Call For A Biblically Informed CST Based Macro-Economic Strategy

[domerjohnCF]

The Catholic Hierarchy has traditionally and consistently taken the position “We Do Theology- We Do Not Do Economic Theory”

Disturbing Socio-Political trends in Catholic Countries like Bolivia and Venezuela where the grass roots has defied the exhortations of the Bishops and have through democratic vote elected to adopt Socialism as a national economic system since their experience has been that unbridled democratic free market capitalism has failed to reduce poverty and narrow the wealth gap and inspite of the fact that Socialism has failed wherever it has been tried as in Eastern Europe…

The hierarchy of the Church needs to integrate “Theology and Economic Theory” to come up with a Biblically Informed Catholic Social Teaching based Macro Economic Strategy (in the absence of an EconomcTheory) to at least accomplish the following:

• Reduce Poverty
• Narrow the Wealth Gap
• Reduce Social Strife
  At the root of Social Strife in Latin America is the question of "ownership of the Natural Resources (specially hydrocarbon resources) of the the country. The Catholic Church must come up with a MacroEconomic strategy for democratizing the ownership of the Natural Resources otherwise all the preachings and teachings of the Bishops will continue to be ignored.

Ownership of natural resources is the cause of violent social strife in several Catholic countries**** in Latin America and democratization of ownership will help to reduce social strife and provide supplemental income to the poor, the disenfranchised and indigenous populations through dividend income which can be used to consume or reinvest****.

What if:

• there were a taxable National Trust which (rather than the Government) held title to the natural resources (spcially hydrocarbon resources) of a country and
• every citizen through a personal (IRA-type) account owned lifetime/non transferable shares in this Trust.
• And the Central Bank extended a ‘low interest’ capital credit to the Trust to acquire title to the natural resources collateralized by the natural resource assets or perhaps even by some type of credit insurance.
• This Trust were professionally managed were to contract with global Multinationals for the development and marketing of the natural resources.
• The administration" and “accounting” of the individual Personal Accounts (IRA type??) of the citizens could be performed by traditional commercial banks.
• The Trust itself would pay taxes or in lieu of taxes be organized as a “semi-public” corporation with the Central and State Governments having a share in the Trust
• With the availability of computer and internet technology the administration of the ownership interests of each individual citizens including the rich, the poor, the marginalized, the illiterate, in other words the “anawim” of Jesus’ gospel) can be easily accomplished
  Would not such a scenario for the ownership of natural resources be “biblically informed” and satisfy all or most of the provisions of the Papal Encyclicals on Catholic Social Thought?

 

[Pax]

The Catholic Hierarchy has traditionally and consistently taken the position “We Do Theology- We Do Not Do Economic Theory”

Disturbing Socio-Political trends in Catholic Countries like Bolivia and Venezuela where the grass roots has defied the exhortations of the Bishops and have through democratic vote elected to adopt Socialism as a National Economic System since their experience has been that unbridled democrattic free market capitalism has failed to reduce poverty and narrow the wealth gap and inspite of the fact that Socialism has failed wherever it has been tried…

If they are ignoring the bishops now, what makes you think that they will listen to the Church if she provides a new fangled and untested economic system?

 

[domerjohnCF]

The answer is obvious. This does not involve a new “economic system” but rather a strategy for democratization of the ownership of Natural Resources. Self Interest will motivate the citizens to listen since every one will be a direct beneficiary of this or a similar biblically informed CST based Macro Economic Strategy.

 

[vern_humphrey]

The answer is obvious. This does not involve a new “economic system” but rather a strategy for democratization of the ownership of Natural Resources. Self Interest will motivate the citizens to listen since every one will be a direct beneficiary of this or a similar biblically informed CST based Macro Economic Strategy.

What is “democratization of the ownership of Natural Resources?”

Does it mean I have to give up my farm (a natural resource) to people who never struggled to earn the money, build up and work the land, and who have no intention of living on my farm?

Does it mean I don’t own the products of my farm – lumber, hay, horses?

Does it mean that the mineral rights I have will be confiscated?

How does this mean anything other than “stealing from people who worked hard to get what they have and are the best stewarts of their resources?”

And how will this work out** better** than “democratization of the ownership of Natural Resources” in Zimbabwe, where a nation that once exported huge quantities of food is now forced to live on imports, due to turning over the natural resources to people with no idea how to manage them, and no desire to do so?

How will this be enforced – by a vast famine to starve people out, like the Collectivization Famine under Stalin?

 

[domerjohnCF]

If the term “Natural Resources” is too broad use “Oil and Natural Gas” and other mineral resources.

When God Almighty created Man he placed him as a Steward in Dominion over his Creation- which is an ongoing process. This Stewardship and Dominion was not entrusted to a State, A Corporation, A Committee but to individual humans.

Hence the call for a Biblically informed CST Based Macro Economic Strategy with specific ends in the specific Countries
of Latin America
reduction of poverty
narrowing of welth gap
reducing violent social conflict.

 

[Pax]

The answer is obvious. This does not involve a new “economic system” but rather a strategy for democratization of the ownership of Natural Resources. Self Interest will motivate the citizens to listen since every one will be a direct beneficiary of this or a similar biblically informed CST based Macro Economic Strategy.

I disagree with you…please show me where this system is currently in place somewhere in the world. Likewise, if it is not in place in the countries that you named, then it will certainly be “new” to them.

I do not believe that people will automatically gravitate to this system based upon your assertion that self interest will motivate them. Proposals can have merit, but that does not mean that they will be accepted. Likewise, I am not personally convinced that your plan will work better than any other. Economic systems, the culture, and the social and political structures work hand in hand. You are talking about some huge changes that may have a lot of enertia to overcome. Likewise, they may or may not work.

If the bishops propose a system and go into sales mode they will walk into territory that exceeds their mandate. They are not qualified to design, propose, and institute an economic plan of reform. They can instead identify moral shortcomings, human rights violations and injustices that occur within systems and recommend that they be overcome. If people would accept what the bishops have already said concerning human rights and care of the poor many of the problems would already be remedied.

The bishops have been ignored and they will continue to be ignored until people take what they have already said to heart. I suspect that those that are responsible for the current injustices have sufficient power and influence to game, corrupt, and abuse most any reforms that are instituted. There can be exceptions and your ideas may be good ones. I simply don’t think that the bishops happen to be the answer to the implementation of yours or any other plan.

 

[geezerbob]

There is corruption in the US.

There was corruption in Russia under communism and it still exists under Putin, who is effectively a dictator.

There was and still is rampant corruption in North Korea and China under communism.

There is corruption in the socialist countries of Europe.

There is corruption in the Muslim countries of the Middle East.

There is corruption in the African countries with all types of governments or no effective governments.

Any type of economic system is subject to corruption that tends to concentrate wealth and power in the hands of the select few. How would a new economic system change any of this? Who would enforce it and how?

Jesus said that the poor would always be with us and He called for us to assist them personally and through the Church. I missed the part where He said that the government or economic system was supposed to do that beyond the haves (employers) paying fair wages to the have nots (workers).

 

[vz71]

What is “democratization of the ownership of Natural Resources?”

Does it mean I have to give up my farm (a natural resource) to people who never struggled to earn the money, build up and work the land, and who have no intention of living on my farm?

Does it mean I don’t own the products of my farm – lumber, hay, horses?

Does it mean that the mineral rights I have will be confiscated?

If the term “Natural Resources” is too broad use “Oil and Natural Gas” and other mineral resources.

OK…so what happens to me if I strike oil in my back yard?
Is my property going to be confiscated?

 

[vern_humphrey]

If the term “Natural Resources” is too broad use “Oil and Natural Gas” and other mineral resources.

So, up front – who owns the minerals on and under my farm? Me or the state?

When God Almighty created Man he placed him as a Steward in Dominion over his Creation- which is an ongoing process. This Stewardship and Dominion was not entrusted to a State, A Corporation, A Committee but to individual humans.

And God had no idea humans would form communities, tribes, kingdoms, and ultimately states?

If
Hence the call for a Biblically informed CST Based Macro Economic Strategy with specific ends in the specific Countries
of Latin America
reduction of poverty
narrowing of welth gap
reducing violent social conflict.

And how do we do that? Does it involve the state taking over all the resources – as in many African nations?

 

[domerjohnCF]

Quite the contrary. It does not mean the State owning the natural resources but a private tax paying Corporate Trust in which every individual citizen is a beneficial life time non transferable share holder.

 

[vz71]

So if I strike oil in my back yard, my property will be confiscated and handed over to a “Corporate Trust” instead of the government.

I feel so much better after having basic rights comprimised.

All this idea appears to do is trade up one tyranny for another.

 

[vern_humphrey]

Quite the contrary. It does not mean the State owning the natural resources but a private tax paying Corporate Trust in which every individual citizen is a beneficial life time non transferable share holder.

Ah, so you do propose to confiscate my property!

 

[domerjohnCF]

Lets get down to some basics

Christian Churches in general and the Catholic Church in particular have a duty to come together to integrate Theology and Economics and develop a Bibilically informed CST based Macro-Economic strategy that is consistent with Christian principles for application in natural resource rich (oil, gas etc) countries where poverty continues to grow inspite of these God given riches

There are two questions that need to be answered::

1. Do the poor, disenfranchised and marginalized in any economy have a RIGHT OF ACCESS to the same financial tools (technology, information, capital etc) that the wealthy have and use to advantage in growing their networth?
2. If the answer to the above is affirmative then should ACCESS TO low interest (or even no interest) capital credit issued by the Central Bank of a country be considered a “human or economic” right for each and every citizen (the rich, the poor, the marginalized and the indegenous)?

This would provide every individual citizen (rich and poor alike) the capital to acquire a lifetime nontransferable DIRECT beneficial ownership interest in the natural resources of a counrty through a Tax Paying National Trust.

Ownership of natural resources is th cause of violent social strife in Catholic countries in Latin America and making every individual citizen an owner of the natural resources will help to reduce social strife and provide supplemental dividend income to
every citizen the rich and, the poor instead of it going to the State or to large corporate interests.

Large multinatonal corporations can be contracted to develop and market the natural resources. The State can get its due share through taxes.

 

[vz71]

1. If the answer to the above is affirmative then should ACCESS TO low interest (or even no interest) capital credit issued by the Central Bank of a country be considered a “human or economic” right for each and every citizen (the rich, the poor, the marginalized and the indegenous)?

Low interest loans are not, and should never be, a right.

 

[vz71]

Ownership of natural resources is th cause of violent social strife in Catholic countries in Latin America and making every individual citizen an owner of the natural resources will help to reduce social strife and provide supplemental dividend income to
every citizen the rich and, the poor instead of it going to the State or to large corporate interests.

I understand now.

You are a socialist.

 

[domerjohnCF]

A Central Bank works with the citizens own money so why not a low interest or no interest access to capital by the citizens when used for growing the wealth of the nation.

 

[domerjohnCF]

Since when does a socialist empower the citizens to become owners of productive assets?

 

[vz71]

A Central Bank works with the citizens own money so why not a low interest or no interest access to capital by the citizens when used for growing the wealth of the nation.

Interest is based upon risk.
The lower the capacity of someone to pay back a loan, the higher the risk of losing the money.

So once you legislate low interest loans for everyone, who picks up the tab on the flurry of defaults?

 

[vz71]

Since when does a socialist empower the citizens to become owners of productive assets?

It is socialism when it is legislated that all people own everything…which essentially means no one owns anything.
Which is what you are advocating.

 

[domerjohnCF]

The Central Bank issued capital credit can be collateralized by the assets and even through some form of credit insurance. Furthermore the National Trust would need to be professionally managed just like any corporation and the resulting dividends flowing to the citizen owners who can use these dividends for any purpose to consume or further investments.