For the securities industry to unravel as spectacularly as it did in September, many parties had to pull on many threads. Mortgage bankers gave loans to Americans for homes they could not afford, often based on inflated house appraisals and no documentation of income or assets. Mortgage bankers immediately transferred these mortgage loans to Fannie … Read more
Catholics are seriously annoyed at the way the holiday season is changing. If you are among them, you are probably already annoyed at this article, because I didn’t say Christmas season. It is Christmas, for goodness sake, so why can’t we just say that? I received an e-mail the other day from Amazon.com headlined, “The … Read more
Trade and open markets have been the bedrock of our nation’s growth and prosperity since at least the end of the Second World War. But it was not always so: We learned the hard way that protectionist policies are not an effective cure for economic problems at home and in many cases have severely worsened … Read more
As angry as many people were about the bailout of Wall Street, something else makes people just about as angry: falling stock prices. It is probably for this reason that Washington decided to take the risk and push one of the more outrageously extravagant spending programs in the history of the world. The benefits of … Read more
A Splendid Exchange: How Trade Shaped the World William J. Bernstein, Atlantic Monthly Press, 494 pages, $30 It was the year 1600 and coffee had become wildly popular all over Europe, just as it had been popular all over the Muslim world since its discovery 900 years earlier. The sitting pope was Clement VIII. His … Read more
There is much to celebrate in the collapse of Lehman Brothers and Merrill Lynch; not the fall of these companies in particular, but what the fall represents. It shows the impossibility of holding onto wealth and power in a free society that is always in flux. And this is as it should be. I’ll explain … Read more
We all have strange and contradictory wishes concerning what prices should be. We are outraged at what is happening to the price of gas and food. We don’t think they should go up. In real terms, we want them to fall, and they have fallen in the last decade and a half. That’s a good … Read more
Put forth a robust defense of the free market as the most morally and materially satisfying economic system and you invite all manner of invective and accusation. What are you, some kind of dissenter? Not so fast. Although the documents of modern Catholic social teaching normally begin with Rerum Novarum (1891), students should instead start … Read more
While the politicians run around the country telling us of their plans to make our lives better — what wizardry they command; merely to make speeches, pass laws, and print paper, thereby making us prosperous and secure! — free enterprise is busy actually accomplishing this, and with little or no fanfare. This is the thought … Read more
During Lent, you will hear some version of the following from the pulpit: “This is the season to volunteer in charitable causes, to give back in service to the community, in a labor of love.” One cannot argue with the instruction here, or the sentiment behind it. Lent is indeed a time for giving and … Read more
Let’s say you want your computer fixed or your software explained. You can shell out big bucks to the Geek Squad, or you can ask — but you can’t hire — a typical teenager, or even a pre-teen. Their experience with computers and the online world is vastly superior to most people over the age … Read more
See if you can spot anything wrong with the following claim, a version of which seems to appear in a book, magazine, or newspaper every few weeks for as long as I’ve been reading public commentary on economic matters: The dominant idea guiding economic policy in the United States and much of the globe has … Read more
The workers and peasants of Hollywood, formed in solidarity against evil capitalistic sitcom producers, and organizing under the form of the Writers Guild of America, are threatening to withhold their astonishing talents pending an end to exploitation at the hands of their masters. So goes the conventional story, which is inherently implausible in more ways … Read more
It is an old truism that there is Tradition and there are traditions. Catholic apologist types typically illustrate this by showing clear examples of Big-T Tradition (the Creed, or the canon of Scripture) vs. small-t traditions such as, say, birthday cakes, Thanksgiving turkeys, or Super Bowl beer. All of these are human traditions, and none … Read more