Tag Archives: Freedom

Richard Epstein explains why economic inequality is required in order to promote innovation

My friend Matt, who blogs at The Conscience of  a Young Conservative, posted this on Facebook.

Epstein explains how the profit motive creates economic value that raises the standard of living of all people, who are able to exchange their money for valuable products and services that they did not create. He explains how wealth redistribution is wasteful and harmful to economic growth.

(Found here)

Now let’s look at some myths that Christians believe about economics.

We need to understand basic economics

Christian philosopher Jay Richards explains basic economics.

Excerpt:

THE ZERO-SUM GAME MYTH.

There are three kinds of games: win-lose, lose-lose, and win-win. Win-lose games, like basketball, are sometimes called “zero-sum games.” When the Celtics and the Bulls compete, if the Celtics are up, then the Bulls are down, and vice versa. The scales balance. It’s a zero-sum.

Besides lose-lose games, which most of us avoid, there are positive-sum, or win-win, games. In these games, some players may end up better off than others, but everyone ends up at least the same if not better off than they were at the beginning.

Millions of people think that the free trade in capitalism is a dog-eat-dog competition, where winners always create losers. This is the zero-sum game myth, which leads many to think that the government should somehow redistribute wealth. While some competition is a part of any economy, of course, an exchange that is free on both sides, in which no one is forced or tricked into participating, is a win-win game. When I pay my barber $18 for a haircut, I value the haircut more than the $18. My barber values the $18 more than the time and effort it took her to cut my hair. We’re both better off. Win-win.

THE MATERIALIST MYTH.

A similar myth leads people to think of the economy as some fixed amount of material stuff—money in safes or gold bars in a vault. Since two firms competing for one customer can’t both get the customer’s money, we might think the whole economy looks that way: wealth itself isn’t created, it’s merely transferred from one party to another.

A common image of this “Materialist Myth” is a pie. If one person gets too big a slice, someone else will get just a sliver. To serve it fairly, you have to slice equal pieces.

This isn’t how a free economy works, however. Over the long run, the total amount of wealth in free economies grows. We can create wealth that wasn’t there before. The “pie” doesn’t stay the same size. Under capitalism, someone can get wealthy not merely by having someone else’s wealth transferred to his account, but by creating new wealth, not only for himself, but for others as well.

THE GREED MYTH.

Friends and foes of capitalism often claim that it is based on greed. Writer Ayn Rand even claimed that selfishness is a virtue (see the accompanying feature article). But greed is one of the seven deadly sins. If capitalism is based on it, then Christians can’t be capitalists.

In truth, Adam Smith and other capitalist thinkers did not believe this “Greed Myth.” Rather, Smith argued that capitalism, unlike static economies, channels even greedy motives into socially beneficial outcomes. “In spite of their natural selfishness and rapacity,” Smith wrote, business people “are led by an invisible hand…and thus without intending it, without knowing it, advance the interest of the society.”3

Rather than inspire miserliness, capitalism encourages enterprise. Entrepreneurs, including greedy ones, succeed by delaying their own gratification, by investing their wealth in creative but risky ventures that may or may not pan out. Before they ever profit, they must first create.

In a fallen world, we should want an economic system that not only channels greed into productive purposes, but unleashes human ingenuity, creativity, and willingness to risk as well.

I think Christians who don’t understand economics really need to make the effort to understand the basics. I recommend Robert Murphy’s “The Politically Incorrect Guide to Capitalism” and Thomas Sowell’s “Basic Economics“. If you want to see how economics works together with Christianity, then you also want Jay Richards “Money, Greed and God” and Wayne Grudem’s “Politics According to the Bible“.

Is Luke 10:13 more of problem for Calvinists or Molinists?

Calvinism is the view that God decides whether you go to Heaven or Hell and nothing that you do affects where you end up. If God wants to save you, then he will, and you can’t resist it. If God wants to damn you, then he will, and you can’t resist that. God saves some people and not others, but not based on anything that the people themselves do. God does not want everyone to be saved.

Molinism is the view that God draws people to him, and they can resist his drawing, just like in any ordinary love relationship where the beloved is not drawn against his or her will. On Molinism, God also places people in the best time and place for them to respond to him, depending on what evidence they need. He can do this because he knows how people respond in any set of circumstances. If people go to Hell, then the people are responsible, on Molinism. But God wants everyone to be saved, but not against their will. God actualizes a world in which he is sovereign over everything that happens, and gets the outcome that he wants, but without violating free will.

So here’s a verse that I think is troubling to both sides, Luke 10:13:

13 “Woe to you, Chorazin! Woe to you, Bethsaida! For if the miracles that were performed in you had been performed in Tyre and Sidon, they would have repented long ago, sitting in sackcloth and ashes.

This verse is a problem for Molinists, because if the people in these cities would have repented if they got better miracles, then why didn’t they get the better miracles they needed? If God loves them, then why didn’t he give them better miracles?

And this verse is a problem for Calvinists, because it shows that people do have free will to respond to evidence that God allows them to see. Why would evidence matter on Calvinism, since God can just flip the person’s switch (or not). If God wanted those people to repent, he could just do it without having to care about evidence, since he is the one who decides whether they believe in him or not, totally apart from their free will.

George Will on the secular left’s opposition to freedom of association

From the liberal Washington Post.

Excerpt:

Illustrating an intellectual confusion common on campuses, Vanderbilt University says: To ensure “diversity of thought and opinion” we require certain student groups, including five religious ones, to conform to the university’s policy that forbids the groups from protecting their characteristics that contribute to diversity.

Last year, after a Christian fraternity allegedly expelled a gay undergraduate because of his sexual practices, Vanderbilt redoubled its efforts to make the more than 300 student organizations comply with its “long-standing nondiscrimination policy.” That policy, says a university official, does not allow the Christian Legal Society “to preclude someone from a leadership position based on religious belief.” So an organization formed to express religious beliefs, including the belief that homosexual activity is biblically forbidden, is itself effectively forbidden. There is much pertinent history.

[…][I]n 2010 the [Supreme] court held, 5 to 4, that a public law school in California did not abridge First Amendment rights when it denied the privileges associated with official recognition to just one student group — the Christian Legal Society chapter, because it limited voting membership and leadership positions to Christians who disavow “sexual conduct outside of marriage between a man and a woman.” Dissenting, Justice Samuel Alito said the court was embracing the principle that the right of expressive association is unprotected if the association departs from officially sanctioned orthodoxy.

In wiser moments, the court has held that “this freedom to gather in association . . . necessarily presupposes the freedom to identify the people who constitute the association and to limit the association to those people only.” In 1984, William Brennan, the court’s leading liberal of the last half-century, said:

“There can be no clearer example of an intrusion into the internal structure or affairs of an association than a regulation that forces the group to accept members it does not desire. Such a regulation may impair the ability of the original members to express only those views that brought them together. Freedom of association therefore plainly presupposes a freedom not to associate.”

As professor Michael McConnell of Stanford Law School says, “Not everything the government chooses to call discrimination is invidious; some of it is constitutionally protected First Amendment activity.” Whereas it is wrong for government to prefer one religion over another, when private persons and religious groups do so, this is the constitutionally protected free exercise of religion. So, McConnell says, “Preventing private groups from discriminating on the basis of shared beliefs is not only not a compelling governmental interest; it is not even a legitimate governmental interest.”

Here, however, is how progressivism limits freedom by abolishing the public-private distinction: First, a human right — to, say, engage in homosexual practices — is deemed so personal that government should have no jurisdiction over it. Next, this right breeds another right, to the support or approval of others. Finally, those who disapprove of it must be coerced.

Sound familiar? It should. First, abortion should be an individual’s choice. Then, abortion should be subsidized by government. Next, pro-life pharmacists who object to prescribing abortifacients should lose their licenses. Thus do rights shrink to privileges reserved for those with government-approved opinions.

The question, at Vanderbilt and elsewhere, should not be whether a particular viewpoint is right but whether an expressive association has a right to espouse it. Unfortunately, in the name of tolerance, what is tolerable is being defined ever more narrowly.

Although Vanderbilt is a private institution, its policy is congruent with “progressive” public policy, under which society shall be made to progress up from a multiplicity of viewpoints to a government-supervised harmony. Vanderbilt’s policy, formulated in the name of enlarging rights, is another skirmish in the progressives’ struggle to deny more and more social entities the right to deviate from government-promoted homogeneity of belief. Such compulsory conformity is, of course, enforced in the name of diversity.

I’m surprised by George Will. I always thought he was a moderate. But since I started writing this blog, I’ve been happy to see that he is a lot more conservative than people like Charles Krauthammer, Michael Barone, and other well-known moderate conservatives. I don’t require that he agree with me – I just want him to understand my views. And he does.

My Experience

When I’ve spent time talking to secular leftists in my office, they seem to have a horror of disagreements. They are desperate to make sure that everyone believes the same thing on every issue. The conversations typically proceed as follows:

  1. They express their view on some  subject and imply that it is the only intelligent view, since they learned it from their college professors.  (Evolution is a fact)
  2. I produce peer-reviewed experimental data that falsifies their view. (The synthesis of functional proteins by unintelligent forces is impossible)
  3. They try desperately to find some area that we agree on that is unrelated to my evidence. (But you agree that the Earth is older than 6,000 years, right?)

This is what the left means by diversity of opinion. Everyone has to agree, even if no one can prove that what is agreed to is actually true. They believe that rent controls doesn’t result in a shortage of affordable apartments, even though this is not what has been observed. They believe it because it sounds nice, and it makes people think that they are nice people. And they get very confused and flustered if you try to prove them wrong with evidence.