Showing posts with label Ludwig von Mises. Show all posts
Showing posts with label Ludwig von Mises. Show all posts

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 19th and 20th 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.

Read more...

Can Mises be Baptized?

There is no doubt that the Catholic Church supports the idea of a just social order, and has expounded on that order in the great Social Encyclicals. However, and despite more than 100 years of constant Papal teaching on this subject, the average Catholic—indeed, the average Bishop—is confused about it meaning or even unaware of its existence. Most preaching concerns personal sin without ever considering the social implications or connecting sin to a violation of a just social order. And yet, this is strange, since what makes a sin sinful is that it violates what the right order between a person and his neighbor and his God. Without a violation of this order, a thing cannot be sinful. This is expressed negatively in the Ten Commandments (“Thou shalt not kill, steal, covet, etc.”) and positively in the Sermon on the Mount (“do good to those who harm you...” etc.) However, rather than stress the social damage that sin causes, preaching most commonly connects it only with our ultimate destiny to heaven or hell. And while this is legitimate in itself, it strips Catholic teaching of its more immediate values.


Church teaching does not, by itself, dictate a particular social or economic system; it only lays down the criteria by which any social or economic system is to be judged. It is up to the laity to devise systems in their own social and historical context that meet with the criteria. Most often, this task is refused. It is not that Catholics are not heavily involved in the political and social life of the nation. But often that involvement is disconnected with their religious beliefs and with Church teaching. Many such examples can be found on the left, but the greatest example can be found on the right, specifically the attempt to baptize the essentially pagan economics of Ludwig von Mises and the Austrian School.


Much of the Catholic intelligentsia has surrendered to this doctrine. The Austrian Catholic right boasts names like Michael Novak, George Weigel, Thomas Woods, Murry Rothbard, to name but a few. Further, these scholars are supported by well-funded institutes such as the Acton Institute, the American Enterprise Institute, the Ethics and Public Policy Institute, the Liberty Foundation, and a host of others. Money flows like water for these people, usually corporate money, water largely used in an attempt to baptize Mises. Still, there is one scholar who was absolute in his opposition to such a notion, who declared, over and over again, the fundamental opposition between the Austrian School and any genuine understanding of Christianity.


That scholar was Ludwig von Mises.


Mises recognized that Austrian order and Catholic order would always be at odds. “A living Christianity,” said Mises, “cannot exist side by side with, and within, Capitalism” (Quoted in Jorg Guido Hulmann, Mises, the Last Knight of Liberalism, p. 982). Later in his career, Mises would allow that Christianity could exist within capitalism, but only if the Christians kept their opinions to themselves, only if they were marginalized and kept apart from the political and economic orders. As Murry Rothbard admits, Mises considered himself a “man of 1789, an heir of the Enlightenment, (http://www.lewrockwell.com/rothbard/rothbard169.html),” that is, a man of the French Revolution. And the great advantage of the French Revolution was that it destroyed the older social order in general and the social authority of the Church in particular. As Mises himself put it, “for us and for humanity there is only one salvation: return to the rationalistic liberalism of the ideas of 1789.”


Mises's antipathy towards Christianity begins with his disdain for its founder.

[Jesus] rejects everything that exists without offering anything to replace it. He arrives at dissolving all existing social ties…. The motive force behind the purity and power of this complete negation is ecstatic inspiration and enthusiastic hope of a new world. Hence his passionate attack upon everything that exists. Everything may be destroyed because God in His omnipotence will rebuild the future order…. The clearest modern parallel to the attitude of complete negation of primitive Christianity is Bolshevism. (Socialism, p. 413)

Another thing about Jesus that rankles Mises is his attitude towards the Rich:

Jesus's words are full of resentment against the rich, and the Apostles are no meeker in this respect. The Rich Man is condemned because he is rich, the Beggar praised because he is poor…. In God's Kingdom the poor shall be rich, but the rich shall be made to suffer. Later revisers have tried to soften the words of Christ against the rich … but there is quite enough left to support those who incite the world to hatred of the rich, revenge, murder and arson…. This is a case in which the Redeemer's words bore evil seed. More harm has been done, and more blood shed, on account of them than by the persecution of heretics and the burning of witches. They have always rendered the Church defenceless against all movements which aim at destroying human society. The church as an organization has certainly always stood on the side of those who tried to ward off communistic attack. But it … was continually disarmed by the words: “Blessed be ye poor; for yours is the Kingdom of God.” (Socialism, p. 420)

Mises rejects Christian love as the basis of social order, and reduces it to self-interest and the fear of violence:

Social cooperation has nothing to do with personal love or with a general commandment to love one another… [People] cooperate because this best serves their own interests. Neither love nor charity nor any other sympathetic sentiment but rightly understood selfishness is what originally impelled man to adjust himself to the requirements of society…and to substitute peaceful collaboration to enmity and conflict. (Human Action, p. 168-9)

Now, one may agree or disagree with Mises in all of this, but in either case it simply cannot be reconciled with Catholic Social Teaching. It is not even, as Murray Rothbard notes, conservative in any possible meaning of that term. It is, rather, the quintessence of Enlightenment Liberalism, the French Revolution continued in our day.

The surrender to the Enlightenment among Catholic intellectuals on the right is more or less complete. For example, Michael Novak, a nominal Catholic, notes that an attempt “to try to run an economy by the highest Christian principles is certain to destroy both the economy and the reputation of Christianity” (The Spirit of Democratic Capitalism, p. 70). For Novak, there is no sacred canopy that covers society, but only an “empty altar” in which each man places the idols of his own choosing. Religion in this case is not really the repository of truth, but merely a consumer product giving the purchasers whatever satisfactions they desire; theology gets replaced by marketing. This narrowing of the sacred, Novak tells us, requires “not only a new theology but a new type of religion” (Novak, p. 69). Not that Christianity would be done away with; it would be allowed to modify itself to conform to the new ideology:

Yet if Jewish and Christian conceptions of human life are sound, and if they fit the new social order of pluralism, the widespread nostalgia for a traditional form of social order may be resisted…For the full exercise of their humanity, being both finite and sinful, free persons require pluralist institutions (Novak, p. 69-70).

For this “new theology” and “new religion,” Novak finds it necessary to drain Christian dogmas of their original meaning and convert them into mere supports for corporate capitalism. The Trinity, for example, is only a “symbol,” since “no one has ever seen God” (Novak, p. 337). The point of this symbolic Trinity is to teach us about pluralism. The Incarnation is the sign of religious futility: it is no longer the salvific act of a loving God but the ultimate demonstration of the futility of good intentions.

The point of the Incarnation is to respect the world as it is, to acknowledge its limits… and to disbelieve any promises that the world is now or ever will be transformed into the City of God. If Jesus could not effect that, how shall we? ...The world is not going to become—ever—a kingdom of justice and love (Novak, p. 341).

I might point out to Mr. Novak that Jesus isn't dead yet, or rather, he isn't dead again, despite the neoconservative attempts to kill him off. He lives on in his Eucharist and in His Church, but the life of His Church waxes and wanes with the faith of His followers, and with their ability to transform the gospel from the printed page to the social order. But this is not likely to happen so long as the Austrian neoconservatives have such sway in Catholic intellectual circles. What is needed is a revolt of the masses in favor of the Mass, and for making the Eucharistic vision a part of social, economic, and political life. What is needed is what Benedict XVI calls Eucharistic consistency. For this we have a model. Not indeed a modern model, but an effective one nevertheless. She was not an intellectual; indeed she was a mere peasant girl. But she was given, in a single instance, a vision of the full meaning of the Incarnation and its social implications. She gave full answer to the neoconservatives, to both Mises and Marx. Her words were:

My soul magnifies the Lord, my spirit rejoices in God my savior.

For he has looked with favor on his lowly servant.

Behold! From this day all generations will call me blessed; The almighty has done great things for me and holy is his name.

He has mercy on those who fear him in every generation.

He has shown the strength of his arm, he has scattered the proud in their conceit.

He has cast down the mighty from their thrones and lifted up the lowly.

He has filled the hungry with good things while the rich he has sent away empty.

He has come to the help of his servant Israel, for he has remembered his promise of mercy, the promise he made to our fathers, to Abraham and his children forever.



On their best days, neither Mises nor Marx wrote anything this good. All the money in corporate capitalism cannot buy a single drop of holy water with which to baptize Ludwig von Mises, and Mises would be the first to agree. The attempt to do so has made the Catholic politics of the right incoherent and therefore rendered it impotent; at best account, it is a mere appendage to corporate capitalism.

Read more...

  © Blogger template Werd by Ourblogtemplates.com 2009

Back to TOP