Posts tagged with: washington

Acton On The AirOver the past few weeks, Kishore Jayabalan – Director of Acton’s Rome office – has been called upon a couple of times to comment on Italian and American budget negotiations for Vatican Radio. On Saturday, Jayabalan discussed the then-ongoing US budget negotiations:

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Kishore also made an appearance on Vatican Radio to discuss Italy’s debt issues back on the 13th of July, making the point that while austerity would be required, economic growth would be a necessity as well for Italy to solve its debt issues:

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Blog author: eamyx
Thursday, July 14, 2011
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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.

In this week’s commentary, which will appear tomorrow, I summarize and explore a bit more fully some of the discussion surrounding evangelical and religious engagement of the budget battles in Washington. One of my core concerns is that the approaches seem to assume too much ongoing and primary responsibility on the part of the federal government for providing direct material assistance to the poor. As “A Call for Intergenerational Justice” puts it, “To reduce our federal debt at the expense of our poorest fellow citizens would be a violation of the biblical teaching that God has a special concern for the poor.”

In one real sense this perspective lets Christians, individually and corporately, off the hook too easily. I highlight the following quote from Abraham Kuyper: “Never forget that all state relief for the poor is a blot on the honor of your Savior.”

My basic contention is that we can only move to address the secondary role of governments of various levels (local first, federal last!) providing relief when we have thoroughly grappled with Kuyper’s basic insight here. Lester DeKoster and Gerard Berghoef explore this dynamic in a bit more detail in their Deacons Handbook, in a section on “The Church and the Welfare State.” They take as their starting point the position that “Government has undertaken to do what conscience, tutored out of the Scriptures, demands but fails, through the Church, entirely to achieve.”

In this way their emphasis is on revitalizing the diaconate first. They recognize that in many ways the government has filled in the gaps, but in so doing has often eroded the foundations and space for other organizations to step back in and fulfill their own mandates. DeKoster and Berghoef, writing in 1980, anticipate something like the faith-based initiative as part of the move back for the church to meet its social responsibility.

I’m less sanguine about that proposed solution, but I do think that the tax credits for charitable giving are something that ought to be protected, or perhaps even enhanced (President Obama’s latest proposal would limit exemptions for wealthy citizens.). In this context it is also worth noting the conclusions of a recent NBER paper, which shows that government subsidy tends to “crowd out” the initiative of private institutions from seeking their own sources of funding (imagine that!).

Kuyper’s quote comes from his opening address to the First Christian Social Congress in Amsterdam, November 9, 1891, and is published in translation as “The Problem of Poverty.”

Update: Over at the CRC Network, Karl Westerhoff, who guides the “Deacons” topic, asks some pertinent questions:

But how is this a diaconal matter? Well, I’m wondering…. Does this national conversation have echoes in our churches? In our families? Should it? Are there implications for how we make OUR budgets? And what about our families? Is there an opportunity here for some fresh conversation about family spending patterns? Can we talk about the choices we make with our money, and the expectations we have for the money we spend on charity? Where has the church spent benevolent money that really had the result we hoped for? What can we learn from that? How are we shaping our family lives and our congregational lives in ways that address need in truly Christ-like ways?

These are precisely the kinds of questions we need to be asking. I think what we’ll find is that government has a far larger and more expansive role in some of these answers than many often think.

Blog author: jballor
Thursday, December 16, 2010
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In this week’s commentary I say that part of the reason less money is being given to local churches is that it is reflective of a broader trend of distrust towards institutions.

Commentary magazine’s blog contentions has some more recent data confirming this overall shift. The post summarizes the December issue of AEI’s “Political Report” (PDF), which focuses especially on trust in the government. It finds that “contemporary criticisms of the federal government are broad and deep” and that, for instance, “Today three in ten have no confidence that when Washington tackles a problem it will be solved. That is the highest response on the question since it was first asked in 1991.”

But more broadly and inline with what I point to in this week’s commentary, we find that this lack of confidence in the government is not exception to the general loss of institutional faith. Indeed,

The public is deeply skeptical of big powerful institutions with substantial reach and diffuse missions. Big government, big labor, big business, and big media fall into this category, and public criticism of all is significant.

No doubt this applies to “big religion” as well. My friend John H. Armstrong has examined whether and why “young doubters” are leaving the church in seemingly greater numbers. And we can see how all this has negative implications for denominations and super-denominational structures (like the mainline ecumenical groups). As I argue in Ecumenical Babel, this means that many of these institutions might well be ripe for reform, in part because that is their only avenue for survival.

Another election has come and gone, and once again the balance of power has significantly shifted in Washington, D.C. and statehouses across America.  Tuesday’s results are, I suppose, a win for fans of limited government, in that a Republican House of Representatives will make it more difficult for President Obama and his Democrat colleagues in the Congress to enact more of what has been a very statist agenda.  But even with the prospect of divided government on the horizon, we who believe in individual liberty and the principles of classical liberalism still have much to be concerned with.  Perhaps the primary concern is whether or not those Republicans who were swept into office—not due to any real love of the electorate for the Republican Party, but rather due to anxiety over the direction the Democrats have taken the country—will be able to hold to the principles of limited government and individual liberty that so many of them claimed to espouse during the campaign, or whether those principles will be abandoned in a mad pursuit of power.  Forefront in the mind of every lover of liberty should be Lord Acton’s famous maxim: “Power tends to corrupt, and absolute power corrupts absolutely.”

My sincere hope is that with Americans deeply dissatisfied with both major political parties and finding that the government is either unable or unwilling to solve the major fiscal and social problems that we face, people will begin to re-think their basic assumptions about the role of government in American life.  For decades, the default assumption has been that the government is a force for good and can be a driver of positive social change.   Witness Social Security, Medicare, the Great Society, the War on Poverty, etc.  All of these programs were designed by experts to alleviate some pressing social need, and were assumed to be the right thing to do.  After all, who wouldn’t want to help the poor and elderly to live a fuller, better life?  And yet, as the years went by, all of these programs—though well-intentioned by their creators—have failed to achieve their lofty goals.  The Social Security “trust fund” is devoid of funds and packed with IOUs left by politicians who, over the years, have spent the money promised to seniors on other programs.  Medicare, Medicaid, and other government health care programs have warped the economics of health care, paying doctors less and less and therefore driving up the cost of private insurance in order to make up the difference.  Obamacare is little more than an attempt by the government to solve a cost crisis—created in large part by government intervention—with even more extensive government intervention into the market.  We already know how that story ends.  And as for the Great Society and the War on Poverty, trillions of dollars over the years simply failed to alleviate poverty in America, and in many cases only created deeper, more entrenched social problems.

It is clear by now to anyone who cares to look that massive government intervention into society tends to do more harm than good, no matter how well intentioned the interventionists are.  Government has its place—no arguments for anarchy are to be found here—but the government must be limited to its proper place.  The genius of the American founding came in the limitation of the national government to certain enumerated functions, leaving the people at liberty to take care of the rest of life as they saw fit.  The respect for individual liberty and the acknowledgement that the rights of citizens were not granted by the state but were granted to individuals by God himself provided a firm foundation for the vibrant growth and strength of the United States in the coming centuries.  As a people, we need to realize that the further we move away from those founding principles and the more we cede our liberty to governmental agents in return for a promise of security, the less likely it is that we will remain strong, vibrant, and free.

At the Acton Institute 20th Anniversary Celebration, Acton President Rev. Robert A. Sirico reminded us of the roots of human dignity and the importance of individual liberty during his keynote address:

Political commentators have spilled a septic field of ink explaining what drives the Tea Party movement; and, sure, the movement is complex and varied, resisting any single attempt to blah blah blah. But the core of it boils down to the Saturday Night Live skit below. The analogy runs like this: The Steve Martin character and his wife represent the ruling political class in Washington; and the Tea Party is the book author.

I realize it’s not a perfect analogy. If it were a perfect analogy, the book author wouldn’t be nearly as detached, because the couple has been spending the author’s money using a credit card he had idiotically loaned them a few years before. Oh, and the husband would be accusing the book author of racism, or of being a flyover country yahoo without the sophistication to understand Keynesian economics or something.

[Hat Tip to Luke at Cornerstone University for the SNL skit.]

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.)

What is the root cause of the sub-prime crisis shaking the global economy? We need to know so we don’t allow it to screw up our economy even worse.

Many point to dishonesty and poor judgment on Wall Street. There was plenty of that leading up to the near-trillion dollar bailout, and even now the stock market is busily disciplining stupid, dishonest companies.

Others point to the many people who falsified loan applications to get mortgages beyond their means. That too played a role.

But dishonesty and poor judgment are as old as Adam and Eve. Something more was at work in the present crisis, a crisis of unprecedented scope. Why didn’t profit-minded loan companies run thorough credit checks? Why did they keep pumping out low interest loans to high risk borrowers, ignoring the risks?

It’s as if somebody spiked the financial system’s punch bowl with stupid juice, driving normally prudent financiers to dash, en masse, over the cliff.

It seems that way because it is that way. The brewers of the stupid juice were largely (if not exclusively) politicians in Washington who sought to redistribute wealth from the rich and middle class to poor people with bad credit. These politicians fostered various laws and institutions that directed, cajoled and legally bullied mortgage companies to extend big loans to people with little credit.

A case in point is a group called ACORN—Association of Community Organizations for Reform Now. Stanley Kurtz explains in an Oct. 7 essay at National Review Online:

“You’ve got only a couple thousand bucks in the bank. Your job pays you dog-food wages. Your credit history has been bent, stapled, and mutilated. You declared bankruptcy in 1989. Don’t despair: You can still buy a house.” So began an April 1995 article in the Chicago Sun-Times that went on to direct prospective home-buyers fitting this profile to a group of far-left “community organizers” called ACORN, for assistance. In retrospect, of course, encouraging customers like this to buy homes seems little short of madness.

… At the time, however, that 1995 Chicago newspaper article represented something of a triumph for Barack Obama. That same year, as a director at Chicago’s Woods Fund, Obama was successfully pushing for a major expansion of assistance to ACORN, and sending still more money ACORN’s way from his post as board chair of the Chicago Annenberg Challenge. Through both funding and personal-leadership training, Obama supported ACORN. And ACORN, far more than we’ve recognized up to now, had a major role in precipitating the subprime crisis.

(more…)

The first week of the CRC’s Sea to Sea bike tour is in the books. The first leg of the journey took the bikers from Seattle to Kennewick, a total distance of 319 miles.

The first day’s devotional, “Shifting Gears,” sets the stage for the entire trip. Alluding to the biblical exodus of the Israelites from Egypt, we read that God’s people “had to learn dependence instead of independence, freedom instead of slavery, and obedience instead of rebellion.” These are things God’s people from all times and places must continually learn.

Day 4’s devotional concentrates on the freedom of movement that a bike represents. “For millions of poeople in the world a bike is an essential of daily life. It afford opportunity–to buy, sell, earn, shop, and play,” we read. They day’s text is Galatians 5:1, “It is for freedom that Christ has set us free.”

The devotion for the fourth of July includes a timely reminder about the ultimate loyalty of all Christians, whose citizenship finally is not of this world: “Jesus is the final authority. All other authorities are acting in his service, whether they recognize it or not.”

The final devotion of the first week puts the entire tour in perspective, as “the tour’s primary goals are to celebrate God’s faithfulness, to promote unity in the church, and to raise funds to end the cycle of poverty in North America and around the world.” I hope to see how these goals are concretely connected to the Great Commission as the tour progresses.

The first week of the bike tour took the participants through the state of Washington. To find groups that are focused on making compassion effective in these areas, see the Samaritan Guide’s listings for Washington, and take special note of Seattle’s Heroes Transitional Catering Business (rated “excellent” in 2007) and Yakima’s Housing for the Homeless (located in the Day 4 destination).

The Acton Institute was out in front on the warnings of all the problems associated with using corn ethanol as a fuel source. My article “The Unintended Consequences of the Ethanol Quick Fix“ was published in The Christian Science Monitor last July.

The United Methodist General Board of Church and Society has uncovered a new problem with corn ethanol. According to the GBCS corn is sacred to indigenous people, thus not appropriate for being used as an energy source. Could this be the famed corn goddess they are referring to?

A minister who attended a seminar forum expressed to me the feeling that the GBCS conference was far too left leaning, which is of course no surprise when one is talking about the United Methodist lobbying group. A few prominent themes of the forum were boycotting professional sports teams in Washington D.C. because new stadiums have displaced people who live in low income housing, environmentalism, and left leaning poverty initiatives. In a phone conversation today the minister expressed disappointment in the lack of attention that was given to more traditional Christian teachings, and called the political agenda “over the top.” This seminar program was designed for students in the 15 to 18 year old age group.

The GBCS is noted for all kinds of various left wing antics, such as their recent push for anti-Israeli divestment proposals. During this 4th of July holiday, I’m also reminded of when one of their staff members took cheap shots at the American flag in sanctuaries, going so far as to make a comparison with Nazis flags which once adorned German sanctuaries. Mark Tooley offered an excellent response to that controversy in FrontPage Magazine over a year ago.