But, once again, where is the “unregulated laissez-faire market”? It is a myth, even if peddled by some.
I did not say we
have an unregulated laissez-faire market, I said I am opposed to that. We have regulations. The problem is the regulatory agencies are essentially owned by the very industries that they were intended to regulate. Where they are not, they are underfunded to the point of ineffectiveness. Our regulations
favor predatory capitalism over the common good.
However much some others may sneer and jeer at free enterprise, the strictures against the Welfare State are real in Catholic social teaching because fallen human nature is real.
I agree that fallen human nature is real. “Economic activity… is to be exercised within the limits of the moral order, in keeping with social justice so as to correspond to God’s plan for man.” Even so:
Even if it does not contradict the provisions of civil law, any form of unjustly taking and keeping the property of others is against the seventh commandment: thus, deliberate retention of goods lent or of objects lost;
business fraud; paying unjust wages; forcing up prices by taking advantage of the ignorance or hardship of another.
The following are also morally illicit:
speculation in which one contrives to manipulate the price of goods artificially in order to gain an advantage to the detriment of others; corruption in which one influences the judgment of those who must make decisions according to law; appropriation and use for private purposes of the common goods of an enterprise; work poorly done;
tax evasion; forgery of checks and invoices; excessive expenses and waste. Willfully damaging private or public property
is contrary to the moral law and requires reparation. CCC 2409
Yes, fallen human nature is real, yet I would argue we’ve seen far more of the above than any excesses of “the Welfare State.”
I will look at Dr. Luckey’s writings in more detail when I have time. As much as I would like to surf and write all day, I can’t right now. Even so, the first article I saw posted there included this:
"…the Keynesian-Obamaites do not understand that people learn from previous events. The most recent one is the housing boom, which started this economic downturn in the first place. The Federal Reserve, to stimulate interest-sensitive industries like the housing market, pumped money into the economy, forcing interest rates to an artificial low…
…In addition to this government-caused disaster, the Federal government passed the Community Reinvestment Act, which pressured banks to give housing loans to those who were hardly credit-worthy (in English, this means to those who probably could not afford to pay back the money). Banks, with the help of government corporations like Fannie Mae and Freddie Mac, lost tons of money because of defaults."
The problem with this is it begins one step too late in the story of the housing bubble and misrepresents the nature of the agencies involved. It is easy to consider the Fed, Fannie, and Freddie “government corporations.” This is no accident. Even I do this, though rarely, and usually in a decaffeinated state. It is true that Fannie and Freddie have now been taken over by the government, but they were not government run
then.
All three of these were created, as privately owned, for-profit corporations, by the government for the
sole benefit of the banks. Think about it: Fannie and Freddie were publicly traded, had CEOs, failed to declare profits, were fined by government agencies, made campaign contributions (primarily to Republicans) &c. &c.
So Luckey has left out the issue of why the Fed (also a private, for-profit bank) wanted to stimulate the housing market. The answer is, Goldman Sachs and other Wall Street firms had decided to inflate a bubble and make a killing, specifically through selling mortgage-backed securites
and credit default swaps. Essentially, they were setting up securities that were
designed to fail, betting both sides of the game, and making money coming and going.
(continued)