining for state employees – which have led to massive union protests in Madison and the state Senate Democrats fleeing to Illinois to try to delay the vote and force changes in the bill.

Last week, a couple of radio shows turned to Acton for insight on the Wisconsin situation. On Monday, Rev. Robert A. Sirico joined guest host Sheila Liaugminas on The Drew Mariani Show on Relevant Radio to discuss how to properly value the work of public employees, Catholic teaching on unions, and some of the problems posed by public sector unions:

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On Tuesday, Acton’s Director of Research, Dr. Samuel Gregg, joined host Al Kresta on Kresta in the Afternoon on Ave Maria Radio to discuss both the Catholic Church’s historic teaching on unions and its response to the present situation:

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The Hastert Center at Wheaton College will host a debate tomorrow night between Jim Wallis, president of Sojourners, and Arthur Brooks, president of the American Enterprise Institute, on the question, “Does Capitalism Have a Soul?” Washington Post columnist Michael Gerson will moderate.

In framing the debate, Dr. Seth Norton, Hastert Center director, notes in the press release:

“It’s a good chance to compare different visions of capitalism and market economies, and to discuss the role of government in those economies. There is a lot of debate on these issues in secular venues, but this is a chance to hear two people who have a spiritual common denominator address complicated issues related to economic systems, and that’s a rare event.”

The event begins at 7 p.m. and is open to the public.

Blog author: mvandermaas
posted by on Tuesday, December 29, 2009
The Greatest?

The Greatest?

I post the following excerpt of an editorial from a Danish news outlet without further comment, other than to say that I look forward to giving our PowerBlog community the opportunity to have a grand old time trying to come up with new superlatives to describe just how fantastically stupid this is:

EDITORIAL: Obama greater than Jesus

He is provocative in insisting on an outstretched hand, where others only see animosity.

His tangible results in the short time that he has been active – are few and far between. His greatest results have been created with words and speeches – words that remain in the consciousness of their audience and have long-term effects.

He comes from humble beginnings and defends the weak and vulnerable, because he can identify himself with their conditions.

And no we are not thinking of Jesus Christ, whose birthday has just been celebrated – - but rather the President of the United States Barack Hussein Obama.

For some time now, comparisons between the two have been a tool of cynical opinion that quickly became fatigued of the rapture that Obama instilled prior to and after the presidential election last year.

From the start, Obama’s critics have claimed that his supporters have idolised him as a saviour, thus attempting to dismantle the concrete hope that Obama has represented for most Americans.

The idea was naturally that the comparison between Jesus and Obama – which is something that the critics developed themselves – would be comical, blasphemous, or both.

If such a comparison were to be made, it would, of course, inevitably be to Obama’s advantage.

Please, oh please do read the rest.  It’s delightful.

Let’s engage in a little thought experiment. How would you feel about the following scenario?

1) The government bans all activities associated with Industry X because it judges that this industry damages the common good. Industry X is under government prohibition.

2) After enough time has passed and a new generation of bureaucrats has arisen, one of them has the idea of resurrecting Industry X because it has the potential to create new streams of revenue for the government.

3) The government then legalizes Industry X but imposes strict controls, such that the government itself is deemed the only institution responsible enough to administer these activities. We now have a government-run monopoly on Industry X.

4) After initial success, the income from Industry X suffers for a variety of reasons, including competition from private enterprises in competing industries. The government realizes that it cannot run Industry X effectively, and so decides that it must privatize the industry.

5) The government doesn’t want to lose all control of the industry, however. It just wants it to be run more like an effective private-sector business. The government decides to take bids to sell of its interests in Industry X. The winner gets the exclusive right to run Industry X and is protected by a government-enforced monopoly.

At the end of this chain of events, the government has cashed in on years of running its own monopoly on Industry X, and has also gotten a huge windfall in the sale of its monopoly to a private firm.

That industry hasn’t become a real competitive market, however, because the private firm has a government-enforced monopoly on Industry X. It is still illegal for anyone other than that private firm to create a directly competitive business in that industry.

That sounds pretty bad to me. But the reality is that we are between stages 4 and 5 in the lottery industry in America today. States like Illinois and Indiana are considering selling off their interests in running a statewide lottery.

In Illinois, for instance, state officials have seen lottery revenues fall due to competition from other forms of gambling, including casinos and Internet poker.

This has led John Filan, the chief operating officer of the state of Illinois, to come to the following epiphany: “This is fundamentally a retail business, and governments are not equipped to manage retail businesses. Gaming is getting so competitive around the world that we’re worried our revenues could go down unless there is retail expertise.”

Governments are not equipped to manage retail business. What a revelation!

Rather incredibly, however, the criticism of these moves has not come from those worried about the vitality of the market and its advantages. Instead, economists are concerned that states are being short-sighted in selling off long-term income streams for a single short-term payday.

Melissa Kearney, an assistant professor of economics at the University of Maryland says, “It’s unclear exactly what is gained by selling a lottery, except for a huge pot of money that legislators can start spending right away.”

Charles Clotfelter, who teaches economics at Duke University, agrees. And Edward Ugel, author of the forthcoming Money for Nothing: One Man’s Journey Through the Dark Side of America’s Lottery Millions, writes that “Illinois is selling its future in order to fortify its present.”

Nowhere is any concern expressed over the impropriety of a government-enforced monopoly (even less one that is government-run).

If it is true that lotteries are “retail enterprises” that are inherently risky, and that government is ill-prepared to run them and that they should be turned over to those who are “in the risk-taking business,” then the government should legalize lotteries and open up the industry to real competition. A government enforced monopoly of a privately-run lottery system is no solution.