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Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Sunday, November 6, 2011

And Here Comes Capitalism - Take Two.

  For those of you who are keeping score or who are possibly trying to make a convert out of me (love and appreciate the attempt by the way, if you think you are right about something, the nicest thing you can do is try to show me the truth you have found), the mission is not yet a success. I am still a pretty hard-core free market capitalist. A big part of that is probably the fact that I haven't yet heard (or read) a response to my "it is immoral to force people to spend their own money in a particular way" objection. Still waiting on one -really- so that I can at least be in dialogue with someone about it.
  In the mean time I though it might be worth recording some of musings on the strengths of free market capitalism in a modern liberal society and why it is that I think more and more good people find themselves against capitalism these days. I have been re reading The Abolition of Man recently and it occurred to me that we (the western world in a terrible over-generalization) used to combat the major flaws of capitalism in a way that is, at best, only minimally effective in modern culture. It used to be that the average westerner held two particular views in regards to the use of their financial (and material) resources: A) that their stuff was their stuff; only they have a right to decide how to spend it so that if anyone else tried to force them to use it in a certain way they would be justified in being offended, outraged etc... B) that they ought to be generous with their resources, help those less fortunate than themselves (especially their friends, family and neighbors) so that generosity and concern for people in need was a basic part of being a decent person.
  The result was a worldview which protected societies (in theory and at least sometimes in practice) from the worst impacts of a purely free market system. If people view charity (in the middle-old sense, "giving resources to the poor") as each persons duty, then the poor will generally be kept from starving.
  But we can't teach that any more. Back in the day, this moral obligation to help the poor was taught as just that, a moral obligation - usually a religious moral obligation. Today we don't teach children that they have any moral obligations other than tolerance (and something akin to but not quite the same as non-violence). We tell them that everyone has a right to their opinion and then we tell them that all statements of ought or moral sentiment are statements of opinion. And once we have taught them this moral subjectivism, a lesson they pick up with alarming speed, they are almost perfectly defended against any appeals we make to some duty of charity. We have already told them that they have a right to define their own moral code, thus we lose all right (in their minds) to tell them what that moral code ought to look like. So charity becomes a matter, not of moral obligation, but of pragmatic utilitarianism.
  This, by the way, is why I think so many older movies are popular as left-leaning films simply because they contain the message that the rich ought to be generous with their wealth. But that is not a socialist message, that is a capitalist message. It is the capitalist who says "the rich have a right to their riches and a responsibility to do the right thing with them. The truly evil man is the miser who has great wealth and does not use it for the good of his neighbors". The socialist thinks of the rich man as un-deserving of his treasure and insists that it be stolen from him and used to make the middle class feel better about the suffering of the poor.
  Now, the average schoolchild's reaction to poverty is not "I had better do something about that" but "that makes me feel bad so some thing ought to be done about it". Do you see the difference? In the first case, the problem demands concrete action (generosity) on the part of the individual. In the second it demands action on the part of "society".
  That is why I see it as only natural that good people, people who happen to care about the poor, the mistreated, the abused, are trending more and more towards socialism (not all have gotten there and I see no great shame in being a socialist - though I think that it is a very bad economic and political system). These are the people who want the problem fixed and have noticed that nobody is standing up to fix it. In short, socialism is on the rise because the free market capitalists have forgotten their moral duty.

  I believe that being truly moral (something I would still like to be) means not breaking either of two principles. I must not let other people suffer if I can do anything about it and I must not steal, even from those who can afford it, to alleviate the suffering I see around me. Being a free market capitalist means taking responsibility for my fellow man, not because the government forces me to but because it is the right thing to do. A socialist society is a society which does not provide it's citizens with as much of an opportunity to learn to be good; because it is a society with less freedom, it is a society for rule breakers (in Blue Ocean terms - socialism is a good system for a stage 1 society which needs rules and the threat of violence to make it be good). A capitalist society is an audacious experiment in free will. A wager that given the necessity, the rich will voluntarily give of themselves to feed the poor. Let us pray that the experiment does not fail.

Monday, August 1, 2011

I'm a Capitalist, Am I Going to Hell?

2018 Update: This is one of the more widely read pieces on my blog. I am definitely leaving the piece up as it reflects where I was in 2011. However I am not quite in that same place anymore. I hope to eventually write a response to my own thinking here, but until I do, the summary of my changed thinking is that this piece is built on a belief that rights=goodness. I have come to believe that such an equation is ethically anemic. That is to say I think that a rights-based ethic represents a weak vision of the Kingdom of Heaven. A more fully developed vision of the Kingdom would be based on Love/Justice and would look to that state of affair where (to quote Julian of Norwich) "All shall be well, and all shall be well, and all manner of things shall be well". That is not so say that I have quite rejected capitalism or embraced socialism (I am still very uncomfortable with state power over people) but I do think that I started from the wrong place when I was working through these ideas seven years ago and that, as a result, my conclusions were flawed.

Cigars make you rich
I spend a lot of time hanging out with and reading the works of people who are (among other things) united in being anti-capitalist american Christians. This is odd because I am a pretty hard line free-market guy. But I agree with them on so many other points. In fact my worldview seems to have much more in common with theirs than it does with most other Christians, especially with other Christians who tend to hold free-market type views.


Now a when I started to notice this discrepancy I wasn't too worried about it. I just chalked it up to "personalities and preferences". After all, it is an issue of economics, not exactly (despite what some modern theologians want to claim) a matter of deep doctrinal profundity. I didn't see my stance, or the stances of others, as integral to my understanding of what Jesus is like or what it means to be one of His followers.


But recently I have found that my position on this issue does have a pretty big impact on my beliefs about how I ought to live as a Christian in the modern world (for those of you theologaphiliacs, it has substantial implications for orthopraxy). If that is an accurate observation then it would seem that I was wrong to dismiss the debate as unimportant to my worldview. If I find that I disagree with someone about how a person ought to live then it is likely that we have some fundamental disagreement on a deeper level than personality and preference.


So this post is targeted at those of you who really disagree with me about capitalism. I intend to lay out 1. Why I am a free-market sort of person and 2. Why I think that being a free-market kinda person is more in line with following Jesus than opposing it would be. I hope that you will let me know where my thinking starts to diverge from yours and why I am so terribly mistaken.
Also smoke stacks... see... cigars?

Let me begin with some of my presuppositions. I think that Jesus is not interested in having us force people, especially people who aren't interested in following Him anyway, to behave in a "kingdom of heaven" sort of way. So Jesus isn't interested in us passing laws that make divorce illegal in the case of "irreconcilable differences" even though that doesn't look like something He thinks is actually good for people. He doesn't want us to make it illegal to "blaspheme against the Holy Spirit" even though He suggests that doing so will have pretty dire consequences. So it's not good to force someone to do good.


My second working presupposition is that capitalism creates wealth. But let me be clear about this. I'm not saying that wealth is intrinsically good (I see it more as a tool which can be used well or badly) and I'm not saying that there is any particular virtue in a countries acquiring wealth, at least not beyond the capacity required to feed the population. But I do think it's pretty clear from history that the capitalist approach has been more effective in creating wealth in general than any other system we have tried. That doesn't make it good, it just sets up a correlative and assumed causal relationship.

My third presupposition has do do with definition. I define free-market capitalism (the kind I am interested in) as an economic system which guarantees all members the right to make and enforce whatever contract they choose so long as that contract is made in good faith and doesn't infringe on the basic negative rights of anyone else. (The Stanford Encyclopedia of Philosophy has a great article on the distinction between positive and negative rights).


As a consequence of these presuppositions I see free market capitalism not as an established economic system so much as an economic non-system which generally has to be defended from having systems like socialism, mercantilism, or crony capitalism imposed on it. Essentially, free market capitalism is what you get if you just let people do their thing and a)don't force them to be virtuous and b) don't let them violate one another's negative rights. Thus I see it as a system of minimal justice. Free market capitalism is not forcing the kids to share but not letting them steal each other's toys either.


But this is not complete. Surely a  Jesus follower wants people to do more than just "not steal each other's toys", surely it is important that people actually grow into practicing the positive virtues of love, generosity and compassion for others. Of course this is true. But remember my first premise: Jesus isn't interested in having us force our joy on people who don't want to follow Him (another way of saying this is that God's Kingdom grows by persuasion, conversion and transformation not by threat, violence and law). If this is true then following Jesus means living a life of love, generosity and compassion without ever trying to force anyone else to lead such a life.


And now I bring the two together. Free market capitalism leaves everyone free to do what they think God wants them to do with their money without forcing anyone. I am in favor of free market capitalism specifically because I see it as the economic system of maximal freedom. All the other systems I know of either force people to do what others think is right (socialism), or force people to contribute to specific injustices (mercantilism, crony capitalism, feudalism).

Apparently Jesus doesn't like flappers... not sure why.

I want to end by heading off a couple of objections by adding a couple of clarifications. First, I do not think that this country does now or ever has practiced free market capitalism. We have been both closer to it and farther from it in the past but we haven't ever fully practiced it so I am NOT arguing for the status quo or the "system that created the current financial crisis". Second I am not arguing that free market capitalism with it's at least tacit approval if not outright benediction of greed reflects the way we would go about dealing with possessions in a perfect world. And I am not saying that capitalism is a necessary evil. I don't happen to believe that there is any such thing as a necessary evil anyway. I am only saying that free market capitalism is the only system a Jesus follower can advocate for in the world as it is because it does not, of necessity, cause us to act in ways that are contrary to the life Jesus calls people to (though it does allow such actions to occur).
This visual pun is supposed to be
"The Communist Party"

In case this last point is unclear let me make an observation. In a society which restricts itself to enforcing only free market principles (a capitalist society) it is perfectly compatible with that societal structure for any given person or even for every person to behave in an economically socialist manner so long as they do not try to impose their socialism on anyone who doesn't accept it. Thus in a free market society I would be free to throw my income into a pot along with a group of friends or an established community and then distribute that wealth to each person according to their need. But the reverse is not true. In a socialist society, no person is free to behave in a free market manner distributing wealth to each person in accordance with a pre-defined, mutually agreed upon manner; instead all people are required to dispense with their incomes according to the direction of the state. Thus free market capitalism allows for socialistic behavior (so long as it does not force itself on anyone) while socialism does not allow for capitalist behavior. I note that this relationship does not exist between free market capitalism and several other economic systems (feudalism, mercantalism, crony capitalism) because they are integrally dependent on suppression of human rights.

So where have I gone wrong? Are my premises false? Is there a flaw in my reasoning? Have I overlooked some key fact? Please let me know.