Home
/
RELIGION & LIBERTY ONLINE
/
Class Warfare Not the American Solution to Budget Deficit
Class Warfare Not the American Solution to Budget Deficit
Jul 3, 2025 12:25 PM

Two weeks ago, President Obama ventured courageously into the debt crisis debate with soak-the-rich proposals aimed at the usual panies,” “hedge fund managers,” “millionaires and billionaires,”—and a new enemy, “corporate jet owners.” That phrase may have tested well with focus groups, but economists and pundits weren’t duped. The imprudence of a new punitive tax on a segment of the country’s manufacturing industry was immediately mocked up and down the Twitterverse, and longer arguments have since been made.

There’s also the “small” problem of the size of the tax break for corporate jet owners: over a decade, the government could collect three-quarters of one-tenth of one percent of the portion of our debt that the President aims to eliminate. The proposal begins to smell like demagogic nonsense.

Then we have this towering irony: the President wishes to harm a segment of the economy (manufacturing) which he claims at the same time to support. His union base insists that he sign no new free trade agreements until Congress passes protections for workers whose jobs are outsourced. There is no talk, however, of protections for Gulfstream employees who will be laid off when the higher price of jets brings down demand. Focus groups can’t provide much in the way of economic analysis. Perhaps the President’s team should have talked to Steve Rooney, president of the International Association of Machinists and Aerospace Workers in Wichita, Kan., who told the AP:

I think it’s just insulting. He acts like it is just a luxury for somebody to own a business jet when they’re used as tools. And I don’t think he realizes how many people that this industry employs and how much revenue is brought in here from those types of aircraft.

Senate Majority Leader Harry Reid, who claims that lawmakers are fighting the President’s tax agenda “to protect the owners of yachts and corporate jets. To protect corporations that ship jobs overseas” misses this inherent contradiction.

The Heritage Foundation’s Mike Franc calls it an “off with their heads” mentality, and he’s right. That successful businessmen should be bled dry out of a “sense of shared sacrifice” is not the instinct of a free society. It is a Marxist sentiment, one based in a view of historical progress as class conflict.

The creation of wealth, from which the U.S. can pay down its national debt, is not a zero-sum enterprise. It requires the cooperative striving of the whole business ladder. As Pope John Paul II pointed out in his 1981 encyclical Laborem Exercens, management and labor ought not to be separated at all. “Isolating … ‘capital’ in opposition to ‘labor,’” he says, “is contrary to the very nature” of wealth and its creation.

In concocting a solution to this country’s fiscal problems, our leaders would do well to remember that.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
There is no moral difference between eating Chick-fil-A and a McChicken
I am grateful to Fr. Ben Johnson for his thoughtful response to my recent post, “The social responsibility of Chick-fil-A is to make delicious sandwiches.”He adds some extra nuance, but I still stand my ground. Fr. Ben begins with an objection I’ve heard several times now: Friedman rightly notes that a CEO who funds a charity with the profits of a publicly held corporation spends the firm’s money, not his own. However, Chick-fil-A is a privately owned business, founded by...
Fact check: 5 facts about the fifth Democratic debate of 2019
The Democratic Party narrowed the number of presidential hopefuls to 10 at the fifth debate, held Wednesday in Atlanta. Several of their statements deserve greater scrutiny. 1. Elizabeth Warren: Freeloading billionaires? The 99 percent in America are on track to pay about 7.2 percent of their total wealth in taxes. The top one-tenth of one percent that I want to say, “Pay two cents more,” they’ll pay 3.2 percent in America. I’m tired of freeloading billionaires. I think it’s time...
Stephanie Slade on markets, planning, and Catholic social teaching
Stephanie Slade writes in next month’s edition of Reason Magazine about, ‘Regulation and ‘the Right Ordering of Economic Life”according to Catholic social teaching: The Church’s surprising lesson for partisans of big government is that the best tools for correctly ordering economic life are found in the choices of individual market actors. Because those choices are based not only on their preferences but also on their convictions, people’s moral sensibilities—the extent to which they believe they have ethical obligations to each...
Hong Kong demands freedom in landslide election
The citizens of Hong Kong expanded their democratic revolution to the ballot box on Sunday, as pro-democracy parties won control of virtually every local government from pro-Beijing functionaries. Yesterday’s district council elections – the largest in history, with an estimated 71 percent of all registered voters (or 2.94 million of 4.13 million) participating – proved voters’ overwhelming support for the traditional rights enjoyed by the former British protectorate. The South China Morning Post described the landslide election as a “tsunami...
Nibbling at Dylan Pahman’s Chick-fil-A argument
As though guided by an invisible hand Dylan Pahman and I – independently and without coordination – each posted an essay about Chick-fil-A’s philanthropic giving within minutes of one another, each with slightly different emphases. Readers may see this as a conflict; however, probing the space between these analyses helps make sense of customer backlash, illustrates why “woke capitalism” of any variety is a miasma, and underlines that charitable decisions are best made by private individuals. Dylan quotes Milton Friedman’s...
Spare a thought for China’s Muslim Uyghurs
The days in which many Westerners celebrated what many thought was mainland China’s inevitable march towards freedom as a consequence of its limited opening to global trade are now well and truly over. The present battle over Hong Kong, one of the world’s most economically-free regions, is plainly a proxy for a wider fight about China’s future—a future in which Beijing has made clear does not include much room for political freedom and rule of law. Then there is the...
Wealth inequality is a First World problem
As the West has e progressively more interventionist, concern with e inequality” has been eclipsed by “wealth inequality.” However, that focus betrays a certain blindness to a vital economic reality. Measures of equality and inequality tell us nothing about what really matters: a society’s prosperity or poverty. Communist societies were far from equal in practice. However, modern concerns about inequality focus on the fact that the free market does not reward all labor evenly. Yet the West’s efficiency creates the...
2019 Calihan Lecture Video: Religion, Society, and the Market
Last month, Prof. Giuseppe Franco received the 2019 Novak Award at the University of San Diego where he delivered the 19th Annual Calihan Lecture on “Religion, Society, and the Market: The Legacy of Wilhelm Röpke.” Watch the video now: TheNovak Awardrecognizes scholars early in their academic career who demonstrate outstanding intellectual merit in advancing the understanding of theology’s connection to human dignity, the importance of the rule of law, limited government, religious liberty, and freedom in economic life. Each Award...
The rise of ‘woke’ culture: Lessons on the power of institutions
We continue to see the ill effects of “cancel culture” and safetyism, whether through student-led riots and intimidation efforts at colleges and universities, the garden-variety intolerances of “woke capitalism,” or the self-destructive interventionism of “bulldozer parenting.” As far as how it’s e to be, we have explanations aplenty, from declines in religious life to the fraying of the social fabric to rises in political fragmentation and polarization. In an essay at Heterodox Academy, Musa Al-Gharbi points to yet another: a...
Samuel Gregg: Marco Rubio’s ‘soft corporatism won’t help workers’
Senator Marco Rubio, R-FL, touched off a debate about the values of capitalism with his remarks on mon-good capitalism” on November 5 at the Catholic University of America. Today, Acton Institute Director of Research Samuel Gregg offers his assessment at Law & Liberty, where he traces Rubio’s thought to one of the most influential political philosophies in postwar Western European history. Sen. Rubio’s speech, titled “Catholic social doctrine and the dignity of work,” holds that the state must do more...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved