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More Thoughts on Economics and the Church – AOI – The American Orthodox Institute – USA

More Thoughts on Economics and the Church

This was originally posted on my own blog and then posted here in the comments section.  I thought for ease of those who read and comment here I would simply repost  it here for your comments.

In Christ,

+FrG

My post on the implication for the Orthodox Church of Novak’s understanding of capitalism (for the original post, click here)  has inspired an interesting, if not always edifying, conversation over at the American Orthodox Institute Blog where I cross posted the piece (for the post and comments, click here).

As I mentioned on the AOI blog, my interest in Novak’s work is not a technical interest (I am not primarily interested in how his understanding compares with who other scholars view capitalism) but on the anthropological vision that he says  contributes to the extraordinary success in capitalism (or a free market approach to the economy) is raising the standard of living for the vast majority of people on the planet.

This all came to mind when I read Matt Cavendon’s post (“Sowell and Benedict XVI on Economics and Culture“) on the Acton Institute‘s blog, Powerblog.   Cavendon makes, I think, a point similar to my own, when he argues that both Pope Benedict XVI and the economist Thomas Sowell challenge us to look at the human meaning of cultural and economic structures.  For both men, development (whether economic for Sowell or more vocation for Benedict) is not divorced from culture because human beings are foundationally social beings.  Our success and failure is not simply private but more often then not shared.  And so, Cavendon observes, “cultures that insist on rigid boundaries between certain types of people will not be able to enjoy the fruits of everyone’s creativity and productivity. ”  He uses, as an example, the

Afrikaners (people of Dutch descent in South Africa) under apartheid, . . . , believed that it was unacceptable for native Africans to hold many jobs. Instead of letting Africans develop the gifts that God gave them and sharing with them in prosperity, the Afrikaners chose segregation. South Africa was poor under apartheid: neither Afrikaners nor native Africans advanced economically.

Likewise, I think, in the Church.  If we do not allow people to develop the gifts–spiritual, intellectual, or cultural–that God has given them, then the whole Church suffers a a real impoverishment in not only from the immediate lost of these undeveloped gifts but also a more long term loss.

This more long term loss is akin to JFK’s phrase a rising tide lifts all boats.  In foster the development of your gifts (and again, economic, intellectual, cultural or spiritual) I enrich both you and the whole community of the Church of which you are a member.  This greater wealth brings with it not only more opportunities for you but for me as well and so by not fostering your gifts I impoverish us both.

Following Benedict’s analysis Cavedon next turns to critical and appreciative analysis of American culture.  As with any culture

there are some aspects of American culture that honor the common good and that promote real development. Our tradition of liberty in the context of morality honors the dignity of the human person. Our beliefs in free action unrestricted by the government give people the free choice that makes virtue possible. Our distaste for unjust privilege and belief in the equality of all people make social mobility a deeply-entrenched value.

At the same time, we are not always our best selves as Americans.  And so together with our great strengths we must also frankly acknowledge that

America also has a history of exclusion. African Americans were held in slavery for hundreds of years here, and only recently did they gain full legal rights protected by the government. At various points, Mexicans, Chinese, Jews, and other immigrant groups have been treated brutally by Americans unwilling to open society to people with new gifts to offer. Secularism also poses a grave threat to authentic development: without values and morals guiding people’s free choices, liberty becomes license and freedom can become an excuse for depravity.

Rightly Cavedon turns not only to the Church as the basis of his critic of American culture, but also (if only implicitly in this post) to contemporary thought (in this case Sowell’s writing in economics).  In doing this I think that he has not only offered useful insights in the intersection of economics and the Gospel, but also offered a model of engaging the contemporary world that is applicable for the Orthodox Church’s witness.

While certainly central to our engagement is the truthfulness of what we say to the world.  But the truthfulness of our words are, I think, undermined if we are not willing to first look at ourselves.  I spent two days last week at a meeting of Orthodox Christian urban parishes.  While some of these parishes are doing well, people love each other, the Gospel is being preached both by word and through an active life of philanthropic engagement, other of these parishes are slowly (or not so slowly) dying.  Taking a hint from Cavendon I can’t help but wonder if the difference between the experience of the two types of parishes is found precisely in the strengths and weaknesses he outlines as part of American culture.

This isn’t to set some parishes up as heroes and others villains.  It is rather meant to suggest that what might make the difference between a living parish and a dying one is to be found in the parish’s ability to see itself and those outside the community as gifts from God.

Well, as always, your comments, criticisms and questions are not only welcome but actively sought.

In Christ,

+Fr Gregory

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21 responses to “More Thoughts on Economics and the Church”

  1. Michael Bauman

    It is rather meant to suggest that what might make the difference between a living parish and a dying one is to be found in the particular parishes ability to see itself and those outside the community as gifts from God?

    Fr. Gregory, well said. It seems to me that your insight could easily apply to the whole Orthodox witness. The hierarchical and jurisdictional in-fighting and the refusal to evangelize America has a similar root don’t you think?

  2. Michael,

    Forgive me please for delaying in responding to your question.

    In a nutshell, I think yes, we do not see each others as gifts but as competitors–and God knows I’m as guilt of this as the next fellow–and as long as we see each ourselves in some form of opposition we will make no progress personally or as a Church.

    David Bentley Hart has an interesting discussion in (I think) his book The Beauty of the Infinite where he argues for the primacy of gift in Christian ontology & epistemology–existence is a gift and until we see existence as a a gift, as something wholly gratuitous and so outside human control. Coming to know reality, big “R” or small, requires that I cultivate in my heart a sense of gratitude. The absence of gratitude will necessarily blind me to reality with all the moral and practical consequences that comes from such blindness.

    To make this more practical, let me suggest that not only does my neighbor not diminish me, his presence is a positive requirement for my flourishing. I cannot be myself by myself–I can only be myself with you and, more specifically, if I serve you.

    With the jurisdictional mess were I think we have gone wrong is that we cannot be Greek, or Russian or American except we are this together. Let me make that stronger my neighbor’s Greekness not only need not detract from my Americanness, my Americanness is dependent on his Greekness.

    Does this make sense? I would appreciate your thoughts on the matter.

    In Christ,

    +FrG

  3. Michael Bauman

    Fr. Gregory, it makes perfect sense to me. Human beings cannot live in isolation. We are meant to be in community with each other focused on God.

    Jean Paul Sarte said, “Hell is other people”. As usual he had it upside down and backwards. Hell is the refusal to accept and give love. When we give into the barriers created by the Fall, we sink more deeply into that isolation. Satan works to keep us at enmity with one another, using one another instead of serving.

    The most frequent way most of us experience God is in other people. If we can’t or won’t see Him there, it is quite unlikely that we will experience Him anywhere else.

    Capitalism shares the following flaws with other economic philosphies:
    1. The principal of scarcity
    2. No sense of the sacred, hence its tendency toward utilitarian ideology.

  4. Michael,

    I agree with you with your statements about theological anthropology. I am a little confused about your criticisms of capitalism (and other economic philosophies). Yes, to be sure, there is no sense of the sacred as such in capitalism or in economics in general–but does there need to be?

    From my own point of view the absence of a concept of the sacred in economics is not a flaw as much as it is a simple acknowledgment of the methodological limits of the discipline. To raise the absence as a flaw seems to me to be a bit of an overstatement.

    Regarding your first point,about scarcity–I’m a bit confused (a common state for me!). Scarcity seems to me an inherent part of creation. Unlike its Creator, the creation is necessarily limited and so scarcity (at least it is used in the dismal science) seems to me as written into the structure of creation. In other words, scarcity an empirical adumbration of the ontological category of contingency. But again, maybe I’m missing something here.

    Finally, are you the Michael Bauman who teaches at Hillsdale College? I’ve been impressed with what I’ve seen over the years from Hillsdale and was just a curious.

    Again, thanks for the comment–look forward to your thoughts.

    In Christ,

    +FrG

  5. Michael Bauman

    I’m not the Michael Bauman that teaches at Hillsdale College. He is a much more learned and accomplish man than I. I’m just the simple parishoner in my local Orthodox Church.

    As to the quality of the sacred: That has to be brought to bear to the manner in which we use the resources of creation. If we don’t, then we fall into a dualistic materialism that is destructive to our souls and the rest of creation. The concept of the ‘capitalization of nature’ I picked up from a small, but fascinating volume “The End of Indian Kansas”. It involves the active de-sacralizing of the created order so that it can be used. Everything and everyone becomes simply a resource, valuable only in the sense that it has economic use.

    As to the principal of scarcity: My reading of the Holy Scripture and occasional experience is that there is super-abundance in creation for us if it is rightly used and respected. We are called by God to dress and keep the earth to fructify it and raise it up in thanksgiving–“Thine own of thine own we offer unto you….” (I am NOT talking about any kind of quid pro quo ‘success’ Christianity here BTW)

    God provides all that is needful to those who follow His commandments, in fact more than is needful.

    The principal of scarcity is, again, founded in a finite, materialist understanding of the created order leads to a utiltarian concept of human interaction that is destructive. A concept the promotes statist intervention in the name of ‘fairness’.

    My critique is not aimed at capitalism per se, but at the manner in which Christians approach the economic realm. At best economics is an approximate description of fallen human behavior. At worst it is a tyrannical ideology that destorts creation and de-humanizes us.

    We have to be cognizant that capitalist ideology can take on every bit as much of the chiliastic enthusiasms of Marxism and Fascism. The internal logic of capitalism does not require such an heretical direction, but it is not free of it either.

  6. Chris Banescu

    Michael I disagree with your assessment that:

    “We have to be cognizant that capitalist ideology can take on every bit as much of the chiliastic enthusiasms of Marxism and Fascism. The internal logic of capitalism does not require such an heretical direction, but it is not free of it either.”

    “Capitalism”, a label dreamed up by socialist professors and academics that is supposed to encompass everything that one would define as “free-market economics.” The process of economic interactions and value creation between free people regardless of what culture and government they live under falls under that label.

    As I wrote in my article “A Primer on Capitalism“:

    The concept known as “capitalism” simply explains the relationship of voluntary exchanges of value for value between free individuals. It’s a word that describes how free human beings voluntarily interact with one another to exchange value (usually in the form of money in return for goods or services) in order to be able to live (food, clothing, and housing) and how they invest the excess value they have earned to produce, create, and gain more value. Capitalism, is value and morally neutral.

    Compared to that Marxism and Fascism are completely different and un-natural. They are evil at their core and they never claimed to be “value and morally neutral.” Both of them place the state above the individual’s right to freedom and life. Both violate the principles of liberty and actively promote the involuntary sacrifice and confiscation of value, assets, and human lives in benefit of a small group of evildoers.

    Sorry your morally equivalent argument does not work.

  7. Michael Bauman

    Chris, you consistently refuse to listen to what I am saying. I realize that so I won’t waste any more energy on trying to communicate with you about this.

    One thing I am heartily tired of, however, is the ad hominum perjortive of making a argument of moral equivalency just because you refuse to understand nuance.

    Give it a rest, expand your vocabulary and deal with the substance of what I am saying.

  8. Michael,

    Thank you for your comments.

    I think I see your point (#5)–God’s grace is always available and if we live according to His will for us then we will have sufficient for our needs (if not our desires). I would make two qualifications to this.

    First, and I admit I might be a bit persnickety here, I would limit the term “super-abundant” to God. Yes, I agree that as designed creation has sufficient for humanity–but I would still argue that sufficiency does not mean without limits.

    Second, and I think more substantially, I do think that scarcity accurately describes the situation of a fallen creation. With Adam’s fall, creation falls as well–or at least it too is damaged–and so scarcity not only describes the resources of creation relative to human desire but creation itself as it has come to be under the reign of sin and death.

    From this point of view, I understand why you would argue that scarcity reflects a materialistic worldview. But I would argue that scarcity is nevertheless an accurate description of the world as it is and is not necessarily materialism. Let me go go a little further here and say that the concept of scarcity has the potential to be a point of convergence and at least some schools of economic theory and practice.

    Speaking personally (and I understand you didn’t say this) I don’t think limiting scarcity to simply a reflection of disordered human desires takes sufficient account of the effects of sin on the creation. While scarcity is often of human misconduct, I would be hesitant to ascribe all material want simply and exclusively to the concrete sinful acts of particular individuals.

    Does this make sense or am I way off the track?

    Chris,

    Your point about the difference between capitalism and socialism is well taken I think. i would express the difference this way: Capitalism is a descriptive term, socialism, prescriptive. Or, as you say above (# 7)captialism:

    simply explains the relationship of voluntary exchanges of value for value between free individuals. It’s a word that describes how free human beings voluntarily interact with one another to exchange value (usually in the form of money in return for goods or services) in order to be able to live (food, clothing, and housing) and how they invest the excess value they have earned to produce, create, and gain more value. Capitalism, is value and morally neutral.

    Marxism and Fascism, on the other hand, are ideologies–or if you prefer socio-economic action plans that one party seeks to impose upon the other. It is in the sense that they are imposed they are immoral. Let me make that stronger, because they are not only are artificial and contrary to (and destructive of) they the social character of the human)are evil and unnatural.

    I may be wrong here, God knows it would not be the first time, the concern of moral equivalence is not in saying that in both the free market and the Marxism there exists the possibility of abuse. No, the objection of moral equivalence is found when we confuse, or intentionally obscures the difference between a descriptive and a prescriptive approach to how we understand and shape humanity’s economic life. Do I have that correct?

    Your comment (and others have made it here as well) that the term capitalism was introduced by those who were concerned not with a description of humanity’s economic life but rather as a rhetorical technique to advance their own ideological concerns about, and for, human economic life is a new thought for me but one that makes a certain intuitive sense to me. Assuming for the sake of argument that this history is correct (and I’m not disputing it, I just don’t have the education to evaluate the claim), then while not blind to the presence of sin in all human relationships, we can’t look at capitalism and socialism as simply two different, albeit differently flawed, economic systems precisely because capitalism as such is not an economic system. Do I have this?

    Again, friends, thanks for the chat!

    In Christ,

    +FrG

  9. Chris Banescu

    Fr. Gregory,

    Regarding your summation:

    the objection of moral equivalence is found when we confuse, or intentionally obscures the difference between a descriptive and a prescriptive approach to how we understand and shape humanity’s economic life. Do I have that correct?

    Yes, that’s correct! The process labeled as “capitalism” is descriptive of how human beings normally interact to live in the material world. Granted that human sinfulness, greed, unethical conduct, and rejection of God’s truth and moral laws lead many to abuse that process and abuse their neighbor, but that is not the fault of “capitalism”. It is the fault of man and his excessive and even exclusive focus on the materialistic dimension of life. These men are not ethically following free market economic rules (better term to describe capitalism) but abusing or ignoring them. They are actually disregarding the law and behaving unethically (immorally if you will) or criminally.

    Marxism and Fascism are indeed immoral ideologies based on lies and distortions of life and reality. They are artificially imposed on mankind and their tenets alien to humanity from the start. There is nothing redeeming in their precepts and their complete rejection of God, morality, and devaluation of human life.

    Thank you Fr. Gregory for the additional insights and clarifications.

  10. Chris Banescu

    Fr. Gregory,

    Regarding this statement:

    we can’t look at capitalism and socialism as simply two different, albeit differently flawed, economic systems precisely because capitalism as such is not an economic system. Do I have this?

    Yes, that’s precisely the issue! Like calling Gravitation what is normally “the natural phenomenon by which objects with mass attract one another”, we can call Capitalism that which represents “the laws of human interactions regarding economics, wealth, value creation, and value exchanges.” Unfortunately, many folks include in that label unethical, immoral, and criminal behavior that has absolutely nothing to do with ethical and voluntary exchanges of value for value of free individuals.

    As a matter of fact I will go a step further. I believe that true capitalism must based on an “others oriented attitude”, realizing a need in the world and providing a product or a service to your neighbor in order to help them. Providing that help, allowing others to freely chose and giving them the benefit of your hard work and risk-taking is indeed how societies have benefited, especially the poor, the sick, and the elderly. This is more like Servant Leadership than many realize. This natural engine of value and wealth creation, built on a moral and legal foundation has brought more benefit to humanity than all the various social experiments and lesser economic systems invented by man.

  11. George Michalopulos

    Isn’t in the Bible somewhere, “radix malorum est cupiditas” (The LOVE of money is the root of all evil”?)

  12. George Michalopulos

    I forgot: 1 Tim 6:10.

  13. Michael Bauman

    Chris,

    I believe that true capitalism must based on an “others oriented attitude”,

    What a wonderfully closed system of thought; how wonderfully ideological. It prohibits anyone from attempting to look at capitalism as anything else but what you say it is. You are free to simply say, huffingly, “Well, that’s not true capitalism”. Anyone who says different is just being a heathen–guilty of moral equivalency (the unforgiveable sin).

    Forgive me anyway Chris, I am clearly unworthy to bask in the light of your lumenescent knowledge and wisdom.

  14. Chrys

    Chris, I agree with your comments about capitalism being fundamentally descriptive. Adam Smith’s brilliant works on The Wealth of Nations and his The Theory of Moral Sentiments sought to describe the characteristics of our interactions.

    The genius of his insight was well expressed in his classic line: “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.” While we can not rely on anther’s virtue for our sustenance (in fact, we can not often rely on our own), we can rely on their contingency (which reliably drives us as well). In a reasonably well-ordered society, the other must offer something we want to receive something he wants – and the offer must be “worth it,” it must be of sufficient value to us for us to make the exchange. In this way, the other must strive to provide us with something we value. In doing so so, we are both enriched.

    This strikes me as fundamentally sacramental: we must invest our efforts to make an offering of value for the blessing of the other and in so doing receive a blessing in return. That this is the structure daily life should not be a surprise if we believe that Christ, who gave us the Eucharist as the preeminent expression of His ministry and our life in His body, is the same one through Whom the heavens and the earth were formed.

    There are (at least) two important qualifications.

    First, because people in this process are seeking that which appears to offer the greatest value, a change in the “rules” can change our appraisal of value. Incentives and deterrents – whether political, social or commercial – will shape our considerations and affect our decisions.

    While extrinsic incentives and deterrents may have an influence, they do not alter the fundamental need or value that drives the exchange. If those outside forces are coercive enough, they may eventually drive those exchanges underground, but they do not go away. Whether this is acceptable or not depends on how marginal or essential those exchanges are to our daily lives. In the end, there are limits to the effectiveness of various outside factors to modify our assessments of value.

    Prescriptive systems – like Socialism or today’s NeoCons – eventually fail because they seek to impose extrinsic criteria on human exchange; in these examples, the criteria are politically-defined outcomes. (In fact, I would argue that they are not only extrinsic criteria but alien – reflecting not true human virtue- which has meaningful rewards – but a defective concept rooted in an anthropological fantasy.) While humanity is remarkably elastic in its ability to adapt, the underlying character remains the same. If we do not allow people to reasonably pursue their own self-interest, they will cease to exert themselves beyond the (ever-diminishing) minimum required. Again, this eventually leads to bankruptcy.

    The second qualification may well be the source of the first: that human exchange is meant to be sacramental does not mean that sin can not and has not corrupted these interactions any less than it has every other sphere of human activity. Sin misuses and disorders the good gifts of God. Deception, force, manipulation – or outright plunder – are distortions and deviations that have all too often characterized our economic relationships.

    This, however, condemns us, not the good thing itself. That we misuse each other does not diminish the truth of human interaction described by “capitalism.” Yet here, as elsewhere, the light drives out the darkness. Accountability can expose these deviations and, with adequate exposure to its light – and often a good bit of grief (all sin eventually produces grief) – there will be some corrective action. If not, reality inevitably imposes corrective action; a perverted system eventually collapses from its own lack of integrity and bankruptcy. (Of course, this can take quite a while if there is adequate force propping it up – e.g., the Soviet Union.) It may come later or sooner, but it will most certainly happen. Eventually everything will be brought to the light.

    In evaluating economic systems, then, it is helpful to know both that (1)capitalism/free markets describes the nature of fundamental human interaction AND that (2) sin will distort and pervert it. The effective system makes room for the first while recognizing and establishing accountability solutions for the second.

  15. Fr Gregory

    Chris,

    Thank you for your kind words (# 9/10)–I wrote a response last week but I most have deleted it rather than post it. Ah well. 🙂

    Your comments and those offered by Chrys (#14) move the conversation somewhat in the direction I was hoping it would take–a conversation about what (if anything) Novak’s thought might mean for the Orthodox Church both in the States and overseas.

    Thinking about this a bit, especially in light of what Chrys has said, I wonder if in fact we have not depended too much on extrinsic factors to maintain the Church? The easy example is the emphasis on ethnicity. But I think we can add to this what David Bentley Hart identifies as that most strange (and in my view unwholesome) Orthodox cottage industry: the anti-Western Christian mentality common among many of us. The idea, as we all know, works to build the Orthodox Church by tearing down Catholicism and Protestantism. To my mind it is much like Southwest airlines saying “Fly Southwest, US Air crashes a lot!”

    We can too easily use fear and guilty to try and pressure people to participate in the life of the Church. Doing this however doesn’t take advantage of the creativity and dynamism that is released when we focus on offering people intrinsic incentives for participation.

    In my own pastoral work I have discovered taking the time to help people sort out their own motivations and to help them find the areas of convergence between their own lives, the Gospel and the Tradition of the Church turns out a much better “product” in terms of the person’s commitment in all areas of Church life. Yes, it takes a lot more work on my part (and theirs) but it is I think the only way to go if you are concerned with the long term health of both the person and the Church.

    Again in my experience at least, I have found that my approach to catechizing and confessing is successful not only with inquirers but also “cradle” Orthodox. No one wants to be forced to participate in the life of the Church. While mindful of my own failures, one of the great sorrows in my ministry is that the work I do with people to help them discover their own, internal motivations for participation, are often undone by, let me simply say it, lazy priests and lay leaders who are more interested in their own immediate comfort than the Gospel.

    Especially in this country, the Church has become more a reflection of the bureaucratic inefficiency of socialism and have left by the wayside the liberating power of the Gospel.

    I best stop here before I say something I regret.

    Again, thanks to one and all for your comments.

    In Christ,

    +FrG

  16. George Michalopulos

    “The moment the idea is admitted in society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence. If ‘Thous shanlt not covet’ and ‘Thous shalt not steal’ were not commandments of Heaven, they must be made inviolable precepts in every society before it can be civilized or made free.” –John Adams

  17. Fr Gregory

    George,

    Forgive me, I’m a bot slow these days as we prepare for our move from Ohio to Wisconsin, but how does Adam’s quote figure in to the conversation here? 🙂

    In Christ,

    +FrG

    (Who has said his prayers but not had his coffee yet.)

  18. Robert Fortuin

    OK I will give this website one more try, as my comments are not being displayed. I am not sure what is going on. If they are being disapproved, at least have the courtesy to email me and let me know.

  19. George Michalopulos

    Oh, just as a corrective. It seems that many pietiests tend to glorify absolute poverty, which is fine for monastics, but unworkable for society at large. Adams’ words jumped out at me because two of the 10 Commandments (at least) exply that property is God-given. (So does the the Commandment against “bearing false witness” for that matter, since a man’s life and/or property can be forfeit in any judicial proceeding.)

    that’s all.

  20. George Michalopulos

    Sorry, message #19 was for Fr Gregory.

  21. Fr Gregory

    Thanks George! With reference to the quote in #16, I get it now and I agree wholeheartedly.

    In Christ,

    +FrG

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