richards-book1The belief that the essence of capitalism is greed is perhaps the biggest myth Jay W. Richards tackles in his new book, Money, Greed, and God: Why Capitalism is the Solution and not the Problem. One reason for confronting this challenge is that many free market advocates subscribe to the thought that capitalism produces greed, and for them that’s not necessarily a negative. But for those with a faith perspective, greed and covetousness are of course serious moral flaws.

It’s also the kind of myth that less articulate writers would rather not challenge, especially in this troubling economic climate. Richards does however have a skill for tightly honed logical arguments, and he not only is able to defend free markets but tear lethal holes into many of the economic ramblings of the religious left. He even takes on holy of holies like fair trade and Third World debt relief. Richards argues that the free market is moral, something that may come as a surprise to many people of faith. This book provides a crushing blow to those involved in the ministry of class warfare or those who wish to usher in the Kingdom of God through “nanny state” policies.

The book divides into eight chapters, with each chapter discussing a common held economic myth like the “piety myth” or “nirvana myth.” Richards says the piety myth pertains to “focusing on our good intentions rather than on the unintended consequences of our actions.” The nirvana myth characterizes the act of “contrasting capitalism with an unrealizable ideal rather than with its live alternatives.” Richards himself states, “The question isn’t whether capitalism measures up to the kingdom of God. The question is whether there’s a better alternative in this life.”

The influence of libertarian economist Henry Hazlitt and Wealth and Poverty author George Gilder are evident through out this book. But the overarching strength of Richards work is how he places the free market message into the context of Christian discussions and debate. Unfortunately before this response, many of the economic arguments by the Christian left weren’t properly countered in popular mediums. Furthermore, the wanton excess of prosperity gospel advocates only fueled or provided ammunition for the religious left’s rebuke of the free market. (more…)

Much of the blame for the current financial crisis has been aimed at Wall Street and the bankers who, the story goes, created toxic debt instruments and then lined their own pockets with the proceeds. In “Verdict on the Crash: Causes and Policy Implications,” a new analysis from economists and scholars — including Acton Institute Research Director Samuel Gregg — the London-based Institute of Economic Affairs comes to the opposite conclusion: It was governments and regulators who erred. Moreover, the IEA report says, the people most often berated for their part in the crisis – the hedge fund managers and those who run tax havens – are among the least guilty. The report also spells out the need for a “radical overhaul” of the financial system to guard against a repeat of the errors that led to the crisis.

The authors of “Verdict on the Crash” assert that “a revolution in financial regulation is needed. The proposals of the G20 governments and the EU are wholly misconceived. Specific and targeted laws and regulations could restore market discipline.”

Read a letter to London’s Daily Telegraph from the economists and scholars who wrote the “Verdict on the Crash” report for IEA. Read highlights and download the full report from the IEA blog. Acton’s Samuel Gregg authored the chapter titled, “Moral Failure: Borrowing, Lending and the Financial Crisis.”

Once again, sociologists and journalists are predicting the demise of Christianity as a major influence in the public life of America. Hunter Baker pokes holes in that theory, and observes that these persistent predictions are coming from “those anxious for it to occur.”

Read the commentary at the Acton Website and comment on it here.

Economists and business schools have, in recent decades, rightfully praised entrepreneurs for their ability to create wealth and transform entire industries. But there’s more to it than that, says Sam Gregg in his commentary. “If taxes are high, property-rights unprotected, and corruption the norm, then the environment embodies major deterrents to wealth-generating entrepreneurship,” he writes. “Why would people risk being entrepreneurial when they can’t assume their ideas won’t be stolen or their profits arbitrarily confiscated?”

Read the commentary at the Acton Website and comment on it here.

[Editor's Note: We welcome Ken Larson, a businessman and writer in southern California, to the PowerBlog. A graduate of California State University at Northridge with a major in English, his eclectic career includes editing the first reloading manual for Sierra Bullets and authoring a novel about a family's school choice decisions titled ReEnchantment, which is available on his Web site. For 10 years Ken was the only Protestant on The Consultative School Board for the Roman Catholic Diocese of Orange near Los Angeles and chaired the inaugural Orange County Business Ethics Conference in support of needy parish schools in the diocese. He enjoys sailing and singing in the choir at the Anglo-Catholic church at which he and his wife worship.]

With Memorial Day and July 4th fast approaching I found myself thinking over the weekend about the recent past.

Several years ago we moved to a tony neighborhood in Orange County, California. At the time it was easily eligible for the term “Reagan Country” but in the last election Obama out polled McCain in our Congressional District. A neighbor had a Hillary fundraiser at her home a few years ago. There’s a lot of soccer on Sunday but our family always opted for church.

Around 1996 I was asked to chair the neighborhood’s July 4th parade. It was one of those tasks that occur in small communities where many folks pitch in to help from time to time and I was flattered at the invitation. But as is the case with lots of things we have the opportunity to participate in, I noticed this parade and the accompanying festivities — a barbecue and day at the beach with food and drinks available — were missing what I knew they needed. They were missing an invocation.

I ran the idea of having a local pastor from the church at the edge of the community where our family worshiped deliver that invocation and the denizen who had tabbed me as chairmen thought it a splendid contribution. Plans went forward with the same old “same old stuff” and I extended an invitation to the cleric. He was available. (more…)

In today’s Detroit News, Acton Research Director Samuel Gregg talks about the sort of “moral, legal and political environment” that must exist if entrepreneurs are to flourish. He applies these precepts to the very serious economic problems in Michigan, where Acton is located:

… in the midst of this enthusiasm about entrepreneurship, we risk forgetting that entrepreneurship’s capacity to create wealth is heavily determined by the environments in which we live. In many business schools, it’s possible to study entrepreneurship without any reference being made to the role played by factors such as rule of law, property rights and low taxes in stimulating wealth-creating entrepreneurship.

Entrepreneurs gravitate to places where conditions for starting a business are optimal and the infrastructure — financial, legal, and technical — supports new businesses. Here, Michigan has a double-barreled problem: the out-migration of Michigan job seekers — much of it compelled by the steep decline of the auto sector in recent years — and the college graduate “brain drain” from state universities. How many of these people saying goodbye to Michigan are taking their entrepreneurial dreams, and maybe the next Big Thing in the economy, with them?

Read “Entrepreneurs Require More Room to Survive.” An extended version of this essay is slated to run in tomorrow’s Acton News & Commentary. Sign up online for this free email newsletter here.

Update: The Michael Medved Show streams here.

Former Acton research fellow Jay W. Richards will be on the Michael Medved Show today talking about his new book, Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem. He will be on during the show’s third hour. If your station carries it live, that’s 2-3 p.m. Pacific, 4-5 p.m. Central, and 5-6 p.m. Eastern.

Go here to see if a station in your area carries the show.

Jay is also scheduled to appear on The Dennis Prager Show Wednesday morning.

I had the chance to read an early copy of the book. Richards distills the core arguments for a free and virtuous society superbly. Money, Greed, and God is highly readable and yet more incisive than many academic books on the subject. Disciples of the nanny state and a naked public square beware.

What’s wrong with populism? Nothing, necessarily. But, to hazard a tautology, populism is only as good as the people. I think this territory was covered pretty well by Alexis de Tocqueville, whose view was in turn covered pretty well by Sam Gregg in his commentary of a couple weeks ago:

“The American Republic,” Tocqueville wrote, “will endure until the day Congress discovers that it can bribe the public with the public’s money.”

As Sam notes, Tocqueville cited the importance of religion as a bulwark against the drift to despotism. I don’t think it’s any accident that there is a public policy lean toward socialism at the same time as a perceptible weakening of religious adherence. The relationship is complicated (plenty of liberty-loving agnostics; plenty of Christian socialists), but at the level of generalization, religion (Christianity in particular) fosters centers of authority and action that are independent of the state and resistant to tyranny. It encourages virtue and concern for the common good. In short, it promotes those traits that might drive populist sentiment and action in helpful rather than harmful directions.

Blog author: rnothstine
Wednesday, May 6, 2009
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joker It is appropriate that Donovan Campbell offers an inscription about love from 1 Corinthians 13:13 at the beginning of his book, Joker One: A Marine Platoon’s Story of Courage, Leadership, and Brotherhood. That’s because he has written what is essentially a love story. While there are of course many soldier accounts from Afghanistan and Iraq, some that even tell more gripping stories or offer more humor, there may not be one that is more reflective on what it means to be a leader, and what it means to love the men you serve and lead.

This book is receiving considerable press attention and Campbell’s ability to convey love the way he does has to be a big reason for the popularity of the book. Campbell movingly says about his own Marines in the opening chapter, “And I hope and pray that whoever reads this story will know my men as I do, and that knowing them, they too might come to love them.”

Campbell’s account looks at the seven and a half months in which he serves as a platoon leader in some of the fiercest fighting of the Iraq war, which occurred in Ramadi in 2004. Before the Marine Corps, Campbell was an undergraduate at Princeton who spent a summer completing the Marine Corps Officer Candidate School (OCS) because he thought it would look good on his resume. Campbell says he hated the entire program, and didn’t think twice about joining since he hadn’t taken any money from the Corps, and therefore didn’t owe them anything. He would ultimately change his mind however as graduation approached.

If love and leadership are recurrent themes, it is often discussed from a faith perspective, and Campbell is somebody who has thought seriously about his own faith and what that means for him and his men. Campbell talks about how before each combat mission he huddles up with his platoon for prayer, which often included reciting the twenty-third Psalm. “I had a responsibility to my men to provide for all their needs, and those included their spiritual as well as their material ones,” says Campbell. He also discusses some of his early thoughts on the prayer ritual before each mission:

Deep in my heart, I believed that prayer would work without fail, that if together Joker One prayed long and hard enough, God would spare us all from Mac’s fate [another Marine seriously wounded by a road side bomb]. What I know now, and which didn’t occur to me then, was that by praying as I prayed, and hoping what I hoped, and believing what I believed, I was effectively reducing God to a result-dispensing genie who, if just fed the proper incantations, would give the sincere petitioner (me) the exact outcome desired.

This book is masterful at tracing the growth and experience of Campbell’s theological progression just as it does concerning his leadership skills, decision making ability, and the moral questions he asks himself. Where prayer before was focused more on personal safety, He says it changed even more as the chaos and random violence surged. “To those who sought it, the prayer also provided some comfort that God was in control, that their lives had worth and meaning stemming from an absolute source,” says Campbell.

After one of his own Marines, Lance Corporal Todd Bolding was killed in action, Campbell understandably lost much of his enthusiasm to continue the mission. He had promised himself that he would bring all of his platoon home. He says:

For whatever reason, [Private First Class Gabriel] Henderson’s tender heart kept a close watch on me, and one day, roughly two weeks after Bolding’s death, he walked up to me and said out of the blue: ‘Hey sir, you know that none of the platoon blames you for what happened to Bolding. It’s okay, sir.’ I didn’t know what to say to that. Henderson broke into a smile. ‘Bolding’s in heaven now, sir, and I know that he’s smiling down at us right now, just like he always smiled at us when he was here. He’s okay, sir. Don’t worry, sir. He’s okay. And someday you will get to see him again, sir.’ I had to turn away to keep from crying. I think that Henderson’s profound, simple faith was what finally allowed me to pick myself back up, and, in some very real sense, regain my own faith.

This book deals with a lot of raw emotion, the frustrations with all the problems in Iraq, and tragedy. At the closing of Campbell’s account, he does a beautiful job of articulating the greater-love principle from John’s Gospel (15:13).

In seminary I took a class on leadership and I know Campbell’s book teaches more lessons about leadership than classes or many other books could. His account is a strong reminder that some of America’s best, regardless of policy debates or politics, are the ones silently shouldering a heavy burden in America’s current conflicts. While much of the country goes to the mall, shops, and attends sporting events, there are those who suffer and have to make quick life and death decisions where the consequences of combat often result in bad or worse.

This is definitely one of the best books of 2009. The narrative is somewhat similar to Nathaniel Fick’s book from 2005, One Bullet Away: The Making of a Marine Officer, in that both authors do a wonderful job at baring their heart and telling the stories of young men who do courageous acts solely for others and not themselves. Interestingly enough, both authors were officers in the Marines who came out of Ivy League schools. All of the wonderful sacrifices Campbell’s platoon made for a largely unappreciative civilian Ramadi population in 2004, and the havoc they wreaked on their foe, is a reminder of the truth that rings out from the great unofficial U.S. Marine motto, “No greater friend, no worse enemy.”

A new study from the Kauffman Foundation shows how Americans are increasingly turning to entrepreneurship to pull themselves out of an economic crisis. “When individuals are truly free to exercise their talents and trade the production of their labor, without oppression from tyrants or the entanglements of unnecessary government ‘oversight,’ the net effect is mutually beneficial for society as a whole,” writes Anthony Bradley in this week’s Acton Commentary.

Read the commentary at the Acton website and share your response in the comment thread below.