Posts tagged with: free-market

bannon-capitalismSoon after winning the election, President-elect Donald Trump created waves of controversy by naming Steve Bannon, his former campaign CEO, as chief strategist and Senior Counselor in the new administration.

Yet while Bannon’s harsh and opportunistic brand of political combat and questionable role as a catalyst for the alt-right are well-documented and rightly critiqued, his personal worldview is a bit more blurry. Much has been written of Bannon’s self-described “Leninist” political sensibilities and his quest to tear down the GOP establishment, but at the level of more detailed political philosophy (or theology), what does the man actually believe?

Offering a robust answer to that question, BuzzFeed recently unearthed a transcript from an extensive Skype interview Bannon gave to a conference held inside the Vatican in 2014. Though the topics range from ISIL to Russia to the racial tensions within the conservative movement, Bannon spends the bulk of his initial remarks on the intersection of economics and Christianity, offering what’s perhaps the most detailed insight to Bannon’s own thinking that I’ve found.

Given the growing mystery of the man and his newfound position of influence in the next administration, it’s well worth reviewing his views on the matter. (more…)

initiativeThe term “free market” doesn’t really capture the essence of the economic system that produces prosperity, says Michael Novak. The secret that “liberated more than a half billion of their citizens from poverty” was not mere freedom but private ownership and personal initiative.

The new economy in which we live is often called “the free market economy.” But markets are universal. Markets were central during the long agrarian centuries, through biblical times, in all times. For this reason, the term “the market economy” or even “the free-market economy” somewhat misses the mark.

More accurate is the “initiative-centered,” the “invention-centered,” or in general the “mind-centered economy.” More than anything, mind is the cause of wealth today. The Latin word caput (head) — the linguistic root of “capitalism” — has inadvertently caught the new reality quite well.

“The free economy” captures only part of the secret — it emphasizes the conditions under which the mind is more easily creative, in the fresh air of freedom. Freedom is a necessary condition, but the dynamic driving cause of new wealth is the initiative, enterprise, creativity, invention — which use the freedom.

Freedom alone is not enough. Freedom alone can also produce indolence and indulgence. To awaken slothful human beings out of the habitual slumber and slowness of the species, the fuel of interest must normally be ignited. One must move the will to action by showing it a route to a better world. Since humans are fallen creatures, mixed creatures, not angels, the fuel of interest is a practical necessity. The fire of invention lies hidden in every human mind, the very image of the Creator infusing the creature. To ignite it, one must offer incentives, a vision of a higher, better human condition, not only this-worldly, but also nourishing the expansion of the human soul and easement of bodily infirmities.

There is a natural desire in every human being, although it is often slumbering, to better his or her condition. And it is good for a woman to liberate herself and her whole people from the narrower horizons within which they find themselves. It is good for humans to catch glimmers of new possibilities for human development.

This, or something very like this, is the famous, celebrated and usually misunderstood “spirit of capitalism.” This is not a spirit of greed or avarice, which are grasping and small, not creative. It is an esprit, a gift of the spirit rather than of the body.

Read more . . .

daniel-isaacsIs it possible to be both a Christian and a libertarian?

In a forthcoming book, Called to Freedom: Why You Can Be Christian & Libertarian, six Christian libertarians offer an emphatic, “yes,” exploring key tensions and challenging a range common critiques (whether from conservative Christians or secular libertarians). The project is currently seeking funds via Indiegogo, where you can donate or pre-order your copy.

Having already discussed the topic on numerous occasions with two of the book’s authors – Jacqueline Isaacs and Elise Daniel – I asked them a few questions about their latest endeavor, the overarching ideas, and what they hope to achieve.

How did you become libertarian Christians?

ED: I grew up in a Christian, conservative home. Because of my upbringing, I always assumed Christians were also conservatives. Growing up, I didn’t know much about libertarians, other than that they wanted to legalize drugs, so I thought there was at least some sort of moral gap between Christians and libertarians. I grew stronger in both my faith and political convictions in college. I studied economics and attended an economics seminar on free markets. It was there that I was first introduced to Austrian economists like Ludwig Von Mises and Friedrich Hayek. For the first time, I was thinking about economics from a classical liberal framework, and it made a lot of sense to me. During the seminar, I had conversations with students and professors who called themselves libertarian and realized some of my assumptions — like that libertarians were all moral relativists — were false. I came out of that week with serious doubts about the role of liberty in modern conservatism and more respect for the libertarian perspective. (more…)

Harvestor workingMany view Labor Day as a celebration of all forms of work. The origins of the holiday come from the labor union movement, which for some is not so laudable. This leads some free-market advocates to refer instead to “Capital Day.”

One might be tempted to respond as parents often do when kids ask why there is a separate Father’s or Mother’s Day but no “Kid’s Day.” The answer: Every day is Kid’s Day. Perhaps every day is Capital Day and it is worth singling out the particularly human element of a productive and free economy.

In his historic encyclical from thirty-five years ago, Pope John Paul II refused to allow the dynamic relationship between labor and capital to be a zero-sum, either/or binary. To do so, he thought, is to grant a basic (and flawed) argument of Marxism.

Thus John Paul II asserted the priority of the subjective value of labor, but connected that effort historically to bygone generations of laborers who came before and left behind a productive legacy. In this way, capital is really “the result of the historical heritage of human labour.”

He continues:

All the means of production, from the most primitive to the ultramodern ones-it is man that has gradually developed them: man’s experience and intellect. In this way there have appeared not only the simplest instruments for cultivating the earth but also, through adequate progress in science and technology, the more modern and complex ones: machines, factories, laboratories, and computers. Thus everything that is at the service of work, everything that in the present state of technology constitutes its ever more highly perfected “instrument”, is the result of work.

So do celebrate Labor Day, or Capital Day if you must, but don’t fall into the trap of pitting one against another as if either reality exists independently. And don’t forget the “man” in “manual labor.”

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…)

38_00392

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.

(more…)