163 - Reconciling Distributism and Economics - Alexander W. Salter
Jul 24, 2023
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Guest Alexander W. Salter, an expert in distributism and economics, discusses integrating distributism with modern price theory for 'common good capitalism'. Topics include economic fallacies, distributist skepticism, labor markets, ownership vs. employment, capitalism, political economy, detachment from the land, and Catholic resources.
Combining distributist social philosophy with modern price theory can lead to 'common good capitalism'.
Ownership of productive property promotes human dignity, freedom, and responsibility towards the community.
Active civic participation and decentralized decision-making are essential for a robust democracy.
Deep dives
The Role of Economics in Distributism and Political Economy
Economics is distinguished from political economy in that economics focuses on describing markets without making value judgments, while political economy incorporates ethical considerations to determine how society should be organized for the common good. The science of economics provides insights on market behavior, while the art of political economy addresses societal arrangements based on ethical principles.
The Distributist Perspective on Ownership and Liberty
Distributism emphasizes the relationship between ownership and liberty, arguing that widespread access to productive property creates incentives that respect human dignity and freedom. Ownership, beyond mere material wealth, enables individuals to fulfill their God-given duties and fosters a sense of responsibility towards their community. Distributists advocate for a decentralized ownership structure to promote human flourishing and self-governance.
Democracy and Self-Governance in Distributist Thought
Chesterton and Belloc view democracy as self-governance exercised through active participation in civic organizations and local institutions, fostering a robust civic society. Their concept of democracy extends beyond voting to encompass genuine civic engagement and decentralized decision-making on a human scale. They prioritize civil society's role in shaping political orders and emphasize the importance of self-governance at different levels.
Human Flourishing and Economic Efficiency in Political Economy
The intersection of moral values and economic principles in political economy is essential for promoting human flourishing and defining societal well-being beyond economic efficiency. Distributists challenge purely utilitarian approaches to economics, highlighting the significance of ethical considerations in shaping just and equitable economic systems. Acknowledging the limitations of economic knowledge in designing complex social structures, they advocate for a holistic approach integrating economic science with moral principles.
Economics and Holistic Perspective
Economists emphasize the importance of studying a variety of disciplines, such as history, sociology, psychology, and ethical philosophy, alongside economics to gain a comprehensive understanding of human behavior. This holistic approach, as advocated by economists like Hayek, acknowledges that economics is the study of human behavior and requires insights from various fields to formulate accurate hypotheses and solutions.
Distributism and Economic Science
Ropke's work bridges the perspectives of economists and distributists by distinguishing between the scientific aspects of economics and the social philosophical considerations of political economy. While emphasizing the economic way of thinking in his scholarly works, Ropke also incorporates distributive principles into policies to ensure property preservation, control monopolies, and maintain a human-centered approach to politics and economics. His approach highlights the importance of aligning economic theories with moral values to achieve meaningful societal outcomes.
Distributism, the social-political-economic philosophy advanced by G.K. Chesterton and Hilaire Belloc under the influence of Catholic social teaching, offers intriguing ways of rethinking the modern social-political-economic order. But distributists have often been found lacking in serious practical plans to bring about their ideal social order, and in the economic fallacies they commit when critiquing other schools of thought.
Distributists and economists have often seemed to be natural enemies. As an economist, Alexander W. Salter is not willing to embrace many distributists' skepticism that there can such a thing as economic science. But he also believes it would be a mistake to neglect the powerful social vision of Chesterton and Belloc on account of their shortcomings in economic theory. He joins the podcast to discuss his new book, The Political Economy of Distributism, in which he argues that a combination of distributist social philosophy and modern price theory can help us to achieve the much-discussed goal of "common good capitalism".
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