Posts tagged with: socialism

Samuel Gregg recently spoke with Marie Stroughter from African-American Conservatives. They discuss Gregg’s new book, Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. 

Stroughter asked Gregg about the dichotomy between “cuddle capitalism” (the European social model) and a dynamic market economy.  Gregg says that Americans are more and more choosing a ‘Europeanized’ economy favoring security over economic liberty.

Listen to the full audio here:

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You can purchase the hardcover or eBook version of Becoming Europe here.

collaborative consumptionNew rental markets are popping up all over the place, as detailed by a recent Wall Street Journal article. The trend is beginning to drive a larger movement labeled by some as “collaborative consumption,” wherein “sharing” is pushed as a way of “reinventing old market behaviors.”

Over at Carpe Diem, Mark J. Perry provides a helpful round-up on the phenomenon, pointing to the already mentioned WSJ article, a new Collaborative Consumption Hub web site, and a host of relevant products and services:

[W]e’re increasingly becoming more of a “rental economy,” where people can now rent just about anything they need from somebody else: their bathroom, their couch for an overnight stay, designer neckties (and bow ties and cufflinks), their driveway, their private automobiles, their toys, their clothing/costumes/maternity clothing/accessories/jewelry, party/event equipment, fine art, household items and tools (vacuum cleaners, iPads, tents, printers) etc. and the list goes on and on…

Perry also references a review on a leading book on the subject, What’s Mine Is Yours: The Rise of Collaborative Consumption. In the review, Reason Magazine’s Greg Beato helps illuminate some on the broader social and economic implications of such a shift:

Just a few years ago, President George W. Bush was still touting “the ownership society” as the surest path to prosperity and personal autonomy. But that was before we could easily search our cellphones for the nearest power drills, sedans, and spacious Manhattan closets for rent. What we really want, sharing evangelists suggest, is access, not ownership. And when we can use the mobile Web to pinpoint sharable goods, the burdens of ownership—which include maintenance, storage, and eventual disposal—begin to outweigh the benefits in many cases…. (more…)

Blog author: dpahman
posted by on Tuesday, December 18, 2012

I recently asked the question at Ethika Politika, “Which Capitalism?” (also the title of my article), and I followed it up with a related question here regarding the relationship between distributism and capitalism (is the former a form of the latter?). In addition, Jordan Ballor reflected last week on the different orientation of definitions of capitalism and socialism, observing, “One definition [i.e. capitalism] is focused on structure, the other [i.e. socialism] is connected with moral ideals.”

On a related note, I found this post from Matt Mitchell at Neighborhood Effects to be quite to the point as well:

Google Chairman Eric Schmidt defended the company’s practices [of taking certain tax exemptions], saying:

We pay lots of taxes; we pay them in the legally prescribed ways…. I am very proud of the structure that we set up. We did it based on the incentives that the governments offered us to operate.

So far so good. He didn’t make the rules that privilege his firm, but he will avail himself of these privileges when offered. I can sympathize. I oppose the mortgage interest deduction but still take it every April. Schmidt’s next statement, however, is about as far from the mark as one can get:

It’s called capitalism…. We are proudly capitalistic. I’m not confused about this.

A quick lesson for Mr. Schmidt: genuine capitalism is about competing on a level playing field for customer dollars. If you offer a superior product or service, customers will reward you by voluntarily parting with their money in exchange for what you offer. (more…)

I recently talked to one of Italy’s leading classical liberal scholars, Prof. Nicola Iannello, regarding the outcome of this week’s U.S. presidential elections.  

Prof. Iannello, a devotee of classical liberalism and Alexis de Tocqueville, is an Italian journalist, international lecturer with Istituto Bruno Leoni, and chair of the Einaudi Foundation’s Austrian School of Economics course for Roman university students. Prof. Iannello has published several widely read academic articles on Friedrich Hayek, Murray Rothbard, Ludwig von Mises, and Frédéric Bastiat, among other pro-liberty European intellectuals.

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Blog author: jcouretas
posted by on Wednesday, October 17, 2012

On National Review Online, Acton Research Director Samuel Gregg offers an analysis of last night’s debate between President Barack Obama and Gov. Mitt Romney. Gregg begins with the assertion by Melinda Henneberger of the Washington Post that the candidates are ignoring poor and working-class Americans. Gregg responds:

… what’s generally missing from the discussion of poverty in the context of this presidential election — though Romney did obliquely reference it in the second debate — is acknowledgment that: (1) the economic causes of impoverishment are more subtle and less amenable to wealth redistribution than the Left is willing to concede; and (2), with a few exceptions, liberals are generally reluctant to acknowledge some of poverty’s non-economic causes, not least because it throws into relief some of the more destructive effects of their cultural agenda.

If poverty was simply a question of wealth redistribution, the sheer amount of dollars spent since the not-so-Great Society programs of the 1960s should have resolved the problem. In 2011, Peter Ferrara calculated that “total welfare spending [in 2008] . . . amounted to $16,800 per person in poverty, 4 times as much as the Census Bureau estimated was necessary to bring all of the poor up to the poverty level, eliminating all poverty in America. That would be $50,400 per poor family of three.”

The effects in terms of reducing poverty have, however, been underwhelming. As Ferrara observes: “Poverty fell sharply after the Depression, before the War on Poverty, declining from 32% in 1950 to 22.4% in 1959 to 12.1% in 1969, soon after the War on Poverty programs became effective. Progress against poverty as measured by the poverty rate then abruptly stopped.” In short, America’s welfare state, which now easily accounts for the biggest outlays in the federal government’s annual budget, has proved inadequate at realizing one of its central goals.

Read “Who’s Really Forgotten the Poor” by Samuel Gregg on NRO.

You might get goose bumps watching this fiery speech by Fr. Andrew Kemberling. After all, it is not every day we hear a wholesale condemnation socialism from a priest on the “pulpit” of a conservative political rally!

This vociferous pastor from St. Thomas More parish in Centennial, Colo., delivered an impassioned address last May. It may be old news, but the video has gained enormous popularity and even gone viral (over 1.3 million views) just one month before the U.S. presidential elections.

As the free market vs. socialism politicking are growing to a climax, surely more Christian believers like Fr. Kemberling are declaring they too  have “earned a free pass” to engage in this heated debate to express  their strong convictions against centrally planned, godless political regimes. (more…)

Blog author: jcouretas
posted by on Tuesday, September 11, 2012

On his personal blog, author and publishing industry executive Joel J. Miller asks, “What if we dumped Rand for Röpke?” Good question. Miller says that it’s simply unnecessary for Christians to invoke Rand in their defense of the free market. Why not base that defense on the work of a Christian economist instead?

“Unlike Rand,” he writes, “Röpke grounded his critique of socialism and his defense of free markets in a thoroughly Christian understanding of man and his world.” He goes on to say that not only is this critique “of an entirely differing quality than Rand’s, it’s far deeper as well. Röpke saw the materialist answers of socialism as papering over the spiritual crisis that beset Western civilization in the middle twentieth century, and still does to this day.”

Miller also includes a link (bottom of post) to a free, downloadable copy of Röpke’s The Humane Economy.

The PowerBlog has archived a number of articles on Röpke by Samuel Gregg, Acton Research director and author of Wilhelm Ropke’s Political Economy (Edward Elgar, 2010).

In the archives you’ll find links to the July 2 American Spectator piece titled “The Prophet of Europe’s Crisis” and have access to “The Profoundly anti-Keynesian Political Economy of Wilhelm Röpke,” a new podcast on the Library of Law and Liberty.

From the video vault, a classic presentation by Rev. Robert A. Sirico, president and co-founder of the Acton Institute, based on his monograph The Entrepreneurial Vocation.

Blog author: jballor
posted by on Friday, August 31, 2012

Conference: “Global Commodities: The Material Culture of Early Modern Connections, 1400-1800″

Global History and Culture Centre – University of Warwick – 12-14 December 2012. This International conference held at the Global History and Culture Centre of the University of Warwick seeks to explore how our understanding of early modern global connections changes if we consider the role material culture played in shaping such connections. In what ways did material objects participate in the development of the multiple processes often referred to as ‘globalisation’? How did objects contribute to the construction of such notions as hybridism and cosmopolitanism? What was their role in trade and migration, gifts and diplomacy, encounters and conflict? What kind of geographies did they create in the early modern world? What was their cultural value vis-à-vis their economic value? In short, this conference seeks to explore the ways in which commodities and connections intersected in the early modern world.

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Blog author: aknot
posted by on Wednesday, August 8, 2012

French President François Hollande has promised a 75% tax rate on those in his country who earn an annual salary above one million euros ($1.24 million). Not surprisingly, this number has struck fear into the hearts and wallets of quite a few of France’s top earners, including some who are contemplating leaving and taking their jobs with them. The New York Times has the story:

Many companies are studying contingency plans to move high-paid executives outside of France, according to consultants, lawyers, accountants and real estate agents — who are highly protective of their clients and decline to identify them by name. They say some executives and wealthy people have already packed up for destinations like Britain, Belgium, Switzerland and the United States, taking their taxable income with them.

They also know of companies — start-ups and multinationals alike — that are delaying plans to invest in France or to move employees or new hires here.

The potential tax increase threatens to handcuff “les Riches” and, ironically enough, undercut France’s prized notion of egalité, taking with it liberté and fraternité, the remainder of the country’s tripartite maxim. In Hollande’s France, these principles may not apply to the wealthy.

Of course, Hollande’s tax initiative is sure to have some beneficiaries. No, not the poor or the middle class. The real winners? Well, they live on the other side of the border. Also from the Times:

“It is a ridiculous proposal, but it’s great for us,” said Jean Dekerchove, the manager of Immobilièr Le Lion, a high-end real estate agency based in Brussels. Calls to his office have picked up in recent months, he said, as wealthy French citizens look to invest or simply move across the border amid worries about the latest tax.

“It’s a huge loss for France because people and businesses come to Belgium and bring their wealth with them,” Mr. Dekerchove said. “But we’re thrilled because they create jobs, they buy houses and spend money — and it’s our economy that profits.”

The entire story reminds me of a passage from Rev. Robert Sirico’s latest book, Defending the Free Market: The Moral Case for a Free Economy. In a chapter titled “The Idol of Equality,” Sirico addresses the unsustainable nature of simple redistribution. Instead, business development and job creation are essential–and lasting–tenets of economic growth. From the book:

When most people picture the 1 percent and their wealth, what comes to mind is designer clothing and jewelry, yachts and limousines, mansions and penthouses—all sorts of alluring and attention-grabbing luxuries. Luxuries so distracting, in fact, that we tend to lose sight of the fact that most of the wealth of the wealthiest is invested. It is put to work in the businesses they own and manage, and in stocks and other financial vehicles that provide the capital for countless other businesses. These are the businesses that provide the 99 percent with the goods, services, and employment that they regularly enjoy and often take for granted.

Whether it’s a big automotive plant or a small bakery on the corner, a microchip manufacturer or a family farm, all businesses that produce goods and employ people are owned by someone. It’s businesses that make up most of the wealth of the 1 percent. Confiscating that wealth and giving it to the other 99 percent would mean shifting much of that wealth from investment and production to consumption, since the poor and middle class consume a far higher percentage of their income than the wealthy do. This sudden shift from investment and production to consumption would demolish the infrastructure that makes jobs, goods, and services possible.

Hollande would be wise to read Defending the Free Market. Doing so might save his nation and preserve liberty, equality and brotherhood in the process.