Economic Philosophy

A Lazier America

 

 

I think that the re-election of Obama will come to be viewed by most Americans as an umitigated disaster in the years to come.  He has been a curse upon this country in so many ways, but perhaps especially in regard to the American character.

 

The London-based Think Tank Legatum Institute recently offered empirical evidence of what many Americans have been thinking lately. Our national well-being is slipping.

Over the past four years, prosperity has increased around the globe, while it has remained stagnant in the United States, the Legatum Institute reports. As a result, the Institute ranked the United States 12th out of 142 countries on its 2012 Prosperity Index, putting the country outside the top ten for the first time.

Go here to read the rest.  The summary of the report in regard to the US makes for depressing reading: Continue reading

German Economist: America Is Becoming Too European

I found this piece from the English-language edition of Der Spiegel by University of Hamburg economics professor Thomas Straughaar very interest, in part because it reads very much as written by someone who is looking at American history and culture from the outside, yet trying to understand it for what it is. A key passage from the second page:

This raises a crucial question: Is the US economy perhaps suffering less from an economic downturn and more from a serious structural problem? It seems plausible that the American economy has lost its belief in American principles. People no longer have confidence in the self-healing forces of the private sector, and the reliance on self-help and self-regulation to solve problems no longer exists.

The opposite strategy, one that seeks to treat the American patient with more government, is risky — because it does not fit in with America’s image of itself.

Continue reading

Caritas in Veritate 25, By the Numbers

My co-blogger Tim recently highlighted the following statement from Pope Benedict’s latest social encyclical, Caritas in Veritate:

The global market has stimulated first and foremost, on the part of rich countries, a search for areas in which to outsource production at low cost with a view to reducing the prices of many goods, increasing purchasing power and thus accelerating the rate of development in terms of greater availability of consumer goods for the domestic market. Consequently, the market has prompted new forms of competition between States as they seek to attract foreign businesses to set up production centres, by means of a variety of instruments, including favourable fiscal regimes and deregulation of the labour market. These processes have led to a downsizing of social security systems as the price to be paid for seeking greater competitive advantage in the global market, with consequent grave danger for the rights of workers, for fundamental human rights and for the solidarity associated with the traditional forms of the social State. Systems of social security can lose the capacity to carry out their task, both in emerging countries and in those that were among the earliest to develop, as well as in poor countries. Here budgetary policies, with cuts in social spending often made under pressure from international financial institutions, can leave citizens powerless in the face of old and new risks; such powerlessness is increased by the lack of effective protection on the part of workers’ associations.

Now in this passage, the Pope makes a number of factual and causal claims. First, he claims that the global market has led countries to “attempt to attract foreign businesses” by adopting “favourable fiscal regimes and deregulation of the labour market.” Second, the Pope claims that these reforms (i.e. adopting “favourable fiscal regimes and deregulation of the labour market”) have led to “a downsizing of social security systems” and “cuts in social spending.”

Continue reading

Principle of Subsidiarity Violated by ObamaCare

Rerum Novarum by Pope Leo XIII

The U.S. Conference of Catholic Bishops made a determined effort for universal health coverage, without abortion, in the run-up to the vote on ObamaCare.  In the end, due to the abortion language in this bill, they condemned it in its entirety.

Now I believe that our bishops had the best intentions of wanting universal health coverage, but this violates the principle of subsidiarity.

The Principle of Subsidiarity is the handling of affairs by small-scale, bottommost, or minutest government.

In 1891 Pope Leo XIII wrote an encyclical, Rerum Novarum, which said that government should undertake only those initiatives which exceed the capacity of individuals or private groups acting independently. Functions of government, business, and other secular activities should be as local as possible. If a complex function is carried out at a local level just as effectively as on the national level, the local level should be the one to carry out the specified function.

Private insurance agencies cover over 84% of all Americans, with an overwhelming 93% saying they are satisfied with their coverage.

And those that are uninsured, can get readily available treatment for a serious illness.  Including illegal aliens.

So why the bishops haste and aggressive posturing in pushing for something everybody already has and are satisfied with?

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