Home
/
RELIGION & LIBERTY ONLINE
/
Free Markets Are Necessary But Not Sufficient
Free Markets Are Necessary But Not Sufficient
Jan 14, 2026 7:38 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
Right Online Austin: Global warming
While former Vice President Al Gore mesmerized activists at Netroots Nation this morning with a surprise visit to Austin, Texas, a different kind of conversation about global warming was taking place at the Right Online conference in the same city. The intensity and energy during the global warming session was by far the most passionate of any of the sessions I have attended here. It seems some conservative activists may be undecided about all the scientific data concerning global warming,...
Expanding energy exploration
Skyrocketing energy costs have, among other effects, led to interesting political maneuvering. Specifically, the question of expanding of domestic energy resources (e.g., offshore drilling) has e live for this first time in decades. For that to happen in the current Congress, of course, requires that there be at least a certain measure of bipartisan consensus. As Michael Franc explains on NRO today, there have indeed been a few Democratic defections to the pro-drilling side. These Democrats are caught between the...
CRC Sea to Sea tour week 3
The third week of the CRC’s Sea to Sea bike tour has pleted. The third leg of the journey took the bikers from Boise to Salt Lake City, a total distance of 444 miles. The “Shifting Gears” devotional focuses especially on the theme of discipleship, of following Jesus in this third week. One way in which we follow Jesus is in munity of disciples. And as the day 16 devotional reads, “You can share everything and take turns doing the...
Right Online Austin: Old and new media
An excellent talk by from the Media Research Center, “Understanding and Critiquing Old Media,” opened today’s afternoon session at Austin’s Right Online summit. The speakers clarified some basics about journalism, such as the fact that typically reporters don’t write their own headlines (copy editors do) or that there is an unofficial reporter’s code of ethics from the Society of Professional Journalists. A good deal of the talk revolved around consistent forms of bias found in the media, most of which...
Right Online Austin: Samsphere Session
The Sam Adams Alliance hosted a session titled “Samsphere” here in Austin, Texas at the Defending the American Dream conference. After a brief biography of American Founder Samuel Adams, discussions turned to improving networking and message organization for individuals and mitted to freedom and political liberty. In a nutshell, the purpose of Samsphere is to network pre-existing bloggers together into single or shared networks. The Sam Adams Alliance also spent much of their discussion focusing on the importance of strengthening...
Guns, the right to life, and international moral consensus
In this week’s Acton Commentary, I explore the differing mainstream cultural views of gun rights and abortion in the United States and Europe. The point of departure is last month’s Supreme Court decision in DC v. Heller (07-290) striking down the District’s handgun ban (SCOTUSblog round-up on the decision here). In “Guns, Foreign Courts, and the Moral Consensus of the International Community,” I write that the “tendency to invoke foreign jurisprudence is ing more troubling as it es clearer that...
Religion and Liberty: Theology at Work
The Winter issue of Religion & Liberty is now available online. The interview with David W. Miller is titled, “Theology at Work: Faithful Living in the Marketplace.” Miller is the executive director of the Yale Center for Faith and Culture at Yale Divinity School, and co-founder and president of the Avodah Institute. Miller brings an unusual “bilingual” perspective to the academic world, having also spent sixteen years in senior executive positions in international business and finance. Miller’s book, God at...
Right Online Austin: Robert Novak
The keynote speaker for the Right Online conference tonight was conservative columnist and mentator Robert Novak. Talking about his latest book Prince of Darkness: 50 Years Reporting in Washington, Novak declared that if you want to know why they call him the Prince of Darkness in Washington it’s because he supports limited government, low taxes, and freedom in the economic sphere, and that’s “enough to make you the Prince of Darkness in Washington.” Novak called Democratic presidential nominee Barack Obama...
Virtue and positive law
In the July/August issue of Touchstone, which features a cover story by Acton research director Sam Gregg, “The European Disunion,” a bit of wisdom is passed along to us by senior editor Anthony Esolen in the magazine’s section, Quodlibet: If you have a virtuous people, you don’t need quite so many laws, and the laws you do pass will have a lot less to do with restraint than with man’s creative participation in God’s governance of the world. This statement...
Right Online Austin: Politics and Christianity
By almost any measure, the first Right Online conference, as part of the Defending the American Dream summit in Austin, TX, has to be judged a success. The organizers of the event weren’t sure quite what to expect. How many bloggers and new media folks would attend? On the first day the summit organizers had to rely on special support given by the hotel because initially there were not enough lunches available…there were so many more people in attendance than...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved