Tag Archives: Economics

Should Christians be committed to small government conservatism?

A conflict of worldviews
A conflict of worldviews

I found a paper (PDF) on the University of Washington web site that makes the case for why Christians ought to care about more than just social issues.

Here’s the abstract:

What accounts for cross-national variation in religiosity as measured by church attendance and non-religious rates? Examining answers from both secularization theory and the religious economy perspective, we assert that cross-national variation in religious participation is a function of government welfare spending and provide a theory that links macro-sociological outcomes with individual rationality. Churches historically have provided social welfare. As governments gradually assume many of these welfare functions, individuals with elastic preferences for spiritual goods will reduce their level of participation since the desired welfare goods can be obtained from secular sources. Cross-national data on welfare spending and religious participation show a strong negative relationship between these two variables after controlling for other aspects of modernization.

Here’s the conclusion:

It is quite apparent that there is a strong statistical relationship between state social welfare spending and religious participation and religiosity. Countries with higher levels of per capita welfare have a proclivity for less religious participation and tend to have higher percentages of non-religious individuals. People living in countries with high social welfare spending per capita even have less of a tendency to take comfort in religion, perhaps knowing that the state is there to help them in times of crisis.34 As laid out in the theory above, there is likely a substitution effect for some individuals between state-provided services and religious services. Religion will still be there to serve the spiritual needs of people seeking answers to the philosophic mysteries of life, but those who value those spiritual goods less than the tangible welfare benefits churches provide will be less likely to participate in religious services once secular substitutes become available. Given that religious practice and values are often passed down from generation to generation, the weakening of practice in one generation will likely translate into weaker practice in subsequent generations. Does this mean that secularization theory is correct in its prediction that religion will gradually fade away? Doubtful. Realizing that there is still a yearning among many people to understand the mysteries of life, religion is not likely to dissipate at any time soon. Government simply cannot offer credible substitutes for these less tangible, supernatural goods. The explosion in spirituality once religion was made legal in former Soviet bloc countries lends credence to this assertion (Greeley 1994). As religious markets become more deregulated in various parts of the world, it is likely that new religious movements will take advantage of increased liberty and discover ways to expand.

Perhaps one of the most important lessons from the findings above is that the religiosity of a society is not simply determined by sociological factors. Government policy can play an important role in shaping the religiosity of a nation. Policies aimed at regulating the activities of religious organizations — from tax laws to zoning regulations — have important effects on the firms that supply religious goods and services. Many of these policies are designed consciously to promote or inhibit religious practice. Alternatively, welfare policy has been shown here to unintentionally affect the demand for religious services, likely over the course of generations. And, finally, since an extensive welfare state is considered by many to be a hallmark of modernized societies, the microfoundational analysis presented above provides a way of incorporating a component part of the secularization thesis (which relies heavily on notions of modernization) into the religious economy perspective.

Have you ever heard a sermon that addresses the size of government and individual liberty and prosperity? I haven’t. You’d have to be reading Wayne Grudem or Jay Richards to find that. The typical church you attend either praises big government or says nothing about it. After all, we can keep making withdrawals on the liberties we have right now without ever worrying about having to make any deposits, right? Everything will be fine, and it’s easier not to have to think about what’s down the road to serfdom, so long as the scenery is nice for us right now. Religion is primarily about comfort, not truth. Right?

The funny thing is that when I talk to most Christians about this, especially non-Americans, they simply don’t have the knowledge of economics to understand how big government affects liberty, prosperity and security. There is no one reading F.A. Hayek and Thomas Sowell in Europe, and there are not that many people reading them here at home either.

America’s abandonment of traditional values has hurt the black community

Economist Walter Williams
Economist Walter Williams

My two favorite economists are Thomas Sowell and Walter Williams, who are coincidentally both black. Both have been around long enough to see how the Great Society welfare programs and the Sexual Revolution have affected blacks.

Here is Walter Williams commenting on the black community in The Daily Signal.

He writes:

How might one explain the greater civility of Philadelphia and other big-city, predominantly black neighborhoods and schools during earlier periods compared with today? Would anyone argue that during the ’40s and ’50s, there was less racial discrimination and poverty? Was academic performance higher because there were greater opportunities? Was civility in school greater in earlier periods because black students had more black role models in the form of black principals, teachers, and guidance counselors? That’s nonsense, at least in northern schools. In my case, I had no more than three black teachers throughout primary and secondary school.

Starting in the 1960s, the values that made for civility came under attack. Corporal punishment was banned. This was the time when the education establishment and liberals launched their agenda that undermined lessons children learned from their parents and the church.

Sex education classes undermined family/church strictures against premarital sex. Lessons of abstinence were ridiculed, considered passé, and replaced with lessons about condoms, birth control pills, and abortion. Further undermining of parental authority came with legal and extralegal measures to assist teenage abortions, often with neither parental knowledge nor parental consent.

Customs, traditions, moral values, and rules of etiquette are behavioral norms, transmitted mostly by example, word of mouth, and religious teachings. As such, they represent a body of wisdom distilled through the ages by experience and trial and error.

The nation’s liberals—along with the education establishment, pseudo-intellectuals, and the courts—have waged war on traditions, customs and moral values. Many people have been counseled to believe that there are no moral absolutes. Instead, what’s moral or immoral is a matter of personal convenience, personal opinion, what feels good, or what is or is not criminal.

We no longer condemn or shame self-destructive and rude behavior, such as out-of-wedlock pregnancies, dependency, cheating, and lying. We have replaced what worked with what sounds good.

The abandonment of traditional values has negatively affected the nation as a whole, but blacks have borne the greater burden. This is seen by the decline in the percentage of black two-parent families. Today, a little over 30 percent of black children live in an intact family, where as early as the late 1800s, over 70 percent did. Black illegitimacy in 1938 was 11 percent, and that for whites was 3 percent. Today, it’s respectively 73 percent and 30 percent.

It is the height of dishonesty, as far as blacks are concerned, to blame our problems on slavery, how white people behave, and racial discrimination. If those lies are not exposed, we will continue to look for external solutions when true solutions are internal. Those of us who are old enough to know better need to expose these lies.

I know why Democrat leaders lie to the black community about the relative importance of “racism” compared to bad decisions about whether to finish high school, whether to have sex before marriage, whether to break the law, and whether to work rather than collect welfare. The truth is that a person cannot be poor in the United States if they make good decisions. Normally, when people (of any color) make bad decisions, they learn not to do it on their own, or they find themselves advisors to help them learn. But the Democrats are there to tell those who make mistakes that their mistakes are caused by other people. This harms the people making the mistakes instead of helping them.

What is the difference between capitalism and socialism?

Over 100,000 Venezuelans pouring into Colombia from the Venezuela in order to buy food
Over 100,000 Venezuelans cross into Colombia in order to buy food

(This photo H/T Prager University)

One country that has done a good job of implementing socialism is Venezuela.

Here is an article from March 2013 from Slate, a web site that strongly favors socialism. The headline is “Hugo Chavez’s economic miracle: The Venezuelan leader was often marginalized as a radical. But his brand of socialism achieved real economic gains”. The author is “a senior writer for the International Business Times”.

He writes:

Chavez became the bugaboo of American politics because his full-throated advocacy of socialism and redistributionism at once represented a fundamental critique of neoliberal economics, and also delivered some indisputably positive results. Indeed, as shown by some of the most significant indicators, Chavez racked up an economic record that a legacy-obsessed American president could only dream of achieving.

What did Chavez do, precisely, that caused the Venezuelan economic to boom? Well, he nationalized private industry and redistributed wealth from job creators and entrepreneurs to the poor.

As The Week correctly put it, while “Chavez’s policies of redistribution and nationalization of oil assets endeared him to Venezuela’s working class” and produced many laudable results, the country’s “oil-centric economy has taken away resources from other areas that are badly in need of development.”

OK, so that’s pretty much what the Democrat party wants to do in the United States as well. Nationalize the energy sector, nationalize health care, etc. Let the government take over the private sector industries in order to eliminate “inequalities”. Raise taxes, and redistribute the money to the low income people via social programs, also known as welfare.

So, how does it work? Is socialism really an “economic miracle”?

Here is the latest from Venezuela, as reported by CNN Money. (H/T William)

Excerpt:

Venezuelans cried at the sight of fully-stocked supermarket shelves in Colombia.

Pregnant women, children and even elderly Venezuelans crossed into Colombia on Sunday after the border was temporarily reopened, allowing them to buy basic foods and toiletries — rare commodities in their home country.

Tearful Venezuelans had gone weeks without basic food items like milk, flour and toilet paper. It’s a sad but common part of daily life today in crisis-ridden Venezuela, a country that has the world’s largest proven reserves of oil. Colombian officials estimate that about 100,000 Venezuelans crossed the border.

Venezuela is expected to dive deeper into the abyss this year, according to new projections published Wednesday by the International Monetary Fund.

The IMF forecasts Venezuela’s economy will shrink 10% this year, worse than its previous estimate of 8%. It also estimates that inflation in Venezuela will catapult to 700% this year, up from the earlier guess of about 480%.

“Venezuela’s economic condition continues to deteriorate,” says Alejandro Werner, chief Latin America economist at the IMF. The estimates for growth and inflation are the worst worldwide.

The numbers are just the tip of the iceberg. Venezuela is deep into a humanitarian crisis — people are dying in ill-equipped hospitals and many live without basic food items. Venezuela can’t pay to import goods because its government is desperately strapped for cash after years of mismanagement of its funds, heavy spending on poorly-run government programs, and lack of investment on its oil fields.

[…]It’s all even more tragic given that despite Venezuela’s oil abundance, its state-run oil company, PDVSA, is broke. Venezuela’s oil production fell to a 13-year low in June, according to OPEC, of which it’s a member.

That’s what you get when you let the government take over the free enterprise system, or even when you just stifle the free market with burdensome regulations and high taxes. That’s what socialists in Venezuela did. That’s what the Democrat party would do. They’re  two sides of the same coin.

Dennis Prager

Dennis Prager put out a good video recently explaining the problems with socialism:

Why would anyone prefer a system that encourages some people to feel entitled to what other people create and earn? We want a system that is focused on serving your neighbor – not stealing from them.

Arthur Brooks

If you would like a very brief introduction to capitalism, also known as the free enterprise system or the free market system, then you can watch the videos below, featuring Arthur Brooks, president of the American Enterprise Institute.

Here is the first one, which explains the myths that most Americans are taught about capitalism in school and in the culture:

An important advantage of capitalism is that it lifts people out of poverty. The poorest people in America live much better than the wealthy in Venezuela.

And the second video explains what capitalism offers to individuals for their fulfillment, which socialism does not:

Earned success makes people happier, which is at least as important as the wealth benefit.

We can compare the results of each system by looking at where it’s been tried. Capitalism lifts people out of poverty – all the people in the society who are willing to work are lifted out of poverty. Even the people who can’t work in a capitalist society enjoy the benefits of charity from their neighbors – when people do well, they give more money away. Socialism drives those who work and those who don’t work into poverty, and eliminates charity. No one has anything to share when everyone is poor.

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