Posts tagged with: Matt Mitchell

Blog author: dpahman
posted by on Friday, December 28, 2012

388px-The_Last_of_the_Spirits-John_Leech,_1843Matt Mitchell at Neighborhood Effects offers an interesting perspective regarding the fiscal cliff. As we hurriedly approach the edge, Mitchell’s insights ought not to be ignored, whatever the outcome of today’s last minute meeting at the White House. Evoking the Ghost of Christmas Yet to Come from Charles Dickens’s A Christmas Carol, he writes,

At the risk of mixing metaphors, we should think of the fiscal cliff as the Ghost of the Fiscal Future. It is a bleak lesson in what awaits us if we don’t get serious about changing course.

Mitchell goes on to hint at the serious issue of intergenerational justice that our government’s current fiscal behavior will affect if it continues unchanged:

The non-partisan Congressional Budget Office [CBO] now projects that, absent policy change, when my two-year-old daughter reaches my age (32), revenue will be just a bit above its historical average at 19 percent of GDP while spending will be nearly twice its historical average at 39 percent of GDP. This is what economists mean when they say we have a spending problem and not a revenue problem: spending increases, not revenue decreases, account for the entirety of the projected growth in deficits and debt over the coming years. (more…)

Blog author: dpahman
posted by on Tuesday, December 18, 2012

I recently asked the question at Ethika Politika, “Which Capitalism?” (also the title of my article), and I followed it up with a related question here regarding the relationship between distributism and capitalism (is the former a form of the latter?). In addition, Jordan Ballor reflected last week on the different orientation of definitions of capitalism and socialism, observing, “One definition [i.e. capitalism] is focused on structure, the other [i.e. socialism] is connected with moral ideals.”

On a related note, I found this post from Matt Mitchell at Neighborhood Effects to be quite to the point as well:

Google Chairman Eric Schmidt defended the company’s practices [of taking certain tax exemptions], saying:

We pay lots of taxes; we pay them in the legally prescribed ways…. I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.

So far so good. He didn’t make the rules that privilege his firm, but he will avail himself of these privileges when offered. I can sympathize. I oppose the mortgage interest deduction but still take it every April. Schmidt’s next statement, however, is about as far from the mark as one can get:

It’s called capitalism…. We are proudly capitalistic. I’m not confused about this.

A quick lesson for Mr. Schmidt: genuine capitalism is about competing on a level playing field for customer dollars. If you offer a superior product or service, customers will reward you by voluntarily parting with their money in exchange for what you offer. (more…)