Posts tagged with: John Teevan

market4In his new book, The Half Has Never Been Told: Slavery and the Making of American Capitalism, Edward E. Baptist “offers a radical new interpretation of American history,” through which slavery laid the foundation for and “drove the evolution and modernization of the United States.”

In a review of the book for the Wall Street Journal, Fergus M. Bordewich concurs with this central point, noting that “Mississippi…does not have to look like Manchester, England, or Lowell, Mass., to make it an engine of capitalism.”

Responding to Bordewich in a letter to the Journal, John Addison Teevan, author of the newly released Integrated Justice and Equality and past Acton University lecturer, offers some compelling counterpoint, asking, “Was Roman slavery capitalist as well?” (more…)

Blog author: jballor
Friday, March 15, 2013
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Sam Gregg writes of Argentina, whence the new Pope Francis hails, “Over and over again, Argentina has been brought to its knees by the populist politics of Peronism, which dominates Argentina’s Right and Left. ‘Kirchnerism,’ as peddled by Argentina’s present and immediate past president, is simply the latest version of that.” For a bit of the current economic context in Argentina, here’s the latest on Kirchnerian political economy as related by John Teevan:

Cristinakirchnermensaje2010That’s the Argentine Way: In order to prevent the outflow of dollars from President Cristiana Kirchner’s silly-but-harmful economy, she created a new trade policy that permits only as much importing of foreign goods as can be paid for by equally matched by exports. So how is Newsan, an Argentine maker of Sanyo and JVC electronic equipment, going to create the exports necessary to buy the parts it needs to import? Easy, they added a seafood business that now exports shrimp and is paid in dollars. Similarly, Argentine BMW exports rice. Better to partner with Argentina’s wineries which produced $865m in wine exports. The words to describe this urgent economic inefficiency are not ‘free market’ nor even ‘social economic planning’ but ‘a Byzantine labyrinth.’ Why is it necessary? Because Ms. Kirchner also has currency rules or controls that ration how much foreign currency people can hold. Why? Because her policies have made the Argentine currency worth less threatening her dollar reserves. All this is to help ‘manage trade’ as she says so that Argentine jobs can be protected from ‘cheap imports’. President Cristiana is contorting herself to put many fingers in her leaky dike. She’s running out of fingers and looks ridiculous.

The above is from John’s monthly email, “Economic Prospect.” Send John a message if you’d like to be added to his list.

Blog author: jballor
Tuesday, February 19, 2013
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My friend John Teevan of Grace College sends out a monthly newsletter, “Economic Prospect.” He passes along this in the current edition:

I found this note from a newly retired accountant (age 66) who has not gone on social security yet. His income as a part-time accountant in his town was $60,000.

“My income is $60,000 and my IRS taxes are 10,000, my FICA deduction is $8,000, my state income tax is $2500, and my property tax is $6000. So I pay a total of $26,500 in taxes leaving me $33,500.

However, I have additional costs that I would like to (but can’t) deduct from my income. As I watch ‘government accounting’ I realize that these should be considered real costs.

I have saved $200,000 and invested the money in bonds earning 1% ($2000).

I could have invested that money in CDs earning 5% (10,000), but as the Fed has lowered the interest rate the cost to me is the difference: $8000.

In addition I am now entitled to social security and at my level of income over the years I would have received $28,000 this year, but I have chosen not to take Social Security saving Uncle Sam that money.

So I have contributed a total of $36,000 to Uncle Sam in foregone interest and foregone Social Security payments. Who got the benefit of that $36,000?

Uncle Sam; not me.

So if I add up my total contributions to the government this past year I paid $26,500 in taxes and paid $36,000 in lost income. These two come to $62,500…more than the $60,000 I earned.

While I enjoy my new job, when I think about this, I start to feel like one of Pharaoh’s slaves toiling to roll immense stones up from the Nile to his pyramid.”

Send John a message if you’d like to be added to his “Economic Prospect” list. It’s always a great read.

The Acton Commentary this week from my friend John Teevan compares church budgets to government budgets, and what “government thinking” might look like if it were reflected in charitable and ecclesiastical budgeting. He writes, “If we think the government is the best source of compassion for the needy and the engine of economic growth, then it makes sense to set taxes at high rates so the government can do all good things for the people.”

On that point, over at Evangelical Perspective Collin Brendemuehl asks some salient questions in comparing government welfare to private charity.

Is the government 50% efficient? 75% efficient? I can’t venture a guess. But apparently neither can the bureaucrats. But even so, is it a stretch to say that the government is more than likely much less efficient than these charities? Not a tough one, really. Though government has the advantage of being in tough with society on a broader scale, it is also much less capable at targeting specific needs in a short amount of time. Anyone remember how fast Feed the Children and others got into New Orleans ahead of government? They were there faster, with just as much material, and actually met needs. (They did not randomly hand out $2,000 debit cards without accounting.)

Now that’s not to say that efficiency is the only valid factor to consider when evaluating charities or government programs. But it is an important factor and has to do with meeting one’s obligations as a steward of other people’s money or property. It’s in this sense that, as Collin writes, “Government is a servant. At least it ought to be.”

On the question of giving to charities and churches, D. G. Hart has raised this question of extra-ecclesiastical giving in a couple of posts over at Old Life. My final commentary of 2010 made the point that “Christian Giving Begins with the Local Church.” But as I said in a follow-up post over at Mere Comments, I don’t think Christian giving ends there. I wonder why Hart has focused so much on The Gospel Coalition, Desiring God, and Redeemer City to City in particular. It seems his critique would apply equally as well to other organizations like the Alliance of Confessing Evangelicals and Ligonier Ministries.