Dr. Paul Cleveland, a retired professor of economics and finance, was invited on Priority Talk Radio with ALCAP President Greg Davis to discuss the relationship between the economy and the upcoming presidential election. They began by emphasizing that a single vote, while important, is not going to change the outcome of an election. Also, there are a large number of issues to consider and endless complexities attached to them; a single person cannot be an expert on everything. With all this in mind, voters tend to be “rationally ignorant” (a term given by Dr. Cleveland) and care about the issues that matter most to them.
They moved to Vice President Kamala Harris’ suggested plan to prevent price-gouging, which Paul said would “make sure the shelves [in grocery stores] are empty of food.” Economic laws dictate that manipulating prices to that degree would lead to shortages of product and mass closings of businesses. He walked through the importance of allowing prices to go up during disasters: When demand for certain items skyrocket and supply of those items decrease due to scarcity and supply chain issues, prices will naturally go up. That is not an evil thing. Price change reflects the market. When the government inserts its hand into the free market and meddles with prices, businesses close and more people are hurt.
Paul and Greg discussed whether or not God prefers certain economic systems over others. Dr. Cleveland brought up the 8th, 9th, and 10th commandment (from the 10 Commandments in Exodus 20). He talked about how socialism involves the forced redistribution of wealth; this is theft, and thus against the 8th commandment. The government also lies to people about the money that it takes and how it’s being used (thus breaking the 9th commandment). Finally, socialism and communism involves coveting the abilities and resources of others and hating the rich because they are rich (thus breaking the 10th commandment). Ultimately, an acceptable economic system is one that does not violate God’s commandments.
Other topics covered in the wide-ranging conversation include defining capitalism and socialism, minimum wage laws, unions, and more. To listen to the entire conversation, click here.