The US Bishops and Their Critics
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Copyright the Fraser Institute www.fraserinstitute.org Copyright the Fraser Institute www.fraserinstitute.org Copyright the Fraser Institute www.fraserinstitute.org THE U.S. BISHOPS AND THEIR CRITICS AN ECONOMIC AND ETHICAL PERSPECTIVE WALTER BLOCK TlfFRASER INSTITUTE Copyright the Fraser Institute www.fraserinstitute.org Canadian Cataloguing in Publication Data Block, Walter, 1941- The U.S. Bishops and their critics A discussion of the document: Catholic social teaching and the U. S. economy. Bibliography: p. ISBN 0-88975-085-8 1. Catholic Church. National Conference of Catholic Bishops. Catholic social teaching and the U.S. economy. 2. Church and social problems - United States. 3. Church and social problems - Catholic Church. 4. United States - Economic Policy - 1981 - I. Fraser Institute (Vancouver, B.C.) II. Title. BX1795.E27B56 1986 261.8'5'0973 C86-091481-X COPYRIGHT © 1986 by The Fraser Institute. All rights reserved. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. Copyright the Fraser Institute www.fraserinstitute.org CONTENTS About the Author/vii Chapter 1: Introduction/I PART ONE: PHILOSOPHY/3 Chapter 2: Rights and Liberties/5 I. POSITIVE ECONOMIC RIGHTS/5 Environmental dependency/6 Good will/6 Alterationl7 Agencyl7 Game theory 17 Charity/8 Occam's Razor/8 Incumbency/8 Degree/9 Government/9 Punishment/1O Rights conflicts/ 10 Egalitarianism/ 10 II. THE COMMON GOOD/II III. NON-PRODUCTIVE ENTERPRISEI1I Gentrification/I2 Advertising/I2 IV. PEOPLE BEFORE PROFITS/13 Notesl14 - v - Copyright the Fraser Institute www.fraserinstitute.org PART TWO: ECONOMICS/17 Chapter 3: Employment/19 I. UNIONS/19 Coercion/20 Scabs/22 II. W AGES122 III. UNEMPLOYMENT/24 Discrimination/24 Family farm125 Pricing out of market126 Inflated wage levels/27 Job training/28 Plant c1osingsl29 A vacuum/29 IV. WORKING CONDITIONS/3D A choice/31 Pay for play/32 Notes/32 Chapter 4: Poverty/37 I. INCOME DISTRIBUTION/37 Process/38 "Thou shalt not" /40 II. REDUCING POVERTY/41 Education/42 III. CHARITY /43 Loaves and fishes/44 IV. WELFARE/44 A refutation?/45 Weak family?/46 The Mormons/47 The poverty line/48 Negative income tax/48 The case worker/49 V. DISCRIMINATION/49 A paradox/51 Sexism/51 Asymmetry/52 Notes/53 - vi - Copyright the Fraser Institute www.fraserinstitute.org Chapter 5: Economic Collaboration/57 I. COOPERATION/57 Economic instruction/57 Dieting/59 II. ECONOMIC DEMOCRACY /60 III. PARTICIPATION/61 IV. "BALANCED" CENTRAL PLANNING/61 V. Employee stock ownership plans/62 Employee benefits/63 Setting terms/64 Plant closings/65 VI. SUBSIDIARITY /66 Proximity /67 Notes/68 Chapter 6: International Economic Policy173 A scandall74 I. AGRARIAN DUALISM174 Terms of trade177 Free Trade178 Fair Trade179 Balancing rights/80 A mirage/81 The cushion/82 II. DEBT/83 III. FOREIGN AID/84 Politicization/86 IV. THE MULTINATIONAL CORPORATION/87 Equity/88 Dependency /89 Exploiting workers/89 The U.N.l91 Notes/92 Chapter 7: Conclusion/101 Notes/101 - vii - Copyright the Fraser Institute www.fraserinstitute.org Appendixll03 I. Moral couragel1 03 II. Free Speechl104 Expertisel1 04 Trespass! 106 Harm! 106 Catholic economics! 107 Motive mongering! 108 III. MORAL INDIGNATIONI108 IV. PREFERENTIAL OPTION FOR THE POORI109 V. EXPLOITATIONlllO Corporate welfare bumsl111 Negative impactl112 Common sense! 112 VI. HOW NATURAL IS WEALTHI113 VII. DIALOGUE 1114 VIII. IMMORALITY OF UNEMPLOYMENTI115 IX. OVERPOPULATION!116 Notesl116 Bibliography! 125 - viii - Copyright the Fraser Institute www.fraserinstitute.org ABOUT THE AUTHOR Walter Block is Senior Economist at the Fraser Institute and Director of its Centre for the Study of Economics and Religion. Born in Brooklyn, New York in 1941, Dr. Block received his B.A. from Brooklyn College in 1964 and his Ph.D. from Columbia University in 1972. He has taught Micro economics, Industrial Organization, Urban Economics, and Political Economy at Stony Brook, State University of New York; the City College of New York, New York University; Baruch College, City University of New York; and Rutgers University, New Jersey; and has worked in various research capacities for the National Bureau of Economic Research, the Tax Foundation, and Business Week magazine. Dr. Block has published numerous popular and scholarly articles on economics and is an economic commentator on national television and radio. He lectures widely on public policy issues to university students, service, professional and religious organizations. Dr. Block is Editor of the Fraser Institute books Zoning: Its Costs and Relevance (1980); Rent Control: Myths and Realities (1981); Discrimination, Affirmative Action and Equal Oppor tunity (1982); Taxation: An International Perspective (1984); Morality of the Market: Religious and Economic Perspectives (1985); Reaction: The New Combines Investigation Act (1986), and is the author of Amending the Combines Investigation Act (1982); Focus: On Economics and the Cana dian Bishops (1983); and Focus: On Employment Equity: A Critique of the Abella Royal' Commission on Equality (1985). - ix - Copyright the Fraser Institute www.fraserinstitute.org Copyright the Fraser Institute www.fraserinstitute.org CHAPTER 1 INTRODUCTION* The U.S. Catholic Bishops are to be congratulated for their initiative in entering the treacherous waters of economic and public policy analysis. Although the present response to their Pastoral Letter (henceforth called BP, for "Bishop's Pastoral") is highly critical in many regards, the publica tion of this document is still most gratefully received. "Catholic Social Teaching and the U.S. Economy" comes to us in a historical context where government, despite some recent movement toward de-regulation, still takes upon itself an excessive role in economic affairs. Indeed, it is no exaggeration to say that the activity of the state dominates the economy. In such a situation, it is crucial that "mediating structures," institutions which lie between the citizen and government, be encouraged as much as possible. And the church is now, as it has always been, a mediating structure par excellence. BP is thus welcome if for no other reason than as a means of promoting an alternative to the voice of government in the determination of how society ought to be organized. But the bishops' letter on economics has numerous merits of its own. Among the many virtues of this communication (discussed in detail in the Appendix to the present monograph) is the moral courage which underlies it, and the fact that this exercise in free speech - despite harsh criticisms to the effect tpat it should never have been written - safeguards the right to be heard of the espousers of other unpopular opinions. In addition, BP embodies a justified measure of moral indignation, its "preferential option *The author would like to thank the following for helpful suggestions and com ments, not all of whose advice he had the wisdom to incorporate: Kenneth Boulding, Kenneth Elzinga, Paul Heyne, James Johnston, Dianne Kennedy, Philip Lawler, Richard John Neuhaus, Michael Novak, Michael Parkin, Robert Rogowsky, James Sadowsky, James Schall, George Stigler, Michael Walker. - 1 - Copyright the Fraser Institute www.fraserinstitute.org for the poor" focuses long overdue attention on the plight of this segment of the population, and it insightfully explores the role of the government in enriching the wealthy. As well, this missive analyses the naturalness of wealth, it quite properly deems as "immoral" the nation's falling but still significant rate of unemployment, and it courageously refuses to make con cessions to the latter-day Malthusians who demand massive birth control measures as a means of curing world starvation. - 2 - Copyright the Fraser Institute www.fraserinstitute.org Copyright the Fraser Institute www.fraserinstitute.org Copyright the Fraser Institute www.fraserinstitute.org CHAPTER 2 RIGHTS AND LIBERTIES Having very briefly noted the praiseworthy elements of BP, we are now ready to consider the errors committed by the authors of this document. In what is to follow, we shall claim that the bishops have committed many and serious mistakes of commission and omission, of fact and value, of philosophy and economics. Lest there be any misinterpretation, however, let it now be said that none ofthese lapses from logic justify a demand that the bishops remain silent. Whose work, after all, is error free - on this side of the Garden of Eden? I. POSITIVE ECONOMIC "RIGHTS" Positive economic "rights" form one of the basic building blocks of the bishops' entire philosophy. The adherence to this position appears early in the BP. It is repeated on numerous occasions, it is the mainstay of Sec tion II, Ethical Norms for Economic Life, and it informs much of their discussion in Part Two, which is devoted to public policy recommendations. For example, the bishops demand that the nation must take up the task of framing a new national consensus that all persons have rights in the economic sphere and that society has a moral obligation to take the necessary steps to ensure that no one among us is hungry, homeless, unemployed, or otherwise denied what is necessary to live with dignity. 1 And several of the bishops' supporters have carried this even one step fur ther, explicitly calling for a new "Economic Bill of Rights," to supple ment that which is already part of the U.S. Constitution. 2 - 5 - Copyright the Fraser Institute www.fraserinstitute.org This concept, however, is deeply flawed, and even mischievous. In order to demonstrate this, we shall compare the traditional view of negative rights with the newer "variety" urged by the bishops. The disparity between them shall be a measure of just how different are the bishops' "positive rights" from those in the traditional view. In classical philosophy, negative rights or negative liberty consist solely of the right not to have physical force, or the threat thereof, initiated against oneself. Each person, then, has the right not to be murdered, raped, rob bed, assaulted, battered, etc.