Posts tagged with: Samuel Gregg

Acton’s director of research Samuel Gregg is up at Public Discourse, with a piece titled “Monetary Possibilities for a Post-Euro Europe.” With his usual mix of sophisticated economic analysis and reference to deep principles, Gregg considers European countries’ options should the eurozone fail. If that happens, he says, “European governments will have a once-in-a-lifetime opportunity to rethink the type of monetary order they wish to embrace.”

One such scenario is a three-way monetary division within the EU that reflects the differing political commitments and economic priorities of different nations. Germany and the more fiscally responsible eurozone members such as Austria, Finland, and the Netherlands could, for instance, decide to reconcile themselves to being the only ones with the necessary fiscal and monetary discipline to maintain a common currency.

Alongside this bloc would be two other groups. One would consist of those EU countries such as Britain, Sweden, and Denmark that have maintained their own monetary systems because of reservations about the euro’s implications for national sovereignty. Another group would include EU nations such as Greece, Portugal, and Italy that are simply unable or unwilling to embrace the disciplined monetary and fiscal policies required by a common currency; these nations would consequently find themselves outside the eurozone and reverting to their national currencies.

A more radical monetary opportunity for a post-euro EU would be currency competition. This was once proposed by Britain’s Margaret Thatcher as an alternative to the present common currency. Contemporary proposals for currency competition, such as that advanced by Philip Booth and Alberto Mingardi, involve the monetary authorities of different countries authorizing the use of currencies alongside the euro in domestic settings other than their own. Consumer choice rather than state sovereignty would thus ultimately determine which currencies were used.

Yet another option would be the embrace of what might be called a European gold standard. In the 1950s and 1960s, the German economist Wilhelm Röpke argued that European monetary integration could occur via a nucleus of countries agreeing to adhere to a gold standard, much as had happened somewhat spontaneously in the nineteenth century through a process of unilateral decision-making by individual countries. Once this had occurred, adherents of such a gold standard would have to insist upon all members maintaining monetary discipline as well as freedom and stability in foreign exchange markets.

The stability of the European currency would be assured not by EU bureaucrats, but by the gold standard itself, and by allowance for the expulsion of countries that abuse their big-boy privileges.

Britain just rejected an EU treaty because the Conservative Party decided Brussels was trying to capitalize on the Mediterranean crisis by grabbing more power. The three proposed currency models, Gregg argues, would maintain countries’ freedom by yanking monetary power from central bureaucrats who exercise political power. He reflects further on the composition and history of the eurozone, on the countries’ political and economic freedom, and on what Röpke would have to say in the rest of the piece.

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

German Chancellor Angela Merkel is congratulated in late September after the German parliament ratified key reforms of the eurozone's bailout fund

At National Review Online, Acton Research Director Samuel Gregg observes that “much of Europe’s political class seems willing to go to almost any lengths to save the euro — including, it seems, beyond the bounds permitted by EU treaty law and national constitutions.” Excerpt:

“We must re-establish the primacy of politics over the market.” That sentence, spoken a little while ago by Germany’s Angela Merkel, sums up the startlingly unoriginal character of the approach adopted by most EU politicians as they seek to save the common currency from what even Paul Krugman seems to concede is its current trajectory towards immolation.

As every good European career politician (is there any other type?) knows, the euro project was never primarily about good economics, let alone a devious “neoliberal” conspiracy to let loose the dreaded market to wreck havoc upon unsuspecting Europeans. The euro was always essentially about the use of an economic tool to realize a political grand design: European unification. Major backers of the common currency back in the 1990s, such as Jacques Delors and Helmut Kohl, never hid the fact that this was their ultimate ambition. Nor did they trouble to hide their disdain of those who thought the whole enterprise would end in tears.

Read “Eurocracy Run Amuck” on NRO.

Protesters outside parliament on May 5 in Athens, Greece.

On the blog of The American Spectator, Acton Research Director Samuel Gregg looks at how Europe refuses to address the root causes of its unending crisis:

Most of us have now lost count of how many times Europe’s political leaders have announced they’ve arrived at a “fundamental” agreement which “decisively” resolves the eurozone’s almost three-year old financial crisis. As recently as late October, we were told the EU had forged an agreement that would contain Greece’s debt problems — only to see the deal suddenly thrown into question by internal Greek political turmoil, which was itself quickly overshadowed by Italy’s sudden descent into high financial farce.

No doubt many of these dramas reflect commonplace problems such as governments having difficulty reconciling promises made in international settings with domestic political demands. The apparently unending character of Europe’s crisis, however, is also being driven by another element: the unwillingness of most of Europe’s political establishment to acknowledge the root causes of Europe’s present mess.

One such mega-reality is the unsustainability of the pattern of low-growth, big public sectors, heavy regulation, large welfare states, aging populations, and below-replacement birthrates that characterizes much of the eurozone. Even now, it’s difficult to find mainstream EU politicians who openly concede the high economic price of these arrangements.

Read “Can’t Face Economic Reality” on The American Spectator.

Director of Research Samuel Gregg’s thoughts on the debate are up at The Corner. He sees a parallel between the Italian crisis unfolding across the ocean and the problems facing the United States — particularly in Michigan, where this debate was held. The collapse of Italy would certainly be a dramatic illustration of the shortcomings of crony capitalism, and Gregg thinks a candidate could find a majority of voters who don’t want that to happen.

With the Italian-flavored shadow of the European Union’s ongoing financial implosion overhanging the United States, it was expected that America’s own fragile economic state would be front-and-center at this debate.

This time, however, there was less argument among the GOP candidates. Instead, there were far more direct critiques of (1) President Obama and (2) the pattern of crony capitalism with which more and more Americans are visibly losing patience. The debate’s setting — the state of Michigan — is a living exemplar of all the fallacies of bailouts and business-union collusion, as well as a failure to promote the type of innovation that produces wealth but that also threatens businesses (like the Detroit car companies) that don’t like competition.

Also noticeable was the increased willingness of the candidates to advocate market solutions to any number of problems, the most prominent being America’s ongoing mortgage farce, the looming crisis of student debt, and the inexorable rise in health-care costs. That’s a welcome development. If this trend keeps up, maybe one of them will make the dismantling of crony capitalism a central plank of his platform. That won’t please the likes of General Electric and the City of Chicago, but there are surely votes there.

Over at National Review Online, Acton Research Director Samuel Gregg looks at a new study which shows a growing wealth gap between the senior set and those under the age of 35. The boomer generation also has the political clout to protect that security:

… another factor that makes older Americans’ economic position even more secure than that of younger generations is the disproportionate sway exerted by older folks on politics, much of which is directed to maintaining the entitlement status quo. From the narrow standpoint of their own economic self-interest, why should older people vote for the type of entitlement reform that is indispensible if America is to get its public-debt problem under control? Many of this quite numerous demographic will ask, why should they have to scrimp after having paid into Social Security all their working lives?

Members of the supercommittee charged with finding $1.2 trillion to cut from the deficit surely know that proposals such as raising the retirement age are bound to encounter enormous opposition from AARP-like groups — especially the ones dominated by those baby boomers who are now retiring and whose entire lives have reflected an après moi, le déluge mentality. Supercommittee members are also no doubt conscious that older people — many of whom are already very unhappy about Obamacare’s forthcoming changes to Medicare — have an alarming habit of turning out to vote in far greater numbers than their children and grandchildren.

Read Samuel Gregg’s “America’s Gerontocracy” on NRO.

Also see PowerBlog postings on “intergenerational justice” by Jordan Ballor, executive editor of the Journal of Markets & Morality.

Writing on National Review Online’s Corner blog, Acton Research Director Samuel Gregg looks ahead to the Census Bureau’s release on Monday of poverty numbers based on a new measurement and analysis of those new numbers in a recent New York Times article:

Some of the reports using these fuller measures — more of them produced by organizations with no particular ideological ax to grind — claim that black Americans are less poor than previously supposed and that some of the officially poor are, well, not poor. This doesn’t mean that these groups are necessarily well-off. But what is revealing is that, as the Times’ piece states, “virtually every effort to take a fuller view — counting more income and more expenses — shows poverty rising more slowly in the recession than the official data suggests.” And if that is not enough, the article goes on to state that “while the official national measure shows a rise of 9.8 million people, the fuller census measures show a range from 4.5 million to 4.8 million.”

Read “Poverty: It’s More Complicated Than You Think” on The Corner.

Wang Yue

On The American Spectator, Acton Research Director Samuel Gregg looks at the death of Wang Yue, a Chinese toddler run over — twice — in a public market while passersby continued on their way.

Gregg:

Accidents happen. But what made little Wang Yue’s death a matter for intense public discussion was the fact that nearly 20 people simply walked by and ignored her plight as she lay bleeding in the gutter.

What, hundreds of Chinese websites, newspapers and even state media outlets are asking, does this say about Chinese society? Have Chinese people lost all sense of concern for others in the midst of the scramble for wealth unleashed by China’s long march away from economic collectivism? One local official summarized the collective angst by stating: “We should look into the ugliness in ourselves with a dagger of conscience and bite the soul-searching bullet.”

Gregg points to widespread business-government corruption as a major contributor to China’s moral crisis:

The problem, from the perspective of China’s party-government-military elites, is such soul-searching may lead increasing numbers of Chinese to conclude that the circumstances surrounding Wang Yue’s death are symptomatic of deeper public morality problems confronting China, some of which could significantly impede its economic development.

One such challenge is widespread corruption. By definition, corruption doesn’t easily lend itself to close study. Its perpetrators are rarely interested in anyone studying their activities. Few question, however, that there’s a high correlation between corruption and widespread and direct government involvement in the economy. The more regulations and “state-business” partnerships you have (and China has millions of the former and thousands of the latter), the greater the opportunities for government cadres to extract their personal pound of flesh as the price of doing business.

Read “China’s Morally Hollow Economy” on the website of The American Spectator.

Acton’s prolific director of research Samuel Gregg writes at Crisis Magazine about those who would modernize the Catholic Church (theologically): “Dissenting Catholics’ Modernity Problem.” His reflection centers on the thought of Pope Benedict XVI, whose recent visit toGermany brought the modernizers out of the woodwork, and whose speeches and writings have placed the faithful in their proper context.

Judging from the hundreds of thousands of Germans who attended and watched Pope Benedict XVI’s September trip to his homeland (not to mention the tsunami of commentaries sparked by his Bundestag address), the pope’s visit was — once again — a success. And, once again, it was also an occasion for self-identified dissenting Catholics to inform the rest of us what the Church must do if it wants to remain “relevant.” To no-one’s surprise, their bottom-line remains the same. The Church is “out of touch.” Why? Because it’s insufficiently “modern.”

The “we-must-be-more-modern” argument reflects the workings of a logic that privileges whatever is considered “contemporary” (an ever-moving target) over the knowledge imparted by Christ to His Church from its very beginning.

Such reasoning often runs along the following lines. In modernity, X is considered not good; ergo, the Church must accept X is not good. Or, modern people regard X as good or licit; ergo, the Church should teach X is good or licit.

Hmm…

You don’t need to be a professional philosopher to recognize that these are what logicians call non sequiturs: arguments in which the conclusions don’t follow from the premises. The fact that something is considered modern tells us nothing about its goodness or evil, let alone whether it conforms to the truth found in Divine Revelation. It also produces very strange arguments such as the claim made in 1968 (of course) by the ex-Jesuit theologian John Giles Milhaven, that “modern people” (whoever they are) by virtue of their “modernity of spirit” (whatever that means) enjoyed a type of “standing dispensation” from God to pursue what they “feel” to be good.

Gregg sets this post-Enlightenment ethic of feelings against the Church’s foundation in reason, which makes it truly catholic. Those who would re-orient the Church,

marginalize the conviction that the fullness of Christian truth is to be found in the reasonable faith entrusted to and proclaimed by the Church. And the faith of that Church goes beyond the particular views held by us today to embrace the right belief (orthos-doxa) of the whole communio of believers, the living and the dead, from the apostles onward — the truth of which is confirmed by the consensus of the Church Fathers, the lives of the saints, the witness of the martyrs, and the teaching authority of the successors of Peter and the other apostles.

Of course, Catholicism doesn’t have an in-principle opposition to the post-Enlightenment world per se, any more than it allegedly locates everything that is good and true in the 13th century. Any effort to associate the fullness of Catholic faith with any one historical period risks relativizing those truths knowable by faith and reason that transcend time and bind Catholics across the ages.

Perhaps such a relativizing is what many dissenting Catholic activists want. If so, they should concede that this would mean making the Church in their own image rather than that of Christ the Logos. And there is no surer way of making the Church truly irrelevant in a modern world that desperately needs more reason and light than emotivism and darkness.

Full text here.

Acton On The AirIn the wake of the release of the Vatican’s Note on Global Financial Reform, the media has called on Acton for comment and analysis. Presented here are three interviews on the topic from the past few days; we’ll post more as audio becomes available.

On Monday afternoon, Acton’s Director of Research Dr. Samuel Gregg joined host Al Kresta on Kresta in the Afternoon to discuss the problems with the note:

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The following day, Dr. Gregg joined host Drew Mariani on Relevant Radio to discuss the same topic:

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Finally, on Tuesday Acton President Rev. Robert A. Sirico made an appearance on Kresta in the Afternoon that served as a preview to his discussion of the good and bad portions of the Vatican’s note in today’s Wall Street Journal, and sheds light on exactly what a “note” from the Vatican is:

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Update: Sam Gregg audio clips are now working!

Acton’s director of research, Samuel Gregg, blogs about Cardinal Pell’s speech on global warming over at The Corner. He summarizes the remarks and then provides their ecclesiastical context, defending both the cardinal and the Pope from the radical left and from charges of submission to intellectual fashion.

[Pells] key points are simply that (1) the scientific debate is not over, (2) the climate movement has always seemed more driven by ideology than evidence, and (3) this isn’t a basis for implementing extremely costly policies.

The context of Cardinal Pell’s remarks is the growing concern among Church leaders about the radical green movement, whose positions are not confined to environmentalism.

It’s no secret that when it comes to those moral questions that are truly non-negotiable for Catholics (e.g., abortion, euthanasia), Greens invariably take the most permissive positions. Their hostility to robust religious-liberty protections is a matter of record. Moreover, anyone who delves into “deep Green” literature soon discovers frankly humanophobic ideas. Such are the concerns of some Catholic bishops that, before elections were held in the Australian state of New South Wales in March this year, Pell and most of the state’s Catholic bishops issued an unprecedented pre-election statement warning their flocks against the more troubling, less publically mentioned parts of the Greens’ party platform.

And what of Cardinal Pell’s friendship with Pope Benedict, who has been called the “green pope?” The mainstream media may try as hard as it likes, but

Benedict himself has wondered on many occasions (including during his recent Bundestag speech) about the disconnect between many peoples’ contemporary angst about the environment and their seeming indifference to what Benedict calls the “human ecology” of the natural law, which provides the only truly rational basis for human freedom, dignity, and civilization.

Leaving aside efforts to establish nonexistent tensions between cardinal and pope, the usual suspects — secular and religious — will surely excoriate Pell for this lecture. But in an age where far too many Christian thinkers are way too submissive to transitory intellectual fashions that make them acceptable at fashionable cocktail parties but also partakers in profound intellectual incoherence, it’s refreshing to know not everyone is so intimidated.