Posts tagged with: wilhelm roepke

“Today’s welfare state is largely the construction of decades of liberal political activism,” writes James C. Capretta. “If it is failing, and there is strong evidence that it is in many ways, then that is a stinging indictment of the liberal governing philosophy more than anything else.” He argues for more conservative activism on the poverty problem, particularly in education.

An effective conservative critique of existing policies starts with the acknowledgement that a strong social safety net is a must in a modern, market-based economy, and that the safety net built here in the United States, though flawed, has contributed substantially to improving the conditions for the poor. The official measure of the poverty rate is completely misleading in this regard because it does not include transfer programs or the taxes people pay in the measure of income. So, in a very real sense, no matter how much the government spends, the official poverty rate remains unchanged.

But when tax and transfer programs are factored into the assessment, and when the consumption patterns of the poor are examined and not just their cash incomes, the picture changes quite dramatically. The panoply of governmental support programs—Medicaid, Food Stamps, the earned income tax credit, housing vouchers, school lunch programs, and many more—substantially raise the living standards of those who otherwise have very low incomes. (more…)

Acton Research Director Samuel Gregg is featured on the July 29 episode of Liberty Law Talk. The conversation, which focuses on the too-often forgotten free-market economics of Wilhelm Röpke, can be downloaded online at the Library of Law and Liberty website. Gregg has written extensively on Röpke in the past and the conversation meets expectations as enlightening and thought-provoking. Be sure to check it out.

Online today at The American Spectator is an article from Acton Research Director Samuel Gregg. The article highlights the forethought of German economist Wilhelm Röpke, who predicted Europe’s present economic downturn in the middle of the twentieth century. Röpke, Gregg says, was a “euroskeptic” before the term existed. Excerpt here:

Where Röpke proved correct was in envisaging that efforts to impose European political integration from the top-down would go hand-in-hand with attempts to replicate large welfare systems and extensive regulation across Europe. What’s now called “Social Europe,” Röpke maintained, was integral to the same dirigiste and rationalist mindset that viewed extensive planning by political-bureaucratic elites as infinitely superior to the workings of Adam Smith’s invisible hand within a legal framework of clear rules and limited government.

Röpke died in February 1966, decades before the present crisis that’s created a bleak economic future for an entire generation of young Europeans and turned the phrase “Greece” into a byword for dysfunctionality. Like many prophets, Röpke’s predictions about the long-term effects of choices made by European leaders in the 1950s and 1960s were mocked in his own time. But in the unlikely event of Europe’s political masters escaping the echo chamber that tells them that salvation can only be found in ever-greater centralization, those whose knowledge of history extends beyond the last 24 hour news cycle might be honest enough to admit that Röpke was right.

And the PIIGS might fly.

Entire article here.

Acton Institute Research Director Samuel Gregg joins guest host Paul G. Kengor on Ave Maria Radio’s Kresta in the Afternoon. In this June 28 segment, Kengor asks, “When we talk as Catholics about elevation of the poor and service to those who are less fortunate, we often talk about subsidiarity and social justice. What do those terms mean in the context of Catholic social teaching?”

Listen to “Subsidiarity and Social Justice. What do those terms really mean?” by clicking on the audio player icon below.

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Samuel Gregg has authored several books including On Ordered Liberty, his prize-winning The Commercial Society, and Wilhelm Röpke’s Political Economy.

Read his Acton commentaries here. And his PowerBlog post: “What is the USCCB’s problem with subsidiarity?”

Paul Kengor, Ph.D., is professor of political science at Grove City College, a four-year, private Christian liberal arts college in Grove City, Pennsylvania. He is executive director of the Center for Vision & Values, a Grove City College think-tank/policy center, and a visiting fellow at the Hoover Institution on War, Revolution, and Peace at Stanford University.

Blog author: jcouretas
Monday, April 5, 2010
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First Principles, the excellent Web-based resource from the Intercollegiate Studies Institute, has posted another “classic” from its extensive archive of journal articles, this one by Wilhelm Roepke. I’m snipping a kernel from “The Economic Necessity of Freedom” (Modern Age, Summer 1959) because it so succinctly and powerfully sums up why a moral framework — and our “highest values” — are necessary for a market economy that is not only efficient, but humane. These values flow out of the “classic-Christian heritage of Europe” and are rooted, for Roepke, in an orthodox Christian anthropology.

… I came to see that socialism did not have the cure for our social ills, that indeed socialism was a heresy which aggravated these ills the more men acted on it. The economic “orthodoxy” according to which I adjudged socialism a heresy was historical liberalism, and with this liberalism I am quite willing to take my stand. What such liberalism advocates in the economic realm can be very simply stated. It holds that economic activities are not the proper sphere of any planning, enforcing, and penalizing authority; these activities are better left to the spontaneous co-operation of all individuals through a free market, unregulated prices, and open competition.

But there is more to the matter than the advocacy of a certain economic technique. As an economist, I am supposed to know something about prices, capital interests, costs, and rates of exchange, and all of them supply arguments for free enterprise; but my adherence to free enterprise goes to something deeper than mere technical grounds, and the reason for it lies in those regions where each man’s social philosophy is ultimately decided. Socialists and nonsocialists are divided by fundamentally different conceptions of life and life’s meaning. What we judge man’s position in the universe to be will in the end decide whether our highest values are realized in man or in society, and our decision for either the former or the latter will also be the watershed of our political thinking.

Thus my fundamental opposition to socialism is to an ideology that, in spite of all its “liberal” phraseology, gives too little to man, his freedom, and his personality; and too much to society. And my opposition on technical grounds is that socialism, in its enthusiasm for organization, centralization, and efficiency, is committed to means that simply are not compatible with human freedom. Because I have a very definite concept of man derived from the classic-Christian heritage of Europe in which alone the idea of liberty has anywhere appeared, because that concept makes man the image of God whom it is sinful to use as a means, and because I am convinced that each man is of unique value owning to his relationship to God but is not the god declared by the hybris of an atheistic humanism — because of these things, I look on any kind of collectivism with the utmost distrust.

And, following from these convictions along the lines of reason, experience, and the testimony of history, I arrive at the conclusion that only a free economy is in accordance with man’s freedom and with the political and social structure and the rule of law that safeguard it. Aside from such an economic system (for which I make no claims of automatically perfect functioning), I see no chance of the continued existence of man as he is envisaged in the religious and philosophical traditions of the West. For this reason, I would stand for a free economic order even if it implied material sacrifice and if socialism gave the certain prospect of material increase. It is our undeserved luck that the exact opposite is true.

Blog author: jcouretas
Thursday, February 12, 2009
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In my Winter 2007 article on economic globalization for AGAIN Magazine, I quoted economist Wilhelm Roepke. (AGAIN is published by Conciliar Media Ministries, a department of the Antiochian Orthodox Christian Church of North America). Roepke:

Economically ignorant moralism is as objectionable as morally callous economism. Ethics and economics are two equally difficult subjects, and while the former needs discerning and expert reason, the latter cannot do without humane values.

In light of all that has happened with the U.S. economic meltdown in the last few months, I continue to subscribe to the following statement from the same article:

… there is no real understanding of “social justice” without an understanding of basic economic principles. These principles explain how Orthodox Christians work, earn, invest, and give to philanthropic causes in a market-oriented economy. Economic questions are at the root of many of the problems that on their face seem to be more about something else — poverty, immigration, the environment, technology, politics, humanitarian assistance.

I remain a convinced believer in the market economy, which is a different thing than saying that I believe in the “free market” (a misnomer for industrialized economies that have always been subject to heavy regulation) or laissez faire economics (not a good idea and, again, a term that refers to something that doesn’t exist).

The climate of fear and panic that has been raised first by the Bush administration and now President Obama (we’re in a “crisis that could become a catastrophe” he claims) should have us all screaming not “help!” but “stop!” The alarm we raise should be about the fantastic expansion of government control — in some cases outright nationalization — over what was one of the freer markets in the world. And let’s recall that most Orthodox Christian immigrants came to this country for economic opportunity — in many cases a chance to put their entrepreneurial gifts to work in a growing and prosperous country. How much opportunity will be left once Washington gets finished with its top down central planning project? If this current crisis has taught us anything, it is the importance of economic growth and sustaining that growth in a humane way over the long haul.

So, I go back to Roepke for guidance on what’s being proposed in Washington. In particular, I turn to his 1957 book, “A Humane Economy: The Social Framework of a Free Market” (ISI, 1998). Page numbers in brackets:

On the necessity for economic liberty [104]: “Since liberty was indivisible, we could not have political and spiritual liberty without also choosing liberty in the economic field and rejecting the necessarily unfree collectivist economic order; conversely, we had to be clear in our minds that a collectivist economic order meant the destruction of political and spiritual liberty. Therefore, the economy was the front line of the defense of liberty and of all its consequences for the moral and humane pattern of our civilization.” (more…)