Posts tagged with: wealth

Blog author: jballor
Tuesday, July 22, 2014

Idle RichOver at his blog, Peter Boettke writes, “The idle rich are never really idle in a free market economy.”

Now while we might want to distinguish between the rich and their riches, could it be that even in their consumption, conspicuous or otherwise, the rich are contributing to a rising tide that lifts all boats? Wesley Gant makes that related case over at Values & Capitalism: “Is It Possible to Waste Money?”

Gant seems to conclude that it isn’t possible to “waste” wealth. “Humans do not consume resources; they create and exchange them,” he says.

One might argue, however, as John Mueller does, that humans create and exchange things, but that they also consume and distribute them. It’s a truncated and reductionist economism that doesn’t do justice to that fuller picture. A basic problem with this kind of view is that it cannot distinguish between types of consumption. Maybe we need “ethics” rather than “economics” proper to do so, but that just goes to show the limitations of the economic way of thinking.

On Gant’s account, it would seem that there is no such thing as bad stewardship. Now it may be that consumption of luxuries is not always bad, or that such consumption often does have some redeeming virtues. But is it the case that such reasoning can justify any exchange or consumption? (As long as it doesn’t involve the government, of course!)

Perhaps the guy who got the one talent and buried it in the ground should have just given the wealthy owner a basic lesson in such economics.

Blog author: jballor
Thursday, April 24, 2014

cittfcSpeaking of Thomas Piketty, here’s a very helpful and revealing interview with Matthew Yglesias, “Thomas Piketty doesn’t hate capitalism: He just wants to fix it.” (HT: PEG)

A few highlights with some comment:

On the need for a historical perspective in economics:

Thomas Piketty: … It’s not only economists’ fault. Historians and sociologists are too often are leaving the study of economic issues to economists. Sometimes nobody does it.

52-Kids-innovationInequality in consumption used to be a matter of acreage. Throughout most of history, economic value was chiefly found in land or personal property. The divide between the rich and the poor was therefore between those who owned property and those who did not.

But the age of technology has changed that. “A billionaire and a member of the middle class have relatively equal portals to the wonders of the internet,” says John O. McGinnis, “certainly far more equal access than the rich and the rest of society would have had to the material goods that defined wealth in centuries past.” Nowadays, if we want to reduce inequality we need to focus on redistributing the benefits of ideas and innovations:

Acton Institute President Rev. Robert A. Sirico stopped by the studios of today and spoke with host Joe Deaux about how Pope Francis differs from his predecessors in his approach to economic issues.

The pope is emphasizing “human solidarity,” Sirico said. “He quoted Benedict by saying that globalization has brought us to be close, to be neighbors, but not to be brothers.” Achieving a sense of fraternity is the goal.

We’ve embedded the video for you below.

greedIn a New York Times op-ed, Daniel Goleman, a psychologist and author, declared, “Rich People Just Care Less.” How does he know this? Because studies have been done. So there. Rich people lack empathy, don’t listen to people lower on the social ladder than themselves, and

…seem to pay particularly little attention to those with the least power. To be sure, high-status people do attend to those of equal rank — but not as well as those low of status do.

Except, it’s not quite true. It’s a little off. Skewed. Downright…flawed. (more…)

This morning at Acton University I attended a fascinating lecture by Dr. Edd Noell, “Origins of Economics: The Scriptures and Early Church Fathers.” I have briefly examined one ancient Christian perspective on wealth in the past (here), but Dr. Noell’s survey today was far more expansive. For the benefit of PowerBlog readers, I would like to reflect on some of the major themes of his talk here as a sort of preview of what one could expect once the audio is available for sale. (more…)

The Good Rich and What They Cost Us, Robert Dalzell Jr.In a new book, The Good Rich and What They Cost Us, Robert Dalzell Jr. aims to address “a great paradox at the core of the American Dream: a passionate belief in the principles of democracy combined with an equally passionate celebration of wealth.”

In a review for the Wall Street Journal, Amity Shlaes notes that although the book provides an in-depth look at the history of American philanthropy, the author’s own personal prescriptions lend too high a trust to government redistribution:

“The Good Rich” starts out like a tour through a portrait gallery, describing rather than judging. For much of his narrative, Mr. Dalzell refrains from giving his own opinion explicitly and reports merely that the rich have often blamed themselves for their lapses or oversize good fortune, or that their peers did.

Toward the book’s end, though, Mr. Dalzell drops his own screen, putting forward a familiar argument: that democracy suffers unless wealth and philanthropy are redistributed to reduce economic inequality. Even the “good rich” cost us: They don’t give wisely, Mr. Dalzell contends, spending too much on “elite institutions like Harvard, Yale, MIT and Princeton, which seems unlikely to reduce the income gap by much.” …For the sake of the public good, then, the rich must fashion better charity projects while handing over more of their money to the government.

Such philanthropic efforts deserve to be thoroughly examined. Likewise, from the poorest of us to the wealthiest, we should be energetic in examining our own activities, using discernment and wisdom in how we use our resources. But as Shlaes indicates, if it’s difficult for we individuals to wrestle with these deep questions about stewardship — particularly when we’re calling on the Divine for wisdom, as many philanthropists under Dalzell’s microscope claim to have done — how much more difficult will it be for a bloated government machine to utilize proper discernment? (more…)