On The American Spectator, Acton Research Director Samuel Gregg observes that, “as evidence for the European social model’s severe dysfunctionality continues to mount before our eyes, the American left is acutely aware how much it discredits its decades-old effort to take America down the same economic path.” Against this evidence, some liberals are pinning the blame on passing fiscal and currency imbalances. No, Gregg says, there’s “something even more fundamental” behind the meltdown of the post-war West European social model. (Thanks to RealClearWorld for linking).
… this reality is that the Social Democratic project is coming apart at the seams under the weight of the economic policies and priorities pursued by most Social Democrats (whatever their party-designation) — including the American variety.
From the beginning, post-war Social Democracy’s goal (to which much of Europe’s right also subscribes) was to use the state to realize as much economic security and equality as possible, without resorting to the outright collectivization pursued by the comrades in the East. In policy-terms, that meant extensive regulation, legal privileges for trade unions, “free” healthcare, subsidies and special breaks for politically-connected businesses, ever-growing social security programs, and legions of national and EU public sector workers to “manage” the regulatory-welfare state — all of which was presided over by an increasingly-inbred European political class (Europe’s real “1 percent”) with little-to-no experience of the private sector.
None of this was cost-free. It was financed by punishing taxation and, particularly in recent years, public and private debt. In terms of outcomes, it has produced some of the developed world’s worst long-term unemployment rates, steadily-declining productivity, and risk-averse private sectors.
Above all, it slowly strangled the living daylights out of economic freedom in much of Europe. Without Germany (which, incidentally, also engaged in welfare reform and considerable economic liberalization in the 2000s), it’s hard to avoid concluding that Social Democratic Europe would have imploded long ago.
Read “The American Left’s European Nightmare” by Samuel Gregg on The American Spectator.
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).
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:
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:
In this week’s Acton Commentary, “Corrupted Capitalism and the Housing Crisis,” I contend we need to add some categories to our thinking about political economy. In this case, the idea of “corporatism” helps understand a good deal of what we see in the American system today. Adding corporatism to our quiver helps us to make some more nuanced distinctions than simple “socialism” and “capitalism” allow.
Take, for instance, Mitt Romney’s contention this week while campaigning in Michigan that the bailouts of the auto companies was a feature of “crony capitalism.” A better way to understand the relationship between big business and big government today might instead be characterized as “crony corporatism.” You have a select group at the highest levels of an industry influencing government policy, which in turn favors those big businesses, provides various moral and fiscal incentives to consumers to patronize these industries, and then when necessary bails them out.
In this week’s commentary I use corporatism as a way of unpacking what happened in the recent housing crisis. For too long the American dream has revolved around home ownership. Owning a home is a good thing for many people; for many others it isn’t. What we have failed to recognize is the moral hazard that attends to government promotion of a particular vision of the American dream and the crises that result. As Dambisa Moyo characterized the housing crisis,
The direct consequence of the subsidized homeownership culture was the emergence of a society of leverage, one where citizen and country were mortgaged up to the hilt; promoting a way of life where people grew comfortable with the idea of living beyond one’s means.
The definition of the American dream offered by politicians should be far less precise, and presumably not include the level of specificity that says we should all own a home, drive a GM car, and have a college degree. As Nobel laureate Edmund Phelps put it in a 2009 interview,
I’m hoping that the administration and other thought leaders will succeed eventually in bringing the country back to the older idea that the American dream is having a career, getting a job, and getting involved in it, and doing well. That was the core of the good life. That’s what we have to get back to, and get away from this mystique that the most important thing in your life that could ever happen to you is to be a home owner.
The cultivation of an “ownership society” through government subsidy is only one feature of the creeping corporatism of contemporary America. As has been documented just in the last few days, the role of the government in directing and providing social goods has increased dramatically over recent decades. Following a New York Times story describing the increasing dependence of the American middle class on governmental initiatives of one form or another, Steve Hayward summarizes, “increasingly we’re taxing the middle class to pay themselves their own money, minus a large commission to Washington DC” (HT: The Transom). The government is increasingly using these subsidies and incentives to shape how people live their lives.
As I conclude in today’s piece, “The American people do not need politicians to tell them what happiness is and how it should be pursued. These are functions that our families, churches, and friendships fulfill.” One place to look instead would be the Westminster Shorter Catechism: “Man’s chief end is to enjoy God and glorify him forever.” Another would be the words of Jesus: “Life does not consist in an abundance of possessions” (Luke 12:15).
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.
In part 1 of “Secular Theocracy: The Foundations and Folly of Modern Tyranny,” David Theroux of the Independent Institute outlines a history of secularism, tracing the complex relationship between religion and the spheres of society, particularly church and government. “Modern America has become a secular theocracy with a civic religion of national politics (nationalism) occupying the public realm in which government has replaced God,” he argues.
One of the key features necessary to unraveling the knotty problems surrounding the idea of secularism is distinguishing between the separation of church and state on the one hand, and religion and public life on the other. Hunter Baker does an excellent job describing this distinction and its consequences in his book, The End of Secularism. Secularism, as Baker and Theroux use the term, is a far more vigorous concept than the institutional separation of church and civil government. As Baker writes,
Secularism is much more than a formal financial and legal separation of church institutions and state institutions. It is a way of living together in community that emphasizes clean conceptual boundaries over organic beliefs and traditions. Here we come to a critical point. Secularism is not and should not be synonymous with the separation of church and state.
George Weigel recently observed the thirty year anniversary of the imposition of martial law in Poland. He noted the “weakness” of the tyrannical government, which had to resort to such tactics. “Politics and economics are important,” he writes. But “what drives history over the long haul, however, is culture: what men and women cherish, honor, and worship; what men and women are willing to stake their lives, and their children’s lives, on.”
So what we need to be most concerned about, it seems, is a kind of cultural and conceptual secularism, a secularist worldview, that provides the basis for a more far-reaching and insidious form of secular political tyranny.
Look for part 2 on “Secular Theocracy” from Theroux in January. And in the meantime you can check out a controversy feature in the Journal of Markets & Morality between Hunter Baker and Jonathan Malesic on the question, “Is Some Form of Secularism the Best Foundation for Christian Engagement in Public Life?” Issue 13.2 of the journal will be publicly available shortly, but you can also get instant access by becoming an electronic subscriber.
Glenn Barkan, retired dean of Aquinas College’s School of Arts and Sciences here in Grand Rapids, had a piece worth reading in the local paper over the weekend related the current trend (fad?) toward buying local. In “What’s the point of buying local?” Barkan cogently addresses three levels of the case for localism in a way that shows that the movement need not have the economic, environmental, or ethical high ground.
At the economic level, Barkan asks, “Does the local stuff taste better than the imported stuff?” This is essentially a question about competitive advantage. This is the economic idea that some locations, given geographic, cultural, or other features, are better places to produce certain things than other places. Try as one might, it is difficult to grow mangoes in Michigan.
But one of the arguments against large-scale (statewide, national, or global) trade is that there are large environmental consequences. To this point, Barkan writes, “Following this thread means that most decisions which in the past were made on a variety of criteria will now be made only upon the criteria of consuming resources in transportation. How can I keep my carbon footprint small? No more Swiss chocolate, Italian cheese or French wine. Is this what we want?” I think that is what many of the localists in fact do want. It is somehow immoral for me, living in Michigan, to consume mangoes grown in Mexico.
What these kinds of considerations lead to is the moral claim that, in Barkan’s case, for instance, “I have some sort of moral obligation to buy Granny Smith apples from Michigan, and not from Washington.” To this Barkan responds that one mark of moral calculation is discerning where needs really lie: “If I had to choose between making a purchase which provided an income for a very needy family in Alabama, or a less needy family in Kent County, I think I would choose the former.” And better yet, given the relative wealth of even the poor in America on a global scale, we might say that poor workers in the developing world need trade more than the relatively poor in America.
An article in the Spring issue of the Journal of Markets & Morality makes the implications of these kinds of considerations quite well. In “Social Choice: The Neighborhood Effect,” Brian K. Strow and Claudia W. Strow write in the context of wealth redistribution, “a lower-middle-class worker by Massachusetts standards may be a net beneficiary of income redistribution at the Commonwealth definition of society but is likely to be a net contributor at the national definition. They most certainly would lose the vast majority of their income if the world were used as the definition of society.”
The payoff for Barkan is that “a soul is a soul. Whether it is a Kent county soul, or one from California, or Ghana. I choose to have my purchasing decision do the most good for the most needy. Regardless of localism.”
Or as economist Victor Claar put it, “we should treat people as people, no matter where they happen to live. We are all created in the image of God. I find it distressing that we protect relatively affluent Americans when we should give everybody an opportunity to do something they can do well, at a low cost, in a high quality way.”
A person’s a person, no matter how far.