Posts tagged with: Michael Novak

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 . . .

dollarbillcryingActon’s director of research, Samuel Gregg, is looking ahead to a post-Obama economy. He notes that every presidency has problems it leaves behind upon exiting the White House, but we have some major economic and moral obstacles to overcome.

Gregg outlines the challenges: mounting debt, entitlement programs that keep growing, crony capitalism, unemployment. What to do?

Doing nothing isn’t an option for American conservatives. I’d suggest, however, that the incremental approach generally followed by conservatives—which often amounts to trying to adjust, rather than override or completely dispense with, policies enacted by progressives—isn’t going to be enough either. Conservatives are instinctively wary of major upheavals. Yet if they really believe that progressive economic policies are seriously damaging the common good, they should perhaps do what progressives do: implement fundamental changes.

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Alexis_de_tocqueville_croppedWhat is social justice? Is it a vision of a perfectly just society? Is it an ideal set of government policies? Is it a particular theory or practice? Is it a virtue? A religious concept? A social arrangement?

In a lecture at Acton University on his forthcoming book, Social Justice: What It Is, What It Isn’t, Michael Novak sought to answer some these questions with a particular framework around intermediary institutions.

Offering a broad survey of the term’s origins, history, and modern use and application, Novak countered modern misconceptions of social justice (e.g. as another word for equality), and sought to outline a definition that’s (1) connected to the original understanding, (2) ideologically neutral, and (3) applicable to current circumstances.

Leaning first on Pope Leo XIII for an original understanding, he proceeded to channel Alexis de Tocqueville, describing social justice in terms of our activity in basic, day-to-day associations. This begins with religion, of course, which “dominates our hearts,” he said, without the support of the state, and in turn, transforms our orientations and imaginations toward citizens, institutions, and law. With this as the basic order of things, social justice begins when the individual rightly understands his relation to God, and proceeds to engage with civilization accordingly. (more…)

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…)

CP Headshot May 2014Named after distinguished theologian, Michael Novak, this award recognizes outstanding scholarly research that examines the relationship between religion, economic freedom, and the free and virtuous society. Catherine Ruth Pakaluk, assistant professor of economics at Ave Maria University, is the latest Novak Award Winner.

Pakaluk is Founder-Director of the Stein Center for Social Research at Ave Maria University. This center is an interdisciplinary institute for advanced studies in social science and social thought. It focuses on questions of gender, personality development, marriage and family formation, fertility and demographic change, religious practice, and the formation and education of children. Pakaluk currently works in the areas of demography, family studies, the economics of education and religion, and the interpretation of Catholic social thought. She earned her doctorate in economics at Harvard University (2010), where her dissertation under Caroline Hoxby examined the relationship between religion and educational outcomes. Prior to earning her doctorate from Harvard University, Catherine received a master’s degree in economics from Harvard (2002), and a bachelor’s degree from the University of Pennsylvania in mathematics and economics (1998). (more…)

Blog author: jcarter
Wednesday, November 19, 2014
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What is the connection between private property and conscience rights? “If there is no private property,” says Michael Novak in this week’s Acton Commentary, “there is also no independent leg to stand on in speaking for one’s conscience — and not only one’s individual conscience.”

In Poland and elsewhere, religious communities had inspired and led the nations for hundreds of years. In such places, people were not imprisoned solely in their own individual power, which was little. Sometimes they acted through institutions and associations of their own choosing. Solidarity in Poland, for example, or People Against Violence in Slovakia.

Sometimes they acted through associations and institutions they had been born into, and long been become grateful for. They knew by family history the many ways in which these institutions had nourished, taught, and trained them in the habits of conscience, self-government, and personal responsibility. These institutions had for centuries stood outside the passing follies of the age, and had been the people’s source of independence from the self-centered, decadent, and at times even thuggish “wisdom” of their particular generation.

The full text of the essay can be found here. Subscribe to the free, weekly Acton News & Commentary and other publications here.

Blog author: jballor
Wednesday, July 23, 2014
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Giotto di Bondone - No. 27 Scenes from the Life of Christ - 11. Expulsion of the Money-changers from the Temple - WGA09209Last month the New York Times hosted a discussion on the question, “Has Capitalism Become Incompatible With Christianity?” There’s lots to be said about the “Room for Debate” feature, including a note on the caption for the lead image in the introduction.

The image is a rendering of the classic scene from the Gospels, Jesus’ cleansing of the temple. The NYT caption reads thus: “Jesus comes down hard on the bankers of his day.” Perhaps that’s a bit of ideological balance for the phrasing of the debate question itself, which supposes that at least at one time that “capitalism” and Christianity were compatible, even if they are no longer.

Occasioned by the NYT feature, although not a direct response, is a piece today over at Think Christian, in which I introduce what I consider to be some important distinctions to keep in mind when thinking about the Christian faith and economics.
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