Posts tagged with: Samuel Gregg

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.

Five years ago today, Pope Benedict XVI delivered a talk titled “Faith, Reason and the University” at the University of Regensburg in Germany. The lecture set off a firestorm of controversy concerning Christian-Muslim relations. On National Review Online, Acton Research Director Samuel Gregg reflects, noting that calling it “one of this century’s pivotal speeches is probably an understatement.”

Gregg says that the reaction to the pope’s speech “underscored most Western intellectuals’ sheer ineptness when writing about religion.” More seriously:

… Regensburg shattered the inconsequential niceties that had hitherto typified most Catholic-Muslim discussions. Instead of producing more happy-talk, Benedict indicated that such conversations could no longer avoid more substantial, more difficult questions: most notably, how Christianity and Islam understand God’s nature. Regensburg reminded us that it matters whether God is essentially Logos (Divine Reason) or Voluntas (Pure Will). The first understanding facilitates civilizational development, true freedom, and a complete understanding of reason. The second sows the seeds of decline, oppression, and unreason.

But perhaps above all, Regensburg asked the West to look itself in the mirror and consider whether some of its inner demons reflected the fact that it, like the Islamic world, was undergoing an inner crisis: one which was reducing Christian faith to subjective opinion, natural reason to the merely measurable, and love to sentimental humanitarianism. The West, Benedict suggested, was in the process of a closing of its own mind.

Read “Benedict at Regensburg: Why It Still Matters” on NRO.

Over at National Review Online, a panel of experts reacts to last night’s jobs speech by President Obama. Acton’s director of research, Samuel Gregg, was not encouraged by what he heard: a jumble of disproven Keynesian theories and strong-man rhetoric. Gregg’s commentary in full:

Tonight’s speech was more of the same. President Obama’s hectoring lecture reflected the usual fare of Keynesianism mixed with mild nods to the private sector that we’re come to expect. It also embodied an abiding faith in government that would be touching if it weren’t so detached from economic reality. Granted, Paul Krugman will surely bewail that the president didn’t go far enough with this third stimulus plan. But that’s what it is.

There was much talk about fixing infrastructure. Public works is something even Adam Smith thought the state should do. But haven’t we been here before? Didn’t we hear something about “shovel-ready” jobs a while ago? Why should this time be different?

Likewise, on the president’s reference to mortgage relief: When will he understand that policies that slow down the market-clearing process merely prolong the pain?

Naturally, there was the now-monotonous call to increase taxes on those who, well, already pay most of the taxes. These are the same individuals and businesses whose capital fuels the creation of jobs—not the personifications ofAmerica’s economic problems who were sitting with the first lady: GE’s Jeff Immelt, the face of American corporate welfare, and the AFL-CIO’s Richard Trumka, the symbol of union obstructionism.

Over and over again, the president insisted: “You should pass this jobs plan—right away.” I thought the legislature’s job was to carefully assess legislation, not just roll over because the boss wants something. Such rhetoric—and the speech’s substance—suggests the president has never really left the mental horizons of Chicago politics. America is the poorer for it.

Yesterday, five leading Republican candidates participated in the Palmetto Freedom Forum, a serious debate on constitutional principles. Mitt Romney, Michelle Bachmann, Newt Gingrich, Ron Paul, and Herman Cain answered questions from Tea Party congressmen Jim DeMint and Steve King, and Princeton professor Robert P. George.

National Review Online has gathered reactions to the debate from notable conservatives; Acton director of research Samuel Gregg and senior fellow Marvin Olasky are among them. Gregg’s take-away is that American politics is shifting in two ways: first, constitutional conservatism is now seen as a winning message, and candidates are unafraid to disavow progressivism as a whole; and second, issues, particularly economic ones, once on the margins of political debate are now up for discussion in the mainstream.

Here is the full text of Gregg’s response.

If there was any theme linking the responses to the questions posed by Senator DeMint, Congressman King, and Professor George to five of the Republicans seeking their party’s nomination for president during today’s South Carolina debate, it was the need for America to return to its founding principles. Yes, there was substantive discussion of specific matters ranging from financial regulation to immigration. But again and again, most of the candidates articulated the principles—and subsequent policies—of constitutional conservation.

Politically this makes sense, because it helps to integrate American conservatism’s fiscal and social wings. But it also reflects many Americans’ consciousness that the last four years have seen an acceleration of a long drift away from the best of the American experiment. So whether it was different candidates quoting Jefferson at length, or Ron Paul and Robert George discussing the 14th Amendment’s finer details, evidence mounted that constitutional conservatism is going to be a major reference point for whoever ends up running against President Obama in 2012.

The second aspect of the debate worth underscoring is how issues once considered marginal to mainstream politics are becoming central. It’s no longer just Ron Paul talking about the need for sound money. The economic downturn and the failure of interventionist policies have turned the Fed and fiat money into live issues that no conservative candidate for office can ignore. Ben Bernanke—you’re on notice.

Director of Research Samuel Gregg has a piece in Public Discourse today as part of a series on the 2012 presidential election. “Fix America’s Economy: Two Principles for Reform” explains why limited government is better government, and how the principle of subsidiarity can guide regulation that governments undertake. From the essay:

The economist Arthur Brooks is exactly right when he notes that the end-game of America’s free enterprise culture is not the endless acquisition of wealth. The goal is human flourishing.

In much of Europe, a contrary attitude has long been characteristic of its economic culture: that if people are to lead fulfilling lives, they need to be given things and protected from risk. In policy and institutional terms, this translates squarely into the European social model, which is presently collapsing before our very eyes throughout the Old Continent.

Ironically, however, there is a scarcity of evidence that such policies actually help make people happy. Why? Because people who are always given things know that they have not earned what they have. As evidence, Brooks points to studies that underscore correlations between unearned income and dissatisfaction with life. These illustrate, for example, that welfare recipients are generally less happy than those who earn the same income through employment.

Still, there is a need for governmental regulation of free economic activity—for exceptions to the rule of non-intervention:

But how do we prevent the exceptions from becoming the rule and thus a rationalization for endless economic intervention by the government? Part of the answer lies in a second principle: the much-misunderstood idea of subsidiarity.

Subsidiarity may be summarized in the idea that “higher” organizations (such as governments) should normally not directly intervene in the life of “lower” communities (such as families, businesses, and churches).  Intervention by higher bodies is permitted, however, when (1) a “lower” community has proved itself manifestly incapable of addressing problems that properly fall within its sphere of responsibility; and (2) other communities closer to the problem are unable to resolve the difficulty.

Subsidiarity consequently tells us that in normal circumstances, the function of child-raising is properly performed by families. It also tells us that when a family proves incapable of addressing particular problems associated with child-raising, non-governmental actors such as churches should usually be the first to render assistance.

As Gregg writes in his conclusion, because the principles of economic freedom and subsidiarity both stem from our human nature, successful government cannot ignore them.

If the economy features as the biggest single issue in the 2012 election, defenders of the market should be willing to supplement empirical economic arguments with full-bodied contentions about the nature of human happiness and how we realize it. To do so would not only be consistent with the very best of the American Founders’ vision; it would also breathe new life into America’s great and ongoing experiment of ordered liberty.

In “Stop Coddling the Super-Rich” investor Warren Buffett, one of the world’s wealthiest men, makes a case for upping the tax rate on the “mega-rich” in America. In a response published on National Review Online, Acton Research Director Samuel Gregg observes that “this is a broken record that Mr. Buffett has taken to re-playing over the past five years.” He points out that the U.S. tax system is already heavily progressive (no pun intended) and that the label “mega-rich” may not be as obvious as Buffett would like us to believe:

It’s safe to say that a substantial number of these people operate small-to-medium-size businesses that don’t play the corporate welfare game a la General Electric, that are already subject to some of the world’s highest corporate tax rates (most of which is paid by the owners of companies), that reinvest much of their income in expanding their activities and taking on new risk, and, above all, that employ people. They are the engine of growth and employment in America today — not the United States government. Why on earth would we disincentivize them from creating value and jobs by raising their taxes?

Read Samuel Gregg’s “Taxing Warren Buffett” on NRO.

Blog author: lglinzak
posted by on Tuesday, August 9, 2011

Standard and Poor’s decision to downgrade the United States’ credit rating has everyone talking. Discussion has ranged from we shouldn’t take Standard and Poor’s decision seriously at all to this could be the beginning of the end for the United States if it doesn’t make immediate changes. In a roundup published by National Review Online, Samuel Gregg weighs in on how the credit downgrade should be understood:

There are many reasons to be cynical about ratings agencies. These are, after all, the same outfits that assured us collateralized-debt-obligation markets were doing fine just before they started imploding in 2007–2008. Their slowness in warning about the fading creditworthiness of corrupt entities such as Enron and government-sponsored enterprises such as Fannie Mae and Freddie Mac is a matter of record.

That said, Standard & Poor’s decision to downgrade America’s creditworthiness shouldn’t surprise us. It simply states in a pseudo-official kind of way what everyone — citizens, investors, politicians, and maybe even Paul Krugman — already knows: The failure of Washington’s neo-Keynesian policies combined with the long-term projections for entitlement-spending have lowered confidence in the U.S.’s ability to meet its fiscal obligations.

While the downgrade shouldn’t surprise anyone, Gregg notes that action needs to be taken in order for the United States to recover its credit rating. Such a change does not just consist of national fiscal policy or a balanced budget, but it also includes a transformation in attitude: Americans will need to adjust the expectations they have for their government.

Click here to read the article and those of other contributors to “Down on the Downgrade?” on NRO.

In an article appearing in the American Spectator, Samuel Gregg discusses the growth of religion in China, its system of crony capitalism, and its need to accept freedom. Opening the column, Gregg describes how the Catholic Church’s freedom from state control in China is at stake. Gregg later explains that there isn’t just corruption in China’s crony system of capitalism, but also in its society:

It’s abundantly clear, for instance, that China’s economy is hardly the capitalism envisaged by Adam Smith. Instead, it’s a crony-capitalist arrangement. One symptom of this is the extensive corruption prevailing throughout Chinese society.

In 2010, Transparency International ranked China as 78th out of 179 countries on its Corruption Perceptions Index. That made China only slightly less-corrupt than Russia! Moreover, as Yashen Huang illustrates in Capitalism with Chinese Characteristics (2008), apparatchiks from China’s Communist party, government, and military exercise far-reaching control over thousands of the businesses powering China’s development in the special economic zones. That’s a recipe for a growing culture of accelerating bribes, nepotism, and fraud.

Wiser heads in China, however, know crony capitalism isn’t infinitely sustainable. In the long-term, China needs the rule of law and a stable system of property rights — all of which implies limiting the capacity of those with political power to act arbitrarily.

But while rule of law and property rights are essential for sustainable economic growth, they are not enough. Equally important is a generally accepted moral culture that most people have internalized and generally follow.

The moral culture in China has been dismantled by the government. Gregg argues the rule of law and property rights are not enough for economic growth, China also needs a moral law. After the decimation of Confucianism, which provided the moral glue for the Chinese society, many are now turning to religion:

And religion is plainly on the rise in China. Five years ago, the English language version of the Communist Party’s newspaper, China Daily, reported on the results of studies done by Shanghai University professors which indicated that millions of Chinese — especially the young and particularly in the special economic zones — were becoming Christian.

This shouldn’t be too surprising. It is materialism that leads to atheism, not the growth of wealth per se. Economic liberty requires and encourages people to think and choose freely. But such thoughts can’t be quarantined to commercial considerations. With increasing wealth, many Chinese now have the time and resources to explore life’s more important questions. Many have found answers in Christianity.

Such developments, according to some Chinese officials, aren’t necessarily a bad thing. Back in 2006, the then-head of China’s religious affairs ministry, Ye Xiaowen, begrudgingly acknowledged the various Christian churches’ contributions to helping Chinese society cope with the effects of increasing wealth.

While China will benefit from a strong moral presence within its borders, which will aid in solving its corruption problems, Gregg foresees the Catholic Church and the Chinese government being at odds when the government questions doctrines or bishop appointments. There is a way out for China, as Gregg concludes, and that is by accepting freedom:

The way out, of course, is for China’s rulers to accept freedom’s indivisible character. Once you concede religious or economic liberty, it’s hard to quarantine its effects. Acknowledging this, however, would require China’s Communist Party to self-terminate its grip on political power. Regrettably, as history illustrates, Communists never do that — or at least not until it’s truly inevitable.

To read the full article click here.

Acton’s Director of Research Dr. Samuel Gregg has two new pieces today, in Public Discourse and The American Spectator.

The first is a response to Greg Forster’s “Taking Locke Seriously” on June 27 in First Things. In that article, Forster took issue with Gregg’s June 22 Public Discourse piece, “Social Contracts, Human Flourishing, and the Economy.” Gregg argues, in a July 29 response to Forster titled “John Locke and the Inadequacies of Social Contract Theory,” that Locke’s political thought is based in a false understanding of human nature, which any student must keep in mind. Locke’s unrealistic social compact theory, based as it is in a State of Nature myth, reveals his ignorance of man’s innate political drive, and thus his whole nature. Says Gregg,

Locke … has an inadequate grasp of the workings of intentionality, practical reason, and the will, and therefore of human freedom and human flourishing.

These insufficiencies might owe something to Locke’s metaphysics of the person, which essentially locates human identity in consciousness. As for Locke’s conception of the will, Locke specifies that “the will in truth signifies nothing but a power, or ability, to prefer or choose.” Taken together with his tendency to treat freedom as absence of constraint, these constitute a potent combination of dualism, voluntarism, and perhaps even nominalism.

Gregg’s other target is across the globe, but China’s leadership share the same nominalist confusion about human nature. What precisely they may think about human nature is not a matter of public record, but it’s a good bet they don’t agree with the Acton Institute. The Chinese government is having trouble controlling the economic freedom it has granted to citizens: it turns out morality and economics are connected, and now Chinese in free enterprise zones are turning to the Church for metaphysical answers Maoism can’t provide. That grounding is essential to a polity:

Back in 2006, the then-head of China’s religious affairs ministry, Ye Xiaowen, begrudgingly acknowledged the various Christian churches’ contributions to helping Chinese society cope with the effects of increasing wealth.

Beijing’s predicament, however, is that the same Christianity which provides people with a moral compass in rapidly changing societies also insists the state is not God and may not exercise religious authority over the Church. This position is especially pronounced in Catholicism. It receives doctrinal and canonical affirmation in Catholicism’s insistence upon the need for all Catholic bishops to be in full communion with St. Peter’s successors as Bishop of Rome. Among other things, this means Rome’s approval must be granted before ordination as a Catholic bishop is considered licit.

China is a living example of what starts to happen when the metaphysic of a people is deeply and swiftly uprooted. The political theory of John Locke threatens to encourage that same uprooting if it is not tempered with Christianity. Let us rejoice that even in China, the state does not seem to be able to quash man’s religious impulse.

Yesterday Senator Harry Reid finally proposed a budget plan – one week before the United States is set to default. It is about time that Senate Democrats joined President Obama and House Republicans in offering a concrete budget proposal; however, their budget plan passes the buck onto future generations.

The government cannot continue to leave budget woes to future generations, and this is exactly what Senator Reid is trying to do. In fact, after viewing a video found on his website, he seems rather proud of the fact that his budget proposal doesn’t touch the three largest entitlements—Social Security, Medicare, and Medicaid—which alone consist of 40 percent of federal spending in 2010 (entitlement spending makes up 57 percent of federal spending). Instead of making the tough call, proposing reforms and cuts to spare future generations from the large financial burden these programs bring, the Senate Democrats are deciding to continue with things as they are. Judging by the current financial state of the U.S. this is rather problematic.

The Senate Democrats’ budget proposal disregards the principles of stewardship. By not cutting or reforming entitlements they are not looking long term to ensure the creation of a strong and stable economy for our children and grandchildren.  Jordan Ballor in his commentary “Do Less with Less: What the History of Federal Debt and Tax Leverages Teaches” offers a pretty common sense solution for Senator Reid:

Raising taxes without such assurances, even for such a critical cause as the public debt crisis, is pure folly. To really address the structural deficits at the heart of the federal budget, particularly with respect to entitlement programs like Social Security, Medicare, and Medicaid (which together accounted for 40 percent of federal spending in 2010), the government simply needs to find ways to do less with less.

Entitlements have greatly contributed to our deficit problem, and a sound budget solution will recognize their contribution to the deficit and look to rectify the situation.

As Samuel Gregg articulates in “Deficit Denial, American-Style” the U.S. must pay off its debt if it hopes to economically grow and flourish:

After examining data on 44 countries over approximately 200 years, two economists recently found evidence suggesting that developed nations with gross public debt levels exceeding 90 percent of GDP (i.e., America) find that their medium-growth rates fall by one percent, while average growth declines by an even greater proportion.

The United States can begin down the path of prosperity by shrinking government and doing less with less and fostering an economic climate that is strong and vibrant for future generations.

Also see the Acton Institute’s  Principles for Budget Reform which can be viewed by clicking here.