Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Monday, January 14, 2019

A return to orders...

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Of late, I am rereading formative books I read long ago, or finally chipping away at that endless list of "books I've been meaning to read for a while now,"[1] and I'm currently enjoying Vinoth Ramachandra's staggeringly good, yet seemingly underrated, Gods That Fail: Modern Idolatry & Christian Mission (Downers Grove, IL: InterVarsity Press, 1996). The book was life-changing for me, not only because it cemented my conception of Christianity as a global missionary religion (particularly by opening my eyes to Christianity in Southeast Asia, which was a factor in my decision to live and serve in Taiwan for what ended up being nine years, and where I met my wife!), but also because it introduced me to the work of Fr. Stanley Jaki, which was a crucial factor in my conversion to Catholicism. 


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Ramachandra's second book, Faiths in Conflict? Christian Integrity in a Multicultural World (IVP, 1999), was just as enriching, though mainly by deepening my understanding of and appreciation for Southeast Asia. I have not had a chance to read his most recent book, Subverting Global Myths: Theology and the Public Issues Shaping Our World (London: SPCK, 2008), but I intend to do so once I finish rereading the first two books. 


As an author, Ramachandra is as challenging as he is edifying because of the intellectual balancing act he performs, and which he makes the reader perform with him. On the one hand, he gleefully and deftly skewers anti-European, anti-Christian propaganda that portrays Christianity as a means of oppression by the West, or that non-Christian cultures were and are better off before and without Christian influence. On the other hand, he is anything but a stooge for Western neo-liberal progressivism, and denounces globalist malfeasance just as deftly. He casually uses buzzwords that reflexively give American conservatives, like myself, the jitters, but does so amidst a larger argumentation that ultimately undermines the ideology behind those buzzwords, and behind much of what passes for American conservatism these days, in order to hobble them in subjection to the demands of the Gospel.  

The following passages, beginning on page 116 of Gods That Fail, arrested me not only because it nicely captures Ramachandra's ability to hobble non-Christian idols on both sides of the aisle, as it were, but also because it ties in well with discussions I've had over the past couple years about "Making America Great Again" versus "Making Americans Godly Again."

Let us join Ramachandra on the tightrope: 

Development is one of those words which, far from being innocuous, has served to reinforce the hold of modern idols over vast populations in the Third World (or, the South, to use a geographically appropriate term). It has become a source of propaganda for a particular way of life. In other words, it is an ideology. ... From 'westernization' to 'modernization' to 'development': images that turned the West, whether in its capitalist or socialist expressions, into the definer of the 'good life' for men and women across the globe.  
Not surprisingly, 'development' became a neo-colonial [gasp! a librul buzzword!] project through which an aggressive, expanding Corporation Culture sought to establish a bridgehead among political and commercial elites of the Third World. The attraction of 'development' is that it has brought substantial improvements [gasp! a neo-conservative talking point!] in health care, education and general well-being to scores of people inmany [sic] countries. But it has , more often than not, given legitimacy to the acquisition and control of other people's resources, inevitably increasing poverty and distress under the guise of eliminating them. 

"It never ceases to amaze me," continues Ramachandra on page 117,

how many Christians, in the North and the South, continue to refer to the former as the 'developed' and the latter as the 'developing' world. ... All our normative images and yardsticks of 'devcelopment' are ideologically 'loaded'. Who dictates that mushrooming TV ariels and skyscrapers are signs of 'development'? Who, apart from the automobile industry and the advertising agencies, seriously believes that a country with six-lane highways and multi-story car-parks is more 'developed' than one whose chief mode of transport is railways? Does the fact that there are more telephone lines in Manhatten [sic], New York than in the whole of sub-saharan Africa, mean that human communication is more developed in the former than in the latter?

Keep in mind that I read these words shortly before I (grudgingly) bought my first cellphone, and Ramachandra wrote them years before the explosion of social media that now dominate our lives. And yet, his critique is just as salient, if not more so, for predating our "new and improved" means of "keeping in touch." But Ramachandra's bipartisan critique is not over yet. 

The commonest measure of 'development' (on the basis of which entire societies are classified hierarchically) is the Gross National Product per capita. That improving levels of income are an important aspect of human well-being..., I do not deny. But GNP per capita tells us nothing about the distribution of income in a given society. It is a well-observed fact that, even as the GDP per capita increases by leaps and bounds, the purchasing power of whole segments of the population may decline and levels of of absolute poverty in the country actually increase. As we saw in Chapter 2, no Christian assessment of human well-being can ignore the issue of distributive justice, the access of the poor to the wealth that is generated. [p. 118]

Ramachandra is referring to arguments he mounted beginning on page 44. "The privileged, who may also happen to be 'religious," notes Ramachandra, 

often feel that their social and economic privileges are somehow a solemn, basic, God-given right. In many legal systems down to the present day, the sanctity of private property has been upheld ... with greater religious indignation than the sanctity of human life. As the economist John Kenneth Gilbraith comments, tongue-in-cheek, 'The sensitivity of the poor to injustice is a trivial thing compared with that of the rich'.[2] But, someone may object, what about the apostle Paul's injunction to Christians to be content with their material state (1 Tim 6:6ff)? 

Firstly, answers Ramachandra, "Paul is not addressing those whom modern economists would describe as the 'absolute poor': namely those people ... whose basic needs of nutrition, clothing, health care and housing have not yet been met." On the contrary:

He assumes (in v.8) that these primary human requirements have been satisfied.... Where these needs have not been satisfied, it is usually because of a failure to share material resources, which in turn is a result of the arrogance of the rich and their refusal to fulfil their obligations to the poor (see v.17,18). Secondly, Paul's warnings are not directed at the legitimate aspirations on the part of the poor to be freed from exploitation and material want. Rather they are directed at human greed, the 'love of money' (v.10), the spirit of acquisitiveness which is rampant among 'the rich in this present world' and which leads to idolatry and a false sense of security (v.17; cf Col. 3:5). ... [In a word,] Paul's warnings are based on the assumption that a world of gross material inequality is a world that is dominated by false gods, by empty sources of security (v. 7,17). 

Ramachandra continues by reminding us that "the great thinkers and preachers of the Christian church have affirmed the economic rights of the poor" (p. 45). "Not only did they remind the relatively well-to-do of their charitable duty to the poor," argues Ramachandra, "but they also insisted on the right of access on the part of the poor to adequate means of sustenance." As St. Ambrose teaches, "Not from your own do you bestow upon the poor man, but you make return from what is his."[3] Even more boldly, notes Ramachandra, did St. John Chrysostom preach: 

That is also theft, not to share one's possessions. ... [T]he rich man is a kind of steward of the money which is owed for distribution to the poor. ... So if he spends more on himself than his needs require, he will pay the harshest penalty hereafter. ... [N]ot to share our own wealth with the poor is theft from the poor and deprivation of their means of life.[4] 

Presumably heading off a "conservative" objection to his "liberal" arguments, Ramachandra notes that the suggestion "that the concept of rights is a product of the humanism of the Enlightenment, is historically misleading."

Although the word 'rights' may not have appeared with much frequency in the great patristic and medieval church leaders, the thought that the poor in society have legitimate claims on the rich..., and that to withold what was in one's power to grant in situations of material deprivation was to do moral injury to the poor, permeates their writings. [As such, it] is morally permissible for an extremely impoverished person to take what he or she needs for sustenance from a person who has plenty.

More concretely, Ramachandra explains, "If I have food in my house which you need for your survival, but which is not indispensable for mine, then it rightfully belongs to you." As a result, "If I offered it to you, it would not be an act of charity on my part as much as granting you your rights under God." Ramachandra then invokes the teaching of St. Thomas Aquinas in Summa Theologica: 

In cases of need all things are common property, so that there would seem to be no sin in taking another's property, for need has made it common.... Hence whatever certain people have in superabundance is due by natural law, to the purpose of succoring the poor.[5]

An obvious retort -- and certainly my own reflex -- is to say that, in our modern world, and in our daily lives, it is so rare to encounter so radical a case of need that theft against us would be mere justice. However, the retort seems to prove too much, since, if there are no realistic conditions under which we could see ourselves being obliged to follow the injunctions levied above, then we are effectively removing the moral burdens of the traditional teaching about distributive justice. In other words, if we no longer have to worry about the demands of distributive justice "in our day," then it follows that distributive justice is not a universally (i.e., transhistorically and transculturally) binding moral principle. As such, it was never, in principle, a binding principle, and therefore we are refuting the teaching of Sts. Paul, Ambrose, John Chrystostom, Thomas, et al. Rather than parrying the implications of the Christian teaching about distributive justice with sophistical qualifications, it behooves us to discover fresh applications of the Christian teaching, beginning in our own lives and communities.

Meanwhile, how did such materialistic sophistry come to hold sway in the modern Western Christian mind? Part of the problem, according to Ramachandra, is that "the market mechanism for allocating resources was raised to a semi-divine status by Adam Smith's (1723-1790) occult notion of an 'invisible hand' steering human self-interest to socially beneficent ends" (p. 110). In Smith's defense, argues Ramachandra, "Smith has been associated, rather unfairly, with the nineteenth-century [and Social-Darwinian] advocates of laissez-faire capitalism and their counterparts in the post-Thatcher-Reagan era in the West." Smith's main concern, contends Ramachandra

was to defend free trade against mercantilist arguments that a strong government was needed to protect the interests of producers. Many of the mercantilist writers were themselves merchants who saw their own interests as best served by a nation-state which used economic policy as a means of reinforcing its own power. Smith rejected any action by government which discriminated against some citizens by supporting the interests of others.

Modern defenders of laissez-faire capitalism shore up their ideology in Smith's name by leaving his position at that, but thereby do him a great injustice. For, as Ramachandra clarifies, "while [Smith] opposed any government intervention in the operation of markets, he was aware of the responsibility of government to protect human welfare." It is often overlooked that Adam Smith was a professor of moral philosophy, and only accidentally an economic philosopher. Indeed, his 1759 book, The Theory of Moral Sentiments, not only predated his famous The Wealth of Nations by seventeen years, but also classified "Economics" as a subset of, or at least a shorthand name for, "Familial Rights." 



As such, his economic theories were intended to be read in the context of his larger moral philosophy. It is in that context, Ramachandra notes, that Smith 

defined three duties of government, the latter two proving a source of embarrassment to advocates of 'minimalist' government who look to Smith for support: namely, the 'duty of protecting, as far as possible, every member of society from the injustice or oppression of every other member of it', and 'the duty of of erecting and maintaining certain public works and certain public institutions which can never be for the interest of any individual or small number of individuals...'[6] 

"Smith," Ramachandra concludes on page 111, "may be the patron saint of capitalism and neo-classical economics, but like all such saints his texts are used selectively by his devotees"—just ask Sts. Paul, Ambrose, John Chrysostom, Thomas Aquinas, et al. 

With the larger moral context of Smith's economic theories in mind, and the larger demands of Christianity in the socioeconomic sphere fresh in our hearts, let us return to Ramachandra's previously cited critique of 'development' (p. 118). Not only, recall, does a higher GNP per capita not necessarily result in equal development for all, but "a nation's GNP only indicates the volume of circulation of goods and services in the economy [i.e., among families]." Beyond that, however, the GNP per capita "tells us nothing about the quality of those goods and services: are they beneficial or harmful, do they enrich or damage life, do they meet the actual needs of the community?" In other words, to recall an earlier dichotomy," is a robust economy "Making America Great Again" at the expense of "Making Americans Godly Again"? If so, how we can harmonize the two aims? 

Until we achieve such a reconciliation, Ramachandra notes laconically that it "is perfectly possible to have a society with a high GNP per capita, thriving solely on the manufacture and export of armaments, heroin, tobacco and pornography." (Some might call this a libertarian utopia, but I digress.) The question Ramachandra imposes upon us is, "Would such a [commercially successful] society be regarded as 'developed'?" Under the reigning neo-liberal ideology, it would, contends Ramachandra.

In any case, I trust that the foregoing suffices to demonstrate why Ramachandra is an author well worth exploring.

NOTES:

[1] Hence, "a return to orders" I placed long ago.

[2] The Age of Uncertainty (London: BBC, 1972), p. 22.

[3] Quoted in C. Avila, Ownership: Early Christian Teaching (Maryknoll, NY: Orbis, 1983), p. 50.

[4] On Wealth and Poverty, tr. Catherine Roth (New York: St. Vladimir's Seminary Press, 1984), pp. 49-55.

[5] Pt II-II, Q66, Art 7, tr. by Fathers of the English Dominican Province (New York: Benzinger Bros., 1948).

[6] An Inquiry into the Nature and Causes of the Wealth of Nations (1776), ed. Edwin Cannan (1904) (Chicago: University of Chicago Press, 1976), Vol. 2, pp. 208-209.

Monday, March 19, 2012

Microcogditations from the front…

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This humidity must be part of my penance the priest slipped in when I wasn't listening. Despite everything, Marcus Aurelius never had to deal with this weather!
#TropicalKickToTheHead #Stoicism

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""Both [Paganism & Stoicism] were consistent, philosophical, and exalted... [but] the first leads logically to murder and the second to suicide. ... It is only the Mystic, the man who accepts the contradictions [of life], who can laugh and walk easily through the world." - GKC

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Passing an ad for plastic surgery, asked wife if she wants that. Bugged eyes: "No. I'm beautiful."
#MyWifeRocks

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The nail in the coffin for FTL Neutrinos: LINK.

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I stand sideways in conversations so people realize I want to go, but doing so only seems to drag it out.
#YouDoItToYourself #Fail

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I'm leery of writing his O'ness' name in conjunction with the HHS struggle, since doing so not only misses the point (i.e. it's bigger than him, if not bigger than his ego), but also risks making opposition to HHS qua "O____care" a political campaign, at which point religious opponents of HHS have overstepped the very bounds they're trying to protect.

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@eckharttolle "Real love doesn't make you suffer. How could it?" By making you sacrifice, how about? Saying "I love you" even when you don't 'feel' it is just what validates your love: the difference between loving and being "in love".
#SacredHeart #Crucifixion

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George Clooney arrested in Washington, D.C. "for protesting Sudan’s attacks on its Nuba people."
"How many more bodies until the Nuba mountains become the next Darfur?"

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My friend wanted to let me be happy in my "new baby" bubble, filter bad news, but I kneel to a crucified peasant everyday: my bubble is… congenitally open.
#SacredHeart #Crucifixion

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The duality of human fecundity (maker/medium, male/female, thought/act) finds unity in the absolute simplicity of God as all-wise Creator. Mary's virgin motherhood is but a portrait of the deeper mystery of God's virgin fatherhood. God as Spirit thus transcends and grounds sex. Atheism is ontological solipsism.
#AnalogiaEntis

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It must never be forgotten that economy originally meant family budget.
#Distributism

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Scientismatics want a final theory, a theory which would in principle be universally valid, and thus physically deductive, yet they reject religion i.a. because theistic claims are "not in principle" falsifiable. Huh?
#scientism #CultofGnu

Monday, February 6, 2012

The big antlers serve the good of the species by enhancing reproductive success...

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The core of Frank's thesis is that unmitigated self-interest does not, according to Darwinian awareness, produce the larger, collective, common good.

Money is only forty years old, and having a mid-life crisis....

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A spledind lecture, a solid historical precis. I found 16:00 onwards for a little while most intriguing, since, yes, "distributed" commerce is mentioned.

For some, the lecturer's accent may make the lecture...

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For others, less aesthetically gifted, the content will have to stand on its own.

The upshot is that, unless ethics suffuse economics, the idol of economic efficiency will effectively censor (and reconstruct) people by giving them over to their own insular, most efficiently satisfied impulses.

Note the parallels he draws between education and industrialization...

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Thursday, February 2, 2012

We can't strike out on this one…

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Conscience Protection

Bishops Vow to Fight Coercive HHS Mandate




Watch his video
&
take action today!

Call the U.S. Capitol switchboard at: 202-224-3121, or call your Members’ local offices.

Send an e-mail through NCHLA’s Grassroots Action Center at: HERE.


Cardinal-designate Timothy Dolan, president of the USCCB, sharply criticized the decision by the Obama administration in which it "ordered almost every employer and insurer in the country to provide sterilization and contraceptives, including some abortion-inducing drugs, in their health plans.... Never before has the federal government forced individuals and organizations to go out into the marketplace and buy a product that violates their conscience. This shouldn't happen in a land where free exercise of religion ranks first in the Bill of Rights."

Freedom, schmeedom…

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U.S. Bishops Vow to Fight HHS Edict

January 20, 2012


The Catholic bishops of the United States called “literally unconscionable” a decision by the Obama Administration to continue to demand that sterilization, abortifacients and contraception be included in virtually all health plans. Today's announcement means that this mandate and its very narrow exemption will not change at all; instead there will only be a delay in enforcement against some employers.

“In effect, the president is saying we have a year to figure out how to violate our consciences,” said Cardinal-designate Timothy M. Dolan, archbishop of New York and president of the U.S. Conference of Catholic Bishops.

The cardinal-designate continued, “To force American citizens to choose between violating their consciences and forgoing their healthcare is literally unconscionable. It is as much an attack on access to health care as on religious freedom. Historically this represents a challenge and a compromise of our religious liberty. … The government should not force Americans to act as if pregnancy is a disease to be prevented at all costs….”

“This is nothing less than a direct attack on religion and First Amendment rights,” said Franciscan Sister Jane Marie Klein, chairperson of the board at Franciscan Alliance, Inc., a system of 13 Catholic hospitals. …

Daughter of Charity Sister Carol Keehan, president and chief executive officer of the Catholic Health Association of the United States, voiced disappointment with the decision[:] … “This was a missed opportunity to be clear on appropriate conscience protection….”

Pay up…

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Get ready to pay. …

Secretary of Health and Human Services and pro-abortion Catholic Kathleen Sebelius [has] announced that the proposed mandate requiring all insurance plans to pay for contraception, sterilization and some abortion drugs is official -- and Catholics cannot escape….

Cardinal-designate Timothy M. Dolan responded…: “In effect, the president is saying we have a year to figure out how to violate our consciences.”

Beginning August 1, 2012…, the insurance premiums we pay, including the insurance premiums paid by Catholics for employees of churches and schools … will be used to cover drugs and procedures that are in direct conflict with the teachings of our Church. … Our government will now force us to pay for insurance coverage for birth control, sterilization and even some abortion drugs. …

Make no mistake, this decision is a direct attack on you, our Church, and the religious liberty of all Americans.

… Pope Benedict XVI addressed the bishops from the United States who were completing their "Ad Limina" visit in Rome. The Holy Father specifically cited the "grave threats" to the freedom of the Church in America, and urged the Catholic community to respond, especially with "an engaged, articulate and well-formed Catholic laity." …

[In twelve] months, America will welcome a new president, or usher in four more years of Barack Obama and his assault on our liberties. This irony is not lost on us. … The Catholic vote must rise up like never before.

Sincerely,

Brian Burch, President
CatholicVote.org

Thursday, January 19, 2012

A quiz for reader(s)…

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"_______________ is a politico-economic system based on private ownership of the means of production and in which the powers of the state are limited to the protection of the individual's rights against the initiation of physical force. … Under _______________, the state consists essentially just of a police force, law courts, and a national defense establishment, which deter and combat those who initiate the use of physical force."

The answer to the above blank is…

A. Capitalism

B. Laissez-faire capitalism

C. Socialism / Keynseanism

D. Distributism

Wednesday, January 18, 2012

Maximum initiative…

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"All who believe that ownership in the means of livelihood is normal to man, and necessary to liberty, and all who dislike and distrust the concentration of control advocated by Socialists and practiced by Monopolists, should join the [Distributist] League … [The League] stands for the Liberty of the Individual and the Family against interference by busybodies, monopolies, or the State … [and for] … the better Distribution of Property (i.e. ownership of land, houses, workshops, gardens, means of production, etc.). … [As such, the League] fights for small Shops and Shopkeepers against multiple shops and trusts…[, for] Individual Craftmanship and Cooperation in industrial enterprises… [, and for the] Small Holder and the Yeoman Farmer against monopolists of large inadequately farmed estates … [In a word, the League stands for] the Maximum, instead of the minimum initiative on the part of the citizen."

-- G.K.'s Weekly, March 29, 1929

The division of mind… 

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"The division of labour has become the division of mind… and means in a new and sinister sense that the right hand does not know what the left hand doeth. In the age of universal education, nobody knows where anything comes from. The process of production has become so indirect, so multitudinous and so anonymous, that to trace anything to its origin is to enter upon a sort of detective story, or the exploration of a concealed crime."

-- G.K. Chesterton, Jun 1932

Tuesday, January 17, 2012

A dialogue between a "real capitalist" and a "distributist dreamer"…

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"Distributism does not blend or 'balance' Capitalism and Socialism. Both of these systems result in the concentration of ownership. Socialism does not 'redistribute' wealth, it denies the private ownership of it altogether…. We have been trained to believe that any significant state involvement means Socialism. This is a lie. State managed redistribution of privately owned wealth from the rich to the needy is not Socialism because the the wealth remains privately owned. … Both Capitalism and Socialism require the big state. This is true despite the Libertarian desire to minimize state involvement."

-- David Cooney, 10 Jan. 2011

A: Cooney's point about "redistribution" seems arguably correct. But where does he get his assertion about Capitalism? (Or is he ignoring the laissez-faire brand? For it never needs a "Big" government.)

B: I think the idea here is: "Wal-Mart without federal highways––oh really, now?"

A: I'm not following. And federal highways are one of the very few functions a SMALL government is actually allowed to govern.

B: Let me quote from a private and slightly revised correspondence:

"[We musnt confuse] 'prices' with 'costs.' [For] this ignores the role of externalities and subsidies. Prices can be lowered by externalizing costs. For example, WalMart could not survive if the costs of transportation were not subsidized. If there were weight and distance tolls on roads, the long range distribution system would be shown to be inefficient for low cost goods and would be confined to high-quality, rare, and high cost goods. If pollution were paid for by the producers, instead of by the gov't or simply by decreased public health, it is absurd to speak of 'low-prices.' …

"The WalMart distribution model looks this (I am using WM as an example because their operations are well-known and documented): They open a distribution center in a new area, and then saturate that area with stores along the major highways. It is obvious that the region cannot support that number of stores, but sales are not, initially, the object. As the local commerce (and competition) drys up, Walmart closes most of the stores to leave an 'optimal number,' which leaves the area at the mercy of Walmart, and stores that are remote from many people. At that point, even the pretense of low prices is lost. And this analysis ignores the cases of stores whose entire profit margin consists of the sales tax rebate."

In any event, small govt may be able to govern highways… but how did they get built?

A: Small government can = federal government, as long as it is existing within its Constitutional authority. And that's what I thought you might mean re: Wal-Mart, but Wal-Mart is no archetype of Capitalism, only of our current Socialist-laden Capitalism. A great capitalism could still exist even if Wal-Mart could not.

B: What would you say is the best actual, sustained case of laissez-faire capitalism in history (i.e. devoid of government crutches and monopolies)?

A: Several hundreds or thousands of (micro-)times in American history, most of which were in its earlier times. I'm not much of a historian, and so remember dates, etc., but I have read about them in books on history and economics. The PIGs to the Constitution and Capitalism are my better resources. (Which are, admittedly, not academic.)

But this question (which I've heard often) misses some of the point: for a single application of a single policy amidst an incredibly controlling, subsidy-laden socialist capitalism, if it frees the market in some small way, is enough of an example of laissez-faire capitalism. And I have found this to work at near 100%.

B: I'd call the "micro-times" of true capitalism just family's lives, i.e. time scales in which capitalism is effectively distributism. I am troubled by the apparent symmetry between the following claims: "Capitalism has never really been tried" and "Communism has never really been tried". It could just as easily be said that regulating monopolies under a socialist aegis frees the market for a greater number of producers, and therefore socialism is vindicated. The problem is that both capitalism and socialism seem to treat economic conditions and dynamics as a kind of trans-historical, absolute sphere of deterministic principles, as if "society" and/or "the market" were something over and above the particular people who interact. Speaking of freedom presupposes we know what freedom means, and I deny that freedom is simply the ability to do whatever. Freedom is the power to do the good, and nothing about capitalism in its theoretical purity seems to speak to "the good" (but only to "goods"). Therefore, it seems a truly-free market (i.e. a sustainable system of free people interacting towards the common good) can only be brought about by aiming market laws at the common good, which is the purpose of governance.

In any case, the point is precisely that 'real' laissez-faire capitalism (LFC) seems only to enjoy micro-spatiotemporally sustainable success, not longterm, widespread success (absent government crutches). Any theory can be made to work for a time. Look at Sweden as "proof" of socialism (never mind that it's liberalizing now that the socialist generation is growing oppressive). If LFC is practically unworkable in the real world of historical change, then it is just that: practically unworkable.

Here's a little syllogism (modus tollens): If the market M just is human behavior B, and if B is consistently and reliably rational Rr, then the market is Rr; but B is not Rr (~Rr), therefore M is ~Rr. If however M is irrational, then, either "the invisible hand" is just as 'good' a guide as "The Great Spirit of Natural Selection" or pure-market economics is ~Rr and LFC seems in dire straits.

It's an interesting conundrum: if LFC has never really, fully, truly been tried (á la Ron Paul), then it's not really been shown to be false. My query is why, if LFC is the natural order of human flourishing, it can't seem to get off the ground (i.e. it can't get really tried).

Nonetheless, let it be granted that distributism is all for smaller government, so small, in fact, that it would not amount to more than needed to protect the smallest and best government, namely, the family. That's a key point, in any event: there is a close connection between small government and small economy , on the one hand, and big economy and big government, on the other.

Monday, January 16, 2012

Or rather a second… 

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"Communism is that form of Capitalism in which all workers have an equal wage. Capitalism is that form of Communism in which the organising officials have a very large salary. … Both presuppose property not personal, but Worked from a centre and distributed as wages. There is a third ideal; or rather a second. It is that individuals should own and be free. … The right and essential thing [is] that as many people as possible should have the natural, original forms of sustenance as their own property.

The division of labour has become the division of mind; and means in a new and sinister sense that the right hand does not know what the left hand doeth. In the age of universal education, nobody knows where anything comes from. The process of production has become so indirect, so multitudinous and so anonymous, that to trace anything to its origin is to enter upon a sort of detective story, or the exploration of a concealed crime."

-- G.K. Chesterton, Apr-Sep-Jun 1932

Sunday, January 15, 2012

Actually operating… 

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"Capitalism, as practiced in the real world, goes far beyond the private ownership of productive capital. Capitalism as it actually exists includes different forms of corporate ownership, … investment and financing schemes, interest, the acceptance of greed as an objective good, usury, using capital for profit … [and] to prevent competitors from making profit, monopoly, free trade, involvement of the highest levels of government, and a utilitarian view of the worker. … [T]he economic system actually operating under the name Capitalism is very different than the basic definition of the word [i.e. private ownership of production]…. Since both Distributism and Capitalism operate on the basis of private ownership of productive capital, we need to look beyond this one common root and realize that neither of these economic systems is wholly defined by it."

–– David Cooney, "Is Distributism a Form of Capitalism?"

Saturday, January 14, 2012

Capitalism has no conscience besides what we put into it…

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John Medaille of the Univ. of Dallas Discusses Economics. His book, “Toward a Truly Free Market” is Available at www.amazon.com.
December 20th, 2011

John Medaille of the Univ. of Dallas answered questions such as the following:
1) The economy is not doing well. What caused the problem?
2) When the gov’t needs money, why not just create it and forget selling bonds and paying interest? This way there would be no national debt.
3) How important are Christian principles to the proper functioning of a free market system?
4) Is it harmful to the economy if too much annual income goes to too few?
5) Should Soc Sec be privatized? Should we keep the minimum wage and The Federal Reserve?

Friday, January 13, 2012

The heart of the social order…

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"The rural family needs to regain its rightful place at the heart of the social order. The moral principles and values which govern it belong to the heritage of humanity, and must take priority over legislation. They are concerned with individual conduct, relations between husband and wife and between generations, and the sense of family solidarity. Investment in the agricultural sector has to allow the family to assume its proper place and function, avoiding the damaging consequences of hedonism and materialism that can place marriage and family life at risk."

-- Benedict XVI, 16 Oct 2006

MESSAGE OF HIS HOLINESS BENEDICT XVI
TO THE DIRECTOR GENERAL
OF THE FOOD AND AGRICULTURE ORGANIZATION (FAO)
FOR THE CELEBRATION OF WORLD FOOD DAY

Thursday, January 12, 2012

Neither balance nor blend… 

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"Distributism does not blend or 'balance' Capitalism and Socialism. Both of these systems result in the concentration of ownership. Socialism does not 'redistribute' wealth, it denies the private ownership of it altogether…. We have been trained to believe that any significant state involvement means Socialism. This is a lie. State managed redistribution of privately owned wealth from the rich to the needy is not Socialism because the the wealth remains privately owned. … Both Capitalism and Socialism require the big state. This is true despite the Libertarian desire to minimize state involvement."

-- David Cooney, 10 Jan. 2011

Tuesday, January 10, 2012

By reference to moral values…

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"Capitalism is not a philosophy. It is simply a method of allocating resources based on voluntary exchange instead of coercion. While some say that such a method promotes greed, history indicates that greed is no less present in any other system of allocating resources. Distributism is completely compatible with capitalism to the extent it is a voluntary expression of the desire to make such market exchanges by reference to appropriate moral values and not just profit. Distributism is most difficult to apply in the context of enterprises that need large amounts of capital to compete successfully. Such businesses tend to organize as public companies whose ownership is distinct from management. Such companies have a very difficult time voluntarily expressing values that are inimical to profit maximization. It is not impossible, since corporations can be organized expressing other goals which would be disclosed to investors, but thus far such efforts have not proven all that successful. Instead, non-pecuniary values are imposed via government regulation, which plainly can be blunt and political instruments. It is also important to realize that non-investor corporate constituencies, especially consumers, do alter behavior by imposing their values thereby affecting corporate profits. Imperfect information and imperfect consumers limit the efficacy of such forces, but truly there is nothing about a free market system that renders it inherently incompatible with Catholic values."
-- a guy named Mike Petrik, on a blog

Saturday, January 7, 2012

Economic empowerment…

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Look, Ma, it ain't just Chesterbelloc and the Catholics going on about distributism, them humanists are going on about it, too.

"[W]hile I argue [pace Marx] it is false to claim that surplus value is unjustly appropriated by … employers, landlords and middlemen who are contributing to the value of a good or service, it is undoubtedly true that those who work for them, rent from them or sell to them would be financially better off if they could keep the financial benefit of this transaction - the surplus value - for themselves.

"This in a nutshell is what distributism is all about.

"Distributism is not trying to make the poor rich by making the rich poor, but empowering the poor and the not-so-rich to accumulate more of the demand-based value of their labour, more of the demand-based value of their produce, more of the demand-based value of their accommodation. …

"The key work to understanding early 20th century distributism is Belloc's seminal work, _The Servile State_. A savage denunciation of laissez-faire capitalism, which Belloc argued was re-establishing feudal servility on economic lines, _The Servile State_ is no less savage towards state socialism, which (ironically presaging the later words of free market economist Friedrich Hayek) Belloc called no less a road to serfdom. …

"The laurel for outstanding success in implementing distributist aims must rest with the Spanish, where following the Spanish Civil war, Don Jose Maria Arizmendiarrieta founded the Mondragon Co-operative in the Basque region. From a handful of unemployed oil lamp makers, Mondragon has grown to become the ninth largest corporation in Spain. … The lot of the poor is improved not through welfare but through economic empowerment. Capital is seen not as the enemy but as an instrument for social progress. …

"[I]f capitalism is simply about maximizing profits and standing back even if that leads to monopoly ownership, then Mondragon isn't capitalism. And if socialism is about collective ownership rather than private profit, Mondragon isn't socialism either, because Mondragon is all about making individuals and their families wealthier."
-- Distributism as an equalitarian economic policy - www.hsnsw.asn.au