Home
/
RELIGION & LIBERTY ONLINE
/
The 6 Elves of Capitalism
The 6 Elves of Capitalism
Mar 18, 2025 12:49 PM

In “The Elves and the Shoemaker,”the famous fairy tale by the Brothers Grimm, a cobbler and his wife struggle to survive, barely making enough to eat (never mind investing in the future of their business).

One morning, however, they wake to find that theirlast scraps of leather have been turned into a remarkable pair of shoes. Not knowing the source of such craftsmanship — and apparently incurious — the cobbler sells them off at a higher price, gaining new capital to grow his business. Each night thereafter, the miracle continues,and theenterprise grows in turn.

Months later, they finally take an interest in the source of such help,staying awake through the night to spot two naked elves, each happily laboring to make more shoes. The wife sews clothes for the elves, who, after finishing their work, express their thanks and graciously depart, never to be seen again.

One can find several morals or lessons in the tale, but Jeffrey Tucker does a marvelous job of highlighting its themes on the meaning of work, the gift of exchange, and the glories of capitalism.

“We were born into a world of amazing prosperity that our generation did not create,” he writes. Much like the cobbler and his wife, we find ourselves stumbling onto civilizational blessing, rather than striving, struggling, and warring for it. “Most of us never did anything of our own merit to cause us to benefit from this amazing world,” he continues. “At our birth, we woke up in the morning and found a finished and beautiful pair of shoes given unto us.”

Yet, also like the cobbler and his wife, we show little curiosity or appreciation for the sources of such blessings, or the institutions and ideas that enable them.

Indeed, since the beginnings of economic liberalization, many have preferred tooutright oppose such features,even as they relish in newfound freedoms and conveniences. (See: Bernie Sanders supporter holding a smartphone)

“They are plotting to kill the elves,” Tucker concludes. But in this case, there are six, not two:

(What follows isquoted directly from Tucker, but excerpted/abbreviated with slight changes to format. Read the full thing here.)

Private property: “It would not be necessary if there were a superabundance of all things, but the reality of scarcity means that exclusive ownership is the first condition that permits us to improve the world. Collective ownership is a meaningless phrase as it pertains to scarce resources.”Exchange: “So long as it is voluntary, all exchange takes place with the expectation of mutual benefit. Exchange is a step beyond gift giving because the lives of both parties are made better off by the acquisition of something new. Exchange is what makes possible the formation of exchange ratios and, in a money economy, the development of the balance sheet for calculation profit and loss.”Division of labor: “This is about more than dividing up productive tasks. It is about integrating everyone into the great project of building civilization. Even the master of all talents and skills can benefit by cooperating with the least skilled among us. The discovery of this reality is the beginning of true enlightenment. It means the replacement of war with trade and the replacement of exploitation with cooperation.”Risk-taking entrepreneurship: “Uncertainty over the future is a reality that binds all of humanity; entrepreneurs are those who do not fear this condition, but rather see this as an opportunity for improving the lives of others at a profit.”Capital accumulation: “[This is] the amassing of goods that are produced not for consumption, but for the production of other goods. Capital is what makes possible what F.A. Hayek calls the ‘extended order,’ that intertemporal machinery that stabilizes the events of life over time. Capital is what makes planning possible. It makes the hiring of large workforces possible. It allows investors to plan for and build a bright future.”The desire for a better life and the belief that it can happen if we take the right steps: “It is the belief in the possibility of progress. If we lose this, we lose everything. Even if all the other conditions are in place, without the intellectual and mitment to climb higher and higher out of the state of nature, we will slip further and further into the abyss. This state of mind is the essence of what came to define the Western mind, and which has now spread to the entire world.”

It took the shoemaker and his wife several months and plenty of success to pause and appreciate the elves, but when they did, they took immediateaction to show their gratitude. They valued theirrole in the flourishing of theenterprise, and when es to the ideas and ecosystems that drive civilizational prosperity, so can we.

“So too should we clothe the institutions that made our world beautiful in order to protect them against the elements and their enemies,” Tucker concludes. “And even after they scurry off into the night, we must never lose consciousness of what they have done for us.”

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
Conservation and Entrepreneurial Environmentalism
I found this profile of Mark Tercek, the former Goldman Sachs managing director who was tapped to head the Nature Conservancy, raises some profound issues concerning the relationship between economics and the environment: Tercek, 55, e to the Conservancy to fight financial brush fires. With the help of his board and the input of the Conservancy’s 600 scientists, he wants to remake the face of the American and global environmental movements. He has no quarrel with the current model—largely built...
When I Grow Up
“What do you want to be when you grow up?” That’s mon question asked of children the world over. ChildFund International has put out their global survey of children for 2012, and that’s one of the questions they asked, with some intriguing results. When asked, “If you could grow up to be anything you wanted, what would you be?” there were some rather remarkable disparities between the answers of children in the developed and the developing world. Kids in the...
Something Vastly More Powerful Than Evil
In his latest Forbes column, Rev. Robert A. Sirico explains why despite the tragedy in Newton we can speak of joy during this Christmas season: When we ask our bewilderedwhy? –we are not looking for data points.Even less should we offer glib responses in the face of this shattering loss – this modern-day slaughter of the innocents. We are, instead, seeking themeaningin the face of thismysterium iniquitatis.The meaning we seek is not so much the significance of evil as the...
Why Christians in Business Should Read Poetry
Writing for the Harvard Business Review, my friend (and coauthor) John Coleman argues that business professionals can benefit from reading poetry. While his article is not directed at people of faith, I think his claims are particularly relevant to Christians in the business world: Poetry can also help users develop a more acute sense of empathy. In the poem “Celestial Music,” for example, Louise Glück explores her feelings on heaven and mortality by seeing the issue through the eyes of...
Social Engineering Makes For Poor Economic Policy
Writing over at The Atlantic, American Enterprise Institute scholar Christina Hoff Sommers shares the unsettling story of what a growing number of Swedish activist groups and political factions are attempting to do to “traditional” gender roles. Is it discriminatory and degrading for toy catalogs to show girls playing with tea sets and boys with Nerf guns? A Swedish regulatory group says yes. The Reklamombudsmannen (RO) has reprimanded Top-Toy, a licensee of Toys”R”Us and one of the largest panies in Northern...
Should We Tax Volunteer Work for Charities?
During the debate about how to resolve the fiscal cliff crisis, lawmakers on both sides have considered reducing the charitable tax deduction. That strikes many people as the wrong approach (especially those of us who work for non-profits!) even though we may not be able to explain why it’s such a bad idea. Fortunately, John Carney has provided a superb explanation for why reducing or removing this deduction is counterproductive. For instance, changing the charitable deduction as Carney notes, has...
Court: Justice Dept. Can’t Just Say ‘Trust Us, Changes Are Coming’
“There is no, ‘Trust us, changes ing’ clause in the Constitution,” wrote Judge Brian Cogan in his ruling issued two weeks ago against a Justice Department motion to dismiss the Archdiocese of New York’s lawsuit against the HHS mandate. “To the contrary, the Bill of Rights itself, and the First Amendment in particular, reflect a degree of skepticism towards governmental self-restraint and self-correction.” More federal judges ing to the same conclusion. Earlier this week a federal appeals court in Washington,...
How Should Christians View Property?
Étienne Cabet, a French philosopher and founder of a utopian socialist movement, once said: “Communism is Christianity.” The concept of property has existed longer than Western Civilization; trying to understand what property is and who can claim it has been an important issue for centuries. But, what is the Christian view of private property and ownership? Cabet, and others who believe that Christianity supports the concept munism or socialism, base their opinion on one particular passage of Scripture. In Acts:...
Free Kindle Ebook: ‘A Field Guide to the Hero’s Journey’
Acton is offering a free Christmas gift: a free Kindle download of the new book, A Field Guide to the Hero’s Journey. The book, co-authored by Jeff Sandefer and Rev. Robert Sirico, has been called a “the modern ‘how-to’ for entrepreneurs working on plishing big things” by Andreas Widmer, and is a terrific book not only for adults but for young people. You can also listen to the authors discussing their collaboration on this book on this Radio Free Acton...
Economics is Too Important to be Left to Economists
I rather like Serene Jones’ piece in Huffington Post, “Economists and Innkeepers.” Jones got some things right. She knows that Christian Scripture teaches many economic lessons, like subsidiarity and stewardship (although she doesn’t use those terms.) She says, “Economic theory is replete with theological and moral assumptions about human nature and society” and that is correct. As Istituto Acton’s Kishore Jayabalan reminds us, Things like the rule of law, a tradition of equality for the law, which should cut down...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved