Home
/
RELIGION & LIBERTY ONLINE
/
Free Markets Are Necessary But Not Sufficient
Free Markets Are Necessary But Not Sufficient
Oct 9, 2024 12:30 AM

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
How to understand the demand curve
Note: This is the secondpost in a weekly video series on basic microeconomics. To demonstrate how much of a good or service people are willing to buy at different prices, economists often use a graph called the demand curve. In this video, Marginal Revolution University revealswhat a demand curve is, explains “why people go crazy on Black Friday,” and shows how people respond to changes in the price of oil. (If you find the pace of the videos too slow,...
The gospel as pearl and leaven
In its 2,000-year history, the church has actively integrated evangelism and social action in powerful and transformative ways. Yet for many of today’s Christians, we feel as though we must choose between a life of ministry and cultural engagement, that our vocational paths areinevitably torn between “saving souls” and “serving justice.” In the Bible, however, we seeboth calls woven together — “fill the earth and subdue it” (Gen. 1:28) and “go and make disciples of all nations” (Matt. 28:19). Theywere...
Finance, Faith, and Human Flourishing
Samuel Gregg lecturing at Acton University. Samuel Gregg’s most recent book For God and Profit continues to receive great reviews. The most es from author and speaker John Horvat, II at The Stream. Horvat begins his review by highlighting the way Gregg reconciles the pursuit of profits with Christianity. He says this: Early in the book, Gregg establishes that profit through finance can be realized “provided that es first and that the profit is (1) understood as a means to...
Rhode Island makes it difficult to suspend students
The current problems with the school-to-prison pipeline often start with poor school discipline policies. Various school discipline policies and tactics have e under criticism for being overly harsh—often causing students to drop out of school. The frequent use of suspension and expulsion for minor offenses has monplace in many schools across the country. Over the summer Gina Raimondo, the Democratic governor of Rhode Island, signed a bill into law making it harder for schools to suspend students for minor infractions....
We hate politics and the media because they lower our status
“I have a simple hypothesis,” writes economist Tyler Cowen. “No matter what the media tells you their job is, the feature of media that actually draws viewer interest is how media stories either raise or lower particular individuals in status.” Cowen believes this explains why people “get so teed off” at the media: The status ranking of individuals implied by a particular media source is never the same as yours, and often not even close. You hold more of a...
Review: Samuel Gregg’s latest ‘should be on every Christian’s reading list’
The US Review of Books recently analyzed Samuel Gregg’s latest book, For God and Profit. John E. Roper, the journalist who wrote the review, gave For God and Profit a “RECOMMENDED” rating. Beyond the rating, Roper, had some very positive remarks about Gregg’s book. He said this: The author knows he has his work cut out for him. Many Christians have been indoctrinated with a general distrust of both money and its effects on society. This often translates into the...
Why being able to trust strangers leads to prosperity
My mother would be mortified by my behavior. Since before I could walk she warned me about “stranger danger”: Don’t get into a car with strangers; don’t accept candy from strangers; don’t’ go into a strangers house, etc. What would she think if she knew I had taken an Uber to an Airbnb? Growing up in the 1970s parents and teachers drilled into my young brain the idea that the most dangerous people in the world (aside from Commies) were...
Angus Deaton schools Italians on economics
But was anyone listening? That’s my question after attending the 2015 Nobel-prize-winning economist‘s talk last night in Rome at the Vatican-sponsored Cortile dei gentili(Court of Gentiles). Like the other speakers, Deaton voiced his concerns about e inequality. Unlike the others, however, he said much of it is caused by crony capitalism, a term whose meaning seems to have been lost on the Italian interpreter and hence the audience. She described it as “a type of capitalism” and “negative capitalism” but...
Radio Free Acton: Karl Zinsmeister on Philanthropy and Education Reform
On this edition of Radio Free Acton, we speak with Karl Zinsmeister, Vice President at Philanthropy Roundtableand former chief domestic policy advisor to President George W. Bush, about efforts to improve public education es over the years, why charter schools are succeeding where past reform efforts have failed, and the role of private philanthropy in fostering that success. Karl will be kicking off our Evenings at Acton seriesthis fall on Monday, October 3rd with a lecture entitled Indispensable: How Philanthropy...
Will free exercise of religion survive as a legal concept?
Is the ultimate repository of authority and control human or divine? While that is a religious question, how we answer has profound ramifications on policy and law. In fact, as Marc Degirolami notes, the answer may determine whether free exercise of religion can survive as a legal concept: One of the ways that modernity has answered this challenge is by appropriating “religion” and transforming it from a duty that one owes a creator to a duty that one owes to...
Related Classification
Copyright 2023-2024 - www.mreligion.com All Rights Reserved