Posts Tagged growth

Long Live the Artificial: Newt Gingrich’s Anti-Bain Blather

Of all the warts Mitt Romney boasts on his big smelly toe, Newt Gingrich and others have decided to attack the one thing Romney has going for him: his business-leader experience in the private sector. (go here for the full scoop)

This week at Values & Capitalism, I offer my critique of the Gingrich(/Obama) view:

Note to Newt: I know we’d all like a 100% success rate, but high-risk investment doesn’t always pay off, and when it doesn’t, bad things happen. Businesses close, people lose their jobs and human suffering abounds. Oh yeah, and another thing: it’s not great for investment firms either.

When these companies failed under Romney’s watch, I doubt that Jolly Fat-Cat Mitt was grinning in his Doctor Claw Chair while stroking a snickering kitty. Anyone who understands anything about investment firms should understand that bad investments are, well, bad.

There’s plenty of basic economic idiocy here, not to mention nostrils-full of that all-too-familiar “pre-conversion” Gingrich stench (does “moldy baloney” capture it?). But throughout all the confused prattle—e.g. Newt’s forthcoming wanna-be Michael Moore project—I find myself haunted by a single, disturbing reality. Some people actually swallow this stuff.

The deeper issue in Gingrich’s thinking — other than his basic goal of political revenge, of course — is his apparent disdain for creative destruction and his implicit worship of the artificial.

More from my piece:

Most of [this] seems to involve an embrace of the artificial—a belief that prosperity can and should be manufactured from the top down and that successful entrepreneurship, innovation, and jobs(!!!!!!!—those are for you, Joe Biden) demand nothing more than Sugar Daddy U.S.A.’s material blessing.

Implicit in such an orientation is a belief that risk can somehow be avoided or subverted—that turning companies around is always possible, that the solution (if there is one) is always accessible/know-able, and that investments will always produce a profit (when all else fails, there’s subsidies…duh!). All you need is a warm and toasty heart and a propensity to use other people’s stuff to Read the rest of this entry »

, , , , , , , , , , , , , , , ,

3 Comments

Prophet Motive: Islam and Economic Growth

The Silk Merchant, Islam, painting, merchantsThis week at Common Sense Concept, I take a closer look at John Cassidy’s recent piece in The New Yorker on Islam and economic growth (“Prophet Motive”).

Cassidy’s piece provides a good overview of Islamic economic history (or, at least, one side of it). His eventual conclusion, however, does not exhibit the degree of critical curiosity that one would hope for. In the end, I think his approach is largely limiting to our discussions about the relationship between religion and economic growth.

According to Cassidy, we are not to analyze Islam itself as a religious belief system. Instead, we should focus on more “predictable” indicators of economic activity.

Here’s an excerpt:

[Cassidy points to] more “traditional methods” of analysis, such as focusing on “the way beliefs are codified and institutionalized,” rather than dwelling on theology, philosophy or moral doctrine (as Weber and Novak do). For Cassidy, the matters related to the religion itself —the “spiritual stuff” — are largely unreliable. To make real progress in analyzing religion and economic growth, Cassidy believes we should look toward firmer, more measureable developments in the politico-religious (e.g. usury laws, business partnership, limitations or inheritance practices, etc.).

I disagree with this view and think that religion is indeed a valid investigation tool.

Here’s my response:

If we are going to analyze the merits of a particular religion as it relates to an economy, it makes little sense to toss out the fundamental features that define religious institutions and set them apart from those in the socio-political realm.

Whether formally codified/institutionalized or not, our religious beliefs and convictions fundamentally transform our perceptions, and thus they largely impact our visions. Regardless of whether the specific religion, god, or authoritative text is actually true, Islam has just as much potential to instigate such an effect as Christianity.

To read the full post, click here.

Read the rest of this entry »

, , , , , , , , , , , , ,

2 Comments

A Romantic Boom and Bust: The Opportunity Costs of Love

Last week, I explored the degree of risk and uncertainty involved in pursuing God’s ultimate will for our lives. This week, Tho Bishop has a great piece at the Mises Institute that echoes these themes from the angle of earthly love.

Bishop’s primary goal is to show the parallels between Austrian business cycle theory and what he calls an “Austrian romance cycle,” focusing specifically on the element of time.

The comparison makes for quite an enjoyable read.

Here is the gist:

Romance starts with a first move. Just as Austrians understand that it is the role of the entrepreneur to shoulder the risk of capital investment in order to potentially achieve profit, we can understand that it is the role of an instigator to take the risk in the hope of finding romantic success. Without an entrepreneur, economic growth is unobtainable; without someone making a first move, romantic growth is unobtainable.

To demonstrate the similarities, Bishop provides a brief parable about a young romantic named Adam. In the beginning of the story, Adam is interested in investing in a new relationship, and like any good investor, he is trying desperately to convince certain women that he is “worth the risk.”

Becoming a bit impatient with the slow growth of his success, Adam begins to “stimulate” his love life in the same way a government might try to manipulate an economy: by faking it.

Adam has become frustrated by romantic failure. Fed up with his lack of success in romance, Adam begins to tell every girl who will listen that he saved orphans from the rampaging cannibals of Rojinda, climbed Mount Everest, and once out debated Ron Paul on the House floor. Adam has decided to manipulate his “interest rate.” All of a sudden Adam finds himself as the center of attention.

Behold! The impressive splendor and all-encompassing prosperity of the boom! Spending for the sake of Read the rest of this entry »

, , , , , , , , , , , , , ,

6 Comments

Q&A with Arthur Brooks: A Conversation about The Battle

Arthur BrooksThroughout the 1990s and 2000s, the term “culture war” was used to describe a variety of public moral conflicts. AEI’s Arthur Brooks sees a new fight taking place in today’s culture, but this time it’s not about guns, abortions, or gays.

This time it’s a battle over free enterprise.

Brooks, who is president of the American Enterprise Institute, successfully captures this struggle in his new book, The Battle: How the Fight Between Free Enterprise and Big Government will Shape America’s Future.

Brooks was kind enough to talk about The Battle with Remnant Culture in this one-on-one interview. I am confident his answers will sufficiently whet your appetite, but I also encourage you to read my highly favorable review if you’re interested in purchasing a copy.

Q: Your primary argument is that we are currently in the midst of a culture war between free enterprise and big government. Why do you see this as a cultural struggle?

The struggle between free enterprise and big government is not about which system is more efficient at producing goods or services. It’s about who we are as a people — about our beliefs and values. It shows what we think about things like fairness, initiative, self-reliance, and accountability. These aren’t economic terms. They’re “character” terms, expressions of culture. Free enterprise is the system that best accommodates these values and beliefs, and this makes the struggle against big government a cultural one. The fact that free enterprise also is the most efficient means of creating wealth and economic growth is a secondary consideration. Though not a bad one, at that.

Q: Explain the concept of the “70-30 Nation.

As I point out in The Battle, Americans are overwhelmingly in favor of free enterprise. No matter how pollsters frame the question, about 70 percent of us prefer free enterprise over big government. The other 30 percent are more inclined toward the statism and redistributionism of Europe’s social democracies. The “hard core” of the 30 percent is made up of the usual suspects — from the worlds of academia, the media, and entertainment industries. And most worryingly of all, it is comprised of a growing number of young people.

Q: If the 30 percent coalition currently holds the “moral high ground” on economic issues, why do they remain at a mere 30 percent of the population?

Well, as we saw in the 2008 elections, the 30 percent has the ability to expand into a majority, on occasion. It was the financial markets crisis that gave them the opportunity to do just that. They developed a “narrative” about what caused the crisis, who was to blame for the crisis, and how government would Read the rest of this entry »

, , , , , , , , , , , , , , , , , , , , , , , , , ,

8 Comments

Panera Goes Nonprofit: Losing Growth to Help the Needy

If you’ve ever thought that Panera Bread Co. was too pricey for soup and sandwiches, you now have an opportunity to voice your opinions more directly.

Panera has recently opened a nonprofit store that will allow customers to pay what they want for a meal, and there are already plans to open additional nonprofit stores in the near future.

As USA Today reports:

“While the store does have cashiers, they don’t collect money. They simply hand each customer a receipt that says what their food would cost at a conventional Panera. The receipt directs customers with cash to donation boxes (there are five in the store). Cashiers do accept credit cards.”

The first store is named St. Louis Bread Co. Cares, and according to the USA Today article, its proceeds will be used “to train at-risk youths or to feed folks lacking funds to feed themselves.”

Giving money to help those in need is a lofty goal, but isn’t Panera just acting as a middleman between individuals and their target of charity? As I’ve expressed elsewhere, wouldn’t it be more efficient if individuals just diverted their dollars directly to those in need? They could certainly maximize their Read the rest of this entry »

, , , , , , , , , , , , , , , , , , , , ,

9 Comments