Posts tagged with: classical liberalism

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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Who is the biggest enemy of the free market system? The late Milton Friedman, one of the 20th century’s most prominent free market champions, had a surprising answer: the business community.

Economist Arnold Kling explains why support for markets and business are not the same thing:
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Over at Fieldnotes Magazine, Matthew Kaemingk offers a good reminder that in our social solutions-seeking we needn’t be limited to thinking only in terms of market and state. By boxing ourselves in as such, Kaemingk argues, Christians risk an overly simplistic, non-Biblical view of human needs and human destiny:

When presented with almost any social problem (education, health care, poverty, family life, and so on), today’s leaders typically point to one of two possible solutions—a freer market or a stronger state. But in opposition to these rather myopic solutions, I think there is a more complex and biblical lens through which leaders can consider the social eco-system and the people who move around in it.

Instead of simplistic descriptions of human beings as either clients of the state or competitors in the market, the Christian Scriptures present humanity in a refreshingly complex way. We find a complex creature with a wide variety of gifts, abilities, interests, aspects, loyalties, and solidarities. Created in the image of God, human beings in the Bible are anything but simple. They are musical, communal, religious, artistic, familial, charitable, scientific, literary, moral, athletic, fun, and funny. The robust anthropology found in the Bible depicts a creature that could never be fully defined, controlled, content, or nourished by the market or the state alone—thank God.

This perspective ties in well with Rev. Robert Sirico’s final chapter in his book, Defending the Free Market, where he criticizes the popular notion of homo economicus, from which plenty of bad economic policy and market decision-making has been generated:

Any man who was only economic man would be a lost soul. And any civilization that produced only homines economici to fill its markets, courts, legislative bodies, and other institutions would soon enough be a lost civilization. Familial love, voluntary dedication to philanthropy and faith, the creation of art and music would be at their most minimal level, and whole sectors of life would completely vanish. Focusing the whole of life on the acquisition of quantifiable goods does not bring true happiness or peace, as almost everyone knows. We all have material appetites, but we do not (pray God) always feed them…Human beings find ultimate fulfillment not in acquisition but in developing, sharing, and using their God-given creative capacities for good and giving themselves to others. (more…)

Blog author: rjmoeller
posted by on Tuesday, November 13, 2012

One night during either my sophomore or junior year of college, while delaying the doing of homework by walking around the upstairs of Taylor University’s library looking for embarrassing books I could hide in friends’ backpacks so the alarm would go off when we walked out together and they’d have to sheepishly present them at the front desk, I stumbled upon a little treatise called The Law by some French dude named Frederic Bastiat I had never heard of.  I checked it out, cautiously put it in my own backpack as I checked for retaliatory plants, and headed back to the dorm for a spirited bout of Mario Kart 64.

Later that same week, while sitting in my “International Business” class (and wishing Jesus would return at that precise moment to end my boredom), I pulled Bastiat out and began reading these opening words . . .

We hold from God the gift which includes all others. This gift is life — physical, intellectual, and moral life.

But life cannot maintain itself alone. The Creator of life has entrusted us with the responsibility of preserving, developing, and perfecting it. In order that we may accomplish this, He has provided us with a collection of marvelous faculties. And He has put us in the midst of a variety of natural resources. By the application of our faculties to these natural resources we convert them into products, and use them. This process is necessary in order that life may run its appointed course.

Life, faculties, production — in other words, individuality, liberty, property — this is man. And in spite of the cunning of artful political leaders, these three gifts from God precede all human legislation, and are superior to it. Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place.

Powerful stuff.  I kept wondering, “Where had such clear-headed rhetoric like this been my entire life?” (more…)

Blog author: ckaupke
posted by on Friday, June 29, 2012

Frédéric Bastiat (1801-1850)

This Saturday, June 30, is the 211th birthday of Frédéric Bastiat, one of the greatest political philosophers of the modern era. Considered among the founding fathers of classical liberalism, Bastiat is known for his simple and direct explanations of political and economic realities, his arguments against oppressive economic regulations and his clear and concise vision of a government of limited, enumerated powers, operating under the rule of law and unencumbered by favoritism or distributionist policies.

Bastiat 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, strictly adheres to the rule of law, and allows for a largely un-regulated economy in which individuals are free to pursue their interests through peaceable exchange with each other. His best-known works, and those most central to his ideas, are The Law and The Seen and the Unseen, articulating his central political and economic ideas, respectively. (more…)

The Acton Institute recently hosted a conference in California with David Bahnsen and the Center for Cultural Leadership. Conference audio is now available online via YouTube. You can learn more about the event here.

Listen to Rev. Sirico’s talk, “Can We Be Free Without Economic Freedom,” below.

Other speakers included:

Blog author: mvandermaas
posted by on Thursday, May 24, 2012

Rev. Robert A. Sirico, President of the Acton Institute, continues to make appearances in the media to promote his new book, Defending the Free Market: The Moral Case for a Free Economy.

Today’s appearances include an guest spot this morning on the voice of the Mid-Ohio Valley, WMOV, on WMOV Live with Greg Gack:

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Father Robert was also in-studio today with G. Gordon Liddy, broadcasting nationwide from Washington, D.C.:

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You’ll also be able to listen to Rev. Sirico this afternoon at 5:00 on WLCR AM in Louisville, Kentucky, on the Mike Janocik Show, and be sure to tune in tonight on EWTN for Father Robert’s appearance on The World Over with Raymond Arroyo.

On Public Discourse, Acton Research Director Samuel Gregg addresses the “considerable fractures” that continue to divide conservative and libertarian positions on significant policy issues as well as on “deeper philosophical questions.” He pulls apart the “often tortuously drawn distinctions” surrounding the political labels and then offers some reasons why the “often unconscious but sometimes deliberate embrace of philosophical skepticism by some conservatives and libertarians should be challenged.”

Perceptive critics of skepticism have illustrated that the concern to be reasonable and avoid self-deception about reality is the starting point of any quest for philosophical truth: i.e., the very knowledge that skeptics believe we can’t know. What reason could skeptics therefore have for desiring to comprehend that, in the final analysis, all is unknowable, unless they are engaged in a quest for truth? In other words, skeptics draw their deduction that we should be philosophical skeptics from foundational assumptions they cannot doubt.

Also self-refuting is the common skeptic claim that reason is purely instrumental. For to defend this position, the skeptic’s reason necessarily engages in a non-instrumental task. He presumes it is good to know the truth of skepticism, and on grounds of reason rather than feelings. It is thus inconsistent for skeptics to assert that all philosophical viewpoints are arbitrary opinions. When skeptics posit that humans can only be motivated by sentiment rather than reason, they are not proposing this statement as their own impetuous preference. They claim to be making a rational judgment.

Read “Beyond Conservatism and Libertarianism” on Public Discourse by Samuel Gregg.

Blog author: mvandermaas
posted by on Thursday, April 12, 2012
Victor Claar

Victor Claar at Acton On Tap

If you weren’t able to join us at Derby Station in East Grand Rapids last night for Acton On Tap, you missed a great discussion on the topic of Envy: Socialism’s Deadly Sin with Dr. Victor Claar of Henderson State University. Acton’s own Dr. Jordan Ballor opened the evening’s conversation with some theological reflections on the nature of envy, with Claar following up with his discussion of envy from an economic perspective.

Again, if you weren’t able to make it, you missed out. Plan on joining us for the next Acton On Tap on May 10th, featuring Ray Nothstine; rumor has it that the topic may be President Calvin Coolidge. You can listen to last night’s presentation using the audio player below:

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