Tag Archives: Socialism

Commentary

Christian professor of economics discusses capitalism, socialism and the Bible

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Here’s an interview with Dr. Shawn Ritenour, economics professor at Grove City College. The interview is conducted by Dr. Paul Kengor.

Excerpt:

Kengor: …it seems that the very foundation of economics, not to mention the American republic in some respects, is the right to private property. Do you agree? If so, is that Scriptural?

Ritenour: The foundation of economic activity and policy is private property. All action requires the use of property and all economic policy is about how people can legally use their property. To benefit from the division of labor, we must be able to exchange our products, which requires private property. Private property is definitely Scriptural. The Bible explicitly prohibits theft, fraud, moving property barriers, debasing money, violating labor contracts, as well as coveting. These prohibitions apply to both citizens and rulers. In my text, I apply this conclusion to issues such as confiscatory taxation, government subsidies, business regulation, and monetary inflation.

Kengor: I find it very telling that Karl Marx was first and foremost against private property, not to mention against God as well. In the “Communist Manifesto,” he wrote plainly: “the theory of the Communists may be summed up in a single sentence: Abolition of private property.” And yet, there are some religious left Christians who claim that the Bible, especially in certain Old Testament passages, preaches a form of socialism and even communism. A student of mine had a teacher at a private Christian school in Ohio who instructed the class that as Christians they should be communists. Can you address this argument?

Ritenour: Communism can be condemned strictly on the basis of the Christian ethic of property (among other reasons). Nothing in Scripture either commands or implies that the means of production should be controlled by the state. There are passages in the early chapters of Acts that are often cited as promoting “Christian communism,” but, in fact, actually illustrate Christian sharing. The various Christians still owned their property, but were generous in sharing whenever they saw a need. When Peter rebukes Ananias in Acts 5, he explicitly says that both the property that Ananias and Sapphira sold and the monetary proceeds from selling it were theirs to do with what they wanted. That is not the gospel according to Marx.

Kengor: I like the way you turn the religious left’s thinking on private property on its head. You note that “God prohibits our coveting the property of others.” With that being the case, isn’t it wrong for the government to use the mighty arm of the state to forcibly remove property from one person to give it to another?

Ritenour: I see no other way around that conclusion, especially when we realize that, in our day of mass democracy, the state usually accomplishes policies of wealth redistribution by inciting envy and covetousness among the populace.

Kengor: What about profits? Reconcile the profit motive with the God of Scripture. We have people in this society who portray profits as greedy or unjust.

Ritenour: Profit is the reward entrepreneurs receive for more successfully producing what people want. This is no easy thing to do. Entrepreneurs must invest in present production of goods they sell in the future. Neither entrepreneurs nor government bureaucrats know exactly what future demand will be. Therefore, production necessitates bearing risk. If the entrepreneur forecasts future demand incorrectly, he will waste resources and reap losses. If he forecasts the future correctly, he serves his fellow man by producing goods people want. It seems only right that such producers are rewarded with profit. In a free market, the only way entrepreneurs earn profits is to serve customers better than anyone else.

I’m a fan of Paul Kengor’s work. If I had married and had children, I would have wanted them to go to Grove City College for their undergraduate degrees. Astronomer Guillermo Gonzalez is at Grove City right now, directing a program in astronomy.

Should Christians study other areas of knowledge like economics?

Here’s a quote from McKenzie’s Facebook page that explains why I think Christians need to understand economics.

Quote:

“If inviting nonbelievers to worship matters, then so does preserving the freedom to worship. If ministering to the needs of the poor is a mandate, then changing the policies creating poverty is very much within that mandate. And if building shelter in developing countries is part and parcel of a Christian’s burden, so… is the destruction of the power of tyrants who oppress peoples around the globe.”

It’s from Hugh Hewitt’s book “In, But Not Of”. The book is about how Christians need to make good decisions early on in life if they hope to influence the world in effective ways. This is an excellent book for young people in high school and university, or for those (like me) who dream of raising children in a careful way, so they can impact the world for Christ. My hope is to raise Michele Bachmann and Jennifer Roback Morse clones.

By the way, you can be my friend on Facebook. My Facebook page is here. And you can also follow the blog here, you have a Facebook account. (Although we get about 1000-1500 page views per day, I have only a small number of Facebook friends and followers).

Further study

News

How is socialized medicine working out in the UK and Canada?

2 Comments

First, this one from ECM, which appeared in the leftist UK Guardian. (H/T Secondhand Smoke)

Excerpt:

Blunders by GPs, hospital doctors and nurses jeopardised the health of thousands of patients when cancer was misdiagnosed or not spotted soon enough, according to an NHS report.

Over a period of a year, doctors failed to spot key signs of cancer, tissue samples were mixed up, some patients were wrongly given an all-clear and vital diagnostic tests were delayed because of staff and equipment shortages, the study, undertaken by the NHS’s National Patient Safety Agency (NPSA), found.

[…]When 508 cases were examined in detail, it was found that 177 patients were harmed. Two died, 25 suffered severe harm, 52 moderate harm and 88 low harm. Of a sample of 150 patients, 37% experienced delays of up to three months, 38% of more than three months and some had delays of three years. The government estimates that 10,000 die each year because of late diagnosis of cancer. The UK is poor by international standards at diagnosing cancer, studies have shown.

The post features tons of alarming examples. There’s socialism. When you don’t have your money in your hand, you cannot expect to be treated properly. You need a choice among providers to negotiate the best deal for your dollars.

Next, also from ECM, this one from the UK Telegraph.

Excerpt:

The Ambulance service is being paid bonuses for not taking patients to hospital in a bid to help the NHS hit controversial targets.

Patients’ groups expressed horror at the “sick experiment” in which NHS managers have agreed to pay £38 for every casualty that ambulance staff “keep out of Accident and Emergency” (A&E) departments after a 999 call has been made.

The tactic is part of an attempt to manage increasing demand for emergency care amid failings in the GP out-of-hours system.

[…]The bonuses are among dozens of schemes being tried out by ambulance trusts across the country as they attempt to improve their emergency response times and help A&E departments meet controversial targets to treat all patients within four hours of arrival.

Another plan uncovered would see thousands of 999 calls currently classed as urgent downgraded so that callers receive telephone advice instead of an ambulance response.

But we’ll soon surpass them, I’m sure.

But wait! Maybe Canada’s single-payer system is better!

The left-wing Montreal Gazette reports.

Excerpt:

Health Minister Yves Bolduc said Friday over-crowding in Quebec’s hospital emergency rooms would be resolved in “four or five years.”

“We have the best health care system in the world,” Bolduc said, while admitting that patients sometimes have to wait for that care.

“All the patients are well treated,” he said.

[…]Quebec still has a shortage of doctors and nurses, he said…

[…]Bolduc announced his newest timetable in response to reports patients are kept for 48 hours and longer in emergency.

As well, relatives are blaming deaths in their families on emergency-room congestion.

From the communist CBC, here’s more:

Guy Morisette, head of the Outaouais health agency, told CBC News that the hospital has worked hard to fix the situation, but recruiting and retaining enough staff remains a problem, and additional solutions such as training personnel and developing new programs are longer-term efforts.

Hospital Average ER Wait Time
Buckingham 20 h 30 min
Gatineau Hospital-Hull campus 20 h 06 min
Gatineau Hospital-Gatineau campus 25 h 36 min
Gatineau-Memorial 17 h 00 min
Maniwaki 10 h 24 min
Pontiac 13 h 12 min
Outaouais average 20 h 42 min
Quebec average 16 h 30 min

Taxing and regulating doctors and treating patients for paper cuts for FREE doesn’t create a shortage of health care at all. Oh, no. And anyway, the politicians just get treated in the USA anyway.

Last, Quebec, Canada’s most liberal province, proposes massive user fees.

Excerpt:

Quebeckers are bracing themselves for sweeping increases in taxes, rates and fees after a provincial budget that also proposes a controversial user fee for health-care services.

By proposing a fee for medical appointments, the 2010-11 budget tabled Tuesday represents a shift in how the province addresses spiralling health-care costs, and could trigger a national debate over conflicts with the Canada Health Act.

[…]The user fee would take the form of a deductible that, according to one proposal, would be capped so that total charges do not exceed 1 per cent of a family’s annual income. It would involve charging $25 per medical visit and be paid on a fee-for-service basis. It was estimated under one proposal that a couple with two children making 10 medical visits a year would pay a maximum of $250 annually.

The government of Premier Jean Charest also announced a new health tax to commence in June, 2010, that will be levied on individuals when they file their income taxes. The “health contribution” will cost adults $25 this year and eventually climb to $200 in 2012. Lower-income families will be exempt. When fully implemented, the new tax will generate $945-million a year.

Ontario already has massive income tax rates, property taxes, surtaxes, sales taxes, municipal taxes and health care surcharges of hundreds of dollars a year. It’s not just that they have no freedom of speech, but they die waiting for health care. (This isn’t the Conservative Party’s fault – they don’t have a majority yet to bring in market reforms to lower the cost of health care, and they don’t have a majority of the Senate and not even close to a majority in the Supreme Court).

News

More companies announce massive losses as a result of Obamacare

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From Associated Press. (H/T Ace of Spades via ECM)

Excerpt:

Insurer Prudential Financial Inc. said Monday that it will take a $100 million charge in the first quarter in relation to the recent health care overhaul legislation.

The life insurance and annuities provider said in a regulatory filing that it will take the charge against earnings in the first quarter.

Prudential joins a growing list of companies that have said they will take accounting charges because of the health care bills. AT&T said last week it would take a $1 billion charge in the first quarter. AK Steel Corp., 3M Co., Caterpillar Inc., Deere & Co. and Valero Energy have also said they would take smaller charges.

Prudential said in a filing with the Securities and Exchange Commission that the health bill signed into law by President Barack Obama last week and a companion measure he is expected to sign Tuesday will reduce its tax deduction for retiree health care costs beginning in 2013.

Companies that provide prescription drug benefits for retirees have been getting subsidies covering 28 percent of eligible costs but could deduct everything they spent on the benefits — including the federal money — from their taxable income.

Normally I oppose subsidies, but this one one was keeping the elderly off the even more wasteful Medicare prescription drug plan. (I hate that plan – it was a huge mistake made by an otherwise good president). These companies are going to dump the pensioners onto Medicare and it will cost EVEN MORE to have an inefficient government run the program, with all the waste and fraud that plagues Medicare now.

Ace writes:

That subsidy was to induce companies to keep retirees on their own corporate plans rather than dump them into taxpayer-funded Medicare. Now that they’ve cut the subsidy, not only is it costing these businesses money, but many are thinking of giving up the subsidy and dumping them into government health care.

Remember, if you like your insurance, you get to keep your insurance.

And Henry Waxman is going to drag these CEOs in front of his committee, to harass and threaten them, and badger them into answering why they’re bound to accurately account for additional new tax costs.

In fact, Waxman doesn’t want an answer to that; what he wants is for companies to hide these new, embarrassing costs illegally, so that Democrats don’t have to answer questions about them. And he figures harassment and the threat of punitive legislative action should be enough to give other companies the hint.

Preemptive Strike? Rich Lowry says it’s part of the Democrats’ plan to claim that all negative consequences of this bill are due to a conspiracy between evil corporations.

Meanwhile, National Review has a related story from PRNewswire. (H/T ECM)

Excerpt:

Illinois Tool Works Inc. (NYSE: ITW) today announced that as a result of certain provisions in the recently enacted Patient Protection and Affordable Health Care program, future Medicare prescription drug subsidies received by the Company for retiree prescription drug coverage will now be taxable.  As a result, the Company expects to record a discrete tax adjustment of $22 million, or 4 cents of diluted income per share from continuing operations, in its 2010 first quarter results to reflect this change in tax treatment.  This discrete tax adjustment was not included in the Company’s March 15, 2010 revised earnings forecast.

Wow. We’re in freaking North Korea now. Next time, don’t vote for the radical socialist. Socialism makes jobs go away. This is not a surprise to anyone on the right. We know these things because we’re grown ups. We know how the world works. Happy talk doesn’t grow the economy.

Related: Other companies take massive losses after Obamacare passes.