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"Power tends to corrupt, and absolute power corrupts absolutely." Lord Acton

Jeffrey Tucker: Why (Some) Catholics Don’t Understand Economics

Blog author: copperman
Sunday, August 29, 2010
By Chris Oppermann

Acton University faculty member Jeffrey Tucker has an insightful essay over at InsideCatholic.com, “Why Catholics Don’t Understand Economics.”

Throughout the piece, Mr. Tucker employs a distinction between scarce, economic goods, and non-scarce, infinitely distributable, spiritual goods:

I have what I think is a new theory about why this situation persists. People who live and work primarily within the Catholic milieu are dealing mainly with goods of an infinite nature. These are goods like salvation, the intercession of saints, prayers of an infinitely replicable nature, texts, images, and songs that constitute non-scarce goods, the nature of which requires no rationing, allocation, and choices regarding their distribution.

None of these goods take up physical space. One can make infinite numbers of copies of them. They can be used without displacing other instances of the good. They do not depreciate with time. Their integrity remains intact no matter how many times they are used. Thus they require no economization. For that reason, there need to be no property norms concerning their use. They need not be priced. There is no problem associated with their rational allocation. They are what economists call “free goods.”

[…] This is completely different from the way things work in the realm of scarce goods. Let’s say that you like my shoes and want them. If you take them from me, I do not have them anymore. If I want them again, I have to take them back from you. There is a zero-sum rivalry between the goods. That means there must be some kind of system for deciding who can own them. It means absolutely nothing to declare that there should be something called socialism for my shoes so that the whole of society can somehow own them. It is factually impossible for this to happen, because shoes are a scarce good. This is why socialism is sheer fantasy, a meaningless dreamland as regards scarce goods

The whole article is worth reading (there is even a good St. Augustine reference)

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Category: Bible and Theology

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Acton University, business, catholic social teaching, christianity, church, Economic theories, economics, faith, Jeffrey Tucker, morality, property, religion, Religion/Belief, theology, wealth

Comments are moderated. Please be patient while they are reviewed.

  • Pingback: Do Catholics Not Understand Economics? » First Thoughts | A First Things Blog()

  • http://don-colacho.blogspot.com Stephen

    An “insightful” article containing an “interesting” distinction? Only if by “insightful” and “interesting,” you really mean “facile.” As Joe Carter at First Things points out, and despite Tucker’s assertions to the contrary, this is essentially a straw man argument.

    Tucker’s deeper problem is that he fails to take seriously the question of distributive justice, as opposed to commutative justice. There are many flawed solutions for realizing distributive justice in the world, and there are indeed Catholics who have supported such flawed solutions, but at least these Catholics do not exclude a very important part of justice from their discussion of economic problems.

  • Roger McKinney

    As the responses to his article show, the problem runs much deeper than what Tucker thinks. Catholics and others who deny the science of economics are suckers for Marxism.

    “The revolt against reason was directed against another target. It did not aim at the natural sciences, but at economics. The attack against the natural sciences was only the logically necessary outcome of the attack against economics. It was impermissible to dethrone reason in one field only and not to question it in other branches of knowledge also.”

    “The great upheaval was born out of the historical situation existing in the middle of the nineteenth century. The economists had entirely demolished the fantastic delusions of the socialist utopians… The communist ideas were done for. The socialists were absolutely unable to raise any objection to the devastating criticism of their schemes and to advance any argument in their favor. It seemed as if socialism was dead forever.

    “Only one way could lead the socialists out of this impasse. They could attack logic and reason and substitute mystical intuition for ratiocination. It was the historical role of Karl Marx to propose this solution. Based on Hegcl’s dialectic mysticism he blithely arrogated to himself the ability to predict the future. Hegel pretended to know that Geist, in creating the universe, wanted to bring about the Prussian monarchy of Frederick William 111. But Marx was better informed about Geist’s plans. He knew that the final cause of historical evolution was the establishment of the socialist millennium.”

    “There was still the main obstacle to overcome: the devastating criticism of the economists. Marx had a solution at hand. Human reason, he asserted, is constitutionally unfitted to find truth. The logical structure of mind is different with various social classes. There is no such thing as a universally valid logic. What mind produces can never be anything but “ideology,” that is in the Marxian terminology, a set of ideas disguising the selfish interests of the thinlter’s own social class. Hence, the “bourgeois” mind of the economists is utterly incapable of producing more than an apology for capitalism. The teachings of “bourgeois” science, an offshoot of “bourgeois” logic, are of no avail for the proletarians, the rising class destined to abolish all classes and to convert the earth into a Garden of Eden.”

    Mises, Human Action

  • http://yahoo.co.uk Luke Daxon

    Oh indeed, who could forget St. Ludwig, that celebrated bulwark of the Church?

    “A living Christianity cannot, it seems, exist side by side with Capitalism. Just as in the case of Eastern religions, Christianity must either overcome Capitalism or go under.”

    “No art of interpretation can find a single passage in the New Testament that could be read as upholding private property.”

    “The clearest modern parallel to the attitude of complete negation of primitive Christianity is Bolshevism. The Bolshevists, too, wish to destroy everything that exists because they regard it as hopelessly bad. But they have in mind ideas, indefinite and contradictory though they may be, of the future social order. They demand not only that their followers shall destroy all that is, but also that they pursue a definite line of conduct leading towards the future Kingdom of which they have dreamt”. The teachings of Christianity’s central figure is, to von Mises, “merely negation” in comparison.

    Ludwig von Mises. Socialism: An Economic and Sociological Analysis (1922)
    http://oll.libertyfund.org/?option=com_staticxt&staticfile=show.php%3Ftitle=1060&chapter=104069&layout=html&Itemid=27

    I for one am heartily sick of listening to Christians who would exalt this man to the status of a Church Father and who demand that other Christians conform their outlook on the world to his. At least von Mises was honest – he loathed Christianity and reserved particular animus for Jesus and never bothered to conceal it. It is those who insist on dressing this wolf in a sheep’s garments who are deceiving themselves, and not just themselves.

  • Pingback: Rightwing Links (August 31, 2010)()

  • Roger McKinney

    Luke, you make an interesting point. Mises was very anti-Christian, until his stay in the US. In Europe he knew only socialist Christians and that is what he reacted against. But in the US most of his supporters were devout Christians and as a result he took a second look. Later he became an avid reader of Barth and softened a great deal on Christianity. As with any great man, Mises had his flaws, but to dismiss his economics because of his early ideas about religion is to commit the ad hominem fallacy.

    Hayek, Mises’ greatest student, was a huge cheerleader of the School of Salamanca, Spain and wanted to hold a meeting of his Montpelier society there in honor of those Catholic scholars. The research on the School of Salamanca came too late for Mises, but had it come earlier I’m certain he would have embraced it as Hayek did.

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