Capitalist-Socialist-Distributist Conference

Dear friends,

On April 4th, Thomas Storck, Dr. Charles Clark, and Michael Novak participated in the conference “Catholicism and Economics,” a presentation and debate featuring three economic systems: capitalism, socialism, and distributism. They were tasked with presenting their positions, discussing their viability, and relating them to Catholic Social Teaching.

The conference commenced with a luncheon provided by the host and sponsor of the event, the Nassau Community College Center for Catholic Studies. Many familiar faces were in attendance including Tim Ehlen, Director of Building Catholic Communities, Fr. Ian Boyd and Dr. Dermot Quinn from The Chesterton Review, as well as author and Taki’s Mag contributor, Mr. James Kalb. John Médaille, Bill Powell, Ryan Grant, Jeremiah Bannister, our speaker Thomas Storck, and yours truly represented The Society for Distributism. Literature was available for sale by the Campus bookstore, including Thomas Storck’s “The Catholic Milieu” (Christendom Press) and Belloc’s “Economics for Helen” (IHS Press). Both virtually sold out by the time lunch was over.

180 people registered, but due to intense weather conditions in New York, we estimated somewhere in the vicinity of 120-130 arrived at the event. The numbers were impressive and we were delighted to see a full house. We must thank Dr. Joseph Varacalli, President of the Center for Catholic Studies, for the opportunity to not only debate Mr. Novak and Dr. Clark, but to expose the public to Distributism. This conference successfully exceeded our expectations and we owe Dr. Joseph Varacalli all our deepest thanks for inviting us to take part in it.

Dr. Joseph Varacalli was also kind enough to arrange a table for us to use throughout the conference. We mounted a colorful display with hundreds of our pamphlets (including a promo sheet for Distributist Review Press), our brochure, and a mailing list sign up sheet. Our readers may be excited to know dozens joined our mailing list and we barely had any material left once the event was over.

Attendees varied from layman to academic, so we couldn’t have asked for a better opportunity to dig in and introduce Distributism to a large group of people who probably have never heard of it.

Following the initial tributes for Avery Cardinal Dulles, Msgr. Wrenn, and Fr. Neuhaus, the debate started with a half hour presentation by the three participants. Dr. Clark was the first to commence. Some of our readers are probably familiar with Dr. Charles Clark, who penned the Foreword to the IHS Press edition of Amintore Fanfani’s Catholicism, Protestantism, and Capitalism. Dr. Clark is a Professor of Economics at St. John’s University. He opened up with the Democratic Socialist argument by offering a phenomenal attack on capitalism from a practical lens. Clark chastised capitalism for failing to provide workers with a family wage, for its profit seeking at the expense of labor, outsourced manufacturing, and debt enslavement. Clark did an excellent job and in one poignant part of his tit for tat with Michael Novak regarding our financial economy, Clark reminded us of John Médaille’s famous article, “Buy it up! Break it up! Fund it right!” where John argued for a government buyout of our financial institutions, so they could be broken into small businesses, and end the havoc wrought by corporations riding on the coattails of the public. My only critique of Dr. Clark’s presentation is that while he struck the first blow against the capitalist position, we didn’t entirely know how advocates of socialism planned to solve the problems capitalism wrought. From what we gathered, his argument highlighted an expected heightened role of the central government in our economic and social affairs, distant from Marxism and probably likened to a moderate Christian Socialist position.

I believe I share the same frustrations as my colleagues when I say I was very disappointed with Michael Novak’s presentation. Mr. Novak made no attempt to either define his position or to relate capitalism with Catholicism at all. Neither did he give any mention about our current crisis. He began by contrasting capitalism’s departure from a society in favor of stability and poverty relief to societies paving the way for wealth creation as a solution to massive poverty. In an attempt to minimize distributism, Mr. Novak claimed capitalism exemplified the widest distribution of goods and property, by oddly pointing to the Homestead Act. The Homestead Act, signed into law by Abraham Lincoln in 1862, allowed Americans within the 13 colonies to claim stakes of undeveloped land outside its borders. The Homestead Act was not only the antithesis of capitalism and a victory for government, but also a devastating exploitation of the Native American nations, which were driven off their lands by military forces.

Perhaps Novak’s harshest distinction between the three economic systems came in the form of an ethnocentric jab against Europeans. Comparing the United States to Europe, Mr. Novak claimed Europeans simply drank coffee in cafes and contrasted this with American ingenuity. Europeans enjoyed life, while Americans were the true innovators of the world. Considering Europe is arguably responsible for the bulk of our architecture, arts, sciences, education, and history, I found the comment rather strange.

In another baffling moment, Mr. Novak claimed trade unions were a staple of capitalism and not an association rallied against the abuses resulting from it!

Thomas Storck presented a precise definition of Distributism, its practicality as an economic model, and correspondence to Catholic Social Theory. Mr. Storck brilliantly began by focusing on the purpose of economic activity within the realities of our human use and need. Quoting St. Thomas Aquinas Storck said, “…the appetite of natural riches is not infinite, because according to a set measure they satisfy nature; but the appetite of artificial riches is infinite, because it serves inordinate concupiscence…” (Summa Theologiae, I-II, q. 2, a. 1 ad 3) Mr. Storck went on to define capitalism by separating it from its flat definition and repeating the definition offered by Pope Pius XI’s encyclical Quadragesimo Anno, which described capitalism as the separation of ownership and work. Thomas Storck argued that recognizing this friction between ownership and production in a capitalist state, Distributism dispensed with this problem by making ownership and work one and the same. Thomas Storck also argued for capitalism’s clash with productive property and illustrated this particular point by stressing how laws such as eminent domain, capitalism’s obsession with money to the detriment of the human person, lack of innovation, and creation of artificial needs are in actuality enemies of true progress. Once Mr. Storck concluded his portion of the presentation period, we took a break, and I was quite pleased to see a line of people waiting to speak with him.

When Michael Novak took the opportunity to ask our speaker a set of questions, I was surprised to hear him openly state his sympathies with Distributism. Arguably, the question he posed to Mr. Storck regarding the feasibility of health care in a Distributist State might have appeared to him to be the Achilles Heel against the Distributist platform. But to his surprise, Mr. Storck proposed a solution. His favored the restoration of occupational groups (or creation of co-ops) within a Distributist State to operate, regulate, develop, and research in the medical -or any- large scale field. It was a sharp reply for those who have never heard of Distributism before or those unconvinced of its viability in large-scale markets. Mr. Storck concluded his answer by stating that guilds and cooperatives exemplify the limitless potential for the decentralization of large entities through the use of smaller firms as practiced by the automotive industry today.

Following the exchanges, Franciscan University’s Dr. Stephen Krason offered a fifteen-minute talk on Heinrich Pesch and Solidarism. Dr. Krason delivered a passionate lecture and we commend him for it given Solidarism’s brief allotted time. My only objection to his talk came from his perception of the masses as uninterested in working for themselves and preferring to work for others. While self-employment always comes with an elevated risk, employment today is a comparable risk. The problem as I see it, isn’t the lack of desire on the part of most people to own, the problem is the red tape. After all, I am sure Dr. Krason would agree with Pope Pius XI that man works best on that which is his own.

We lament time made it impossible for a “Question and Answer” period between the speakers and the audience. That said, we are grateful to the Center for Catholic Studies for all the time and work they invested in the debate, as well as the meticulous and considerate manner this conference was managed from the onset. Under Dr. Varacalli’s leadership this Center is proving to offer some of the finest events I have ever attended. When Dr. Varacalli asked us to participate I knew it would be successful and all of us jumped right in.

Special thanks must be given to Thomas Storck for his intelligence, gracious support, activist spirit, and the incredible precedent he has bestowed on all of us.

Also, we must thank fellow distributist Jeremiah Bannister for the fantastic photographs.

I know our readers are interested if a transcript, audio or video recording of this event will be available. Yes, the event was recorded. However, please bear with us as we are praying and hoping this recording will be accessible for all of you through our website. I will keep everyone informed through our email list when and if this becomes available.

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Thomas Storck Podcasts

I recently uploaded a three-part interview with Mr. Thomas Storck. They are podcasts. While the quality may not be the best, this is something we are working on. We will also be working on podcasting the interview with Dale Ahlquist. Hopefully I am not naive to say "all in due time."

The links to the podcast archive section will direct you to them. 

NOTE: There were certain difficulties. I found that if one clicks on the title of the particular podcast rather than the generic podcast image, it worked fine. If this still doesn't resolve the problem, I'll have to work on figuring it out.

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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.

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