Posts Tagged invisible hand

Free Markets as a Fruit of the Gospel

fruit merchantIn our discussions of the pros and cons of various socio-economic models, Christians have a common tendency to forget what should be our more fundamental aim: spreading the message of salvation through Jesus Christ and living as Christ would have us live.

In a recent post, Doug Wilson helps us remember (HT), noting that we should stop critiquing such systems in and of themselves—i.e. separated from the reality of sin and the project of salvation—and focus instead on how they impact each individual when it comes to realizing the life-giving freedom Christ has made possible.

As Wilson explains it:

I have written many times that free markets are for a free people, and that only a free people can sustain them. But slaves to sin cannot be a free people. And the only way to be liberated from slavery to sin is through the gospel that brings new life.

Another problem is that when slaves to sin spiral down into the civic slavery that is their natural civic condition, their masters will also be slaves to sin, albeit usually somewhat shrewder — at least for a short while. At some point the whole thing blows up for everybody, but the bottom line is that sin is the fundamental set of chains. You cannot hope to be enslaved by them, and yet be free in any sense that matters anywhere else.

Hayek, Friedman, and von Mises cannot keep people loving the freedom of markets any more than the wisest geologist who ever lived could have kept Cain from hitting Abel with that rock. Knowledge of the world is not the same thing as knowledge of the human heart.

…Other foolish observers within the Christian tradition have seen that this is true, and concluded that the problem lies with Hayek, et al. “We need to have values other than free market values, etc.” This is to say that since sinners cannot produce the fruit of the Spirit, we need to haul out the chains of compassionate statism. Make ‘em do compassionate stuff and everything….

There is no salvation without a savior, and Jesus is the only savior. And how will they hear without a preacher? What we need is the gospel, what we need is a reformation, what we need is revival.

But although our political systems and economic models can’t produce revival by themselves, they do make a difference in how we interact and what we pursue. This is where our discussions need to begin.

The damaging impacts of top-down control are a bit easier for Christians to understand when we observe various governments shutting down churches and persecuting Christians in the streets on the basis of their faith, but what about when the government shuts down, redirects, or prohibits a variety of our day-to-day economic activities? When the government seizes an industry or moves money around to fund Entrepreneur X instead of Entrepreneur Y, What might such a government be preventing or distorting in terms of Christian initiative, creativity, and collaboration? Are we always to assume the Bureaucrat Z is the preferred oracle of Jehovah?

Fundamentally, we must reject the materialistic, deterministic worldviews of self-anointed economic planners of all varieties. If Christians are serious about spreading the truth, we should go about offering the Read the rest of this entry »

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The Magic of Regression: Following the Leader in Reverse

I recently posted my thoughts on Hans Rosling’s TED Talk, “The Magic of the Washing Machine,” which does a fine job of illustrating how progress can feed progress, and how human ingenuity is at the heart of it.

In my most recent post at Common Sense Concept, I focus on a different phenomenon: our tendency to greet such progress with opposition:

If humans are really the “ultimate resource” as Julian Simon suggested, it’s no wonder that the continuous maximization of human time and freedom will lead us toward ever-increasing output. Yet just as the fruits of industrialization and widespread innovation seem to be evidence of some kind of “magic,” various opposing forces seem intent on demonstrating their own variety of bizarre tricks. Alas, just as society seems to progress, we exhibit a strange tendency toward regress.

Yet not all opposition leads to regress. We should indeed meet each new technological innovation with plenty of skepticism and criticism. In some sense, that’s what being a conservative is all about. So how do we properly discern? How do we know what will truly lead to progress and what will actually push us backwards?

We don’t. At least not always — which is why I think the more important question has to do with who is doing the discerning rather than what we are discerning about. As Thomas Sowell says, and as I quote quite frequently, “The most basic question is not what is best, but who shall decide what is best.”

Here’s more from the post:

We will always have error, and we will always have disagreement, particularly in the realm of progress. But when we as individuals truly screw up, the consequences come quickly. When disruption comes, we humans are pretty good at responding and adapting. Nobody likes to look stupid and nobody prefers to be on the “wrong side of progress.” In a society guided by self-interest a la Adam Smith, the invisible hand typically spanks us when we need it, and progress gets back on track accordingly.

So what happens when the central planners mess up? What happens when lofty bureaucrats and paper-pushers start making decisions about what light bulbs we use, what toilets we flush, and how much salt goes in our French fries?

An inescapable, large-scale game of Read the rest of this entry »

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The Economic Spanking: Harsh Discipline from the Invisible Hand

The Invisible Hand

In my recent post at Ethika Politika, I argue that my generation is not so much addicted to wealth as it is spoiled by it.

Here’s an excerpt:

We take seven years to complete our bachelor’s degrees, and when we’re finally finished, we complain about our debt. We specialize in fields like literature and “diversity studies” and then complain about the lack of high-paying jobs. We live with Mom and Dad till we’re 30, only so we can have enough cash to buy the newest gadgets and clothes. All of this delayed development – all of this self-absorbed, childish dilly-dallying – has led to an unproductive and entitled generation.

My proposal? A good old-fashioned “thump in the rump” from the invisible hand:

In our current economy, we still have plenty of time to choose lesser punishments – to get serious about our goals, to reexamine our futures, to readjust our attitudes, to pursue new careers. But at some point, drastic misbehavior will require drastic measures. And when it comes to my generation’s defiant, entitled, know-it-all mentality, I fear that we will reject the milder forms of discipline in hopes that we can escape any discomfort altogether.

To read the full article, click here.

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The Empathic Civilization: Self-Interest and the Empathic Drive

The Royal Society for the encouragement of the Arts recently released a video titled “The Empathic Civilisation.” The video is narrated by social commentator Jeremy Rifkin, who has released a book by the same name.

You can watch the video here:

The main gist of the video is that we are soft-wired for empathy, and thus, if we are to construct an “empathic civilization,” we must construct systems that properly leverage this key human component.

Rifkin’s rant is a long one, and there is much to enjoy, much to agree with, and much to disagree with, but the primary thing that rubs me wrong is his suggestion that empathy and self-interest are mutually exclusive.

He suggests that we are not soft-wired for aggression, violence, self-interest, and utilitarianism, but rather for sociability, attachment, affection, companionship. Aside from the audacity of making such a claim about the human disposition, I’m not sure why he lumps self-interest (or even utilitarianism) in with aggression and violence. If we are soft-wired for empathy, and if we find pleasure and reward in discovering Read the rest of this entry »

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