Wintery Knight

…integrating Christian faith and knowledge in the public square

CBO report: Social Security to be bankrupt by 2030

From Investors Business Daily.

Full text, because this matters:

The $2.8 trillion Social Security Trust Fund is on track to be totally spent by 2030, the Congressional Budget Office said Tuesday.

That’s one year earlier than projected in 2013 and a decade earlier than the CBO estimated as recently as 2011.

The CBO delivered the warning in a gloomy long-term budget outlook that shows federal debt reaching 106% of GDP in 25 years, up from 74% now.

The rising debt would come despite revenue rising by 1.8 percent as share of GDP (from 17.6% to 19.4%)from 2014 to 2039 and despite spending other than health entitlements, Social Security and debt service shrinking by 2.5% of GDP (9.3% to 6.8%).

The challenge: Health care spending will rise by 3.1 percent of GDP (4.9% to 8%) and Social Security 1.4 points of GDP (4.9% to 6.3%), which will in turn push interest on the debt up to 4.7% of GDP from 1.3%.

Social Security’s cliff, now just 16 years away, is one that Washington would be crazy to approach. At that point, incoming revenue would be enough to pay less than 75% of scheduled benefits for all beneficiaries, whether just reaching retirement or 100 years old.

Up until the point of exhaustion, the trust fund provides legal authority — though no resources — for the government to pay all benefits despite Social Security’s burgeoning cash-flow deficit, which the CBO expects to reach $320 billion in 2024 alone.

The rapid deterioration in Social Security’s finances has a number of contributing factors. The drawn-out recovery from the deep recession and the extended period of low interest rates have sapped revenue and lowered the interest that Treasury pays to the trust fund based on program surpluses from 1984 to 2009.

On top of that, the CBO expects the underinvestment and long-term unemployment associated with the less-than-stellar recovery to have a lasting impact, boosting the natural rate of unemployment.

In February, the CBO significantly reined in its economic optimism, slashing its projection of the total amount of wages and salaries over the 2015-2023 period by about $3.2 trillion, or 3.6%.

Among the factors that the budget scorekeeper cited was ObamaCare’s work-diminishing effect, which the CBO now estimates to be three times as large as it supposed in 2010.

The CBO said that ObamaCare would reduce employment by 2 million full-time-equivalent workers in 2017, rising to 2.5 million in 2014.

This reduction would result in a decline in aggregate employee compensation averaging 1% from 2017 through 2024, or $1.05 trillion.

An IBD analysis pegged the revenue hit to Social Security from ObamaCare work disincentives at about $120 billion through 2024.

The reduced payroll-tax contributions into Social Security would, over time, result in modestly lower benefits for those who choose less work, but the cost savings from reduced benefits would offset only a portion of the lost revenue.

The nature of Affordable Care Act subsidies — they rise as income falls and decline as income rises — will make work “less attractive” by “creating an implicit tax on additional earnings,” the CBO said.

The work disincentive will lead some people to choose to work less, in part because subsidized health care will enable them to get by with less work.

In addition, the CBO expects ObamaCare to depress wages for lower earners when employers, over time, pass along the cost of the law’s employer-insurance mandate by holding back on wage increases. Lower wages, in turn, will provide another reason for some people to opt for less work, the CBO says.

While the CBO expects compensation to be lower “almost entirely” because people will choose to supply less work, the CBO also expects that some employers “will respond to the penalty by hiring fewer people at or just above the minimum wage.”

Another important factor clouding Social Security’s future: A greater share of earnings goes to those with income above the maximum subject to payroll taxes ($117,000 in 2014).

As a result, while rising longevity and the retirement of baby boomers will make benefits grow faster than the economy, Social Security’s tax revenue is expected only to keep pace with economic growth.

Look. I think there’s practical wisdom in this CBO report for Christians. We have to take into account data like this when making our life plans. And it’s not only Social Security we need to be scared of, Medicare is even MORE insolvent than Social Security. If you are under 40, these programs are not going to be there for you. You have to make other plans. You can’t be running your life plan as if these threats do not exist, because they do. Now I want to talk about how a defensive plan can be better than an offensive plan.

The neutral zone trap

Think of ice hockey and the neutral zone trap defense:

The defending team sets up so four players-usually both wings and both defense-remain in the neutral zone, while the center forechecks into the offensive zone. The center’s job is to block the passing lanes from the puck carrier, forcing him to carry the puck forward into the neutral zone. Once the puck carrier reaches the neutral zone, the center stays toward the center of the ice, forcing the puck carrier along the boards. Two of the other defending team’s players collapse in on the puck carrier, forcing him to dump the puck into their zone, forcing a turnover.

This plan allowed the New Jersey Devils to win the Stanley Cup against the high-powered Detroit Red Wings in 1995:

The following season, shortened by 34 games because of a lockout ordered by NHL owners, the Devils entered the playoffs as the No. 8 seed in the conference, with only a 22-18-8 record. In the West, the Detroit Red Wings looked invincible, cruising to the Stanley Cup Finals behind a galaxy of offensive stars.

But that’s when Lemaire went to work, putting his Devils through daily lessons in the trap, preaching constantly about being in the right defensive position at all times. It was hard, but it worked. The Devils upset three higher seeded Eastern teams to get to the Stanley Cup Finals, but remained prohibitive underdogs against the Red Wings.

Many predicted a sweep – and that’s what happened. What nobody predicted was that it would be the Devils who did the sweeping, thanks to a stifling trap that limited Detroit to seven goals in four games.

“They frustrated the heck out of us,” former Red Wings defenseman Mike Ramsey told the St. Paul (Minn.) Pioneer Press. “You weren’t trying to beat one guy. You were trying to beat four. They had enough talent and size where they didn’t have to play that way. But they knew what they were doing. Every player was on the same page.”

When coaches across the NHL saw how Lemaire was able to totally shut down such a great offensive team, the trap began to be copied by almost everyone. Roger Neilson had implemented a form of the trap with the expansion Florida Panthers from 1993-95, and his successor, Doug MacLean, took it even further. The neutral zone became almost impossible to navigate against the Panthers in the 1996 playoffs, and Florida suddenly found itself in the Stanley Cup Finals against the offensive-minded Avalanche. Criticized by the media about the trap, MacLean responded, “I like boring”.

Yes, and he likes winning,too. Sometimes people who appear to be risk-averse seem “scared” to others… but what matters is the scoreboard.

I hate to see young people making life plans while ignoring real life obstacles. The national debt, the demographic crisis, fertility (for women), etc. are real problems. Let’s take these threats into account when we are planning our lives. It’s just unwise to think that we can do whatever we want and then count on God to bail us out. We need to be practical. We live in challenging times, and we need to have prosperity and stability in order to protect our faith from external threats which are so often the root of despair and apostasy. The score on the scoreboard is not related to who took the biggest chances and felt the most excitement, it’s related to who actually scored. I feel excited when I win.

Filed under: News, , , , , , , , , ,

Video, audio and summary: Jim Wallis debates Jay Richards on Christianity and economics

I had to re-post this post again because Facebook decided to mark it as SPAM. This is the same post I put out 4 hours ago.

The video recording:

  • The organizers of the debate tell me that the video will be posted shortly after the debate, and I will link to it in this very post.

The audio recording:

The debaters

Jay Richards:

Jay Richards, Ph.D., is a Senior Fellow of the Discovery Institute where he directs the Center on Wealth, Poverty and Morality, and is a Visiting Scholar at the Institute for Faith, Work & Economics. Most recently he is the co-author with James Robison of the best-selling Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late”.

In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he recently edited the new award winning anthology, God & Evolution: Protestants, Catholics and Jews Explore Darwin’s Challenge to Faith . His previous book was Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem (HarperOne, May 2009), for which he received a Templeton Enterprise Award in 2010.

[...]In recent years, he has been a Contributing Editor of The American at the American Enterprise Institute, a Visiting Fellow at the Heritage Foundation, and a Research Fellow and Director of Acton Media at the Acton Institute. Richards has a B.A. with majors in Political Science and Religion, an M.Div. (Master of Divinity) and a Th.M. (Master of Theology), and a Ph.D. (with honors) in philosophy and theology from Princeton Theological Seminary.

Jim Wallis:

Jim Wallis (born June 4, 1948) is a Christian writer and political activist. He is best known as the founder and editor of Sojourners magazine and as the founder of the Washington, D.C.-based Christian community of the same name. Wallis is well known for his advocacy on issues of peace and social justice. Although Wallis actively eschews political labels, he describes himself as an evangelical and is often associated with the evangelical left and the wider Christian left. He works as a spiritual advisor to President Barack Obama. He is married to the Rev. Joy Carroll, who was one of the first female priests in the Church of England. He is also a leader in the Red-Letter Christian movement.

[...]In 2010, Wallis admitted to accepting money for Sojourners from philanthropist George Soros after initially denying having done so. When conservative writer Marvin Olasky pointed this out, and that Soros also financed groups supporting abortion, atheism, and same-sex marriage, in a WORLD magazine column, Wallis said Olasky “lies for a living”; he subsequently apologized to Olasky for the comments. In 2011, Wallis acknowledged that Sojourners had received another $150,000.00 from Soros’ Open Society Foundation.

[...]In regard to the 2011 United States budget proposal, Wallis described Congressman Paul Ryan and his congressional allies as “bullies” and “hypocrites.”

Wallis just came out this month in favor of gay marriage. He is also a strong supporter of Barack Obama, who is radically pro-abortion. Some pro-lifers have argued that Barack Obama has the same views on abortion as Kermit Gosnell.

The format of the debate

  • 20 minute opening speeches
  • 10 minute rebuttals
  • 10 minutes of discussion
  • Q&A for the remainder

SUMMARY

I use italics below to denote my own observations.

Jim Wallis’ opening speech:

My goal is to spark a national conversation on the “common good”.

A story about my son who plays baseball.

The central goal of Christianity is to promote the “common good”.

Quotes “Catholic social teaching” which values “human flourishing”.

The “common good” is “human flourishing”.

Is the purpose of Christianity is to make sure that everyone has enough material stuff or to preach the gospel?

When Christians go on mission trips, it’s good that they focus on things like human trafficking.

Democrat John Lewis is the “conscience of the U.S. Congress”.

John Lewis gets a 0% rating from the American Conservative Union in 2012.

John Lewis gets a 8% rating from the American Conservative Union in 2011.

John Lewis gets a 2.29% lifetime rating from the American Conservative Union.

Nothing is going well in Washington right now except comprehensive immigration reform.

Does he think that Christianity means giving 12-20 million illegal immigrants a path to citizenship, while skilled engineers cannot even get green cards, even though there is a shortage of them? Does he think that the other people in society who earn more than they receive from the government ought to be taxed more in order to provide more services and benefits to those who earn less than they take from the government?

Jay Richards’ opening speech:

Two topics: 1) what is the common good? 2) what should Christians do to promote the common good?

Catholicism defines the “common good” as “Indeed, the common good embraces the sum of those conditions of the social life whereby men, families and associations more adequately and readily may attain their own perfection.”

We have natural ends that we are supposed to be achieving and some places, like South Korea, are better for allowing that to happen.

The common good is broader and prior to any sort of political specification.

It’s not the political good or what the state is supposed to do.

It’s not about the communal good, as in Soviet Russia, where the communal good was above individual and familial good.

The common good is the social conditions that promote the things that we humans have in common as individuals and members of family.

The common good takes account of who we are as individuals and in associations with other individuals, e.g. – families.

Christians don’t have to be doing the same things to promote the common good, e.g. – pastors, entrepreneurs, etc.

The church, as the church, has as its primary goal making disciples of all nations.

But even in that capacity, the church should be interested in more than just conversions and saving souls.

We also have to care about God’s created reality including things like physics, education, etc.

How should Christians promote the common good in politics?

Question: when is coercion warranted?

In Romans 13, Paul says that the state does have power to coerce to achieve certain ends, like justice.

Most Christians think that there are some things where the state can use coercion, for example, to prevent/punish murder.

It is OK for the police to use coercive force to maintain public order and the rule of law.

But we need to ask whether other things are legitimate areas for the state to use coercive force.

We should only give the state power to coerce when there is no other way to achieve a goal.

We need to leverage the science of economics in order to know how to achieve the common good.

Jay Richards' main point in the debate

Jay Richards’ main point in the debate

Henry Hazlitt: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example, what happens if we raise the federal minimum wage to $50. What happens next for all groups? That’s what we need to ask in order to know which policies achieve the common good.

When it comes to economics a lot of things have been tried in other places and times.

We can know what works and doesn’t work by studying what was tried before and in other places.

Many things are counter-intuitive – things that sound good don’t work, things that sound bad do work.

Principle: “We are our brother’s keeper”. Christians have an obligation to care for their neighbors.

We all agree on the goal. But how do we do things that will achieve that goal?

We have to distinguish aspirations from principles and prudential judgment.

Principle: We should provide for the material needs of the poor.

Prudence: Seeing the world as it is, and acting accordingly.

Example policies: which minimum wage is best? None? $10? $20?

We decide based on seeing how different economic policies achieve the goal of helping the poor.

Jim Wallis’ first rebuttal:

Jesus commanded us to “care for the poor and help to end poverty”.

Actually, Jesus thought that acknowledging him and giving him sacrificial worship was more important than giving money to the poor, see Matthew 26:6-13:

While Jesus was in Bethany in the home of Simon the Leper, 

a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.

When the disciples saw this, they were indignant. “Why this waste?” they asked. 

“This perfume could have been sold at a high price and the money given to the poor.”

10 Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. 

11 The poor you will always have with you, but you will not always have me. 

12 When she poured this perfume on my body, she did it to prepare me for burial. 

13 Truly I tell you, wherever this gospel is preached throughout the world, what she has done will also be told, in memory of her.”

It’s not clear to me whether Jim Wallis thinks that preaching is more important than redistributing wealth to address material inequality.

I like what Jesus said in a TV series, even though it’s not in the Bible when an actor playing Jesus said to “change the world”.

Jesus never said to “change the world” in the Bible. Should we be concerned that he is quoting a TV actor playing Jesus instead of Jesus.

Here is a terrific story about Bill Bright.

I love Catholic social teaching.

Quote: “All are responsible for all”.

I go to the World Economic Forum at Davos, Switzerland every year. I spoke once at 7 AM on the 4th floor.

It’s a funny place for a Christian to be if they care about the poor – rubbing shoulders with leftist elites. He must have named a dozen high-profile people that he spoke with during the debate, as if he could win the debate by some sort of argument from name-dropping. He mentioned the Davos thing several times!

The greatest beneficiary of government actions to deal with the economic crisis was Wall Street banks.

I’m going to tell you a story about what a Washington lawyer says to Jesus.

I’ve had conversations with business leaders where I tell them to integrate moral truths.

I talk about the Good Samaritan parable.

Quote: “Do you love your undocumented neighbor?”

Quote: “Do you love your Muslim neighbor?”

Jay Richards’ first rebuttal:

Who is responsible for your own children? Who knows the most about them?

Parents should have more discretion over their children because they have more knowledge about their child and what’s best for them.

The Good Samaritan doesn’t show that government should confiscate wealth through taxation and redistribute it.

The Good Samaritan emphasizes voluntarily charity to help people who are not necessarily your immediate neighbor.

Some of the things we do should be for the good of other people in other countries.

But then we are back to leveraging economics to know what policies are good for those other people in other countries.

The principle of subsidiarity: if a problem can be addressed by a lower level of society (family) then we shouldn’t make higher levels (government) address it.

The best place to take care of children is within the family.

Only if the family fails should wider and wider spheres get involved.

Although we want to think of the common good in a global sense, we don’t want to lose sight of the fact

The financial crisis: we need to integrate moral truths, but also economic truths.

We don’t want to assume policies based on intuitions, we want to check our intuitions using economic principles.

Why did we have a financial crisis in mortgages, but not in commodities futures or technology, etc.?

Greed is a contributing factor in all areas of business.

Something more was going on in the mortgage markets than just greed.

There were specific policies that caused the mortgage lending crisis.

The root cause of the problem were “affordable housing policies” that lowered lending restrictions on low income people.

The policy ended up degrading the underwriting standards on loans.

Government intruded into the market and undermined the normal ways of

People were getting massive loans with no income, no jobs, no assets and no down payment.

The federal government created a market for risk loans by guaranteeing

There was a government imposed quota on mortgage lenders such that 50% of their loans had to be given to high-risk borrowers.

That is what led to the financial crisis. Not the free market, but intrusions into the free market.

These policies were well-meaning and implemented by people from both parties. But they had bad effects.

Filed under: Podcasts, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Video, audio and summary: Jim Wallis debates Jay Richards on Christianity and the common good

I had to re-post this post again because Facebook decided to mark it as SPAM. This is the same post I put out 4 hours ago.

The video recording:

  • The organizers of the debate tell me that the video will be posted shortly after the debate, and I will link to it in this very post.

The audio recording:

The debaters

Jay Richards:

Jay Richards, Ph.D., is a Senior Fellow of the Discovery Institute where he directs the Center on Wealth, Poverty and Morality, and is a Visiting Scholar at the Institute for Faith, Work & Economics. Most recently he is the co-author with James Robison of the best-selling Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late”.

In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he recently edited the new award winning anthology, God & Evolution: Protestants, Catholics and Jews Explore Darwin’s Challenge to Faith . His previous book was Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem (HarperOne, May 2009), for which he received a Templeton Enterprise Award in 2010.

[...]In recent years, he has been a Contributing Editor of The American at the American Enterprise Institute, a Visiting Fellow at the Heritage Foundation, and a Research Fellow and Director of Acton Media at the Acton Institute. Richards has a B.A. with majors in Political Science and Religion, an M.Div. (Master of Divinity) and a Th.M. (Master of Theology), and a Ph.D. (with honors) in philosophy and theology from Princeton Theological Seminary.

Jim Wallis:

Jim Wallis (born June 4, 1948) is a Christian writer and political activist. He is best known as the founder and editor of Sojourners magazine and as the founder of the Washington, D.C.-based Christian community of the same name. Wallis is well known for his advocacy on issues of peace and social justice. Although Wallis actively eschews political labels, he describes himself as an evangelical and is often associated with the evangelical left and the wider Christian left. He works as a spiritual advisor to President Barack Obama. He is married to the Rev. Joy Carroll, who was one of the first female priests in the Church of England. He is also a leader in the Red-Letter Christian movement.

[...]In 2010, Wallis admitted to accepting money for Sojourners from philanthropist George Soros after initially denying having done so. When conservative writer Marvin Olasky pointed this out, and that Soros also financed groups supporting abortion, atheism, and same-sex marriage, in a WORLD magazine column, Wallis said Olasky “lies for a living”; he subsequently apologized to Olasky for the comments. In 2011, Wallis acknowledged that Sojourners had received another $150,000.00 from Soros’ Open Society Foundation.

[...]In regard to the 2011 United States budget proposal, Wallis described Congressman Paul Ryan and his congressional allies as “bullies” and “hypocrites.”

Wallis just came out this month in favor of gay marriage. He is also a strong supporter of Barack Obama, who is radically pro-abortion. Some pro-lifers have argued that Barack Obama has the same views on abortion as Kermit Gosnell.

The format of the debate

  • 20 minute opening speeches
  • 10 minute rebuttals
  • 10 minutes of discussion
  • Q&A for the remainder

SUMMARY

I use italics below to denote my own observations.

Jim Wallis’ opening speech:

My goal is to spark a national conversation on the “common good”.

A story about my son who plays baseball.

The central goal of Christianity is to promote the “common good”.

Quotes “Catholic social teaching” which values “human flourishing”.

The “common good” is “human flourishing”.

Is the purpose of Christianity is to make sure that everyone has enough material stuff or to preach the gospel?

When Christians go on mission trips, it’s good that they focus on things like human trafficking.

Democrat John Lewis is the “conscience of the U.S. Congress”.

John Lewis gets a 0% rating from the American Conservative Union in 2012.

John Lewis gets a 8% rating from the American Conservative Union in 2011.

John Lewis gets a 2.29% lifetime rating from the American Conservative Union.

Nothing is going well in Washington right now except comprehensive immigration reform.

Does he think that Christianity means giving 12-20 million illegal immigrants a path to citizenship, while skilled engineers cannot even get green cards, even though there is a shortage of them? Does he think that the other people in society who earn more than they receive from the government ought to be taxed more in order to provide more services and benefits to those who earn less than they take from the government?

Jay Richards’ opening speech:

Two topics: 1) what is the common good? 2) what should Christians do to promote the common good?

Catholicism defines the “common good” as “Indeed, the common good embraces the sum of those conditions of the social life whereby men, families and associations more adequately and readily may attain their own perfection.”

We have natural ends that we are supposed to be achieving and some places, like South Korea, are better for allowing that to happen.

The common good is broader and prior to any sort of political specification.

It’s not the political good or what the state is supposed to do.

It’s not about the communal good, as in Soviet Russia, where the communal good was above individual and familial good.

The common good is the social conditions that promote the things that we humans have in common as individuals and members of family.

The common good takes account of who we are as individuals and in associations with other individuals, e.g. – families.

Christians don’t have to be doing the same things to promote the common good, e.g. – pastors, entrepreneurs, etc.

The church, as the church, has as its primary goal making disciples of all nations.

But even in that capacity, the church should be interested in more than just conversions and saving souls.

We also have to care about God’s created reality including things like physics, education, etc.

How should Christians promote the common good in politics?

Question: when is coercion warranted?

In Romans 13, Paul says that the state does have power to coerce to achieve certain ends, like justice.

Most Christians think that there are some things where the state can use coercion, for example, to prevent/punish murder.

It is OK for the police to use coercive force to maintain public order and the rule of law.

But we need to ask whether other things are legitimate areas for the state to use coercive force.

We should only give the state power to coerce when there is no other way to achieve a goal.

We need to leverage the science of economics in order to know how to achieve the common good.

Jay Richards' main point in the debate

Jay Richards’ main point in the debate

Henry Hazlitt: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example, what happens if we raise the federal minimum wage to $50. What happens next for all groups? That’s what we need to ask in order to know which policies achieve the common good.

When it comes to economics a lot of things have been tried in other places and times.

We can know what works and doesn’t work by studying what was tried before and in other places.

Many things are counter-intuitive – things that sound good don’t work, things that sound bad do work.

Principle: “We are our brother’s keeper”. Christians have an obligation to care for their neighbors.

We all agree on the goal. But how do we do things that will achieve that goal?

We have to distinguish aspirations from principles and prudential judgment.

Principle: We should provide for the material needs of the poor.

Prudence: Seeing the world as it is, and acting accordingly.

Example policies: which minimum wage is best? None? $10? $20?

We decide based on seeing how different economic policies achieve the goal of helping the poor.

Jim Wallis’ first rebuttal:

Jesus commanded us to “care for the poor and help to end poverty”.

Actually, Jesus thought that acknowledging him and giving him sacrificial worship was more important than giving money to the poor, see Matthew 26:6-13:

While Jesus was in Bethany in the home of Simon the Leper, 

a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.

When the disciples saw this, they were indignant. “Why this waste?” they asked. 

“This perfume could have been sold at a high price and the money given to the poor.”

10 Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. 

11 The poor you will always have with you, but you will not always have me. 

12 When she poured this perfume on my body, she did it to prepare me for burial. 

13 Truly I tell you, wherever this gospel is preached throughout the world, what she has done will also be told, in memory of her.”

It’s not clear to me whether Jim Wallis thinks that preaching is more important than redistributing wealth to address material inequality.

I like what Jesus said in a TV series, even though it’s not in the Bible when an actor playing Jesus said to “change the world”.

Jesus never said to “change the world” in the Bible. Should we be concerned that he is quoting a TV actor playing Jesus instead of Jesus.

Here is a terrific story about Bill Bright.

I love Catholic social teaching.

Quote: “All are responsible for all”.

I go to the World Economic Forum at Davos, Switzerland every year. I spoke once at 7 AM on the 4th floor.

It’s a funny place for a Christian to be if they care about the poor – rubbing shoulders with leftist elites. He must have named a dozen high-profile people that he spoke with during the debate, as if he could win the debate by some sort of argument from name-dropping. He mentioned the Davos thing several times!

The greatest beneficiary of government actions to deal with the economic crisis was Wall Street banks.

I’m going to tell you a story about what a Washington lawyer says to Jesus.

I’ve had conversations with business leaders where I tell them to integrate moral truths.

I talk about the Good Samaritan parable.

Quote: “Do you love your undocumented neighbor?”

Quote: “Do you love your Muslim neighbor?”

Jay Richards’ first rebuttal:

Who is responsible for your own children? Who knows the most about them?

Parents should have more discretion over their children because they have more knowledge about their child and what’s best for them.

The Good Samaritan doesn’t show that government should confiscate wealth through taxation and redistribute it.

The Good Samaritan emphasizes voluntarily charity to help people who are not necessarily your immediate neighbor.

Some of the things we do should be for the good of other people in other countries.

But then we are back to leveraging economics to know what policies are good for those other people in other countries.

The principle of subsidiarity: if a problem can be addressed by a lower level of society (family) then we shouldn’t make higher levels (government) address it.

The best place to take care of children is within the family.

Only if the family fails should wider and wider spheres get involved.

Although we want to think of the common good in a global sense, we don’t want to lose sight of the fact

The financial crisis: we need to integrate moral truths, but also economic truths.

We don’t want to assume policies based on intuitions, we want to check our intuitions using economic principles.

Why did we have a financial crisis in mortgages, but not in commodities futures or technology, etc.?

Greed is a contributing factor in all areas of business.

Something more was going on in the mortgage markets than just greed.

There were specific policies that caused the mortgage lending crisis.

The root cause of the problem were “affordable housing policies” that lowered lending restrictions on low income people.

The policy ended up degrading the underwriting standards on loans.

Government intruded into the market and undermined the normal ways of

People were getting massive loans with no income, no jobs, no assets and no down payment.

The federal government created a market for risk loans by guaranteeing

There was a government imposed quota on mortgage lenders such that 50% of their loans had to be given to high-risk borrowers.

That is what led to the financial crisis. Not the free market, but intrusions into the free market.

These policies were well-meaning and implemented by people from both parties. But they had bad effects.

Filed under: Podcasts, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Video, audio and summary: Jay Richards and Jim Wallis debate Christianity and the common good

Note: if you are having trouble liking this page on Facebook or sharing it on Twitter, please click here for an updated one that is shareable. Something went wrong in Facebook and they’ve marked this post as spam! But the new one is fine for sharing.

The video recording:

  • The organizers of the debate tell me that the video will be posted shortly after the debate, and I will link to it in this very post.

The audio recording:

The debaters

Jay Richards:

Jay Richards, Ph.D., is a Senior Fellow of the Discovery Institute where he directs the Center on Wealth, Poverty and Morality, and is a Visiting Scholar at the Institute for Faith, Work & Economics. Most recently he is the co-author with James Robison of the best-selling Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late”.

In addition to writing many academic articles, books, and popular essays on a wide variety of subjects, he recently edited the new award winning anthology, God & Evolution: Protestants, Catholics and Jews Explore Darwin’s Challenge to Faith . His previous book was Money, Greed, and God: Why Capitalism Is the Solution and Not the Problem (HarperOne, May 2009), for which he received a Templeton Enterprise Award in 2010.

[...]In recent years, he has been a Contributing Editor of The American at the American Enterprise Institute, a Visiting Fellow at the Heritage Foundation, and a Research Fellow and Director of Acton Media at the Acton Institute. Richards has a B.A. with majors in Political Science and Religion, an M.Div. (Master of Divinity) and a Th.M. (Master of Theology), and a Ph.D. (with honors) in philosophy and theology from Princeton Theological Seminary.

Jim Wallis:

Jim Wallis (born June 4, 1948) is a Christian writer and political activist. He is best known as the founder and editor of Sojourners magazine and as the founder of the Washington, D.C.-based Christian community of the same name. Wallis is well known for his advocacy on issues of peace and social justice. Although Wallis actively eschews political labels, he describes himself as an evangelical and is often associated with the evangelical left and the wider Christian left. He works as a spiritual advisor to President Barack Obama. He is married to the Rev. Joy Carroll, who was one of the first female priests in the Church of England. He is also a leader in the Red-Letter Christian movement.

[...]In 2010, Wallis admitted to accepting money for Sojourners from philanthropist George Soros after initially denying having done so. When conservative writer Marvin Olasky pointed this out, and that Soros also financed groups supporting abortion, atheism, and same-sex marriage, in a WORLD magazine column, Wallis said Olasky “lies for a living”; he subsequently apologized to Olasky for the comments. In 2011, Wallis acknowledged that Sojourners had received another $150,000.00 from Soros’ Open Society Foundation.

[...]In regard to the 2011 United States budget proposal, Wallis described Congressman Paul Ryan and his congressional allies as “bullies” and “hypocrites.”

Wallis just came out this month in favor of gay marriage. He is also a strong supporter of Barack Obama, who is radically pro-abortion, according to Planned Parenthood. Some pro-lifers have argued that Barack Obama has the same views on abortion as Kermit Gosnell, who is currently on trial for murdering born babies.

The format of the debate

  • 20 minute opening speeches
  • 10 minute rebuttals
  • 10 minutes of discussion
  • Q&A for the remainder

SUMMARY

I use italics below to denote my own observations.

Jim Wallis’ opening speech:

My goal is to spark a national conversation on the “common good”.

A story about my son who plays baseball.

The central goal of Christianity is to promote the “common good”.

Quotes “Catholic social teaching” which values “human flourishing”.

The “common good” is “human flourishing”.

Is the purpose of Christianity is to make sure that everyone has enough material stuff or to preach the gospel?

When Christians go on mission trips, it’s good that they focus on things like human trafficking.

Democrat John Lewis is the “conscience of the U.S. Congress”.

John Lewis gets a 0% rating from the American Conservative Union in 2012.

John Lewis gets a 8% rating from the American Conservative Union in 2011.

John Lewis gets a 2.29% lifetime rating from the American Conservative Union.

Nothing is going well in Washington right now except comprehensive immigration reform.

Does he think that Christianity means giving 12-20 million illegal immigrants a path to citizenship, while skilled engineers cannot even get green cards, even though there is a shortage of them? Does he think that the other people in society who earn more than they receive from the government ought to be taxed more in order to provide more services and benefits to those who earn less than they take from the government?

Jay Richards’ opening speech:

Two topics: 1) what is the common good? 2) what should Christians do to promote the common good?

Catholicism defines the “common good” as “Indeed, the common good embraces the sum of those conditions of the social life whereby men, families and associations more adequately and readily may attain their own perfection.” (Source)

We have natural ends that we are supposed to be achieving and some places, like South Korea, are better for allowing that to happen.

The common good is broader and prior to any sort of political specification.

It’s not the political good or what the state is supposed to do.

It’s not about the communal good, as in Soviet Russia, where the communal good was above individual and familial good.

The common good is the social conditions that promote the things that we humans have in common as individuals and members of family.

The common good takes account of who we are as individuals and in associations with other individuals, e.g. – families.

Christians don’t have to be doing the same things to promote the common good, e.g. – pastors, entrepreneurs, etc.

The church, as the church, has as its primary goal making disciples of all nations.

But even in that capacity, the church should be interested in more than just conversions and saving souls.

We also have to care about God’s created reality including things like physics, education, etc.

How should Christians promote the common good in politics?

Question: when is coercion warranted?

In Romans 13, Paul says that the state does have power to coerce to achieve certain ends, like justice.

Most Christians think that there are some things where the state can use coercion, for example, to prevent/punish murder.

It is OK for the police to use coercive force to maintain public order and the rule of law.

But we need to ask whether other things are legitimate areas for the state to use coercive force.

We should only give the state power to coerce when there is no other way to achieve a goal.

We need to leverage the science of economics in order to know how to achieve the common good.

Jay Richards' main point in the debate

Jay Richards’ main point in the debate

Henry Hazlitt: “The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”

For example, what happens if we raise the federal minimum wage to $50. What happens next for all groups? That’s what we need to ask in order to know which policies achieve the common good.

When it comes to economics a lot of things have been tried in other places and times.

We can know what works and doesn’t work by studying what was tried before and in other places.

Many things are counter-intuitive – things that sound good don’t work, things that sound bad do work.

Principle: “We are our brother’s keeper”. Christians have an obligation to care for their neighbors.

We all agree on the goal. But how do we do things that will achieve that goal?

We have to distinguish aspirations from principles and prudential judgment.

Principle: We should provide for the material needs of the poor.

Prudence: Seeing the world as it is, and acting accordingly.

Example policies: which minimum wage is best? None? $10? $20?

We decide based on seeing how different economic policies achieve the goal of helping the poor.

Jim Wallis’ first rebuttal:

Jesus commanded us to “care for the poor and help to end poverty”.

Actually, Jesus thought that acknowledging him and giving him sacrificial worship was more important than giving money to the poor, see Matthew 26:6-13:

While Jesus was in Bethany in the home of Simon the Leper, 

a woman came to him with an alabaster jar of very expensive perfume, which she poured on his head as he was reclining at the table.

When the disciples saw this, they were indignant. “Why this waste?” they asked. 

“This perfume could have been sold at a high price and the money given to the poor.”

10 Aware of this, Jesus said to them, “Why are you bothering this woman? She has done a beautiful thing to me. 

11 The poor you will always have with you, but you will not always have me. 

12 When she poured this perfume on my body, she did it to prepare me for burial. 

13 Truly I tell you, wherever this gospel is preached throughout the world, what she has done will also be told, in memory of her.”

It’s not clear to me whether Jim Wallis thinks that preaching is more important than redistributing wealth to address material inequality.

I like what Jesus said in a TV series, even though it’s not in the Bible when an actor playing Jesus said to “change the world”.

Jesus never said to “change the world” in the Bible. Should we be concerned that he is quoting a TV actor playing Jesus instead of Jesus.

Here is a terrific story about Bill Bright.

I love Catholic social teaching.

Quote: “All are responsible for all”.

I go to the World Economic Forum at Davos, Switzerland every year. I spoke once at 7 AM on the 4th floor.

It’s a funny place for a Christian to be if they care about the poor – rubbing shoulders with leftist elites. He must have named a dozen high-profile people that he spoke with during the debate, as if he could win the debate by some sort of argument from name-dropping. He mentioned the Davos thing several times!

The greatest beneficiary of government actions to deal with the economic crisis was Wall Street banks.

And Wall Street bankers are huge supporters of Barack Obama for exactly that reason.

I’m going to tell you a story about what a Washington lawyer says to Jesus.

I’ve had conversations with business leaders where I tell them to integrate moral truths.

I talk about the Good Samaritan parable.

Quote: “Do you love your undocumented neighbor?”

Quote: “Do you love your Muslim neighbor?”

Jay Richards’ first rebuttal:

Who is responsible for your own children? Who knows the most about them?

Parents should have more discretion over their children because they have more knowledge about their child and what’s best for them.

The Good Samaritan doesn’t show that government should confiscate wealth through taxation and redistribute it.

The Good Samaritan emphasizes voluntarily charity to help people who are not necessarily your immediate neighbor.

Some of the things we do should be for the good of other people in other countries.

But then we are back to leveraging economics to know what policies are good for those other people in other countries.

The principle of subsidiarity: if a problem can be addressed by a lower level of society (family) then we shouldn’t make higher levels (government) address it.

The best place to take care of children is within the family.

Only if the family fails should wider and wider spheres get involved.

Although we want to think of the common good in a global sense, we don’t want to lose sight of the fact

The financial crisis: we need to integrate moral truths, but also economic truths.

We don’t want to assume policies based on intuitions, we want to check our intuitions using economic principles.

Why did we have a financial crisis in mortgages, but not in commodities futures or technology, etc.?

Greed is a contributing factor in all areas of business.

Something more was going on in the mortgage markets than just greed.

There were specific policies that caused the mortgage lending crisis.

The root cause of the problem were “affordable housing policies” that lowered lending restrictions on low income people.

The policy ended up degrading the underwriting standards on loans.

Government intruded into the market and undermined the normal ways of

People were getting massive loans with no income, no jobs, no assets and no down payment.

The federal government created a market for risk loans by guaranteeing

There was a government imposed quota on mortgage lenders such that 50% of their loans had to be given to high-risk borrowers.

That is what led to the financial crisis. Not the free market, but intrusions into the free market.

These policies were well-meaning and implemented by people from both parties. But they had bad effects.

Filed under: News, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Real unemployment rate for youth is 22.9%

I found an article  from the Wall Street Journal via Lonely Conservative in Captain Capitalism’s latest round-up .

Excerpt:

When the recession began in December, 2007, 59.2% of the under-25 population was in the labor force, meaning they were either working or looking for work. Today, that figure has fallen to 54.5%. That may not sound like a big drop, but it makes a huge difference. If the so-called participation rate had remained unchanged, there would be 1.8 million more young people in the labor force today than there actually are. Counting those people as unemployed, rather than out of the labor force, would push the unemployment rate up to 22.9%. That’s only a hair better than the 23.9% youth unemployment rate in the euro zone, and has shown only very modest improvement during the recovery.

The decline in the participation rate among the young can’t all be attributed to the recession. Labor force participation among young people peaked at just under 70% in 1989, and has trended downward ever since, primarily due to rising rates of college attendance.

The decline accelerated during the recession, as many young people sought refuge in college or other forms of education or training. In a normal cycle, that might have worked out well, leaving a generation of highly educated workers ready to re-enter the job market when the economy recovered. Instead, they have been graduating into a labor market that remains deeply challenged, especially for those without much work experience. To make matters worse, many graduates are carrying hefty debt burdens, and those who can find work are often being forced to low-skill jobs.

But are these young people victims? Or are they doing this to themselves?

Young UK socialists rejoice over Maggie Thatcher's death

Young UK socialists rejoice over Maggie Thatcher’s death

I was looking over the Captain’s blog and I found a post where he argues that young people are not victims.

He writes:

However, before we all jump on the baby boomer generation (and don’t worry, history will be INCREDIBLY harsh on them) we have to look at our own generational selves in the mirror.  Specifically, whether we deserve all these programs or not.

Of course, the question is moot and academic.  I don’t think there will be any money to be paid out in the first place, but let’s just say there was.  Do our generations really deserve all the unicorns, puppies, hope, and change the government says we’re entitled to?  I say no and here is the reason why.

Gen X and Gen Y are doing the EXACT same thing as their baby boomer predecessors did.  They are spending more money than they make.  They expect other people to take care of themselves.  They are entitled WAY more than the baby boomers ever were.  And (most importantly) THEY VOTED IN DROVES FOR BARACK OBAMA and thus THE MORTGAGING OF THEIR OWN FUTURES.

Much as I loathe the baby boomers, the successive generations, mine included, are worse.  Despite BLATANT and OBVIOUS financial problems our generations faced, we lacked the adult maturity (let alone simple 2nd grade mathematics) to turn this country around.  And while the baby boomers have been voting more and more conservative, it is the younger generations through galactic stupidity, ignorance and selfishness that merely nailed a couple more nails in the US-coffin and thus our own futures.

Like I said, I doubt there will even be any money for Gen Y, Gen X and any future generations to make good on all those socialist entitlement goodies we promised ourselves.  But before we start blaming previous generation’s for our current problems, we should start blaming ourselves for making our future problems worse.

We should be careful about pitying young people who are struggling to find work, and who won’t get a dime from social programs like Social Security and Medicare. They are voting to punish employers with taxes and regulations. Most of them don’t know or care about what they are doing – they don’t connect their vote to their unemployed status. They think that education means jobs, and that they can vote in order to feel good and be liked, and still find work. They think that if they pay into these entitlement programs, then the money will be there. They trust Obama and they vote for him. They are not victims.

Filed under: News, , , , , , , , , , , , , , , , , , , , ,

Wintery Tweets

RSS Intelligent Design podcast

  • An error has occurred; the feed is probably down. Try again later.

RSS Evolution News

  • An error has occurred; the feed is probably down. Try again later.
Click to see recent visitors

  Visitors Online Now

Page views since 1/30/09

  • 4,533,800 hits

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,174 other followers

Archives

Follow

Get every new post delivered to your Inbox.

Join 2,174 other followers

%d bloggers like this: