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Review: Angus Sibley's "The 'Poisoned Spring' of Economic Libertarianism
Angus Sibley’s new book “The ‘Poisoned Spring’ of Economic Libertarianism,” recently published by Pax Romana, deals with some of the theoretical issues that have emerged in current debates about America’s long-term fiscal health. Specifically, Sibley argues that the “Austrian School” of economics has come to dominate conservative arguments about the economy and that this school could not be more antithetical to the traditional social teachings of the Catholic Church.
Sibley, whose career in investment culminated with a seat on the London Stock Exchange, neatly combines his technical knowledge with his deep, and almost devotional, readings of papal social encyclicals from Leo XIII’s Rerum Novarum, through Pius XI’s Quadragesimo Anno, to Blessed Pope John Paul II’s Centesimus Annus. He puts the principal writers of the Austrian School, Ludwig von Mises, Friedrich von Hayek, and some of their American devotees, under the microscope of both his expertise and his faith, and they do not look very convincing by the time he is through with them.
It doesn’t hurt that Sibley’s writing displays a great knack for finding the kind of homey analogy that explains complex economic positions. For example, he writes, “One may compare an economy with the series-wound DC motor, a type of electric motor traditionally used to drive streetcars and subway trains; a robust and reliable workhorse that has been in common use worldwide, in transport and industry, for well over a century. But this machine, when in the workshop for overhaul or test, must never be allowed to run free on full power. For, unattached to a vehicle with its restraining inertia, it will accelerate without limit until its center flies apart. Nobody wants an accident like that with a traction-motor weighing a ton or two!...The self-destruction of the unrestrained electric motor does not mean that the motor is defective. It simply means that it cannot function properly without restraining inertia. Likewise, the malfunctions of the deregulated economy do not prove that capitalism is fundamentally rotten. They prove that capitalism needs restraints and is self-destructive without them.”
Sibley explores the philosophic roots of the Austrian School’s economic theories in Enlightenment Rationalism. Mises’ “intransigent individualism” is, according to Sibley, rooted not only in his fierce concern to denounce any “external” constraints upon the freedom of the individual, but also in his “peculiar” belief that God does not act, because only discontented beings act. This individualism is obviously a part of the “dictatorship of relativism” famously warned about by then-Cardinal Josef Ratzinger on the eve of his election as Pope, rooted in a completely subjective set of standards, not for society, which would be bad, but for the individual herself. The belief that God does not act may comport with Enlightenment Deism but it does not fit any recognizable Judeo-Christian understanding of Providence or Grace. As for the idea that action is reserved to the discontented, how would Mises explain the popularity of desserts? Seriously, though, Sibley has shown how these economists contradict Catholic social thought at a foundational level.
The super-structure the Austrians built upon that foundation is likewise, and unsurprisingly, anti-Catholic. They treat labor as a commodity, something Blessed Pope John Paul II specifically condemned. They radically misunderstand natural law, seeing it not as a revelation of an external, normative, and binding code of conduct, but as the mere sum of individual human ambitions. There is no “common good” in this worldview, only a congeries of individual goods lumped together. The market and its operations cannot be described as “just” or “unjust” – only political interference in the impersonal workings of the market are unjust. Sibley notes that Hayek stated we should “gain from not treating one another as neighbors.” For the Austrian school, man is autonomous and singular, not social, in nature, so natural law as the Church understands it would have nothing to say about society, economics or culture. “This attitude denies even the possibility of cultivating the art of good government,” Sibley writes. “Should we be surprised to find that certain countries, governed by political parties which have perversely adopted the ideology of contempt for the state, are badly governed?”
Anytime, political or economic developments are “freed” from ethical concerns, of course, you do not have to be a Catholic to be alarmed. Nor is it enough to blame all bad results on bad apples within the business community: Structural problems can result in evil consequences too. “Whereas in the past, businesses were often content to earn adequate profits, today they go for maximum possible profits. They are therefore less willing, or able to treat their workers decently and to act in the public interest, rather than solely for their own narrow advantage. This is easily explained. Today, shares in stock-exchange listed companies are held largely by fund managers who compete very actively with each other to achieve maximum returns. These powerful investors press the managements of the companies to maximize their profits. Companies that fail to do so fall out of favor in the market; their shares sink to low prices, which attract takeover bids.” A good development like the growth in stock markets can lead to bitter fruit if unchecked by the kinds of “extraneous” ethical concerns that may limit the personal freedom of investors and business owners, but which make for decent wages for a company’s workers and a safe environment for investors. After all, the unregulated stock market achieved “maximum” misery in the past few years for most investors because of the built-in incentives for greed that benefited the few.
Sibley’s book provides a treasure trove of relevant Jewish and Catholic teachings that uphold a more noble vision of the human vocation. He quotes a passage from Exodus 23:10-11: “For six years will you sow your land and gather its produce, but in the seventh year you will let it lie fallow and forgo all produce from it, so that those of your people who are poor can take food from it and the wild animals eat what they have left.” It would be funny, if it were not so sad, that Jews living centuries ago had a more advanced sense of social and ecological awareness than contemporary Tea Partyers! Sibley unearths a masterful quote from Henri-Dominique Lacordaire, OP, who argued against the industrialists who wanted laborers to work on Sundays: “Do you wish to rupture the equilibrium of human activity, to bring about the degradation of souls, the oppression of the weak, the greed of all and the misery of the majority? Is that what you want? You have only to disregard the law of work as it was enacted in the act of creation; increase temporal work, forcibly diminish spiritual work; abandon man to his greed and to the will of his masters; do that, and you can be sure of reaping in a generation the fruit that will satisfy you, if you love the moral and physical degradation of humanity.” Pray, God, that such strong and prophetic words will embolden the pastors of our day who face similar threats to the dignity of human labor and of human laborers.
I do have one criticism of the text. Sibley has a section where he criticizes Sir Isaiah Berlin and his commitment to “negative freedom,” that is “freedom from.” Sibley believes that only a “positive freedom” or a “freedom for” is compatible with Catholic social thought. I think Sibley is, ultimately, right. But, the story is exceedingly complicated, not least by the fact that the Second Vatican Council’s Decree on Religious Liberty includes a section, largely penned by the American theologian John Courtney Murray, S.J., and supported by the American bishops at Vatican II, that commends the kind of immunity from government influence found in the Bill of Rights, and which Berlin acknowledged as the essence of his conception of negative liberty. Additionally, it should be remembered that although he shared the Enlightenment instincts taken to extreme degrees by Mises and Hayek, it is an injustice to the subtle mind of Berlin to lump him with the likes of these: He has spent too much time studying Hamann and Herder, and especially Vico, to espouse the stilted, unreal views that dominate the Austrians. Berlin’s liberalism was made of sterner stuff because he had engaged the critics of the Enlightenment, he did not run away from them in a huff. His profound historical sensibility was the antithesis of Mises and Hayek.
Recently, as regular readers know, I have been attacking what I believe are the profoundly un-Christian views of Ayn Rand and her libertarian heirs. Some have objected that this attack is unfair, arguing that part of Rand’s philosophy can be saved, and pointed to Hayek and Mises as better defenders of the libertarian creed. Sibley’s book is the answer to that objection. He does not go so far as the National Review did when it reviewed Rand’s work: “From almost any page of Atlas Shrugged, a voice can be heard, from painful necessity, commanding: ‘To the gas chambers — go!’” But, he has devastated the Austrians showing that, for all their efforts to condemn the “statism” they hated, they share too many materialist, anti-Christian, monistic characteristics with Marxism to give their attacks on Marxism much credence. The world they desire is, from a human point of view, certainly from a Catholic and Christian point of view, little different from the world they loathe: To be enslaved to the impersonal forces of the market is, in the final analysis, just as inhumane as being enslaved by the state or the party. Chains are chains and the Austrians and their American followers are not preaching authrnetic human freedom but its counterfeit.
Sibley's is an important book and I highly recommend it both for its ideas and for its erudition. It is easy to read but it is also important to read. The link to Amazon is at the top of the page.






Adding to Mr. Winters'
Adding to Mr. Winters' comments about matters getting "exceedingly complicated" (and I would add, apparently impossible to reconcile) when one compares the Second Vatican Council’s Decree on Religious Liberty, to the perennial teachings of the Catholic Church since Her earliest times, see a thorough historical comparison at http://www.scribd.com/doc/46116957
Considering how badly the
Considering how badly the poor are going to do under a bankrupt Federal government, there's a lot to be said for economic libertarianism. And yes, our present predicament shows it is either/or. Welfare statism induces economic dislocations that grow, leading to an inability to pay the bills. Economic liberty is needed for the same reason as spiritual liberty.
Thanks for the article. For
Thanks for the article.
For info on people using voluntary Libertarian tools on similar and other issues, please see http://www.Libertarian-International.org , the non-partisan Libertarian International Organization.
I am a practicing Catholic,
I am a practicing Catholic, and an active libertarian philosopher. And I would offer an alternative view of libertarianism.
Austrian economics and libertarianism that rises from it, are explicitly, and somewhat intentionally comprised of catholic, protestant, and jewish teachings because libertarians rely expressly on the teachings of natural law. However, they also the French (catholic) rational philosophical program as a conceptual error that gave rise to Marxism's murderous and economically destructive philosophy. Instead, the anglo empirical program was morally christian at it's core, and modern in the sense that it adopted the protestant innovations that rule of law, competition, science, and hard work would create a better world, and therefore they were doing god's work.
Libertarian philosophy consists of two wings:
1) Classical Liberal (Protestant Empirical) – Hayek/Jefferson
a) Constitutionalism and Rule of law, b) Small State, c) Cautious Redistribution that does not create a dependency d) conservative monetary policy. e) Privatization f) a dependence on empirical institutions. (This is the important part that is lost on everyone – libertarians included. It is an empirical system of government.) and g) Meritocratic rotation of elites through demonstrated service to consumers in the market (rather than politics) and h) Multiple houses of government that reflect the class structure of society.
The Classical Liberal wing of Libertarianism advocates an empirical method of government whose purpose is to prevent the rise of bureaucracy and systemic risk. It is effectively a restatement of european post-aristocratic philosophy in contemporary terms. ie: it has the structure of formal institutions we call government.
The classical liberal christian program is a moral social program for the INDUSTRIAL and post-feudal, commercial age. It acknowledges a post-agrarian, dynamic economy where constant adaptation is necessary to create prosperity for all members of a society.
2) Anarchist (Jewish Moral) – Rothbard/Rand
a) No state. b) No redistribution c) No community d) Ideological Individualism. e) gold standard f) Absolute propertarianism.
Anarchism is a form of rebellion against the status quo. It is effectively a restatement of the jewish moral code in modern economic terms. In that sense it is a non-empirical, moral, non-institutional form of government. ie: it has the structure of a religion.
The jewish wing is indeed anti-social from the church's perspective, and the source of most anti-christian doctrine. It is hyper individualist and morally absolutist. The christian wing by contrast simply states that economic productivity requires individual control of property in order to provide the greatest opportunity for prosperity to all members of society. The jewish wing is a system of rebellion against government - a continuation of ancient jewish philosophy. The Christian is not. It simply states that economically we must act individually in order to achieve the optimum ends, and that we must not allow a totalitarian (feudal) regime to take over the government. That is the difference between the two wings of libertarianism. A difference that is not distinguishable by people outside of the movement.
The Christian Classical Liberal wing has adopted many of the Jewish Anarchist wing's strategies simply because the secular progressive program has succeeded in destroying the christian moral code, and religion in general, in an attempt to create a secular 'religion' that we in Libertarianism call "Democratic Socialist, Secular, Humanism" in which people place faith in the abstract entity called 'the state' rather than in the abstract entity that we call 'god'. Libertarians see this as an attempt to recreate the authoritarian feudal social and economic system because it is simply easier to understand, and conforms to ancient doctrines. Libertarians see Marxism and Secularism as 'luddite' aspirations that would be easier to understand, but materially worse for human beings to live under.
Personally, I think the unconscious program that is at play, is that Catholics cannot understand the post-feudal world because their doctrine does not incorporate it - and therefore Catholics are blind to the threat of socialism, and blind to the innovations of libertarianism.
It may help if one understands Libertarian Strategy:
1) Natural law: Libertarians have modernized Natural Law and rely upon the teachings of natural law. They see themselves attempting to restore natural law as the underlying philosophical doctrine for political decisions. (Rothbard's History)
2) Empirical first, then Moral Second: Libertarians are economically empirical first, and moral second. This means that we cannot know what moral decisions to make unless we understand what actually happens in society by measuring economic activity. The strategy is to first identify the mechanical processes by which economies operate, and then make use of that for the common good. THis is counter to the church's teachings of absolute adherence to doctrines that were developed in the agrarian, pre-industrial age.
It is perhaps important to understand that a feudal agrarian economy is fairly simple to understand. But that the modern industrial economy includes such a vast division of labor and such constantly changing price signals that tell us what we need to do, that it cannot be 'perceived' and understood directly by our senses, and that we must rely on measurements and tools and mathematics to understand the economic world around us. The primary focus of libertarian thought is in the 'rules needed to cooperate in vast numbers under a division of labor'. Not the "rules needed to prevent abuse of the lower classes by the feudal landlords." So, the church has not seen and incorporated these new rules, or the new objective of moral rules.
This is the lesson of the Anglo Empirical Classical Liberal political movement: as the world became faster and more complex it needed to rely upon empirical perceptions of the world instead of sensory perceptions of the world, and the church did not accomodate that change in need. The church doctrines are moral, spiritual, narrative and analogistic. ANd this structure of knowledge is valuable when there is little change to society over millennia, and especially when the masses are illiterate and uninformed. But empirical doctrines are easier to change on a momentary basis because they can be rationally rather than analogistically articulated. That means that they can be rearranged more easily and quickly.
3) Selective Discourse: Libertarians simply do not DISCUSS the service of the poor just as progressives do not discuss the needs of the middle class, or the military class. It only serves to justify the opposition's position. That does not mean that libertarians do not consider the poor. They simply choose different MEANS by which to serve them. In particular, they believe (rightly) that the poor's votes can be sold to the highest bidder so that the state may obtain political power with which to enslave the productive middle classes. This is simply true.
4) Libertarians understand that economically, the poor are best served by living in a productive economy. This has been born out by the data in incontrovertible terms. It is simply true that a productive economy does more for the poor than any other doctrine. The poor are best served indirectly.
5) Abandonment by the church: The church has abandoned it's role as educator, so there is no longer a vehicle for teaching the poor how to be good christians in sufficient numbers to counter the appeal of secular communism and secular democratic socialism, both of which seek to eliminate the church from society - an arguably have done so. LIbertarians are trying to create a body of thought that reinstates the moral structure of society without having to rely on a church that has abandoned the civilization.
6) The Dynamic Versus Static Economy: The church's doctrines were developed in the agrarian period and matured under feudalism. Under that form of economy, the lower classes need political representation, as well as moral teaching. it is a fairly static, and slow moving economy. In the industrial economy, the opposite is true: there is no 'static form of production' to compete against. This is simply true, and is universal in the data. reallocation of control, capital and land is rapid and constant even for the most large and powerful companies.
7) Filling the Vacuum. Since the industrial and darwinian revolutions, the church has abandoned european civilization by abandoning it's role as the cult of european civilization. It has remained mired in it's mystical agrarian past, rather than reform itself, it has become the church of the oppressed poor in the developing world at the expense of the european and anglo modern world.
8) It is all well and good that Catholicism represent the needs of the poor when the church is effectively a competitor to the aristocracy. It is not all well and good that Catholicism fail to incorporate the needs of the productive middle classes in competition against the totalitarian programs of socialism and communism, which would not only seek to undermine the economy, but to undermine the christian moral code, and institute the totalitarianism that the church defended the people against in antiquity.
This is the church's failing. It has failed our civilization which is why it is being abandoned in the developed world. Not because it is necessarily wrong. but because the church has become irrelevant by not understanding that the feudal aristocracy has ceased to exist, and with it, the purpose of the CAtholic church's function as the teacher of moral social doctrine.
So, from this point of view libertarians see themselves as compensating for the failure of the church to modernize, and the consequential abandonment of modern civilization by the church, and it's focus on the developing world that maintains feudal property relationships - especially south american and africa - rather than modernizing so that it serves the needs of post feudal, democratic and industrial civilization.
If anything, Libertarians are trying to rescue the church and society from it's failure to acknowledge the change in the structure of society in the developed world.
This topic is worthy of a book length treatment, but I do not have time for it.
I thank, Mr. Doolittle for
I thank, Mr. Doolittle for very worthy comment!
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