Author Profile - David Michael Phelps

Geldof Trades Up

Tuesday, May 16, 2006
Sir Bob, Free Trader?
The May 16 Independent is guest-edited by the ubiquitous Bono and sports the RED brand--another Bono project where a share of the profits from the mag will be donated to fighting AIDS and poverty in Africa. (Other companies with RED brands include Converse, American Express, Armani, and GAP.) See the issue for yourself (where you will find a critique of subsidies, as well as Nelson Mandela giving props to RED as well as an interview with commedian Eddie Izzard--two men who much too rarely share a marquee).

What is of special interest to PowerBloggers is the article by Bob Geldof, founder of Live8, titled: Aid isn’t the answer. Africa must be allowed to trade its way out of poverty. This is the same Bob Geldof who has been lobbying for huge aid packages for twenty years, the same Bob Geldof who said “We must do something, even if it doesn’t work.” It quite something that this same fella who wrote the following:
In a time of weak world leadership, when the WTO negotiators are failing so miserably, let us remind their bosses - Bush, Chirac, Merkel et al - that we agree with them when they argue that, long term, “aid isn’t the answer”, and that the continent of Africa and its people must trade its way into the global market and sit where it rightfully belongs, negotiating as equals with the rest of us.

As always, I have no interest in questioning the intentions of Bob and Co.--I think they are the noblest of intentions, and I think more people ought to share their zeal for the poor. But could this admission that long term aid isn’t the answer mean that projects like the ONE Campaign are losing their luster? Or are people realizing that governments can’t solve poverty, but maybe the corrective is individual charity and free trade amongst free peoples?

And it is also worth noting that the cover art for the mag includes “Gen. 1:27”--I will save you the trouble of looking it up: “God created man in his own image; in the divine image he created them; male and female he created them.” I am curious how far Bono has parsed out the implications of this statement, as this verse lays the foundation for many of Acton’s economic arguments (for example, see here).
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Eyes Without Feeling, Feeling Without Sight

Wednesday, May 10, 2006
ABC columnist and Temple professor John Allen Paulos has an interesting piece this week on a new paper outlining an economic theory of prostitution. Basically, the authors outline the incentives and patterns involved in the “world’s oldest profession” (a moniker I think is misleading, for the title truly belongs to gardening). I will let you read both the paper and the article yourself, because it is only Mr. Paulos’s conclusion I would like to discuss here:
Like any statistical model, this one ignores the diversity of real people and the complexities of love and pleasure, changing social mores, et cetera. Still, once all its equations have been solved, a simple fact remains: Most women enter prostitution for the money.

This being so, legalizing it, regulating it (strictly enforcing laws against pimping, child prostitution, public nuisance and so forth) and improving the economic prospects for women seem to me a greatly preferable approach to it than moralistic denunciation.

But like any purely economic assessment, Mr. Paulos’s statements above ignore the essence of man, ignores the question “what is a human person truly?” Without an understanding of the inherent dignity of the human person--in action how like an angel, in apprehension how like a god!--it is easy to reduce all human interaction to economics, to simple exchange.

All such reduction goes out the window if you posit the following: “the human person is designed to be a gift.” If the core of human essense is to love, that is, to make a gift of one’s self, all reduction of a human person to her market commodity is not only ultimately counterproductive to a healthy market, but destructive of the human person herself.

If the human person, at her core, is designed for love, for self-giving, to reduce her to a economic commodity is to deny her true nature. Why should this matter? To try to tease use out of something not designed for that use not only destroys the use, but the used as well.

Some closing thoughts from Karol Wojtyla’s Love and Responsibility:
“The principle of ‘utility’ itself, of treating a person as a means to an end, and an end moreover which in this case is pleasure, the maximization of pleasure, will always stand in the way of love...”

“The person is a good towards which the only proper and adequate attitude is love...”

“...love for a person must consist in affirmation that the person has a value higher than that of an object for consumption or use.”

This is precisely what Mr. Paulos neglects to understand. His concern about ‘moralistic denunciation’ betrays an inexcusable ignorance about the end of economics, which is man, and the end of man, which is Love.

Before Mr. Paulos advocates regulation as opposed to moralism, perhaps he ought to spend some time asking himself morality’s question: “What is man?”
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If You Believe They Put a Man on the Moon...

Monday, May 8, 2006
Next stop...
Last week, it was reported that NASA’s budget is so thin that it puts “America’s leadership in scientific research is at risk.” (Last year’s NASA budget was around $16 billion, give or take a few hundred million.)
The National Research Council says the space agency is “being asked to accomplish too much with too little.” The group points to the competing demands of building the international space station and returning astronauts to the moon.

So what should a large government agency do when budgets run high and credibility runs low?
NASA is calling on private industry to build next-generation spacecraft that can land on the moon, and it’s got $2 million to back up the bid.

The PowerBlog has often covered the X-Prize folk (here and here) as good examples of the power of private entrepreneurship. Now, these folks’ good old fashioned DIY attitude may provide the answer to returning to the moon.
NASA’s exploration vision calls for putting humans back on the moon in the next decade. The vehicles to land on the moon no longer exist,“ X Prize Chairman Peter Diamandis said in a statement. ”We believe that entrepreneurial companies can build these lunar spaceships, and a Lunar Lander Challenge can stimulate the required technology in an efficient and rapid fashion."

For NASA, the $2 million prize money is a small price to pay for the promise of technical innovation from private industry or untapped genius. The contest does not grant NASA intellectual property rights to winners’ inventions, but the space agency asks contestants to be willing to negotiate licensing rights in good faith if it shows interest in a particular technology or design.

I look forward to seeing how well this works (and I suspect it will work quite well). And when it does, I hope someone (perhaps the PowerBlog) will create a pretty cost/result chart comparing the private company that gets us back to the moon and the government agency whose budget is “too thin.”
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St. Joseph the Worker

Monday, May 1, 2006
Today is the feast of St. Joseph the Worker:
Work is a good thing for man-a good thing for his humanity-because through work man not only transforms nature, adapting it to his own needs, but he also achieves fulfilment as a human being and indeed, in a sense, becomes “more a human being”.

For the rest of this encyclical, Laborem Exercens, click here.
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Chirac Waves the White Flag

Monday, April 10, 2006
French President Jacques Chirac has given in to the student protests in his country, protests that called for the removal of the First Employment Contract. This is a controversial new law giving employers greater freedom in whom they fire amongst under-26 employees. The law, as I am sure you’ve seen, sparked students protests for weeks.

Michael Miller in last Wednesday’s Acton News and Commentary addressed the deeper issue here: economic ignorance and moral apathy--I won’t repeat his analysis here. But here’s what I’d like to point out: what will fill in the vacuum.
The minister of employment, Jean-Louis Borloo, told Le Monde newspaper that the new plan will include increasing government subsidies to employers who hire people under 26 who face the biggest obstacles to finding jobs. He said the cost to the government in the second half of the year would be about $180 million.

From more economic freedom to subsidies. It is one thing to surrender to the protests and remove this law. It is quite something else to enact an (apparently) equal and (certainly) opposite policy. One wonders what will be the straw to break the Gallic camel’s economic back. Perhaps we should start a betting pool...
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Apples and Oranges?

Wednesday, March 29, 2006
An apple a day...
Here’s an interesting story--Apple Corps is suing Apple Computer for breach of contract. You probably recognize the first Apple as the company owned by Paul McCartney, Ringo Starr, and the widows of the other two Beatles. Since 1991, Apple Corps has had a deal with Apple Computer: in essence, the music company agrees to stay out of the computer and telecommunications business, and the computer company agrees to stay out of the music business--technically, each has agreed to keep its trademark out of the others “field of use.” All was fine and dandy until innovation reared its head: iTunes. Through its iTunes Music Store, Apple Computer now sells over three million songs a day--a success driven largely by the invention of the iPod. Apple Corps claims that Apple Computer has now elbowed in to the former’s “field of use.”

So this brings up an interesting dilemma: when a company like Apple creates something new--in this case, a new distribution system for music--unimaginable in the time when the terms of a particular agreement were set, how does this change the agreement itself? When the two Apples agreed to stay out of one another’s field of use, what happens when one Apple creates a new field that is similar in some ways to the one it promised to stay out of?

...won’t keep the lawyers away.
Of course, I am no lawyer, and cannot say how things ought to play out (any thoughts on this from those who know?). But it is worth noting that the creativity of entrepreneurs--in this case, the creative minds at Apple--can easily disrupt common ways of thinking about particular industries. Markets are not static entites, but we often don’t think that innovation can also change our terms of understanding. This is not a negative. Rather, it shows the multiple powers of human creativity: the thing created also demands the creation of new ways of understanding our world and language.
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Lent: Freedom and Responsibility

Wednesday, March 22, 2006
I would like to highlight another passage from Pope Benedict’s homily (mentioned below by Kishore) from last Sunday’s homily that has particular relevance to our work at Acton:
We have listened together to a famous and beautiful passage from the Book of Exodus, in which the sacred author tells of God’s presentation of the Decalogue to Israel. One detail makes an immediate impression: the announcement of the Ten Commandments is introduced by a significant reference to the liberation of the People of Israel. The text says: “I am the Lord your God, who brought you out of the land of Egypt, out of the house of bondage” (Ex 20: 2).

Thus, the Decalogue is intended as a confirmation of the freedom gained. Indeed, at a closer look, the Commandments are the means that the Lord gives us to protect our freedom, both from the internal conditioning of passions and from the external abuse of those with evil intentions. The “nos” of the Commandments are as many “yeses” to the growth of true freedom.
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'Solutions'

Wednesday, March 15, 2006

Go here for Acton’s new video, “Solutions,” which offers a real starting place for all of us who want to do something about poverty and hunger.
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Ides

Wednesday, March 15, 2006
A snippet from the upcoming Religion & Liberty:
It is true that democracy is the best of the political systems, in that it guarantees, through universal suffrage, a peaceful changeover of power. But democracy and its instrument, majority rule, is not a method to investigate the truth. --Rafael Termes

The blessings and responsibilities of a peaceful political system: something for a free people to remember on this noteworthy day in March.

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Today's "Blast from the Past"

Wednesday, March 8, 2006
“It is the highest impertinence and presumption, therefore, in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense, either by sumptuary laws, or by prohibiting the importation of foreign luxuries. They are themselves always, and without any exception, the greatest spendthrifts in society. Let them look well after their own expense, and they may safely trust private people with theirs.” --Adam Smith

It’s nice to know our leaders are no longer like that.
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