Economics is not a business science, although it has applications to business. Rather, it is part of the liberal arts and is a science of human action. Economics studies the actions that most people take in response to circumstances in their lives, but especially those actions that are visible to us. This is why economists … Read more
One of the interesting things about our country, the independence of which the Founders declared 235 years ago today, is that we have been a property-holders’ democracy. This is not something the Founders originally advocated. While they protested taxation by a British parliament in which they were not represented, they did not think that … Read more
It is hard to understand politics if you are hung up on reality. Politicians leave reality to others. What matters in politics is what you can get the voters to believe, whether it bears any resemblance to reality or not. Not only among politicians, but also among much of the media, and even among some … Read more
Europe is a mess. The ongoing economic crisis has sparked violent riots and growing turmoil, particularly in harder-hit nations like Greece, where demonstrators have taken to throwing home-made bombs at police. And the worst may be yet to come. Analysts now say there is a real chance that the Greek government will default on its … Read more
Among the consequences of the recent and ongoing financial crisis and economic downturn is a rekindling of interest in the moral dimension of economic life. In a recent two-part article at Catholic Exchange, Rev. Seamus Finn, OMI, identifies one particular area of renewed attention: moral investing. Ethical investing — usually called socially responsible investing (SRI) … Read more
What is the magisterial authority of Catholic Social Teaching (CST), and how is it applied to real world situations? Catholic Social Doctrine is simply the voice of the Church, starting with the Sacred Scripture and the Church Fathers, that lays out the principles of how justice and charity are to be lived out in the … Read more
Karl Marx famously quipped that great historical events and personages appear twice, first as tragedy and second as farce. The tragedy he had in mind was the French Revolution and the farce was its pale successor that took place in France in 1848. To the contrary, events leading up to the revolution turn Marx’s formulation … Read more
The financial problems of Greece have dominated the headlines for months. The problems are not new. They have been apparent since the end of 2009 when Greece revealed that its budget deficit would be more than three times previous projections. The March 2010 rescue package (E110 Billion) and austerity measures agreed to by European … Read more
Amidst the excitement of John Paul II’s beatification on May 1, the 20th anniversary of the late pope’s most important social encyclical, Centesimus Annus, got a bit lost. Blessed John Paul II was not a man given to rubbing it in. Still, it is worth noting that the encyclical, which celebrated the collapse of European … Read more
Two years ago, in June 2009, the American economy emerged from recession, according to the National Bureau of Economic Research. But as this week’s Economist noted, with typical British understatement, “The recovery has been a disappointment.” And maybe not a recovery for long. Robert Shiller, the economist who first identified the housing bubble, said last … Read more
Last week I outlined just how complicated the economy really is. Society is confronted with the almost incalculable problem of how to meet the indefinite needs of a massive and diverse population. Anyone who has raised a decent-sized family knows just how hard it is to satisfy even a small group of people whom you … Read more
We older Americans have saddled our youth with a mind-boggling public debt — over $20 trillion already spent ($14.3 trillion of “official” national debt plus various off-budget expenditures, according to the U.S. Treasury); trillions more of projected deficit-spending over the coming decade; and tens of trillions of dollars of unfunded liabilities. By the time today’s … Read more
Most of our nation’s problems are a direct result of our being immune, hostile or indifferent to several moral questions. Let’s start out with the simple and move to the more complex. Or, stated another way, let’s begin with questions that generate the least hostility, moving to those that generate the greatest. If a person … Read more
And you thought things couldn’t get worse on the housing front. The U.S. housing market is in the worst shape since the Great Depression, and now the Obama administration’s solution is to impose new rules that would banish 60 percent of current homebuyers from the market. The proposed Mortgage Qualification Rules are the result … Read more
One of the common misconceptions about our country’s economic condition today is the assertion that we will have to accept a lower standard of living in the future than we have had in the past. It is often phrased in different ways, such as we will have to work harder to get less, or … Read more
St. Matthew, patron saint of bankers, pray for me. This is how I open and close each day. I am a banker and in the business of buying and selling money. There is a common misconception among the faithful that having money is bad, and having a lot of money is really bad. Conversely, … Read more
There’s an awful lot that’s stale in the debate on government energy policy. Some stale arguments are nevertheless valid: It’s dangerous to depend heavily on Middle Eastern oil. Others have increasingly been seen as dubious: that global warming caused by human activity will result in catastrophe. There’s stale talk about federal and state laws that … Read more
Last week I promised to explain in a few short columns the social science of economics — the discipline that describes how everything gets done among all the human beings on earth. It might sound like a daunting task, but I bring to it all my skills as a Catholic humor columnist and English professor, … Read more
Two unrelated news stories on the same day show the contrast between government decisions and private decisions. Under the headline “Foreclosed Homes Sell at Big Discounts,” USA Today reported that banks were selling the homes they foreclosed on, at discounts of 38 percent in Tennessee to 41 percent in Illinois and Ohio. Banks in general … Read more
Two books that should top any reading list for progressives who believe in “winning the future” by waging war against its current inhabitants are H. G. Wells’ classic The Time Machine and Nassim Nicholas Taleb’sThe Black Swan. The former’s narrative has entered the culture, especially through a film version that appeared in 1960, starring Rod … Read more
