Showing posts with label political economy. Show all posts
Showing posts with label political economy. Show all posts

Wednesday, July 21, 2010

The Political Economy of Shopping

Excerpted from my WORLDmag.com column, "Liberty, Justice, and Shopping."



...This summer, I have been researching a project. As I have not been at the college much, the library has not been at hand. So I went to Amazon.com to see what the market was charging for the titles I needed. Then the fun began! For the last month I have been delighting myself buying a steady trickle of books for prices that thrill a Scotsman's heart. For just $4, I bought George Gilder's 1980 classic, Wealth and Poverty...in hardcover...with a dust jacket...not a mark in it...delivered to my door. ...

What has this to do with liberty? In this commonplace experience, I notice three examples of the justice and goodness that ordered liberty allows, in this case, through a free market.

First, the market provides broadly for people's needs. ...

Second, the market is not a respecter of persons. ...

Finally, the market provides a kind of distributive justice. ...

Liberty as exercised in an ordered but free marketplace is part of God's good design for human well-being. It's just a part. It's not sufficient on its own. But no discussion of its shortcomings can proceed in fairness without first recognizing these great goods.

Someone has recommended Bookfinder.com in place of Amazon. I'm always happy to introduce competition into the marketplace, especially when someone starts looking like a monopoly.

Tuesday, October 20, 2009

Christian Culture War in the Age of Obama

In his April 2009 farewell speech to the Focus on the Family staff, Dr. James Dobson surveyed what his more than thirty year defense of the Christian American family had accomplished. Far from triumphalist, he described the work of his mammoth organization on behalf of the unborn child and the dignity of the family as "a holding action." He seemed to concede defeat, but if so it was only for the present. "We are awash in evil and the battle is still to be waged. We are right now in the most discouraging period of that long conflict. Humanly speaking, we can say that we have lost all those battles, but God is in control and we are not going to give up now, right?"

It does look bad on the culture front. Thirty-six years after Roe v. Wade, abortion is still legal. All manner of depravity is broadcast over the airwaves, taught and tolerated in the public schools, and pressed into our souls from every direction. It is more difficult than ever to raise godly or even just polite children without sealing one's family off from the world. Like Dobson, I do not think that the war is over. It cannot be. As God has not rescinded the cultural mandate to "take dominion over the earth" (Gen. 1:26), neither has Christ told his people to be anything other than salt and light in the world (Matt. 5:13-14), taking captive every thought for him (II Cor. 10:5).

John Barber and David Brooks have separate responses to the state of the Christian culture war in the age of Obama.

In a conference address at Coral Ridge Presbyterian Church this spring entitled "Have Christians Lost the Culture-War? ," John Barber challenged the way Christians assess success and failure in our efforts to transform culture by comparing it to our view of evangelism.

What is successful evangelism? Is it successful only when you share the gospel with someone and that person becomes a Christian? What if no one comes to Christ? Are we to say that we failed? Isaiah preached for nearly fifty years and hardly anyone responded positively. Was he a failure? I think of Bill Bright’s helpful definition of successful evangelism. Bright often said, “Successful evangelism is witnessing in the power of the Holy Spirit and leaving the results to God.” Now apply what Bright said in reference to the Great Commission to the cultural mandate, and let’s define the cultural mandate. “Successful Christian activism is laboring in culture in the power of the Holy Spirit and leaving the results to God.” You see, if we looked at evangelism the way some look at the culture-war, we’d look at all the people we’ve witnessed to, and see how few have come to Christ, and [following Dr. Dobson] say, “We are awash in evil and the battle is still to be waged. We are right now in the most discouraging period of that long conflict. Humanly speaking, we can say we have lost all those battles.” But no one who is biblically informed thinks this way regarding evangelism. So we ought not to think this way regarding the cultural mandate.

David Brooks, whether or not he thinks that these old battles (are they so old?) over abortion and the normalization of homosexuality are obsolete, is certainly convinced that we have missed one of the great battle fronts of the age. He has a point.

In "The Next Culture War" (New York Times, September 28, 2009), he writes:

[D]espite the country’s notorious materialism, there has always been a countervailing stream of sound economic values. The early settlers believed in Calvinist restraint. The pioneers volunteered for brutal hardship during their treks out west. Waves of immigrant parents worked hard and practiced self-denial so their children could succeed. Government was limited and did not protect people from the consequences of their actions, thus enforcing discipline and restraint. ...

Over the past few years, however, there clearly has been an erosion in the country’s financial values. This erosion has happened at a time when the country’s cultural monitors were busy with other things. They were off fighting a culture war about prayer in schools, ... and the theory of evolution. They were arguing about sex and the separation of church and state, oblivious to the large erosion of economic values happening under their feet.

He cites widespread and government sponsored gambling and the avarice it incites, scandalously huge executive compensation packages, supersized restaurant meals, a sharp rise in personal consumption as percentage of GDP, the explosion of personal debt (133% of national income vs 55% in 1960), and runaway government spending.

Our current cultural politics are organized by the obsolete culture war, which has put secular liberals on one side and religious conservatives on the other. But the slide in economic morality afflicted Red and Blue America equally.

Brooks calls for a “moral revival” in the form of a “crusade for economic self-restraint.”

He sent the same message in his June 10, 2008 column, “The Great Seduction.”

The people who created this country built a moral structure around money. The Puritan legacy inhibited luxury and self-indulgence. Benjamin Franklin spread a practical gospel that emphasized hard work, temperance and frugality....The United States has been an affluent nation since its founding. But the country was, by and large, not corrupted by wealth. For centuries, it remained industrious, ambitious and frugal.

Over the past 30 years, much of that has been shredded. The social norms and institutions that encouraged frugality and spending what you earn have been undermined. The institutions that encourage debt and living for the moment have been strengthened. The country’s moral guardians are forever looking for decadence out of Hollywood and reality TV. But the most rampant decadence today is financial decadence, the trampling of decent norms about how to use and harness money.

Evangelical Christians have had to mount counter-offensives on seemingly innumerable fronts as the culture has been unraveling, hastened on by the ubiquitous and (yes) demonic efforts of the nihilistic left. We have rallied to the defense of babies in the womb. Murder is a bloody and obvious evil. We have stood against public acceptance of the horror and perversity of homosexuality alongside its wholesome and natural counterpart. Prompted by these conflicts, evangelicals have thought seriously about the nature of healthy family life and have developed helpful resources to support people in their marriages and child rearing.

But the seductions of wealth and comfort and self-indulgence were harder to discern, and they so went largely unopposed. The megachurches went as far as embracing them. Why should I not sit in my own theater-quality chair? Why should I not be entertained on Sunday morning the way I was on Saturday night? Why should I not enjoy a Starbucks coffee after or before church, and why should I not be able to buy it in the church lobby? But Christians in small churches too went heavily into debt and voted for governments that did the same, and also supersized their drinks.

The Institute for American Values has initiated the sort of moral reform movement that Brooks has advocated. Indeed, Brooks praises them for this in his 2008 column. David Blankenhorn, the institute's founder and president, has written Thrift: A Cyclopedia, as well as “There is No Paradox of Thrift” (The Weekly Standard, June, 15, 2009). You can learn about the organization's Thrift Initiative here: http://www.newthrift.org/.

Tuesday, March 24, 2009

Capitalism and Its Fruits

There are times when I am at home when I am too tired to do all the stuff I should be doing, and so like many another American, I repair to the cheap passivity of slouching in the leather chair in front of the flat screen TV that lurks like some kind of pagan altar in my home. But even at my most mind-numbed, the tube still resembles the business end of a 103 channel sewer pipe, pumping cultural detritus into living rooms across the land. Yet one program that I came across while flipping through the channels is a program called "How It's Made" on the Science Channel, a part of the Discover Network, and it allows me to loaf without self-inflicting too much psychic damage. Short segments show the basic processes involved in thousands of the products and devices that our huge, flourishing, modern economy has, Adam Smith-like, made available to households and businesses all over the world.

I have always been fascinated and impressed by the genius and creativity of manufacturing engineers, and the coordination of inputs and outputs by the free market that make possible the cornflakes and tennis shoes of life. Adam Smith's paean to the lead pencil comes to mind, following Locke's similar analysis in chapter Five of his Second Treatise of Government. Which government commissar, looking down from the commanding heights, could coordinate the millions of decisions made every day by free entrepreneurs and managers across this economy?

Among the many items showcased by the program are Binoculars, Sparklers, Rubber Boots, Circular Saw Blades, Anatomical Models, Jukeboxes, Tortilla Chips, Spark Plugs, Pencils, Coffee, Javelins, Cuckoo Clocks, Hearts of Palm, Windshield Wipers, Technical Glass, Washing Machines, Playing Cards, Crossbows, Cine Cameras, Glass Christmas Ornaments, Giant Tires, Microphones, Hot Tubs, Artificial Turf, and Beer Steins.

What do all these products and the industrial processes that make them possible have in common? CAPITAL. When you watch this program you are struck with the scale of the undertaking, and the discrepancy between the size of the production machinery compared to the product being manufactured. Even the least consequential product--the pencil, say--requires a huge industrial array of production facilities and processes to deliver that product into your hands as a consumer. It is the freedom we enjoy under the rule of law, and a constitution that specifically favors commercial activity, that allows the capital formation that makes possible even the simplest items we depend on and take for granted. How much would a handmade pencil cost? $5? $10? Instead, pencils are so cheap you hardly bend over to pick one up that has fallen. The vast array of manufactured items that make your life possible at a price that you hardly even notice is brought to you by CAPITALISM. The private interest of free men, free to make a profit, brings to your door every item in your house, including your house, at a price point that you can afford. Can't afford a $120 trash can for the kitchen? You can buy one for $10.

Take a look at this program sometime, and consider how much of our industrial manufacturing would have been possible under a less free political economy--say, like the one we are steering into now, where grandstanding Congressmen compete with faceless bureaucrats to antagonize with regulation as many aspects of the economy as they can get to.

I grew up hearing about "American ingenuity", about the can-do spirit that made America not only the envy of the world, but its economic engine. We are witnessing the systematic destruction, by way of the tax code, of the system of capital formation that makes it a rational economic decision to build a huge factory full of machine tools and production lines for the manufacture of even the humblest of products that we rely on every day. Without the growth that freedom allows, we will from this day forward begin to live off the capital already in place in the form of plant and equipment, and whatever new enterprises that might seem possible under this new regime will groan under a much heavier burden of taxation and regulation, and now it seems, even open intervention by the Congress in things like executive pay and union affiliation. Obama keeps saying he is laying the groundwork for future economic growth by loading us up with the gargantuan spending he and Pelosi are planning, but they are making the mistake all collectivists make concerning the producers. They assume that regulation and taxation have no essential effect on the level of production. But the increased rate of taxation being contemplated will remove the economic rationale for a huge number of projects on the books right now. There are untold thousands of projects, plans, and dreams that are back on the shelf now under the aspect of the mere threat of increased taxation.

If the Democrats have their way--and it looks like they will--our flourishing economy will begin to decay into the sort of rusting hulks seen all over the collectivist world. It needn't be.

UPDATE:

After reflecting on the blessings conferred by free markets and free minds, consider the "Anti Industrial Coup" being pulled off under our noses by faceless and remorseless bureaucratic fanatics across the spectrum of executive branch agencies. Today, (Mar 26) Robert Tracinski warns that it may already be too late to save our industrial civilization from these radicals.

Tuesday, March 3, 2009

A Teachable Moment

One of our readers has brought forward a question that some of the rest of you may have been wondering about. And so in the spirit of transparency that Obama has promised but has studiously avoided delivering on, I wanted to respond out here on the page instead of in the comments section where "Dan" responded. I suspect that David will want to fill in the inevitable gaps I will leave in my open letter to you Dan, so we'll have his wisdom to draw on also.

Dan's response to the Mark Steyn "Quote of the Week", which appears immediately below, about socialism being much worse for America, is as follows:

"much worse"...?

"Geez, you guys are fairly fatalistic about the trajectory and/or overzealously fond of the past results here in the States. I'm not just responding to this post... it seems to be a theme. "Oh, no, Obama was elected, we're going to be a socialist state." First off... that's unlikely. And secondly, would it be so bad? What's wrong with the "European way" of things?~Dan


OK Dan, first, thanks for paying attention. Socialism has been a major theme on this page since the Obama candidacy hove into view 18 months ago. It took Joe the Plumber to make overt what had until then been covert in the national mediasphere, but David and I and many other bloggers were onto the implications of Obama's indirect speech and euphemisms from the beginning. I believe if you continue to pay attention, you will find that what Obama was hiding under the rubric of "change we can believe in", and "we are going to change America" is in fact an attempt to shift the American political and economic regime into as pure a strain of socialism as it is possible to accomplish.

I will take your points in order. “[Y]ou guys are fairly fatalistic about the trajectory [of the country]”.

I will speak for myself here, and let David qualify his own position as he sees fit; but for myself, you are correct. The left has never cared a whit for the constitution, except as a device to empower themselves while at the same time restricting their reactionary enemies—that would be all who like the constitution as it is, and don’t want wholesale changes made to what the Founders designed.

The Obama administration, in league with the Congressional despots Reid and Pelosi and all their henchmen, will see to it that most of their gains will be locked in, impossible to undo. They have a huge advantage in that the ever-expanding portion of federal and even state governments that are beyond public control are on their side—the Dems are the party of big government. For example, executive branch agencies—the Environmental Protection Agency will do as typical—are only loosely controlled by the political appointee (the Secretary in charge of the agency) and the president, or even the Congress. Career bureaucrats consider presidential administrations the “Christmas help”—i.e., the bureaucrats will be in place long after the politicians are gone. They have their own agenda—witness the way the CIA and State Departments beleaguered the Bush administration with those continuous and damaging leaks. How many leaks do you expect from those agencies under Obama? The federal bureaucracy is aligned with socializing the nation because that puts them in control of it. They are unionized, and they can never be fired.

Next, the federal courts are presided over by judges totally in sync with rewriting the constitution in the manner of common law—i.e., the law is whatever the courts say it is. So, through administrative fiat and judicial activism almost all the unconstitutional changes about to be wrought in the next four years will be difficult to undo—with four votes on the Supreme Court the only governmental backstop. Don’t forget the ominous move to take the census into the White House. Do you think all those hugely funded ACORN types are going to be unemployed the next two years? According to that Ur-socialist Joseph Stalin, “the people who vote are not important; it is the people who count the votes that are important”. This, along with huge changes in immigration policy, will lock down their political gains for generations if they get a way with it. Thus, the electoral remedy is being put even further out of reach.

And yes Dan, I am zealously, though not overzealously, fond of the “past results of this country.” Political, economic, and religious liberty is rare and precious. Despots don’t like freedom and they are in the business of increasing their power, under the guise of “helping”, at the expense of the people’s liberty. Liberty necessarily produces some messy processes and less than optimal outcomes. But breathing free air is something few human beings on this planet have experienced, and the American experience of freedom will mark the high point in political history, as Francis Fukuyama pointed out in The End of History and the Last Man. It doesn’t have to end, but I fear it will. The “Last Man” in Fukuyama’s title is Nietzsche’s prophesy: the last man is socialist man, enervated, emptied of virtue, and barely human.

That is the main reason socialism is inferior. It is antithetical to liberty and all that liberty produces, most especially human excellence. Look at what has happened to us already. The nanny state directs our lives in ways the Founders never dreamed any rational person would accept. Ronald Reagan said the scariest sentence you can hear is “We’re from the government and we’re here to help.” But the help governments bring only deadens initiative, removes personal responsibility, and actively competes with God and all religions for the spiritual allegiance of the people. Can you name a socialist country that has an active and engaged citizenry, a vibrant economy, or encourages religious faith? And because of its intrusiveness, it necessarily politicizes all of life. Suddenly, it is my business if you smoke or are too fat—it makes my health care costs more expensive, since we are all paying for each other’s health care. And instead of rationing resources and services by price, we will ration with waiting lines and coupon books. But there is always a way for some people to get to the front of the line or get more coupons, or avoid the whole regime, right? Orwell taught us that some are always more equal than others in socialism.

Frederich Hayek’s The Road to Serfdom and The Constitution of Liberty conclusively showed that, merely from the stand point of information science, central planners—and planning and control is what socialism is all about—cannot have access to enough information to make the economic decisions that routinely occur each day across the millions of actors in an open and free market. The “commanding heights” conceit that Marx was so fond of—from analogy with 18th century warfare—is false, and is an excellent example of how metaphors and analogies can mislead us in our thinking. Yet it is a flattering idea to men like Barack Obama—that he, along with a cadre of wizards, can command the economy to rise and the oceans to recede like some grand field marshal. It has evolved into the notion that reality can be legislated.

What’s so bad about Euro socialism? Holy mackerel, where to begin. Aside from the truncated freedom, the social pathologies it breeds, and the economic stagnation and unemployment, what’s not to like? Economically, socialism is willing to accept a high number of permanently unemployed people who are placed in hammocks and provided for, in order to lock down a minuscule number of permanent jobs for people who can never be fired from jobs in moribund industries, and are taxed at confiscatory rates. I suppose it’s a good deal for those with jobs; but take John Rawls’ “initial position” idea, and suppose yourself to be one of those European sad-sacks locked out of a job because the State determined as a child you were not going to university. You want to live in government housing, cashing minimal government checks for doing nothing, with no prospect of useful employment? Swedes, Danes, and Swiss all kill themselves in disproportionate numbers directly related to this sort of ennui. Epidemic numbers of Brits are falling down drunks; Belgium and Holland are full of heroine addicts who smoke pot in bars between fixes—all of them on the dole.

There are some socialist arrangements that maybe don’t seem that bad—Sweden, Denmark, Finland, if you don’t care about individual freedom. But these countries and all of Europe have been riding behind the huge economic locomotive of the United States economy since WWII. We have provided for the defense of Europe, and they all spent the money that would have gone to defense budgets on welfare programs. They all depend on selling into our huge open and free market. What happens when we are taxed and regulated into mediocrity? Who’s going to buy all those BMW’s and Volvo’s? When the entire Western world is socialist, that will mark the beginnings of the real sorrows. America is still the last best hope of mankind, because of LIBERTY.

Besides, socialism is not American. It is an alien plant, as welcome and as useful as kudzu. It cuts against every line in our constitution. And that is the main reason I detest socialism and will continue to warn and rail against it—it is unconstitutional and un-American.

David Innes adds:

Harold, I echo your "Where do I begin?"

First it is interesting that Barack Obama wants to reduce the tax advantages for charitable giving quite significantly. Even Democrats are surprised (a) that he would do this, and (b) that he would do it at a time when charities are suffering huge declines in contributions. But this behavior is characteristic of socialists and of statists of all sorts. They want all relief in the hands of the government where it can be properly directed and where it can further establish the necessity and ubiquity of the state. For this reason also, people on the poltiical left are notoriously stingy givers. They give almost nothing to charity compared to conservatives, especially religious conservatives, as Arthur C. Brookes has documented.

The best refutation of socialism I have read came from Alexis de Tocqueville in his "Memoir on Pauperism." (That link takes you to a pdf download.) It's a short but life transforming read. His chief concern is for what it does to the citizen character and the human spirit. It ennervates, infantilizes, and enslaves.

Tocqueville's chapters on soft despotism in Democracy In America (Part II, part 4) are also essential reading. We're vigilant against the tyranny of the majority, but we get blindsided by what he calls democratic despotism. "The will of man is not shattered, but softened, bent, and guided; men are seldom forced by it to act, but they are constantly restrained from acting. Such a power does not destroy, but it prevents existence; it does not tyrannize, but it compresses, enervates, extinguishes, and stupefies a people, till each nation is reduced to nothing better than a flock of timid and industrious animals, of which the government is the shepherd."

He adds, "They devise a sole, tutelary, and all-powerful form of government, but elected by the people. They combine the principle of centralization and that of popular sovereignty; this gives them a respite: they console themselves for being in tutelage by the reflection that they have chosen their own guardians. Every man allows himself to be put in leading-strings, because he sees that it is not a person or a class of persons, but the people at large who hold the end of his chain."

Another short but great work advocating individual liberty and thus refuting state socialism is Milton Friedman's classic, Capitalism and Freedom. Here's chapter one.

Note this also. If Barack Obama succeeds with his changes to the tax system, there will be a majority of Americans who pay no federal tax at all. Thus, the voting majority will be able to benefit themselves with one spending program after another while charging it to the minority. We need to remember Prime Minister Margaret Thatcher's counsel: "The trouble with socialism is that you eventually run out of other people's money." It's a strategy for national disaster.

If our public schools would provide an education that actually fit our young people for life in our particular regime, this good regime--industrious and civic spirited life--then we would not have to make these arguments.

Thanks, Dan. This was a useful exercise.

Saturday, January 31, 2009

Telegraph Road--Elegy For America

The frightening pace of our lurch toward economic darkness in the short time since the era of Obama began got me to thinking about our economic history and how we got here. Tocqueville's warnings about the tension between liberty and equality, and the tendency of democratic peoples to favor equality over liberty do not make the spectacle of liberty's loss any easier, especially when it comes under the subterfuge of an economic crisis. A song by Mark Knopfler (one of America's most thoughtful writers), Telegraph Road, came to mind; I have always found a kind of solace in its wistful look back, the burgeoning desperation of its look forward. It's how I'm feeling now, as I see the actual outlines of what David and I have been writing about here for a year begin to take shape. Are we going to escape the deadening stillness, the suffocation, of a socialist paradigm pressed down on us by political masters who have managed to turn the tables on us? There is no more wilderness to push into; a free America is the world's last best hope; without it, there is the dark, the cold, and the rain of Michigan's Telegraph Road, Knopfler's inspiration for the song.

Knopfler lays out the American experience, from the pioneers' push into the trackless wilderness to the beginning signs of industrial civilization's exhaustion. Told from the perspective of a factory worker, the descendant of that man with the sack on his back, its lament is even more poignant now, after the heady and high times of the long boom. The rich, the powerful, the connected, always escape worst of it, while the producers and the workers are left to "pay what's owed", to "reap from some the seed that's been sowed":

I used to like to go to work but they shut it down
I got a right to go to work but there's no work here to be found
yes and they say we're gonna have to pay what's owed
we're gonna have to reap from some seed that's been sowed

The fundamental injustice of it all, and the political contrivance that is its source, may yet gall enough of the rank and file to rise up and head off our fall from grace; but many just wish they were like the birds on the wires on the telegraph road, able to fly away from all the signs saying "sorry but we're closed".

Listen to it here: Think about what this country started out to be, and what it is turning into--and what it still could be. Like any truly epic saga, it is long--14 elegiac minutes.

A long time ago came a man on a track
walking thirty miles with a pack on his back
and he put down his load where he thought it was the best
made a home in the wilderness


He built a cabin and a winter store
and he ploughed up the ground by the cold lake shore
and the other travellers came walking down the track
and they never went further, no, they never went back


Then came the churches then came the schools
then came the lawyers then came the rules
then came the trains and the trucks with their loads
and the dirty old track was the Telegraph Road


Then came the mines - then came the ore
then there was the hard times then there was a war
telegraph sang a song about the world outside
telegraph road got so deep and so wide
like a rolling river. . .


(Bridge)

And my radio says tonight it's gonna freeze
people driving home from the factories
there's six lanes of traffic
three lanes moving slow. . .


I used to like to go to work but they shut it down
I got a right to go to work but there's no work here to be found
yes and they say we're gonna have to pay what's owed
we're gonna have to reap from some seed that's been sowed


And the birds up on the wires and the telegraph poles
they can always fly away from this rain and this cold
you can hear them singing out their telegraph code
all the way down the telegraph road


You know I'd sooner forget but I remember those nights
when life was just a bet on a race between the lights
you had your head on my shoulder you had your hand in my hair
now you act a little colder like you don't seem to care


But believe in me baby and I'll take you away
from out of this darkness and into the day
from these rivers of headlights these rivers of rain
from the anger that lives on the streets with these names


'cos I've run every red light on memory lane
I've seen desperation explode into flames
and I don't want to see it again. . .
From all of these signs saying sorry but we're closed...


all the way down the telegraph road.