Politics

Chris Banescu, Bp. Savas and the Dust Up


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When ideas clash, they often clash hard. When Chris Banescu took Bp. Savas to task for a mistake he made in reporting the salary of an American CEO, his intention was not only to call Bp. Savas on the error, but to call attention to Bp. Savas’ economic assumptions.

The error was minor and we all make them. It was easily corrected. The assumptions rest deeper. Since Bp. Savas has entered the public square and unabashedly promotes the assumptions, challenging them is fair game. That is why I decided to publish Banescu’s piece.

Bp. Savas evaluates and prescribes economic policy exclusively through a Progressive political framework. His thinking differs little, if at all, from Jim Wallis, arguably the leader of what we can call “Christian-Progressivism.” Wallis has been a Progressive for as long back as anyone can remember, at least from the 1960s when he first became a political activist.

Progressivism has a storied history in American that we won’t enter into it here. In the last four decades however, it has grown increasingly statist. That means Progressives see the state as the source and enforcer of the policies that they think conform to the Christian moral imperative to love the neighbor.

In many ways the shift from early to contemporary Progressive ideology parallels the history of feminism (which today also falls under the Progressive umbrella). Early feminists were pro-life, modern feminists are the loudest voices for aborting the unborn. Clearly something changed from then to now.

Progressive ideology employs the language of the Christian moral vocabulary to justify its policy goals especially about helping the poor. This causes a considerable amount of confusion among the uninformed. It sounds like the Progressive policy goals and the Christian moral imperatives are one and the same.

The reality is entirely different. Progressive ideas have done more to harm the poor than help them. This first became apparent in Charles Murry’s ground-breaking work Losing Ground: American Social Policy, 1950–1980 back in 1984 (read more here).

Murray’s book was a game-changer. His research showed that instead of helping the poor, the Progressive policies contributed to the break-down of poor families and created a cycle of dependency that institutionalized poverty. These policies were first formulated under the Johnson administration’s “Great Society” programs and were for all purposes well-intentioned. Their results however have been catastrophic.

For example, in Harlem (the first focus of the Great Society administrators), 70% of all children lived in intact two parent families and the trend was increasing. Thirty percent lived in a single parent household. Ten years after the onset of the Great Society, the numbers were reversed.

Further, the breakdown of the family has left many boys bereft of father figures leading to the increase of gangs as their primary unit of socialization. It is also the reason why young black men are over-represented in our prisons. In fact, single-motherhood has become the single most reliable determinate of poverty.

Murray’s initial research has been confirmed time and again, enough so that even the Democrats who first championed the Great Society ideals had to admit its failures. President Bill Clinton, to his credit, was the fist to roll back the reach of the Progressive welfare state when he ended “welfare as we know it.” You can find the research justifying the change and examining the results by searching the indexes of the Manhattan Institute and the Heritage Foundation.

Thankfully there are other Orthodox Christians who recognize the harm that the Progressive ideas have fostered. The Fellowship of Christians United to Serve (FOCUS, an Orthodox organization) has launched a program to teach men how to become men and reverse the soul-denying patronization that they’ve suffered:

The Man Class

The Progressive economic assumptions have risen into view because the debt crisis threatens their dismantling. This was the reason why Jim Wallis organized the public signing of the document “The Circle of Protection” at the White House several months ago and why President Obama received them. (Full disclosure: I had a part in organizing CASE – Christians for a Sustainable Economy in response to Wallis’ efforts.)

These assumptions ride on the back of the Progressive social agenda. I mentioned above that Progressives borrow the Christian moral lexicon to justify their policy goals. This borrowing confuses many people because they assume Progressive ideas are the way that we fulfill our Christian obligation to care for the poor. It sounds like Progressive ideas and the Christian obligation are one and the same.

Ideas have consequences, and Progressive ideas have been catastrophic. Yet to many the catastrophe remains hidden because when Progressive ideas are challenged, they are met with more moral exhortations. These kind of responses never add any clarity to the discussion. They are meant to impugn the motives of the questioner and close discussion.

Our job is to think clearly. That means we should not take the Progressive borrowing of the Christian moral lexicon at face value. Just because a policy or idea sounds Christian does not mean that it is. Nor does it mean that when the Progressive impugns the critic’s motives in his response, that the response is authoritative. Most often it is not. Instead, call the response what it is: a deliberate misapplication of the Christian moral lexicon to avoid answering the criticism in any meaningful way.

Chris Banescu: Bishop Savas is Wrong on Taxes on the Poor and the Rich


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Chris Banescu corrects some bad math and sloppy assertions.

Source: A Voice in the Wilderness | Chris Banescu

Bp. Savas (GOA)Bishop Savas (Zembillas), GOA’s Director of the Office of Church and Society, has launched into yet another missive against conservatives whom he frequently condemns of hating the poor and only protecting the rich. On his facebook page, the main venue where one can find the bishop’s real views and interests, he recently posted a blame Republicans editorial from The New York Times titled “The New Resentment of the Poor.” Apparently forgetting that envy is a sin and truth-telling a virtue, Bishop Savas highlights his class-warfare passions in several false claims he posted in the discussions related to the NYT article.
 
This is not the first time Bishop Savas has posted such biased hit pieces on his Facebook wall. He has a long history of supporting pro-Democrat and anti-Republican views via his many postings of overwhelmingly liberal and leftist-leaning commentary from NPR and The New York Times, his favorite sources of “balanced and objective” news and views. However, this latest editorial further showcases his superficial and misinformed thinking on taxation via several outlandish statements that distort the truth and advance a leftist/progressive agenda.

Falsehood #1 – Employee Social Security and Medicare Tax Rates
In the comments section below The New York Times editorial link, Bishop Savas makes this claim (emphasis mine):

“even those who don’t pay federal income tax pay 16% of their total income on taxes. A person making $30,000 pays around $5,000.”

What he calls “total income on taxes” are the combined Social Security and Medicare taxes that individuals must pay to the federal government (in addition to federal and state income taxes). These are taxes that are automatically deducted by employers from their employees’ payroll checks. Based on the numbers he cited, employed individuals would pay a 16.7% ($5,000 divided by $30,000) combined Social Security and Medicare tax rate on income. Unfortunately, the bishop’s assertion is wildly inaccurate. He’s not just wrong by a few percentage points, but off by more than 100%.

According to federal government guidelines, by law employees are required to pay a 6.2% Social Security tax and a 1.45% Medicare tax on their earnings. This means that employed individuals must pay a combined SS/Medicare tax of 7.65% on their income. The employer must also match those taxes and pay an additional 7.65% of the employee’s salary directly to the federal government. Those additional taxes are paid by the employer only and are not deducted from the employee’s earnings.

Relying on some simple web research and basic math, we arrive at $2,295 per year of Social Security and Medicare taxes that employees earning $30,000 per year actually pay (nowhere near the $5,000 alleged). The matching $2,295 in SS/Medicare taxes are paid solely by an employer from his own earnings, not the employee’s pocket. This means that Bishop Savas’ erroneous example exaggerates these taxes by nearly 218%, asserting a fictional 16.7% vs. an actual 7.65% tax rate; a percentage two times bigger than reality.

Falsehood #2 – Viacom CEO Salary for 2010
The second falsehood from Bishop Savas, in the same facebook section, focuses on the 2010 salary of Viacom’s CEO (emphasis mine):

“The CEO of Viacom made $754,000,000 last year – around $2,000,000 a day, give or take. What percentage do you think he owes in taxes?

Such an enormous salary, nearly 3/4 of a billion dollars, for just one year’s worth of work is indeed shocking. The problem is that it’s not true. The assertion is meant to scandalize the reader and justify resentment of the other. It’s an audacious condemnation in support of the same liberal/leftist bias seen in the NYT article posted on his facebook wall. Bishop Savas is shamelessly distorting the facts.

A quick search on Google reveals the truth regarding the actual compensation that Mr. Phillippe Dauman, the CEO of Viacom, was awarded last year. As reported by the Los Angeles Times:

“Viacom Inc. Chief Executive Philippe Dauman was awarded salary, stock and other benefits totaling $84.5 million during the nine months of 2010 that were covered in Viacom’s fiscal year.

That amount included one-time stock award worth $31.65 million — money that was not paid to Dauman in 2010 but will vest over the next five years if the company achieves certain performance goals. The grant was bestowed on Dauman as a signing bonus in April after he extended his employment contract six and a half years.”

Notice immediately that the 2010 “awarded salary, stock and other benefits” is orders of magnitude smaller than the bishop’s imaginary amount. It is only $84.5 million vs. $754 million. Notice also, that a large portion of that salary, $31.65 million in fact, is deemed as “one-time stock award”; it hasn’t been paid to Mr. Dauman yet. That amount will vest over the next five years if the company meets very specific performance guidelines. He will only receive that compensation in the future if he fulfills the goals identified in his 5-year contract with Viacom.

The money Mr. Dauman was actually paid in 2010 is probably closer to $52.85 million. That’s indeed a nice chunk of change. But, it’s a whopping 1,427% smaller than what Bishops Savas said it was. That’s quite a discrepancy! Yes, we’re still talking about large amounts of money, but why the need for such ludicrous embellishment?

Even assuming a very superficial reading of the LA Times piece and using the $84.5 million compensation number, still leaves us with a 892% exaggeration of the facts. Is the desire to justify a viewpoint and promote an agenda so powerful that accuracy and truth no longer matter?

Falsehood #3 – Total Income Tax Rates on the Rich
Bishop Savas also erroneously assumes that someone earning $754 million per year would only pay $250 million in taxes:

“The CEO of Viacom made $754,000,000 last year – around $2,000,000 a day, give or take. What percentage do you think he owes in taxes? Say, for the sake of argument, he pays back $250,000,000. That would leave him with only a little more than half a billion dollars. Who would have made the greater sacrifice, him or the guy who paid $5,000 out of his $30k? Who is likely to have felt it more?”

Using his numbers gives the impression that a rich CEO pays only 33.1% in income taxes, allowing him to keep 66.9% of what he earned. This is also not true.

First of all, the marginal Federal Income Tax rate is currently 35% for anyone earning more than $379,150 per year (cut-off was $373,650 in 2010). Right away, the bishop’s math is off by almost 2%. [NOTE – the federal tax rates are less for the first $379,150 earned, but for practical purposes when dealing with millions in income the effective rate approaches 35%.]

Second of all, Bishop Savas conveniently leaves out an additional 1.45% Medicare tax that the federal government imposes on all income earned. This raises the federal tax to 36.45%. And we’re not done yet. State incomes taxes must also be paid.

Assuming that Mr. Phillippe Dauman is a resident of New York (a fair assumption since the corporate headquarters of Viacom Inc. are in New York City), he must also pay state and local income taxes due each year. A brief overview of New York’s state tax laws by the nonpartisan Tax Foundation reveals a tax rate of 8.97% on all income over $500K per year. We’ll round that out to 8.9% for simplicity and to account for the slightly smaller tax rates bellow the half million dollar mark.

Adding the 8.9% NY state tax rate to the 36.45% Federal tax rate brings the Total Tax Rate to 45.35%, roughly 37% larger than Bishop Savas asserts. Had Mr. Dauman actually earned $754 million for 2010, the IRS and New York State authorities would have appropriated about $342 million of that money (almost half), not $250 million (only a third) as claimed.

The reality is that New York taxpayers in the highest income brackets keep just 54.65% of what they actually earn each year. This is significantly less than the fictional 66.9% asserted by Bishop Savas. Nearly half of what the rich earn is confiscated and redistributed by the government. What’s wrong with sticking with the facts?

Better Silence Than Foolishness
As Abraham Lincoln once observed, it is often “better to remain silent and be thought a fool than to open one’s mouth and remove all doubt.” A little moderation would be wise before stepping into the public arena and proclaiming such whoppers. This is especially egregious given that the truth is just a few keystrokes away, discoverable via a few Google searches and some basic math.

It’s been said that economists should not do religion. Maybe religious figures should not do economics.

Rabbi Sacks: Reversing the Decay of London Undone


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Source: Catholic Education Resource Center | Chief Rabbi Lord Jonathan Sacks

Britain’s chief rabbi on the moral disintegration since the 1960s and how to rebuild.

It was the same city but it might have been a different planet. At the end of April, the eyes of the world were on London as a dashing prince and a radiant princess, William and Kate, rode in a horse-drawn carriage through streets lined with cheering crowds sharing a mood of joyous celebration. Less than four months later, the world was watching London again as hooded youths ran riot down high streets, smashing windows, looting shops, setting fire to cars, attacking passersby and throwing rocks at the police.

It looked like a scene from Cairo, Tunis or Tripoli earlier in the year. But this was no political uprising. People were breaking into shops and making off with clothes, shoes, electronic gadgets and flat-screen televisions. It was, as someone later called it, shopping with violence, consumerism run rampage, an explosion of lawlessness made possible by mobile phones as gangs discovered that by text messaging they could bring crowds onto the streets where they became, for a while, impossible to control.

Let us be clear. The numbers involved were relatively small. The lawkeepers vastly outnumbered the lawbreakers. People stepped in to rescue those attacked. Crowds appeared each morning to clear up the wreckage of the night before. Britain remains a decent, good and gracious society.

But the damage was real. Businesses were destroyed. People lost their homes. A 68-year-old man, attacked by a mob while trying to put out a fire, died. Three young men in Birmingham were killed in a hit-and-run attack. While it lasted, it was very frightening.

It took everyone by surprise. It should not have.

Britain is the latest country to pay the price for what happened half a century ago in one of the most radical transformations in the history of the West. In virtually every Western society in the 1960s there was a moral revolution, an abandonment of its entire traditional ethic of self-restraint. All you need, sang the Beatles, is love. The Judeo-Christian moral code was jettisoned. In its place came: whatever works for you. The Ten Commandments were rewritten as the Ten Creative Suggestions. Or as Allan Bloom put it in “The Closing of the American Mind”: “I am the Lord Your God: Relax!”

You do not have to be a Victorian sentimentalist to realize that something has gone badly wrong since. In Britain today, more than 40% of children are born outside marriage. This has led to new forms of child poverty that serious government spending has failed to cure. In 2007, a Unicef report found that Britain’s children are the unhappiest in the world. The 2011 riots are one result. But there are others.

Whole communities are growing up without fathers or male role models. Bringing up a family in the best of circumstances is not easy. To try to do it by placing the entire burden on women – 91% of single-parent families in Britain are headed by the mother, according to census data – is practically absurd and morally indefensible. By the time boys are in their early teens they are physically stronger than their mothers. Having no fathers, they are socialized in gangs. No one can control them: not parents, teachers or even the local police. There are areas in Britain’s major cities that have been no-go areas for years. Crime is rampant. So are drugs. It is a recipe for violence and despair.

That is the problem. At first it seemed as if the riots were almost random with no basis in class or race. As the perpetrators have come to court, a different picture has emerged. Of those charged, 60% had a previous criminal record, and 25% belonged to gangs.

This was the bursting of a dam of potential trouble that has been building for years. The collapse of families and communities leaves in its wake unsocialized young people, deprived of parental care, who on average – and yes, there are exceptions – do worse than their peers at school, are more susceptible to drug and alcohol abuse, less likely to find stable employment and more likely to land up in jail.

The truth is, it is not their fault. They are the victims of the tsunami of wishful thinking that washed across the West saying that you can have sex without the responsibility of marriage, children without the responsibility of parenthood, social order without the responsibility of citizenship, liberty without the responsibility of morality and self-esteem without the responsibility of work and earned achievement.

What has happened morally in the West is what has happened financially as well. Good and otherwise sensible people were persuaded that you could spend more than you earn, incur debt at unprecedented levels and consume the world’s resources without thinking about who will pay the bill and when. It has been the culture of the free lunch in a world where there are no free lunches.

We have been spending our moral capital with the same reckless abandon that we have been spending our financial capital. Freud was right. The precondition of civilization is the ability to defer the gratification of instinct. And even Freud, who disliked religion and called it the “obsessional neurosis” of humankind, realized that it was the Judeo-Christian ethic that trained people to control their appetites.

There are large parts of Britain, Europe and even the United States where religion is a thing of the past and there is no counter-voice to the culture of buy it, spend it, wear it, flaunt it, because you’re worth it. The message is that morality is passé, conscience is for wimps, and the single overriding command is “Thou shalt not be found out.”

Has this happened before, and is there a way back? The answer to both questions is in the affirmative. In the 1820s, in Britain and America, a similar phenomenon occurred. People were moving from villages to cities. Families were disrupted. Young people were separated from their parents and no longer under their control. Alcohol consumption rose dramatically. So did violence. In the 1820s it was unsafe to walk the streets of London because of pickpockets by day and “unruly ruffians” by night.

What happened over the next 30 years was a massive shift in public opinion. There was an unprecedented growth in charities, friendly societies, working men’s institutes, temperance groups, church and synagogue associations, Sunday schools, YMCA buildings and moral campaigns of every shape and size, fighting slavery or child labor or inhuman working conditions. The common factor was their focus on the building of moral character, self-discipline, willpower and personal responsibility. It worked. Within a single generation, crime rates came down and social order was restored. What was achieved was nothing less than the re-moralization of society – much of it driven by religion.

It was this that the young French aristocrat Alexis de Tocqueville saw on his visit to America in 1831. It astonished him. Tocqueville was expecting to see, in the land that had enacted the constitutional separation of church and state, a secular society. To his amazement he found something completely different: a secular state, to be sure, but also a society in which religion was, he said, the first of its political (we would now say “civil”) institutions. It did three things he saw as essential. It strengthened the family. It taught morality. And it encouraged active citizenship.

Nearly 200 years later, the Tocqueville of our time, Harvard sociologist Robert Putnam, made the same discovery. Mr. Putnam is famous for his diagnosis of the breakdown of social capital he called “bowling alone.” More people were going bowling, but fewer were joining teams. It was a symbol of the loss of community in an age of rampant individualism. That was the bad news.

At the end of 2010, he published the good news. Social capital, he wrote in “American Grace,” has not disappeared. It is alive and well and can be found in churches, synagogues and other places of worship. Religious people, he discovered, make better neighbors and citizens. They are more likely to give to charity, volunteer, assist a homeless person, donate blood, spend time with someone feeling depressed, offer a seat to a stranger, help someone find a job and take part in local civic life. Affiliation to a religious community is the best predictor of altruism and empathy: better than education, age, income, gender or race.

Much can and must be done by governments, but they cannot of themselves change lives. Governments cannot make marriages or turn feckless individuals into responsible citizens. That needs another kind of change agent. Alexis de Tocqueville saw it then, Robert Putnam is saying it now. It needs religion: not as doctrine but as a shaper of behavior, a tutor in morality, an ongoing seminar in self-restraint and pursuit of the common good.

One of our great British exports to America, Harvard historian Niall Ferguson, has a fascinating passage in his recent book “Civilization,” in which he asks whether the West can maintain its primacy on the world stage or if it is a civilization in decline.

He quotes a member of the Chinese Academy of Social Sciences, tasked with finding out what gave the West its dominance. He said: At first we thought it was your guns. Then we thought it was your political system, democracy. Then we said it was your economic system, capitalism. But for the last 20 years, we have known that it was your religion.

It was the Judeo-Christian heritage that gave the West its restless pursuit of a tomorrow that would be better than today. The Chinese have learned the lesson. Fifty years after Chairman Mao declared China a religion-free zone, there are now more Chinese Christians than there are members of the Communist Party.

China has learned the lesson. The question is: Will we?

Christians for a Sustainable Economy Challenge Jim Wallis and “Progressive Christians”

Christians for a Sustainable Economy

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Christians for a Sustainable EconomyIn response to Jim Wallis, editor of Sojourner’s Magazine and leader of the Christian wing of Progressive activism, several conservative Christians gathered recently to form the Christians for a Sustainable Economy (CASE). We intend to counter what we see as the unjustified and irresponsible appropriation of the authority and vocabulary of the Christian moral tradition in service to ideas and policies that threaten the fiscal and cultural fiber of American society.

The “Christian Progressive” movement conflates the biblical mandate to care for the poor with the policy prescriptions of big government and deficit spending. Recently Wallis led a highly publicized White House visit of Progressive religious leaders to create the impression that any objection to the spending of the Obama administration was de-facto a threat to the poor. Needless to say he got plenty of attention. (Hear Wallis explain the purpose of the visit at the Huffington Post. Read a critique of the visit by the Institute of Religion and Democracy.)

The White House visit was a public relations gambit geared to shift opinion against bringing Congressional spending under control. Wallis formed the “Circle of Shared Responsibility,” a statement that literally bathes in the language of scripture but calculated to deliver the religious vote to Obama. How do we know this? Because George Soros, no friend of religion or nation states, funds Sojourners. See: Why Is Jim Wallis Denying that He Receives Grants from Deep-Pocketed Leftists like George Soros?

Should we Orthodox even care about these issues? Yes. Each of us owes $42,500 on the national debt. This debt will pass on to our children and grandchildren unless we stop our profligate ways. If that doesn’t worry you, visit the National Debt Clock to see how fast we are spending the money!

Further, several influential people in Orthodox circles who have jumped onto the Progressive bandwagon. one is Fr. Leonid Kishkovsky, Director of External Affairs and Interchurch Relations for the Orthodox Church in America, who signed the Wallis proclamation (download pdf).

In a small way I contributed to the formation and direction of CASE and am one of the early signers on a document urging more prudence about budget deficits. I also repudiate the notion that only Progressives speak for Christians. They misappropriate the Christian moral lexicon and there is no reason why we should stand by and allow it. I invite all readers to read the document and consider adding your name to it.

Also, please link to this article on your websites and Facebook and Google+ pages.

Syria’s Christians Live in Fear

Some of the interior of the church chappel at the famous Saydnaya Monastery, one of the central holy places of the Orthodox Christians of Syria.

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Some of the interior of the church chappel at the famous Saydnaya Monastery, one of the central holy places of the Orthodox Christians of Syria.

Some of the interior of the church chappel at the famous Saydnaya Monastery, one of the central holy places of the Orthodox Christians of Syria.

American neo-con and liberal foreign policy are synonymous. The support of the insurrection in Egypt and our involvement in Libya will probably help establish an Islamic republic that will persecute the Christian minorities in those countries. Now calls are being heard to overthrow the government of Syria that, if successful, also will create very dangerous conditions for the Christians in the region.


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