Posts tagged with: Samuel Gregg

Over at National Review Online, Acton Research Director Samuel Gregg recaps President Obama’s State of the Union address:

There is always something surreal about a Chicago politician talking about “fairness” and “playing by the rules.” There is something even more bizarre about a president talking about the need to expand energy production after his administration has generally undermined significant progress in facilitating energy development for three years in the middle of a recession. And who would describe Detroit as “on the way back”? A stroll down the ghost town otherwise known as downtown Detroit — which is teetering on the edge of being put into administration — would suggest the opposite. It’s not often that I agree with very much said by the New York Times’s Maureen Dowd, but this State of the Union speech illustrated that the lady was dead right in describing the Obama presidency as a bubble within a bubble.

Read it all on NRO.

[Thanks to RealClearWorld, ThePulp.it, NewsBusters and PewSitter.com for linking to this commentary.] Over at the American Spectator, Acton Research Director Samuel Gregg points to Europe’s “perceptible inability” to acknowledge some of the deeper dynamics driving its financial crisis. And these are primarily a “slow-motion population implosion” complicated by the exodus of young European Union citizens and the return of hundreds of thousands of immigrants to their homes in developing nations. That is an ominous development for a region where the dependency rate — the ratio of retirees per member of the labor force — has ratcheted up as the welfare state has ballooned over several decades.

Gregg:

These facts have made some Europeans willing to ponder the necessity of labor-market and welfare reform, not least because those countries that have weathered the crisis better than others (e.g., Germany and Sweden) actually implemented such changes in the 2000s. Getting Europeans to talk publicly about the continent’s population-trends and their economic consequences, however, is a different matter.

Why? One reason is that many Europeans have long been in thrall to the over-population gospel. Long before Paul Erhlich’s The Population Bomb (1968) — whose doomsday future-scenarios of a world devastated by famines, mass disease, and social unrest unleashed by overpopulation never materialized — numerous European economists had bought into this thesis.

In 1798, the Anglican vicar and one of the first modern economists, Thomas Malthus, published his Essay on the Principle of Population. This argued that growing populations would produce an increasing labor-supply. The result, Malthus insisted, would be lower wages and therefore mass poverty. “The power of population,” he claimed, “is so superior to the power of the Earth to produce subsistence for man, that premature death must in some shape or other visit the human race.” Another English philosopher-economist, John Stuart Mill, was so convinced by Malthusian arguments that he actually spent time in London parks distributing birth-control pamphlets to bemused onlookers.

Read Samuel Gregg’s “Europe in Demographic Denial” on the American Spectator.

On National Review Online, Acton Research Director Samuel Gregg reacts to musings by conservative writers David Brooks and Michael Gerson about Rick Santorum’s political rise in the GOP primaries and how his social views might be expressed in government policy. Would a President Santorum usher in a smaller but more “transformational” role for the state in addressing social ills? Gregg:

On the one hand, self-described compassionate conservatives understand there is no such thing as morally neutral laws or morally indifferent government policies. At some level (even quite remote), all laws and policies embody some type of moral logic (which is either coherent or incoherent). Thus they cannot help but shape — for better and worse — a society’s moral culture. That’s just one reason among many why the legal treatment of issues like abortion, euthanasia, pornography, and marriage matters, and why they can’t, as some libertarians claim, be simply relegated to the private sphere.

At the same time, it seems to me that many compassionate conservatives don’t fully appreciate the moral, social, and legal urgency of reducing the state’s size and reach, instead of primarily focusing upon streamlining government’s role.

Read Samuel Gregg’s “The Problem with Compassionate Conservatism” on NRO.

Acton President Rev. Robert A. Sirico and Research Director Samuel Gregg were interviewed for a LifeSiteNews.com article about a decision by Catholic Charities of the Diocese of Tulsa to rely strictly on private donations for its work. Reporter Ben Johnson observed that the policy shift “stands in stark contrast to most of the benevolent institution’s other affiliates. Catholic Charities around the country received $1 billion from the government, approximately two-thirds of their funding.” Johnson:

Some critics believe only foregoing government funds altogether will prevent the state from coercing religious organizations to violate their faith. “What Catholic Charities of Tulsa is doing is showing the way forward for Catholics and other Christians who want to be faithful to the ancient Church’s age-old moral teachings, and who want to assist those in need without compromising the truth of the Gospel,” wrote Dr. Samuel Gregg, research director at the Acton Institute for the Study of Religion and Liberty, in a statement e-mailed to LifeSiteNews.com.

Fr. Robert Sirico, the president of Acton, agrees. “I think we need to separate the giving from the mechanism of the state,” he said. “There’s the threat that he who drinks the king’s wine sings the king’s song.” Deacon Sartorius shares that concern. “It’s natural to want to please the one who is providing the money for your program,” he said.

[ ... ]

Dr. Gregg predicted other religious charities will soon rely exclusively on private donors. “It won’t be long before other Catholic charitable work throughout the United States and abroad will head down the same path – either because more Catholics will see the good sense embodied by the Tulsa example, or because they will be forced to by governments seeking to impose the agenda of secularist relativism upon Catholic and other Christian organizations.”

Read “Catholic Charity Rejects Gov’t Funding to Maintain Religious Liberty” by Ben Johnson on LifeSiteNews.com

Also see “Catholic Charities forgoes government funding, stays true to values” by Bill Sherman in Tulsa World (Dec. 17).

On the National Catholic Register, Kathryn Jean Lopez takes a look at the strong finish by Rick Santorum in the Iowa Caucuses. She writes that the candidate’s dead heat finish with Mitt Romney marks “the emergence of a different kind of Catholic candidate in American politics, one who refuses to give up the fight on social justice — substantively and rhetorically — in practice and linguistics.” Lopez interviews Acton Research Director Samuel Gregg, who observes that “where Santorum adds something distinctive to present economic debates is his willingness to envelop them in substantive moral arguments.”

Gregg suggests that the candidate harkens back to Alexis de Tocqueville’s insights about democracy in America. Toqueville, he told Lopez, was “among the first to sound warnings about democracy’s potential for sliding into the soft despotism that results when citizens start voting for those politicians who promise to use the government to give them whatever they want, while politicians deliver — provided the citizens do whatever the government says is necessary to meet everyone’s wishes (such as radically diminish economic freedoms). Welcome to the moral-economic disaster otherwise known as the European Union.”

Read more analysis from Samuel Gregg in “Veteran Pol Santorum Emerges From Iowa With a Timely Message” by Kathryn Jean Lopez on the National Catholic Register.

A practical man?

On the American Spectator, Acton Research Director Samuel Gregg examines the baleful influence exerted on economic thought and public policy for decades by John Maynard Keynes. Gregg observes that “despite his iconoclastic reputation, Keynes was a quintessentially establishment man.” This was in contrast to free-market critics of Keynes such as Friedrich Hayek and Wilhelm Röpke who generally speaking “exerted influence primarily from the ‘outside': not least through their writings capturing the imagination of decidedly non-establishment politicians such as Britain’s Margaret Thatcher and West Germany’s Ludwig Erhard.” Perhaps not so surprisingly, many of Keynes’ most prominent devotees are also “insider” types:

The story of Keynes’s rise as the scholar shaping economic policy from “within” is more, however, than just the tale of one man’s meteoric career. It also heralded the surge of an army of activist-intellectuals into the ranks of governments before, during, and after World War II. The revolution in economics pioneered by Keynes effectively accompanied and rationalized an upheaval in the composition and activities of governments.

From this standpoint, it’s not hard to understand why New Dealers such as John Kenneth Galbraith were so giddy when they first read Keynes’s General Theory. Confident that Keynes and his followers had given them the conceptual tools to “run” the economy, scholars like Galbraith increasingly spent their careers shifting between tenured university posts, government advisory boards, international financial institutions, and political appointments — without, of course, spending any time whatsoever in the private sector.

In short, Keynes helped make possible the Jeffrey Sachs, Robert Reichs, Joseph Stiglitz’s, and Timothy Geithners of this world. Moreover, features of post-Keynesian economics — especially a penchant for econometrics and building abstract models that borders on physics-envy — fueled hopes that an expert-guided state could direct economic life without necessarily embracing socialism. A type of nexus consequently developed between postwar economists seeking influence (and jobs), and governments wanting studies that conferred scientific authority upon interventionist policies.

Read Samuel Gregg’s “The Madness of Lord Keynes” on the American Spectator.

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.

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.