The Church of England is barking up the wrong tree
As a member of the Church of England I have been appalled by the stance that the Church takes towards the role of the state, attitudes which have been brought into sharp relief by recent events. The rights and wrongs of the Church’s particular actions over the protest camp at St Paul’s are too complex and, frankly, farcical to rehearse here. The Church’s response to the protesters – whilst ambiguous in some respects – has exhibited two consistent features (i) a scepticism towards capitalism and (ii) a high degree of support for state intervention in markets and provision of welfare.
The CofE – or at least its leadership – has exhibited the same sort of confused attitudes towards ‘capitalism’ that the protesters share. There is a deep contradiction at the heart of this mode of thinking. Classical liberals would argue that many of the negative outcomes of contemporary ‘capitalism’ are caused by the very high levels of state intervention. However, critics of the evidently terrible damage that this has wrought on society and upon the functions of the market economy fail to recognise this situation – instead arguing for more state intervention!
This applies especially to the Archbishop of Canterbury – a very learned man, no doubt, but a very deeply misled one. His support for the Robin Hood/Tobin Tax is both wrongheaded but also particularly dangerous. Robin Hood, after all, robbed from tax collectors and political figures to feed those impoverished by them. The Tobin Tax would merely rob from consumers of financial products such as pensioners as well as destroying jobs and economic activity. The attack on bankers’ and executives’ remuneration as ‘greedy’ is merely the commission of another sin – envy. Clergy should be preaching moderation and mutual respect, not urging on the mob.
It would be far more logical for the CofE to support civil society and free markets. From a consequentialist perspective, the most compelling reason for this is that these produce the optimal results. Free markets are also more appropriate from an ethical standpoint. The CofE is fond of pointing out that we need ‘morality’ and not just free markets. However, morality is best determined at an individual level and not by state diktat. In the absence of discretion – which is what state intervention delivers – we simply cannot make genuine moral choices. Moreover, free markets are entirely dependent upon personal morality such as honesty, trust and respect to function. Not only do markets require these virtues, but they also instil them. http://www.iea.org.uk/publications/research/economy-and-virtue Markets also teach the very Christian virtues of thrift and hard work.
From a theological perspective there is a convincing case against state intervention. The message of Christ is one of liberation and freedom, as Karl Popper reminds us in The Open Society and Its Enemies. The Gospels frequently stress Christ’s opposition to the oppressive role of established teaching and the power of state and theological authority. Sadly, Christian Socialism and ‘left’ Christianity have generally attracted much more attention and support. It should also be observed that Christ was put to death by the (Roman) state largely at the behest of the Sanhredin, the religious authorities. In answer to the question voiced by the protestors ‘What would Jesus do?’ I think we can safely answer that He would not recommend promoting an authoritarian state.
From the point of view of the Church itself, it stands to gain from a reduction of the role of the state. As an institution of civil society the Church is exactly the sort of institution that ought to be filling the gaps in welfare provision, education and social capital that would arise if the state were rolled back. Even non-Christian libertarians would – I suspect - prefer to see the Church fulfilling these roles rather than the state because the Church would be one choice among many rather than the monopolistic provision of the state. It may be coincidental, but there is a strong correlation between the decline in Church attendance and the growth of state intervention in welfare provision. Naturally, it would be a poor case to build Church attendance upon access to welfare, which is what occurs under the present system as parents attend churches to enrol their children in CofE schools. Instead the Church would be fulfilling its proper mission of charity and would cement its function as a vital social institution.
The CofE is, literally, a Catholic Church which contains many diverse congregations. As the Established Church it also has a very privileged relationship with the state. Whilst active membership is relatively low, the CofE still exercises a role within the Constitution and has an influential voice stemming from its historical and cultural importance. It is, therefore, beholden upon its senior clergy to exercise caution and moderation when expressing views regarding matters of political economy. More importantly, perhaps, certain prominent individuals need to think a lot more carefully about the consequences of state intervention before they advocate it, as well as the benefits of a freer society.
Best of the web, 11th November edition
Footballers and the Top 1%: Footballers' salaries have skyrocketed in recent decades, just as CEO salaries have. Yet few say that footballers are perpetrators of some unjust conspiracy. The fact is that markets are amoral; people "deserve" whatever others are willing to pay them.
Can we torch Time Magazine’s offices now?: Nick Cohen lays into an article in Time that equivocates about the firebombing of the offices of a French magazine that printed a cartoon of Muhammad.
Your Parents Were Richer Than You Are: I hate this kind of thing. Houses were cheaper back in the 1970s, but can you make a comparison about virtually anything else? My parents could not send a message to anybody they knew on the planet instantly from a mobile device; how much is that worth? If you can't put a price on the value of technology to people's lives, then you can't make meaningful comparisons of wealth across time.
Unleash the Entrepreneurs: Contrast the production-focused approach that this article takes to the credit-focused view that our government takes. Banks are not lending the money they have – is the solution to try to bypass them altogether ("credit easing"), or to make the business environment more attractive to investment? My money's on the latter.
What Do the French Really Believe About Capitalism?: Famously, the French disdain the "Anglo-Saxon model" of free markets and small government (doesn't bear much relation to the reality of the Anglo-Saxon world, sadly, but that's another story...). But what are they trying to get Italy and Greece to do? Cut the size of government and free up their markets through deregulation. Funny, that.
Osborne Has Had a Thatcher Handbag EU Moment Over Tobin Tax: This shouldn't be newsworthy, but it is so rare that it is. George Osborne rules Britain out of an EU Financial Transaction Tax at a meeting of EU finance ministers. Good for him. If the Eurozone wants to shoot itself in the foot by bringing one in for itself, the City of London can expect to welcome quite a few Frankfurt traders.
I Was Wrong, And So Are You: It turns out that all economists are biased depending on their political preferences. Is that surprising? There's a good discussion of the questions used to determine this in the comments here, especially of the question of whether an extra dollar is always more valuable to a poor person than a rich person.
Larry White’s “Talking Points” for Yesterday’s Reuters Hayek vs Keynes Debate: Fabulous, concise outline of Hayek's view of macroeconomics. Should be required reading for everybody interested in the mess we're in.
Prohibition fuels firestorm of new dangerous drugs: File under "government actions, unintended consequences of". Includes this important, grim point: "These drugs are nobody’s first choice. BZP was originally a worming tablet for cattle. Ketamine was a veterinary anaesthetic. GBL was a superglue remover. In all likelihood, that is what they would have remained had ecstasy not been banned."
What the Immigrant Saw
There's a great new book just published by JP Floru. It's What the Immigrant Saw, and describes his adventures and experiences since he first arrived on these shores from Belgium and decided to make Britain his home.
The book is superlatively written, and carries the reader along effortlessly with its narrative as JP struggles with local councils, with UK politics, with the NHS, with housing, and with busy-body bureaucrats. He writes in an engaging first-person style, edging his insights with wry humour as he encounters our ways.
He treads the path of a foreigner looking at our foibles with an affectionate eye, a path trod by George Mikes in "How to Be an Alien" over half a century ago. But there is a political punch to the book. JP puts across the essence of what Thatcherism meant, and how it had to fight vested interests and the blinkered ideology of socialism and officialdom. His causes are those of liberty and free markets, and he wears their favours well.
The book is a must read, entertaining and amusing, but informative too. Buy copies for your friends and spread the word.
Picks of the week
1. The Gnome Thought Experiment – Only Austrian capital theory can explain economic slowdown caused by mischievious gnomes.
2. Friends Don't Let Friends Become Chinese Billionaires – Why do Chinese billionaires have such a high mortality rate?
3. "Not every human problem deserves a law" – California's Governor Jerry Brown uses his veto pen. Reason.com has more.
4. Video: 4 Million Microloans Visualized in 4 Minutes – The power of charitable capitalism through Kiva.org microloans.
5. Government to Investigate 'West Lothian Question'– The first step towards an English Parliament, or even greater decentralization of power?
6. Save The Pound – Denationalize It – Currency competition is the key to sound money.
7. A World Without Borders Makes Economic Sense – Ending immigration controls might be the best single policy decision anybody could make.
8. No Way Out – Why Policy Advice is Futile, And What You Should Do Instead – Basically, we're doomed, but here's an interesting explanation of why.
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