Richard Rohr Meditation: The Source of Action

The effectiveness of action depends on the source from which it springs. If it is coming out of the false self with its shadow side, it is severely limited. If it is coming out of a person who is immersed in God, it is extremely effective. The contemplative state, like the vocation of Our Lady, brings Christ into the world. —Thomas Keating [1]

.. I founded the Center for Action and Contemplation in 1987 because I saw a deep need for the integration of both action and contemplation. Over the years, I met many social activists who were doing excellent social analysis and advocating for crucial justice issues, but they were not working from an energy of love. They were still living out of their false self with the need to win, the need to look good—attached to a superior, politically correct self-image.

They might have the answer, but they are not themselves the answer. In fact, they are often part of the problem. That’s one reason that most revolutions fail and too many reformers self-destruct from within. For that very reason, I believe, Jesus and great spiritual teachers first emphasize transformation of consciousness and soul. Without inner transformation, there is no grounded or lasting reform or revolution. When subjugated people rise to power, they often become as dominating as their oppressors because the same demon of power hasn’t been exorcised in them.

We are easily allured by the next new thing, a new agenda that looks like enlightenment. And then we discover it’s run by unenlightened people who, in fact, love themselves first of all but do not love God or others. They do not really love the Big Truth, but they often love control. Too often, they do not love freedom for everybody but just freedom for their own ideas.

Untransformed liberals often lack the ability to sacrifice the self or create foundations that last. They can’t let go of their own need for change and cannot stand still in a patient, compassionate, and humble way. It is no surprise that Jesus prayed not just for fruit, but “fruit that will last” (John 15:16). Untransformed conservatives, on the other hand, tend to idolize anything that lasts, but then avoid the question, “Is it actually bearing any fruit?” This is the perennial battle between idealism and pragmatism, or romanticism and rationalism.

If we are going to have truly prophetic people who go beyond the categories of liberal and conservative, we have to teach them some way to integrate their needed activism with a truly contemplative mind and heart. I’m convinced that once you learn how to look out at life from the contemplative eyes of the True Self, your politics and economics are going to change on their own. I don’t need to teach you what your politics should or shouldn’t be. Once you see things contemplatively, you’ll begin to seek the bias from the bottom instead of the top, you’ll be free to embrace your shadow, and you can live at peace with those who are different. From a contemplative stance, you’ll know what action is yours to do—and what is not yours to do—almost naturally.

The Economics of the Civil War

In 1805 there were just over one million slaves worth about $300 million; fifty-five years later there were four million slaves worth close to $3 billion. In the 11 states that eventually formed the Confederacy, four out of ten people were slaves in 1860, and these people accounted for more than half the agricultural labor in those states. In the cotton regions the importance of slave labor was even greater. The value of capital invested in slaves roughly equaled the total value of all farmland and farm buildings in the South.

.. Looking at Figure 1, it is hardly surprising that Southern slaveowners in 1860 were optimistic about the economic future of their region. They were, after all, in the midst of an unparalleled rise in the value of their slave assets.

.. The Northern states also had a huge economic stake in slavery and the cotton trade. The first half of the nineteenth century witnessed an enormous increase in the production of short-staple cotton in the South, and most of that cotton was exported to Great Britain and Europe. Figure 2 charts the growth of cotton exports from 1815 to 1860. By the mid 1830s, cotton shipments accounted for more than half the value of all exports from the United States. Note that there is a marked similarity between the trends in the export of cotton and the rising value of the slave population depicted in Figure 1. There could be little doubt that the prosperity of the slave economy rested on its ability to produce cotton more efficiently than any other region of the world.

.. The income generated by this “export sector” was a major impetus for growth not only in the South, but in the rest of the economy as well. Douglass North, in his pioneering study of the antebellum U.S. economy, examined the flows of trade within the United States to demonstrate how all regions benefited from the South’s concentration on cotton production (North 1961). Northern merchants gained from Southern demands for shipping cotton to markets abroad, and from the demand by Southerners for Northern and imported consumption goods. The low price of raw cotton produced by slave labor in the American South enabled textile manufacturers — both in the United States and in Britain — to expand production and provide benefits to consumers through a declining cost of textile products. As manufacturing of all kinds expanded at home and abroad, the need for food in cities created markets for foodstuffs that could be produced in the areas north of the Ohio River. And the primary force at work was the economic stimulus from the export of Southern Cotton. When James Hammond exclaimed in 1859 that “Cotton is King!” no one rose to dispute the point.

.. One “economic” solution to the slave problem would be for those who objected to slavery to “buy out” the economic interest of Southern slaveholders. Under such a scheme, the federal government would purchase slaves. A major problem here was that the costs of such a scheme would have been enormous. Claudia Goldin estimates that the cost of having the government buy all the slaves in the United States in 1860, would be about $2.7 billion (1973: 85, Table 1). Obviously, such a large sum could not be paid all at once. Yet even if the payments were spread over 25 years, the annual costs of such a scheme would involve a tripling of federal government outlays (Ransom and Sutch 1990: 39-42)! The costs could be reduced substantially if instead of freeing all the slaves at once, children were left in bondage until the age of 18 or 21 (Goldin 1973:85). Yet there would remain the problem of how even those reduced costs could be distributed among various groups in the population. The cost of any “compensated” emancipation scheme was so high that even those who wished to eliminate slavery were unwilling to pay for a “buyout” of those who owned slaves.

.. Beard and Hacker focused on the narrow economic aspects of these changes, interpreting them as the efforts of an emerging class of industrial capitalists to gain control of economic policy. More recently, historians have taken a broader view of the situation, arguing that the sectional splits on these economic issues reflected sweeping economic and social changes in the Northern and Western states that were not experienced by people in the South. The term most historians have used to describe these changes is a “market revolution.”

.. In 1860 6.1 million people — roughly one out of five persons in the United States — lived in an urban county. A glance at either the map or Table 2 reveals the enormous difference in urban development in the South compared to the Northern states. More than two-thirds of all urban counties were in the Northeast and West; those two regions accounted for nearly 80 percent of the urban population of the country. By contrast, less than 7 percent of people in the 11 Southern states of Table 2 lived in urban counties.

.. In the South, the picture was very different. Cotton cultivation with slave labor did not require local financial services or nearby manufacturing activities that might generate urban activities. The 11 states of the Confederacy had only 51 urban counties and they were widely scattered throughout the region. Western agriculture with its emphasis on foodstuffs encouraged urban activity near to the source of production. These centers were not necessarily large; indeed, the West had roughly the same number of large and mid-sized cities as the South. However there were far more small towns scattered throughout settled regions of Ohio, Indiana, Illinois, Wisconsin and Michigan than in the Southern landscape.

.. Settlement of western lands had always been a major bone of contention for slave and free-labor farms. The manner in which the federal government distributed land to people could have a major impact on the nature of farming in a region. Northerners wanted to encourage the settlement of farms which would depend primarily on family labor by offering cheap land in small parcels. Southerners feared that such a policy would make it more difficult to keep areas open for settlement by slaveholders who wanted to establish large plantations. This all came to a head with the “Homestead Act” of 1860 that would provide 160 acres of free land for anyone who wanted to settle and farm the land. Northern and western congressmen strongly favored the bill in the House of Representatives but the measure received only a single vote from slave states’ representatives. The bill passed, but President Buchanan vetoed it.

.. Southerners, with their emphasis on staple agriculture and need to buy goods produced outside the South, strongly objected to the imposition of duties on imported goods. Manufacturers in the Northeast, on the other hand, supported a high tariff as protection against cheap British imports. People in the West were caught in the middle of this controversy. Like the agricultural South they disliked the idea of a high “protective” tariff that raised the cost of imports. However the tariff was also the main source of federal revenue at this time, and Westerners needed government funds for the transportation improvements they supported in Congress.

.. In 1834 President Andrew Jackson created a major furor when he vetoed a bill to recharter the Second Bank of the United States. Jackson’s veto ushered in a period of that was termed “free banking” in the United States, where the chartering and regulation of banks was left entirely in the hands of state governments. Banks were a relatively new economic institution at this point in time, and opinions were sharply divided over the degree to which the federal government should regulate banks. In the Northeast, where over 60 percent of all banks were located, there was strong support by 1860 for the creation of a system of banks that would be chartered and regulated by the federal government. But in the South, which had little need for local banking services, there was little enthusiasm for such a proposal.

.. They see the economic conflict of North and South, in the words of Richard Brown, as “the conflict of a modernizing society”

.. James McPherson, argues that Southerners were correct when they claimed that the revolutionary program sweeping through the North threatened their way of life

.. Most writers argue that the decision for war on Lincoln’s part was not based primarily on economic grounds. However, Gerald Gunderson points out that if, as many historians argue, Northern Republicans were intent on controlling the spread of slavery, then a war to keep the South in the Union might have made sense. Gunderson compares the “costs” of the war (which we discuss below) with the cost of “compensated” emancipation and notes that the two are roughly the same order of magnitude — 2.5 to 3.7 billion dollars (1974: 940-42). Thus, going to war made as much “economic sense” as buying out the slaveholders.

.. the only way that the North could ensure that their program to contain slavery could be “enforced” would be if the South were kept in the Union. Allowing the South to leave the Union would mean that the North could no longer control the expansion of slavery anywhere in the Western Hemisphere

Ask HN: What are your predictions for the next 10 years for our daily lives?

Overfishing is a regulatory, not technical, problem.Though I do think many of the hardest problems today are regulatory (climate, health, digital political advertising), not necessarily technical.

I disagree. Regulations and technology go hand-in-hand. Often the technology comes first and regulations try to keep up.

.. what skills/traits allow a person to make such predictions with high accuracy?One thing is that I think you need a pretty wide set of priors–breadth. Stuff like history, anthropology, economics, the history of art. Lots of knowledge about human behavior, politics, culture, stuff like how emotions guide behavior, etc.

When I look at a typical STEM education, we deliberately don’t prioritize this stuff. We know lots of things about how electrons behave and which sorts of functions grow the fastest and how cellular mitosis works. Not as much about why empires fall, the role of greed in political revolutions, or the changing role of women over the last 500 years. I think this puts HNers (I think STEM people are probably overrepresented here) at a significant disadvantage at making these kinds of broad predictions.

The thing we do have going for us is our ability to understand the course technology is going to take: what’s possible, what will and won’t work, and why.

I also wonder whether the people you’re around influence your ability to predict what’s next. On one hand, it’s a well-established fact in social science that many social trends, at least in the US (things like marriage and divorce rates, educational trends, changing attitudes around dating, purchasing behaviors), start in the upper-middle classes, as they have the numbers (population) to make real differences in buying habits, politics, etc., whereas the rich have more money but much smaller population. On the other hand, the lower classes in the US vastly outnumber what I’d consider a typical HN reader. Something like 70% of US adults don’t even have a bachelor’s degree, and the US median income for an individual is around $40K. Keep that in mind as you think about this stuff.

.. One of the things I find most striking when watching old movies is the general attitude of people toward tech.

If you look at movies from the 70s and 80s, conspicuous display of tech was common. Look at stereo systems of the time, and how people treated mobile phones (they were huge and conspicuously displayed). This partially echoes the “machine age” [1] of the early 20th century, a a time when tech was seen as “modern” and a force for progress.

Whereas these days, we want things to be light, invisible, and out of the way. That’s a major change in attitude.

I actually feel we might see fewer “screens” in the next few years if the combination of voice and AI becomes powerful enough that most things can be done by voice or thought. I think more and more decision-making (things like which plane to book/flight to take/etc) will be made by automated systems that know our preferences and we’ll be picking from fewer and fewer menus. Sort of like a human assistant, but available to the masses and more accurate. Google’s Duplex is a big step in this direction. The key is ceding more decision-making authority to software.

In any case, I wouldn’t be surprised if we all just have earphones, either over-the-ear, or implanted in our heads, in 15 years. The broader theme is that I think we’ll want things to be invisible rather than visible.

I also think you’re right that the rich will want less of this stuff. There’s already a huge socioeconomic difference in how people use tech. Look at how a rich family eats in the US today vs. a poor family. Rich families put their phones away, poor families spend the entire dinner posting stuff on Snap. Just walk into a burger king vs. a fine dining restaurant to see that trend in action.

The Case for the Wage Subsidy

Americans across the political spectrum should focus on how best to spend government money already slated to go out the door.

.. The controversial subsidies that New York and Washington offered Amazon to attract its “HQ2” are not some novel approach to economic development. Last year, Wisconsin offered a larger package of incentives to entice electronics supplier Foxconn, assembler of iPhones, to build a $10 billion manufacturing facility in Wisconsin. Annual payroll for 13,000 workers would exceed $700 million, and Wisconsin expected the plant to generate annual state and local tax revenue of $181 million and lead to the creation of 20,000 additional jobs. Critics panned the deal as corporate welfare, to which Governor Scott Walker fired back, “That’s fine, but I think they can go suck lemons.”

.. The value of the subsidy would be set relative to a “target wage” of, say, $15 per hour and would close half the gap between the market wage and the target. A worker would initially receive a subsidy of $3 per hour in this case, equal to approximately $6,000 per year if he worked full-time.

.. This differs from most programs that transfer resources to lower-income households, including the EITC, which phase out as the household’s total income rises; for every additional dollar earned by the household, the worker loses some of the benefits he was receiving. With the direct wage subsidy, the worker receives the same subsidy for every hour worked at a given wage, no matter how much total income he earns. He can take a second job and earn the subsidy for each of those hours. His wife can take a job and earn her own subsidy, too. The value of the subsidy declines only as workers become more productive, earning promotions and raises.
.. First, the wage subsidy is the appropriate mechanism for redistributing gains from the economy’s “winners” to its “losers.” It comes closest to doing this directly, by taking tax revenue drawn from higher earners and inserting it directly into the paychecks of lower earners.
.. Second, the wage subsidy offsets subsidies given to foreign producers and moves the cost to employers for domestic workers closer to parity with what firms pay foreign workers living in sharply different social and economic contexts. The benefit is largest for industries where the work is most labor-intensive and relies on the lowest-cost labor — in other words, the industries under greatest pressure from globalization. But it does this through a neutral structure
..  A community lacking the ability to export (even to the rest of the nation) must rely on government transfer payments to fund the resources it requires from the outside world — the community is literally exporting need. The existing American safety net conditions those transfers on very low incomes — often, no work at all — and channels them primarily toward consumption of health-care services. With a wage subsidy, work, rather than unemployment, draws government support, and that support can flow to a fuller range of productive activities in the community. In this model, a services economy can still thrive disconnected from a tradeable sector — not an ideal arrangement but one far better than today’s.

This invites the question, Isn’t the wage subsidy just another form of redistribution, like all the safety-net programs we already have? Yes and no. Yes, it is redistribution. And yes, high-income taxpayers will finance it. But unlike with government assistance disconnected from work, the value of a productive job through which someone supports her family and contributes to her community is not diluted if it yields a paycheck into which the government has put in more than it takes out. Certainly a society of thriving and perfectly self-sufficient families would be preferable. But America is nowhere near such a reality today, and for some people, it may never happen. If we can at least make redistribution a tool for creating jobs and promoting work, we will be moving the labor market in the right direction and delivering better outcomes for those who need support.

.. They might accept a subsidy as a replacement for existing safety-net programs, but if cutting safety-net spending is on the table, many would prefer to spend that savings on a growth-generating tax cut.
.. What really infuriates Democrats, meanwhile, is the possibility that employers might benefit. Factually speaking, they have a point. If the government offers a $3 subsidy atop a $9-per-hour job, the result will not necessarily be a $12-per-hour job. The employer might instead cut the market wage to $8, to which the government would add $3.50 — half the $7 gap to the target wage of $15 — leaving the worker with $11.50. Both worker and employer are better off than without the subsidy, but the entire benefit is not the worker’s.
.. roughly 75 percent of the financial benefit accrued to workers. In general, employers have to benefit at least somewhat. A central premise of the wage subsidy is to pull more prospective workers into the labor force. Other things held equal, if the supply of workers increases, then employers will be able to offer lower wages — even as, thanks to the subsidy, workers take home more... Remember, the wage subsidy’s goal is not only, or even primarily, to transfer resources into the pockets of low-income households. It is also to connect more workers with employers in permanent jobs. The task requires employers to do the hard work of hiring and training certain employees whom they otherwise would not, and this benefits society greatly.

A central premise of the wage subsidy is to reward employers sufficiently so that they choose to do more. By contrast, just wishing that firms would create more and better jobs when they have no economic incentive to do so is futile; it has zero bearing on what will happen in the actual labor market.

.. Note that this need to create incentives for the employer is no different from what happens in any other effort at assisting low-income households in a market economy. When people use food stamps at the supermarket, the supermarket benefits. When they use housing vouchers to pay the rent, the landlord benefits. Unless the government wishes to produce everything itself, or order market participants to take actions against their own interests, efforts to deliver results that the market will not deliver for low-income households always benefit the businesses that choose to participate in the transactions. Otherwise, they wouldn’t participate!

.. It is a strange consequence of our commitment to individuals as consumers that we unthinkingly pay hundreds of billions of dollars each year to hospitals and universities to provide treatment and education to customers whom they otherwise would turn away but that we shrink from the idea that society might pay anything to an employer to hire someone he otherwise would not.

.. Just as the Republican party’s relative disinterest in the labor market is made apparent by its preference for a tax cut over a wage subsidy, a good distillation of the Democrats’ core attitude toward the labor market emerges from comparing a wage subsidy to their preferred approach: the minimum wage. Raising the minimum wage is the quintessential left-of-center labor-market policy. Unsatisfied with the market outcome, Democrats suggest decreeing a different one. The outcome it professes to deliver is widely desired. It seems “free.” And then it damages, rather than strengthens, the labor market.

.. The minimum wage and the wage subsidy both aim to raise the earnings of low-wage workers, but whereas the wage subsidy asks taxpayers to make up the difference, the minimum wage asks employers to

.. The wage subsidy injects funds from outside the labor market to boost the formation of employment relationships and encourage greater investment in labor-intensive businesses. The minimum wage does the opposite, operating as a tax on low-wage employment that employers have to pay for every low-wage hour they use.

.. The roughly $200 billion price tag for a wage subsidy might require some new tax revenue, but its funding could come largely from the existing safety net, which already dedicates more than $1 trillion annually to low-income households