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Bubba_Switzler
Guest
Last week I outlined the views of distributists, identifying four areas of thought in which they offer some wisdom: 1) objections to the divorce of economics and ethics, 2) objections to the collusion of large business and government and the resultant concentration of power, 3) advocacy for entrepreneurism and widely distributed wealth, and 4) objections to the welfare state and its effects on the citizen’s relationship to government. Sadly, distributist thinkers don’t stop at these solid insights. They offer concrete solutions to these social problems—solutions which betray grave misunderstandings of economics and even theology.
Distributists tend to deny that economics is a real mode of knowledge in any sense. They scoff at the notion that there might be predictive laws of economic behavior, such as supply and demand. But if there are such predictive laws, then it behooves us understand them. Distributists want third parties, such as governments or guilds, to arbitrarily set wages and prices according to abstract notions of justice. Economics teaches us that there will be real-world consequences to such interference. Predictive laws inform us what they will likely be. (For instance, raise wages and prices, and you will reduce demand, and hence employment.) Many distributists react to this information not by calculating the costs and benefits of such a predictable outcome, but instead by railing against “injustice.” An “unjust” wage, for instance, is any salary that’s insufficient to support a family — even a large one. So they wish to outlaw “unjust” wages. How would employers respond to such a move? Economics gives us the answer: they would either fire workers whose labor was not productive enough to justify such a wage, or else they would jack up prices to cover the extra cost. Who would pay those new, inflated prices? Ordinary workers, whose cost of living would soar—thus forcing another government-mandated rise in the “living wage.” And so on, ad infinitum.
intercollegiatereview.com/index.php/2013/07/29/whats-right-with-distributism/Distributists also tend to dismiss free market arguments as products of the secular Enlightenment, unaware that they were in fact developed not just by Christians, but by priests. Spanish Scholastics of the sixteenth century—Jesuits and Dominicans of impeccable orthodoxy—were the real forerunners of thinkers such as Adam Smith. Sadly, these pioneers’ writings are little known outside the circles of a few economic historians. The Acton Institute’s Journal of Markets and Morality has been publishing translations of their works for years, however, and a good summary of many of their positions can be found in Alejandro Chafuen’s Faith and Liberty: The Economic Thought of the Late Scholastics.
intercollegiatereview.com/index.php/2013/08/05/whats-wrong-with-distributism/