Reclaiming Capitalism Through Principles of Distributive Justice
As many of you know, I am an associate director for the think tank, the Institute for Progressive Christianity ("IPC"). Earlier this week, our organization issued a White Paper I authored for for IPC entitled, "Reclaiming Capitalism Through Principles of Distributive Justice " Reclaiming Capitalism Through Principles of Distributive Justice.”
One of the obstacles we face in pursuit of a just form of capitalism in this way is that public discourse on these things often gets muddied because many on the Religious Right, especially among the Catholic Right, deceptively seek to debase the term “liberal.”
At the forefront of the revisionist movement is Michael Novak, the former Christian Socialist turned Catholic neoconservative and a resident scholar at the American Enterprise Institute. (Novak also serves on the Acton Institute's board of advisors and was a founder of the neoconservative Institute on Religion and Democracy.) Novak and others lead a movement they call “Catholic Whiggism” which is built upon a bipolar notion of liberty. On one hand they call for the absolute minimal amount of restraint upon business, a throwback to the pre-New Deal definition of “freedom of contract” principles. Yet, in matters of personal morality they define liberty as “the freedom to do as one ought to do.” But all-too-conveniently economic behavior, both individual and institutional, is exempted from their moral universe.
The white paper details how the great social justice traditions of Catholicism and mainline Protestantism have informed the development of liberal economics; how the dismantling of the key elements of New Deal era financial regulation has contributed to the current economic crisis; and how liberal Christian ideas distributive justice economics can help to solve our contemporary economic crises.
One of this statement's objectives is to expose the fallacy of many in the religious right who claim that laissez-faire is the true Christian tradition. But perhaps more importantly, we offer an alternate vision of capitalism, one that is While the document is couched in Christian theologies of Reinhold Niebuhr and Monsignor John A. Ryan, its message and applications are universal.
Here is our opening premise:
Is it possible to support a market-based economic model while being a progressive Christian? The answer is yes, because economics is as moral or immoral as anything else. Addressing matters of morality and the marketplace is a rich tradition that stands at the center of how Americans have resolved -- and sought to prevent -- the problems wrought by reckless profit-driven factions. Indeed, significant portions of New Deal economics coming out of the Great Depression were influenced by the then-ascendant Social Gospel of mainline Protestantism; Catholic notions of Distributive Justice; and religious Jewish intellectuals inspired by the tradition of tikkun olam -making the world whole.
As well as:
Accordingly, this White Paper argues for two main ideas: capitalism based upon reciprocity between contribution and benefits received, and legislation to curb and deflect the destructive effects of arbitrary economic power. To do this we draw upon the works of 20th century economist (and Catholic priest) Monsignor John A. Ryan who emphasized six canons of Distributive Justice; and on the post World War II writings of Protestant theologian Reinhold Niebuhr.
The principle of reciprocity espoused by Monsignor Ryan makes allowances for creativity, risk, productivity and special talents as well as a living wage. Ryan's contribution addresses monetary questions that require a sturdy government to enable fairness both in the distribution of profit and each individual's contribution to the common good. Niebuhr's approach is more institutional in nature; calling for a system that deflects and curbs the deleterious effects of greed - all too often the harbinger of the abuses of arbitrary power -- provides one of the most realistic methods of ensuring a more just form of capitalism.
The paper also:
* Highlights the role of American economist and Catholic priest, Monsignor John A. Ryan on the development of American Catholic views of economics, and as an advisor to President Franklin Roosevelt.
* Suggests that Ryan's "Six Canons of Distributive Justice" as principles for development of a contemporary Christian approach to economics.
* Discusses how neoconservative Catholic intellectuals such as Michael Novak, have abandoned and distorted Catholic teaching on economic justice and relied instead, advocated what Cocozzelli calls the "buccaneer economics" of Austrian school economists, Ludwig Von Mises and F.A Hayek.
IPC defines its mission as follows:
To further awareness and understanding that the progressive tradition is rooted in core Christian gospel values, and to relate that tradition to personal faith, public policy, family, and the common good.
And this is IPC's vision:
To create a national Institute for progressive Christian values. The Institute will serve as an educational facility to conduct research, seek to affect and advance policy, educate the public, and influence every sphere of American public life, including politics, academia, arts, and the church.
Click here to download and read the document in PDF format.
Please feel free to give me your thoughts on the piece.