Posts tagged with: market economy

Blog author: jcarter
Monday, November 14, 2016

socialism-0916“In spite of socialism’s sorry track record, millions of well-meaning people think it’s a virtual synonym for compassion,” says Lawrence Reed. “But socialists themselves are constantly retreating from their own handiwork. It’s socialism until it doesn’t work, then it was never socialism in the first place. It’s socialism until the wrong guys get in charge, then it’s everything but.”

Socialism never seems to have any theory of wealth creation, only fanciful schemes for its reallocation after somebody goes to the trouble of creating it.

Oxford Dictionaries (whose slogan is “Language Matters”) defines socialism as “a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.”

What is meant by “the means of production, distribution and exchange should be owned or regulated by the community as a whole”? If you own a convenience store, are you supposed to put to some public vote the decisions about what to stock the shelves with or whom to hire for the night shift?

Read more . . .

Blog author: jballor
Monday, June 2, 2014

Soup-NaziIn an article in the Journal of Markets & Morality, Ryan Langrill and Virgil Henry Storr examine “The Moral Meanings of Markets.” They argue that “traditional defenses of the morality of the market tend to inadequately articulate the moral meanings of markets.” Such defenses tend to argue from practical, even pragmatic or utilitarian, grounds.

But for Langrill and Storr, “markets depend on and promote virtue.” Evidence of this virtue in the marketplace, they argue, is that “consumers are often willing to pay a premium and workers are often willing to work at a discount in order to interact with honest, trustworthy, faithful, and even loving (i.e., charitable) brokers and merchants.”

A recent study seems to contradict this finding, however, noting that at least in some circumstances rude behavior by retail clerks increases sales. Today at Think Christian in “The Paradoxical Appeal of Rude Sales Clerks,” I explore these findings and put them within the broader context of what it might mean to “ration by rudeness.”

Read more: Ryan Langrill and Virgil Henry Storr, “The Moral Meanings of Markets,” Journal of Markets & Morality 15, no. 2 (Fall 2012): 347-362

Blog author: jcarter
Monday, November 4, 2013

At Public Discourse, Nathan Shlueter takes an unusual approach in his review of Acton’s Director of Research Sam Gregg’s Tea Party Catholic — it’s a memo to the faculty of Georgetown University as written by Sen. Paul Ryan:

As Gregg’s book makes clear, defending market economies does not make one a libertarian. And, in fact, no libertarian or Randian egoist would approve of my budget plan, which—whether you agree with it or not—is a sincere attempt to preserve and improve a financially endangered social safety net, not destroy it. Nor should defense of the market be confused with crony capitalism, which is profoundly unjust, and which I have spoken out against strongly and repeatedly. Finally, the market is not a panacea for all our ills, and is even a source of a few of them. There are common goods that can only be secured by good government. And, like government, the market will only be as good as the human beings who act within it.

The fact that we disagree on some matters of policy does not necessarily mean that either of us is outside Catholic social teaching. As Gregg points out, in most cases, Catholic social teaching only provides the correct principles for resolving complex social and economic questions, rather than specific policy requirements. This means that in most cases there is room for legitimate disagreement on the correct application of those principles.

Read more . . .

Anyone who’s driven across the American landscape knows that there will be a familiar string of fast-food chains, gas stations and box stores along the expressways. You could virtually eat the same meal as you drive from one coastline of fast-food-exit-signAmerica to the other. Michael Matheson Miller, Research Fellow and Director of PovertyCure at the Acton Institute, takes up this issue, asking, “Does capitalism destroy culture?”

[S]ince the cultural critique comes from political observers at almost every point on the political spectrum, and since the bureaucratic-capitalist economies of the world really are cultures in crisis, the criticism is worth attending to seriously.

If we are going to analyze the cultural effects of market economies then I think the one of the first things we need to do is distinguish between those things Peter Berger called “intrinsic” to capitalism and those “extrinsic” to it. We need to distinguish among at least three things:

  • the cultural effects caused by capitalism,
  • effects aided and abetted by capitalism,
  • and those things that exist alongside capitalism and are often conflated with capitalism, but that are distinct from it.

I will say from the outset that I support open, competitive economies that allow for free exchange, but I would not call myself a “capitalist.” Capitalism is generally a Marxist term that implies a mechanistic view of the economy and a false dichotomy between “capital” and “labor.” Capitalism also comes in a variety of forms and can mean many things. There is corporate capitalism, oligarchic capitalism, crony capitalism, and managerial-bureaucratic capitalism, such as we have in the United States. However, cultural critics of capitalism usually don’t make those distinctions and, even if they did, many would still be critical of an authentically free market. So without trying to tease apart all of these strands at the outset and so risk never getting anywhere let me use the term “capitalism” and ask and answer the question with the broadest of brushstrokes. Does capitalism corrode culture?  I think the answer is yes and no.


Coming during the week prior to Easter, I naturally thought the email I received from Sojourners — which I have been reading for my Lenten penance religiously — would contain some spiritual admonishment. “Just one week until … ” the subject line said. Am I at fault for thinking my mind was going to be directed to the good news of human redemption in the Resurrection of the Lord just a few days hence?

Ironically, the organization that so regularly decries free markets and denounces profit-making was merely hyping Jim Wallis’ new book, On God’s Side: What Religion Forgets and Politics Hasn’t Learned about Serving the Common Good. Wallis, as far as I can tell from his previous efforts, wants us to believe that you are on God’s side as long as you are on Jim’s side, because that is God’s side when it comes to economic life.

Blog author: dpahman
Wednesday, December 12, 2012

G. K. Chesterton
(one of the founding fathers of distributism)

Today at Ethika Politika, in response to a few writers who have offered, in my estimate, less-than-charitable characterizations of capitalism, I ask the question, “Which Capitalism?” (also the title of my article). I ask this in seriousness, because often the free economy that people bemoan bears little resemblance to the one that many Christians support. In particular, I ask, “Which Capitalism?” in reference to the following from Pope John Paul II, who outlines in his encyclical Centesimus Annus (no. 42) two different forms of capitalism as follows:

The first is “an economic system which recognizes the fundamental and positive role of business, the market, private property and the resulting responsibility for the means of production, as well as free human creativity in the economic sector” that “is the victorious social system” since the fall of the Soviet Union and that “should be the goal of the countries now making efforts to rebuild their economy and society.” The second is “a system in which freedom in the economic sector is not circumscribed within a strong juridical framework which places it at the service of human freedom in its totality, and which sees it as a particular aspect of that freedom, the core of which is ethical and religious.”

All three of the authors I take issue with are Roman Catholic and two of them have voiced their support for distributism as an alternative to capitalism. However, I ask with all sincerity, “[S]hould not distributists be asking whether distributism is a form of capitalism, rather than setting it up as an alternative to capitalism?” Given the high praise given by Pope John Paul II to capitalism, rightly understood as the free economy, ought not distributists simply be arguing that they, perhaps, have some valuable insights for supporters of capitalism, rather than opposing distributism to capitalism, uncharitably understood? (more…)

Blog author: jcarter
Friday, November 30, 2012

In a web exclusive preview to the latest issue of Renewing Minds, a new journal of Christian thought from Union University, Jordan Ballor considers the future of free enterprise:

That the United States has been blessed with great prosperity is beyond argument. Even critics of the American system of government and economy admit that the system of free enterprise has been unmatched in its ability to generate wealth. As Hunter Baker notes, this reality has occasioned a shift in the polemic against free enterprise. Pointing to John Kenneth Galbraith’s argument in The Affluent Society, which “implicitly conceded that earlier critics of the free economy had been wrong in their repeated assertions that competitive capitalism failed to yield broad benefits to the public,” Baker observes that “critics of the free market now argue more on the basis of inequality and relative deprivation instead of on the basis of absolute deprivation.”

Where the fairness of the unequal outcomes characteristic of market economies can no longer be assumed, the burden of proof shifts to those who would defend the merits of free enterprise.

Read more . . .