Posts tagged with: libertarianism

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.

I have a deep and abiding love for liberty—which is why I find myself so often in disagreement with libertarians.

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Blog author: jcarter
posted by on Wednesday, March 7, 2012

Last week, in reply to a post by Jacqueline Otto, I wrote an article asking What is a Christian Libertarian? Ms. Otto has written an additional reply entitled, “Four Things Christian Libertarians Believe.”

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[Note: Since my previous post on Christian libertarianism stirred up an interesting debate, I thought it might be worth adding one more post on the subject before we move on. I think the following thought experiment will help shed light on our previous discussion.]

The medieval monk and scholar Caesarius of Heisterbach tells of hearing a lay brother praying to Jesus: “Lord,” the man declared, “if Thou free me not from this temptation I will complain of Thee to Thy mother.”

Attempting to blackmail Jesus is, of course, not the best way to seek absolution. But while blackmail is a sin, should it also be a crime? Libertarians, who claim it is a “victimless crime” would say no. As economics professor Walter Block explains,
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Blog author: jcarter
posted by on Tuesday, February 28, 2012

Our friends over at AEI have a wonderful website—Values & Capitalism—devoted to many of the same topics we cover here at Acton: faith, economics, poverty, the environment, society. Values & Capitalism, which is capably managed and curated by my buddy Eric Teetsel, is an excellent resource that I recommend to all liberty-loving, virtue promoting Christians (i.e., all good Acton PowerBlog readers).

Being a huge fan of their work I was therefore grieved to read that one of their bloggers, Jacqueline Otto, took offense at my recent post on religious conservatives and libertarians:
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Yesterday I argued that since bias is inherent in institutions and neutrality between individual and social spheres is illusory we should harness and direct the bias of institutions towards a free and virtuous society characterized by individual liberty and sustained by religious principles.

One of the ways we can do that in the economic realm, I believe, is to encourage a bias toward entrepreneurship and away from corporatism. As Derek Thompson, a senior editor at The Atlantic, says, “It would be naive to think we can cleanse the law of all biases. But what if the law were biased, not toward the oil and gas industry or the cotton farmers, but toward the creative, the self-employed, and the entrepreneurs?”

Thompson proposes a new framework for competitiveness:

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When it comes to our view of individual liberty, one of the most unexplored areas of distinction between libertarians and religious conservatives* is how we view neutrality and bias. Because the differences are uncharted, I have no way of describing the variance without resorting to a grossly simplistic caricature—so with a grossly simplistic caricature we shall proceed:

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Yesterday AEI hosted a lively discussion between Jonah Goldberg and Matt Welch on the question, “Are Libertarians Part of the Conservative Movement?” I’ve got a piece appearing tomorrow at Comment that will discuss the “fusionist” project and the relationship between so-called economic or “market” conservatives and social or “communitarian” conservatives.

At this point, though, I’ll simply point out a distinction I’ve made in the past between libertarianism as a political philosophy and libertarianism as a world-and-life view. The former, I think, is largely compatible with and an important part of the broader conservative political movement. The latter, however, is much more problematic. Libertarianism as a political philosophy emphasizes the proper role and functions of a limited government, and asks critically of each policy, as Goldberg notes, “Should government really be doing this?” This question is one that is, in my view, an absolutely indispensable and welcome component of the conservative movement.

Libertarianism as a world-and-life view, however, understands personal choice as the highest good and interprets everything else in light of that single guiding principle. These kinds of libertarians do not hold to a view of the world in which choice must be directed to any objective good or correspond to the moral order. No, rather, choice itself is opposed to any form of constraint, moral or otherwise. The exercise of the will is itself the supreme act of human freedom. (These, I think, are Kirk’s “chirping sectaries.”) This kind of libertarianism is much less compatible with a conservative vision of the good society, although there are probably still cases in which such libertarians and conservatives can be effective co-belligerents. I would add that this kind of libertarianism is much less compatible with the Christian faith, and in many cases much more likely to be substituted for or conflated with Christianity. Libertarianism as a world-and-life view is an ideological competitor to the Christian faith.

Respective definitions of liberty are absolutely essential to distinguishing various strands of libertarianism. Are we simply free to choose, or free to choose the good? How is the good defined, and in relation to what (the moral order?) or who (myself? God?) is it defined? Here I’ll submit Lord Acton’s definition as representative of a good answer, from the kind of classical liberal who oriented freedom to the good: “Liberty is not the ability to do what you want, but the right to do what you ought.”

When we are asking the kinds of questions raised by last night’s AEI discussion, it’s important to define our terms and clarify precisely who and what we are discussing. Libertarianism is an inherently diverse phenomenon, with a rather dizzying spectrum of perspectives unified around some core commitments. But precisely how these core commitments animate and are placed in relationship to the broader vision of the common good (if there even is such a vision) is widely divergent. A presentation by Nigel Ashford at an IHS event once outlined at least 5 basic types (with attendant subgroupings) on a continuum, you might say, of libertarianism. (It so happens, usually, that whoever is to the left of you on the spectrum is cast as a “socialist” of some form or another.)

I’ll have some more to say related to my piece tomorrow at Comment, but here I’ll just note that my conclusions about the prospects for fusionism (social and economic conservatives need each other now perhaps more than ever) are largely shared with those in Hunter Baker’s essay, “Can Libertarians and Social Conservatives Find Common Ground?” and commend Baker’s article to your attention.

Reflecting on the GOP presidential campaigns and the Iowa caucus, Joseph Knippenberg has voiced serious concern on the First Things blog regarding the compatibility of Ron Paul’s libertarianism with traditional Christian social and political thought. As this race continues, this may be a question of fundamental importance, and I expect to see more Christians engaging this issue in the days and months to come.

Indeed, as Journal of Markets & Morality (JMM) executive editor Jordan Ballor has noted in his editorial for the most recent issue (14.2), the importance of this question is also highlighted by “the recent denial of a proposal for a master’s program in Austrian economics at Loyola University New Orleans [that] was in part attributed to ‘specific conflicts … between Catholic social teaching and the Austrian view of government, unions, taxations, human life and the place of Christianity in the public sector.’” Clearly, Loyola University New Orleans has already answered the question of compatibility with a strong no.

In light of the pressing need for a thoughtful and educated engagement of this question, I am pleased to note that the upcoming issue of JMM also features a debate in our “Controversy” section between Daniel Finn, Anthony Santelli, and John Mueller over the question: “Does libertarianism tempt some Catholics to stray from Catholic social thought?” The contributors represent an interesting spectrum of viewpoints on the issue and argue their stances with candor and conviction.

If you or your school or institution is not currently subscribed to JMM, this timely controversy is yet another reason to do so. For more information on how to subscribe, visit our website here.

Acton’s director of research Samuel Gregg has provided his reasoned take on the new document from the Pontifical Council for Justice and Peace — it’s up at The Corner. While its diagnosis of the world economy is fairly accurate, the council’s treatment plan is lacking in prudential analysis. Gregg’s disappointment is expressed at the end: “For a church with a long tradition of thinking seriously about finance centuries before anyone had ever heard of John Maynard Keynes or Friedrich Hayek, we can surely do better.”

He’s got four main points (full text below): (1) the fiat money system that accelerated financial decline wouldn’t be reformed by a world bank; (2) neither would the proliferation of moral hazards, which might in fact be increased; (3) there is no mention in the document of public debt and deficits, which problems face most developed countries and can’t be ignored; (4) there is little reason to believe that a newly created world bank could avoid the mistakes made by the Federal Reserve and other sovereign banks in the lead-up to the 2008 crash.

Despite the Catholic Left’s excited hyperventilating that the document released today by the Pontifical Council for Justice and Peace (PCJP) would put the Church “to the left of Nancy Pelosi” on economic issues, more careful reading of “Towards Reforming the International Financial and Monetary Systems in the Context of Global Public Authority” soon indicates that it reflects rather conventional contemporary economic thinking. Unfortunately, given the uselessness of much present-day economics, that’s not likely to make it especially helpful in thinking through some of our present financial challenges.

Doctrinally speaking, there’s nothing new to be found in this text. As PCJP officials will themselves tell you, it’s not within this curial body’s competence to make doctrinal statements that bind Catholic consciences. Moreover, the notion that an increasingly integrated world economy requires some type of authority able to make decisions about what the Church calls “the universal common good” has long been a staple of Catholic social teaching. Such references to a global world authority have always been accompanied by an emphasis on the idea of subsidiarity, and the present document is no exception to that rule. This principle maintains that any higher level of government should assist lower forms of political authority and civil-society associations “only when” (as this PCJP text states) “individual, social or financial actors are intrinsically deficient in capacity, or cannot manage by themselves to do what is required of them.”

But putting aside doctrinal questions, this text also makes claims of a more strictly economic nature. Given that these generally fall squarely into the area of prudential judgment for Catholics, it’s quite legitimate for Catholics to discuss and debate some of this document’s claims. So here are just a few questions worth asking.

First, the text makes a legitimate point about the effects of a disjunction between the financial sector and the rest of the economy. It fails, however, to note that one major reason for this disjunction has been the dissolution of any tie between money and an external object of value that regulates the quantity of money and credit in circulation in the “real” economy.

Between the late 1870s and 1914, such a linkage existed in the form of the classic gold standard. This gave the world remarkable monetary stability and low inflation without any centralized authority. You needn’t be a Ron Paul disciple to recognize that fiat money’s rise is at least partly responsible for the monetary crises this document correctly laments.

Second, this document displays no recognition of the role played by moral hazard in generating the 2008 crisis or the need to prevent similar situations from arising in the future. Moral hazard describes those situations when people are effectively insulated from the possible negative consequences of their choices. This makes them more likely to take risks they wouldn’t otherwise take — especially with other people’s money. The higher the extent of the guarantee, the greater is the risk of moral hazard. It creates, as the financial journalist Martin Wolf writes, “an overwhelming incentive to privatize gains and socialize losses.”

If PCJP were cognizant of this fact, it might have hesitated before recommending we consider “forms of recapitalization of banks with public funds, making the support conditional on ‘virtuous’ behaviours aimed at developing the ‘real economy.’” Such a recapitalization would simply reinforce the message that Wall Street can always turn to taxpayers to bail them out when their latest impossible-to-understand financial scheme goes south. In terms of orthodox Catholic theology, it’s worth reminding ourselves that the one who creates an occasion of sin bears some indirect responsibility for the choices of the person tempted by this situation to do something very imprudent or simply wrong.

Third, given this text’s subject matter, it reflects one very strange omission. Nowhere does it contain a detailed discussion of the high levels of public debt and deficits in many developed economies, the clear-and-present danger they represent to the global financial system, and their negative impact upon the prospects for economic growth (i.e., what gets people out of poverty).

Given these facts, how could governments provide the aforementioned public funds when they are already so heavily in debt and already tottering under the weight of existing fiscal obligations? By raising taxes? Even Bill Clinton thinks that’s not a great idea in an economic slowdown. Indeed, the basic demands of commutative justice indicate that governments need to meet their current obligations to existing creditors before they can even consider contributing to further bailouts.

Fourth, the document calls for the creation of some type of world central bank. Yet its authors seem unaware that much of the blame for our present economic mess is squarely attributable to central banks. Here one need only note that the Federal Reserve’s easy-money policies from 2000 onwards played an indispensible role in creating America’s housing-market bubble, the development of questionable securities products, and the subsequent 2008 meltdown.

Calls for a global central bank aren’t new. Keynes argued for such an organization 75 years ago. But why, given national central banks’ evident failures, should anyone suppose that a global central bank wouldn’t fall prey to the same errors? The folly of a centralized supranational body like the European Central Bank setting a one-size-fits-all interest-rate for economies as different as Greece and Germany should now be evident to everyone who doesn’t live in the fantasy world inhabited by EU bureaucrats. Indeed, it is simply impossible for any one individual or organization to know what is the optimal interest-rate for every country in the EU, let alone the world.

Plenty of other critiques could — and no doubt will — be made of some of the economic claims advanced in this PCJP document. As if in anticipation of this criticism, the document states, “We should not be afraid to propose new ideas.” That is most certainly true. Unfortunately, many of its authors’ ideas reflect an uncritical assimilation of the views of many of the very same individuals and institutions that helped generate the world’s most serious economic crisis since the Great Depression. For a church with a long tradition of thinking seriously about finance centuries before anyone had ever heard of John Maynard Keynes or Friedrich Hayek, we can surely do better.