A practical man?

On the American Spectator, Acton Research Director Samuel Gregg examines the baleful influence exerted on economic thought and public policy for decades by John Maynard Keynes. Gregg observes that “despite his iconoclastic reputation, Keynes was a quintessentially establishment man.” This was in contrast to free-market critics of Keynes such as Friedrich Hayek and Wilhelm Röpke who generally speaking “exerted influence primarily from the ‘outside': not least through their writings capturing the imagination of decidedly non-establishment politicians such as Britain’s Margaret Thatcher and West Germany’s Ludwig Erhard.” Perhaps not so surprisingly, many of Keynes’ most prominent devotees are also “insider” types:

The story of Keynes’s rise as the scholar shaping economic policy from “within” is more, however, than just the tale of one man’s meteoric career. It also heralded the surge of an army of activist-intellectuals into the ranks of governments before, during, and after World War II. The revolution in economics pioneered by Keynes effectively accompanied and rationalized an upheaval in the composition and activities of governments.

From this standpoint, it’s not hard to understand why New Dealers such as John Kenneth Galbraith were so giddy when they first read Keynes’s General Theory. Confident that Keynes and his followers had given them the conceptual tools to “run” the economy, scholars like Galbraith increasingly spent their careers shifting between tenured university posts, government advisory boards, international financial institutions, and political appointments — without, of course, spending any time whatsoever in the private sector.

In short, Keynes helped make possible the Jeffrey Sachs, Robert Reichs, Joseph Stiglitz’s, and Timothy Geithners of this world. Moreover, features of post-Keynesian economics — especially a penchant for econometrics and building abstract models that borders on physics-envy — fueled hopes that an expert-guided state could direct economic life without necessarily embracing socialism. A type of nexus consequently developed between postwar economists seeking influence (and jobs), and governments wanting studies that conferred scientific authority upon interventionist policies.

Read Samuel Gregg’s “The Madness of Lord Keynes” on the American Spectator.

A recent study by the Barna Group examines the generation gap within various Christian traditions in the United States. The Millennial Generation (roughly anyone currently 18-29 years old) has become increasingly dissatisfied with their Christian upbringing. According to the study,

… 84% of Christian 18- to 29-year-olds admit that they have no idea how the Bible applies to their field or professional interests. For example, young adults who are interested in creative or science-oriented careers often disconnect from their faith or from the church. On the creative side, this includes young musicians, artists, writers, designers, and actors. On the science-oriented side, young engineers, medical students, and science and math majors frequently struggle to see how the Bible relates to their life’s calling.

There is, it appears, an urgent need for Christian traditions to develop and employ a robust theology of vocation, especially with regards to arts and science related professions. Indeed, according to the article, “The Barna study showed that faith communities can become more effective in working with the next generation by linking vocation and faith.”

As a Millennial myself, I found the study especially fascinating. The approach when I was a teenager was that the bigger the sound system or video screen or the more “alternative” sounding the music, the more likely a church was to keep us around. Maybe I am not a good representative of my generation as a whole, but I remember finding this approach especially shallow and even a little insulting. I wanted a deeper faith, something that stands out from the world around me, not something nearly indistinguishable from it. Perhaps if more churches would take the time to show how the Gospel of Jesus Christ permeates all facets of life, especially our vocations, fewer of my peers would be leaving those churches behind.

The most recent issue of the Journal of Markets & Morality (14.1) contained two contributions in our Symposium section specifically on the subject of vocation. Anyone interested may read them here:

Gene Edward Veith, “Vocation: the Theology of the Christian Life”

Theology of Work Project, Inc., “Calling in the Theology of Work”

Blog author: kmarotte
Friday, December 16, 2011
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Today, Acton launched a new vehicle for mobile donations. Friends of the Institute can make tax-deductible contributions via text message. Text LIBERTY to 50555 to make a $5 donation to Acton. When prompted, reply with YES to confirm the donation, which will then be added to your phone bill.

A generous donor has agreed to match all text donations 5-to-1 through the end of the year, multiplying the value of your donation. Give today and turn $5 into $30!

Message and data rates may apply. Full terms here.

Acton President Rev. Robert Sirico turns $5 into $30! Text LIBERTY to 50555 to make a $5 donation to Acton.

 

Tertullian

Tertullian (c. 160 – c. 220 AD)

The following section from Tertullian’s Apology has been illuminating some of my thinking about Christian social engagement lately:

So we sojourn with you in the world, abjuring neither forum, nor shambles, nor bath, nor booth, nor workshop, nor inn, nor weekly market, nor any other places of commerce. We sail with you, and fight with you, and till the ground with you; and in like manner we unite with you in your traffickings—even in the various arts we make public property of our works for your benefit.

This passage, in which Tertullian describes the involvement of Christians in all the workings of Roman life, first occurred to me awhile back when there was the brief flurry of worry over undue Christian influence, particularly “Dominionism,” on politics. The essay I wrote in response to that phenomenon has now appeared in The City, which you can check out here, “Christians, Citizens, and Civilization: The Common Good.” In this piece I make the claim that “the commitment to Jesus Christ as another prince, the ‘prince of Peace,’ makes us better, not worse, citizens.”

I had been thinking that contra the New Atheism and virulent secularism of much discourse in the public square, including that of the recently passed Christopher Hitchens, we need a kind of Tertullian for the twenty-first century. In the meantime this piece appeared from Al Mohler, which I thought articulated quite well just how evangelicals are (and are not) “dangerous” to the secular establishment: “We’re dangerous only to those who want more secular voices to have a virtual monopoly in public life.”

And as Mohler also notes, “over recent decades, evangelical Christians have learned that the gospel has implications for every dimension of life, including our political responsibility.” But in addition to political responsibility, the gospel also has implications, as I write, for “those Christians who occupy the pews every Sunday morning and pursue various occupations throughout the week. The range of cultural engagement by Christians is therefore coextensive with the panoply of morally legitimate activities in the world.” This latter piece, “How Christians Ought to ‘Occupy’ Wall Street (and All Streets),” is the other recent item in which I use the quote from Tertullian.

If you haven’t read the Apology before (or haven’t done so lately), take another look and see what you think about the prospects for a similar defense of the Christian faith and life in the contemporary world.

Occupy All StreetsOver at the Patheos Evangelical Portal, I write about “How Christians Ought to ‘Occupy’ Wall Street (and All Streets).” My argument is that the occupiers that ought to be foremost in the minds of religious leaders are those who “occupy” their pews on Sunday mornings and jobs in the world throughout the week. Indeed, “Christians therefore must occupy the world in their occupations.” That’s where the renewing and reforming presence of the church in its organic expression finds its greatest work.

As I note, the “Occupy” movement has created some distress for religious leaders. The perennial question reverberates: What would Jesus do? For some, it’s clear: there must be an institutional embrace of the Occupy movement by seminaries and churches.

But the implications of my call to recognize that Christians already occupy “all streets” is that Christians must learn to, as Jonathan Chaplin puts it, embrace institutions, and not just those that are “sacred,” like churches and seminaries. As Chaplin writes, “Christians need to reckon with the fact that all institutions are in some sense faith-based, and that Christians should be unapologetic both about working to shape existing institutions from within according to their own vision of hope or, where necessary, founding their own institutions.”

So, with respect to Wall Street in particular, for instance, a recent letter published in the Times of London notes that Christians already “occupy” Wall Street in their occupations: “Many Christians today work within mainstream business, attempting to be ‘salt and light’. Others run organisations…that are committed to using business and finance to bring social benefits, raise living standards and create jobs.”

Contrast all this with Makoto Fujimura’s advice to the Occupy movement to resist positive embrace of institutions: “The moment we institutionalize, the local movement dies a slow death as it consumes the very resources we are trying to release.” On this view institutions and systems are by definition exploitative and dehumanizing. To this type of view Chaplin responds that while there is much that is true in such a diagnosis, the proper response is not to flee institutions but to work to reform them, and where necessary recreate them. Chaplin speaks of

institutions that, even in limited ways, can embody the central norm of love, a norm which in turn needs to be fleshed out in more specific directives about justice, solidarity, peace, stewardship, and so on. Our challenge is to work toward developing institutions that can serve as conduits of this kind of love, with all its differentiated concrete applications on the ground. Such institutions we should indeed learn to love.

The payoff here is that one of the ways the church fails its members (and its business people in the case of Wall Street), is that it does not usually provide them with the worldview, the tools, and the sense of responsibility for living out their Christian faith in a responsible way in their occupations. Thus, says John C. Knapp, “Many Christians struggling to make their faith relevant to their daily work find the church oddly indifferent to their lives on the job.”

Part of the answer is to get these institutions (churches, seminaries, businesses) and their representatives to start talking to one another again. And that’s something that the Acton Institute has been doing for more than two decades. One of the best starting points for this conversation that I know of is Lester DeKoster’s little book, Work: The Meaning of Your Life—A Christian Perspective.

Blog author: rnothstine
Wednesday, December 14, 2011
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In terms of the blogosphere, I’m sure this polling data from Gallup published two days ago showing that fear of big government dwarfs fear of big business and big labor is ancient history. I only want to offer a few observations.

At one point in our history, I think a lot of Americans or even a majority of Americans looked at the federal government as a vehicle for fairness, progress, and justice. Certainly, the federal government has done quite a few things well over the years. However, as politics has become even more partisan and divisive, and more and more power has been centralized into the Washington beltway, these beliefs have eroded dramatically. In my August commentary “The Folly of More Centralized Power” I noted,

Washington’s inability to balance budgets and restore fiscal responsibility, a problem magnified by a crippled economy, has also bankrupted the public trust. Citizens who take summer vacations to the nation’s capital can easily connect the dots as they observe a Washington Beltway that is booming with jobs and opportunity as tax dollars siphon into the region, even while their own communities are ravaged by job loss and businesses struggle under regulatory burdens.

I also said in the piece,

People feel disconnected from their federal government not only because they are separated geographically, culturally, ideologically, but also because they believe that their access to the political process has been severed. They doubt whether their representatives actually have the best interests of the nation in mind.

Considering all the continued deficit spending, continued government growth, you might expect that some real progress would have been made to start digging us out of this massive hole. But more and more Americans are realizing that the federal government does not have their best interest at heart. It will be interesting to see how the disconnect between the governing and federal bureaucratic class continues to morph as even more and more money and capital is needed to preserve and protect the power structure. A lot of class warfare cards of course will be played and both political parties will do what is best to preserve their power.

When I think about liberals and the war on poverty and mobilizing the government for good, two famous photographs come to mind. I remember when LBJ visited Eastern Kentucky to declare a war on poverty and of course the famous photo of Robert F. Kennedy visiting the impoverished Mississippi Delta. But even liberals or the political left must look out on the political landscape, when well meaning and historic poverty programs were implemented generations ago by well meaning leaders who captured the nation’s conscious, and they must wonder what went wrong? With the political climate the way it is now, even the good intentions are gone and the rhetoric is so shortsighted and rings hollow.

This week’s Acton Commentary comes from Thomas S. Kidd, professor of history at Baylor University. Professor Kidd is the author of a new biography of Patrick Henry, and he sees in Henry’s anti-federalism a certain foresight that Madison and Jefferson lacked. The unlimited power to tax was what drove us from British rule in the first place, and Henry saw no reason to give that power back to a national government. In 220 years, the national government has turned that into an unlimited thirst for borrowing.

The utter travesty that was the congressional “Super Committee” has led us to even lower depths of skepticism about the government’s ability to control debt and spending. In this new era of malaise, lessons from the time of the Constitution’s adoption — and fears from those days about what the newly-framed government might become — seem more relevant than ever. Some key Patriot leaders predicted in the 1780s that a government with unlimited power to tax and spend would become an ever-growing monster.

Since the ratification of the Constitution in 1789, Americans have had a hard time taking the Antifederalists (opponents of the Constitution) seriously. How could anyone, we may wonder, not appreciate the wisdom of the Constitution? But remember that some of America’s greatest Founders, most notably Virginia’s Patrick Henry, opposed the Constitution. Having fought against the centralized, intrusive British government in 1776, the Antifederalists balked at placing such a government over themselves again. Many of them, including Henry, expressed fundamental doubts — concerns rooted in Christian principles — about politicians’ capacity to handle this kind of power.

Henry’s Antifederalism was rooted in a shrewder understanding of human nature than men like Jefferson possessed.

At the Virginia ratifying convention in 1788, Henry proclaimed that American liberty was at stake in the decision over the Constitution. He asked how Americans would bear the “enormous and extravagant expenses, which will certainly attend the support of this great consolidated government”? America would find “no reduction of the public burdens by this new system.” Taxes would just fuel the “uncontrolled demands” of bureaucrats not contemplated by the Constitution.

To Henry, these fears were rooted in his assumption that in the long term, officials would inevitably misappropriate and abuse the power granted to them. “Did we not know of the fallibility of human nature,” he told the Richmond delegates, “we might rely on the present structure of this government, … but the depraved nature of man is well known.” Henry’s Christian worldview made him acutely sensitive to the risks of placing expansive power in human hands. Hoping that only ethical, public-spirited people would serve in national office was foolish, he believed. Henry would “never depend on so slender a protection as the possibility of being represented by virtuous men.”

Read the full article and Kidd’s conclusions here.

Blog author: jballor
Wednesday, December 14, 2011
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Unemployment among elves is at an all time high this Christmas.

In the book God’s Yardstick, Lester DeKoster and Gerard Berghoef write of the blessings of the order of work instituted by God. “We take for granted all the possibilities which work alone provides,” they write, “And we become aware of how work sustains the order which makes life possible when that order is rent by lightning flashes of riot or war, and the necessities which work normally provides become difficult to come by.”

In the midst of the prolonged economic downturn in America, we’ve seen what happens when work is “difficult to come by” for many people. It is good to remember this Christmas that one of the greatest gifts that any of us can receive from another person is the opportunity to work and serve others and be compensated for that work.

This is why it is so important to recognize the moral imperative operating behind the innovation, entrepreneurship, and the creation of jobs. You can see this imperative in the plaintive cry of many children this Christmas, “Santa, can you get my mom a job?”

Maybe Santa can’t deliver a job this Christmas season, but let’s hope there are some “Santa” entrepreneurs and businesses out there willing to take risks and deliver products and services that will open up employment opportunities for the jobless among us.

For more on the creation of such opportunities to get paid to serve others, check out the Job Creators Alliance, whose mission is to “bring together job creators from large and small companies to educate Americans on the vital role of free enterprise and entrepreneurship in creating jobs, spurring innovation and ensuring America’s economic success.”

Acton’s director of research Samuel Gregg is up at Public Discourse, with a piece titled “Monetary Possibilities for a Post-Euro Europe.” With his usual mix of sophisticated economic analysis and reference to deep principles, Gregg considers European countries’ options should the eurozone fail. If that happens, he says, “European governments will have a once-in-a-lifetime opportunity to rethink the type of monetary order they wish to embrace.”

One such scenario is a three-way monetary division within the EU that reflects the differing political commitments and economic priorities of different nations. Germany and the more fiscally responsible eurozone members such as Austria, Finland, and the Netherlands could, for instance, decide to reconcile themselves to being the only ones with the necessary fiscal and monetary discipline to maintain a common currency.

Alongside this bloc would be two other groups. One would consist of those EU countries such as Britain, Sweden, and Denmark that have maintained their own monetary systems because of reservations about the euro’s implications for national sovereignty. Another group would include EU nations such as Greece, Portugal, and Italy that are simply unable or unwilling to embrace the disciplined monetary and fiscal policies required by a common currency; these nations would consequently find themselves outside the eurozone and reverting to their national currencies.

A more radical monetary opportunity for a post-euro EU would be currency competition. This was once proposed by Britain’s Margaret Thatcher as an alternative to the present common currency. Contemporary proposals for currency competition, such as that advanced by Philip Booth and Alberto Mingardi, involve the monetary authorities of different countries authorizing the use of currencies alongside the euro in domestic settings other than their own. Consumer choice rather than state sovereignty would thus ultimately determine which currencies were used.

Yet another option would be the embrace of what might be called a European gold standard. In the 1950s and 1960s, the German economist Wilhelm Röpke argued that European monetary integration could occur via a nucleus of countries agreeing to adhere to a gold standard, much as had happened somewhat spontaneously in the nineteenth century through a process of unilateral decision-making by individual countries. Once this had occurred, adherents of such a gold standard would have to insist upon all members maintaining monetary discipline as well as freedom and stability in foreign exchange markets.

The stability of the European currency would be assured not by EU bureaucrats, but by the gold standard itself, and by allowance for the expulsion of countries that abuse their big-boy privileges.

Britain just rejected an EU treaty because the Conservative Party decided Brussels was trying to capitalize on the Mediterranean crisis by grabbing more power. The three proposed currency models, Gregg argues, would maintain countries’ freedom by yanking monetary power from central bureaucrats who exercise political power. He reflects further on the composition and history of the eurozone, on the countries’ political and economic freedom, and on what Röpke would have to say in the rest of the piece.

Blog author: jballor
Monday, December 12, 2011
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“Wisdom begins in wonder.” This is a popular paraphrase of Socrates from Plato’s Theatetus, which focuses on the relationship between philosophy and knowledge. Dr. Mel Flikkema, provost at Kuyper College, reminded us of this justly famous quotation as he introduced the launch event for Wisdom & Wonder: Common Grace in Science & Art by Abraham Kuyper this past Saturday morning.

Vincent Bacote describes "Another Amazing Grace."

This was a splendidly appropriate introduction to the morning’s event, as the talk by Dr. Vincent Bacote, “Another Amazing Grace,” focused on the relevance of the doctrine of common grace for today’s church and Christian social engagement. Part of what common grace does, said Bacote, is allow us to explain why good things remain in the world after the Fall into sin. The world is not as bad as it could be, and it is because of this common, preserving grace that God prevents everything from falling into complete and utter chaos.

In Wisdom & Wonder Kuyper discusses the insights of the ancient Greeks as a bit of evidence for the existence of common grace. This is especially relevant for the pursuit of truth in philosophy and science. As Kuyper writes, “Anyone who ignores common grace can come to no other conclusion than that all science done outside the arena of the holy lives off appearance and delusion, and necessarily results in misleading anyone listening to its voice. Yet the outcome shows that this is not the case.”
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