Of Incentives and Jobs

April 5, 2014 Leave a comment

Remember the early days of the recession and its intensification by the policies of Washington? Remember how the politics of envy ended up causing more job losses as the demagogues in the White House and on Capitol Hill lambasted incentives employers offered to successful employees? Good thing that the politics of envy are now behind us, that we have all grown up and recognized how foolish it all is to feel better by pulling other people down. Then again, maybe my blog post from 2009 still has some relevance today.

Weird things happen when we decide by law who should have jobs and who should not and we order how people and businesses should spend money. I am not referring to the legality of telling people who receive money from the government how to live their lives and run their businesses. I am referring to the wisdom of it. And by “weird” I really mean “bad.”

On Friday a press release came across my desk, issued by seven travel-meeting-event industry trade associations. Their basic message was that the public beating up of companies over the meetings they hold and the incentive programs that they have for employees is killing the travel, tourism, and meeting industry and the people who work in it. They estimate that 200,000 jobs were lost in that industry in 2008, and a larger number of job losses are predicted for 2009.

Even the old communist governments figured out that workers respond to incentives. Under the power of incentives people work harder, smarter, and more creatively. They may even enjoy their work more. Sometimes incentives that take the employee out of the normal routine can be very powerful. If left to their own devices, businesses will experiment with different packages of incentives to guide their employees into the most efficient ways to accomplish company goals and objectives. Will they get it right? Often they will not. When they get it wrong, they try something else.

What is the best set of incentives, and should the incentives include travel and recreation programs? I do not know, and neither do you. No one has enough information, smarts, or involvement to know. You may know what works for you, but are you willing to say that others should be offered the same rewards or that you should be given the same incentive program designed by someone somewhere else or in some other line of work? Everyone meeting company goals gets a set of golf clubs. That may work fine for Harry, but how about for you?

While it may be lots of fun to rant about businesses sending employees to Florida for a weekend, do we have any idea how that might figure into the incentive programs in those businesses? If you take that option away, what other option will work as well or as efficiently? Again, I do not know, and neither do you.

Up until recently, I did not have to know or pretend to know. We left it for businesses and their employees to figure out. In view of the efficiency of our businesses–which efficiency continued to improve and lead the world even in 2008–American businesses have been getting the incentives much more right than wrong. When we decide to make those decisions for other people, especially when we try do so through government force, we can be pretty sure we will get it wrong. Who wants to explain to the 200,000 travel and tourism industry people who are in danger of losing their jobs why businesses should not be holding meetings in Williamsburg or San Antonio or Nashville? Step up now; a frozen turkey if you get it right.

(First published February 8, 2009)

Filed under communism, compensation, demagoguery, incentives, jobs, knowledge, markets, politics, productivity, statism

Of the Rule of Law and the Separation of Powers

March 27, 2014 2 Comments

In the 1990s I was part of a congressional delegation to Argentina. At that time the Argentine economy was growing strongly and steadily, inflation was low, the currency was pegged to the dollar, convertible 1-for-1. Trade barriers were being lowered, commerce was booming. I recall asking Argentines what could possibly darken what seemed to be a very bright future. They were quick to reply: “Here in Argentina we have no rule of law. You can have no confidence in getting justice from the courts.”

That reminded me of Washington Irving’s observation on a European judge, from his famous work, The Alhambra:

It could not be denied, however, that he set a high value upon justice, for he sold it at its weight in gold.

Not long after that visit, the politics of income redistribution and confiscation threw the Argentine economy into turmoil, where it has remained.

I recently spoke with an economist friend of mine, who was waxing eloquent about the attractive monetary and tax policies in Bulgaria. I remarked that this would probably invite foreign investment. He replied, “No, there is no rule of law there.”

The point is that good economic policy cannot long survive inadequate legal safeguards. Many businesses that made major investments in China, attracted by a market of a billion people, have learned that the lack of a reliable legal and justice system in China has undermined much of the business value they thought to find. A similar story has been holding back investment and economic development in Russia.

Bringing that home, I would venture that concern for changing rules (or even lack of rules)—the substitution of arbitrary bureaucratic powers in Washington over objective rule of law—has been inhibiting more robust investment in the United States, a major cause for our current anemic economic recovery.

An ancient king in the Western Hemisphere, named Mosiah, warned, “because all men are not just it is not expedient that ye should have a king or kings to rule over you.” (Mosiah 29:16) Because men are not consistently just, freedom has historically rested upon rule by law rather than rule by men.

Fundamentally, that was the very reason for the American Revolution. Our revolution was based on the rule of law, an assertion of the rule of law, a response to violations of the rule of law by the English king and parliament. Most of the Declaration of Independence is a lengthy litany of violations of law by the English rulers. The Revolution was designed to take power away from man and men and rest it upon laws and rights, soon to be secured by a written supreme law embodied in the Constitution. Any erosion in the force and effect of the Constitution is an erosion of the rule of law and of the freedoms that rely upon law for their defense.

The Progressive Movement that thrived about a century ago, and found a major advocate in the federal government in President Woodrow Wilson, aggressively proposed an alternative to the rule of law. This program was the Rule of Experts. Their new view—and it really was a very old view though they dressed it up in modern-sounding rhetoric—was that there are Benign People, Experts, who know the process of modern government better than most people do, to whom we can safely yield governing authorities.

It sounds akin to the ancient theory of Divine Right of Kings, that the monarchs of the world are chosen by God and endowed with greater wisdom and perspective than the average man and woman. To their benign expertise and fatherly care was to be entrusted the governance of the rest of us.

The modern Rule of Experts people have much the same view, that these experts were endowed by their universities and other sources of expertise with ability far above that of most, and it would be wise to trust ourselves to their benign care. Not very democratic, and in fact these Benign Experts make no secret of their impatience with the Congress and other constitutional brakes on arbitrary authority.

As King Mosiah wisely pointed out that men are not always just, it is also appropriate to recognize that putting men in government does not make them any more reliably wise than the rest of us. The American Founders thought to address this problem by dividing political power among not only three branches in the Federal Government but also by embracing the federal system of dividing government with the States.

The current regulatory structure and program of the United States rest heavily on the idea that Benign Experts should be entrusted with authority for many of the big questions facing Americans and for many of the much smaller questions, too. That is certainly the structure of the Dodd-Frank Act, to offer one recent, prominent example among many.

Charles Calomiris, of the Columbia University business school, described the theory of the Dodd-Frank Act and related regulations this way:

The implicit theory behind these sorts of initiatives, to the extent that there is a theory, is that the recent crisis happened because regulatory standards were not quite complex enough, because the extensive discretionary authority of bank supervisors was not great enough, and because rules and regulations prohibiting or discouraging specific practices were not sufficiently extensive.
(Charles W. Calomiris, “Meaningful Banking Reform and Why it Is so Unlikely,” VoxEU, January 8, 2013)

This program of federal regulation has been imposed increasingly in contravention of the basic constitutional principle of separation of powers, by merging legislative, executive, and judicial authority in “independent” regulatory agencies. The unelected federal regulator today decides the details and specifics of binding mandates, identifies violators of those regulations, assesses guilt, and applies penalties.

Taken together our current regulatory system, by merging rather than maintaining the separation of powers of the Constitution, is eroding the rule of law. It is returning us to the age old practice of rule by men, with all of the potential for abuse of rights and freedoms, abuses that fill up most of the sadder pages of human history.

During the debate over the creation of the new financial consumer Bureau, Senate Banking Committee Chairman Dodd boasted that with this new agency people would no longer have to come to Congress for the enactment of new consumer laws. The Bureau would take care of all that.

There are serious operational flaws—too often overlooked—in the program of governance by Benign Experts. First, the regulators are not dispassionate umpires, limited to calling the balls and strikes. These umpires are also players in the game, the federal agencies each having their own set of particular interests and incentives that they take care of first.

Second, reliance on Benign Experts assumes an unproven, undemonstrated level of knowledge, insight, and forecasting skills. AEI President Arthur Brooks, in his book, The Battle, provides one of many examples of this flaw:

Federal Reserve economists were still forecasting significant positive growth and moderate unemployment in May and June 2008. They believed that economic growth in 2009 would be 2.4 percent, and unemployment would be 5.5 percent. What we experienced instead was negative growth, double-digit unemployment, and the destruction of at least $50 trillion in worldwide wealth. No one can get the numbers exactly right, to be sure. But getting them this much wrong certainly lends a whole new meaning to the expression ‘margin of error.’
(Arthur C. Brooks, The Battle, p.46)

It is not that regulators are dumber than the rest of the population, but they are no smarter either. The regulatory problems are increasingly too great for any designated group of humans to solve.

Third flaw, mission creep: power attracts power. Even if the tasks are too great, require too much knowledge, insight, foresight, and other skills in unachievable degree, the regulators still take them on, especially if the task increases the reach and influence of the agency.

I offer two examples from an example-rich environment.

Basel III capital rules started from a simple idea, that banks all around the world should be subject to the same capital standards. Capital (the financial cushion a bank carries against losses) is one of the three key elements of sound banking, the other two being liquidity and earnings. These international rules did not remain simple. Developed by an international team of experts from around the world, who labored on them for years, the rules number hundreds of pages, affecting the entire financial structure and business model of a bank, any bank. Congress was not involved and has no particular role in approving the rules. When exposed to public review they attracted thousands of comment letters expressing dismay that they are a bad fit for the U.S. economy. In the end, though, the regulators can go ahead with what they alone think is best.

A second example would be the Federal Reserve. One hundred years ago this year the Fed was created with a specific, identifiable, and rather narrow purpose, to provide liquidity for the banking system in times of financial stress. Before long, the Federal Reserve gained control of monetary policy and built up the practice of controlling interest rates. Later, it was given the task of promoting maximum employment. Under Dodd-Frank the Federal Reserve’s role in supervising banks and bank holding companies was expanded to supervising any financial business considered to be significant for financial stability. Each of these powers has drawn the Federal Reserve away from its narrow, objective task, to broad fields of subjective authority.

Perversely, this expansion of authority into more judgmental areas is eroding the independence of the Federal Reserve, making it yet one more political player in Washington, with responsibilities that far exceed human ability to fulfill, but which reach to every business and every home. The Fed’s prolonged policy of keeping short-term interest rates at or about zero has penalized all who save and live off of their savings, transferring trillions of dollars from savers to borrowers, the biggest borrower being the Federal Government, a policy decided by a small group of Washington experts.

I offer a partial but simple solution to point us back toward strengthening the rule of law and reducing our exposure to the rule of man and men, however expert they might be. Return the lawmaking and the policy decisions to the elected representatives. It is a messy process, but exactly the messy process that the Founders intended to preserve freedom from the encroachment of arbitrary and oppressive government. The regulators, which are theoretically part of the executive branch, should be left with the duty of implementing the laws and policy decisions that the elected and accountable representatives make.

If Congress were required to write the rules and mandates and delegate to the executive agencies only the execution, the mandates of government would be circumscribed by the limitations of a legislative body forced to be directly accountable for what it has wrought. It is easy for legislators to complain about bad regulatory decisions, when all too often these are decisions that Congress never should have delegated to regulators in the first place.

We would still have laws and regulations, but the laws might be more direct and specific, and perhaps fewer and surely smaller. We would probably not have Dodd-Frank Acts that number thousands of pages read by no congressman or Senator, containing a cacophony of half-baked ideas and multiple solutions to the same problem, all left for the regulators to sort out.

And legislators might recall this caution, from Thomas Paine:

Laws difficult to be executed cannot be generally good.
(Thomas Paine, The Rights of Man)

(First published February 17, 2013)

Filed under Argentina, banking, bureaucracy, Congress, Constitution, Dodd-Frank Act, Federal Reserve, federalism, freedom, government, interest rates, knowledge, law, progressives, rights, rule of law, Russia, statism, systemic risk, tyranny, Woodrow Wilson

Of Self Determination and Carving Up the World

March 24, 2014 Leave a comment

Woodrow Wilson unleashed some nasty asps of public policy on the world, the venom of which continues to work its misery on mankind. Professor Wilson as President pushed into practice the idea that American governance should be shifted from the people who elect Senators and representatives and entrusted instead to a cadre of wise men in the executive branch. Experts like himself, elite college professors and their best students, would know better how to manage the affairs of others than would the teaming masses of the nation left to make their own decisions.

Today, thousands of regulations, uncounted yards of red tape, and millions of bureaucrats later, we all live within a shrinking sphere of personal liberty, with diminishing control of our lives, permitted to make few decisions without someone we do not know having a major say in so much of what we have and do. Increasing numbers of our neighbors have effectively been rendered wards of the state, unable to manage their own lives without dependence upon a myriad of government programs that punish individual initiative and grind up families. Today, the most reliable predictor of poverty in America is being a single mother. Lured into the web of sweet-sounding sticky federal, state, and even local programs that promise help, these government victims are rarely delivered from poverty, and neither are their children or their grandchildren. This is surely not what Woodrow Wilson intended, but it is surely what his model of governance by experts has delivered. Obamacare is one of the most recent and obvious examples of this machinery of misery.

Yet it can be argued that nothing that Woodrow Wilson bequeathed has worked more harm than the destructive principle of “self determination,” imposed by Wilson and his international experimenters at the negotiations to rearrange the world after World War I. Of course, he did not act alone, but Wilson did much to make the world safe for World War II. Self determination worked its evil by institutionalizing perpetual turmoil in eastern Europe and the Balkans, as bickering and unstable micro-states created a power vacuum tempting for fuehrers and commissars to fill.

The concept of self determination can seem appealing as long as you do not pause long enough to consider how it might actually play out in practice and over time. The basic idea—and it does not go very far past this basic idea—is that every group of people has the right to find its own place in the sun, either with its own government or subject to another, whichever the group might wish.

It was this idea that Russian boss Vladimir Putin invoked to cloak his grab of Crimea. The people of Crimea had a vote (carefully monitored by Russian troops) in which over 95% said that they wanted to break away from Ukraine. And then they decided, almost the next day, that they wanted to become a part of Russia. According to the Russian Government, this was all very legal and in keeping with international law. It was self determination. Who could object? It was more than faintly reminiscent of the nearly unanimous votes in the nations of eastern Europe a generation ago—when occupied by the Red Army—in favor of communist regimes closely allied with the old Soviet Union. More self determination.

I wonder whether Professor/President Woodrow Wilson thought of how his principle of self determination would have worked in American history? What if Wilson instead of Lincoln had been President in 1861? Did self determination apply to the people of the southern states who wished to leave the Union?

I also wonder how dedicated Vladimir Putin really is to the principle of self determination? If it applies to Crimea, does it also apply to the people of Chechnya, who seem to be eager to be out of Russia? Are there other minority populations in Russia yearning to breathe free?

How about elsewhere in the world? Is self determination a universal principle worthy of universal application? Are Turkey, Syria, Iraq, and Iran ready to let the Kurdish minorities carve up their countries and realize their dream of a new Kurdistan? How about Muslim minorities in southern islands of the Philippines? The Tamil populated northern Sri Lanka? The Sunni-majority communities in Shiite majority Iraq? The multitude of tribal groupings in virtually every country of sub-Saharan Africa? Are all of the many minorities of China content with being governed by Beijing?

When would the bloodletting of self determination ever end? It has not ended yet, whether used as a justification for aggression or as a means of sustaining discontent. It is a ponderous legacy.

Filed under Abraham Lincoln, academia, Civil War, communism, freedom, healthcare, progressives, Russia, self determination, statism, Woodrow Wilson

Of Obama and Ethelred the Unready

March 22, 2014 1 Comment

As the troubled year of 2009 was approaching its final weeks I wrote a commentary, reprinted below, reflecting on how President Obama’s unreadiness for the job of President was endangering our soldiers abroad and weakening the economy at home. As we have witnessed a recovery that month after month remains so anemic that many Americans are not experiencing much of a recovery at all, as our retreat from world affairs encourages aggression by adventurers in Russia and elsewhere, and as the Obama Administration plans to return our Army to levels not seen since before World War II, it seemed to me appropriate to reprise my musings of November 2009. I also have to wonder whether the Nobel committee, which was so excited to award the peace prize to Barack Obama for promises to reduce American influence in world affairs, still considers its decision and the policy that it celebrated to have been wise and fortunate for the world.

Arguably the worst king of England was Ethelred the Unready. He was unready to rule his kingdom, he was unready to promote its prosperity, he was unready to repel the invader. The chief manifestation of his unreadiness was his inability or unwillingness to recognize reality. Reality eventually caught up with him—as it always does—and with his kingdom—as it always does for those subject to unready rulers.

The current President of the United States, Barack Obama, may be working hard to earn himself the title of Obama the Unready. The evidence is accumulating.

For months, the novice commander-in-chief has been at a loss to know how to respond to the urgent recommendations of the field commanders in Afghanistan. They have been pleading to increase the troop levels. The added troops are needed to respond to increased enemy activity. Unwilling to say yes or no, the President vacillates while American soldiers die because they are stretched too thin. He seems to have forgotten that American soldiers under President Clinton were similarly sacrificed in another poor corner of the world—Somalia—only because Clinton did not provide enough troops to do the job. Rather than decrease casualties, insufficient troop strength increases casualties, soldiers who would not die if given enough support to overwhelm the enemy. This week the White House announced that President Obama is still unready to decide on troop strengths for the mission in Afghanistan. Unfortunately, the Taliban is not waiting for him to make up his mind.

Also this week, President Obama gave a little speech about the economy. It was hard to miss the sense of frustration and perplexity in his remarks, made quickly as the Nobel laureate left town to seek more praise from his adoring foreign fans. He admitted that unemployment remains high, despite his economic program. He admitted that employers are reluctant to hire new people. He just does not seem to know why. His solution is to call a conference of economic talkers in December to talk about it. He remains unready to do something about his economic plans and government policies that are making it riskier for employers to take on more employees. Faced with half a trillion dollars in new taxes (many focused on small businesses), higher health care expenses from the trillion dollar “reform” program, new environmental plans to cool off the globe by cooling off economic growth, and dozens of other new plans to make it harder for businessmen to succeed, businessmen are reluctant to hire new people that they will later have to let go. All the while, the natural tendency for the economy to recover is weakened.

Consumer spending remains suppressed, while the Obama Administration and its friends in Congress pursue policies that make consumer credit more expensive and harder to get. Congress this year, with the Obama Administration cheering on, passed new credit card laws that make it difficult for lenders to have riskier borrowers pay higher rates. The result is that everyone gets to pay higher rates. Predictably, consumer credit declined by 15% in September and shows little sign of getting better. As we approach the holiday season, so important for the success of retailers, the Obama Administration and its Congressional allies are busily making it tougher for banks to run their debit card programs. Expect more debit cards denied at the checkout lines. Also expect the pace of store closures, already growing faster than swine flu, to continue to grow. Seen any empty storefronts at shopping centers lately? Be ready to see more, even as President Obama convenes his economic talk show in December.

Not to forget swine flu, the Obama Administration was eager all year to pump up the worry about a swine flu epidemic, in hopes that it might frighten people into supporting healthcare legislation. In the meantime, the Obama Administration’s health officials, who are heavily involved in development and distribution of vaccines (lawsuits that plague the medical industry have driven most vaccine manufacturers out of the business), were ready to promise but unready to deliver swine flu vaccine. Expect more of the same, of promises that do not meet actual needs as government becomes even more involved in regulating healthcare. Service and speed are what most people look for when they are sick, but service and speed are not what government programs are known to provide—any government program.

It should be no surprise that President Obama is not ready for the growing challenges of being President. Like Ethelred, Barack Obama had little training for the job. Governing has not gotten easier in the thousand years since Ethelred disgraced the throne of England. It is not getting any easier for Barack Obama. Fortunately for America, we do not invest all power in a king.

(First published on November 13, 2009)

Filed under banking, Barack Obama, Constitution, economic growth, environmentalism, global warming, government, healthcare, interest rates, jobs, markets, national defense, national security, personal finance, statism, taxes, Uncategorized

Of Free Agency and the Game of Life

March 17, 2014 3 Comments

This past week my wife and I were drawn to an interesting and insightful headline from the Sports section of the newspaper: “Free agency can be useful tool if used correctly”. Very true. This may be true in the games of sports. It certainly is true in life.

In professional sports, free agency means having some choice as to which team a player may join and on what terms, depending on talent and performance, interest, and the advocacy skill of his representative, among other factors. Used well, the player may go on to a successful and happy career, profitable for him and for his team, opening up even greater opportunities, including perhaps championship achievements and continuing successes beyond. Used unwisely, free agency can lead to a career that is a frustrating struggle inhibiting growth, achievement, and limiting follow on opportunities.

In life, free agency means that you and I can choose our manner of living in mortality and, in the process, the terms of living and opportunities available in the immortal worlds, depending again on talent (as expressed in performance), interest (again demonstrated by performance), and the effectiveness of our representative. If you will agree to His terms, you can have the very best Advocate as your representative, who only emphasizes your triumphs and takes upon Himself the blame for all of your failures.

A popular board game I knew as a child was “The Game of LIFE.” In this game several players compete by moving along the board on a marked path, buffeted by the vicissitudes and aggrandized by the rewards of life as determined by the cast of the die. Its virtue is that it presents to children how life is a steadily moving journey filled with a variety of experiences building to some degree on the ones before. The game was not a favorite of mine, because it asks for little skill from the players, the events of the game subject almost entirely to chance. In that sense, it teaches the false lesson that how you fare in life has almost nothing to do with your skill and the exercise of your free agency and everything to do with fate, beyond your control. Success or failure happens. Perhaps the game does little harm as a diversion, but I have not played it in a long while.

Life is not a game of chance. Neither, is it a sport, least of all a spectator sport. Each of us is the key and central player involved in making and applying decisions. The period of life called mortality is a testing ground, where decisions are free only because results are meaningful. The results derive their meaning from their reach into the worlds of immortality, following our death and resurrection. Because life has meaning then, it has meaning now.

That meaning is a gift from Jesus Christ, purchased by His free gift of voluntarily suffering for our sins, including surrendering His life in an unjust execution, one that He could have prevented should He have exercised His free agency not to bear our burdens. Because of the injustice of that suffering, He came back from the dead and conquered death, to die no more. Death was thus converted into a temporary interlude for all of us, allowing the choices of this life to extend beyond the grave.

If, on the contrary, each one of us were to end in death, if our being were then to cease to exist, then nothing we did would really matter in that end. Whatever we did, whatever we achieved, whatever we learned, so what? It would all be gone, never to be reclaimed.

Nothing we do makes any difference in the end, if in the end we are nothing, literally nothing. As far as we are concerned, it all vanishes with us, and any memory of us ends with the end of any who remembered. With nothing now mattering later, then all loses any present meaning. Any meaning we attach to anything now is a mirage, or even a charade. Like a child’s game, things seem to matter until the game is over, when nothing matters.

If nothing that we do matters, then the choices and decisions that we make do not matter, they have no lasting result, they make no real difference in the end. Whether we put too much salt or pepper in the soup, it makes no difference if no one eats it. With death as the end of it all, of all existence of any kind for each of us, then we really have no freedom, because we cannot and do not change anything for ourselves or for others. In any and all cases, whatever choices we make, it all ends the same way, in complete nothingness, annihilation of being. Choice itself becomes meaningless, a mirage, a charade.

But it is not like that in reality. It does not feel like that, and very few of us, even the atheists among us, believe or act like nothingness is our destiny, as if what we do is lost in the void, as if our choices do not matter. Christ’s redemption of us and of the world has changed everything for everyone. It gives lasting value to our choices, our actions, our decisions, making them all very real, preserving their consequences, their reach into the continuing life beyond our very temporary death. Our decisions can and do affect ourselves and others, in lingering ways. Christ’s redemption from death makes our freedom possible, then and now, because what we do matters, and how it matters is preserved.

With that freedom, Christ has given us a tool, which certainly can be useful, if used correctly. Fortunately, He also has given us guidance and still gives us guidance so that we may get and save the best results from the use of our free agency. And that is a big part of why we celebrate Easter, why Christ’s atonement and resurrection are the central event in Earth’s history.

Filed under abundant life, agnosticism, atheism, atonement, choice, death, Easter, eternal life, freedom, happiness, Joseph Smith, life, morality, mortality, resurrection, sports

Of Faith and Repentance

March 14, 2014 1 Comment

I received an electronic message the other day from someone trying to persuade me that, in essence, repentance is not necessary as long as one has faith. Such a concept is nonsense and little worth commenting on, were it not so popular. There are several ways to address this absurdity. I will present a couple.

Perhaps the first is to ask, faith in what or whom? If one means faith in Christ, then I would ask how would one have faith in Christ without repenting of the sinful way of life and embracing the commandments that Christ has given us? Can you be said to have faith in Christ and yet reject the walk of life that He commanded us to follow? Following that way of life is repentance.

Second, advocating that faith is enough, without repentance, is to use the concept of faith to avoid repentance. It is using the concept of faith to avoid doing what Christ commanded us to do, to avoid living the way of life He set out for us. It is to invoke faith in order to doubt what He said. I do not remember the Savior or His prophets ever teaching that. It is a Satanic doctrine that destroys both repentance and faith—and dishonors the Christ who gave us His commandments.

Again, repentance means changing your lifestyle, turning away from following your own faulty and rebellious whims and following the way of abundant life that Christ has outlined in His commandments. The doctrine of faith without repentance ignores the commandments of Christ. Faith means that you believe Him and trust Him. Men’s actions derive directly from their faith in what will bring them what they seek. That is why James declares, “I will shew thee my faith by my works.” (James 2:18) Faith in Christ cannot mean disregard of His commandments. That would be faith in something or someone other than Christ.

I know of only one commandment of Christ repeated more often in the scriptures than the commandment to repent, namely the commandment to seek Christ. Jesus Christ has promised us that if we seek Him, we shall find Him. What do we do once we find Him? We believe Him and follow Him and embrace His way of living. That is faith in Christ. That is repentance, and that is life eternal. As Jesus said in prayer to the Father, the night before the crucifixion, “And this is life eternal, that they might know thee the only true God, and Jesus Christ, whom thou has sent.” (John 17:3)

(First published January 17, 2009)

Filed under abundant life, commandments, doubt, eternal life, faith, happiness, Jesus Christ, repentance, sin

Of Hard Things and the Holy Spirit

March 10, 2014 3 Comments

Life is rife with hard things. They are what make life worth living. The easier matters are intended for rest and relief and perhaps enjoyment, but they offer little growth. The hard things do, and life is all about growth. When living things stop growing they decay.

God understood from the beginning the hard things that we would face. Many of them He put here for us, “for our sake” (though we arrange plenty of hardships for ourselves). When man and woman were expelled from the Garden of Eden God explained to them, “cursed is the ground for thy sake. . . Thorns also and thistles shall it bring forth to thee. . . In the sweat of thy face shalt thou eat bread. . .” (Genesis 3:17-19, emphasis added)

Our Heavenly Father knew that by facing and overcoming the hard things of life we would advance and progress and become worthy to be called His children, His heirs. As a loving Father He has also promised that we need not face the hardships of life alone, that His help would be ready at hand to take our best efforts and amplify them to be equal to the challenges, by which we are “glorified”.

. . . we are the children of God: And if children, then heirs; heirs of God, and joint-heirs with Christ; if so be that we suffer with him, that we may be also glorified together. For I reckon that the sufferings of the present time are not worthy to be compared with the glory which shall be revealed in us. (Romans 8:16-18)

It is common to believe that some people, such as the wealthy, have it easier, that perhaps they face fewer of the hard things of life. The Savior took on this assumption directly. He taught His disciples that such views have it backwards:

. . . It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God. When his disciples heard it, they were exceedingly amazed, saying, Who then can be saved? But Jesus beheld their thoughts, and said unto them, With men this is impossible; but . . . with God whatsoever things I speak are possible. (Matthew 19:24-26, JST)

No one escapes hard things. Like opportunities for growth, they are for everyone, including the rich. We can, however, overcome life’s troubles, God working with us, making all good things possible.

How is it done? Sometimes, surely more often than we know, God intervenes directly and removes obstacles, provides tools, brings friends and allies, and otherwise lowers barriers or lifts us over them. Perhaps even more frequently He increases our power and ability.

The Holy Spirit in particular can give us the power to do hard things as we qualify for that help. Consider some of the gifts of the Spirit. The ancient American prophet, Moroni, reminded us that these spiritual powers “are many”, given “unto men, to profit them.” As examples he cited wisdom, knowledge, faith, healing, prophecy, interpretation of languages, and others, explaining that these gifts of the Spirit are available to “every man” (see Moroni 10:8-17). The Apostle Paul provided a similar list in his letter to the saints at Corinth (see 1 Corinthians 12:8-11). A modern Apostle, Parley P. Pratt, offered us this description of the power and influence of the Holy Spirit, speaking as the others did from personal experience, not theory or hypothesis:

It quickens all the intellectual faculties, increases, enlarges, expands and purifies all the natural passions and affections. . . It inspires, develops, cultivates and matures all the fine-toned sympathies, joys, tastes, kindred feelings and affections of our nature. It inspires virtue, kindness, goodness, tenderness, gentleness and charity. . . . It invigorates all the faculties of the physical and intellectual man. . . . In short, it is, as it were, marrow to the bone, joy to the heart, light to the eyes, music to the ears, and life to the whole being. (Parley P. Pratt, Key to the Science of Theology, p.101)

With such godly influence we can surmount every challenge that we need to rise above and withstand the sorrows of life we are called upon to endure. That is the secret, at least in part, to the counsel and promise from God,

Therefore, let your hearts be comforted; for all things shall work together for good to them that walk uprightly. . . (Doctrine and Covenants 100:15)

Filed under abundant life, charity, divine nature, eternal life, God, happiness, Holy Ghost, Jesus Christ, joy, life, opposition, spirituality, suffering, wealth

Of Panic and Complacency

March 8, 2014 2 Comments

I wrote the following a few days after the election of Barack Obama in 2008. I was not in despair then, and I do not despair of finding some value even today in the thoughts expressed just before the dawn of the Obama Administration.

First of all, do not panic. Second, do not take it easy.

This is in line with another piece of advice I came across a few years ago (attributed to Austrian statesman, Clemens von Metternich): “Let us not consider ourselves victorious until the day after the battle, nor defeated until four days later.” Well, it has been more than four days since the November elections, and I believe that it is safe to say that the Republicans were defeated.

There are other things, however, that are not safe to say. It is not safe to say that the Democrats won an overwhelming victory. In fact, their margin of victory was fairly narrow, less than 7% separating the Republican and Democrat candidates for President, a number that only looks large when compared with closer recent Presidential races. Senator Obama’s percentage of victory was a little less than George Bush’s (the father) over Michael Dukakis, 6.7% versus 7.8%. The Democrats also picked up significant gains in their numbers in the Senate and House of Representatives, but in both cases they fell short of the overwhelming victories for which they had hoped. The results of the election were neither overwhelming nor underwhelming—just whelming.

It is also not safe to say that President-elect Obama and the Democrats do not mean to do what they said they wanted to do during the election. They plan to raise taxes. These higher taxes will be felt by everyone, but they will fall most heavily on businessmen and entrepreneurs, exactly the people whose efforts we need to restore economic growth. So as Obama and his team work to spread the wealth around, there will be less of it to spread, and less and less as time goes by. There are many other like-minded plans of the change team arriving in January.

Elected with the embarrassingly undisguised support of the mass media, the new leadership will continue to rely upon the media, this time to hype the “mandate” from the voters and to try to cower the remaining Republicans in town into timidity. The early effect of this can be seen in the hushed conversations of “people in the know” trying to convince themselves that Obama is really more moderate than he appears, that he will try to “govern from the center.” Maybe that will be true, but there is nothing either in Obama’s brief but clear far left voting record or his statements during the election to support the theory.

There remains powerful virtue in the Constitution (which the President-elect considers to be a flawed document), in which we can take comfort. The founding fathers wisely diffused power, because they were rightly afraid of what concentrated political power would do to individual liberty. While it is frustrating to new politicians in Washington, there is not a lot that one man can do—for good or ill—in our system of government, and that should be more of a source of solace than of worry.

We need not buy into the slogans that we should rise above partisan politics (which usually means that the other party should keep quiet and become politely ineffective) in order to wish the new President and the congressional leadership well so long as they propose to do good. Neither do we need be devotees of political parties in order to speak up when policies are proposed that will make things bad. In the land of “We the People,” it is our job not to be complacent. It is our job to remind the authorities in government who they work for. Otherwise, as we approach the holiday season in 2009, things will be much worse than they are already today.

(First published November 16, 2008)

Filed under Barack Obama, Congress, Constitution, economic growth, elections, government, investment, media, politics, socialism, taxes

Of War and Virtue

March 3, 2014 4 Comments

One hundred fifty years ago the United States remained divided in a brutal war of rebellion. Rather than unusual, such convulsions are typical in the establishment of representative republics. It does not come easy for a population new to a republic to embrace in practice the idea that matters of life and wealth should be resolved by votes. It seems that the age old recourse to arms and blood has to be tried again a time or two before people, who have only experienced more abusive government, come to accept that ballots and representation, enshrined in the rule of law, are a better way of deciding a society’s important issues.

One hundred fifty years ago, in 1864, the people of the young United States were still learning that painful lesson. But the instruction was nearing its end. Back in July of 1863, at Gettysburg and Vicksburg, the outcome of the war became inevitable. The rebels of the southern states were going to lose, constitutional government of the United States was going to succeed. The only chance for the rebels would be if the loyal people of the nation lost their determination to persevere to reunite the nation and reaffirm the constitutional republic. Often that seemed in the press to be an iffy question, but in reality the republican will remained strong. The hundreds of thousands who sacrificed life and limb in the field of war, in an overwhelmingly volunteer army (the number of drafted soldiers remained relatively minor), testified to that determination.

In the winter of 1863-64 U.S. soldiers in the field reenlisted in large numbers. Throughout 1864, and into the Spring of 1865, many thousands more would die, but the battles were becoming increasingly futile for the rebel cause, little more than adding to the destruction and suffering that rebel commanders were pulling down upon themselves and their fellows and families in this national lesson in self-government.

For the rebel soldier, experiencing defeat after defeat to his regiment, his corps, or his tattered army—with only occasional respites and temporary successes—it all may have felt pointless. The high and growing rate of desertion from rebel armies in those days suggests so. The historian comes to this point in the conflict and is tempted to describe the remaining rebel heroics and gallant but failing defenses as futile, the casualty lists a bloody tally of worthless and wasted sacrifice—particularly for so ignoble a cause as breaking up the best form of government on the earth at the time.

From the perspective of the rebel “cause” it was pointless, the continued bloodshed and destruction a burden for which the rebel leaders—in the rebel government and at the head of the rebel armies—will surely have to give an accounting before the Judge who weighs the doings of nations and those who lead them. Does that mean, therefore, that the daily struggle of the individual rebel soldier was meaningless? His effort could not change the outcome, only affect in some small way its overall cost.

And yet, throughout 1864 and to the end of the war, there were meaningful and often pitched battles fought on every field of action. The battles to which I refer echo a passage from The Book of Mormon written almost two thousand years before, describing an ancient American people after a very long war:

But behold, because of the exceedingly great length of the war between the Nephites and the Lamanites many had become hardened, because of the exceedingly great length of the war; and many were softened because of their afflictions, insomuch that they did humble themselves before God, even in the depth of humility. (Alma 62:41)

War, on a very personal level, appears to accelerate moral development. Individuals become more virtuous or more evil more quickly than they might under more peaceful conditions.

I believe that for the individual rebel soldier, as for perhaps every soldier, the real battle was his own, and in the end it was the most important battle with the most long-lasting consequences. Abraham Lincoln understated that the world would “little note, nor long remember” his speech at the dedication of the Gettysburg National Cemetery, though he perhaps correctly predicted that the world would never forget the great battle fought there.

In the full scheme of things, in terms of what really matters in the eternal worlds after this temporary one is rolled up and its purposes completed, the individual battles fought by each soldier on each side will be recognized as far more important than the whole Battle of Gettysburg. The battle of armies is a temporary one. The battle fought by each soldier, whether he exercises virtues or chooses vices, is the more permanent, the one that has never ending consequences. The battles of freedom were fought in recognition and preservation of these more important personal struggles we all have.

In the battles of 1864 and 1865 of the American War of the Rebellion the rebel soldier could not change the outcome of the war. But in each case his own personal triumph or defeat was there to be etched into his character more permanently than the scars of bullet and saber in his flesh.

As my son has often reminded me, everyone who fought in the Civil War died. And all of them lived. So must we all die, and yet we will all live again where there is no more death. By the time each of us leaves mortality, each must face and fight his battles, the ones that really matter far above those recorded in the history books of the world.

Filed under Abraham Lincoln, choice, Civil War, civilization, Constitution, death, elections, freedom, government, individual worth, military, morality, perseverance, rule of law, sacrifice, The Book of Mormon

Of Plumber Joe and Community Organizer Barry

March 1, 2014 Leave a comment

I first published this before the 2008 presidential election. In the years since, President Obama’s community organizer background has faithfully exerted itself.

It took a real life example to give life to the key difference between the two candidates for president. When Plumber Joe met Barack Obama campaigning in his neighborhood, Joe asked the would-be president, why do you want to tax my small business? Actually, more precisely, Joe wants to buy the plumbing business he has worked at, and Obama wants to raise taxes on it, and Joe asked Obama, why? At first, Obama equivocated and mumbled something about getting some tax breaks to offset the tax hikes. When Joe refused to buy into that sleight of hand trick, Obama fessed up. Obama admitted that he wanted to spread the wealth around. In other words, he said that Joe would be making too much money, so Obama wanted to take from him and give to someone else.

Why would Obama want to do that? Because, unlike Plumber Joe, who has a real job, Obama’s career experience came as a “community organizer” (when he was known in Chicago as Barry). Taking money from people and giving it to others is what community organizers do. Barry the Community Organizer now wants to organize a big community, of over 300 million people, and he wants to keep spreading the wealth around. Community organizers like to do that, because they like to get the credit for being compassionate and generous, compassionate and generous handing out other people’s money.

Joe has worked hard as a plumber. Joe has saved and prospered. Now Joe wants to own his own business and provide work for other employees. The employees, these plumbers, would provide plumbing services and get paid by their customers. Barack Obama wants to take some of that money—O.K., a lot of that money—and spread it around to people who would get their money from Barack, people who have not been as “lucky” as Plumber Joe.

Lucky? My guess is that it was not luck that made Joe work hard over the years and save his money to be in a position to own a business and provide real jobs to other people. Under a President Obama, Joe and others like him would become unlucky.

John McCain has been trying to point out for weeks that the change offered by Barack Obama is a big time return to the tired old tax and spend politics of the big government politicians. John McCain is not the most eloquent campaigner, and the mass media has been doing its best to bury his message anyway. McCain finally found a real life example, and that is the most eloquent statement of all. At the last national debate, on a stage that the mass media could not ignore, McCain introduced us to Joe the Plumber (who by the way did not ask for all the attention and is a bit embarrassed by it), and McCain asked, why raise his taxes? Why raise anybody’s taxes going into an economic downturn?

If you do not raise the taxes, you cannot keep spending other people’s money and winning praise for your compassion and generosity. And that is the point of this election.

(First published October 16, 2008)

Filed under Barack Obama, compensation, economic depression, elections, fairness, government, jobs, politics, recession, socialism, statism, taxes, tyranny

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