Posts tagged with: welfare state

On National Review Online, Acton Research Director Samuel Gregg reflects on President Obama’s State of the Union address last night, and flags the “reality-denial” that is expressed by “a few token references to free enterprise and rewarding individual initiative (to reassure us we’re still living in America instead of just another declining European social democracy).” More:

Judging from the president’s remarks, you’d never guess we just had a negative quarter of economic growth; or that the unemployment rate just ticked up again; or that millions of Americans have simply given up looking for work; or that Obamacare is (as predicted) already driving up the health-care costs that the president claimed are falling (just ask those businesses busy shifting thousands of employees into part-time positions in order to cap their exploding health-care costs); or that . . . again, I fear I am belaboring the point.

What’s the plan from the White House?

… we hear the president tell us, yet again, that we need to pump more money into universities and colleges. Never mind the higher-education bubble, which is going to implode sooner than most people think. We’re also told that we need to develop high-speed rail. One wonders if anyone has asked people in the People’s Republic of California how that’s working out. Then there is the apparently endless promise of green energy, which, despite the billions of taxpayer dollars poured into it, hasn’t actually created that many jobs at all. In addition to all this, we are now informed we must raise the minimum wage. Never mind all the evidence underscoring just how much damage minimum-wage laws do to the job prospects of the poor and many young people, not to mention newly arrived immigrants who just want a chance to start working.

Read “Rhetoric versus Reality” by Samuel Gregg on NRO.

And pick up a copy of Gregg’s new book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future here.

Thanks to RealClearPolicy for linking.

Samuel Gregg was recently on WORD-FM: Pittsburgh’s “The Ride Home with John and Kathy” to talk about Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future. They discuss many of the main themes of the book, including:  Americans’ changing attitude toward liberty and economic freedom, entitlements, and the welfare state.

Listen to their discussion here:

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Becoming Europe is available as a hardcover or an eBook. If you want to learn more, read a free sample, or purchase the book, click here.

In the Washington Times, Nile Gardiner praises Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, the new book by Acton Research Director Samuel Gregg. Gardiner, the director of the Margaret Thatcher Center for Freedom at The Heritage Foundation and a Washington-based foreign affairs analyst for The Telegraph, says Becoming Europe “should be on the desk of every member of the House and Senate who cares about the future of America as a prosperous and free nation.” Gardiner recommends the book for its “rich detail describing the economic and social ‘Europeanization’ of America, from the rise of vast welfare systems to growing skepticism of the merits of the free-enterprise system.” Excerpt from the review:

“Becoming Europe” is a meticulously researched and well-argued thesis that lays out what is at stake for the world’s superpower, as it faces a stark choice between European-style decline or a return to the original vision of America’s Founding Fathers, as well as the classical liberal teachings of Alexis de Tocqueville, Friedrich von Hayek and Adam Smith. Mr. Gregg, who is director of research at the Acton Institute, paints a grim picture of the direction America is taking but, nevertheless, conveys a positive message to his readers. Mr. Gregg argues that while America is indeed on the path to the European model, it can still turn back and avoid the fate that Europe looks doomed to suffer. In many respects, this is an optimistic book based upon faith in America’s ability to renew itself through rediscovering the principles of economic liberty.

I agree with Mr. Gregg’s assessment. As Gallup polling consistently shows, America is still at its core a conservative nation, one that cherishes the foundations of individual liberty. The fire of freedom still burns brighter on this side of the Atlantic than it does in the Old World, where the suffocating supranationalism of the European Union marches on, with the EU heading toward ever-greater political and economic centralization. The European nightmare can be avoided here, however, only if America’s leaders, at both a national and state level, are willing to stand up for economic freedom and reject the destructive ideology of big government. Washington is already on the path to Brussels, Paris and Athens, but it still has an opportunity to reverse course and avoid the road to economic ruin.

Read Nile Gardiner’s full review of Becoming Europe in the Washington Times.

New York Post illustration

New York Post illustration

In the New York Post, Acton Research Director Samuel Gregg looks at “the spread throughout America of economic expectations and arrangements directly at odds with our republic’s founding” and asks what the slow walk to “Europeanization” means for the long term. Gregg:

Unfortunately there’s a great deal of evidence suggesting America is slouching down the path to Western Europe. In practical terms, that means social-democratic economic policies: the same policies that have turned many Western European nations into a byword for persistently high unemployment, rigid labor markets, low-to-zero economic growth, out-of-control debt and welfare states, absurdly high tax levels, growing numbers of well-paid government workers, a near-obsession with economic equality at any cost and, above all, a stubborn refusal to accept that things simply can’t go on like this.

It’s very hard to deny similar trends are becoming part of America’s economic landscape. States like California are already there — just ask the thousands of Californians and businesses who have fled the land of Nancy Pelosi.

Europeanization is also reflected in the refusal of so many Americans to take our nation’s debt crisis seriously. Likewise, virtually every index of economic freedom and competitiveness shows that, like most Western European nations, America’s position vis-à-vis other countries is in decline.

Is there a way out, even as the “fiscal cliff” negotiations vividly illustrate the inability of Washington’s political elites to take spending and tax problems seriously? Gregg holds out hope: (more…)

Ann Schneible, who interviewed Rev. Robert A. Sirico for Vatican Radio today (see PowerBlog post for audio) also published an interview with the Acton Institute president and co-founder on the Catholic news site, Zenit. Excerpt:

ZENIT: In response to those Christians and Catholics who are hesitant about buying into the idea of a free market economy, how can one demonstrate that there are elements to a free market – or Capitalist – economy which are compatible to Catholic social teaching?

Father Sirico: There are a number of elements that can make the connection. I keep going back to this anthropological question because that’s the beautiful way to do it. I think it was Chesterton who said that Catholicism is the religion of stuff, by which he was really addressing the Incarnational nature of the Church. We have incense, and bells, and candles, and vestments, and all these things. In other words – in a non-liturgical context – the material world is good. We see that in the book of genesis. And God places us in the material world and asks us to pursue sanctity there.

The moment he places us in the material world, he places us in the context of limitations and scarcity. This gives rise to economics – which means that we have to find a way that is in accord with our nature, that is ethical, that is appropriate, that is effective – to make use of nature for the glory of God. It is in the same way an architect who studies geometry uses that geometrical precision and technique to build the façade of a cathedral, and thereby rendering praise to God. So too in a different way, the entrepreneur, who discovers the use of something or the combination of other things and represents and organizes them and creates a network and a marketing campaign to build a business, that that architectural construct ends up sustaining many families who participate in that, and sustain many consumers in the sense that they buy a good or a service at a higher quality and for a lower price than they would have otherwise, thereby giving their family a little more money to use at their discretion; all of these things, too, can be considered rendering nature for the glory of God. And that’s enterprise; that’s business. I don’t like the word “capitalism” because I think it’s too narrow a word. I like “free economy,” or “free market.”

Read “A Moral Case for a Free Economy — Acton Institute’s Co-founder Explores Free Market Economy in New Book,” an interview by Ann Schneible on Zenit.

On Vatican Radio, Acton President and co-founder Rev. Robert A. Sirico discusses his new book Defending the Free Market: The Moral Case for the Free Market Economy with reporter Ann Schneible.

According to Vatican Radio, the broadcasting station of the Holy See:

… Fr Sirico highlighted his objectives in writing this book. Defending the Free Market, he said, was written “with the intention of making accessible economic ideas that I thought were important in general terms; but, in particular, especially for religious people, to understand there is what we call a normative or moral dimension to economic activity.”

“It’s not just, live by the Ten Commandments and open a store,” Fr Sirico explained, but he wanted to demonstrate “that there’s something more internal to the whole dynamism of a market economy that makes sense both economically and morally.”

Click on the media player below to listen to Schneible’s full interview with Rev. Sirico:

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Writing on The Corner over at National Review Online, Acton Research Director Samuel Gregg points to the election and, refreshingly, tells us that, “I’m not one of those who, in recent days, have seemed inclined to indulge their inner curmudgeon, apparently convinced that it’s more or less game-over for America and we’re doomed to Euro-serfdom.”

Gregg, author of the soon-to-be-released and available for pre-order Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future (Encounter Books, January 2013), explains why there are, still, important differences between Eurotopia and the United States. For one thing:

… the strength and persistence of private entrepreneurship continues to substantially differentiate America’s economic culture from that of Europe. America remains ahead — and, in some areas, continues to pull ahead — of most of Europe when it comes to private innovation. As noted in a World Bank report earlier this year, the elements that fuel innovation, such as ease in obtaining patents and availability of venture capital, continue (at least for now) to be far stronger in America than in most of Europe.

The same report specified that it is young firms driving innovative growth in America. Among America’s leading innovators in the Industrial R&D Investment Scoreboard, more than half were created after 1975. They include firms such as eBay, Microsoft, Cisco, Amgen, Oracle, Google, and of course Apple. By contrast, only one in five leading innovators in Europe is young. In America, young firms make up an incredible 35 percent of total research and development done by leading innovators. Their European counterparts account for a mere 7 percent in the old continent. That’s great news for America and a major headache for Europe over the long term.

Read “Are We all Europeans Now?” by Samuel Gregg on NRO.

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.

Blog author: jcouretas
posted by on Wednesday, September 19, 2012

Writing in National Review Online, Acton Research Director Samuel Gregg weighs in on Mitt Romney’s remarks about the “47 percent”:

Ever since the modern welfare state was founded (by none other than that great “champion” of freedom Otto von Bismarck as he sought, unsuccessfully, to persuade industrial workers to stop voting for the German Social Democrats), Western politicians have discovered that welfare programs and subsidies more generally are a marvelous way of creating constituencies of people who are likely to keep voting for you as long as you keep delivering the goods. In terms of electoral dynamics, it sometimes reduces elections to contests about which party can give you more — at other people’s expense.

For several decades now, it’s been a playbook successfully used by European parties of left and right, most Democrats, and plenty of country-club Republicans to help develop and maintain electoral support. As Tocqueville predicted, “Under this system the citizens quit their state of dependence just long enough to choose their masters and then fall back into it.” In such an atmosphere, politicians who seek to reduce welfare expenditures find themselves at a profound electoral disadvantage — which seems to have been Mr. Romney’s awkwardly phrased point.

Of course, it all ends in insolvency, as we are seeing played out in fiscal disasters such as the city of Los Angeles, the state of California, the city of Philadelphia, the city of Detroit, the city of Chicago, and the state of Illinois.

Read “Mitt de Tocqueville” on NRO by Samuel Gregg.

A video surreptitiously filmed during one of Mitt Romney’s private fundraisers was leaked and captured the Republican presidential nominee talking to donors last April in a Florida home (watch below) during a very candid moment.

While Romney states the facts and opinions as he sees them regarding the prevalent public welfare culture in America, he quotes figures that will surely stir animosity from within the Obama administration and his loyal Democratic voters.

Here’s a summary of what Mitt Romney told his campaign donors:

There are 47 percent of the people who will vote for the president no matter what…There are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe the government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it. ..They will vote for this president no matter what… And so my job is not to worry about those people. I will never convince them [that] they should take personal responsibility and care for their own lives. What I have to do is convince the five to ten percent in the center, that are independents, that are thoughtful, the look at voting one way or the other…

(more…)