Posts tagged with: stewardship

Blog author: crobertson
posted by on Monday, August 22, 2011

Do you view the work you do each day as worship, or is it something you do to pass the time or merely collect a paycheck? Remember work is not only the actions you perform to obtain a pay check, but includes any action “people do to earn a living.” Signs indicate that evangelical practice is entrapped in a dangerous snare of limitation and complacence. By placing almost sole emphasis on Bible study, worship attendance, and giving/tithing — the churchly aspects of discipleship — churches have in effect diminished the importance of everyday, temporal Christian living. Time spent in the workplace and at home with one’s family is subordinated to Sabbath Day activities. However, man is not intended for part-time discipleship, but for a devoted life of constant service to Christ and neighbor.

Lester DeKoster in his excellent book titled Work: The Meaning of Your Life says, “Work is the from in which we make ourselves useful to others.” God has created us to work and worship. Additionally, it is His will for our whole-life to be used to further His Kingdom in this world, not simply what we do in Church on Sunday morning. Whole-life discipleship is something very important to the work we are doing and we promote it through one-day conferences, outreach, church kits, and a new worldview video curriculum being developed.

Take a look at this video, which talks about how — for so many of us — our mission is in the marketplace.

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.

 

 

 

Blog author: eamyx
posted by on Thursday, July 14, 2011

Back in February 2008, then candidate for president Barack Obama addressed a crowd at a General Motors Assembly Plant in Janesville, Wis. He said,

…I am my brother’s keeper; I am my sister’s keeper– that makes this country work. It’s what allows us to pursue out individual dreams, yet still come together as a single American family. E pluribus Unum. Out of many, one.

It is ironic that Obama preached a “we’re-in-this-together” economic philosophy yet three years later, Main Street is carrying Washington’s debt burden.

Debt negotiations are currently at a deadlock in Washington over taxes. President Obama doesn’t want to follow through with $4 trillion in spending cuts without a $1 trillion tax increase, while Senate Democrats are asking for a whopping $2 trillion in new taxes. Democrats also do not want to sacrifice entitlement programs. Top leaders worry they will not be able to reach a deal in time to avoid a government default. With the predicted default deadline of August 2 creeping around the corner and unemployment on the rise at 9.2 percent, citizens feel a sense of urgency about the debt crisis.

When Obama said “I am my brother’s keeper,” what did he really mean? If the government is to act as our brother’s keeper, this means it should be accepting responsibility for the welfare of all citizens. Raising taxes to cover up Washington’s nasty spending habits is certainly not accepting any responsibility.

If the government was really acting in the best interest of its citizens, it would stop raising taxes. According to the Tax Foundation, Americans will need to work from January 1 to April 12 before they have earned enough to pay off their taxes. Tax increases may seem like a quick way to reduce the deficit as opposed to spending cuts alone, but the bottom line is that Washington has a spending problem, not a revenue problem. A Goldman Sachs report found that tax increases usually fail to correct fiscal imbalances and are damaging to economic growth while spending cuts correct fiscal imbalances and boost growth. Milton Friedman explains in his essay titled Fallacy: Government Spending and Deficits Stimulate the Economy why government spending does not mean “stimulus”:

Getting the extra taxes, however, requires raising the rate of taxation. As a result, the taxpayer gets to keep less of each dollar earned or received as a return on investment, which reduces his or her incentive to work and to save. The resulting reduction in effort or in savings is a hidden cost of the extra spending. Far from being a stimulus to the economy, extra spending financed through higher taxes is a drag on the economy.

The $2 trillion tax increase Senate Democrats are pushing has the potential to suffocate economic growth and job creation, which would not be good news for 14 million unemployed Americans. Today, the Great Recession now has more idle workers than the Great Depression. An article in The Fiscal Times claims the employment level is nowhere near where it should be for a typical recovery:

In a typical recovery, we would have had several hundred thousand more hires per month than we are seeing now—this despite unprecedented fiscal and monetary stimulus (including the rescue of the automobile industry, whose collapse would likely have lost a million jobs).

If spending binges don’t work for a family, why would they work for a government? When a family spends more than they are making, the only sensible solution would be to cut spending. Bureaucrats should take House Minority Leader Eric Cantor’s advice and be willing to share the sacrifice:

Everyone understands that Washington has been on a spending binge of late and we’ve got to start spending money the way taxpayers are right now and that’s learning how to do more with less.

The debt crisis is not just an economic hazard but a prodigious moral issue of poor stewardship as explained in an Acton commentary by Jordan Ballor and Ray Nothstine titled The Fiscal Responsibility of Mall Rats and Bureaucrats:

Responsible stewardship of one’s material resources is a consistent and recurring biblical theme. At the conclusion of a parable on stewardship, Jesus said, “Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much” (Luke 16:10 NIV). We shouldn’t be duped into granting the use of greater and greater portions of our paychecks to a federal government that has been unfaithful with what it has already claimed.

Our economy will continue to hobble along until Washington is willing to truly act as a brother’s keeper in showing that it too can share the sacrifices necessary for getting spending under control. Until then, we will pay the price for Washington’s fiscal irresponsibility and millions of Americans will continue to struggle.

Acton University has been full of thought provoking lectures and stimulating discussion. It is easy to see why the attendees wish the conference was much longer. There are many interesting lectures, one just wishes he or she could attend all of them.

Yesterday Dr. John Bolt, of Calvin Theological Seminary, taught a course titled “Centralization and Civil Society.” Bolt’s course paid special attention to Alexis de Tocqueville and his contributions to defining a civil society. As one can imagine, by bringing Tocqueville into his lecture, Bolt discussed the role of religion and the sense of community in the United States.

Bolt explained that America is self-reliant; however, this self-reliance didn’t come through reflection. The American people didn’t wake up one day and decide they wanted to be more self-reliant. Instead, Bolt explains that America’s self-reliance is habitual. Furthermore, Bolt discussed how Tocqueville demonstrated that America can afford to be self-reliant and individualistic because it was founded on Christian principles and that liberty exists in the United States because of religion and Christian principles.

The dinner lecture was a real treat last night. The Acton Institute has always promoted entrepreneurship and what it means to intertwine faith with entrepreneurship. A panel of successful entrepreneurs shared their insight on how business can promote the common good. Betsy DeVos, chairman of the American Federation for Children and Alliance for School Choice and chairman of the Windquest group, articulated how she finds joy in enterprises that make a difference in other people’s lives. She believes that enterprise is a vehicle we use and invest our God given talents in.

According to Mark Murray, president of Meijer, Inc., entrepreneurs need to be servant leaders. In order to succeed they must remain rooted in integrity. Murray explained how the values found in Christianity, such as humility, are not only applicable but needed in business. Furthermore, we are all created in the mage and likeness of God. We are called to use our God given gifts and express our creativity. Murray believes we put our talents and creativity to use through work, and the development of the human capacity is promoted through business.

Stewardship was highlighted by John Kennedy, president and CEO of Autocam. We are all temporary custodians of everything and have to do the best with the assets we are given. Furthermore, Kennedy said that we must remember people and employees are all assets and leaders must discover the gifts of their employees and how those gifts can most help the enterprise. Not only are employees assets, but so is capital. Entrepreneurs are called to be stewards of both their employees and capital and use all they are given to the fullest extent, and by doing this entrepreneurs demonstrate their appreciation for all God has given and blessed them with.

While there are flawed business leaders who are not examples of how businesses contribute to the common good, Acton University attendees witnessed what it really means to be called to entrepreneurship. When the calling of entrepreneurship is accepted and founded in Christian principles, the entrepreneur is a tool to create and promote the common good.

The green movement has had a dramatic, long lasting impact on public policy, individuals, and even religion. But many people of faith have criticized supporters of the green movement, equating  its strong followers with those who practice a pagan religion in support of Mother Nature.

As Christians we are called to be environmental stewards and to care for God’s creation. However, putting aside the perceptual paganism of a too dedicated support of the green movement, one must ask, is the green movement really accomplishing its mission and gaining support or is it actually turning people away from protecting the environment?

Reflecting upon my time spent at college I remember many of my Christian and conservative friends would throw a plastic water bottle in the trash when a recycling bin was right next to it, smirking and saying that’ll show all the environmental hippies. They admitted they were turned off by the aggressiveness and rhetoric of the green movement while also saying it fails to take into account that human beings also reside on the planet. Instead, they felt the green movement communicated that plants and animals were more important than people.

Many green movement policies seem counterintuitive to protecting the environment. From wind mills killing birds, which according to the Wall Street Journal, it is estimated  75,000 to 275,000 birds are killed by wind mills in the U.S. per year including the golden eagle in California which taxpayers spent a large sum of money on to protect. Now there are plans in the works for killing feral camels in Australia. Why? They damage vegetation and produce a methane equivalent to one ton of carbon dioxide a year.

Green movement policies have many unintended consequences. However we must decide whether the consequences are worth enacting the policy. Are killing feral camels going to save the planet, and is that even responsible? Are we to decide what part of God’s creation is a “productive” contributor to the earth, and if it isn’t do we really have the right to decide what part of God’s creation is to live and die?

Many Christians are now seeking a more positive expression of being an environmental steward and also a follower of the green movement. Marvin Olasky states in an article published by World Magazine that in the call to environmental stewardship, “The Bible teaches that human beings have an obligation to be stewards and gardeners in a way that benefits other men and women and also other creatures.”

While they are full of good intentions, green policies may alienate the centerpiece of  God’s creation: the human person. Failing to take into account the person, green policies put a burden on people in order to protect the environment and the creatures of this planet; the green movement needs to recognize that people are just as much a part of this planet as the trees, flowers, bugs, polar beers, and every other creature and planet we are blessed with. Environmentalist Peter Harris explains in Christianity Today that the green movement often fails to take into account the human relationship with creation:

There is a radical environmentalism that wishes people were not on the planet. That’s not the biblical view at all. A Rocha in the United Kingdom actually works in the most polluted, urban borough of the country, because creation isn’t absent just because people are there. The Challenge is how to restore a right way of life, rather than escaping to some wilderness paradise. Fifty percent of the planet now lives in cities. That is where we live out our relationship with creation.

Yes we need to care for creation. The environment is a gift and we are responsible to care for and preserve God’s creation. However, we must not lose sight of the fact that we ourselves are a part of God’s creation and we are called to more than just environmental stewardship. We are called to be financial stewards and many forms of alternative energy are not cost efficient or financially responsible. We are also called to care of the poor, understanding that stringent environmental standards may make it harder for the poor to rise out of poverty. And finally, we are called to live as images in the likeness of God.

Marvin Olasky states that, “The Bible teaches that human beings have an obligation to be stewards and gardeners in a way that benefits other men and women and also other creatures.” Such an obligation to environmental stewardship can be as simple as being responsible, from not littering to recycling old cell phone batteries. We know the negative consequences that littering and cell phone batteries have on the environment, even though they may strike some as small things. When we are knowledgeable of such negative consequences we are responsible to act in the correct manner to preserve the environment. Not only are we taking care of God’s creation, but we are also showing our love for our neighbors by taking care of the same planet that they too call home.

In today’s edition of Capital Commentary, HBU assistant professor of literature Micah Mattix explores the question, “How Might the Arts Be Funded?” He ably and briefly surveys the recent history of politics surrounding the NEA.

And he concludes by noting that art is inherently “relational” and that “the problem with large, centralized organizations like the Endowment is that they are often unable to take such relational elements into account.”

He muses:

However the arts are to be funded, this relational element of art must be taken into account. Instead of encouraging artists to write against their audience out of spite or merely play it safe, funding should help artists to flourish while encouraging them to communicate the truth (of which speaking “prophetically” is part) in love. I wonder if funding the arts at the local level might help to do exactly this.

We can think of it in another helpful way as the concept of subsidiarity (which is a principle of society, not just politics) applied to the arts, specifically artists and their communities and audiences. In some ways this question about funding and the arts is a subset of the broader cultural critique of the market economy, that is, that markets do not support authentic cultural expression. This also has to do with whether you think work, leisure, or some third thing is the basis of culture.

In an argument analogous to that which Abraham Kuyper makes in his treatise, Common Grace in Science and Art, it may be at one time that the arts were necessarily dependent on institutional support from the church and the state in order to exist and grow. But we are certainly at the point, at least in the developed West, where it is not strictly necessary from a purely financial point of view that the government serve as the sole, or even primary, patron. The ideal in this vein is that the arts flourish and mature, come into their own and stand in their own independent space, related to other spheres yet distinct from them in terms of their general sustenance. (This is not to say that civic and sacred art projects are out of bounds, but that they do not exhaust the limits of art as a cultural phenomenon. They are, rather, projects that are intended to illustrate the grandeur of the empire, whether temporal or eternal, respectively.)

Mattix draws on a recent controversy over the Christian stewardship of art published in the Journal of Markets & Morality between Calvin Seerveld and Nathan Jacobs. You can find the text of their dialogue in issue 12.2, and you can also listen to a subsequent podcast moderated by David Michael Phelps (in two parts: Part 1 and Part 2).

Blog author: lglinzak
posted by on Tuesday, April 12, 2011

It sounds draconian and contrary to the beliefs of many humanitarian organizations, including the United Nations which declared water as a basic human right in 2010. However, if we expect to take the correct steps forward to solve the global water crisis, then water must be treated as a commodity not a basic human right.

In his book, The Mystery of Capital, and also in an essay published in the International Monetary Fund, Hernando de Soto explains why capitalism has failed in many third world and developing countries and continues to succeed in many Western countries.

According to De Soto, by assigning property rights, people are held accountable when any sort of damage of property is committed. Such accountability is accomplished through the legal system:

The integration of all property systems under one formal property law shifted the legitimacy of the rights of owners from the political context of local communities to the impersonal context of law. Releasing owners from restrictive local arrangements and bringing them into a more integrated legal system facilitated their accountability.

By transforming people with real property interests into accountable individuals, formal property created individuals from masses. People no longer needed to rely on neighborhood relationships or make local arrangements to protect their rights to assets. They were thus freed to explore how to generate surplus value from their own assets. But there was a price to pay: once inside a formal property system, owners lost their anonymity while their individual accountability was reinforced. People who do not pay for goods or services they have consumed can be identified, charged interest penalties, fined, and embargoed, and can have their credit ratings downgraded. Authorities are able to learn about legal infractions and dishonored contracts; they can suspend services, place liens against property, and withdraw some or all of the privileges of legal property.

While De Soto’s arguments look at property mostly as land and buildings, his principles can also be applied to water. Treating water as a commodity and granting it property rights will reduce pollution and help create more sanitary sources of water. Once water becomes a commodity, the legal system will have the justification to prosecute any industry or individual that damages the water supply because it will be destruction to property. When water is a human right, and nobody owns the rights to the water, then there is nobody to prosecute because everybody owns the water and can freely do with it as he or she pleases.

Many are familiar with the economics behind the tragedy of the commons. Just as the commons were over-used, water will be depleted if we continue down the path of treating water as a basic human right.

People will over-use water until they are faced with an enormous crisis. The UN’s call for making water a basic human right does not provide any deterrent from over-use, but instead gives people the entitlement to use as much water as they desire. By charging people for the amount of water they use, people will be more conscious of their use of water and take measures to not waste it. There is no incentive to provide free water, and without assigning property rights to it, as De Soto’s argument articulates, there is no way to legally prosecute anyone or any industry that damages or pollutes water.

Samuel Gregg also articulates the problems that come from central planning and communal ownership:

Why then do people tend to favor private over communal ownership? One reason is that they are aware, as Aristotle and Aquinas witnessed long ago, that when things are owned in common, the responsibility and accountability for their use disappears, precisely because few are willing to assume responsibility for things that they do not own. Our everyday experience reminds us of the tragedy of the commons. The early advocates of socialism were well aware of these objections. Their response was to hold that all that was needed was a change of mind and heart on the part of people as well as profound structural change: a change that would not only produce a new system of ownership, but also a “new man” — the socialist man much trumpeted by the former Soviet Union.

Furthermore, in his essay, Our Stewardship Mandate, Rev. Robert Sirico explains how integrating the market supports stewardship:

Long experience has shown that the state is a bad steward. One reason this is so is because of what has been termed the “Tragedy of the Commons.” Simply put, if everyone owns something, no one person has any incentive to protect or take care of it. This has been graphically demonstrated by the appalling reports of environmental disaster in the former communist countries. Furthermore, the state has many incentives to be a poor steward. For example, the federal government owns a great deal of forestland. These forests are supervised by the U.S. Forest service, the mission of which is to cut down trees. Because it is federally funded, the Forest Service has no market incentives to keep its enterprises cost-efficient. As a result, the forest service is logging old-growth forests with a return of pennies on the dollar. Had these forests been supervised by a private company, they would never had been touched.

Likewise, experience has shown that the market is a better steward of the environment than the state. Not only does it allow for private ownership and offer better incentives, but it allows for the expression of minority opinions in regard to land and resource use. Take, for example, the Hawk Mountain Sanctuary in eastern Pennsylvania. Located along the Appalachian migration route, it provided an ideal location for hunters to shoot thousands of hawks. Conservationist Rosalie Edge decided that those birds ought to be protected, a minority opinion at the time. In 1934 she purchased the property and prevented the hunting of the birds. It is now considered one of the best bird-watching locations in the world. Had Ms. Edge lived in a regime where property was owned by the state, she would have to convince a majority of the lawmakers, bureaucrats, and competing special-interest groups that Hawk Mountain should be a preserve, so daunting a task it is unlikely it would have happened. As it was, she only had to purchase the land.

The same principles Rev. Sirico articulates in his essay can also be applied to support stewardship in the global water crisis.

 

Last week President Obama gave an address outlining his new energy policy. In light of the tragic events in Japan, the speech was much anticipated especially considering the president’s prior commitment to nuclear energy.

As expected President Obama continued advocating for a greener energy policy while continuing to push for the country’s independence from oil. However, the President’s speech, an article by Reuters points out, was “short on details on how to curb U.S. energy demand.”

Furthermore, the President’s call for a path towards greener energy and energy independence will not be easy. The New York Times appropriately states, “The path to that independence — or at least an end to dependence on the Mideast — could well be dirty, expensive and politically explosive.”

President Obama continues to voice his support for alternative fuels and green energy. He argued for energy from wind, solar, natural gas, biofuels, natural gas, and nuclear. However, as I have argued in the past, these alternative fuels have costly subsidies, unintended consequences, are not cost effective, and have proven to be largely inefficient (I address the unintended consequences of ethanol here, here, and here and the unintended consequences with wind turbines here).

The president is calling for more government regulation. He gave a glimpse of a new energy standard he is going to pursue this summer, “This summer, we’re going to propose the first-ever fuel efficiency standards for heavy-duty trucks. And this fall, we’ll announce the next round of fuel standards for cars that build on what we’ve already done” he said. In an economy that is looking to rebound from a recession, businesses do not need another costly government mandate forcing them to change their transportation fleet. Instead, the President should rely on the market. Businesses will upgrade their transportation fleet naturally through the market when it is efficient and more cost effective for them to utilize heavy-duty trucks that are more fuel efficient.

The president also stated that we need to look to other countries, such as Brazil, for oil. However, an article published by Real Clear Markets is very critical of the President’s pursuit of Brazilian oil:

Now, with a seven-year offshore drilling ban in effect off of both coasts, on Alaska’s continental shelf and in much of the Gulf of Mexico – and a de facto moratorium covering the rest – Obama tells the Brazilians:

“We want to help you with the technology and support to develop these oil reserves safely. And when you’re ready to start selling, we want to be one of your best customers.”

Obama wants to develop Brazilian offshore oil to help the Brazilian economy create jobs for Brazilian workers while Americans are left unemployed in the face of skyrocketing energy prices by an administration that despises fossil fuels as a threat to the environment and wants to increase our dependency on foreign oil.

Furthermore President Obama’s talk of expediting drilling permits is not wholly accurate. The Obama Administration has not been friendly to offshore domestic drilling since the BP disaster last year. As the above quoted article from Real Clear Markets explains, there has been a seven-year offshore drilling ban on Alaska’s continental shelf and in much of the Gulf of Mexico. That has not changed under the Obama Administration. The Heritage Foundation pointed out in February:

Putting aside calls from some who want to increase domestic exploration to areas in Alaska and elsewhere, President Obama has completely shut down the existing oil drilling infrastructure in the U.S. At least 103 permits are awaiting review by the Bureau of Ocean Energy Management, Regulation and Enforcement. The federal government has not approved a single new exploratory drilling plan in the Gulf of Mexico since Obama “lifted” his deepwater drilling moratorium in October 2010. Obama also reversed an earlier decision by his administration to open access to coastal waters for exploration, instead placing a seven-year ban on drilling in the Atlantic and Pacific Coasts and Eastern Gulf of Mexico as part of the government’s 2012-2017 Outer Continental Shelf Program.

As expected the president’s energy speech is not receiving much praise from the oil industry. Obama claimed that the oil industry is sitting on leases instead of using these for oil production. Ken Cohen, Exxon Mobile Corp.’s vice president of public and government affairs addressed the President’s claims and reflected on his speech in a Wall Street Journal article:

Said Mr. Cohen: “90% of the words sound relatively right in line with what you’d hear us say,” in terms of enhanced use of natural gas, increasing energy efficiency, more research and development and more domestic production. But the speech didn’t address policies that Mr. Cohen said are hampering oil development, such as opening areas that are off limits to the industry, and insisted on uneconomic mandates for renewable fuel. Moreover, the mention that oil companies are hoarding unexploited leases is off the mark, he said.

“The notion that there’s some economic incentive to sit on a lease is wrong,” Mr. Cohen said, particularly when oil prices are above $100 a barrel.

Despite the recent tragic events of Japan’s nuclear power disaster, it was relieving to see the president not call a halt to nuclear energy. While it will most likely take time for nuclear energy to rebound from the catastrophic events, the president looked at the situation pragmatically by continuing to voice support for nuclear energy while requesting a Nuclear Regulator Commission safety review to make sure all existing nuclear energy facilities are safe.

Despite the criticism, it is still important to keep in mind that we are all stewards of the Earth and need to take care of the planet God has given us. We do not get a replacement and we must see that future generations have a planet they can live in without problems created by our generation. The President’s call to not waste energy should be applauded, and advice we should all heed. However, as the United States continues to define its energy policy it is also equally important to keep in mind we are called to not just be environmental stewards, but also financial stewards. Our energy policy should be for the well-being of the planet but also economically feasible without being burdened with costly subsidies and unintended consequence.

Full text from President Obama’s speech can be found here.

The American Enterprise Institute also provides and insightful critique on the President’s speech which can be found here.

With the ongoing budget debate there is much discussion about what to cut and what not to cut, whether taxes should be raised, and if we should avoid even considering cutting certain programs. At the center of the discussion is the state of entitlement programs.

One program everyone in Washington seems to be leery of is Social Security. Whether it is because of ideologically supporting the program or afraid of ruining a political career, Social Security, again, may remain untouched. Political culture has taught elected officials to avoid the topic of reforming Social Security. In the past, those who have attempted to address issues related to it have been demonized. And when re-election time came around, many private interest groups made sure to fund ads to negatively attack anyone’s past attempts of reforming Social Security. However, with our current debt crisis and economic problems, now is not the time to ignore Social Security. Leadership is needed to tackle the hard problems.

Social Security has run aground. The Congressional Budget Office (CBO) reported that program will officially run out of money by 2037 if the program is not reformed.  Furthermore, the CBO also projects that this year Social Security will collect $45 billion less in payroll taxes than it pays out.

Just as alarming as the lack of leadership is the number of Americans who benefit from it who will be dramatically affected if Social Security does fail. According to the Social Security Administration (SSA) over 54 million Americans will receive $730 billion in benefits in 2011, these numbers also includes those who are disabled our receiving survivor benefits. For the month of February, the SSA paid over $58 billion to its beneficiaries. The numbers get even more daunting when they are coupled with the number of Americans who rely on Social Security as their sole source of income.

The SSA states, “Among elderly Social Security beneficiaries, 22 percent of married couples and about 43 percent of unmarried persons rely on Social Security for 90 percent or more than their income.” The Institute of Women’s Policy Research also provides alarming numbers. According to their data, in 2009, 29 percent of women and 20 percent of men relied on Social Security for all of their income. It is important to keep in mind that Social Security provides many elderly members with the necessary money to avoid poverty. As a result, instead of letting Social Security continue to run its unsustainable course, it is imperative to fix to program so vulnerable members in our society can continue to be aided by it. (more…)

After taking a look yesterday at economic consequences of rising food prices along with the affects ethanol may have on the rising food prices, a moral perspective must also be taken into account.

As I stated in my previous blog post, the World Bank says rising food prices have pushed 44 million more people into extreme poverty in developing countries since June of 2010, and are having an adverse effect on people around the globe.  The increase in demand and expanded use of crops have caused global stockpiles to erode.  Stockpiles are important to help ensure a steady flow of food, especially during traumatic times such as large food shortages.  Even the corn stocks of United States, the world’s largest corn producer, amount to 5 percent of annual use which is far below the 13.6 percent average that they have been kept at over the last 15 years.

We are also called to be stewards of the Earth and this not only means not abusing the one planet we are given, but also ensuring that we leave a planet in good condition for future generations.  However, recent studies have called into question whether ethanol is actually better for the environment.  A study conducted by the University of Minnesota demonstrates that corn ethanol is actually more harmful than gasoline to the environment.  Furthermore, a recent article from Forbes also articulates that ethanol gasoline lets out more harmful toxins than regular gasoline.  There are even suggestions that ethanol uses more energy per gallon to produce it than the energy contained the actual gallon of ethanol.

In 2007, Ray Nothstine’s commentary Big Corn’ and Unitended Consequences pointed out some of the effects of rising food prices and the environmental implications of ethanol production.

Ethanol is expensive to produce, has contributed to a rise in gasoline prices, and has its own pollution problems. It requires a lot of fertilizer, fresh water, and productive farm land. And, because of corrosive properties that make pipeline transportation problematic, it takes a lot of trucks to haul it.

While the policies behind increased ethanol production may have been intended to promote good environmental stewardship, the actual results may show a higher negative environmental impact than other fuel sources.

If ethanol is causing the problems recent studies have indicated, then is the ethanol subsidy and the government mandate to continue the increase use of ethanol sound policy?  Continued funding for the ethanol subsidy and a mandate to increase the use of ethanol, when it may not be accomplishing its originally intended goals, might be cause to reevaluate ethanol’s future.  With food prices on the rise, and the demand for wider uses for crops across the globe also rising, the United States continues to fund the current ethanol policy, which may become counter intuitive to its original goals. The United States currently dedicates 40 percent of the amount of corn it produces each year to ethanol, and so you wonder if we are actually working at cross purposes to sound stewardship, and if so, it may be time to look towards a more morally sound solution.