Tag Archives: Thomas Sowell

Cato Institute talks with Jay Richards about Christianity and capitalism

Did you know that the libertarian Cato Institute has a podcast? I like listening to it, even though I am not a libertarian on many issues. But I like their views on economics, government and liberty. I think that they are right on issues like school choice, consumer-driven health care, and global warming skepticism. In the episode of their podcast below, they interviewed Protestant theologian and philosopher Jay W. Richards on the relationship between Christianity and economics.

The MP3 file is here. (10 minutes)

The guy who does these podcasts is named Caleb Brown. Now, with a name like “Caleb”, I always thought that he must be some sort of Christian. Well, it turns out that he is a Quaker. And this is a shock, because Quakers are actually pretty socialistic on economic issues. But it turns out that Caleb is as concerned as I am that Christians are not more inclined towards capitalism. The fit between Christianity and capitalism is much more natural than with secular socialism.

Further study

To learn more about the relationship between Christianity and capitalism, check out this post (the second half is on capitalism).

Excerpt:

To understand what capitalism is, you can watch this lecture entitled “Money, Greed and God: Why Capitalism is the Solution and Not the Problem” by Jay W. Richards, delivered at the Heritage Foundation think tank, and televised by C-SPAN2.

[…]If you can’t see the Richards video, here is an audio lecture by Jay Richards on the “Myths Christians Believe about Wealth and Poverty“. Also, why not check out this series of 4 sermons by Wayne Grudem on the relationship between Christianity and economics? (a PDF outline is here)

And you can listen to Ron Nash’s course on Christianity and economics.

What should Christians believe about economic policy and social justice?

The best resource I know of is this course from Dr. Ronald Nash. (H/T Apologetics 315)

Advanced Worldview Analysis
by Dr. Ronald Nash (24 Lectures) – RSS / iTunes

Here are the individual topics:

  • Lesson 1 – Introduction Play Now
  • Lesson 2 – Liberalism and Conservatism Play Now
  • Lesson 3 – Political Positions Play Now
  • Lesson 4 – Statism and Anti-statism Play Now
  • Lesson 5 – Evaluation of Statism and Anti-statism Play Now
  • Lesson 6 – Justice Play Now
  • Lesson 7 – Capitalism and Socialism Play Now
  • Lesson 8 – Interventionism Play Now
  • Lesson 9 – Defense of Capitalism Play Now
  • Lesson 10 – Economics Play Now
  • Lesson 11 – Marxism Play Now
  • Lesson 12 – Real Accounting Fraud Play Now
  • Lesson 13 – Socialism and Capitalism Play Now
  • Lesson 14 – Money and Wealth Play Now
  • Lesson 15 – Poverty Play Now
  • Lesson 16 – Liberation Theology Play Now
  • Lesson 17 – The Religious Left Play Now
  • Lesson 18 – Representatives of the Evangelical Left Play Now
  • Lesson 19 – Inflation of Rights Play Now
  • Lesson 20 – Legal Positivism Play Now
  • Lesson 21 – Environmentalism Overview Play Now
  • Lesson 22 – Types of Pollution Play Now
  • Lesson 23 – Problems with Public Education Play Now
  • Lesson 24 – A Possible Solution Play Now

This course is most wonderful thing in the world.

And if you like it, you may also like those debates with James Crossley, Richard Bauckham, Michael Bird and William Lane Craig on the historical Jesus. I have been listening to those debates non-stop and I really enjoy listening to both sides. I think it is really interesting hearing James Crossley explain his historical concerns about orthodox Christianity.

Thomas Sowell explains the economics of cutting health care costs

The Democrats are talking a lot of about their plan to reduce the costs of health care. And they think that the way to do that is by having government take a bigger role in health care provision. Well, Thomas Sowell doesn’t like the idea that the government can reduce health care costs by using govenrment, and he’s written a four part series on it.

Here’s a quote from the first part about how Democrats attack the suppliers of health care products and services:

Despite all the demonizing of insurance companies, pharmaceutical companies or doctors for what they charge, the fundamental costs of goods and services are the costs of producing them.

If highly paid chief executives of insurance companies or pharmaceutical companies agreed to work free of charge, it would make very little difference in the cost of insurance or medications. If doctors’ incomes were cut in half, that would not lower the cost of producing doctors through years of expensive training in medical schools and hospitals, nor the overhead costs of running doctors’ offices.

What it would do is reduce the number of very able people who are willing to take on the high costs of a medical education when the return on that investment is greatly reduced and the aggravations of dealing with government bureaucrats are added to the burdens of the work.

Britain has had a government-run medical system for more than half a century and it has to import doctors, including some from Third World countries where the medical training may not be the best.

And a quote from the second part about how reducing costs means rationing:

There is no question that you can reduce the payments for medical care by having either a lower quantity or a lower quality of medical care. That has already been done in countries with government-run medical systems.

In the United States, the government has already reduced payments for patients on Medicare and Medicaid, with the result that some doctors no longer accept new patients with Medicare or Medicaid. That has not reduced the cost of medical care. It has reduced the availability of medical care, just as buying a pint of milk reduces the payment below what a quart of milk would cost.

Letting old people die instead of saving their lives will undoubtedly reduce medical payments considerably. But old people have that option already— and seldom choose to exercise it, despite clever people who talk about a “duty to die.”

A government-run system will take that decision out of the hands of the elderly or their families, and thereby “bring down the cost of medical care.” A stranger’s death is much easier to take, especially if you are a bureaucrat making that decision in Washington.

[…]You can even save money by cutting down on medications to relieve pain, as is already being done in Britain’s government-run medical system.

You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.But reducing these things is not “bringing down the cost of medical care.” It is simply refusing to pay those costs— and taking the consequences.

And a quote from the third part talks about free markets versus government price controls:

If you think the government can lower medical costs by eliminating “waste, fraud and abuse,” as some Washington politicians claim, the logical question is: Why haven’t they done that already?

Over the years, scandal after scandal has shown waste, fraud and abuse to be rampant in Medicare and Medicaid. Why would anyone imagine that a new government medical program will do what existing government medical programs have clearly failed to do?

If we cannot afford to pay for doctors, hospitals and pharmaceutical drugs now, how can we afford to pay for doctors, hospitals and pharmaceutical drugs, in addition to a new federal bureaucracy to administer a government-run medical system?

And a quote from the fourth part talks about equality versus liberty in health care:

What about insurance companies denying reimbursements for treatments? Does anyone imagine that a government bureaucracy will not do that?

Moreover, the worst that an insurance company can do is refuse to pay for medication or treatment. In some countries with government-run medical systems, the government can prevent you from spending your own money to get the medication or treatment that their bureaucracy has denied you. Your choice is to leave the country or smuggle in what you need.

However appalling such a situation may be, it is perfectly consistent with elites wanting to control your life. As far as those elites are concerned, it would not be “social justice” to allow some people to get medical care that others are denied, just because some people “happen to have money.”

But very few people just “happen to have money.” Most people have earned money by producing something that other people wanted. But getting what you want by what you have earned, rather than by what elites will deign to allow you to have, is completely incompatible with the vision of an elite-controlled world, which they call “social justice” or other politically attractive phrases.

What’s frustrating to me is how quickly people think of growing government as the solution to their problems. They don’t want to deal with paying for health care themselves. But what the government does to solve the high prices is fix prices and regulate the producers of health care, like doctors and medical device manufacturers. They make the supply smaller. But when the cost apparently goes down, people are signaled to use more health care. That makes the demand larger. And this is why there is a shortage of health care in countries that have health care provisioning highly regulated by the government.

You can even save money by cutting down on medications to relieve pain, as is already being done in Britain’s government-run medical system.

You can save money by not having as many high-tech medical devices like CAT scans or MRIs, and not using the latest medications. Countries with government-run medical systems have less of all these things than the United States has.But reducing these things is not “bringing down the cost of medical care.” It is simply refusing to pay those costs— and taking the consequences.