icon_22372Over at NRO, Thomas Sowell takes on what he calls the “lie” of “trickle-down economics.” Thus, writes Sowell, “the ‘trickle-down’ lie is 100 percent lie.” Sowell cites Bill de Blasio and Barack Obama as figures perpetuating the “lie,” along with writers in “the New York Times, in the Washington Post, and by professors at prestigious American universities — and even as far away as India.”

But we should also note that “trickle-down theories” get a mention in Evangelii Gaudium, too: “some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world.”

In the midst of his discussion, Sowell asks the following penetrating questions:

Why would anyone advocate that we “give” something to A in hopes that it would trickle down to B? Why in the world would any sane person not give it to B and cut out the middleman?

Whether or not there is such a thing as “trickle-down economics” in the discussions about the market economy, isn’t there something akin to what Sowell asks about at play in usual redistributive welfare programs? Don’t we “give” something to governmental bureaucracies and agencies in the hopes that they will in turn redistribute it (hopefully in more than a trickle) to the poor?

And as for the “trickle” part of trickle-down welfare economics, Juan de Mariana long ago observed that “money, transferred through many ministers, is like a liquid. It always leaves a residue in the containers.” So why not give directly to the poor and cut out the middleman, as Sowell wonders?

That’s precisely the discussion that’s been going on over at the Bleeding Heart Libertarians blog, among other places, about direct cash transfers to the poor instead of bureaucratic welfare programs. Head on over to the BHL blog to check it out.

letitia jamesThe saga of “income inequality” stretches on. The young people of the Occupy Wall Street movement now have a website, and President Obama has proclaimed it the “defining issue of our time.” But what IS it exactly? Does it mean that a teacher, a brain surgeon and a garbage collector should all earn the same wage? Does it mean the wealthy entrepreneur should simply give away her money, rather than investing it or leaving it to her heirs?

American Enterprise Institute fellow Jonah Goldberg believes if we’re going to keep talking about income inequality, we’d better figure out what it is. In a USA Today piece, Goldberg says liberals and conservatives view the idea of “income inequality” in very different ways: (more…)

Blog author: jballor
Tuesday, January 7, 2014

You may have heard that Ayn Rand really disliked C.S. Lewis. But do you know what happened when Saul Bellow met Whittaker Chambers?

Wolfgang Musculus, usury, oathsChristian’s Library Press has released a new translation of Wolfgang Musculus’ commentary on Psalm 15, which includes two related appendices on the topics of oaths and usury. Released at the end of 2013, On Righteousness, Oaths, and Usury comes on the 450th anniversary of Musculus’ passing. The book is part of CLP’s growing series, Sources in Early Modern Economics, Ethics, and Law.

Musculus (1497–1563) was a second-generation reformer in the cities of Strasbourg, Augsburg, and Bern, and produced a variety of works, including an influential collection of theological topics, the Loci communes, or Common Places.

The contents of this new translation come from his commentary on the Psalms, his largest exegetical work and one of his most popular. Portions of the commentary were originally published in German, Dutch, French, and English throughout the sixteenth century. Although Musculus has been somewhat overlooked among the likes of Luther and Calvin, particularly this side of the Atlantic, his works had a significant impact on the Reformation and post-Reformation eras.


Blog author: jcarter
Tuesday, January 7, 2014

Lord Acton and the Importance of Economic Education
R.J. Moeller, The American Spectator

As a kid, I always hated even just the thought of summer school. But during my grad school years, Acton U became a refreshing oasis I looked forward to every year.

In Malaysia, Battle Over Christian Use of “Allah” Intensifies
Howard Friedman, Religion Clause

Officials from the Selangor state Islamic Religious Department, aided by police, yesterday raided the Bible Society of Malaysia and seized 321 copies of the Bible that use the term “Allah”.

Are Markets Just?
R. Mark Isaac, Institute for Faith, Work, and Economics

To the economist, there are numerous well-known advantages to a system of well-defined and enforceable property rights.

Another Problem Obamacare Won’t Solve: Health Costs
Megan McArdle, Bloomberg

People who got access to Medicaid used doctors more than people who didn’t. But they also used the ER more

elementary-school-student-and-teacher-look-at-computerWhat is the key to improving education in America? Stuart Buck says that Barker Bausell’s book, Too Simple to Fail: A Case for Educational Change, provides the answer:

His main thesis: that the only thing that improves education is spending more time on instruction at a given child’s level. In his words:

All school learning is explained in terms of the amount of relevant instructional time provided to a student.

That’s it: more time + suitability for a child’s level.

This may seem too simplistic at first glance, but Bausell marshals evidence that his theory explains, well, a lot. Possibly even the achievement gap. Studies of home behavior have shown that middle-class families spend much more time talking and reading to their children at a high level. This is the most elegant explanation for why those children do better in school — they have had much more time devoted to their learning.

Read more . . .

KOPPITZ 0010Reading this profile of UPS’s “Mr. Peak,” Scott Abell, is an enlightening exercise, particularly after the close of this holiday season. Mr. Peak is the guy in charge of making sure that the thing you ordered the Friday before Christmas gets there by Christmas Eve. Or as Devin Leonard puts it, “It’s become so easy for people to shop via computers and smartphones that they frequently delay their purchases until the last minute. Mr. Peak’s job, in effect, is to fulfill the Internet’s promise of instant gratification.”

In my Christmas commentary, I wondered about what a civilization organized around the principle of instant gratification might look like. It wasn’t a pretty picture: “A society that sows the gratification of its material desires everywhere and always, without limitations of rest or Sabbath, will reap a harvest of barbaric sensualism.”

If the Internet promises instant gratification, is the world wide web a force for barbarism rather than civilization? No, but perhaps only if we are willing and able to adjust our expectations. The civilized thing to do might be to order your Christmas presents with more than a few hours to spare. It would certainly make life a bit easier on Mr. Peak. He had a pretty rough season this year.

Mr. Peak “tries to get his family to avoid Internet shopping altogether after Thanksgiving. ‘I’m not going to tell them not to shop,’ he says. ‘But I tell them that they should do it early. Early’s better.'”