Posts tagged with: Wall Street

Blog author: jcouretas
Tuesday, October 4, 2011

Occupy Wall Street?

On the Sojourners blog, Shane Claiborne marks the feast day of St. Francis of Assisi by absurdly wondering if “he’d be on Wall Street protesting today.” This follows the practice of shrinking Jesus Christ and various saints of the church down to pocket size (What Would Jesus Cut?) in order to fit them into whatever pet political project is at hand, in this case the Occupy Wall Street antics. Not the whole saint in the context of history, mind you, which could be inconvenient, but a happy little Smurf-Saint you can use to practice ventriloquism.

This causes all sorts of problems (most of them apparently unrecognized) for Claiborne as he attempts to cast St Francis as a fellow activist standing against Christian “extremists” who, among other sins, “bless bombs” and “baptize Wall Street.” This is anachronistic in the extreme but nevertheless it needs to be pointed out that the saint’s embrace of poverty and his care for the poor was not based on, as Claiborne claims, his status as “one of the first critics of capitalism.” St Francis lived and worked and prayed as he did out of a total commitment to the greatest commandment — to love God and love the neighbor.

Claiborne gets me to wondering: What would the Wall Street rabble demanding an end to the market economy make of St Francis and his deep devotion to orthodox Christian belief (he was one of those dogmatic Roman Catholics, don’t you know?), and all that involves? How many of the anarchists stretched out on the sidewalks of lower Manhattan with their smart phones and iPods could tell you what a feast day is and how it’s celebrated? An entry in the 1909 Catholic Encyclopedia notes that St Francis drew his strength from “his intimate union with Jesus in the Holy Communion” not mobilizing Ivy League undergrads protesting their mounting student loan debts. Later in life, the saint was known for “an ungrudging submission to what constituted ecclesiastical authority.” Quite the revolutionary.

Claiborne recounts the journey St Francis made in 1219 to Egypt where crusaders were battling “Saracens.” Yes, he was sickened by the carnage and brutality he witnessed there and worked as a peacemaker to both sides. But the saint made his journey to convert Muslims to Christianity. Is that Claiborne’s model of ecumenical outreach?

Read the absurdly fantastic demands of the Occupy Wall Street crowd including free college education, multi-trillion dollar government spending programs, living wages for all, and the like. You wonder: Who is really worshiping Mammon here? Their program is devoid of any spiritual value. It is a political manifesto, imbued with grievance and aimed at plunder.

Love for the neighbor? Not if you’re one of those neighbors working on Wall Street — or Main Street for that matter. The protesters should listen to the saint’s words:

And all the brothers should beware that they do not slander or engage in disputes; rather, they should strive to keep silence whenever God gives them [such] grace. Nor should they quarrel among themselves or with others, but they should strive to respond humbly, saying: I am a useless servant. And they should not become angry, since everyone who grows angry with his brother shall be liable to judgment; and he who has said to his brother ‘Raqa’ shall be liable to the Council; whoever has said ‘fool’ shall be liable to the fires of hell (Mt. 5:22). And they should love one another, as the Lord says: This is my commandment: that you love one another as I have loved you (Jn. 15:12). And let them express the love which they have for one another by their deeds, as the Apostle says: Let us not love in word or speech, but in deed and in truth (1 Jn. 3:18). And they should slander no one. Let them not murmur nor detract from others, for it is written: Gossips and detractors are detestable to God (Rom. 1:29-30). And let them be modest, by showing meekness toward everyone (cf. Tit. 3:2). Let them not judge or condemn. And as the Lord says, they should not take notice of the little defects of others. Rather they should reflect much more on their own in the bitterness of their soul. And let them strive to enter through the narrow gate, for the Lord says: Narrow is the gate and hard the road that leads to life; and there are few who find it (Mt. 7:14).”

Blog author: rnothstine
Tuesday, September 27, 2011

For some, in our still largely affluent society, there is a deep seated need to be a member of the victim class. The background of your socioeconomic privilege is no obstacle, as they must create a narrative that points to being a victim. While some might aspire to sainthood, others aspire to victimhood. This video and report courtesy of The Blaze sums it up well. It would be unfortunate if charades like this drown out the real instances of injustice and those that are truly marginalized.

Blog author: jcouretas
Wednesday, January 26, 2011

When we think of rule of law failure, countries like Zimbabwe and Somalia come to mind. But as Acton Research Director Samuel Gregg points out in his latest piece over at Public Discourse, rule of law can also be subtly eroded in wealthy countries. The negative consequences for risk-taking, entrepreneurship, and long term investment, he says, can be far-reaching.

Risk is an inherent part of the workings of market economies. But Gregg notes that’s not the same thing as uncertainty:

Measurable risks are . . . no deterrent to the making of economic choices. If we take them seriously, they help us to calibrate our economic choices to be consistent with our responsibilities, resources, and opportunities. The same measurements also allow us to distinguish between prudent risk takers and the reckless, and reward them appropriately. Uncertainty, by contrast, involves those risks that cannot be quantified. It can occur either because of the sheer complexity of a given situation or because the subject matter cannot be reasonably measured. As long as a situation of uncertainty persists, it will deter many people from even considering whether to take economic risks.

Uncertainty in America, according to Gregg, is being magnified by the sheer complexity of laws such as the United States Internal Revenue Code:

A tax code of this size and complexity which is subject to so many sources of potentially conflicting official and semi-official explanations is bound to embody significant contradictions, and offers considerable scope for arbitrary decision-making. Uncertainty is the result. It’s also valid to claim that the same tax code may well be impossible for large numbers of honest law-abiding citizens to understand and comply with—not to mention difficult for conscientious civil servants to administer justly. As a result, many people may unintentionally violate the law or simply choose to forgo making any number of potentially wealth-creating opportunities for fear of violating the law.

Another example is the thousands upon thousands of pages of legislation being passed by Congress every year. As Gregg writes:

Then there are the rule-of-law problems associated with the sheer volume of law that directly shapes American economic life. The 2010 healthcare reform legislation, for instance, amounted to 2,700 pages. Not far behind it in length was the 2010 financial overhaul act: a mere 2,300 pages. More than a few legislators have confessed to never having read either piece of legislation in its entirety. Nor should we assume any great familiarity on their part with the thousands of pages of legislation which these acts superseded, integrated, or reinterpreted. The possibility that many laws governing healthcare and financial services have subsequently been rendered unclear, inconsistent, and impossible to comprehend is high.

These erosions of rule of law, Gregg says, result in large incentives not to take risks and not to make long-term investments. It also encourages entrepreneurs to look elsewhere for a more friendly, stable and comprehensible legal environment.

Read the piece in its entirety at Public Discourse.

Blog author: jcouretas
Thursday, February 4, 2010

The Archbishop of Canterbury, Rowan Williams, delivered a talk on theology and economics at New York’s Trinity Church last week. The historic Wall Street church was the site of the Building an Ethical Economy: Theology and the Marketplace conference which promised to “bring together leading theologians and economists to talk about the relationship between economics and Christian belief and action.”

Williams had this to say:

“Inevitably at some point, you have to talk about what level of wealth generation is compatible with the finite setting in which we live.” The global economic crisis, he said, brought to light “unreal forms of wealth generation which simply produce naughts on the end of a balance sheet that correspond to nothing.”

“Theology,” he said, “while it can’t solve specific economic problems, will be at the very least nagging at the vocabulary, nudging at the assumptions.”

And that’s how his talk went — long on literary and theological metaphor (“money is a metaphor like other things”) but precious little on economics. What’s more, there seemed to be no words in his vocabulary that would help him distinguish between competing economic systems or, in fact, help him describe how the economic systems in the United Kingdom or the United States actually work. At some point, economics transcends mere metaphor and goes to work in a concrete way in the world in which people live.

Is the archbishop aware that there has been a jaw-dropping, incredible reduction in global poverty?

World poverty is falling. … new estimates of the world’s income distribution and suggests that world poverty is disappearing faster than previously thought. From 1970 to 2006, poverty fell by 86% in South Asia, 73% in Latin America, 39% in the Middle East, and 20% in Africa. Barring a catastrophe, there will never be more than a billion people in poverty in the future history of the world.

How did this happen? What type of economic system brought this about? Doesn’t it seem as though more than “naughts” are being produced in some of the poorest regions of the world? Is this poverty reduction not an occasion for rejoicing, or at the least singing a few hymns right there on Wall Street?

You can read the 3,600 word transcript of Williams’ talk here, but you won’t learn much about poverty reduction. Or economics.

And how many times do we have to be informed, by people who apparently believe they have discovered the connection for the first time, that the root meaning of economics is from the Greek word οικονομία for household management? Can you see the metaphor coming?

Williams announces that the “isolated homo economicus of the old textbooks, making rational calculations of self-interest, has been exposed as a straw man: the search for profit at all costs in terms of risk and unrealism has shown that there can be a form of economic ‘rationality’ that is in fact wildly irrational.”

Rowan Williams’ visit to Wall Street would have been more educational for him, and more edifying for those who heard his talk, if he had actually spent some time with the people who work in that district. He would have found out that, by and large, they’re not so “irrational” after all. They might help him understand how the world works, and that not everyone who labors on Wall Street, or on Main Street, believes that all human relations “are actually to do with exchange and the search for profit,” as he describes it. He might even find the imago Dei in one or two people who work on Wall Street. But he will only find that Image in real human persons, not metaphors.

Blog author: jwitt
Friday, October 16, 2009

In a new essay at The American, Jay Richards explains why capitalism isn’t based on greed.

In Acton’s first documentary, The Call of the Entrepreneur, Richards along Rev. Robert Sirico, Sam Gregg, Michael Novak and others touch on this matter in making the moral case for the free economy.

“The Deal Professor,” Steven M. Davidoff, has a good piece at The New York Times website about the indispensability of finance to our economy. It briefly rebuts the view popularized in the Oliver Stone movie Wall Street, in which financiers are portrayed as greedy parasites. I left a comment at the web page, noting that our documentary The Call of the Entrepreneur makes a similar case. I include the comment below, since it may not pass muster with the page’s comment moderator:

A documentary that explores the wealth-creating role both of the entrepreneur simpliciter and the finance entrepreneur in particular: The Call of the Entrepreneur. The film appeared on more than 80 PBS affiliates nationwide, including repeated airings in several major markets. And in what may be a first, it appeared both on PBS and Fox Business. I mention this by way of reassuring readers that the documentary isn’t screechy.

The one-hour film is a combination of narrative and expert commentary that many have found useful for explaining what entrepreneurs and merchant bankers bring to the economy, a particularly useful explanation for friends and family who wouldn’t read a lengthy article or book on the subject but will watch a documentary with high production values. It doesn’t pretend that there isn’t corruption or greed on Wall Street, but it does insist that these elements do not provide a full picture.

Full disclosure: I wrote the script for the documentary and am a fellow of the institute that created the film, The Acton Institute. The film is available at Also, the film doesn’t address the market distortions generated by Alan Greenspan and others, distortions that encouraged excesses in the financing world leading up to the economic crisis. Those issues are tackled at our web page on the economic crisis:

— Jonathan Witt

Memo to documentary filmmaker Michael Moore: Free markets didn’t cause the financial crisis. The biggest culprits were government planners meddling with the market. That’s the message of Acton’s newest video short.

So why on earth is Michael Moore (Capitalism: A Love Story, Sicko) so eager to route even more power and money through Washington? Centralized planning is economic poison. Doubling down isn’t the cure.

(Also, Acton’s resource page on the economic crisis is here.)