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Monthly archive: May, 2009

Dialogue on School Choice

May 20, 2009, by Doug No comments yet

“The South Carolina legislature is currently considering a tax credit bill intended to give parents an easier choice between public and private schools. It would do this by cutting taxes on parents who pay for their own children’s education, and by cutting taxes on anyone who donates to a non-profit Scholarship Granting Organization (SGO). The SGOs would subsidize tuition for low income families (who owe little in taxes and so couldn’t benefit substantially from the direct tax credit).”

While I’m a big fan of market competition in education, this particular form of “school choice” I’m not a big fan of. However, the principles behind why one should support these types of policies is explained in a four-part written dialogue at the CATO@Liberty website, conveniently laid out in side-by-side columns.

Charleston minister Rev. Joseph Darby opposes such programs, and I support them. We’ve decided to have this dialogue to explain why. The next installment is here.

Doug

Doug Stuart is a committed follower of Jesus and passionate about building for the Kingdom of God through education and mobilization. He is a regular writer at LibertarianChristians.com as well as the founder of Living Loud.

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Michelle Obama tells students to “give back”

May 17, 2009, by Doug 2 comments

Michelle Obama UC MercedYesterday Michelle Obama giving a commencement speech at the University of California, Merced’s graduation ceremony. Of course, there were the obligatory brief self-bio that every commencement speech-writer inserts about his or her own life, and Michelle Obama was no different. She talked about where she came from, and what she has achieved. And she encouraged those who will become successful in their careers to “give back” to society. This coming from the family who gave less than 5% of their income over the past ten years to charitable giving, but who has no problem raising taxes on the wealthy in the name of “public good.”

Michelle Obama is an idiot. I’m sorry, I’m being mean. She’s not really an idiot, she’s probably just ignorant, can’t make basic observations about U.S. society and culture, or ignores what is strikingly obvious in most instances because her bias against the wealthy and successful blinds her to what actually goes on in an economy.

Her first assumption is that when somebody becomes successful in America, it is at somebody else’s “expense.” Unfortunately, Michelle, we live in a society primarily based upon freedom of choice (something I believe she touts with regards to some topics such as abortion, but not others). That means that if somebody wants to be successful by acquiring other people’s money (legally), they must offer something in return (it’s why you say “thank you” to the owner of the coffee shop as he says the same back to you when you buy a cup of coffee). If I want what you have (sounds kinda greedy, doesn’t it?), I have to provide you something in return (perhaps the best way to handle the notion of greed in society). If you don’t like what I want to provide you, I can’t have your money. In general, this is how things work legally. It’s how our legal structure is setup.

So when these successful businesspersons provide great things for society such as home construction, cabinet manufacturing, automobiles, quilts, or even family counseling, they are engaging in trade—both parties inherently become wealthier. If that were not true, the trade wouldn’t take place (why would I trade something that I believe would make me “poorer”?). The only instance this doesn’t take place is through coercive methods; anytime one is coerced to do something he wouldn’t do voluntarily, there is not a “mutual gain.”

Michelle Obama believes that “giving back” is not voluntary generous giving (though she may accept this). What Michelle is doing is subtle: get young minds to believe that (1) what they are doing is not in and of itself a service to society, therefore (2) “giving back” means later being okay with some of your markers of success (i.e., money) to be taken from you in the name of “public service” (with or without the voluntary giving piece). If I were trying to get society to be okay with coercive generosity, I’d say this is a great way to redefine taxation into some quasi-voluntary activity.

The Obamas may believe that private charity can have positive impacts upon society. They may also believe in businesspersons who are generous and do not take advantage of “the little guy,” and therefore provide something good for society. So along those lines, Michelle’s admonitions are acceptable. But knowing where she comes from, her advice is at best laughable and at worst hypocritical. But they act as if they believe that the government is the source of all (at least most) good in society, and that top-down planning of an economy and society is the best way to achieve nirvana in this life.

Doug

Doug Stuart is a committed follower of Jesus and passionate about building for the Kingdom of God through education and mobilization. He is a regular writer at LibertarianChristians.com as well as the founder of Living Loud.

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Hamilton’s Curse

May 5, 2009, by Doug 5 comments

hamiltons-cursejpgIn the United States, we often quote and honor Thomas Jefferson as one of the greatest “founding fathers” and thinkers in American history. Jefferson is cited as a champion of freedom, states rights, and a limited federal government. But we live in a Hamiltonian America.

I just started reading Thomas DiLorenzo’s latest book, Hamilton’s Curse. Between the time I ordered the book and when I received it, I kinda grew uninterested in it. But since I paid my $20 for it, I started the introduction hoping to find something to pique and keep my interest.

From page one I was hooked. This book is not a biography, but a historical and political-economical study regarding Hamilton’s ideals and ideological pursuits, with ample contrast to Jefferson’s own pursuits. In short, he was Jefferson’s Archenemy (as the subtitle of the book declares).

The reason I recommend the book because it seems to be a great overview of the two fundamental opposing ideas during the founding of the United States. On the one hand, Hamilton wanted a federal government with a president who was much like a king with veto powers that could not be overridden. On the other was Jefferson, who advocated for states rights and a very limited federal government.

And the book is easy to read.

Doug

Doug Stuart is a committed follower of Jesus and passionate about building for the Kingdom of God through education and mobilization. He is a regular writer at LibertarianChristians.com as well as the founder of Living Loud.

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Inflation and the Poor

May 5, 2009, by Doug No comments yet

ronpaulCongressman Ron Paul explains here how inflation hurts the poor. First and foremost, we must realize that rising prices is not a cause of inflation any more than wet streets are the cause of rainfall. In reality, the reverse is true. Just like a balloon is inflated because it has a greater supply of air, inflation in an economy is fundamentally monetary. In a truly free market (without an organization legally permitted to print money out of thin air), inflation would be low or non-existent. As it is, the United States has a Federal Reserve System that plays god with our monetary policy, creating money out of thin air by either (1) printing it, (2) permitting the highly vulnerable practice of fractional reserve banking, or (3) lending to banks at an artificially low interest rate to keep rates low when they should be higher (an interest rate is a price, which rises and falls according to supply and demand; tinkering with them artificially leads to booms and busts within an economy).

First thoughts on this are that we don’t have a free market in the United States when the money supply is strategically connected with the federal government. Indeed, the money supply should be unalterable without ties to a stable currency (historically gold and silver). Otherwise politicians can go to war, run deficits, and borrow money by printing it for their own purposes.

If you read the link cited above, Dr. Paul (he’s a doctor because he’s a gynecologist) explains why inflation is not only caused by increasing the money supply, it directly hurts the poor and leads to wealth inequality. So, for those of you who are against wealth inequality, and want to help the poor, probably the greatest economic cause you can fight for is to end the federal reserve system.

Doug

Doug Stuart is a committed follower of Jesus and passionate about building for the Kingdom of God through education and mobilization. He is a regular writer at LibertarianChristians.com as well as the founder of Living Loud.

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Random Thoughts

May 4, 2009, by Doug No comments yet

I haven’t really been in the mood to write much lately, in part because my mind is reeling from following the news, reading more books and journal articles on economics, and being a father with a house to take care of. Most of my time spent doing things is also spent listening to audiobooks or lecture podcasts on various subjects, most of which are history- or economics-related.

Lately, here are a few thoughts:

  • Until one understands basic economic theory (law of supply and demand, scarcity, and efficiency), it’s futile getting into a discussion about economic policies such as health care, welfare, and taxation
  • Studying history makes us less doomed to repeat the mistakes of those before us, if we take seriously the similarities between our own day and the eras of the past; the “dooms-dayers” have very good points, even if they are a bit “out there”
  • Because all humans deserve respect and freedom to act according to their own will, the key to “running society” is to understand incentives; in reality, “running society” is simply establishing a rule of law with equal protections for all
  • Christians who wish to do social justice by playing politics are cheapening the gospel
  • Respect for all human beings can only be achieved by thinking in terms of individualism
  • Collectivism is an excuse to disregard human dignity, respect, and inherent personal value; it reduces individuals to dispensable and usable

Doug

Doug Stuart is a committed follower of Jesus and passionate about building for the Kingdom of God through education and mobilization. He is a regular writer at LibertarianChristians.com as well as the founder of Living Loud.

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