No…it IS true. See my response to #3
- Price would be regulated by intermediary (neither state not private) organizations.
Price controls, that do not reflect
supply and demand, whether imposed by government or intermediary, are dangerous and artificial. They lead to economic collapse.
“3.It (Distributism) fails to account for basic concepts like supply and demand.”
Let’s say that the happy little kingdom of Elbonia (A distributist economy) is home to three coo coo clock makers. They make the best coo coo clocks in the world and sell all they can make. One day a large company in China begins selling electric coo coo clocks at a much lower price. The Elbonian clock makers cannot compete. Their only alternative is to form a company, seek investment (Capitalism), build a factory and out produce the Chinese…or go broke.
Now the king of Elbonia will not allow a corporation to form in his country. Strictly distributist.remember. So the king or the intermediary offers the clock makers three nice little farms. Since the clock makers know nothing about farming they all fail to produce anything and are on the verge of starvation. Sadly, they leave Elbonia and move to the neighboring country of Alagash, where they take jobs with at a large service center that performs warranty repairs cheap Chinese coo coo clocks.
Distributism fails to consider supply and demand as well as specialization.
- No one who owns vast amounts of wealth would. Distributism does not impede success, although you are correct that it prefers orderly advancement to risk-taking, something which would indisputably be recognized as good in non-economic matters.
The goal of distributism is equality.
Hilaire Belloc advocated a “differential tax” in order to progressively move towards a distributist society. (Socialistic)
Belloc goes so far as to say that “the aim of all sound social reform” should be “the wider distribution of property” and that the differential tax is “
a tax specially aimed against excessive accumulation.” (Success)
I would point out that a differential tax stifles progress and holds society back. It may cause a more even distribution of property, but the “excessive accumulation” that Belloc wishes to prevent is the motivation of entrepreneurs.
- Individual oil-wells can sell to individual gas stations (rough overview of the process). I fail to see how antibiotics are dependent on capitalism. Doctors have been trying to figure out how to treat patients better since Hippocrates.
Should not the doctor be rewarded for all his years of training and research work that leads to the discovery of an antibody?
Distributism says no.
The would-be innovator has two options:
- he can put in a lot of effort and create some new thing that will benefit society, knowing that he will not be allowed to accumulate too much additional wealth as a result of his additional toil, or
- he can continue in the labor that he already does without being an innovator and accumulate roughly the same amount of wealth that he would under the first choice as well.
Human nature being what it is…the would-be innovator will always choose the second option.
- Medieval towns were effectively distributist. They got along fine for hundreds of years, and actually had greater practical opportunities for social advancement than the modern day.
I agree that in medieval times, distributism was successful. That lasted until the Industrial Revolution (and Capitalism) raised the standard of living for all…world wide.