Saturday, September 19, 2009
An Alternative Viewpoint
A local guy is hosting a discussion on Austrian economics and the current financial crisis, and he invited me to come and sort of keep things rolling smoothly. The common element is that everybody at this gathering is a Christian who doesn't want the government taking more of his money. (I'm pretty sure it will be all men.) Anyway, he has been emailing reading material to everybody to prepare for it, and one of the guys passed along his review of Hazlitt's Economics in One Lesson. The conclusion is something I heard quite a bit (in various forms) while at Hillsdale College, so I will have to think about the best way to address these concerns.
To sum up, I really enjoyed and profited from this book, and plan to read further on this topic from other writers of the Austrian School. That said, I don't want to hold forth a generally glowing review without acknowledging that these guys do have their own blind spots and that those are not insignificant. As a Christian, I am bound to affirm that the fear of the Lord is the beginning of all knowledge and wisdom (Proverbs 1:7; 9:10; 15:33). That includes wisdom and knowledge in the area of economics. Through the mechanism of common grace, I believe that the Austrian Economists are generally right-on in their astute observations of how the economic aspect of the world works and are generally far less deluded than other competing schools of thought on the matter. However, their essentially secular viewpoint does leave them open to certain deceptions and shortcomings, the chief of these being the fundamental assumption that man is basically good and that his greatest problem is not sin but ignorance. In addition, I must also bear witness that true and enduring freedom and liberty—in all their various forms, including economic—are blessings that are only found in Jesus Christ. Any attempts to idolize individual freedom and liberty by abstracting them and attempting to construct a comprehensive worldview around them (e.g. Ayn Rand, a noted favorite of both the Austrian Economists and their Libertarian political chums) is just as much doomed to frustration, failure and wretchedness as any other false ideology.
Comments:
This seems like a softball. First, Austrians don't presume that all people are good so that's a weak objection to claim that Austrians think this.
Rather, Austrians recognize that the damage bad people can do is determined in part by the institutional arrangement in which everyone operates. If some folks are bad, an institutional arrangement where some is permitted to do to others what the others are not permitted to do to the some, then the bad people will seek to become the some and the good will find themselves being victimized as others. Any Christian should oppose that.
Finally, Austrian economics is entirely consistent with Christianity. There is no claim that one can derive from either that is incompatible with the other.
Rather, Austrians recognize that the damage bad people can do is determined in part by the institutional arrangement in which everyone operates. If some folks are bad, an institutional arrangement where some is permitted to do to others what the others are not permitted to do to the some, then the bad people will seek to become the some and the good will find themselves being victimized as others. Any Christian should oppose that.
Finally, Austrian economics is entirely consistent with Christianity. There is no claim that one can derive from either that is incompatible with the other.
James: "If some folks are bad, an institutional arrangement where some is permitted to do to others what the others are not permitted to do to the some, then the bad people will seek to become the some and the good will find themselves being victimized as others."
great point. Maybe focus on how the idea of the State is itself utopian, assuming that the institutions will cause people to behave. I hate to put it in a utilitarian point of view, but maybe argue that more harm is done through institutionalized theft (The State) then when people are free.
great point. Maybe focus on how the idea of the State is itself utopian, assuming that the institutions will cause people to behave. I hate to put it in a utilitarian point of view, but maybe argue that more harm is done through institutionalized theft (The State) then when people are free.
Unless that person is under 21 years old, I suggest turning and running the other way quickly as the best response. And I say that as a Christian, anarchist and Austrian-sympathizer.
# posted by 
: September 19, 2009 at 7:32 PM
: September 19, 2009 at 7:32 PM
^ What Anon said but if you persist perhaps a link to the Acton Institute which can be anti-libertarian at times but jives with most of Austro-libertarian sensibilities. I particularly enjoy this essay, Davos Capitalism. Also the essay is a good approach to conspiracy theorists in that it shows how technocrats and politicians can be earnest in their actions (and arrogance) and yet pernicious in the outcomes without necessarily being part of a nefarious cabal.
I'm going to have to say that the "concerns" are either false or inconsequential.
"the chief of these being the fundamental assumption that man is basically good and that his greatest problem is not sin but ignorance."
Who makes this assumption? Where? In the Road to Serfdom, Hayek certainly seems to believe that sin (or its cousin "bad") is a rather serious social problem.
"I must also bear witness that true and enduring freedom and liberty—in all their various forms, including economic—are blessings that are only found in Jesus Christ."
What does this change? Of course "true and enduring freedom and liberty" are blessings only found in Jesus. But, that doesn't change the fact that a system that respects property rights and allows the free exercise of these property rights results in better outcomes than systems that interfere with the same.
"Any attempts to idolize individual freedom and liberty by abstracting them and attempting to construct a comprehensive worldview around them (e.g. Ayn Rand, a noted favorite of both the Austrian Economists and their Libertarian political chums) is just as much doomed to frustration, failure and wretchedness as any other false ideology."
I agree that liberty cannot take the place of God - but I also believe that a proper respect for God and His Design leads to libertarianism. From a Christian perspective, we should not "idolize" good works - but that doesn't mean that we shouldn't endorse and encourage them.
I'm not sure if it's a breach of blog-iquette... But, I deal with some of the Scriptural points here: http://engelhardtlm1.livejournal.com/188752.html
My case is far from perfect, but I think it deals with some of the common Scriptural objections to libertarianism.
"the chief of these being the fundamental assumption that man is basically good and that his greatest problem is not sin but ignorance."
Who makes this assumption? Where? In the Road to Serfdom, Hayek certainly seems to believe that sin (or its cousin "bad") is a rather serious social problem.
"I must also bear witness that true and enduring freedom and liberty—in all their various forms, including economic—are blessings that are only found in Jesus Christ."
What does this change? Of course "true and enduring freedom and liberty" are blessings only found in Jesus. But, that doesn't change the fact that a system that respects property rights and allows the free exercise of these property rights results in better outcomes than systems that interfere with the same.
"Any attempts to idolize individual freedom and liberty by abstracting them and attempting to construct a comprehensive worldview around them (e.g. Ayn Rand, a noted favorite of both the Austrian Economists and their Libertarian political chums) is just as much doomed to frustration, failure and wretchedness as any other false ideology."
I agree that liberty cannot take the place of God - but I also believe that a proper respect for God and His Design leads to libertarianism. From a Christian perspective, we should not "idolize" good works - but that doesn't mean that we shouldn't endorse and encourage them.
I'm not sure if it's a breach of blog-iquette... But, I deal with some of the Scriptural points here: http://engelhardtlm1.livejournal.com/188752.html
My case is far from perfect, but I think it deals with some of the common Scriptural objections to libertarianism.
"...man is basically good and that his greatest problem is not sin but ignorance."
Sounds like he is angling for the greed explanation of the financial crisis. Acton Institute places a great deal of emphasis on greed and immorality in finances. The problem is that when you look at what the investment bankers did, there is no indication of greed. They, and the bank regulators, thought they were reducing risk, not taking on greater risks out of greed. Even Greenspan applauded the use of derivatives to spread risk around.
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Sounds like he is angling for the greed explanation of the financial crisis. Acton Institute places a great deal of emphasis on greed and immorality in finances. The problem is that when you look at what the investment bankers did, there is no indication of greed. They, and the bank regulators, thought they were reducing risk, not taking on greater risks out of greed. Even Greenspan applauded the use of derivatives to spread risk around.
# posted by : September 21, 2009 at 5:25 PM
: September 21, 2009 at 5:25 PM Subscribe to Post Comments [Atom]
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