Capitalism

A False Anthropological Dichotomy

Not long ago I examined an article by Patrick J. Deneen concerning the intellectual divide between American Catholics. If you will recall, Deenen divides American Catholics into a pro-America/liberal camp and an anti-America/illiberal or “radical” camp. At the heart of this divide, so they say (I will challenge this below) is an alleged conflict of “anthropologies”; it appears to be common currency on the illiberal side of the debate. Liberals – and to be clear, we’re talking about classical liberals for the most part – supposedly hold to an anthropological view that is self-centered and individualistic. Worse yet, in this view, human beings are allegedly driven primarily by fear and greed (when they aren’t gratifying their basest urges). All of this contemporary classical liberals are alleged to hold as demonstrated irrevocably by the laws of microeconomics and the sophisticated and often indecipherable mathematical models of neoclassical economists. Dig a bit deeper and the whole rotten anti-Christian edifice can be traced back to John Locke, whose “possessive individualism” birthed the demon-spawns of Adam Smith and Thomas Jefferson and gave us the American commercial republic.

The reality, of course, is quite different. The fundamental value of classical liberalism is not “individualism”, but liberty. But the nature of liberty is such that only individuals can exercise it, for the human race is not a hive mind; each human being possesses his or her own intellect and will and is, barring some defect, responsible for the decisions they make. Metaphysical libertarianism, which is the position that human beings have free will, is a foundational assumption of Christianity (and indeed of any ethical system that presupposes human beings can make moral choices). It is also the foundational moral and methodological assumption of classical liberal sociology, political theory and economics. People are free by nature, and cannot be studied as if they were not free. And because we are free by nature, we are gravely harmed if we are unnecessarily restricted in our liberty by other men, including and especially governments.

→']);" class="more-link">Continue reading

Liberalism, Capitalism & Pluralism: The Catholic Wars Continue

On February 6, The American Conservative published a piece by Patrick J. Deneen titled “A Catholic Showdown Worth Watching.” In it, Deneen outlines the positions of two hostile political camps within American Catholicism: the “liberal” camp and what he calls a more “radical”/illiberal camp. The liberal camp is characterized by its support for free-market capitalism, liberal democracy, a vigorous interventionist foreign policy, and the basic compatibility of the American republic with Catholicism. The radical illiberal camp is virtually the opposite in every respect; it is skeptical of and in my experience quite hostile towards free-market capitalism, contemptuous of liberal democracy, anti-interventionist and views the entire American project as a failed enterprise incompatible with Catholicism.

In my view there ought to be recognition of a third camp: Catholic libertarianism. Of course this immediately lends itself to semantic confusion. After all, some of what Deneen’s “liberals” hold would align with what libertarians hold, and both might lay claim to the descriptor of “classical liberalism.” The important point of dispute between this peculiar lot of liberals and libertarians proper, at least given the specific points raised by Deneen, would be the matter of foreign policy. Catholic libertarians such as Tom Woods and Judge Andrew Napolitano are resolutely opposed not only to American interventionism, but also to the growing domestic security apparatus that poses a threat to individual liberties. Deneen’s liberals, or at least the contemporary names such as Wiegel, Neuhaus, and Novak, may better be described as neo-conservatives. Insofar as the Catholic neo-conservatives share economic views with the libertarians, I will include them as “classical liberals” in the analysis to follow. It may also be argued that Catholic libertarians aligned with the Austrian school of economics and political theory are also quite critical of liberal democracy. Hans-Hermann Hoppe, an Austrian intellectual, has led the way in the libertarian critique of democracy and there is no reason to assume that a classical liberal is necessarily a democratic liberal.

Read the rest here. 

Dorothy Day: Anarcho-Capitalist, Perhaps

A Facebook friend brought my attention to the tug of war taking place over the legacy of Dorothy Day in recent months between pro and anti-capitalists. The Catholic Worker has criticized both the NY Times and Fr. Robert Sirico of the Acton Institute on Day-related matters. Liberals can’t claim her, so it is said, because she was anti-abortion and loyal to Church teaching, obviously never having gone the way of radical disobedient feminism. But conservatives and libertarians can’t claim her either because she rejected capitalism.

Or did she? As best I can tell, she neither practiced it or preached it as a way of life. And yet she did say the following:

We believe that social security legislation, now balled as a great victory for the poor and for the worker, is a great defeat for Christianity. It is an acceptance of the Idea of force and compulsion…

Of course, Pope Pius XI said that, when such a crisis came about, in unemployment, fire, flood, earthquake, etc., the state had to enter in and help.

But we in our generation have more and more come to consider the state as bountiful Uncle Sam.

If you don’t believe in “force and compulsion”, you believe – by logical necessity – that capitalism is at least permissible. At least capitalism as Fr. Sirico, Ron Paul and Murray Rothbard would define it, which is nothing more than private property + free exchange of goods and services. No capitalist along these lines, moreover, could or likely would raise any objection to voluntary collectivist projects such as workers cooperatives or agricultural communes. Voluntary Distributism, which Day supported in her writings, is capitalism.

→']);" class="more-link">Continue reading

On Distributism and the Futility of Third Ways

The search for an economic and political “third way” has haunted intellectuals for over a hundred years in the Western nations. Many forget that fascism was at one time considered a viable “third way” between liberal capitalism and communism, preserving for the most part private ownership of the means of production for profit but subjecting it to near total control and regulation by the state. Many other models would follow, from the local and anarchistic to the national and statist, appearing under many different names.

I too was caught up in the desperate search for a “third way”, as are many Catholics who eventually find their way to Distributism. But it became quite obvious to me that what people who actually defined themselves as libertarians and capitalists were promoting and defending really wasn’t what I had always thought it was, nor was it anything I could possibly find objectionable.

→']);" class="more-link">Continue reading

What Is This Wicked Capitalism?

One of the difficulties that comes in discussing the many “isms” that populate the landscape of political discussion is that very often people use the same words without mean the same things, or indeed without having any clearly defined idea of what they do mean. While this is the case with nearly any ism (socialism, liberalism, libertarianism, conservatism, etc.) I’d like to address in this case the way in which opponents (particularly Christian opponents) of “capitalism” tend to address the object of their condemnation. This is in some ways a beautifully typical example of a Christian opponent of capitalism attempting to describe what it is he is condemning:

We must remember the capitalistic system we live in also is a materialistic ideology which runs contrary to the Christian faith, and it is a system which is used to create rival, and equally erroneous, forms of liberation theology. It is as atheistic as Marxism. It is founded upon a sin, greed. It promises utopia, telling us that if we allow capitalist systems to exist without regulation, everyone, including the poor, will end up being saved. The whole “if we allow the rich to be rich, they will give jobs to the poor” is just as much a failed ideology as Marxist collectivism.

Admittedly, this is a somewhat muddled set of statements, but I think we can draw out of it the following statements which the author, and many other self described critics of capitalism (in particular from a religious perspective) believe to be true:
-Capitalism is a system or ideology much as Communism is.
-Capitalism is based on greed or takes greed to be a virtue.
-Capitalism is a materialistic or atheistic philosophy/system.
-Capitalism could be summed up as the idea that “if we allow the rich to be rich, they will give jobs to the poor”
-Capitalism promises utopia if “capitalist systems” are allowed to exist without regulation.

While one approach to this is simply to throw out the term “capitalism” entirely, what I’d like to do is accept that claim that we live in a “capitalist” system and that this system is roughly what libertarians/conservatives advocate, and proceed to address the claims made about “capitalism” in that context.
→']);" class="more-link">Continue reading

Science and Technology in World History

Technological history is a unique point of view that always caught my eye.  David Deming of the American Thinker gives us a brief synopsis of his latest contribution in this genre.  Keep in mind how integral Christianity was to the recovery of Europe after the barbarian invasions and the safekeeping of knowledge by the monastic system that allowed Europe to recover and blossom into what we now call Western Civilization:

Both Greece and Rome made significant contributions to Western Civilization.  Greek knowledge was ascendant in philosophy, physics, chemistry, medicine, and mathematics for nearly two thousand years.  The Romans did not have the Greek temperament for philosophy and science, but they had a genius for law and civil administration.  The Romans were also great engineers and builders.  They invented concrete, perfected the arch, and constructed roads and bridges that remain in use today.  But neither the Greeks nor the Romans had much appreciation for technology.  As documented in my book, Science and Technology in World History, Vol. 2, the technological society that transformed the world was conceived by Europeans during the Middle Ages.

Greeks and Romans were notorious in their disdain for technology.  Aristotle noted that to be engaged in the mechanical arts was “illiberal and irksome.”  Seneca infamously characterized invention as something fit only for “the meanest slaves.”  The Roman Emperor Vespasian rejected technological innovation for fear it would lead to unemployment.

Greek and Roman economies were built on slavery.  Strabo described the slave market at Delos as capable of handling the sale of 10,000 slaves a day.  With an abundant supply of manual labor, the Romans had little incentive to develop artificial or mechanical power sources. Technical occupations such as blacksmithing came to be associated with the lower classes.

→']);" class="more-link">Continue reading

Is the Means of Production an Obsolete Idea?

The “means of production” (which may be defined, roughly, as consisting of capital goods minus human and financial capital), is a central concept in Marxism, as well as in other ideologies such as Distributism. The problems of capitalism, according to both Marxists and Distributists, arise from the fact that ownership of the means of production is concentrated in the hands of the few. Marxists propose to remedy these problems by having the means of production be collectively owned. Distributists want to retain private ownership, but to break the means of production up (where practicable) into smaller parts so that everyone will have a piece (if you wanted to describe the difference between the Marxist and Distributist solutions here, it would be that Distributists want everyone to own part of the means of production, whereas Marxists want everyone to be part owner of all of it).

Where a society’s economy is based primarily on agriculture or manufacture, thinking in terms of the means of production makes some sense. In an agricultural economy wealth is based primarily on ownership of land, and in a manufacturing economy ownership of things like factories and machinery plays an analogous role. In a modern service-based economy, by contrast, wealth is based largely on human capital (the possession of knowledge and skills). As Pope John Paul II notes in Centesimus Annus, “[i]n our time, in particular, there exists another form of ownership which is becoming no less important than land: the possession of know-how, technology and skill. The wealth of the industrialized nations is based much more on this kind of ownership than on natural resources.”

→']);" class="more-link">Continue reading

The Real Antidote to Big Government

In the third installment of my proposal for a libertarian-distributist alliance, I explore why libertarians ought to be open to distributist ideas. An excerpt:

Chief among the reasons to support a greater distribution of property is the simple truth that the maximum sphere of individual liberty is not to be found in an individualist utopia, but a strong localism that provides individuals in a moral and efficient way that which they would otherwise turn to a powerful state or crime syndicate to provide.

Aristotle & Distributism: Part II

(Part I may be read here. Some of the discussion may be followed on my blog. Note: the presentation of this essay on this blog may differ somewhat from the outline I set forth in the introduction in Part I. The critique of communism/welfare-statism will be published tomorrow.)

In an academic culture that is often characterized by historicist and relativist viewpoints, the notion that Aristotle may have had anything relevant to say about modern economic systems seems a little strange to us. While it must be admitted that we cannot expect the ancient versions of capitalism and communism to be identical to their modern counterparts, we can nonetheless differentiate the historically-shaped form from what is arguably the timeless content. Moreover, by way of critique of the two dominant economic paradigms (for in the final instance, welfare-statism/Social Democracy incorporates the worst features of both), we can arrive at a more clear vision of the Distributist alternative.

Though it ought to become obvious through the critique of communism, it bears stating up front that the Aristotelian critique of capitalism is not an attack on private property. Difficult as it may be for some readers, the notion that the essence of capitalism is the possession and use of private property is a fallacy bequeathed to us not only by certain capitalist ideologists, but by many (though not all) communists and assorted “anti-capitalists” as well.

A definition of capitalism that accords well with Aristotle’s critique is an economy in which production for exchange is predominant, as opposed to production for immediate use/consumption. Though it is modern technology since the Industrial Revolution that actually allows such an economy to come into being, the pre-industrial tendencies towards this type of economy have been in existence since the dawn of civilization, and reached a pinnacle in the great civilizations of antiquity, including the ancient Greece in which Aristotle lived and wrote.

']);" class="more-link">Continue reading

Educational Egalitarianism

Darwin Catholic’s post about the educational system and the possible benefits of promoting a myth of equality got me thinking about the essential differences between liberals and at least the kind of conservative I think I am becoming.

That is, a kind of conservative that is opposed to excessively concentrated wealth in private hands, for the following reasons: 1) it can easily lead to concentrated political power that is less accountable, 2) in the midst of poverty – even if one wishes to argue that it is not a cause of poverty – it inspires class envy and hatred, 3) it has the potential to be terribly and sinfully wasted on frivolities instead of charity and/or social investment.

→']);" class="more-link">Continue reading

Follow TAC by Clicking on the Buttons Below
Bookmark and Share
Subscribe by eMail

Enter your email:

Recent Comments
Archives
Our Visitors. . .
Our Subscribers. . .