In defense of private property from Rerum Novarum:
"The fact that God has given the earth for the use and enjoyment of the whole human race can in no way be a bar to the owning of private property. For God has granted the earth to mankind in general, not in the sense that all without distinction can deal with it as they like, but rather that no part of it was assigned to any one in particular, and that the limits of private possession have been left to be fixed by man's own industry, and by the laws of individual races."
"That right to property, therefore, which has been proved to belong naturally to individual persons, must in like wise belong to a man in his capacity of head of a family; nay, that right is all the stronger in proportion as the human person receives a wider extension in the family group. It is a most sacred law of nature that a father should provide food and all necessaries for those whom he has begotten; and, similarly, it is natural that he should wish that his children, who carry on, so to speak, and continue his personality, should be by him provided with all that is needful to enable them to keep themselves decently from want and misery amid the uncertainties of this mortal life. Now, in no other way can a father effect this except by the ownership of productive property, which he can transmit to his children by inheritance. A family, no less than a State, is, as We have said, a true society, governed by an authority peculiar to itself, that is to say, by the authority of the father. Provided, therefore, the limits which are prescribed by the very purposes for which it exists be not transgressed, the family has at least equal rights with the State in the choice and pursuit of the things needful to its preservation and its just liberty."
--Pope Leo XIII, 1891
A Ph.D. student's perspective on Catholic Social Teaching and economics.
Thursday, November 11, 2010
Veterans Day
Today is Veterans Day, a day in which we honor and express our sincere gratitude for those who fought and those who continue to fight for our freedom and the freedom of others. We especially remember those who died in the field of battle.
The courage our Veterans displayed in battle serves as a great example for us who do not engage in combat, but who fight for the rights and freedom of those who have none in our own society. The unborn and elderly, the homeless and jobless members of our society who need us to fight for their right to life, liberty, and justice that for some reason or another are not being given to them. We must take the example of our Veterans and have the courage to vote for those who protect these rights, convert those who take them away, and always and everywhere promote their freedom through our example of faith, hope, and love. If we do not take care of the least of our own no one will be influenced to do the same.
Our battle should be one of pleading and defending, loving and serving, not attacking and dividing. Just as the defenseless need our love and protection, so too, do those who attack them need it.
We should do as Jesus taught us in Luke 6:27-36 and Matthew 25:31-46.
It is a great travesty to take away the rights of our own, when so many great men and women of courage fought and continue fighting for that very freedom we take away. Great abundance of material goods and comfort of living should not be our primary goal. Loving and serving each other should alawys come first.
Thank you to all the men and women who fought and fight for us in battle and especially those who died. May God bless you for your sacrifice and service!
The courage our Veterans displayed in battle serves as a great example for us who do not engage in combat, but who fight for the rights and freedom of those who have none in our own society. The unborn and elderly, the homeless and jobless members of our society who need us to fight for their right to life, liberty, and justice that for some reason or another are not being given to them. We must take the example of our Veterans and have the courage to vote for those who protect these rights, convert those who take them away, and always and everywhere promote their freedom through our example of faith, hope, and love. If we do not take care of the least of our own no one will be influenced to do the same.
Our battle should be one of pleading and defending, loving and serving, not attacking and dividing. Just as the defenseless need our love and protection, so too, do those who attack them need it.
We should do as Jesus taught us in Luke 6:27-36 and Matthew 25:31-46.
It is a great travesty to take away the rights of our own, when so many great men and women of courage fought and continue fighting for that very freedom we take away. Great abundance of material goods and comfort of living should not be our primary goal. Loving and serving each other should alawys come first.
Thank you to all the men and women who fought and fight for us in battle and especially those who died. May God bless you for your sacrifice and service!
Wednesday, November 10, 2010
Balancing the Budget
It looks as though our move toward austerity (balanced federal budget) will be in the form of massive spending cuts and tax cuts. The early proposal from the bipartisan committee comissioned to balance the deficit by 2015 calls for cuts in Social Security, income taxes, and corporate taxes. The tax cuts would also greatly reduce the progression of the tax code (from 8% to 23% down from 10% to 38% on income taxes) furthering our growing income inequality.
The Bowles-Simpson plan
It's not likely this early proposal will pass, but some components of it might. The reduced progression of income taxes is worrysome as income inequality is a growing problem magnified by the current recession.
I don't think balancing the budget should be a priority at the moment. Government spending and taxation don't work like many think they do (see here and here for more), and this misperception could lead to disastrous results. I think our best bet is a payroll-tax holiday. This is the flat 15% (7.5% employee, 7.5% employer obligation) tax on all payrolls that goes toward Social Security and Medicare. Government need not get involved in messy and inefficient spending, tax cuts would boost aggregate demand, and when we start to see the reapplication of our unused capital and labor, then we can worry about balancing the budget and cutting wasteful spending.
UPDATE: Full Proposal can be found here.
The Bowles-Simpson plan
It's not likely this early proposal will pass, but some components of it might. The reduced progression of income taxes is worrysome as income inequality is a growing problem magnified by the current recession.
I don't think balancing the budget should be a priority at the moment. Government spending and taxation don't work like many think they do (see here and here for more), and this misperception could lead to disastrous results. I think our best bet is a payroll-tax holiday. This is the flat 15% (7.5% employee, 7.5% employer obligation) tax on all payrolls that goes toward Social Security and Medicare. Government need not get involved in messy and inefficient spending, tax cuts would boost aggregate demand, and when we start to see the reapplication of our unused capital and labor, then we can worry about balancing the budget and cutting wasteful spending.
UPDATE: Full Proposal can be found here.
Today's Excerpt from CST
From "Caritas in Veritate":
Charity is at the heart of the Church's social doctrine. Every responsibility and every commitment spelt out by that doctrine is derived from charity which, according to the teaching of Jesus, is the synthesis of the entire Law (cf. Mt 22:36- 40). It gives real substance to the personal relationship with God and with neighbour; it is the principle not only of micro-relationships (with friends, with family members or within small groups) but also of macro-relationships (social, economic and political ones). For the Church, instructed by the Gospel, charity is everything because, as Saint John teaches (cf. 1 Jn 4:8, 16) and as I recalled in my first Encyclical Letter, “God is love” (Deus Caritas Est): everything has its origin in God's love, everything is shaped by it, everything is directed towards it. Love is God's greatest gift to humanity, it is his promise and our hope.
Charity is at the heart of the Church's social doctrine. Every responsibility and every commitment spelt out by that doctrine is derived from charity which, according to the teaching of Jesus, is the synthesis of the entire Law (cf. Mt 22:36- 40). It gives real substance to the personal relationship with God and with neighbour; it is the principle not only of micro-relationships (with friends, with family members or within small groups) but also of macro-relationships (social, economic and political ones). For the Church, instructed by the Gospel, charity is everything because, as Saint John teaches (cf. 1 Jn 4:8, 16) and as I recalled in my first Encyclical Letter, “God is love” (Deus Caritas Est): everything has its origin in God's love, everything is shaped by it, everything is directed towards it. Love is God's greatest gift to humanity, it is his promise and our hope.
Capitalism
Ok, sorry for the long delay between posts. I am working on some things for my classes that I hope to be able to post in snippets in the coming weeks.
It may appear from previous posts that I am not much of a fan of Capitalism, but while I am critical of it, I do believe it to be the most efficient and productive economic system in terms of wealth and standards of living. The evidence is very clearly in favor of this, I would have no way of arguing against it if I tried.
Most of my criticism is directed toward materialism and individualism, the "structures of sin" which are by-products of Capitalism and very prevalent in our society. The problem with Capitalism is that it creates a guise for these structures of sin. It convinces people that if they act in their self-interest, they will bring about the greatest societal good. This theory is only good in practice when there is a great number of competitors to hold each individual in check, keep him on his toes so to speak. Contrary to common belief, competition isn't the norm in our current capitalism. Big business and banks rule the show. They not only control credit, pricing, and output, but they also use their profits to lobby and persuade politicians. This is not a conspiracy theory, but the reality of our situation.
Even the people who run these businesses and banks, who want the good of all, and subscribe to the notion of acting in self-interest for the common good are not getting it because their self-interest directs them to exploit workers, keep costs (their wages) as low as possible, take care of their own, and maximize profits so that they get a nice bonus check for what? a bigger mansion? more cars? They don't do it to hire more people and increase the welfare of their employees.
The greatest evil in our current system of Capitalism, is not the free market or the government, but individuals acting only for themselves out of love for wealth and power. The free market and the government provide the arenas in which they act.
If the "invisible hand" of the market really worked, wouldn't there be less poverty and inequality? Milton Friedman, perhaps the biggest advocate of a free market, thought this would happen. Yet, we are in a very bad recession caused by greed and self-interested individuals who bear none of the punishment. This is passed on to the losers of the market, the lower class.
There is no question that authentic freedom is a good thing, including freedom in economics, but the power to do what one wants whenever he wants it is not authentic freedom. True freedom is the ability to do the right thing for the good of all. Our current notion of freedom limits our true freedom. Individuals who act for themselves only, inhibit the power of others to act for the good of all.
But this begs the questions: What, if not capitalism, is our alternative? Socialism? Something in between?
I believe that a capitalistic system full of virtuous individuals is our best alternative. Socialism takes away our right to private property along with many other freedoms. Extreme liberalism or individualism denies our social nature and dependency on each other. No economic system is good without upholding our natural rights that stem from our dignity as persons created in the image and likeness of God, pervaded by charity and justice, a constant pursuit of the common good, and the solidarity of all nations. This sort of economic system will have the freedoms of capitalism, but will look more like socialism because those who win in the free market will use it for the benefit of all.
Is such a system possible? That's like asking if removing all sin is possible. We are incapable, but God enables us for by Him we can do all things, without Him we are nothing. True reform lies not in creating or repealing public policy, but in the conversion of hearts. We must continue to strive for our own virtue and that of others by turning to God in prayer and leading by example.
It may appear from previous posts that I am not much of a fan of Capitalism, but while I am critical of it, I do believe it to be the most efficient and productive economic system in terms of wealth and standards of living. The evidence is very clearly in favor of this, I would have no way of arguing against it if I tried.
Most of my criticism is directed toward materialism and individualism, the "structures of sin" which are by-products of Capitalism and very prevalent in our society. The problem with Capitalism is that it creates a guise for these structures of sin. It convinces people that if they act in their self-interest, they will bring about the greatest societal good. This theory is only good in practice when there is a great number of competitors to hold each individual in check, keep him on his toes so to speak. Contrary to common belief, competition isn't the norm in our current capitalism. Big business and banks rule the show. They not only control credit, pricing, and output, but they also use their profits to lobby and persuade politicians. This is not a conspiracy theory, but the reality of our situation.
Even the people who run these businesses and banks, who want the good of all, and subscribe to the notion of acting in self-interest for the common good are not getting it because their self-interest directs them to exploit workers, keep costs (their wages) as low as possible, take care of their own, and maximize profits so that they get a nice bonus check for what? a bigger mansion? more cars? They don't do it to hire more people and increase the welfare of their employees.
The greatest evil in our current system of Capitalism, is not the free market or the government, but individuals acting only for themselves out of love for wealth and power. The free market and the government provide the arenas in which they act.
If the "invisible hand" of the market really worked, wouldn't there be less poverty and inequality? Milton Friedman, perhaps the biggest advocate of a free market, thought this would happen. Yet, we are in a very bad recession caused by greed and self-interested individuals who bear none of the punishment. This is passed on to the losers of the market, the lower class.
There is no question that authentic freedom is a good thing, including freedom in economics, but the power to do what one wants whenever he wants it is not authentic freedom. True freedom is the ability to do the right thing for the good of all. Our current notion of freedom limits our true freedom. Individuals who act for themselves only, inhibit the power of others to act for the good of all.
But this begs the questions: What, if not capitalism, is our alternative? Socialism? Something in between?
I believe that a capitalistic system full of virtuous individuals is our best alternative. Socialism takes away our right to private property along with many other freedoms. Extreme liberalism or individualism denies our social nature and dependency on each other. No economic system is good without upholding our natural rights that stem from our dignity as persons created in the image and likeness of God, pervaded by charity and justice, a constant pursuit of the common good, and the solidarity of all nations. This sort of economic system will have the freedoms of capitalism, but will look more like socialism because those who win in the free market will use it for the benefit of all.
Is such a system possible? That's like asking if removing all sin is possible. We are incapable, but God enables us for by Him we can do all things, without Him we are nothing. True reform lies not in creating or repealing public policy, but in the conversion of hearts. We must continue to strive for our own virtue and that of others by turning to God in prayer and leading by example.
Monday, November 1, 2010
Material Mortality
With today being All Saints Day and tomorrow All Souls Day, we remember, honor, and ask for prayers from the many holy men and women who have gone before us as disciples of Christ. We are also reminded of our mortality and the ever-present potentiality of death.
It is also a reminder to not spend our time striving after or worrying about the accumulation of material goods. Our material goods do not pass with us into eternal life when we die, they are but means to help us live a life worthy of Christ on earth. If we do not use our computers, cars, etc. for the good of all, for the building up of charity and all virtue, then they are obstructing us from our true purpose. Attachment to earthly goods is idolatry and a very common one in our society. If we do not exercise our control over them, then they exercise control over us.
It is good to reflect often on how we use our material goods and whether or not we are too attached to them, but especially on this day of remembrance of those who built their store in heavenly goods.
As St. Benedict advises us, keep death before your eyes daily. It is good to be grateful for the many material blessings that God has given us, and recognize that it could be otherwise, but that either way, we are still able to live as Christ taught us, living as though today is our last. For we put our hope in a life full of happiness that no amount of material goods will ever give us. One in which we can share with the holy men and women whom we remember this day.
It is also a reminder to not spend our time striving after or worrying about the accumulation of material goods. Our material goods do not pass with us into eternal life when we die, they are but means to help us live a life worthy of Christ on earth. If we do not use our computers, cars, etc. for the good of all, for the building up of charity and all virtue, then they are obstructing us from our true purpose. Attachment to earthly goods is idolatry and a very common one in our society. If we do not exercise our control over them, then they exercise control over us.
It is good to reflect often on how we use our material goods and whether or not we are too attached to them, but especially on this day of remembrance of those who built their store in heavenly goods.
As St. Benedict advises us, keep death before your eyes daily. It is good to be grateful for the many material blessings that God has given us, and recognize that it could be otherwise, but that either way, we are still able to live as Christ taught us, living as though today is our last. For we put our hope in a life full of happiness that no amount of material goods will ever give us. One in which we can share with the holy men and women whom we remember this day.
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