Videos

Jay Richards: How to end poverty in 10 tough steps

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I saw that Stand to Reason’s Amy Hall blogged about a new lecture by Jay Richards, a Christian expert in economics. Amy linked to this post by Justin Taylor which summarizes the talk (above).

Summary:

  1. Establish and maintain the rule of law.
  2. Focus the jurisdiction of government on maintaining the rule of law, and limit its jurisdiction over the economy and the institutions of civil society.
  3. Implement a formal property system with consistent and accessible means for securing a clear title to property one owns.
  4. Encourage economic freedom: Allow people to trade goods and services unencumbered by tariffs, subsidies, price controls, undue regulation, and restrictive immigration policies.
  5. Encourage stable families and other important private institutions that mediate between the individual and the state.
  6. Encourage belief in the truth that the universe is purposeful and makes sense.
  7. Encourage the right cultural mores—orientation to the future and the belief that progress but not utopia is possible in this life; willingness to save and delay gratification; willingness to risk, to respect the rights and property of others, to be diligent, to be thrifty.
  8. Instill a proper understanding of the nature of wealth and poverty—that wealth is created, that free trade is win-win, that risk is essential to enterprise, that trade-offs are unavoidable, that the success of others need not come at your expense, and that you can pursue legitimate self-interest and the common good at the same time.
  9. Focus on your comparative advantage rather than protecting what used to be your competitive advantage.
  10. Work hard.

I’m currently working my way through Money, Greed and God with a friend, and we are going through it chapter by chapter. If you don’t have the book, it’s a perfect introduction to economics and how it relates to the Christian worldview. I always encourage Christians to move beyond good intentions to good results by studying economics. We are supposed to be helping the poor, but how should we do it? Economics is the science that allows us to understand which policies we should support to do that.

News

Study finds that gay parents are more likely to raise gay kids

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A peer-reviewed study about gay parents raising gay kids in AOL News.

Excerpt:

Walter Schumm knows what he’s about to do is unpopular: publish a study arguing that gay parents are more likely to raise gay children than straight parents. But the Kansas State University family studies professor has a detailed analysis that past almost aggressively ideological researchers never had.

[…]His study on sexual orientation, out next month, says that gay and lesbian parents are far more likely to have children who become gay. “I’m trying to prove that it’s not 100 percent genetic,” Schumm tells AOL News.

His study is a meta-analysis of existing work. First, Schumm extrapolated data from 10 books on gay parenting… [and] skewed his data so that only self-identified gay and lesbian children would be labeled as such.

This is important because sometimes Schumm would come across a passage of children of gay parents who said they were “adamant about not declaring their sexual orientation at all.” These people would be labeled straight, even though the passage’s implication was that they were gay.

Schumm concluded that children of lesbian parents identified themselves as gay 31 percent of the time; children of gay men had gay children 19 percent of the time, and children of a lesbian mother and gay father had at least one gay child 25 percent of the time.

Furthermore, when the study restricted the results so that they included only children in their 20s — presumably after they’d been able to work out any adolescent confusion or experimentation — 58 percent of the children of lesbians called themselves gay, and 33 percent of the children of gay men called themselves gay. (About 5 to 10 percent of the children of straight parents call themselves gay, Schumm says.)

Schumm next went macro, poring over an anthropological study of various cultures’ acceptance of homosexuality. He found that when communities welcome gays and lesbians, “89 percent feature higher rates of homosexual behavior.”

Finally, Schumm looked at the existing academic studies… In all there are 26 such studies. Schumm ran the numbers from them and concluded that, surprisingly, 20 percent of the kids of gay parents were gay themselves. When children only 17 or older were included in the analysis, 28 percent were gay.

Here’s the paper entitled “Children of homosexuals more apt to be homosexuals?“. It appeared in the Journal of Biosocial Science.

Abstract:

Ten narrative studies involving family histories of 262 children of gay fathers and lesbian mothers were evaluated statistically in response to Morrison’s (2007) concerns about Cameron’s (2006) research that had involved three narrative studies. Despite numerous attempts to bias the results in favour of the null hypothesis and allowing for up to 20 (of 63, 32%) coding errors, Cameron’s (2006) hypothesis that gay and lesbian parents would be more likely to have gay, lesbian, bisexual or unsure (of sexual orientation) sons and daughters was confirmed. Percentages of children of gay and lesbian parents who adopted non-heterosexual identities ranged between 16% and 57%, with odds ratios of 1.7 to 12.1, depending on the mix of child and parent genders. Daughters of lesbian mothers were most likely (33% to 57%; odds ratios from 4.5 to 12.1) to report non-heterosexual identities. Data from ethnographic sources and from previous studies on gay and lesbian parenting were re-examined and found to support the hypothesis that social and parental influences may influence the expression of non-heterosexual identities and/or behaviour. Thus, evidence is presented from three different sources, contrary to most previous scientific opinion, even most previous scientific consensus, that suggests intergenerational transfer of sexual orientation can occur at statistically significant and substantial rates, especially for female parents or female children. In some analyses for sons, intergenerational transfer was not significant. Further research is needed with respect to pathways by which intergenerational transfer of sexual orientation may occur. The results confirm an evolving tendency among scholars to cite the possibility of some degree of intergenerational crossover of sexual orientation.

Please exercise caution when commenting, we do not want to be Brendan Eich’d by the Obama administration.

News

American corporations are expanding outside the United States to avoid high taxes

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From Investors Business Daily.

Excerpt:

Walgreen, America’s venerable drug-store chain, is thinking the unthinkable: relocating to Europe. Not because it sees growth and opportunity there, but because of onerous taxes here in the U.S. It’s an ominous trend.

The Financial Times of London calls it “one of the largest tax inversions ever.” That is, a company seeking to avoid punitive taxes in one market by moving to another.

No doubt the FT is right. And after its recent $16 billion takeover of Swiss-based Alliance Boots, it would be easy for Walgreen to remake itself as a Swiss company.

If it did, the Democratic Party’s liberals would no doubt call Walgreen unpatriotic for wanting to lessen its tax burden. In fact, they are responsible for an economic environment so hostile to capital and investment that companies now find it intolerable.

[…]According to an analysis by UBS, Walgreen’s U.S. tax rate is 37.5% — compared with Alliance Boots’ rate in Europe of about 20%. That’s a huge gap, worth billions of dollars a year.

But it’s even worse than that. A recent OECD study says the “integrated tax rate” — taxes on capital and income — for U.S. companies is a nightmarish 67.8% vs. 43.7% for the OECD.

Many companies facing steep tax rates and insane regulations in the U.S. have had enough. They’re keeping their profits overseas. Last week, Senate Finance Committee chief Ron Wyden, an Oregon Democrat, reported U.S. corporations now hold $2.1 trillion in earnings in overseas accounts — a massive amount, roughly equal to 12% of U.S. gross domestic product.

A total of 547 companies — including Apple, GE, Microsoft and Pfizer — have dramatically expanded their so-called foreign indefinitely reinvested earnings overseas, which let them avoid the punishing rates here at home.

[…]Not only are taxes too high, but also new laws such as Dodd-Frank and ObamaCare, a vast expansion of regulation, debt and the size of government, the federal takeover of entire industries, the bullying of Wall Street and demonization of CEOs, and forced CO2 cuts that will hammer manufacturers have made this the least pro-free market U.S. government in generations.

If you make it harder for businesses here to do business (higher taxes and burdensome regulations), then they will expand abroad instead, and in some cases, they will just move completely. How does that help create jobs here? It doesn’t.