Oh Yes, Economic Insanity! That'll do!

“It was the mystical dogma of Bentham and Adam Smith and the rest, that some of the worst of human passions would turn out to be all for the best. It was the mysterious doctrine that selfishness would do the work of unselfishness.” GK Chesterton

The day and age of prudence and sanity is long gone, if in fact it ever did exist. We live in a time where money gurus babble on about how the most radical deregulation will mysteriously perform the functions of regulation, how an absolutely unfettered economy will bring about order, and how “the virtue of selfishness” (as Madame Rand was fond of calling it) would result in nothing short of the economic Utopia finding its home in the wildest fantasies of men like Mises and Bastiat. To be quite frank, the entire ordeal is a tad bit overwhelming for those who, like me, have a sensitive gag reflex.

I wish these were the musings of a madman who hasn’t the slightest clue of things as they really are, the ravings of things far-fetched. Unfortunately, one has only to fetch the remote. Market mystics are commonplace, and like a bad case of herpes they show up in predictable places at just the worst times. Hucksters in tight suits and cheap cologne spouting off what Betty Crocker would consider a sure recipe for economic disaster.

The problem isn’t so much their being large in number as it is that they are professional ear-tickerls! They know the game, and they play it like champs. The masses are assured that if they just allow their cookies to crumble, then even bigger, better tasting cookie will appear from the heaped remains they let tumble to the floor.

It all sounds so simple! It sounds almost too good to be true. Like a good, old fashion pyramid scheme or bottle of snake oil. If only its this bit of irony was any bit ironic.

To imagine that we haven’t overcome our susceptibility to the charlatans of old. We should know better by now. Then again, there must be a reason why the adage “we never learn from history” has stood the test of time. If only there were a generation that had the kind of moral resolve and intellectual fortitude to put that precedent to rest. If only…

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Economic Eugenics

Miss American Pie bids farewell to the Working Class Jack as companies downsize, outsource, and offshore those jobs once proudly (and efficiently) done by American men and women.

This once great nation of producers has run out of steam somewhere between Pauperism and the ghost town of the eternal Proletariat. Our microchips are now potato chips, while our manufactured goods have been traded in for Big Macs.

All the while our politicians and economists, market mystics through and through,  whistle away the day, trusting  that their prophecies of a glorious era ushered in by classical liberalism will come to pass. They can only cross their fingers in hope that the increasing amount of evidence against them is nothing more than a mirage or mere bump in the road to Utopia.

It is rather unfortunate that these mirages, these mere bumps in the road, happen to be known by neighbor and foreigner alike as American citizens. The young, the poor, and those without a college education, these are hit the worst. But so be it! Survival of the richest is the way of the day, and economic eugenics is en vogue.

In days gone by, young Americans performed these jobs. They did for years. Many of them treated these jobs as stepping stones to something better. Some found them to took them as career-worthy vocations. While many of these jobs may be tedious and redundant, they didn’t look half bad on a resume. And with wages superior to Taco Bell, these young ones were able to save up for a home, a higher education, or even retirement.

Tough luck, kiddos. These jobs are going the way of the dinosaur, and their tales will only be told by those begin their sentences with “back in the day.”

Then there are those “down and outs,” the American poor. These men and women are hit especially hard. Many of these people are willing to work long hours on a line, if for no other reasons than paying the bills and supplying basic needs for them and their children.

While these jobs don’t require the skill level of a doctor or a lawyer, they meet many people right where they are. Truth be told, not everyone has the skill level of a doctor or lawyer. And many of these Americans have no ability or opportunity to further their eduction. All they want is some food, clothing, shelter, and enough money to make sure the bills get paid.

Sorry, folks, the rich and famous care little about you. Out of mind, and definitely out of sight, save for the burdensome fly-by during an election year or photo shoot. Place your bets on the lottery. The odds are in its favor on this one.

Take as another example the rest of those without a great deal of formal education. Jobs of this nature were a way to feel the pride that accompanies work and private ownership. And this could be done without having a degree (or even diploma) on the wall. They may have gotten married right out of high school. Maybe there were difficulties they were unable to overcome in a high school or college setting. They may have come from a family without sufficient funds to send them to college. Maybe they simply wanted to dodge the bullet of student loans that so many of their peers spend years trying to pay off. Whatever the case may be, they had their reasons, good or bad, and now their hopes have been dashed to pieces by belligerent ideologues and fideistic advocates of the Austrian school.

And let us not forget the elderly. While I failed to mention them at the beginning of this piece, it would be foolish to ignore the impact downsizing, offshoring, and outsourcing has on many of them.

This age group has really hit hard times. Social Security just isn’t what it used to be. Health risks continually increase, adequate insurance becomes harder to find, and the money simply isn’t there. In many cases it is nothing other than the death of a loved one, leaving them with less money and mess of bills.

Unfortunately, many of these people find themselves back on the line, working tough hours. That is, if they haven’t found a comfortable place as a Walmart greeter or McDonald’s cashier. Any way we go with the scenario, it feels like a lose-lose to those who’ve already lived a life of hard work.

The young, the poor, the less educated, and the elderly. Each of these lack the fitness needed to survive the rough ad tumble of a global economy. So let them rot in the cesspool of a service economy.

This wouldn’t be so sick were it not for the fact that market mystics treat the situation as inevitable, as a sort of social determinism or economic fatalism. These people were just dealt a rough hand. Better luck next time, right?

Lost livelihoods are nothing more than collateral damage in the cut-throat pursuit of efficiency (i.e. the cheapest labor the world has to offer) and never-ending capital surplus. It’s only too bad that the financial fanatics and their political tools have such a difficult time putting a name, a face, and a sense of personhood with the laborers they are tossing to the wind.

Or maybe I am giving them too much credit? Maybe they know, but simply don’t care…

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Dr. Thomas Woods Jr. in the Dock

While engaged in a discussion over Catholic Social Doctrine with a certain Protestant author, I was directed to the works of a certain Catholic libertarian by the name of Thomas Woods, Jr. The issue under contention was whether or classical liberalism is compatible with the declarations of the Church. It was the position of my acquaintance that Dr. Woods had demonstrated with great clarity that classical liberalism was in fact compatible with Catholicism. Apparently, Woods even went so far as to publish a book where he argued this at great length.

Upon investigating the daring doctor I found a handful of oddities. On the one hand, Woods is the associate editor for Latin Mass Magazine. Well, bravo! On the other hand, he is a senior fellow in history at the Ludwig Von Mises Institute. Now, Catholics advocating classical liberalism has become all too common, but a Traditional Catholic? That is an oddity ranking somewhere between a three-legged ballerina and a quadriplegic valet driver.

While rummaging through Woods' online material, I stumbled upon a document entitled Catholic Social Theory and Economic Law: An Unresolved Tension. Jackpot! If there was anything written by Woods that would clear up the matter, this appeared to be it. 

Much to my dismay, I didn’t get through the first paragraph before realizing that I was in for a rather uncomfortable ride. The preface began by assuring the reader that he has the most profound respect for the popes of the 19^th and 20^th centuries. Now, for those who are unfamiliar with this tactic, authors resort to these “assurances” when they are about to embark upon a crusade against those they claim to so profoundly respect. This trend turned out to hold no less true here than elsewhere.

From the get-go he displays nothing but hostility towards the declarations made by the popes he claims to profoundly respect. 

Woods accuses the popes of advocating “fateful” ideas and goes so far as to arrogantly insist that “if the Church is going to presume to establish moral principles on the basis of the consequences that follow from this assumption, then some demonstration of its truth must be attempted.” To make matters worse – if this is at all possible – he sides time and again with a cherry-picked number of scholastics, all of whom the Editors at IHS Press have insist are taken out horribly of context. 

In short, Woods makes abundantly clear to the readers that he prefers the company and wisdom of atheist/agnostic economists over against the declarations of the Magisterium in matters pertaining to all things economic.

If I may be so frank, the tone of the entire piece echoed the kind of anti-Catholic drivel that one may expect to hear from frightful figures such as Ayn Rand and Ludwig von Mises. It most certainly lacked the kind of prudence that would be expected in what was peddled as a humble criticism from a faithful son of Mother Church. The reason being, of course, that Woods had no intention of reconciling CSD with classical liberalism. Quite the contrary! He was hoping that his denunciations of the popes, the encyclicals, and many of her faithful sons would in some way justify his adherence to a philosophy that is inherently at odds with the teaching of the Church.

My primary concern, though, is with a number of assertions he made much later in the paper. In fact, they came just prior to his conclusion. The header of this particular section read: The Magisterium Has No Competence Here. Just reading it gave me the impression that this mad has no fear trampling where archangels fear to tip-toe. Here is what he wrote:

“... by any definition, it lay well beyond the competence of the Magisterium to presume to describe the workings of economic relationships.” He goes on to say that while one “hesitates to describe Catholic social teaching as an abuse of papal and ecclesial power,” it “seems dubious” that popes would“attempt to impose, as moral doctrine binding on the entire Catholic world, principles that derive” from their“intrinsically fallible reasoning within a secular discipline like economics.” To add insult to injury, he thunders, “at the very least, it appears to constitute an indefensible extension of the prerogatives of the Church’s legitimate teaching office into areas which it possesses no inherent competence or divine protection from error.”

But do his claims hold true? One need look no further than the encycicals or popes he referenced throughout the paper in order to conclude with full certainty that Woods assertions are worse then wrong, they were dead on arrival. 

Woods references four encyclicals written by four different popes: Rerum Novarum, Leo XIII; Quadragesimo Anno, Pius XI; Pacem In Terris, John XXIII; and Laborem Exercens, John Paul II. The question, then, is what authority these documents, and the popes who wrote them, claimed to possess in the field under consideration.

Rerum Novarum, the Magna Carta of CSD, is not so outspoken in regards to the authority of the Church in matters of economic affairs as are later encyclicals, but it is certainly not left without a witness. In section 16 we read: “We approach the subject [economic and social theory] with confidence, and in the exercise of the rights which manifestly appertain to Us.” While Pope Leo XIII wouldn’t presume a monopoly on the putting together of a comprehensive program applicable to any and all people in any and all places, he would certainly declare that the Church is at the forefront among various authorities concerned with the putting together remedies for various economic ills and shortcomings.

Pope Pius XI was far more outspoken. In Quadragesimo Anno he wrote that Rerum Novarum was written in the “virtue of the Divine Teaching office entrusted to him [Leo XIII].” The pontiff goes on to write in section 11 that “the Pope clearly exercised his right” and that he declared “confidently and as one having authority” those things that “the Church, heads of States and the people themselves directly concerned ought to do.” He reiterates this in section 31 when saying that “the rules” which Leo XIII issues were “in virtue of his [papal] authority.”

It is in sections 39 and 41 of the same encyclical, though, that Woods will find himself in a great deal of trouble. A passing glance of these two sections ought to have caused him an extraordinary level of discomfort.

Section 39 declares that “those who would seem to hold in little esteem this Papal Encyclical [Rerum Novarum] and its commemoration either blaspheme what they know not, or understand nothing of what they are only superficially acquainted with, or if they do understand convict themselves formally of injustice and ingratitude.”

In like manner, section 41 says that “principle which Leo XIII so clearly established must be laid down at the outset here, namely, that there resides in Us the right and duty to pronounce with supreme authority upon social and economic matters.” The pope continues by saying that this would “bring under the subject of Our supreme jurisdiction not only social order but economic activities themselves.”

Conveniently, Woods was not inclined to deal with, much less reference, passages of this nature in his diatribe.

Pacem In Terris, written by Blessed Pope John XXIII, followed on the heels of another encyclical by the same pontiff entitled Mater et Magistra. The claims of authority and jurisdiction in Mater Et Magistra were foundational for any and all declarations that would follow, whether in that encyclical or in any other.

John XXIII says in section 16 of Mater et Magistra that “We approach the subject [social and economic theory] with confidence, and in the exercise of the rights which manifestly appertain to Us.” The pope goes on to say in section 218 that“the permanent validity of the Catholic Church’s social teaching admits of no doubt.” From here he spends the larger portion of the end declaring directives that he considers to be binding on all, especially the faithful children of the Church. He insists that CSD “is an integral part of the Christian conception of life” (222); that it should be taught in all seminaries, schools, religious instruction programs, and spread through all mass media (223); that beloved sons should put it into practice and strive to have others understand it (224); that they should be “convinced that the best way of demonstrating the truth and efficacy of this teaching is to show that it can provide the solution to present-day difficulties” (225); and that these principles must be put into effect (240).

Here, too, we see strong warnings for those, like Dr. Woods, who would fail to embrace papal instruction on social and economic matters. Section 241 requires that the faithful Catholic's "attitude must be one of loyal trust and filial obedience to ecclesial authority.” For the pope was concerned that “if in the transactions of their temporal affairs they take no account of those social principles which the Church teaches… then they fail in their obligations… [and] may even go so far as to bring discredit on the Church’s teaching, lending substance to the opinion that, in spite of its intrinsic value, it is in fact powerless to direct men’s lives.” 

These words, possibly above all others, force men like Woods to their knees in fear and trembling. Instead, as with similar warnings in other encyclicals of this nature, Woods allowed them to hit the cutting-room floor.

As for the final encyclical referenced by Woods, it had little to say of its own authority. Pope John Paul II, in Laborem Exercens, had no reason to reiterate what had been said so many times over concerning the authority of the Magisterium in regards to social and economic matters. Still, in article III section 14, the pope states that “the many proposals put forward by experts in Catholic social teaching and by the highest Magisterium of the Church” are of “special significance.” While "special significance" may not bear the same kind of gavel pounding found in Mater et Magistra, I see nowhere within the enclyclical that the nature of things had in any way changed from the time of Blessed John XXIII and the writing of Labor Exercens.

It should be obvious, then, that Woods is in grave error concerning the issue of the Magisterium’s jurisdiction over both social and economic concerns. Consequently, he has chosen to side with a mongrel horde of atheists, agnostics, and a cherry-picked remnant of scholastics (taken out of context) over against the Bishops of Rome and the overwhelming majority of the Church’s faithful sons who worked long and hard towards the reconstructing of a Catholic social order. He gives aid and comfort to those enemies of the faith by boldly criticizing the Church and calling into question the very right to jurisdiction the pontiffs claimed for themselves and their decrees. Furthermore, he advocates those very social and economic dogmas that the sovereign pontiffs condemn. But, worst of all, his actions place him in the frightening position of an obstinate son as described, particularly, in Quadragesimo Anno and Mater Et Magistra.

It is my hope that Woods would reconsider his position, and that he would do so with a sense of great urgency. With this being done, I pray that he would put as much effort into educating others about the majesty and wisdom of CSD as he has into deconstructing it in hope of salvaging his commitment to theories the Church has steadfastly denounced.

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