Catholicism and “Neoliberalism”: Strawmen Are Often Contrary to Church Teaching

Thursday, January 12, AD 2012

David Cloutier at the Catholic Moral Theology blog links approvingly to a post at dotCommonweal addressing Romney’s political views which asks whether “neoliberalism” (the which is here used to mean something along the lines of free market capitalism) and Catholicism can ever be compatible. He says:

Superb exchange going on over at dotCommonweal over a post about how certain political conservatives, like Rick Santorum or Michael Gerson, try to reconcile their Catholicism with the neoliberal paradigm. For once, even the comment thread is worth reading!

I think this is an important – if not THE important – debate about Catholicism and politics in the current election. Often, the debate over particular policies dominates, but in fact, what we should be looking at are the basic principles of the economic order. If a candidate fundamentally contradicts the basic principles, Catholics should have reservations about supporting him. In the post referred to above, “neoliberalism” is cast in terms of a pure free-market conception, in which governments take a minimal role in economic activity, providing for enforcement of contracts, a stable currency, etc. – protection against “force and fraud.” Others claim that Gerson forthrightly support subsidiary actors – such as families, community organizations, and churches – and so is not in fact individualist.

The (frequently made) mistake here is one that goes back to Edmund Burke, that “father” of conservatism. Burke seeks to deal with nascent industrial capitalism by (Warning: blogging oversimplification ahead…) distinguishing between a sphere of “culture” (or “civil society”) that can be fostered, and refuses to attribute social problems to the mechanisms of the market itself. He defends the market as good, over against the landed establishment (the “nobles”) of the pre-industrial order, which is who he is opposing. But for him, the market is not all there is. (One sometimes sees a variant of this in defending Adam Smith by noting one must read both The Wealth of Nations and The Theory of Moral Sentiments.)

Continue reading...

6 Responses to Catholicism and “Neoliberalism”: Strawmen Are Often Contrary to Church Teaching

  • “First, Burke (like Adam Smith, in this way) is writing prior to the advent of large, joint-stock corporations.”

    That is historical rubbish. The East India Company for example, a behemoth joint stock company of Burke’s day, was chartered in 1599. Smith wrote about the East India Company: “While the East India Company had been a trading endeavor, it had provided great service to the state and its people, justifying the monopoly privileges and helping its stockholders’ dividends to growth. After territorial expansion occurred, this role and its privileges required revision, for Company interests were at cross purposes with those of the state.”

    When someone makes such an elementary historical mistake like this, it is difficult to take them very seriously

  • Yeah, I had to pick what to go after, but I think that the idea that Burke and Smith had an overly rosy idea of what capitalism because it hadn’t got big enough yet strikes me as springing form a simplistic kind of anachronism in which one assumes that everything was simpler in the “old days”. Joint stock companies were, obviously, both huge and very, very powerful in the 1700s. (Heck, the East India Company had its own army.) And Smith and Burke weren’t naive about the temptations of capitalism. It was, after all, Smith who said, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public.”

  • Pingback: Catholicism and “Neoliberalism”: Strawmen Are Often Contrary to … |
  • Hi – Thanks for the attention to my post. It is just a blog post. I am familiar with the extensive ventures organized at joint-stock corporations prior to the 19th century. In nearly all cases, these were (if I am not mistaken) more or less official government-chartered monopolies that made possible extensive investments (i.e. in trade). By “joint-stock corporation” I am speaking about the common usage today, for an eneterprise that is not a kind of state-sponsored monopoly. Mr McClarey comment from Smith indicates the clear purpose of such corporations (i.e. to serve BOTH the state and the shareholders), and that such corporations should have their privileges revised if they no longer serve the state. This seems a far cry from the way joint-stock corporations have functioned for the last century-plus, to which I was referring in my post.

  • Yes David, you are mistaken. Corporations had to be granted existence by Parliament, but they operated in precisely the same way as large publicly traded corporations do today. They often got into bed with government, as Adam Smith noted and dreaded, just as such corportations do today.

Quote of the Day: Hayek on Individualism

Tuesday, January 12, AD 2010

From “Individualism: True and False” (1946)

…[T]he state, the embodiment of deliberately organized and consciously directly power, ought to be only a small part of the much richer organism which we call “society,” and that the former ought to provide merely a framework within which free (and therefore not “consciously directed”) collaboration of men has the maximum scope.

This entails certain corollaries on which true individualism once more stands in sharp opposition to the false individualism of the rationalistic type. The first is that the deliberately organized state on the one side, and the individual on the other, far from being regarded as the only realities, while all the intermediate formations and associations are to be deliberately suppressed, as was the aim of the French Revolution, the noncompulsory conventions of social intercourse are considered as essential factors in preserving the orderly working of human society. The second is that the individual, in participating in the social processes, must be ready and willing to adjust himself to changes and to submit to conventions which are not the result of intelligent design, whose justification in the particular instance may not be recognizable, and which to him often appear unintelligible and irrational.

Continue reading...

Pope Benedict Warns Against Marxist Liberation Theology

Monday, December 7, AD 2009

17 Responses to Pope Benedict Warns Against Marxist Liberation Theology

  • Leftist Catholics rightly identify Christ as the savior of human beings, body and soul alike. What they fail to understand is the consequences of Original Sin for the body, and the limitations on human life imposed by sin and finitude. They wrongly think that if everyone on Earth was a Saint, there would be no more suffering. Leftist Catholics think that there are no limits to human progress, which is to say they are very modern.

  • Some Leftist Catholics remind me of the Zealots who thought to bring about the Kingdom of God through the sword. A communist dictatorship though is a funny sort of Kingdom of God.

  • Such words for the “Catholic Left.” Then what is wrong with the “Catholic Right,” I wonder? Or does the “Right” comprise of the Catholics who “get it?”

  • Selective interpretation of the social teaching of the Church… which ultimately stems from liberalism as Leo XIII and Pius XI understood it.

  • In regard to the Catholic Right Eric, I can’t think of a comparable attempt by Catholic conservatives to trojan horse a body of doctrine completely inimical to Catholicism into the Church as has been the ongoing effort of some Catholics on the Left to baptize Marx. The nearest parallel I can think of predates the French Revolution with the unfortunate throne and altar doctrine of many clerics, although at least they could make the argument that the states they sought to wed the Church with were not anti-Catholic. In the case of Marxism, its overwhelming anti-Christian praxis should have innoculated Catholics from it without the necessity of papal intervention, but such was not the case.

  • Tito,

    No. 🙂

  • I think there’s a pretty strong throne and altar doctrine on the Catholic Right today, at least in the U.S., where the throne takes the form of military power.

    A case could also be made for a “‘Shut up, your Excellencies,’ he explained” doctrine, which denigrates the role of the bishops, individually and especially collectively, in developing social policies.

  • I read the Pope’s document carefully.

    Now I’m perplexed:

    1. Exactly what is objectionable in what he said?

    2. Has the Pope not condemned, in this very document, the arms buildup and the disgrace of military solutions? He only appears as a right winger if you’re looking from the vantage point of an extreme left wing ideologue.

    Maybe a few here ought to put down their Che Guevara coffee mugs read it again. The Holy Father is spot on.

    It is simply a fact of history that collectivist movements have enslaved the very people they promised to liberate.

    I am frankly a little more than concerned at the prideful inability of many leftists to acknowledge this fact of history, nay, the desire to whitewash this disgrace from history.

  • Who here is attacking the Pope?

  • MI,

    They participated and got deeply involved with Marxist governments. Dissidents such as Jesuit “Father” Ernesto Cardenal of Nicaragua who was involved with the Communist government then.

  • I’m always amused when people, especially conservatives who decry the tactic in others, appoint themselves the experts of All Things Liberal.

    I don’t think that Acts 4:32 is a bad things for which to strive. Certainly better than cuddling up to Pinochet or Cheney.

  • I’d rather cuddle up to Cheney than Karl Marx or Joseph Stalin any day of the week.

  • The early Christians quickly abandoned common ownership as completely unworkable Todd. Outside of monasteries and convents it has only been revived by Christians for short periods, usually with dire results. The Pilgrims tried it, and almost starved to death. William Bradford, the governor of the colony relates what happened next:

    “All this while no supply was heard of, neither knew they when they might expect any. So they began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery. At length, after much debate of things, the Governor (with the advice of the chiefest amongst them) gave way that they should set corn every man for his own particular, and in that regard trust to themselves; in all other things to go on in the general way as before. And so assigned to every family a parcel of land, according to the proportion of their number, for that end, only for present use (but made no division for inheritance) and ranged all boys and youth under some family. This had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability; whom to have compelled would have been thought great tyranny and oppression.

    The experience that was had in this common course and condition, tried sundry years and that amongst godly and sober men, may well evince the vanity of that conceit of Plato’s and other ancients applauded by some of later times; that the taking away of property and bringing in community into a commonwealth would make them happy and flourishing; as if they were wiser than God. For this community (so far as it was) was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. For the young men, that were most able and fit for labour and service, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. The strong, or man of parts, had no more in division of victuals and clothes than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labours and victuals, clothes, etc., with the meaner and younger sort, thought it some indignity and disrespect unto them. And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it. Upon the point all being to have alike, and all to do alike, they thought themselves in the like condition, and one as good as another; and so, if it did not cut off those relations that God hath set amongst men, yet it did at least much diminish and take off the mutual respects that should be preserved amongst them. And would have been worse if they had been men of another condition. Let none object this is men’s corruption, and nothing to the course itself. I answer, seeing all men have this corruption in them, God in His wisdom saw another course fitter for them.”

  • Michael I.,

    Donald will delete it at his leisure.

    For the time being I’m just amusing myself by reading your comments, thanks!

Difference and Equality

Thursday, December 3, AD 2009

Individualism is one of those terms which a great many people use in a great many different ways, so it has been with interest that I’ve been reading Individualism and Economic Order by F. A. Hayek. The book is a collection of essays dealing the individualism, its definition and its place in the economic order.

From the first essay, “Individualism: True and False” comes an interesting thought:

Here I may perhaps mention that only because men are in fact unequal can we treat them equally. If all men were completely equal in their gifts and inclinations, we should have to treat them differently in order to achieve any sort of social organization. Fortunately, they are not equal; and it is only owing to this that the differentiation of functions needs not be determined by the arbitrary decision of some organizing will but that, after creating formal equality of the rules applying in the same manner to all, we can leave each individual to find his own level.

There is all the difference in the world between treating people equally and attempting to make them equal. While the first is the condition of a free society, the second means, as De Tocqueville described it, “a new form of servitude.”
(Individualism and the Economic Order p. 14-15)

This strikes me as touching on the sense in which classical liberals in the tradition of Burke and Smith can still be considered “conservative” in the old sense of the term. Although Burke is commonly accepted by those who argue that classical liberalism is not “truly conservative” as being conservative in his outlook because of his reaction to the French Revolution, he was (like Smith) Whig, though they were Old Whigs, not True Whigs or Country Whigs. Prior to the French Revolution, Burke had been generally supportive of the cause of the colonists in the American Revolution.

Taking Hayek’s point, classical liberals in the tradition of Burke and Smith do not reject the necessary hierarchy of society. Nor do they embrace sudden, transformative social change. As such, they can certainly be seen as conservative. However, they do seek sufficient freedom within society to allow people to “find their own level”, believing that there is a natural hierarchy of ability which will thus result in an ordered society, and a more desirable one than one in which hierarchy comes strictly from birth and rank.

In this sense, the freedom of a classical liberal society creates social order, and a more stable one than the sort that an ancien regime conservatism maintains. Indeed, arguably, at this point in history, it is only this Whig-ish conservatism which is commonly found within society. Ancien regime conservatism has virtually died out.

Entirely different are notions of politics or the human person in which it is held which all people are truly and fully equal — in ability and inclination as well as in human dignity. Such systems would indeed seem to lead quickly to a most undesirable oppression.

Continue reading...

18 Responses to Difference and Equality

  • The trouble with “individualism” in rightist (traditionalist or right-liberal) argumentation today is the lack of realization of what Robert Nisbet pointed out in the 50s and Patrick Deenan has been hammering home in recent years: it is an invitation to statism, and an opening for a grave lonliness.
    ( )

    Individualism and personal freedom, which should always be second to virtue as a value, tends to deny a very basic truth that all conservatives must embrace: the absolute and inherent incompatibility between liberty and equality. Left-liberals value the latter, and right-liberals the former. Each is a false human anthropology when out of context. We are products of a particular time and social environment, and that cannot be escaped – which makes family the most foundational unit of the good society.

    The purpose of freedom and liberty is to protect family, material and immaterial.

  • Jonathan,

    Actually the Hayek essay (“Individualism: True and False”) this quotes would be worth your time (it’s fairly short) in that one of the things it seeks to do is arrive at a proper understanding of what individualism means in relation to the classical liberal tradition.

    What, then, are the essential characteristics of true individualism? The first thing that should be said is that it is primarily a theory of society, an attempt to understand the forces which determine the social life of man, and only in the second instance a set of political maxims derived fromt his view of society. This fact should by itself be sufficient to refute the silliest of the common misunderstandings: the belief that individualism postulates (or bases its arguments on the assumption of) the existence of isolated or self-contained individuals, instead of starting from men whose nature and character is determined by their existence in society. If that were true, it would indeed have nothing to contribute to our understanding of society. But it’s basic contention is quite a different one; it is that there is no other way toward and understanding of social phenomena but through our understanding of individual actions directed toward other people and guided by their expected behavior. This argument is directed primarily against the properly collectivist theories of society which pretend to be able directly to comprehend social wholes like society, etc., as entities sui generis which exist independently of the individuals which compose them. The next step in the individualistic analysis of society, however, is directed against the reationalistic pseudo-individualism which also leads to practical collectivism.

    I’d be curious at your reaction to it.

  • Is it perhaps too much of an oversimplification to describe the different views of individualism as a means/end dichotomy. Randian and leftists see individualism as an end in and of itself, whereas conservatives/classical liberals merely see it as a means by which to achieve a more just social order.

  • Darwin,

    As I recently pointed out on a different thread, the classical liberalism of the American founders was also balanced by their classical republicanism, which includes an emphasis on virtue and does not shy away from regulating wealth to preserve society.

    I would argue that classical liberalism never created a stable society – other political forces such as aforesaid classical republicanism, or later on labor movements and the Church tempered and balanced it.

    Finally, I would argue that all most all of the classical liberals are gone – that even the vast majority of libertarians are not truly classical liberals. Why? Because I believe anyone defending the right of total, untaxed inheritance today cannot possibly believe in a “natural aristocracy”, a “meritocracy”, or anything other than the perpetuation of oligarchy and plutocracy.

    Except the one libertarian I met as a socialist who said we could strike a bargain – we could tax the hell out of inheritance as long as he could become rich in his lifetime without paying a dime on it. I always thought it was a good idea.

  • Darwin,

    Hayek and Röpke, in their analysis of the “humane economy,” both identify the elevation of individualism as something like “reationalistic pseudo-individualism which also leads to practical collectivism.”

    One problem though, especially for the traditionalist conservative critic (my own politics), is that Hayek’s case for the “free market” (i.e. The Constitution of Liberty) draws very heavily from Hume, A. Ferguson, and Adam Smith. That is not necessarily a red flag (Mill and Bentham would be for sure) but it remains the British, skeptic, empirical tradition. That tradition has both much to admire and quite a lot to deride from the traditionalist perspective.

    Their case rests on the necessary ignorance of human judgement, which is correct (in a civilized society, there is no centrality capable of managing a complex social outgrowth, so a minimal state is best) but also incomplete.

    Hayek, IMO, is relevant at the theoretical level yet less so at the practical level, and this is due to some uncomfortable topics like demographics and population composition. Here my critique would turn Buchananite: specific government policies matter less than the quantities and qualities of populations. Racism and sexism become cheap and lazy charges at that point, yet this is the obvious problem with all shades of individualism at the intersection of public policy – Finland, for instance, is “Finlandly” because of the Finns themselves, not because of philosophy and governmental mechanics.

  • there is no other way toward and understanding of social phenomena but through our understanding of individual actions directed toward other people and guided by their expected behavior

    This is a very good refutation of Randian libertarianism and its incorrect anthropology. Individualism should not mean that subjective action is sacrosanct; it is, instead, a better way to analyze the social outcomes that are obviously the product of so many individual decisions. The temptation is to play identity politics and assume that these social constructs have some nature or form that can be counted on to behave in certain ways… Just to name one example, it would be foolish to assume that all Catholics will act similarly, ceteris paribus.

  • The trouble with “individualism” in rightist (traditionalist or right-liberal) argumentation today is the lack of realization of what Robert Nisbet pointed out in the 50s and Patrick Deenan has been hammering home in recent years: it is an invitation to statism

    Okay, let’s test this. Which part of the globe is more individualistic: the United States, or Europe? Which part is more statist?

  • Blackadder: on a blog discussing the anti-gay marriage vote in NY, a European leftist jumped in and said basically, see, this is why in Europe a supra-national body decides these issues, because we don’t want a situation where people vote to deny other people their rights. He obviously thought that was highly superior to the way we rednecks do things.

    Ironically enough, it is the Left which now embodies the mentality of the ancien regime. In Europe, the dukes and earls have been replaced by the EU elites, because the judgment of the peasants is not to be trusted. And many liberals in this country also put their faith in the elites and the courts and would like us to become more like the Europeans in that respect. The funny thing to me is that it’s basically feudalism presented as cutting edge progressivism.

  • “The funny thing to me is that it’s basically feudalism presented as cutting edge progressivism.”

    On target analysis Donna. Leftist comments about the tea bag party protests reminded me of a British aristocrat looking down his nose and cursing at the American rabble of 1776. The Left has a childlike faith in government by experts with the “proper opinions” amd judges with the “proper opinions”. Voters simply cannot be trusted to elect representatives with the “proper opinions”. That is also why Leftists love treaties to bind what elected representatives can do.

  • European leftist jumped in and said basically, see, this is why in Europe a supra-national body decides these issues, because we don’t want a situation where people vote to deny other people their rights. He obviously thought that was highly superior to the way we rednecks do things.

    Maybe it’s all Providence. Clearly someone like this isn’t a clear enough thinker to understand the virtues inherent in a properly constructed constitutionally limited republic. Its a pity when someone forfeits his ability to shape society for the better and contribute to his own governance, but maybe it’s best that those who would, should.

  • on a blog discussing the anti-gay marriage vote in NY, a European leftist jumped in and said basically, see, this is why in Europe a supra-national body decides these issues

    That’s an interesting argument, or at least it would be if it was remotely true. There’s no supra-national body in Europe telling nations that they have to recognize gay marriage. The issue is decided country by country, and in fact most European countries do not recognize gay marriage.

  • Because I believe anyone defending the right of total, untaxed inheritance today cannot possibly believe in a “natural aristocracy”, a “meritocracy”, or anything other than the perpetuation of oligarchy and plutocracy.

    Clayton Cramer has visited this issue on occasion and (I believe) has some citations to literature. His point: that with some exceptions (the duPonts, for example), families tend to lose their mojo after a few generations and their wealth is dissipated (by alcoholism, failure to earn well, and bad investments, among other things). A sad contemporary example would be Robert Kennedy’s in laws.

    You also would not want to work it so that an able businessman could not provide for his wife or his disabled children.

  • Okay, let’s test this. Which part of the globe is more individualistic: the United States, or Europe? Which part is more statist?

    Europe is more statist. This doesn’t negate though, the point of the first post, and I think ties into the second. A welfare state/statist/collectivist/ect. governmnetal organization “works” much better in a homogeneous society, for reasons explained by Putnam among many others.

    And so one big reason “individualism” as a public ethos is an open pathway to statism is that the “autonomous rights-based individuals” many open border/libertarian types tend to be happy to receive will over time make the country significantly more statist: one glaring example is California in the last three decades.

  • A welfare state/statist/collectivist/ect. governmnetal organization “works” much better in a homogeneous society, for reasons explained by Putnam among many others.

    The evidence isn’t that it works any better, only that it is more popular. I don’t see that as being necessarily a positive.

  • I think we find the first link between individualism and statism in Hobbes. First he shatters organic society and breaks us up into individual atoms, then he reconstitutes us in the body of the Leviathan, the absolute monarchy.

    This is why I object when people compare modern statism to feudalism, calling it “neo-feudalism.” At least in places such as England, the average peasant probably had more freedom certainly than a “worker” under communism. It was the medieval village (and the Church as the provider of social services) that had to be broken up and destroyed so that absolutism and statism could consolidate themselves.

  • The evidence isn’t that it works any better, only that it is more popular. I don’t see that as being necessarily a positive.

    I disagree with you on the evidence, but that’s another argument. Let’s accept this premise: in a homogeneous society (race, ethnicity/culture, religion, language being the most important) a statist system of governance is more popular and nothing else. This is not nothing if that state retains republican or democratic processes….in fact, popularity of large-scale policy is essential to societal harmony and decent, honest governance. Diversity and proximity equals conflict – all across the world, all across time and environment. Does this mean any one person is “lesser” than another? No. It means human populations are different, and (for powerful evolutionary reasons) prefer their “own.”

    Now let us consider a societal opposite. With different (and, by the way, strongly self-segregating populations), and with our incredibly advancing understanding of genetics, the future of social policy could very well be very contentious and ugly, with resentments galore.

    Geoffrey Miller in the current Economist:

    Human geneticists have reached a private crisis of conscience, and it will become public knowledge in 2010. The crisis has depressing health implications and alarming political ones. In a nutshell: the new genetics will reveal much less than hoped about how to cure disease, and much more than feared about human evolution and inequality, including genetic differences between classes, ethnicities and races.

    Uh oh. I just don’t see how it is not obvious that such revelations, in a republican society with democratic processes, an egalitarian ethos, and different populations, is not a toxic mix.

    (And again, let me be clear: I am not saying, nor do I believe, that any one person has less moral worth or inherent human dignity than another.)

  • Joe,

    I guess I see two issues with your characterization of the approach that classical liberals would/should take to inheritance:

    1) I’m not aware the Burke, Smith, etc. in any way endorsed a confiscatory approach to inheritance.

    2) The desire to be able to pass on an inheritance does not necessarily stem from an opposition to meritocracy (some idea that because your parents were rich you deserve to be rich regardless of your own abilities) but rather from self interest in the sense the classical liberals talked about it. When Smith talks about “self-interest” he means no so much “selfishness” or “what I want for me, myself” but rather “what I, myself, want to do with my goods”. One of the very natural things that people desire (and work to achieve) is the ability to take good care of their loved ones and of other causes or institutions they care about. In this sense, wanting have the fruits of one’s labor result in financial support for one’s children, one’s church, etc. would all be examples of “selt interest” in the classical liberal sense.

Chutes, Ladders, & Progressivism

Monday, September 21, AD 2009

I came across this comment a while back, and I think it summarizes the experience of many of my fellow law and MBA classmates (all of whom are recent graduates or current students):

I don’t know how it was elsewhere, but the game my friends and I were sold had breezy constant ladders and shallow painless chutes. Now the ladders are falling apart or growing queues, and the chutes have proved to be sudden and devastating.

Now, on the one hand, it’s almost never rational to expect wonderful career opportunities to be awaiting one at every turn. And the graduates he’s talking about – people with sparkling resumes from the most prestigious undergrad and graduate schools – are hardly Dickens-level sympathetic protagonists. On the other hand, endless career opportunities are what many grad school admission offices are selling. And for many students and recent graduates of these institutions, six figures in debt with rapidly eroding job prospects,  the recession has been a rather traumatic experience.  This is certain to have a number of consequences, but I’ve been idly speculating that twenty to thirty years down the line, when they will be in a position to influence public policy, these individuals are likely to be more sympathetic than they might otherwise to redistributive policies. And, as it turns out, there is actually a recent academic study from the National Bureau of Economic Research that supports this idea. Here is the abstract:

Do generations growing up during recessions have different socio-economic beliefs than generations growing up in good times? We study the relationship between recessions and beliefs by matching macroeconomic shocks during early adulthood with self-reported answers from the General Social Survey. Using time and regional variations in macroeconomic conditions to identify the effect of recessions on beliefs, we show that individuals growing up during recessions tend to believe that success in life depends more on luck than on effort, support more government redistribution, but are less confident in public institutions.  Moreover, we find that recessions have a long-lasting effect on individuals’ beliefs.

Continue reading...

3 Responses to Chutes, Ladders, & Progressivism

  • Good point, John. I suppose the other influencing factor might be how quick and what kind of a recovery we see in the years to come.

  • After this administration I expect the political pendulum to swing strongly against anything smacking of government redistribution of wealth for a good long while. In this administration I think we will see a New Deal that is a flat failure. (It is arguable that the first New Deal was also a flat failure but such was not the opinion of a solid voting majority of the American public.)

  • I was more thinking of the different ways that economic downturns seem to have affected people. My dad’s parents were both 19 in 1929, so they had a very, very depression era mentality. Nothing was ever thrown away which might be useful, a huge emphasis on savings and paying off debt, always working extra hard and squirreling things away for the expected next crash.

    Compare that to people who weathered the 1980/1982 recession, or like me who came out of college in the post 9/11 slow-down. Maybe my co-workers and I are way a-typical, but aside from a tendency to brag back and forth over beer about layoffs that we’ve seen or experienced, seeing a couple years of rough employment doesn’t seem to have slowed anyone down much or changed their habits.

    I think the big determining factor will be: in 2015 or 2020, will people remember long years of uncertainty and hard times, and feel like they need to save all the time and avoid debt in order to be prepared for the next one, or will they talk about how they worked up from the bottom and had it as hard as everyone, but from the vantage point of having basically “caught up” within 2-3 years?