Posts tagged with: free-market

bourgeious-equality-mccloskeyIn Dierdre McCloskey’s latest book, Bourgeois Equality: How Ideas, Not Capital or Institutions, Enriched the World, she builds on her ongoing thesis that our newfound prosperity is not due to systems, tools, or materials, but the ideas, virtues, and rhetoric behind them.

Much has been made of her argument as it relates to the (ir)relevance of those material features as causes: “coal or thrift or capital or exports or exploitation or imperialism or good property rights or even good science.” But less has been said about her views on the spiritual/material as it relates to the byproducts.

I’m not yet finished with the book, but on page 70, she offers her view on the spiritual dynamics of what’s to come.

Contrary to popular claims that an increasingly prosperous free society will necessarily trend toward greed, envy, and idleness, McCloskey sees a future with more resources, and thus, more time and space for the transcendent. “One would hope that the Great Enrichment would be used for higher purposes,” she writes…”Enrichment leads to enrichment, not loss of one’s own soul.” (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…)


The Bosses of the Senate, a cartoon by Joseph Keppler. First published in Puck 1889.

Cronyism is ugly. It hurts the economy, it’s unjust, and corrupts the core of democracy.  “The damage that cronyism has inflicted on the economy is considerable,” Samuel Gregg writes in a new piece for Public Discourse. “[C]ronyism also creates significant political challenges that, thus far, Western democracies are struggling to overcome.”

The crony capitalism seen from the Trump presidential campaign and many others is not something that’s new to America or Western civilization. As long as there have been governments, there have been powerful people seeking special favors from them. From the 17th to 18th centuries, mercantilism “dominated the West,” which involved powerful guilds working closely with their government officials to limit trade and stifle innovation. Gregg explains the cronyism that’s common today:

Today’s crony capitalism is not outright corruption, though it often verges on or morphs into illegal activity. The expression itself first emerged in 1980 to describe how the Philippines’ economy functioned under the Marcos regime. It became prominent in explanations of the 1997–1998 Asian financial crisis, especially the role played in that crisis by government decisions that favored business “cronies” (many of whom were relatives) of political leaders, such as Indonesia’s then-President Suharto.


pope in crowdIn today’s Roll Call, Acton Institute president Rev. Robert Sirico comments on Pope Francis’ September visit to the U.S. and what may be part of the dialogue when the pope is here. While the media tabulates the pontiff’s popularity on certain topics, Sirico says there are more important things to note.

Popularity ratings may be important for politicians but not for a pope believed to be the successor to St. Peter and the Vicar of Christ on earth.

His job is to preserve the truths of the Faith, not put them up for a vote.

The Church is not a democracy, whereby some polling data could alter the content of the Church’s doctrine the way McDonald’s might alter the ingredients in a Big Mac.


Today at the Library of Law & Liberty, I examine Pope Francis’s recent speech in Bolivia, in which he calls for “an economy where human beings, in harmony with nature, structure the entire system of production and distribution in such a way that the abilities and needs of each individual find suitable expression in social life.”

I have no objection to that, but what he seems to miss is that the very policies he criticizes all characterize those countries in the world that most closely resemble his goal. I write,

So what stands in the way, according to the pontiff?—“corporations, loan agencies, certain ‘free trade’ treaties, and the imposition of measures of ‘austerity’ which always tighten the belt of workers and the poor.” Really?

Business, credit, trade, and fiscal responsibility are marks of healthy economies, not the problem, popular as it may be to denounce them. Indeed, these are also marks of economies that effectively care for “Mother Earth,” whose plight the Pope claims “the most important [task] facing us today.” That’s right, more important than the plight of the poor, to His Holiness, is the plight of trees, water, and lower animals.

That moral confusion aside, is there any way we could study what policies correlate with the Pope’s laudable goals? As it turns out, there is. The United Nations Human Development Index (HDI) ranks countries based upon an aggregate rating of economic growth, care for the environment, and health and living conditions—precisely the measures the Pope seems to care most about. Yet of the top 20 countries on the most recent HDI ranking, 18 also rank as “free” or “mostly free” on the most recent Heritage Index of Economic Freedom.

Read my full article, “Show Me the Way to Poverty,” here.

NovakToday’s issue of Public Discourse offers a reflection on the life and work of Michael Novak. It would not be an exaggeration to say Novak is a towering figure in the world of free market economics. Author Nathaniel Peters says that while Novak has had his critics, the question that lies at the heart of all Novak’s work is this: “How do we get people out of poverty?”

What economic systems are most conducive to allowing people to exercise their human dignity, realize their God-given capacities, and provide for themselves and their families? When many people think of capitalism, they imagine factory owners exploiting workers. Novak sees a woman with a micro-loan who can now start a business to support her family, or a community of immigrants who have arrived in America—like Novak’s own Slovak ancestors—who through hard work in their local community can build better lives for themselves and those around them. (more…)

weeping statueIf one decides to destroy the American Dream, there are a few steps that would be necessary.

  1. Put Big Government in charge. The average American can’t figure out his or her own dreams, let alone what it would take to make them a reality.
  2. Tell Americans that without the government, the American Dream is hopeless.
  3. Produce a lengthy document about the American Dream. Leave out the word “freedom,” let alone the idea of freedom.
  4. Let people know that “freedom” (without actually using the word) is quite harmful. Don’t worry, thought, Big Government will protect you.