Posts tagged with: classical liberalism

Today at Mere Orthodoxy, I argue that

the duty of the Christian statesman (or stateswoman) to the poor requires defending human rights, supplying urgent needs, reducing barriers to market entry, and guaranteeing access to the institutions of justice, seeking realistic, gradual reform as possible and prudent.

Of particular interest to readers of the PowerBlog, I dedicate substantial space to explaining and advocating for free markets:

Jobs are what the poor need, and jobs are created by businesses. People settle for bad jobs only when good ones aren’t available. Thus, eliminating barriers to market entry ought to be of primary concern to the Christian statesman, combatting the unjust inequality created by closed markets. Barriers to entry include onerous occupational licensing and patent laws, high corporate taxes, zoning laws, overregulation, and subsidies. These things close markets to new competitors because, even though it might seem against their interest (except for subsidies), large, established firms are more likely to benefit from them and lobby for them (which is called rent seeking)….

In free markets, properly understood, these barriers are kept to a minimum, increasing competition and wealth creation. The more businesses there are looking for workers, the more demand there is for labor. Thus, not only will there be more jobs, but wages will be higher as well. It should be no surprise that the decline in American entrepreneurship has coincided with wage stagnation. Beyond wages, an additional benefit of increased competition is that it also drives down the price of consumer goods, thus lowering the cost of living for everyone as well. Free markets help the poor—and everyone else—in terms of production (labor), distribution (wages), and consumption (lower cost of living).

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Photo courtesy of Wikipedia

Photo courtesy of Wikipedia

On this day in 1632, one of the greatest champions of liberty and  someone often referred to as the “Father of Liberalism,” John Locke, was born.  Although Locke’s philosophy played a crucial role in the American founding, there is still much that we can learn from his writings today.  Here are 5 things to remember about Locke on his birthday:

  1. Locke offered one of the first and most recognized theories of private property. To this day, many still refer to Locke’s definition when discussing what private property is.  This comes from Locke’s Second Treatise on Government: “Though the earth, and all inferior creatures, be common to all men, yet every man has a property in his own person; this nobody has any right to but himself.  The labour of his body, and the work of his hands, we may say, are properly his. Whatsoever, then, he removes out of the state that Nature hath provided and left it in, he hath mixed his labour with it, and joined to it something that is his own, and thereby makes it his property.” (more…)
School of Athens by Raphael

School of Athens by Raphael

In considering issues of political economy today, it is always prudent to refer to wisdom from the past.  The American Enterprise Institute’s recent publication “Economic Freedom and Human Flourishing: Perspectives from Political Philosophy” is a collection of essays that analyzes the thought of several prominent philosophers on the connection between the title’s two subjects. Many of the quotes below, pulled from six of the nine essays, challenge foundational aspects of classical liberalism and the value of the free market. As Yuval Levin comments at the end of his essay on Edmund Burke, markets can enable human flourishing, but they do not do so perfectly, “And it is precisely the friends of markets who should be most willing to acknowledge that, and to seek for ways to address it…for the sake of liberty and human flourishing.” (more…)

Blog author: jcarter
Thursday, June 30, 2016
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all-in-bastiat“It’s all in Plato, all in Plato: bless me,
what do they teach them at these schools!”
– Digory Kirke in C.S. Lewis’s The Last Battle

The way Professor Kirk feels about Plato is how I feel about Frederick Bastiat. Whenever I hear someone repeating an economic fallacy online I have a tendency to cry out, “It’s all in Bastiat, all in Bastiat: bless me, what do they teach them at these schools!”

Unfortunately, Bastiat, whose 215th birthday is today, is not often taught in schools, whether in high school or college. That’s a shame for he was one of the greatest political and economic thinkers of the 19th century. Bastiat, a farmer turned politician and pamphleteer, had a inimitable gift for explaining economic and political concepts in way that make them not only understandable but seem downright commonsensical.

Bastiat, as Charles Kaupke notes, drew on his Catholic faith and the writings of Adam Smith and John Locke to articulate a vision of limited, efficient government that respects each citizen’s God-given dignity. And as Religion and Liberty adds,

He typified that rare breed of liberal who holds a deep and powerful belief in a personal and transcendent God, and who incorporates this belief in a wide ranging social philosophy centering on the proposition that when left alone society will most clearly display the wisdom and intent of the Creator.

A particular concept of Bastiat’s that has profoundly influenced my thinking is the idea that God arranged the social world. “I believe that He Who arranged the material world,” wrote Bastiat, “was not to remain foreign to the arrangements of the social world.” I wholeheartedly agree. That is why I never tire of arguing about how God created such economic phenomena as the price system and comparative advantage in order to coordinate human flourishing.

There are dozens of ideas in his writings like this one that are worthy of close attention, but here are four particularly important concepts of Bastiat’s that you should know:
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R&LSpring2014coverIn a 2013 commencement address at Messiah College in Pennsylvania, Makoto Fujimura told the graduating class, “We are to rise above the darkened realities, the confounding problems of our time.” A tall order for any age, but one God has decisively overcome in Jesus Christ. Fujimura uses his talent to connect beauty with the truth of the Gospel in a culture that has largely forgotten its religious tradition and history. He makes those things fresh and visible again. With works like “Walking on Water,” and the “Four Holy Gospels,” Fujimura is illuminating God’s Word to a culture that is mostly inward looking and mired in the self. Our interview with Fujimura leads this new issue of Religion & Liberty.

Also in this issue, I contribute a column on the dangers of state religion. Secularism, now thriving as the state religion, has the potential to unleash a new kind of religious persecution in America. (more…)

Hurricane IkeAfter 6,712 cyclones, typhoons, and hurricanes the evidence is clear: Bastiat was right all along.

In 1850, the economic journalist Frédéric Bastiat introduced the parable of the broken window to illustrate why destruction, and the money spent to recover from destruction, is not actually a net benefit to society (see the video at the end of this post for an explanation of the broken window fallacy). For most people the idea that destruction doesn’t help society would seem too obvious to warrant mentioning. But some liberal economists argue that destruction can lead to an economic boom, mainly because it provides the government with an opportunity to spend more money.

If the liberal economists are right, then we should find that destructive storms lead to economic growth. But a pair of researchers, Solomon M. Hsiang and Amir S. Jina, have recently published a study that shows the exact opposite. Using meteorological data, they reconstructed every country’s exposure to the 6,712 cyclones, typhoons, and hurricanes that occurred during 1950-2008 and then measured the long-term growth:
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downloadIn his latest column for National Review, Jonah Goldberg notes the difference between being pro-business and pro-market and says the GOP can’t have it both ways anymore:

Just to clarify, the difference between being pro-business and pro-market is categorical. A politician who is a “friend of business” is exactly that, a guy who does favors for his friends. A politician who is pro-market is a referee who will refuse to help protect his friends (or anyone else) from competition unless the competitors have broken the rules. The friend of business supports industry-specific or even business-specific loans, grants, tariffs, or tax breaks. The pro-market referee opposes special treatment for anyone.

Politically, the reason the lines get blurry in good times and bad is that in a boom, the economic pie is growing fast enough that the friend and his competitor alike can prosper. In bad times, when politicians are desperate to get the economy going, no one in Washington wants to seem like an enemy of the “job creators.”

Goldberg is absolutely right about the difference being categorical. As economist Arnold Kling has helpfully outlined, support/opposition to markets and business gives us four categories:
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