Posts tagged with: socialism

Blog author: jsunde
Wednesday, December 28, 2016
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As protests for a $15-per-hour minimum wage continue to rage across the country, cities like Seattle and states like California and New York have already begun to adopt such schemes.

But alas, prices are not play things, and such measures are bound to reap a range of deleterious effects, from raised consumer prices to increased unemployment to reduced working hours to outright business closures. Contrary to the popular narrative, those consequences tend to hit small businesses and less-skilled workers first and hardest.

With the recent laws, the destruction has already begun. To illustrate the damage thus far, the Employment Policies Institute (EPI) is cataloging hundreds of stories on its Faces of $15 website, including a range of videos highlighting the frustrations and responses of business owners, employees, and faithful customers alike.

In the following 5 case studies, we see but a glimpse of the minimum wage’s cramping effect on human enterprise, creative service, and economic diversity.

1. Abbot’s Cellar

For Abbot’s Cellar, a newly founded restaurant in San Francisco, the recent wage hike made their start-up model unfeasible, even despite tremendous initial success. “How are businesses that have practically no margins as is – mom and pops, small businesses – how are they supposed to just absorb that?” asks Nat Cutler, one of the owners.

“San Francisco is a city that seems like it’s supposed to be built on a Bohemian, small-business, mom-and-pop-type vibe,” he continues. “That’s the culture of the city. I worry that the type of change that’s happening is going to take away from the great culture that was here…I wish a little more thought would be put into the long-term impact.” (more…)

Note: This is post #14 in a weekly video series on basic microeconomics.

What’s the difference between a wage subsidy and a minimum wage? What is the cost of a wage subsidy to taxpayers? Economist Alex Tabarrok looks at the earned income tax credit and how it affects low-skilled workers.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: What you should know about subsidies

Although the Cuban people continue to suffer and struggle under the weight of communist rule, many have been encouraged by even the slightest of Raul Castro’s incremental changes toward private businesses.

Out of a total population of roughly 11 million, the number of self-employed Cubans rose from 150,000 to 500,000 between 2010 and 2015. The state still controls the press, the internet, and most of the “formal” economy, but a small portion of the Cuban population is finally gaining the freedom to innovate and create on their own.

To explore that shift firsthand, entrepreneur and investor Marcus Lemonis recently visited the country to film a special edition of CNBC’s The Profit — walking the streets of Havana and talking one-on-one with the country’s “pioneers of capitalism.”

“Walking around the old city, I saw a place full of life, energized by the changes,” Lemonis says. “Instead of working for the State, thousands of Cubans are now working for themselves…A taste of capitalism has helped, but it’s just a taste.” (more…)

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Did Pope Francis just publicly endorse Communism? Recent comments have prompted many to suggest he has. During an interview with Eugenio Scalfari, they had the following exchange:

[Scalfari:] You told me some time ago that the precept, “Love your neighbour as thyself” had to change, given the dark times that we are going through, and become “more than thyself.” So you yearn for a society where equality dominates. This, as you know, is the programme of Marxist socialism and then of communism. Are you therefore thinking of a Marxist type of society?
[Francis:] “It it has been said many times and my response has always been that, if anything, it is the communists who think like Christians. Christ spoke of a society where the poor, the weak and the marginalized have the right to decide. Not demagogues, not Barabbas, but the people, the poor, whether they have faith in a transcendent God or not. It is they who must help to achieve equality and freedom” (emphasis added)

Acton’s director of research, Samuel Gregg, suggests that there’s something else going on. In a recent article for The Stream, he begins: “Marxists, Marxist ideas and Marxist regimes have brought death and destruction to millions. Yet according to Pope Francis, “if anything, the communists think like Christians.” What’s going on here?” He goes on to note that though some have accused the Pope of “Marxist sympathies,” that is simply not true: (more…)

Blog author: jcarter
Monday, November 14, 2016
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socialism-0916“In spite of socialism’s sorry track record, millions of well-meaning people think it’s a virtual synonym for compassion,” says Lawrence Reed. “But socialists themselves are constantly retreating from their own handiwork. It’s socialism until it doesn’t work, then it was never socialism in the first place. It’s socialism until the wrong guys get in charge, then it’s everything but.”

Socialism never seems to have any theory of wealth creation, only fanciful schemes for its reallocation after somebody goes to the trouble of creating it.

Oxford Dictionaries (whose slogan is “Language Matters”) defines socialism as “a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.”

What is meant by “the means of production, distribution and exchange should be owned or regulated by the community as a whole”? If you own a convenience store, are you supposed to put to some public vote the decisions about what to stock the shelves with or whom to hire for the night shift?

Read more . . .

Wall-E1Humans have a tendency to daydream about a day or a place where work is no more, whether it be a retirement home on a golf course or a utopian society filled with leisure and merriment.

But is a world without work all that desirable?

In a recent lecture at Southeastern Baptist Theological Seminary, the question is explored by Dr. Hunter Baker, winner of the Acton Institute’s 2011 Novak Award and author, most recently, of The System Has a Soul: Essays on Christianity, Liberty, and Political Life.

Countering the cultural priorities and pressures of the day, Baker outlines a robust Christian vision of work and the economy, drawing on thinkers such as Wilhelm Röpke and Lester DeKoster, as well as science fiction fixtures such as WALL-E, 1984, and Beggars in Spain.

“Work is a gift from God, not a curse,” says Baker. “…The science fiction dreams of human beings released from all labor should probably better be seen as nightmares…We are made to continually be in fellowship with one another, working, creating value, giving, receiving. This is who God has made us to be.” (more…)

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“Capitalism isn’t working” by Cary Bass-Deschenes (CC BY 2.0)

What is the role that Christians play in business and the marketplace?

A recent episode of Equipped with Chris Brooks, titled “Is Capitalism bad business?” wrestles with that question and more. During his introduction, Brooks explains why he was pondering the question and there are a couple of reasons. The majority of “Equipped” listeners are not clergy, but men and women who work in the marketplace. Because of that, Brooks wants to talk about the “good that business does” and the role of Christians in the marketplace. Sometimes we limit ourselves to evangelization, whereas Brooks argues that doing good business is a good in and of itself. He was also concerned with the recent revival of socialism in American politics and conversation. More and more younger men and women are disillusioned with the free market, with more than half of millennials declaring they do not support capitalism. (more…)