Posts tagged with: welfare state

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
Wednesday, September 19, 2012
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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…)

As I noted yesterday, I’m in Montreal for the next couple of weeks, and today I had the chance to see some of the student protests firsthand. These protests have been going on now for over three months, and have to do with the raising of tuition for college in Quebec.

I’m teaching at Farel Reformed Theological Seminary, which is located in the heart of downtown Montreal, and is adjacent to Concordia University. As I walked around earlier this week, I noticed the following on one of Concordia’s buildings:

The Right to Education
The text is article 26 of the UN Universal Declaration of Human Rights, which reads in part, “Everyone has the right to education. Education shall be free, at least in the elementary and fundamental stages.”

I think that the kinds of protests we are seeing in Quebec might be the inevitable end of the logic of the welfare state. The logic goes something like this:

Education is a right, and should be free, or the next best thing to it. In order for it to be “free,” it must be administered, or at least underwritten, by the state, because we know that the only way to make something appear to be free is to requisition the necessary funds via taxation. This is, in fact, precisely the rationale for the existence of the modern welfare state, in which in the context of the Netherlands, for instance, it is understood to be “the task of the state to promote the general welfare and to secure the basic needs of people in society.”

Education is a right (per the UN Declaration), is constitutive of the general welfare, and a basic need. Thus it must be “fully guaranteed by the government” (to quote Noordegraaf from the Dutch context regarding social security, mutatis mutandis).

The upheavals we are seeing, then, are what happen when we can no longer sustain such guarantees. They are what happen when “free” becomes unaffordable and unsustainable.

This means that the flawed logic of the welfare state will have to be critically reexamined, no small task for a developed world that has steadily built infrastructure according to logic for much of the past seventy years.

For Quebec this does not bode well, as Cardus’ Peter Stockland puts it, “This is a province in the grip of reactionary progressives afflicted with severe intellectual and institutional sclerosis. Their malaise prevents any proposals for change from being given fair hearing, much less a chance of being put into play. Real change, not merely revolutionary play-acting, is anathema in this province.”

The conditions under which the government transfers wealth are different than the conditions under which the church transfers wealth, says James R. Rodgers. Yet many Christian leaders are tempted to use the power of the state to do what is required of the church:

Ginning up donations, however, is the hard road. Given the imperative that the needy should be fed, how much easier it is to step around the church and the power of the Gospel, and instead to make a friend of violence. It’s all in service of a good cause, after all. With the magisterial sword, no need to change hearts and actions. We only need to threaten. What a temptation it is to call on magisterial violence to accomplish God’s work. I am not a pacifist, and therefore do not object to the sword in principle. But as with war, I think that use of the magisterial sword needs justification.

There is also the impact on the church. Once the move is made to the domain of the civil sword, it’s difficult for the church to go back. If the church has ceded responsibility for the needy to the state, then what’s the point of increasing contributions to the church? To be sure, there will always be interstices in government welfare, but filling in the cracks of the welfare state is hardly a stirring call.

Read more . . .

I recently came across an interesting academic journal, Diaconia: Journal for the Study of Christian Social Practice. One of the sample articles available is by Herman Noordegraaf of the Protestant Theological University in Leiden. His piece is titled, “Aid Under Protest? Churches in the Netherlands and Material Aid to the Poor” (PDF).

The latest issue of the Journal of Markets & Morality is a theme issue on “Modern Christian Social Thought,” and a series of pieces take up a line of recent history in the Netherlands. A significant article by Rolf van der Woude, senior researcher at the Historical Documentation Centre for Dutch Protestantism at the VU University Amsterdam, examines the changes in Reformed thought on the social question from the First Social Congress in 1891 to the Third Social Conference in 1952. As van der Woude concludes, in the post war era, “A new generation believed that the beast of the state, caged for so long, had now been tamed. At the end of the 1950s, Van den Heuvel’s generation retreated, the Netherlands entered a period of economic boom, and a generous welfare state was rapidly erected from the ground up wherein welfare was no longer a matter of charity but a matter of justice guaranteed by the government. The beast of the state had become an ally.”

Noordegraaf’s piece can be read as a companion article to van der Woude’s, tracing the development (or lack thereof) in Christian social thought in the Netherlands over the last half century. As Noordegraaf writes, the situation has largely remained the same, in that the church’s primary responsibility is understood not merely to have to provide material assistance to the poor, but rather advocate for reliance on the welfare state for such provision. As Noordegraaf writes, a declaration on the problem of poverty in 1987 codified the approach of “aid under protest,” in which the churches provide aid to the poor but only under protest that the government was not meeting welfare needs appropriately. The statement reads:

We reject the way people are once again made dependent on charity. We plead for social security that is not charity but a right that is fully guaranteed by government. For this reason, financial aid given by churches in situations of need should be combined with protest against the causes of this need to government and society.

Noordegraaf’s observation is that the churches, both locally and denominationally, have been too concerned with meeting the momentary concrete needs of the poor and need to pay more attention to the mandate to lobby the government for more expansive social welfare programs. The point is that the need for Christian or church-based charity indicts the lack of justice under a modern constitutional state, where freedom from need and want ought to be simply guaranteed.

As Nordegraaf concludes concerning recent trends, “More and more, as the above mentioned reports show, churches have been involved in material aid: when people are in need and ask for help, you give it. It is a kind of safety net under the increasingly porous safety net of the state.” He continues, “The fact that the churches found this problematic reflects their belief that the principles of the welfare state are worth fighting for. This has to do with a vision of the task of the state to promote the general welfare and to secure the basic needs of people in society.” Noordegraaf concludes that “it is in harmony with the calvinist approach of the responsibility of the state that churches try to make clear to government and to society at large that they have helped with material aid. This signalizing can take many forms: in letters, reports, talks, discussions, programmes in the media, articles in newspapers and so on. In this way, individual aid is combined with advocacy in the public domain.”

I commend these two articles to your reading: Rolf van der Woude, “Taming the Beast: The Long and Hard Road to the Christian Social Conference of 1952,” and Herman Noordegraaf, “Aid Under Protest? Churches in the Netherlands and Material Aid to the Poor.”

They will make clear just how much things have changed over the last 120 years in the Netherlands, when Abraham Kuyper emphasized the priority of Christian giving in 1881, arguing that “the holy art of ‘giving for Jesus’ sake’ ought to be much more strongly developed among us Christians. Never forget that all state relief for the poor is a blot on the honor of your savior.” Such emphasis on private Christian charity is now understood to be retrograde and obsolete.

On National Review Online, Acton Research Director Samuel Gregg discusses remarks made by President Barack Obama at a March 30 campaign stop at the University of Vermont. From the White House transcript of the speech, here is some of what the president said:

The American story is not just about what we do on our own. Yes, we’re rugged individualists and we expect personal responsibility, and everybody out there has got to work hard and carry their weight. But we also have always understood that we wouldn’t win the race for new jobs and businesses and middle-class security if we were just applying some you’re-on-your-own economics. It’s been tried in our history and it hasn’t worked. It didn’t work when we tried it in the decade before the Great Depression. It didn’t work when we tried it in the last decade. We just tried this. What they’re peddling has been tried. It did not work. (Applause.)

Gregg on NRO:

… it’s especially noticeable that when insisting we must take care of our neighbor the president said nothing about the role of volunteer associations — or any non-state formation whatsoever — in addressing social and economic challenges. Nor did he mention anything about the often-selfless work of loving our neighbor undertaken by the same religious organizations whose constitutionally guaranteed (and natural) liberty to live, act, and serve others according to their beliefs is being unreasonably constricted by the more ghoulish segments of his administration in the name of “choice.”

Like all good Rawlsians, President Obama finds it hard to conceptualize the possibility that private communities and associations might often be better at helping our neighbor in need than governments. Instead, his instinct is to search immediately for a political state-focused solution. If the president invested some time in exploring the concept of social justice, he would discover that its earliest articulators — mostly mid-19th-century Italian Catholic theologians – thought it should be primarily realized through associations and institutions of civil society with the government playing a supportive, but normally background role.

Read “So Who Is Our Keeper, Mr. President?” by Samuel Gregg on NRO.