Home
/
RELIGION & LIBERTY ONLINE
/
Free Markets Are Necessary But Not Sufficient
Free Markets Are Necessary But Not Sufficient
Apr 18, 2025 11:59 PM

To be a champion of free markets is to be misunderstood. This is doubly true for free market advocates who are Christian. It’s an unfortunate reality that many of us have e to accept as inevitable.

That doesn’t mean, however, that we don’t attempt to clear up misunderstandings when we can. So let me attempt to clear up one of the most notorious misunderstandings: Few advocates of free markets (and none who are Christian) believe that free markets are a sufficient condition for human flourishing. We believe they are a necessary condition, but they alone are not sufficient.

Economist Donald J. Boudreaux (who, for what it’s worth, is not a Christian) explains:

To understand the limits of economics is to avoid the error of assuming that economic success requires only that monetary incentives — prices, wages, profits, rates of return — be correct. Tariffs, minimum wages and other government interventions that distort monetary incentives do indeed make economic performance worse than it would be otherwise. But the success of even the freest market requires that people respect each other’s property rights, that people keep their promises and that people behave responsibly toward their family, friends and own future selves.

A society dominated by adults who never look beyond today will never e wealthy, no matter how free the market might be.

If the culture says “Live only for today!” then too few people will reduce their pursuit of immediate pleasure; too few people will have the discipline to sacrifice today’s certain pleasures for the always-uncertain prospects of a brighter future.

Markets that are at least reasonably free are a necessary condition for prosperity. But free markets are not a sufficient condition. This fact is why deregulation alone or free trade alone or tax-cutting alone should not be expected to spark and sustain widespread economic growth.

The case for free markets presumes the existence of a culture that encourages people to care about their families and their futures and that discourages people from looking with scorn upon entrepreneurs and merchants. Under these cultural pre-conditions, prosperity will indeed occur if markets are free.

You might believe this is obvious, but you’d be wrong. I agree that it should be obvious, but almost every critic of free markets presumes that when we argue for economic freedom we are saying that liberty is sufficient, and not merely necessarily, for flourishing.

The reality is that without a moral culture that produces virtuous individuals, free markets will not — indeed cannot — lead to true human flourishing. This is why one of the Acton Institute’s Core Principles is that, “Liberty flourishes in a society supported by a moral culture that embraces the truth about the transcendent origin and destiny of the human person. This moral culture leads to harmony and to the proper ordering of society.”

It is important that we correct our critics about this misunderstanding between necessary and sufficient causes. But it is even more important that we advocates of free markets never get confused about the difference.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Video: Coptic Orthodox Bishop Pleads for Peace and Reconciliation in Egypt
Sky News talks with Bishop Angaelos, the General Bishop of Coptic Orthodox Church in the United Kingdom, about the ongoing bloodshed in Egypt. (HT: Byzantine, TX) Bishop Angaelos also issued this statement through The Coptic Orthodox Church UK media office today: Comment on the on-going situation in Egypt by His Grace Bishop Angaelos, General Bishop of The Coptic Orthodox Church in the United Kingdom – 16 August 2013 As a clergyman for over twenty years, and a Christian for the...
Does Loving The Poor Mean Keeping Them Poor?
Fr. James V. Schall, S.J., in an essay for The Catholic World Report, offers some points worth pondering regarding Christianity and poverty. Entitled “Do Christians Love Poverty,” Schall insists that we must make the distinction between loving the poor – actual people – and loving “poverty” in some abstract way. For that to happen, we have to be holistic, realistic and concrete in our intentions and actions. It would seem that our love of the poor, in some basic sense,...
Pay without Work: Is the Government Deal a Good One?
It sounds like a late-night tv scam: make tens of thousands of dollars and don’t work at all! And yet, it turns out that the U.S. government is offering just such a deal. For instance, a welfare recipient in the state of Connecticut can make up to $38,761, according to a new Cato Institute study. In Hawaii, the figure is $49,175, over 200 percent above the Federal Poverty Level. As The Heritage Foundation has pointed out, nearly half of Americans...
Business as God’s Restorative Work
Katie Nienow worked in youth ministry for four years. After deciding to transition into the world of business, her former boss was not pleased. “You’re leaving the one thing God has best designed you to do,” he said. Throughout her time in ministry, Nienow says that her interest in business and economics felt “ancillary to the call.” In a new video from Nathan Clarke and This Is Our City, she explains how that perspective was fundamentally transformed. As Nienow explains:...
A Nation on Fire: Tragic Losses for Egyptian Christians
Asianews reports the toll from violence in Egypt over a mere three day period. Hundreds have been killed, but there is little doubt that Christian churches, businesses, and organizations have been targeted. Here is what Asianews is calling a “representative” list: Catholic churches and convents 1. Franciscan church and school (road 23) – burned (Suez)2. Monastery of the Holy Shepherd and hospital – burned (Suez)3. Church of the Good Shepherd, Monastery of the Good Shepherd – burned in molotov attack...
How Did You Know You Wanted An iPhone?
Did you wake up one morning and think, “I wish I had a phone that would not only allow me to text and call, but play games, get directions, read books, allow me access to all social media and take pictures?” Not likely. You wanted an iPhone because Apple put it on the market. Jim Clifton, CEO at Gallup, says this is no small point. Our economy isn’t waiting for consumers to want to start purchasing things again; it’s waiting...
Have You No Sense of Decency, Sen. Durbin?
Astute Acton readers more than likely are aware already that U.S. Sen. Dick Durbin (D-Ill.) has fired another salvo in the ongoing battle to silence conservative voices. Durbin joins our progressive friends in the Interfaith Center on Corporate Responsibility and As You Sow – both involved in proxy shareholder resolutions that would panies to disclose donations to nonprofits – in their attempts to declare lights-out on the American Legislative Exchange Council. At issue for Durbin is ALEC’s draft legislation called...
Links: Egypt in Flames
Egypt: Coptic church cancels Sunday mass for 1st time in 1,600 years “We did not hold prayers in the monastery on Sunday for the first time in 1,600 years,” Priest Selwanes Lotfy of the Virgin Mary and Priest Ibram Monastery in Degla, just south of Minya, told the al-Masry al-Youm daily. He said supporters of ousted president Mohammed Morsi destroyed the monastery, which includes three churches, one of which is an archaeological site. “One of the extremists wrote on the...
Detroit, Urban Development, and D.G. Hart
Darryl Hart has a bit of a go at “the hyperventilation that goes on in some neo-Calvinist circles when folks talk about the power of the gospel to redeem all of life,” using the woes of the city of Detroit as a trump card. Hart wonders why he hasn’t “seen too many posts from the transformers about Detroit’s decline and bankruptcy.” I don’t know if The Gospel Coalition is going to have anything say about Detroit’s bankruptcy, but Tim Keller...
Infiltrated Hits NYT Bestseller List, Exposes Dodd-Frank
Former Acton research fellow Jay Richards has another bestseller, as of last night–Infiltrated: How to Stop the Insiders and Activists Who are Exploiting the Financial Crisis to Control Our Lives and Our Fortunes. IF you follow free market writers closely, you known that government interventions in the financial markets, rather than too much economic freedom, fueled the housing bubble and paved the way to the subsequent housing collapse and financial crisis. Infiltrated deftly summarizes this, but it’s in two other...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved