Posts tagged with: economic liberty

On Sept. 18, the Acton Institute held its annual dinner and lecture in downtown Pittsburgh at the Duquesne Club.

J. Christopher Donahue, president and chief executive officer of Federated Investors, Inc., emceed the event and Lisa Slayton, president of Serving Leaders and The Pittsburgh Leadership Foundation, gave the invocation for the evening.  Rev. Robert A. Sirico, president and co-founder of Acton, gave the keynote lecture for the evening:  “Religious Liberty and Economic Liberty:  Twin Guarantees for Human Freedom.”

Rev. Sirico started the evening by talking about why property rights are important to liberty.  Property allows us to put ourselves into the creation of things.  Humans have the capacity to create wealth.  The human being transcends creation as we are able to create.  “Without the right of property, civilization begins to crumble,” Rev. Sirico said. “Culture begins to crumble.”  He gave a textbook example of this—the former Soviet Union. Both religion and property rights were confiscated–and you can see what happened. (more…)

It’s hard to think of anything more onerous than preventing enterprising people from entering the market. To do so is to interfere with their ability to serve others and engage in their vocation. It keeps people poor by preventing them from improving their lives. And one of the worst barriers of this kind is a type of law known as occupational licensing.

And that’s exactly what a group of monks in Louisiana ran into in 2010 when the state government tried to prohibit them from selling handmade caskets to their fellow Louisianians. Kevin Schmiesing wrote on that issue in 2010 on the PowerBlog.

It’s the coffin business that got St. Joseph’s in trouble. By selling its pine boxes without a funeral director’s license, the monastery violates state law. So the abbey is suing the State of Louisiana in federal court.

It’s a classic case of what economists call “barriers to entry”: regulations put in place by existing businesses or professionals to limit competition and thereby drive up prices and compensation. Usually the vested interest posits some rationale concerning the public good (e.g., not just anybody should be allowed to practice medicine…), but frequently enough the reasoning is pretty thin (e.g., should you really need a license to cut hair or drive a taxi?).

The monks are represented by the libertarian public-interest group, Institute for Justice. They won their case in 2011 and appeared last month before a Federal Appeals Court. A decision won’t be out for several months.

This all started when the Benedictine monks at Saint Joseph Abbey started receiving several requests from their community to sell caskets that the monks had constructed for their own deceased members for many years. In a hard hit post-Katrina Louisiana, this seemed like a reasonable way for them to serve their community and bring in some money to the abbey. Unfortunately, they ran into occupational licensing laws, which forbid non-funeral homes from selling caskets. The Institute for Justice argued that such laws could only serve to reduce competition and drive up the prices of caskets. The BBC has a good video on their troubles with the state. (more…)

In an article appearing in the American Spectator, Samuel Gregg discusses the growth of religion in China, its system of crony capitalism, and its need to accept freedom. Opening the column, Gregg describes how the Catholic Church’s freedom from state control in China is at stake. Gregg later explains that there isn’t just corruption in China’s crony system of capitalism, but also in its society:

It’s abundantly clear, for instance, that China’s economy is hardly the capitalism envisaged by Adam Smith. Instead, it’s a crony-capitalist arrangement. One symptom of this is the extensive corruption prevailing throughout Chinese society.

In 2010, Transparency International ranked China as 78th out of 179 countries on its Corruption Perceptions Index. That made China only slightly less-corrupt than Russia! Moreover, as Yashen Huang illustrates in Capitalism with Chinese Characteristics (2008), apparatchiks from China’s Communist party, government, and military exercise far-reaching control over thousands of the businesses powering China’s development in the special economic zones. That’s a recipe for a growing culture of accelerating bribes, nepotism, and fraud.

Wiser heads in China, however, know crony capitalism isn’t infinitely sustainable. In the long-term, China needs the rule of law and a stable system of property rights — all of which implies limiting the capacity of those with political power to act arbitrarily.

But while rule of law and property rights are essential for sustainable economic growth, they are not enough. Equally important is a generally accepted moral culture that most people have internalized and generally follow.

The moral culture in China has been dismantled by the government. Gregg argues the rule of law and property rights are not enough for economic growth, China also needs a moral law. After the decimation of Confucianism, which provided the moral glue for the Chinese society, many are now turning to religion:

And religion is plainly on the rise in China. Five years ago, the English language version of the Communist Party’s newspaper, China Daily, reported on the results of studies done by Shanghai University professors which indicated that millions of Chinese — especially the young and particularly in the special economic zones — were becoming Christian.

This shouldn’t be too surprising. It is materialism that leads to atheism, not the growth of wealth per se. Economic liberty requires and encourages people to think and choose freely. But such thoughts can’t be quarantined to commercial considerations. With increasing wealth, many Chinese now have the time and resources to explore life’s more important questions. Many have found answers in Christianity.

Such developments, according to some Chinese officials, aren’t necessarily a bad thing. Back in 2006, the then-head of China’s religious affairs ministry, Ye Xiaowen, begrudgingly acknowledged the various Christian churches’ contributions to helping Chinese society cope with the effects of increasing wealth.

While China will benefit from a strong moral presence within its borders, which will aid in solving its corruption problems, Gregg foresees the Catholic Church and the Chinese government being at odds when the government questions doctrines or bishop appointments. There is a way out for China, as Gregg concludes, and that is by accepting freedom:

The way out, of course, is for China’s rulers to accept freedom’s indivisible character. Once you concede religious or economic liberty, it’s hard to quarantine its effects. Acknowledging this, however, would require China’s Communist Party to self-terminate its grip on political power. Regrettably, as history illustrates, Communists never do that — or at least not until it’s truly inevitable.

To read the full article click here.