Posts tagged with: Samuel Gregg

The Dodd-Frank Act became law in 2010, adding more regulation to a banking industry that was already heavily regulated.  The main purpose of this 2,300 page act was to give consumers protection against big profit seeking banks but the unintended consequences prove to be much greater.  The regulation was supposed to help the little guy but as Acton Director of Research Samuel Gregg writes at The Stream, it actually hurts the little guy.

President-elect Donald Trump claims that he wants to deregulate the financial industry but in order for this to happen successfully, we need to understand the argument for why such actions would be beneficial.  Gregg says this:

Consider, for instance, the costs associated with meeting the ever-growing demands of regulatory compliance. Such costs are more easily borne by large banks than smaller-sized institutions such as community banks. The result is that excessive regulation makes it harder for smaller banks to compete. That often puts access to capital out of reach for many people.

But perhaps the most harm which excessive financial regulation inflicts upon ordinary people concerns the ways in which such regulations can — and have — contributed to financial meltdowns. Such crises are far more likely to hurt those on the lower-side of the economic scale than the already-wealthy.

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In a new article at The Stream, Acton Director of Research Samuel Gregg offers good reasons why a move toward economic nationalism is not in the best interest of America.  He starts with this:

Whatever the motivations for such policies, their costs vastly outweigh their benefits. In the first place, protectionism discourages American businesses and workers from focusing on producing those goods and services where they enjoy a comparative advantage vis-à-vis other nations. Not only does this undermine productivity, efficiency, and international competitiveness of American businesses. It also encourages American workers to enter industries that, no matter how much protection they enjoy, won’t be able to compete in the long term.

Gregg continues to give reasons against economic nationalist policies throughout his article, but one reason that seems to be quite relevant at the time is crony capitalism.  Gregg says this:

Yet another problem with economic nationalism is that it encourages a growing problem in American economic life: crony capitalism.

Giving certain American businesses subsidies or lumbering foreign products with tariffs may seem like economic questions, but in practice they are ultimately political. Such policies encourage companies prefer to seek profits by lobbying legislators and bureaucrats rather than serving customers and creating value.

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Michael Hamburger, a Jew born in Germany and exiled in England in 1933, borrowed the persona of the previous century’s German Romantic poet Friedrich Holderlin to express in verse the madness of the modern world. For Hamburger, Holderlin’s well-documented … shall we approach this delicately? … mental issues, were a proportional response to a world he perceived as approaching the precipice. In his 1941 poem titled “Holderlin,” Hamburger wrote:

I have no tears to mourn forsaken gods
Or my lost voice.
This is my wisdom where no laughter sounds,
No sighs, this is my peace.

Glory is gone, and the swimming clouds;
My dumb hand grips the frozen sky,
A black bare tree in the winter dark.

For truly observant Roman Catholics, the contemporary milieu echoes Hamburger’s lament vis-a-vis Holderlin about “forsaken gods,” or, at the very least, forgotten or casually ignored for convenience’s sake Church history, doctrine, dogma and precepts.

Zmirak

Overtly, one need look no further than recent WikiLeaks’ revelations concerning John Podesta and company’s desire for a “Catholic spring;” the Affordable Care Act’s attempted bulldozing of religious liberties; the media and its “green” allies embracement of many of the pronouncements found in Pope Francis’ Laudato Si encyclical; government compulsion of florists and pastry chefs to violate their respective religious conscience; the tragic abortion morass wrought by the Supreme Court’s discovery of an unknown until 1973 penumbra of privacy in the U.S. Constitution; and the combined deleterious effects on the family unit caused by the twinning of the sexual revolution with no-fault divorce.

Less obvious are efforts within the Church itself, which include nuns, laity and clergy promoting government wealth-redistribution efforts under the guise of charity as well as engaging in ill-informed “environmental” activism that pose very real negative threats to the world’s poorest – and consistently contradict the Church’s explicit teachings on such matters. As your writer can attest, post-Vatican II Catholic school education did little to inform its students about the Deposit of the Faith due to focusing on such “social goods” as economic equality and using pop music lyrics to advance squishy theological concepts that tilted heavily toward socialism and pantheism. One need only close one’s eyes to recall the wheat-germ scented nuns of the 1970s agitating for more government programs.

It’s all enough to make someone stand athwart Christian history, yelling Stop! – and that someone is John Zmirak, author of The Politically Incorrect Guide® to Catholicism: The Most Politically Incorrect Institution in the World! (Regnery Publishing, 2016, 370 pp, $21.99). Those of us familiar with Zmirak’s other books and essays shouldn’t be surprised he wields a mighty pen and encyclopedic knowledge of Catholicism and many other topics when it comes to demolishing liberal shibboleths and the agendas to which they’re attached. (more…)

Pope Francis' trip to the US

“Supporting markets as the economic arrangements most likely to help promote human flourishing doesn’t necessarily mean you accept libertarian philosophical premises” says Acton Institute Director of Research Samuel Gregg in an essay published today at Public Discourse.  This comes in response to “Koch Brothers Latest Target: Pope Francis,” an Oct. 14  article written by John Gehring at the American Prospect that claims the Acton Institute is part of a larger network of organizations behind “a decidedly different message than Pope Francis does when it comes to the economy and climate change.”  Gehring, Catholic program director at Faith in Public Life, labels various free-market organizations as “libertarian” and asserts that “libertarian thought … is the exact opposite of Catholic teaching.”

Gregg begins his response by noting some of the contributions that great libertarian thinkers such as Hayek and Mises have made to economics:

Libertarianism’s great strength lies in economics. Prominent twentieth-century libertarian economists, such as Ludwig von Mises and Friedrich von Hayek, made major contributions to the critique of socialist economics. While ridiculed by some at the time, their criticisms turned out to be spot-on.

In Socialism (1922), for example, Mises illustrated that socialist economies can’t replicate the market price system’s ability to signal the supply and demand status for countless goods and services to consumers and producers at any one point in time. However intelligent and statistically equipped the top-down planners might be (whether they take the form of a Communist politburo, a Fascist dictator, or a 1970s British government), they simply cannot know the optimal price for any good or service at any point in time. Any attempt to dictate prices from the top-down will lead, paradoxically, to economic disorder and dysfunction.

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Samuel Gregg, director of research at Acton Institute, was recently interviewed by Carl E. Olson of Catholic World Report about his new book For God and Profit.  Gregg is a frequent contributor to CWR on the topics of political economy, economic history, ethics in finance, and natural law theory.

The first question asked of Gregg was “Is it fair to say that Church teaching about money and economics is widely misunderstood and often misrepresented? If so, what are some of the reasons?” His response:

Catholic social teaching outlines clear principles for people who want to addresses issues surrounding finance and economic life in a way that takes human flourishing seriously. These include the principles of the dignity of the person, solidarity, subsidiarity, the preferential option for the poor, the principle of common use, the principal of private property, to name just a few. These principles are drawn from Revelation and the natural law. But they are not well understood by some Catholics. One reason for this is that they tend to be buried—including, I must say, in the social encyclicals—amidst a range of historically-contingent reflections and the offering of prudential judgements on present-day affairs.

The English language version of Rerum Novarum (1891) is about 14,000 words. Laudato Si’ (2015) is approximately 40,000 words. More than one person has suggested that this partly reflects the magisterium entering into the details of far too many economic subjects, the vast majority of which Catholics are free to disagree about among themselves. If we’re interested in equipping lay Catholics to think through economic issues, more time should be invested in explaining principles of Catholic social teaching and how they relate to each other. Less time, I’d argue, should be spent addressing questions upon which Catholics may legitimately hold a variety, even sometimes quite different views.

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Blog author: KHanby
Tuesday, September 6, 2016
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Economic Growth

Economic Growth in the U.S. has slowed down compared to historical averages according to recent reports from the Bureau of Economic Analysis.  Some are claiming that this is okay and that it is “normal” while there are others who disagree and understand that economic growth is essential to a prospering society.  This division among people on how they view economic growth also represents a division among the two major political parties on how they view economic growth.  Director of Research here at the Acton Institute, Samuel Gregg, recently penned an article for stream.org about the fundamental differences between the Democratic and Republican Party platforms on the topic of economic growth.

Gregg starts out by explaining the Dems position on economic growth and how they focus most of their economics on redistribution: (more…)

free tradeWhile the Democratic and Republican parties disagree on just about every other issue, there is one area where they seem to have common ground.  That is the issue of trade and, unfortunately, neither of the two major political party’s platform takes a liberal position on the issue.  Director of Research at the Acton Institute, Samuel Gregg, recently highlighted in an article for The Stream how the two parties have taken positions against free trade and how ultimately this will hurt the American economy.  Gregg starts his article by explaining how the alternative to free trade is protectionism which will lead directly to cronyism:

Protectionism also encourages unhealthy relationships between politicians and businesses. The latter have an incentive to lobby for favors rather than improve their performance in the marketplace. And politicians expect something in return for passing legislation that favors particular industries and businesses. In this sense, protectionism feeds a major problem already harming American politics and the economy: crony capitalism.

Gregg goes on to explain both party’s platform on the issue of trade, starting with how the growing skeptic ism of free trade in America has infiltrated the Republican platform.  This is really not surprising when considering how closely Donald Trump’s nationalistic rhetoric aligns with the ideas of protectionism.  Gregg says: (more…)