Frank Schaeffer: Bachmann, Palin, Perry Use Religion Like Snake Oil Salesmen (2011)


Remaining Orthodox in a Secular World : A Sermon by Frank Schaeffer (2002)

Mark Tooley, president of the Institute on Religion and Democracy (IRD), has a story on FrontPageMag.com about Frank Schaeffer’s call for the Occupy Wall Street protesters to go after evangelical Christians. Schaeffer is the son of evangelical theologian Francis Schaeffer (1912-1984). Tooley:

A blogger for The Huffington Post, young Schaeffer is now faulting religious conservatives for facilitating Wall Street greed. He’s imploring the Wall Street Occupiers to “protest the root source of America’s tilt to the far unregulated corporate right.” For Schaeffer, the next logical step is to demonstrate “outside mega churches, Evangelical publishing houses, [and] religious organizations that lead the ‘moral’ crusades against women and gays and all the rest.”

The article, titled “Wall Street Occupiers Urged to Target Churches,” also describes Schaeffer attacking Roman Catholics as “likewise ‘fundamentalists’ who have ‘delegitimized the US Government and thus undercut its ability to tax, spend and regulate.’ So Catholic bishops, like evangelical mega churches, have also tricked their followers into voting against their ‘own class and self-interest.'” See the top video in this post for a sample of Schaeffer spleen.

In August, New York Times reporter Mark Oppenheimer interviewed Schaeffer about his new book Sex, Mom and God and said that that the author’s “break with conservatism, and with evangelicalism, came in the late 1980s.” But, as Oppenheimer described it in “Son of Evangelical Royalty Turns His Back, and Tells the Tale,” Schaeffer:

… had long been skeptical of many of his bedfellows. He found the television pastor Pat Robertson and some of his colleagues to be ‘idiots,’ he told me last week, when we met for coffee in western Massachusetts. Looking back, Mr. Schaeffer says that once he became disillusioned he ‘faked it the whole way.’

Schaeffer might be telling the truth, but remember he’s a self-confessed faker. One thing’s for sure — Oppenheimer didn’t do his homework.

The second, grainy video at the top of this post, shot in a Greek Orthodox church about six months after the World Trade Center terrorist attacks on Sept. 11, 2001, shows Schaeffer in his post-evangelical, pre-HuffPo culture wars mode — more than a decade after his purported “break” from the right. You hear him warning those in the pews about the threat from “the Islamic horde that now pours toward our frontiers” and hear him berating Protestants and Catholics for their soft “feminized” Christianity that won’t stand up to secularism, hedonism and a whole catalog of evils that might have been formulated by, say, Pat Robertson. Schaeffer wants a Christianity that isn’t wishy-washy, therapeutic and “sentimental” but has a “my way or the highway” ethic — a lot like the U.S. Marine Corps. In fact, he has found the alternative to America’s flabby faith: the Orthodox Church.

A tireless book promoter (see also the first five minutes of this longer video), Schaeffer spent a good part of the 1990s and beyond attacking Western Christianity for its many failures and novelties over and against the “pure and clean and perfect” Orthodox Church, into which he was received as a convert. The launching pad for much of this vitriol was his 1995 book, Dancing Alone: The Quest for Orthodox Faith in the Age of False Religions, which combined Orthodox triumphalism and cold-hearted sectarian vituperation and took it to new heights.

My Greek Orthodox parish was instrumental in bringing Schaeffer to Grand Rapids, Mich., in 1995 for a speaking engagement at a local high school that drew more than 1,000 people. The crowd included many curious Protestants who wanted to hear the son of the famous evangelical theologian explain why he had left the fold and converted to Orthodoxy. While in town, Schaeffer was interviewed on Calvin Forum, a public affairs program on the Calvin College educational TV channel. Indeed, the Reformed minister who interviewed him later was received into the Orthodox Church. Listen to Kevin Allen of Ancient Faith Radio interview former moderator of Calvin Forum, Robert Meyering, about the role Schaeffer played in his journey East.

What is Orthodoxy? According to Schaeffer, “it is the church that has maintained the worship, the sacrament, the truth, in its only pure form that can be found in the world today.” Problem is, in his current incarnation as scourge of the Religious Right, Schaeffer doesn’t say much about the Orthodox Church and his many years of (faking it again?) traveling the country as a Neo-Byzantine circuit rider. You see no evidence on his personal web page of any of those rants against the Catholic and Protestant enemies of Orthodoxy, nor access to a digital version of his tabloid Christian Activist newspaper that was frequently the vehicle for these attacks.

In Dancing Alone, Schaeffer decried the “Protestant debacle [embodied in the ecumenical movement] which has resulted in the disintegration of Western civilization, the acceptance of abortion on demand, the ordination of women, homosexuals and lesbians, the apostasy and heresy inherent in ‘liberal’ Protestant theology.” This was years after he “broke” with the conservatives and Religious Right? Here’s the contents page for the book on Regina Orthodox Press, the publishing house Schaeffer founded and which continues to sell titles like From Baptist to Byzantium and The Virtue of War.

Schaeffer’s Orthodox history might be inconvenient to him today because based on the Church’s teachings — sanctity of life, sexuality, marriage, a hyper-patriarchal priesthood — it looks a lot like the dimwitted “Taliban” Christians and “fundamentalists” that Schaeffer spends so much time denouncing of late. Then again, you can hardly go around advertising the fact that you spent years proselytizing on behalf of traditional morality if, today, you want to maximize your page views on HuffPo and get MSNBC producers to call you back.

IRD covered a speech Schaeffer recently gave in which he cited the Orthodox tradition’s reverence for “holy mysteries” as grounds for rejecting “the frozen being of belief.” But the mysteries of the faith in Orthodox teaching (indeed, the Christian faith rests on profound mysteries) do not provide a basis for a faith that changes, as he puts it, “like the weather.” He should go back and re-read his history of the Ecumenical Councils if he thinks that “anything goes” is how the Church does theology.

Years ago, it was obvious to some Orthodox Christians that Schaeffer had anger management issues. In a 1995 review of Dancing Alone, the scholar and essayist Vigen Gurioan said the book “oozes with the same moralism, instrumentalism and pragmatism that have contributed to the secularization and loss of catholic Christian consciousness that he condemns.”

Schaeffer, Guroian wrote, is at heart an individualist who has taken it upon himself to single handedly interpret the Truth and right all wrongs:

Schaeffer seems to have become Orthodox because the rest of America has gone wrong, and Orthodoxy is the best religious remedy for cultural crisis and moral malaise. At work here is not the catholic mind of the church but the romantic self that takes upon itself the task of reconstructing and arbitrating theological truth. Schaeffer intones “Holy Tradition” repeatedly when he passes judgment on the falsehood in others and claims truth for his own statements (“Holy Tradition says…”). But at center stage as arbiter and mediator of this so-called Holy Tradition is the “I.”

Schaeffer is still arbitrating the truth, but now from the left. Fair enough. That’s his choice. Although, inciting mobs to attack churches and publishing houses does sound a tad intolerant.

But the New York Times claim that the years of “faking it” among Christian traditionalists ended in the late 1980s, doesn’t hold water. Actually, his right wing, sectarian hate speech phase extended deep into the 1990s and 2000s, albeit masquerading in the rich brocades of Orthodox triumphalism. You wonder: Because Frank Schaeffer is such a good faker, could he still be faking it today? Is he a double agent in the culture wars, secretly going among the liberals at HuffPo and MSNBC until the time is ripe to once again expose the evildoers with new books and fresh tirades? We’ll have to stay tuned.

Samuel Gregg is quoted in today’s New York Times story about the Vatican note calling for a central world bank — he gives the final word on the document. The “politically liberal Catholics” quoted before him reveal that they have missed a crucial distinction in the document produced by the Pontifical Council for Peace and Justice. Gregg, of course has picked up on that distinction; he wrote yesterday:

Putting aside doctrinal questions, this text also makes claims of a more strictly economic nature…. The text makes a legitimate point about the effects of a disjunction between the financial sector and the rest of the economy.

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.

The academics and activists who see in the document a way forward to socialism have missed the split between the note’s diagnosis of the world economy, and its proposed economic reforms. I cannot resist quoting G.K. Chesterton: “The reformer is always right about what is wrong. He is generally wrong about what is right.”

To say that “the time has come to conceive of institutions with universal competence,” as PCPJ President Cardinal Turkson did yesterday, is all well and good, but the possibility of such institutions running effectively is another matter.

Indeed, Kishore Jayabalan, the director of Istituto Acton and a former staffer at the Council, asked the National Catholic Reporter, “What makes the [Council] think that ‘global’ leaders will succeed where so many national ones have failed? It is a shame this document is based more on sentimental political hopes for world government than on actual experience and expertise of financial markets.”

This morning the Pontifical Council for Justice and Peace issued a bold statement advising how to bring order to the global financial crisis. I was in attendance at the much anticipated press conference that was organized to debrief reporters on the statement’s content.

The statement came in the form of a “Nota” (“Note” in Vatican terms): Towards Reforming the International Financial and Monetary Systems in the Context of Global Public Authority.

The President and Secretary of the Council, together with a University of Rome economics professor summarized the points and context of the Note. They were met with tough questions from 60 feisty Vatican-beat journalists representing international newspaper, television and radio outlets.

To say the least, the Council’s Note was controversial and not something you normally see released from a Vatican Council. Normally, concerning specific economic policy and governance, Vatican authorities speak much more boldly on moral and theological matters and much less so on practical prescriptions.

Before getting started with the debriefing, there were a few waivers and clarifications to make about the Note’s official extent of authority and relevance.

Both the council’s President, Cardinal Peter Turkson, and Vatican Press Secretary, Fr. Federico Lombardi, made it very clear that the statement was “not in any way the opinion of the pope”, but solely that of the Pontifical Council of Justice and Peace and those that composed it.

One of the journalists present asked if the Holy Father himself had read the document, to which the Council’s Secretary, Bishop Mario Toso, said the document had only been reviewed by the Secretariat of State and was released to stimulate the practical and moral thinking of world economic leaders attending the G-20 summit this November 3-4 in Cannes, France and to “invite a process of discernment among all peoples of the world” as Cardinal Turkson later added.

Most of the heated questions at the Vatican press conference concentrated on the potential utopian vision of a single world government authority a la United Nations and IMF to promote financial and monetary security as well as greater equality among the rich and poor in teetering markets and destitute nations. Professor Leonardo Becchetti told journalists from the panel that “the world has changed…a globalized economy now calls for a global government”.

Bishop Toso was quick to point out that the statement’s opinions on a global financial authority took inspiration from Pope Benedict’s 2009 encylcical letter, Caritas in Veritate, where he said the Holy Father underscored that some form of world authority was necessary to bring order to the global economic chaos in full force. Therefore, as the Council’s officials argued, some legitimacy to their argument for a world economic authority stemmed from the Church’s official social teachings.

The reference to Caritas in Veritate had today’s journalists on edge with further demanding questions about the natural tendencies and historical proofs that corruption, self-interests and sin almost always destroy the good intentions and original human ideals of large-scale governance and any political authority wielding massive power.

Here are some extended clips from the first and third parts of the Council’s statement, where the issues of economic development, inequality and global financial authority are addressed.

The English translation is still in a process of final revision and should be released soon along with expert articulation and commentary from the Acton staff. Stay tuned for more!


1. Economic Development and Inequalities

The grave economic and financial crisis which the world is going through today springs from multiple causes. Opinions on the number and significance of these causes vary widely. Some commentators emphasize first and foremost certain errors inherent in the economic and financial policies; others stress the structural weaknesses of political, economic and financial institutions; still others say that the causes are ethical breakdowns occurring at all levels of a world economy that is increasingly dominated by utilitarianism and materialism. At every stage of the crisis, one might discover particular technical errors intertwined with certain ethical orientations.

In material goods markets, natural factors and productive capacity as well as labour in all of its many forms set quantitative limits by determining relationships of costs and prices which, under certain conditions, permit an efficient allocation of available resources.

In monetary and financial markets, however, the dynamics are quite different. In recent decades, it was the banks that extended credit, which generated money, which in turn sought a further expansion of credit. In this way, the economic system was driven towards an inflationary spiral that inevitably encountered a limit in the risk that credit institutions could accept. They faced the ultimate danger of bankruptcy, with negative consequences for the entire economic and financial system

After World War II, national economies made progress, albeit with enormous sacrifices for millions, indeed billions of people who, as producers and entrepreneurs on the one hand and as savers and consumers on the other, had put their confidence in a regular and progressive expansion of money supply and investment in line with opportunities for real growth of the economy.

Since the 1990s, we have seen that money and credit instruments worldwide have grown more rapidly than revenue, even adjusting for current prices. From this came the formation of pockets of excessive liquidity and speculative bubbles which later turned into a series of solvency and confidence crises that have spread and followed one another over the years…

A liberalist approach, unsympathetic towards public intervention in the markets, chose to allow an important international financial institution to fall into bankruptcy, on the assumption that this would contain the crisis and its effects. Unfortunately, this spawned a widespread lack of confidence and a sudden change in attitudes. Various public interventions of enormous scope (more than 20% of gross national product) were urgently requested in order to stem the negative effects that could have overwhelmed the entire international financial system.

The consequences for the real economy, what with grave difficulties in some sectors – first of all, construction – and wide distribution of unfavourable forecasts, have generated a negative trend in production and international trade with very serious repercussions for employment as well as other effects that have probably not yet had their full impact. The costs are extremely onerous for millions in the developed countries, but also and above all for billions in the developing ones…

Global economic well-being, traditionally measured by national income and also by levels of capacities, grew during the second half of the twentieth century, to an extent and with a speed never experienced in the history of humankind…

First and foremost, an economic liberalism that spurns rules and controls. Economic liberalism is a theoretical system of thought, a form of “economic apriorism” that purports to derive laws for how markets function from theory, these being laws of capitalistic development, while exaggerating certain aspects of markets. An economic system of thought that sets down a priori the laws of market functioning and economic development, without measuring them against reality, runs the risk of becoming an instrument subordinated to the interests of the countries that effectively enjoy a position of economic and financial advantage.

Regulations and controls, imperfect though they may be, already often exist at the national and regional levels; whereas on the international level, it is hard to apply and consolidate such controls and rules.

The inequalities and distortions of capitalist development are often an expression not only of economic liberalism but also of utilitarian thinking: that is, theoretical and practical approaches according to which what is useful for the individual leads to the good of the community. This saying has a core of truth, but it cannot be ignored that individual utility – even where it is legitimate – does not always favour the common good. In many cases a spirit of solidarity is called for that transcends personal utility for the good of the community….

One devastating effect of these ideologies, especially in the last decades of the past century and the first years of the current one, has been the outbreak of the crisis in which the world is still immersed.

In his social encyclical, Benedict XVI precisely identified the roots of a crisis that is not only economic and financial but above all moral in nature. In fact, as the Pontiff notes, to function correctly the economy needs ethics; and not just of any kind but one that is people-centred. He goes on to denounce the role played by utilitarianism and individualism and the responsibilities of those who have adopted and promoted them as the parameters for the optimal behaviour of all economic and political agents who operate and interact in the social context. But Benedict XVI also identifies and denounces a new ideology, that of “technocracy”.

3. An Authority over Globalization

On the way to building a more fraternal and just human family and, even before that, a new humanism open to transcendence, Blessed John XXIII’s teaching seems especially timely. In the prophetic Encyclical Pacem in Terris of 1963, he observed that the world was heading towards ever greater unification. He then acknowledged the fact that a correspondence was lacking in the human community between the political organization “on a world level and the objective needs of the universal common good”. He also expressed the hope that one day “a true world political authority” would be created.

In view of the unification of the world engendered by the complex phenomenon of globalization, and of the importance of guaranteeing, in addition to other collective goods, the good of a free, stable world economic and financial system at the service of the real economy, today the teaching of Pacem in Terris appears to be even more vital and worthy of urgent implementation.

In the same spirit of Pacem in Terris, Benedict XVI himself expressed the need to create a world political authority. This seems obvious if we consider the fact that the agenda of questions to be dealt with globally is becoming ever longer. Think, for example, of peace and security; disarmament and arms control; promotion and protection of fundamental human rights; management of the economy and development policies; management of the migratory flows and food security, and protection of the environment. In all these areas, the growing interdependence between States and regions of the world becomes more and more obvious as well as the need for answers that are not just sectorial and isolated, but systematic and integrated, rich in solidarity and subsidiarity and geared to the universal common good.

As the Pope reminds us, if this road is not followed, “despite the great progress accomplished in various sectors, international law would risk being conditioned by the balance of power among the strongest nations.”

The purpose of the public authority, as John XXIII recalled in Pacem in Terris, is first and foremost to serve the common good. Therefore, it should be endowed with structures and adequate, effective mechanisms equal to its mission and the expectations placed in it. This is especially true in a globalized world which makes individuals and peoples increasingly interconnected and interdependent, but which also reveals the existence of monetary and financial markets of a predominantly speculative sort that are harmful for the real economy, especially of the weaker countries.

This is a complex and delicate process. A supranational Authority of this kind should have a realistic structure and be set up gradually. It should be favourable to the existence of efficient and effective monetary and financial systems; that is, free and stable markets overseen by a suitable legal framework, well-functioning in support of sustainable development and social progress of all, and inspired by the values of charity and truth. It is a matter of an Authority with a global reach that cannot be imposed by force, coercion or violence, but should be the outcome of a free and shared agreement and a reflection of the permanent and historic needs of the world common good. It ought to arise from a process of progressive maturation of consciences and freedoms as well as the awareness of growing responsibilities. Consequently, reciprocal trust, autonomy and participation cannot be overlooked as if they were superfluous elements. The consent should involve an ever greater number of countries that adhere with conviction, through a sincere dialogue that values the minority opinions rather than marginalizing them. So the world Authority should consistently involve all peoples in a collaboration in which they are called to contribute, bringing to it the heritage of their virtues and their civilizations.

The establishment of a world political Authority should be preceded by a preliminary phase of consultation from which a legitimated institution will emerge that is in a position to be an effective guide and, at the same time, can allow each country to express and pursue its own particular good. The exercise of this Authority at the service of the good of each and every one will necessarily be super partes (impartial): that is, above any partial vision or particular good, in view of achieving the common good. Its decisions should not be the result of the more developed countries’ excessive power over the weaker countries. Instead, they should be made in the interest of all, not only to the advantage of some groups, whether they are formed by private lobbies or national governments.

A supranational Institution, the expression of a “community of nations”, will not last long, however, if the countries’ diversities from the standpoint of cultures, material and immaterial resources and historic and geographic conditions, are not recognized and fully respected. The lack of a convinced consensus, nourished by an unceasing moral communion on the part of the world community, would also reduce the effectiveness of such an Authority.

What is valid on the national level is also valid on the global level. A person is not made to serve authority unconditionally. Rather, it is the task of authority to be at the service of the person, consistent with the pre-eminent value of human dignity. Likewise, governments should not serve the world Authority unconditionally. Instead, it is the world Authority that should put itself at the service of the various member countries, according to the principle of subsidiarity. Among the ways it should do this is by creating the socio-economic, political and legal conditions essential for the existence of markets that are efficient and efficacious because they are not over-protected by paternalistic national policies and not weakened by systematic deficits in public finances and of the gross national products – indeed, such policies and deficits actually hamper the markets themselves in operating in a world context as open and competitive institutions.

In the tradition of the Church’s Magisterium which Benedict XVI has vigorously embraced, the principle of subsidiarity should regulate relations between the State and local communities and between public and private institutions, not excluding the monetary and financial institutions. So, on a higher level, it ought to govern the relations between a possible future global public Authority and regional and national institutions. This principle guarantees both democratic legitimacy and the efficacy of the decisions of those called to make them. It allows respect for the freedom of people, individually and in communities, and at the same time, allows them to take responsibility for the objectives and duties that pertain to them.
According to the logic of subsidiarity, the higher Authority offers its subsidium, that is, its aid, only when individual, social or financial actors are intrinsically deficient in capacity, or cannot manage by themselves to do what is required of them. Thanks to the principle of solidarity, a lasting and fruitful relation is built up between global civil society and a world public Authority as States, intermediate bodies, various institutions – including economic and financial ones – and citizens make their decisions with a view to the global common good, which transcends national goods.
As we read in Caritas in Veritate, “The governance of globalization must be marked by subsidiarity, articulated into several layers and involving different levels that can work together.” Only in this way can the danger of a central Authority’s bureaucratic isolation be avoided, which would otherwise risk being delegitimized by an excessive distance from the realities on which it is based and easily fall prey to paternalistic, technocratic or hegemonic temptations.
However, a long road still needs to be travelled before arriving at the creation of a public Authority with universal jurisdiction. It would seem logical for the reform process to proceed with the United Nations as its reference because of the worldwide scope of its responsibilities, its ability to bring together the nations of the world, and the diversity of its tasks and those of its specialized Agencies. The fruit of such reforms ought to be a greater ability to adopt policies and choices that are binding because they are aimed at achieving the common good on the local, regional and world levels. Among the policies, those regarding global social justice seem most urgent: financial and monetary policies that will not damage the weakest countries; and policies aimed at achieving free and stable markets and a fair distribution of world wealth, which may also derive from unprecedented forms of global fiscal solidarity, which will be dealt with later.
On the way to creating a world political Authority, questions of governance (that is, a system of merely horizontal coordination without an authority super partes cannot be separated from those of a shared government (that is, a system which in addition to horizontal coordination establishes an authority super partes) which is functional and proportionate to the gradual development of a global political society. The establishment of a global political Authority cannot be achieved without an already functioning multilateralism, not only on a diplomatic level, but also and above all in relation to programs for sustainable development and peace. It is not possible to arrive at global Government without giving political expression to pre-existing forms of interdependence and cooperation.

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.

The aggrandizement of the European Union’s powers, particularly of its regulation, has had a steady growth within Europe, and is now looking to move outside European borders. Namely in one American industry, the airline industry, passengers may soon be paying higher air fares, not because of factors within the American financial market, but because of a carbon emissions tax that the EU will be imposing on American airlines which service flights to EU member countries.

For example, if an American carrier flies from New York to London, only a small percentage of the flight would be in the EU, but the U.S. carrier would be held responsible for the emissions from the entire flight. Just a few weeks ago, the European Court of Justice ruled that the EU is justified in levying fees on American flights than enter Europe. According to Patrick Michaels, a senior fellow in environmental studies at the Cato Institute, “Starting next year, the EU will tote up all the miles a plane flies to or from any European city, factor in the fuel usage and charge a ‘”carbon levy”‘ for all emissions that are more than 85 percent of 2002 levels. No airline is going to eat that cost, so you’ll get the bill, perhaps listed as an ‘”environmental surcharge.”‘

Even though some analysts are predicting a steep decline in airline profits next year, American carriers expect that the EU’s carbon plan would cost them more than $3 billion over eight years. Up until this point, Europeans have been content to go it alone with their climate taxes, thinking this will somehow serve to save the world. But now, Europe is seeking to force this mentality on other corners of the globe. These taxes are indeed costly, and even within Europe, their implementation is not gratefully accepted by all. In the UK, the Financial Times reports that there are concerns that the government is “in retreat from its green agenda.”

Noting that the EU’s Climate Action and Renewable Energy Package will cost the UK economy an exorbitant £ 20.2 billion by 2020, Open Europe, an independent European think tank, argues that the EU could find a much more cost-effective way to address climate initiatives. It argues that a much more effective and righteous approach would be for the EU to set overall carbon emission targets and then allow for individual member states to decide how best to reach them. At least in this approach, the EU would not be imposing direct government regulation on its members.

Within the issue of climate taxes within the EU, and their proposed extension into the United States, it is important to note the role that the government should and should not play. The main role of government should be to promote the common good, that is, to maintain the rule of law, and to preserve basic duties and rights. Free actions should not be overtaken by the government. The principle of subsidiarity is violated when governments over reach, usurping the ability of perfectly capable human beings, by way of the market, to operate effectively. The EU’s climate regulations on member states are indeed dubious, but it is particularly egregious when these regulations are allowed to extend to other countries.

Jim Wallis, the author, public theologian, speaker, and international commentator behind the Christian Left’s Circle of Protection, was in Grand Rapids last night, and I went to hear him speak. Wallis was presented as the latest in a long line of progressive luminaries to speak (or play their guitars) at the Fountain Street Chruch: Eleanor Roosevelt, Clarence Darrow, Margaret Sanger, Malcolm X, Gloria Steinem, U2, and the Ramones have all appeared on the same dais. He was introduced to speak about “where we are going together so that we can keep our eyes on the prize.”

That’s a pretty hip list, and Wallis considers himself a pretty hip guy, so I was genuinely surprised to enter the nave and find a sea of grey heads. Even the handful of Occupy Grand Rapids protesters were in their forties and fifties. Well I’m here for his lecture, I reminded myself, not to draw conclusions from his demographics before he even speaks.

Wallis started off with baseball — a promising place to start — telling the audience, “Baseball, following teams like Detroit, it builds character.” (Detroit missed out on the World Series a few days ago when it ran up against the indomitable Texas Rangers.) I was hoping to hear him expound on this theme in the rest of the talk, but he moved on to his core message: that with respect to Christ’s words in Matthew 25:40, the budget is a moral document.

Then he addressed the handful of forty- and fifty-something Occupy Grand Rapids protesters, and spoke about hope. “Hope,” he said “is not a feeling. Hope is a choice we make based on faith.” His lesson for the protesters was the same, he said, was the same one he had learnt from Archbishop Desmond Tutu in South Africa during apartheid: that “hope means believing in spite of the evidence, then watching the evidence change.”

Both were very true statements on the nature of hope, and the secular, materialist world desperately needs to hear them. But hope is a theological virtue, and Wallis applied it only to the material world.

I understand that he was speaking to a wide audience in a Unitarian church, but the faith he spoke of — the faith that undergirds his hope in this world and the next — is a supernatural faith. Without talk of hope in the City of God, the lecture lacked a fundamental coherence that no anecdote about Desmond Tutu, Elizabeth Warren, or President Obama could supply. It lacked even a discussion of the character that the Tigers’ season might have instilled in the audience. (It is possible that part went right over my head, since I’m a Rangers fan and the experts have picked us to win in 6 games.)

The lack of any transcendent meaning in the talk may have been why the youth of today weren’t there. Times are hard, employment is scare, it’s a bad time to be graduating college and looking for a job. But young people don’t have time to go hear someone tell them that if they hope for more from this life, they’ll get it. Wallis should stay away from that message anyway, since Joel Osteen delivers it better.

Someone looking for a gathering of energized youth in Grand Rapids should come in June for Acton University. That’s a gathering based on true hope, and the attendees (with an average age probably 40 years lower than in Fountain Street Church crowd) gather from scores of countries to discuss economic growth motivated and guided by a transcendent faith. Until Wallis’s message goes a little deeper, he continue to expect audiences that just want to be told they’ve lived a benignant life.

Amid the hustle and bustle of preparing for tonight’s Acton Institute annual dinner, I’m trying to carve out some time to make final preparations for my participation in the 9th Annual Christian Scholars’ Symposium hosted by the Christian Legal Society. Tomorrow afternoon I’ll be debating with Gideon Strauss of the Center for Public Justice on the question, “Justice, Poverty, Politics & the State: Is There a Christian Perspective?”

One of the pressing issues related to the size and scope of government is the complex nature of today’s tax system, particularly at the federal level. Regardless of what you think of Herman Cain’s “9-9-9″ tax plan, Arthur Laffer’s opening observations in a WSJ op-ed yesterday summarize well where we find ourselves:

It used to be that the sole purpose of the tax code was to raise the necessary funds to run government. But in today’s world the tax mandate has many more facets. These include income redistribution, encouraging favored industries, and discouraging unfavorable behavior.

To make matters worse there are millions and millions of taxpayers who are highly motivated to reduce their tax liabilities. And, as those taxpayers finagle and connive to find ways around the tax code, government responds by propagating new rules, new interpretations of the code, and new taxes in a never-ending chase. In the process, we create ever-more arcane tax codes that do a poor job of achieving any of their mandates.

Gideon was kind enough to ask me to contribute to CPJ’s Capital Commentary a few months back on the question of getting back to first principles with respect to the tax code. And in that piece, “Back Door Social Engineering,” I made the following case, taking my own point of departure with another quote from Laffer:

A return to a first-principles discussion of taxation in America requires a return to the fundamental purposes of taxation. Notwithstanding the current size of the federal tax code, the fundamental purpose of government taxation is not to encourage or discourage particular behaviors. The point of taxation is to raise funds to enable the government to fulfill its moral, political, and social responsibilities. It is true, as economist Arthur Laffer has made famous, that “when you tax something you get less of it, and when you reward something you get more of it.” But this reality, which takes into account how people respond to incentives, is secondary to the basic function of taxation.

It is immoral for a government to chronically run up deficits and lack the willpower to actually raise the funds it needs to do what it sets before itself. Michael Munger put it well: “Deficits are future taxes.” Quite apart from the question of what the government ought to be doing is the issue of paying for what it actually does, and our government has failed miserably on that latter point.

With Europe’s traditional moral framework – Christianity – under increasing attack, the Roman Catholic and Russian Orthodox churches are drawing closer in order to combat the forces of secularism and “Christophobia.” Rev. Johannes L. Jacobse looks at efforts to set aside long held theological disputes and forge a unity of action on social questions. Subscribe to the free weekly ANC and other Acton publications here.

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With the Rise of Militant Secularism, Rome and Moscow Make Common Cause

By Rev. Johannes L. Jacobse

The European religious press is abuzz over recent developments in Orthodox – Catholic relations that indicate both Churches are moving closer together. The diplomatic centerpiece of the activity would be a meeting of Pope Benedict and Patriarch Kyrill of the Russian Orthodox Church that was first proposed by Pope John Paul II but never realized. Some look to a meeting in 2013 which would mark the 1,700th anniversary of the signing of the Edict of Milan when Constantine lifted the persecution of Christians. It would be the first visit between the Pope of Rome and Patriarch of Moscow in history.

A few short years ago a visit between Pope and Patriarch seemed impossible because of lingering problems between the two Churches as they reasserted territorial claims and began the revival of the faith in post-Soviet Russia, Ukraine and elsewhere. The relationship grew tense at times and while far from resolved, a spirit of deepening cooperation has nevertheless emerged.  Both Benedict and Kyrill share the conviction that European culture must rediscover its Christian roots to turn back the secularism that threatens moral collapse.

Both men draw from a common moral history: Benedict witnessed the barbarism of Nazi Germany and Kyrill the decades long communist campaign to destroy all religious faith. It informs the central precept in their public ministry that all social policy be predicated on the recognition that every person has inherent dignity and rights bestowed by God, and that the philosophical materialism that grounds modern secularism will subsume the individual into either ideology or the state just as Nazism and Communism did. If Europe continues its secular drift, it is in danger of repeating the barbarism of the last century or of yielding to Islam.

The deepening relationship does not portend a union between Catholicism and Orthodoxy. Roman Catholics are more optimistic about unity because they are less aware of the historical animus that exists between Catholics and Orthodox. Nevertheless, while the increasing cooperation shows the gravity of the threat posed by secularism, it also indicates that the sensitive historical exigencies can be addressed in appropriate ways and times and will not derail the more pressing mission.

The cooperation has also caused the Churches to examine assumptions of their own that may prove beneficial in the long run. The meaning of papal supremacy tops the list.

On the Orthodox side the claims to a universal jurisdictional supremacy of the Patriarch of Rome have been rejected since (indeed, was a cause of) the Great Schism of 1054 (see here and here . That said, the Orthodox see the Pope of Rome as the rightful Patriarch of the Church of Rome and could afford him a primacy of honor in a joint council but not jurisdiction.

On the other side, the Orthodox do not have a Magisterium, a centralized Church structure that speaks for all the Orthodox in the world. This has led to some fractious internal wrangling throughout the centuries although doctrine and teaching has remained remarkably consistent.

It will come as no surprise for anyone to know that the Orthodox have difficulties with some of the claims made by the Catholic Church concerning the precise responsibilities and the nature of the authority associated with the Bishop of Rome. The Catholic Church has long recognized this as a basic difference between the Orthodox and Catholic worlds. The rise of militant secularism, however, and the cultural challenges this creates for Orthodox and Catholic Christians alike, have focused everyone’s minds on how they can cooperate to address these issues of ethics and culture.

Protestants have a stake in the outcome as well particularly as attitudes have softened towards Rome due in large part to Pope John Paul II’s exemplary leadership during the collapse of communism in the last century. Protestant ecclesiology has no real place for priest or pope which makes the nature of discussions between them and the Catholics or Orthodox entirely different. Nevertheless, as the soul denying ramifications of secularism become more evident, an increasing number look to the Catholic and Orthodox Churches for leadership.

The most visible ambassador for the Orthodox Church is Oxford-educated Metropolitan Hilarion Alfeyev of Volokomansk who runs the Department of External Church Relations of the Russian Orthodox Church. Observers report that a deep respect and even genuine fondness exists between Hilarion and Benedict which has contributed to the recent thaw.

Both of them note with alarm the increasing attacks on the Christian faith in Europe and on Christians themselves in other parts of the world, a development they term “Christophobia.” Hilarion brought these points forward several years back when he first challenged the European Union for omitting any mention of the Christian roots of European civilization in the EU Constitution. That earned him considerable worldwide notice and he has become increasingly outspoken towards any attempts to silence the Christian testimony or dim the historical memory of Christendom.

From the Orthodox side it is clear that the leadership that deals with the concrete issues that affect the decline of the Christian West is emerging from Moscow. One reason is the sheer size of the renewed Russian Orthodox Church. The deeper reason however, is that the Russians have direct experience with the suffering and death that ensues when the light of the Christian faith is vanquished from culture.

Decades before the fall of Communism was even a conceptual possibility for most people, Pope John Paul II prophesied that the regeneration of Europe would come from Russia. At the time many people thought it was the misguided ramblings of a misguided man. It is looking like he knew more than his critics. We are fortunate to have these two leaders, Benedict and Kyrill, to help guide us through the coming difficulties.

Fr. Johannes L. Jacobse is an Orthodox priest in the Antiochian Archdiocese of North and South America. He is president of the American Orthodox Institute and serves on the board of the Institute for Religion and Democracy. He writes frequently on social and cultural issues on his blog

Acton’s director of research Samuel Gregg’s reaction to last night’s GOP presidential debate is up at NRO’s The Corner. Like most people who saw the debate, he didn’t like the childish bickering, of which he says “the trivializing effects upon serious discussion are hard to deny.”

“There were, however, two useful moments,” he says:

One was several candidates’ efforts to put the contemporary disease of identity politics in its appropriate place (i.e., the grave).

The second was a number of candidates’ willingness to make the hard-to-hear but nevertheless accurate observation that the best way to address the slump in housing prices in places likeNevadais to allow the housing market to stabilize under its own volition. No matter how noble the intentions, government mortgage-relief programs have proved economically ineffective, and, in many instances they are deeply unjust. Who knows? If GOP presidential candidates are willing to make this point, maybe some of them will eventually dare to talk seriously about entitlement reform.

Hope springs eternal!

New polling data on the Occupy Wall Street protesters (HT: Reason.com blog) shows that the “movement” isn’t exactly representative of America’s downtrodden:

Rather, it comprises an unrepresentative segment of the electorate that believes in radical redistribution of wealth, civil disobedience and, in some instances, violence. Half (52%) have participated in a political movement before, virtually all (98%) say they would support civil disobedience to achieve their goals, and nearly one-third (31%) would support violence to advance their agenda. The vast majority of demonstrators are actually employed, and the proportion of protesters unemployed (15%) is within single digits of the national unemployment rate (9.1%).

In an interview with reporter Brian Fraga of National Catholic Register, Acton’s Ray Nothstine pointed to what may be the fatal flaw for the protests: the lack of a coherent message.

“I’m hesitant to say it will bring about any change,” Nothstine said. “You have too many splinter groups. I can understand people are frustrated with the political status quo, and they’re mad about crony capitalism and government bailouts.

“But some of the demands that have been coming out of this movement, like a $20 minimum wage and across the board debt forgiveness, are very Utopian, and they’re really sort of economic disasters, as I would put it. They would create inflationary policies, create more deficit spending, and create more problems that helped to create the mess that we’re in.”

Read more of Nothstine’s comments in “Occupy Wall Street Gains Momentum” in the National Catholic Register. Nothstine also wrote a commentary on the Occupy Wall Street movement titled “Class Warriors for Big Government.”