Posts tagged with: socialism

20140305-cuba-exteriors-sl-1538_53ee39d1154ce422fc2278062244c068What just happened with Cuba?

Yesterday, President Obama announced that, “the United States of America is changing its relationship with the people of Cuba.” He instructed Secretary Kerry to immediately begin discussions with Cuba to reestablish diplomatic relations that have been severed since 1961. High-ranking officials will visit Cuba and the U.S. will reestablish an embassy in Havana. He also instructed Secretary Kerry to review Cuba’s designation as a State Sponsor of Terrorism.

The President also says the U.S. will take steps to increase travel, commerce, and the flow of information to and from Cuba. Americans who travel to Cuba will be able to use American credit and debit cards on the island. U.S. financial institutions will be allowed to open accounts at Cuban financial institutions and exporters will be able to sell goods to the country.

Can the President do all that?

Sort of. The president controls the State Department, but the Congress controls the money. Senator Rubio (R-FL) has said that he’ll do everything he can to block funding for a Cuban embassy and prevent an ambassador from being selected.

The trade embargo between the U.S. and Cuba also cannot be lifted without congressional approval. The executive branch has the authority under current law merely to issue licenses that permit US citizens and corporations to do business with Cuba, travel there, and send money to family members there.

Why the change now, after 50 years?
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Summer-JobsGiving disadvantaged youth a summer job reduces violent crime, according to a new study published to the journal Science.

In a randomized controlled trial among 1,634 high school youth in Chicago, assignment to a summer jobs program decreases violence by 43 percent over 16 months (3.95 fewer violent-crime arrests per 100 youth). The decline occurs largely after the 8-week intervention ends.
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searching-blindfolded-manIn the latest edition of First Things, Acton’s Director of Research Sam Gregg discusses how adherence to Catholic social teaching does not require a limited economic viewpoint. In fact, such a limited vision, or blindness as Gregg states in the article’s title, is what holds back development in many parts of the world. (Please note that the full article is available by subscription only, but is excerpted here.)

Gregg recounts how the aggressive or “Tiger” economies of East Asia have resulted in positive changes, despite problems such as endemic corruption.

To be sure, not everything is sweetness and light in East Asia. Memories of the region’s severe financial meltdown in 1997 linger. More ominously, China’s mammoth banking system is a hopelessly run extension of its government. The same banks are heavily and rather incestuously invested in propping up thousands of underperforming Chinese state-owned enterprises. That’s a recipe for trouble. Corruption remains an endemic problem, most notably in China and India, which rank an unimpressive 96 and 134, respectively, in the World Bank’s 2014 Ease ofDoing BusinessIndex, while Singapore, Hong Kong, South Korea, Malaysia, and Thailand are ranked in the top twenty.

Nonetheless, the overall benefits of greater economic liberty in East Asia can’t be denied. In 2010, the Asian Development Bank reported that per capita GDP increased 6 percent each year in developing Asian countries between 1990 and 2008. Christians should especially consider how this growth has contributed to the reduction of poverty. The ADB estimated that between 1990 and 2005 approximately 850 million people escaped absolute poverty. That is an astonishing figure.

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[Part 1 is here.]

In his case against capitalism, Wendell Berry argues that the average person not only is anxious because he depends upon so many other people for his wellbeing (truckers, utility companies, etc.) but that he ought to be anxious. There’s a grain of truth here. We shouldn’t become helpless sheep without a clue what to do were the power to go down for a couple of days in January. But inter-dependency, far from a sign of cultural sickness, is the mark of a healthy society, one where enough trust exists to allow for broadening circles of productivity and exchange, for markets that extend beyond clan and tribe. (more…)

Part 1 is here.]

An economically free society doesn’t have to be hyper-utilitarian, materialistic and banal; and yet, here we are, living in a capitalist age marked by these very features. Some social conservatives who see capitalism as one of the main culprits argue that we should turn away from both socialism and greedy capitalism, toward a more humanitarian and community-based approach, toward a small-is-beautiful aesthetic of farmer’s markets, widespread property ownership, social responsibility and local, collective enterprise, a political and economic strategy that would allow us to move beyond the noisy, vapid, bustling tackiness that has come to characterize so much of modern life.

The poet farmer and essayist Wendell Berry, and journalist and Crunchy Cons author Rod Dreher are among the more prominent contemporary defenders of this view. They build on the earlier work of writers such as E.F. Schumacher, Malcolm Muggeridge, G.K. Chesterton and Hilaire Belloc.

Belloc, in particular, often regarded as the father of Distributism, advocated government policies that would divide productive property more equally and spur the economy toward more buy-local patterns and greater individual contact with the land. His Distributist vision called for an active, top-down approach to the reallocation process. Here’s how Belloc put it in his 1936 work “An Essay on the Restoration of Property”:

We must seek political and economic reforms which shall tend to distribute property more and more widely until the owners of sufficient Means of Production (land or capital or both) are numerous enough to determine the character of society…. the effort at restoring property will certainly fail if it is hampered by a superstition against the use of force as the handmaid of Justice.

There are some problems with this vision of cultural renewal. (more…)

[Part 1 is here.]

The free economy frees entrepreneurs to create new wealth for themselves and others, which brings us to the issue of consumption. In his book Crunchy Cons, conservative author Rod Dreher describes consumerism this way: “Consumerism fetishizes individual choice, and sees its expansion as unambiguous progress. A culture guided by consumerist values is one that welcomes technology without question and prizes efficiency…. A consumerist society encourages its members both to find and express their personal identity through the consumption of products.”

Dreher’s critique of consumerism is pointed, and many people, including many Christians, could benefit from hearing it. At the same time, though, Dreher’s description runs the risk of obscuring the crucial differences between consumerism and capitalism.

It’s true that capitalist economies are far better at wealth creation than socialist economies, which is why freer economies tend to have fewer people living in extreme poverty. But capitalism and consumerism—far from being necessarily joined at the hip—are not even compatible over the long term. A moment’s reflection suggests the reason. (more…)

[Part 1 is here.]

Even a cursory look at the annual list of the freest and least free economies in the world suggests a strong correlation between economic freedom and the prosperity of its citizens, including its poorest citizens. But there’s another correlation that tends to capture the attention of those making a cultural critique of the free economy. They note that America is economically free, and that it’s experiencing cultural decay, so they conclude the first causes the second. The conclusion isn’t absurd, but it also doesn’t follow necessarily. Sometimes correlation is due to causation, and sometimes it isn’t. To avoid confusion and false conclusions, we need to distinguish the idea of economic freedom from some things it isn’t.

A lot of people view economic freedom as synonymous with big corporations cutting sweetheart deals with politicians to suppress competitors and consumer choice. This stuff goes on all the time, of course, but it isn’t economic freedom. It’s the leviathan state and big business colluding to manipulate the market, to stack the deck in favor of political insiders. Every market economy on the planet has some of this sort of thing, since economies are operated by fallen human beings. The question is, where does cronyism tend to be the worst? (more…)

The West has made some remarkable steps forward culturally in the past several generations, as, for instance, in the areas of civil rights (the unborn being a notable exception), race relations, and cooperation among Christians of different traditions. We shouldn’t indulge a false nostalgia that overlooks this progress. That being said, you can visit almost any major city in the free world today and find evidence of cultural decay on a host of fronts: malls dripping with images of sensuality and hedonism; girls from respectable, law abiding families dropped off at school dressed like prostitutes; boys sitting beside them in class able to pull up a world of pornography on their smartphones and often doing so; chronically high divorce rates; a plummeting number of homes with the biological father present; commercials telling you, implicitly or explicitly, to Obey Your Thirst; recreational drug abuse—on and on we could go.

The challenge extends even to what many of us would characterize as “good homes.” (more…)

vietnam-protestsWhat is going on in Vietnam?

For decades, China and Vietnam have clashed over control of parts of South China Sea, which is rich in oil and fish. Earlier this month, China moved an oil drilling rig into waters claimed by Vietnam. The Vietnamese government sent vessels trying to stop Beijing’s deployment. Chinese ships responded by firing water cannons, which sparked protests in Vietnam. Thousands of protestors torched Chinese-owned businesses and factories. On May 18, Vietnamese security forces moved to stop the protests while the Chinese government sent four ships to evacuate Chinese citizens from Vietnam.

Where exactly is Vietnam?

Vietnam is the easternmost country on the Indochina Peninsula in Southeast Asia. The country is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea to the east. Although roughly the size of New Mexico, Vietnam has a population of over 89 million, about the same as California, New York, and Texas combined. It is the world’s 13th-most-populous country, and the eighth-most-populous Asian country.

What type of government and economy is in place in Vietnam?
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Terminator-2-Judgement-Day-posterI oppose implementing Skynet and increasing minimum wage laws for the same reason: to forestall the robots.

It’s probably inevitable that a T-1000 will return from the future to terminate John Connor. But there is still something we can do to prevent a TIOS from eliminating the cashier at your local McDonalds.

In Europe, McDonalds has ordered 7,000 TIOSs (Touch Interface Ordering Systems) to take food orders and payment. In America, Panera Bread will replace all of their cashiers with wage-free robots in all of their 1,800 nationwide locations by 2016. There is even a burger-making robot that can churn out 360 gourmet hamburgers per hour.

I, for one, welcome our new fast-food robot overlords. I’m just not ready for them yet.
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