Posts tagged with: politics

Acton’s director of research Samuel Gregg has a piece over at The American Spectator that may surprise big government liberals. (We know you read this blog.) In “Free Market Sweden, Social Democratic America,” he lays out the history of Sweden’s social democracy — its nature and its effects on the country’s economy — and then draws lessons for the United States. The Scandinavian country isn’t quite the pinko nanny state Americans like to look down upon, and we’ve missed their reforms of the last two decades.

Gregg explains that Sweden’s dramatic mid-century expansions of government were portrayed as rooted in the traditional values of the homeland, so Social Democrat governments escaped the soft-Marxism tag, and were able to do pretty much as they pleased. Social programs were also characterized as coverage of universal rights, to be imposed by general taxation. Then came

the decision of governments in the 1970s to hasten Sweden’s long march towards the Social Democratic nirvana. This included expanding welfare programs, nationalizing many industries, expanding and deepening regulation, and — of course — increasing taxation to punitive levels to pay for it all.

Over the next twenty years, the Swedish dream turned decidedly nightmarish. The Swedish parliamentarian Johnny Munkhammar points out that “In 1970, Sweden had the world’s fourth-highest GDP per capita. By 1990, it had fallen 13 positions. In those 20 years, real wages inSweden increased by only one percentage point.” So much for helping “the workers.”

Economic reality was painful, but Sweden responded, and began to unravel some of its “progress,” reducing the public sector and even allowing private retirement savings. Unemployment was still high though — about 20 percent — in large part because the country’s tax structure encouraged joblessness.

But with a non-Social Democrat coalition government’s election in 2006, Sweden’s reform agenda resumed. On the revenue side, property taxes were scaled back. Income-tax credits allowing larger numbers of middle and lower-income people to keep more of their incomes were introduced.

To be fair, the path to tax reform was paved here by the Social Democrats. In 2005, they simply abolished — yes, that’s right, abolished — inheritance taxes.

But liberalization wasn’t limited to taxation. Sweden’s new government accelerated privatizations of once-state owned businesses. It also permitted private providers to enter the healthcare market, thereby introducing competition into what had been one of the world’s most socialized medical systems. Industries such as taxis and trains were deregulated. State education and electricity monopolies were ended by the introduction of private competition. Even Swedish agricultural prices are now determined by the market. Finally, unemployment benefits were reformed so that the longer most people stayed on benefits, the less they received.

By 2010, Sweden’s public debt had fallen dramatically and its rate of economic growth was 5.5 percent. Compare that with America’s 2.7 percent growth in 2010, and just try to restrain your jealous impulses.

Gregg cautions that Sweden’s economy is still hampered the Social Democrats’ legacy. High minimum wages keep a full quarter of the country’s youth unemployed, and a carbon tithe to the religion of environmentalism retards growth, but

It’s surely paradoxical — and tragic — that a small Nordic country which remains a byword for its (at times obsessive) commitment to egalitarianism has proved far more willing than America to give economic liberty a chance.

Full article here.

Billionaire Democrat Ted Leonsis wrote a posting titled “Class Warfare – Yuck!” on his blog yesterday, in which he implored the president, to whose campaign he donated the maximum amount: “Hit a reset button ASAP. Rethink how to talk to businesses and sell business leaders on your plan to make America great! Many of us want to be a part of the solution. We aren’t the problem.”

Today, Charles Schwab published an opinion piece in the Wall Street Journal, and again the title says it all: “Every Job Requires an Entrepreneur.” If there is to be an economic recovery, he says,

The leaders of both parties, Republicans and Democrats alike, must lend their voices to encourage and support private enterprise, both for what it can do to turn our economy around and for the spirit of opportunity it represents.

These two men are individually responsible for the creation of hundreds of thousands of jobs because of the innovations they brought to the internet (AOL) and to stock brokerage (Charles Schwab Corp.). And their businesses have done more than employ lots of people; they have lowered the cost of internet access and financial services for millions of Americans. These men have done immense good for “less fortunate Americans,” and Ted Leonsis feels insulted by corporate jet demagoguery,

I own 50 hours on NetJets for the rare occasion I do travel by private plane. Does Air Force One charter out? Stop making private planes an issue. This is a tiny issue for us to deal with for our country.

Trying to shackle investment and entrepreneurial activity does the unemployed no good (nor our national debt). And no rhetorical strategy could be more opposed to the Christian principle of solidarity than the vilifying of successful entrepreneurs — the effects of such a strategy on public morality should be immediately obvious.

The corporate jet talking point is meant to stir envy in the hearts of listeners — it’s a trifling proposal that packs maximum rhetorical punch — and government by envy will get you nowhere.

In the latest issue of Religion & Liberty, Acton Institute executive direct Kris Mauren answers the question, “Why does the Acton Institute publish the Journal of Markets & Morality?”

For more, check out my interview with Micheal Hickerson of the Emerging Scholars Network.

You can support the work of the journal by getting a subscription for yourself or recommending a subscription to your library of choice.

Acton’s director of research, Samuel Gregg, has contributed his thoughts on last night’s debate to National Review’s roundup. He was disappointed by the candidates’ performances: “with the exception of Newt Gingrich, substance did not feature highly in this debate.” These debates tend to be about talking points and about subtle digs at your opponent, not the kind of serious debate we had at the Palmetto Freedom Forum, but Gregg says,

It’s too easy to say that such formats as Thursday night’s don’t lend themselves to that type of presentation. Whoever runs against President Obama is going to have to articulate, in very similar settings, a vivid, powerful, and content-rich contrast to the present administration’s economic policies.

Though none of the candidates was able to offer the “serious, public, and substantial reflection” on our economic problems that Gregg was looking for, he’s not expecting to hear it from the incumbent in debates with the GOP choice:

Angry voters (especially independents), disillusioned with politics and politicians in general, aren’t going to buy in to messianic 2008 hope-’n’-change rhetoric in 2012. Yet while anti-Obama sentiment will take the Republican candidate a long way towards victory, it won’t be enough in the current economic climate. Substance — and the ability to communicate it — will matter.

Read his full commentary here.

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.

Director of Research Samuel Gregg is among those reacting to last night’s CNN/Tea Party Debate on National Review Online. His first point is that “when CNN hosts a Tea Party–sponsored debate, you know we’re not in 2008 anymore.” Gregg’s take is that the debate was a lot more mainstream than the network wanted us to think, and that the economic questions raised and debated are going to be the central issues of the 2012 election:

Almost all of the candidates demonstrated their ability to raise sharp questions about the present administration’s specific policies but also about the basic philosophy informing those positions. The question running through my mind was how the president was going to provide convincing (let alone coherent) responses to the critiques I heard of policies ranging from Obamacare, to his administration’s not-so-subtle association with some of America’s worst examples of crony capitalism, to the ramping up of deficit spending that has produced so few tangible results in terms of employment and growth.

Gregg doesn’t see the Tea Party’s influence declining anytime soon:

It was also revealing that the economic questions asked at this forum closely mirrored many of the issues raised at the previous debates. This suggests that all the talk about the Tea Party’s running out of steam since 2010 seems less convincing than ever. Whether the Republican party likes it or not, the Tea Party is still galvanizing American conservatives and also, perhaps more importantly, independents. And that spells deep trouble for the Left in 2012.

Director of Research Samuel Gregg has written a special report for the American Spectator about Benedict XVI’s upcoming trip to Germany. The recent World Youth Day in Spain may have looked like a bigger challenge for Benedict, but Gregg says that Germany, while its economy looks good, is facing rough seas ahead.

Germany finds itself propping up a political experiment (otherwise known as the euro) that’s tottering under the weight of its internal contradictions. As the German tabloid Bild put it: “Will we finally have to pay for all of Europe?”

Looking beyond the present, however, grave challenges lie ahead for Germany—not all of which are economic.

Germanyhas, for instance, one of Western Europe’s worst birthrates. That spells trouble for Germany’s future productivity and its welfare state. A second issue is Germany’s struggle with the questions of immigration and non-assimilated Muslim minorities and the subsequently-inevitable always-awkward debates about what it means to be German in modern Europe.

And the institution whose clarity of thought and moral influence should be guiding the country as it faces those issues—the German Church—is weakened.

On the surface, the German Church’s problems are manifested in the large numbers of German Catholics who say they’ve left the church in recent years (the very liberal Protestant German churches are shedding members even faster). Then there are the sex abuse scandals which emerged when ugly stories began circulating about what had really gone on in a now not-so-prestigious Berlin-based Jesuit school in the 1970s and ’80s.

There is, however, another dimension to German Catholicism’s present problems: a story of the follies of accommodation to whatever counts as “modern” or “contemporary” at any given moment.

The German Church has become heavily bureaucratized (and staffed by many unbelievers), and its response to Vatican II has been less to engage with modernity and more to accommodate it. The Church has lowered its focus, Gregg says, to two worldly concerns:

The first is power within the structures of German Catholicism because (sotto voce) “we all know” life is really about acquiring power rather than knowing truth. The second is upon changing Catholicism to make the Church look much more like “the world” because (sotto voce) “we all know” the fullness of divine truth is “out there” rather than in the Revelation of Jesus Christ.

Gregg does not despair, however, for

Younger bishops, priests and laity are far less worried about upsetting those tenured theologians who aren’t sure if Christ is God but who are absolutely convinced no sin could possibly be mortal. The epicenter of German Catholic life is shifting away from what Benedict once called “the spent and tired” bureaucracy and is increasingly with what he describes as initiatives that “come from within, from the joy of young people.”

And that, perhaps, is what Benedict will bring to the German Church: a sense of the joy of living a full Christian life, a message that contrasts sharply with the Götterdämmerung of a fading generation of Catholics in perpetual rebellion against anything which suggests modernity doesn’t have all the answers. And in the contest of hope versus despair, we all know who ultimately wins.

Blog author: jballor
Monday, September 12, 2011
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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.”

Awhile back someone questioned the scholarly credibility of the Acton Institute on the Emerging Scholars Network (ESN) Facebook page in connection with one of our student award programs, specifically contending the institute is “not scholarly.” To be sure, not everything the institute does is academic or scholarly.

The Blauwpoort in Leiden in the winter.But we do some scholarship, which as an academic and a scholar I like to think is worthwhile. In fact, our commitment to quality research is one of the things that is most remarkable about the institute.

So as an evangelical scholar at the Acton Institute, I was excited to have a chance to discuss the work we do, particularly with respect to the academic research the institute supports and publishes, with the Emerging Scholars Network, an outreach of InterVarsity Christian Fellowship “called to identify, encourage, and equip the next generation of Christian scholars who seek to be a redeeming influence within higher education.”

Given the ESN’s significant task, I was also glad to be able to extend an offer to the ESN community to become more familiar with the scholarly work of the institute by offering a complimentary two-year digital subscription to the Journal of Markets & Morality, our peer-reviewed publication indexed by the leading databases of both religion and economics. The latest issue includes our first installment of papers presented in connection with the Theology of Work Consultation of the Evangelical Theological Society.

For the whole interview with ESN’s Micheal Hickerson and details about the offer, visit the ESN blog.

James Hoffa put on quite a performance this weekend—first on CNN’s “State of the Union,” and then in Detroit at a Labor rally with President Obama. Also this weekend, President Biden revealed that the White House seems to have given up and decided America is already a “house divided,” with “barbarians at the gate” in the form of the Tea Party. Coverage of these incidents is available from whichever news outlet you trust, but there is one thing that CNN has probably missed: this weekend’s rhetoric is a vivid reminder that most labor organizations have moved far beyond their proper and defensible role.

Though “the condition of the working classes” is much different now than it was when Pope Leo XIII wrote Rerum Novarum in 1891, the document provides a strong justification of labor unions and their position in society. This is done in the context of a response to the advances of socialism on one hand and atheistic individualism on the other. It would be inflammatory, perhaps even violent, to identify the labor leaders of today with Leo’s socialists, and it would be a stretch to say that Hoffa & co. advocate state-owned means of production, but their contribution to political discourse is remarkably similar to Leo’s characterization of socialist tactics:

They are moreover, emphatically unjust, for they would rob the lawful possessor, distort the functions of the State, and create utter confusion in the community.

So far as I can tell, requiring American companies with savings in the bank to spend that money hiring American workers is (1) robbery of the lawful possessors of those savings (which are not, by the way, buried in fields on corporate campuses) and (2) distortion of the functions of the State.

What I can’t find in Rerum Novarum is a justification for Hoffa’s insulting the mothers of Republican leaders. The “spirit of revolutionary change” which caused Leo to write the encyclical is not endorsed by it. (Video of Hoffa’s “remarks” here—strong language warning.)

As for Vice President Biden, he does seem to have read Pope Leo’s encyclical, or at least the part that says “perpetual conflict necessarily produces confusion and savage barbarity.” But he seems to have missed the sentence that follows:

Now, in preventing such strife as this, and in uprooting it, the efficacy of Christian institutions is marvelous and manifold.

The Vice President’s careful maintenance of his wall of separation between faith and government is admirable.