Thursday, February 11, 2010

Capitalism and Christianity: Part II

I heard this interesting piece on MarketPlace tonight. It provides a decent counter-argument to the Troeltsch quote I posted a few weeks ago. I invite thoughts.

1 comment:

Will C said...

I listened and I like. I agree with her. You can't pick to keep one part of the system without also keeping the other.

We can all keep wrangling over how much of the pie to share, but let's not forget about the importance of growing it.

By the way, this is a common sentiment among economists, if not also theologians. In college, Dickey once commented to me on the many ethical reasons there are for promoting economic growth: when people work, they have a greater sense of purpose, lower stress levels, more stable relationships at home, they're less likely to commit suicide, etc.

The importance of growing the pie is also seen in Hauser's Law ('s_Law), which states that, since WWII, tax revenues have been observed to be a constant 19.5% of GDP regardless of marginal tax rates. So if we want to have more resources to share with the vulnerable, we need to focus on growing GDP rather than raising marginal rax rates.