Sunday, October 31, 2010

Margaret Thatcher and the Loony Left

For better or for worse (I point some of this out just to indicate to those who think I just read what I want to see/hear) I read a blog called Cramner. I find it informative if a little bit irritating - and that irritation is not just because of the fact the blogger takes a right-of-centre view on things, but just as much if not more due to his writing style.

Anyhow, apparently some Labour Councillor up in Sunderland has covered herself in glory by hoping that Thatcher "burn in hell" on the back of Thatcher's current state of weak health. So this Cramner chap takes her to task pointing out that, apparently, Thatcher is a Christian.

I'm too young to really know all that much about Thatcher other than that, in the parts I grew up in, she was universally hated, and so the possibility she is a Christian intrigues me. The downside, of course, is trying to read more about this since almost anything written on her is either sycophantic or hate-filled, it seems. Any tips will be gratefully received on reading material; if you're a Tory I may treat your tips with a little more scepticism than I might otherwise...

One thing I note from what Cramner writes is that Thatcher it seems never went as far as to claim you couldn't be anything other than a right winger and a Christian. So I guess with all great figures, those that come afterwards distort what they said or think to some extent.

Friday, October 29, 2010

Whose Liberty?

I was just reading one of the n-million letters a US libertarian economist Don Bordreaux fires off each day/week which as usual has some dig at something someone has said somewhere in the US media.

The linked letter basically says certain liberals oppose property rights by advocating things like nationalisation of industry or, presumably, any kind of government intervention since that is predicated on taxation which is coercion.

I think this is the starting point for many Christians who stand on the right of the spectrum (although not necessarily the Tory Christians I know, I'm thinking people like Cramner and other libertarians I know). Taxation is coercion and we should thus oppose it as Christians because it denies those from whom the taxes are taken the freedom to decide for themselves what they do with that money.

A tiny part of me is sympathetic to that view. Very tiny though, because my real concern is: Whose liberty are we protecting by stopping taxation on more affluent people in order to fund some kind of state-led action of one form or another? Are we protecting the downtrodden employee who really has absolutely no "choice" about what to do because there are no other employers around should he quit his job? What freedom does this person have if there are no labour laws and regulations (that are enforced) keeping checks and balances on what employers can and cannot do? Particularly if, should he decide to quit and try to look for another job, there is no safety net for him and his family to fall into should he not be able to find another job instantaneously?

So do we by having some state intervention in the mechanics of labour markets protect the liberty of many people at the expense of the liberty of others?

Thursday, October 21, 2010

The Spending Review

Since I'm starting up a blog on issues regarding why Jesus was not a right winger (main premise - to show how baseless the assertions that Christians should only back right-wing policies rather than make Jesus out to have been a leftie), I should comment on yesterday's events in Parliament.

Those that know me know that I vote Labour at the last election (and the one before that, and the one before that. Before that I was too young to vote), but this doesn't mean that thus I support everything a Labour minister utters (in fact, I have issues with a lot of it), and nor does it mean I oppose Tory policies on principle.

As mentioned in previous posts, I want to have a stab at interpreting the Bible using economic theory to guide the policy implications that come out of it. Many other people, I believe, do not do this and thus arrive at assertions that all Christians should support right-wing policies (small government, etc).

The reason why I don't want to comment so much on the Spending Review is that it relates a lot to how things are done in the UK economy, which is not necessarily how they should be done - since I'm only just starting to write and think about exactly how they should be done I'm not about to start making such bold assertions.

But the small comment I will make is this - and this is consistent with what I've always said about Tory policies on deficit reduction: They are much too much, much too soon. Dress them up as you will (apparently 400,000 people leave jobs in the public sector a year anyway - but are replaced usually), they are cuts to a weak economy. There is no attempt to work ourselves out of the mess - it's entirely belt tightening.

Anyone who has had debt problems will know that you don't solve them just by belt tightening. Any start-up company will tell you they didn't pay off their initial creditors when they hadn't established themselves as going, viable entities. So why does it make sense to cut back so drastically spending in a weak economy?

You'll note: I'm not saying that some cuts will be useful - undoubtedly I'm sure I'll come across things the state is doing that I don't think it should (e.g. the Post Office). What my concern is about is the timing of these cuts.

The response from others is: We'll grow faster because of these cuts, there will be less crowding out. We'll abstract from the absence of any evidence on a strong crowding out effect and just say: Who are you kidding? The half-million and more jobs that are going, these are folk that will be spending less - and paying less in taxes, and claiming more in benefits. So it's not immediately clear how much the saving will be anyway. Then there's the multiplier effect - the jobs in small businesses reliant on local councils for contracts - small businesses that may go under as a result. I can keep on going.

It simply does not make sense to cut right now. Despite the "there's no money left" assertions that many throw out frequently, the fact is there IS money: The government is able to borrow at very cheap rates of interest (rates that are not going up either). That's not a justification for government borrowing and spending per se, but if we push the economy into recovery by a bit more borrowing that is a much better basis on which to cut than the current one.

Tuesday, October 19, 2010

More About This Blog

It's already been a few hours since my first post, and many things are still on my mind from discussions with various folk in recent weeks, on Facebook and elsewhere.

I should emphasise, if I haven't already, this blog is an attempt to collect my thoughts somewhere where they can be challenged or encouraged, and generally refined as they need to be.

It's not an attempt to raise economics above the Bible, or above other issues when people decide their political affiliation. It most certainly is not an attempt to paint one particular party as the Christian party; all parties are composed of fallen, sinful people and everyone knows that collective organisations of sinful people can make rather large pigs ears of things.

However, how broadly should economics be defined is an important question? A friend suggests social justice should come above economics in the grand scheme of things when we consider where our Christian vote or political affiliation goes. According to Wikipedia, "Social justice generally refers to the idea of creating an egalitarian society or institution that is based on the principles of equality and solidarity, that understands and values human rights, and that recognizes the dignity of every human being".

There's little doubt that social justice is a philosophical concept but also clearly it is an economics concept, and I suspect I'll be coming back to this again and again. Notably because in order to create a society that satisfies what Christians would decide to be the appropriate level of human right recognition and dignity, one has to have a deep understanding of the economic mechanisms at work that produce particular outcomes in society.

Often a free market can provide exactly this: Dignity and freedom for all participants. But economic theory is fairly clear that this happens when a market is competitive and all participants are price takers. Once we move away from this paradigm then we start to enter the realm where dignity is not afforded to all by the market and the question is what do we do then?

If we intervene we have to humbly recognise that government failure can be just as bad if not worse than the market failure that prompted it. We also have to give due consideration to the structures we will set in place; what incentives will they provide for market participants?

As I say, I'll come back to this plenty in the weeks and months to come I expect. But hopefully I've made it fairly clear that economics has to play a huge role in the matters important to a Bible-adhering Christian, and a good understanding of economics is very important when that Christian comes to think about politics and policies.

This Blog

I've come to notice something recently. Many people make outrageous claims about the economic and political leanings of the Bible, unsubstantiated claims. Many of these people also attempt to claim the moral high ground for their particular political party. These people are usually right wingers, and often libertarians.

I just came across a chap called Gary North who claims "The Bible mandates free market capitalism. It is anti-socialist. The proof is here: 10,000 pages of exposition, verse by verse". It's basically a libertarian interpretation of the Bible - an interpretation to support his prior political persuasions. It includes the classic characterisation of the political spectrum into two camps that right-wing folk tend to indulge in: Communism/socialism or a free market economy.

It seems there is a dearth of literature on anything but the "Christian Right", and certainly the "Christian Left" does not appear to have quite so many heavyweights listed there.

Is that it though? Is it really only possible to be a free market capitalist, believing in unfettered markets, and a Christian? When I talk about being a Christian, I mean a Bible-believing Christian, and Evangelical, or conservative Christian: Someone who takes the Bible seriously even on the issues where society disagrees.

I believe the answer is no, fundamentally no, and it irks me greatly to see people like Gary North, like Conservative/Republicans claiming the only logical position as an Evangelical Christian is to vote for that party. Hence this blog. I aim to argue using basic economics (the basic economics that all these people ignore in their defence of unfettered markets and subsequent contortion of the Bible).

I hope though not to be as confrontational as these people, as I'd hate to turn into someone who attempted to raise a political party to the higher moral ground. I don't believe Jesus would have been a right winger just as I'm not sure he would have been a leftie either. I think that question is entirely pointless and to try and venture along some kind of characterisation is to wander towards a faith+something else theology.

But simply, a Christian is saved by his belief in Jesus's death and resurrection. Not on which side of the centre ground of economics/politics he happens to stand on.