Posts Tagged Nick Schulz
But although many see AT&T’s actions as “anti-competitive” in nature, I see no such thing. From where I stand, the acquisition has great potential to improve the company’s output, which could indeed benefit consumers and invigorate competition in the industry:
With a newly expanded network, AT&T could greatly improve its ability to expand service to rural areas. Due to increased economies of scale, it is likely that prices could decrease across the board. Additionally, although critics claim that the tightening of the market will have a negative impact on innovation, many believe it will raise the stakes (“mono y mono!”), leading to improvements on any number of company weak spots, from customer service to overall quality of service.
Yet whether the deal will be good or bad for (anyone’s) business is secondary; such matters remain debatable. The core issue, as I see it, rests in the mindset of those who adamantly oppose the deal on limited evidence, particularly those trying to prohibit it from happening altogether.
As I argue, the problems with such a mindset can be broken into three main areas: (1) a fear of competition itself, (2) a misunderstanding of the company-consumer relationship, and (3) a corresponding pessimism and all-around static view of human ingenuity and potential.
I expound on each, but regarding the third (and most important), here’s an excerpt:
Do we really believe that markets are that unmovable, or that we as innovators, explorers, and dreamers do not have what it takes to meet whatever challenges and needs may arise? Are we really so short-sighted that we Read the rest of this entry »
I have been reading David VanDrunen’s Living in God’s Two Kingdoms, which I received as part of a promotion by Matthew Lee Anderson. Although I still have a ways to go, I recently read one little piece about kingdom economics that I found particularly interesting.
While writing about the church’s “distinctive ethic” of generosity, VanDrunen says the following:
Anyone who has studied economics — the economics of the common kingdom — has learned the fundamental principle of scarcity. Though worldly wealth is not exactly a fixed quantity that creates a zero-sum game (there is much more worldly wealth now than there was a thousand years ago), there is truly only so much to go around. A certain sum of money will only satisfy a certain number of needs and desires. A piece of property cannot be enjoyed by everyone.
The explanation lies not in a complex theory worthy of a Nobel Prize economist, but in the mysterious, wonderful, economics-defying work of God. He “is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work” (2 Cor. 9:8). When the impoverished give generously, God makes them “enriched” in the experience (9:11). In part, this is about money, but only in part.
Then, VanDrunen offers this high-level summary of kingdom economics:
In the church there are no winners and losers, but every act of love is mutually enriching in Christ’s economics — an economics built not on the principle of scarcity but on the principle of extravagant Read the rest of this entry »
In today’s post at Common Sense Concept I provide a list of book recommendations for those who are doing any last-minute Christmas shopping or list-building. As far as the focus of the list, I offer five titles that proved influential in shaping my views on faith and free enterprise.
The five books are as follows:
- A Conflict of Visions: Ideological Origins of Political Struggles by Thomas Sowell
- The Virtue of Selfishness by Ayn Rand and Nathaniel Branden
- Who Really Cares: The Surprising Truth About Compassionate Conservatism by Arthur Brooks
- From Poverty to Prosperity: Intangible Assets, Hidden Liabilities, and the Lasting Triumph over Scarcity by Nick Schulz and Arnold Kling
- Free to Choose: A Personal Statement by Milton and Rose Friedman
As I note in the post, these titles are not (necessarily) religious: “Rather, [they] were extraordinarily valuable in steering my raw, Bible-based upbringing in the right direction when it came to economics.”
Christians love to talk about stewardship — about tending to the garden, being resourceful, and managing well. But we tend to shy away from God’s more specific call of dominion. This is understandable, because for many of us dominion implies some sort of aggressive or violent destruction.
Holcomb uses Genesis 1:26 as a starting point:
Then God said, “Let us make man in our image, after our likeness. And let them have dominion over the fish of the sea and over the birds of the heavens and over the livestock and over all the earth and over every creeping thing that creeps on the earth.”
The stereotypical “anti-greenie” view of this verse is framed aptly by Ann Coulter, who once interpreted Genesis 1:26 to mean, “Earth is yours. Take it. Rape it. It’s yours.” The obvious problem with this is that there is nothing productive (or moral) about “rape.” God does not view us as mere resources to exploit, and thus, we should not falter by viewing the rest of creation that way. In this verse, God is making us unique to the rest of creation by forming us in His image. By giving us this power, God is giving us a responsibility to recognize the value in His creation and leverage it appropriately.
As Francis Schaeffer explains (quoted by Holcomb):
Fallen man has dominion over nature, but he uses it wrongly. The Christian is called upon to exhibit this dominion, but exhibit it rightly: treating the thing as having value itself, exercising dominion without being destructive.
Holcomb goes on to say that viewing ourselves in God’s image means using Jesus as a primary example for how to dominate creation:
The lordship of Jesus should be our model for understanding how we relate to the natural order. This means that dominion should be expressed as service — sacrificial service of the others with and for whom we are responsible — rather than mastery.
I don’t disagree with this point, but I also don’t think Holcomb Read the rest of this entry »
Let’s say there’s an apple. I want to eat the apple and you want to eat the apple. Both of us can’t eat the same apple. We can divide it. We can determine who is more hungry. We can figure out who is willing to pay a greater price for it. We can find out who wants the core and who wants the seeds. But no matter how much we deliberate, we cannot share the apple in its entirety.
Economics used to be about how to distribute the apple most efficiently, but the world is changing. Although physical resources remain scarce, human innovation has flourished to the point where we can do much more with much less, and few have bothered to explain how or why.
Arnold Kling and Nick Schulz try to tackle this phenomenon in their new book, From Poverty to Prosperity: Intangible Assets, Hidden Liabilities and the Lasting Triumph over Scarcity. In the book, the authors try to grasp this new way of thinking by terming it Economics 2.0. Where Economics 1.0 saw the market as a means for allocating scarce resources (e.g. apples), Economics 2.0 sees the market as a mechanism for channeling innovation and triumphing over scarcity.
In the beginning of the book, the authors use laundry (of all things) to illustrate the difference. Economics 1.0 would try to explain how it might be more efficient for you to outsource your ironing to someone else. Economics 2.0, on the other hand, doesn’t look at the tangible items in the equation (the number of shirts, the cost of an iron, the cost of dry cleaning, etc.). Instead, Economics 2.0 is primarily concerned with the potential for innovation. For example, what about permanent press? What about wrinkle-free shirts?
As the authors explain:
Thanks to technical progress, many shirts today do not need to be ironed at all. Perhaps in another decade or two they will not need to be washed. Given the likely progress of nanotechnology, there is a good chance that shirts manufactured in 2020 will be ‘permanent clean.’ That’s Economics 2.0.
Another way to look at this is through what Kling and Schulz call the “software layer” of an economy. While Economics 1.0 is concerned with tangible inputs like labor and capital, Economics 2.0 is concerned with the intangible factors, such as collective intelligence, the existence of property rights, and levels of corruption. You can have all of the right hardware for a Read the rest of this entry »