Posts tagged with: socialism

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 (at least for a time) 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.

Sales-taxImagine you’re at the checkout line at the supermarket and the clerk asks how much income your family earns each year. Offended, you ask why that is any of her business.

“We need to know to determine how much sales tax you need to pay,” the checker politely explains. “If you’re classified as the ‘working poor’ you need to pay more sales tax.”

“I think you have that backwards,” you helpfully add. “You mean the working poor need to pay less sales tax, right?”

“Oh, no sir,” she say, still blissfully cheerful. “It’s a new anti-poverty program initiated by the federal government that helps the poor by making them pay an addition sales tax on their groceries.”

Although it isn’t stated so clearly or applied so directly, the federal government has in fact implemented an “anti-poverty” initiative that does just that. As economist Thomas Macurdy says, “Most Americans wouldn’t cheer this program, nor would most political leaders champion it. Yet that is what happens when Congress raises the minimum wage.”

Earlier this year Macurdy published a study in the Journal of Political Economy that examined the effect of the minimum wage on the poor. As he explains in the Wall Street Journal, his findings show that the minimum wage serves as a tax on the poor:

sharing“There are solid grounds for believing that the first Christian believers practiced a form of communism and usufruct [i.e., the right to enjoy the use and advantages of another’s property short of the destruction or waste of its substance],” wrote Peter Marshall in Demanding the Impossible: A History of Anarchism. As evidence Marshall cites the second chapter of the book of Acts:

And all who believed were together and had all things in common. And they were selling their possessions and belongings and distributing the proceeds to all, as any had need. And day by day, attending the temple together and breaking bread in their homes, they received their food with glad and generous hearts, praising God and having favor with all the people. (Acts 2:44-47, ESV)

Marshall is (mostly) correct. The early Christians did engage in a form of voluntary usufruct and wealth redistribution. Since then, many Christians have asked why we don’t follow that sort of proto-communist model today. If the economic system was good enough for the apostles, why isn’t it good enough for modern society?

A hint at why the system is not longer used is found in the verse that immediately follows the passage cited above:


In Cuba, taxi drivers earn far more than doctors, raking in more money in one day than a doctor will make in an entire month.

The reason? Unlike most of the Cuban economy, taxi licenses are privately held and wages are not set by the state.

Johnny Harris explains:

Although Cuba offers few opportunities for private enterprise — outside of its sprawling black market, that is — the number of self-employed workers has slowly grown in recent years. Seven years after Raul Castro took over, 20% of the economy is now private.  (more…)

bernie-sanders-photo1In last Tuesday’s Democratic debate, Senator Bernie Sanders stayed true to his famed aversion to capitalism, proclaiming the fanciful virtues of “democratic socialism.” Yet when prodded by Anderson Cooper — who asked, “you don’t consider yourself a capitalist?” — Sanders responded not by attacking free markets, but by targeting a more popular target of discontent: Wall Street and the banks.

“Do I consider myself part of the casino capitalist process by which so few have so much and so many have so little, by which Wall Street’s greed and recklessness wrecked this economy?” Sanders asked. “No, I don’t.”

One could be forgiven for not understanding what Sanders means by “casino capitalism.” Is it crony capitalism, in which legislative favors are secured by the rich and powerful (which conservatives also disdain)? Is it bailouts for the big banks (which, again, conservatives also disdain)? Is it basic trade and exchange on a large, complex scale, and if so, at what size does it become problematic? Does he despise the stock exchange itself? Too loud with all its blinky lights and bells? (more…)

So far, 2015 has given us our busiest Acton Lecture Series ever, and we’re pleased to share more of it with you today on the PowerBlog. Back on April 16, Acton had the privilege of hosting Wayne Grudem and Barry Asmus, who spoke on the topic of the book they jointly authored, The Poverty of Nations: A Sustainable Solution.

First, the bios: Wayne Grudem is Research Professor of Theology and Biblical Studies at Phoenix Seminary; he is the author or co-author of twenty books, including his Systematic Theology: An Introduction to Biblical DoctrinePolitics According To The Bible, and Business for the Glory of God, which we just happen to have in the Acton Book Shop; he also served as a member of the Translation Oversight Committee for the English Standard Version of the Bible, and also as General Editor of the ESV Study Bible. Barry Asmus is a Senior Economist with the National Center for Policy Analysis, which promotes private sector, market-based solutions to problems. He has been speaking, writing and consulting on any number of political and business issues for over 25 years.

Grudem and Asmus jointly authored a book with a title that nods to Adam Smith’s classic The Wealth of Nations, which inquired into what factors led certain nations to prosper; The Poverty Of Nations looks at the flip side of that question: what causes some nations to remain mired in poverty, and what might they do to change their circumstance?

We’re pleased to share with you the video of their joint presentation today; after the jump, I’ve included the episode of Radio Free Acton that features an interview with the two gentlemen.


Soviet-era Moscow apartments

Soviet-era Moscow apartments

When it comes to urban planning, nobody beats the Soviets. First, they wanted to plan: no mish-mosh, haphazard cities, towns and burgs sprouting up like in the decadent West. Of course, structures had to address equality. No fancy neighborhoods in one area, and low-rent housing in another. And then there was functionality. Workers needed to be close to work. This eliminated the need for unnecessary and costly transportation. Soviet academic Alexei Gutnov described the planning this way:

Ideal conditions for rest and privacy are offered by the individual house situated in the midst of nature. But this is an expensive kind of well-being. . . . The villa
is the traditional retreat of the leisured minority at the top of the bourgeois society. The attempt to make the villa available to the average consumer means
building a mass of little houses, each on a tiny piece of land …’

In their rejection of the American model of suburban sprawl, Gutnov’s team specifically notes its unfeasibility in a society premised on equality.