Capitalism Needs Social Conservatism

For the past week, I've written about the decline of the nuclear family, with follow-up posts about divorce and sex education, and about the negative impact of the of the welfare state on family formation.  These post have generated some wonderful discussions and input from followers, and I've been surprised by their popularity.

As I wrote in "Values Have Consequences," I'm devoting Friday posts to discussions of social conservatism.  Social conservatism is increasingly the red-headed stepchild of the traditional Republican "tripod" coalition that also includes national security and economic conservatives (with the rise of Trump, populist nationalism could count as a fourth leg).  Politically, this marginalization makes some sense, as it's not likely that fifty or sixty years of cultural attitudes and values will be changed at the ballot box.

Nevertheless, social conservatism is an important leg of the tripod.  Indeed, I would argue that the three coalitions are not at odds, but create logical synergies that allow each leg to stand.  The stool is much more stable when the three legs work together.

Economic conservatism--by which I mean the belief that freer markets, fewer and lighter regulations, and lower taxes, or what is more properly called neoliberalism (after the classical liberalism of the 18th-century thinkers like Adam Smith)--is wonderful and hugely important.  It's led to massive gains domestically and globally, lifting untold millions off people out of poverty.  It allows people to enjoy a greater variety of goods and labor-saving devices, and provides more leisure time (and plenty of things to do during that time).

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But free markets unmoored from guiding principles, strong and stable institutions, and the rule of law can morph into mindless Mammon worship.  Without a shared sense of trust and belief in human dignity, capitalism becomes cold and abstract.

Further, full-fledged economic liberalization without the limiting principles applied by constitutionalism and a morality supported by strong families and a robust civil society can lead to socially-destructive disruptions and behaviors.

As I've argued many times, making mistakes or bad choices is the necessary price of liberty.  But for self-government to work effectively--and to avoid social instability--a healthy dose of social conservatism is the best medicine.

 

Former Arkansas Governor Mike Huckabee wears the most socially conservative outfit ever; later, he played bass on Fox News.

(Image Source:  https://en.wikipedia.org/wiki/File:Huckabeemike.JPG; photo by Craig Michaud)

To offer an illustration from recent history, contrast the post-Soviet experiences of Poland (and most of Eastern Europe) with that of Russia.  Despite decades under Communism--an ideology that was aggressively atheistic, stressing loyalty to the state and Communist Party over all else--Poland roared back into the West.  It adopted neoliberal (modern conservative) economic policies, and was one of the few European nations not to suffer severely during the Great Recession.

Russia similarly adopted "shock therapy" after the Soviet Union collapsed for good in 1991.  Rather than experiencing a huge economic boom, however, well-connected former Communists and others close to the old regime made off like bandits, leaving most Russians left holding the bag.

What's the difference?  For one, the Russians lived under Communism for nearly a generation longer than the Poles, meaning there were several generations of downtrodden, state-dependent Russians by the time the USSR collapsed.  Many of these Russians were unable to adjust to a free-market system after living in a closed economy for so long.

Another key difference--and one that I think is extremely significant--is that Russians lost any scrap of civil society they might have possessed prior to the Bolshevik takeover in late 1917.  Civil society--the institutions between the basic family unit and the government, like churches, schools, clubs, civic organizations, etc.--was automatically preempted when every club, organization, or activity became part of the Soviet government.  The severely crippled (and, as I understand it, collaborationist) Russian Orthodox Church was unable or unwilling to push back against Soviet rule, providing little in the way of a spiritual alternative to the totalizing influence of Communism.

"[F]ree markets unmoored from guiding principles, strong and stable institutions, and the rule of law can morph into mindless Mammon worship."

Poland, on the other hand, managed to maintain its deep Catholic faith.  The Catholic Church as an international organization (and with powerful, influential popes, most notably the Polish anti-Communist John Paul II) could never be wiped out completely by Soviet Communism.  Further, the Poles formed the Solidarity trades union movement, which offered an alternative to official Communist organizations.

Thus, after the dissolution of the Soviet Union, Poland emerged with a strong civil society anchored in a richly Christian worldview and ethic.  The shared sense of morality--one that stresses mutual respect, the dignity of human life, and the importance of honesty--allowed the complex deals and uptempo economic exchanges of capitalism to occur smoothly and rapidly.  From these civil and religious values came a firmer grasp of and respect for the rule of law, making predictable economic activity and long-term planning possible.

Russia, on the other hand, devolved into a fast-paced, nationwide run on the national cupboard.  Those with good connections grabbed whatever public funds and goodies they could.  Normal Russians couldn't figure out whey their government checks and free lunches stopped coming, and couldn't understand why (or how) to pay taxes.  With the collapse of the Soviet Union, all civic organizations ceased to exist, because they were all part of the Soviet government.  Without any civil society or other enduring institutions to model good behavior and to stress and enforce moral values, Russia struggled--and continues to do so--to adapt to global capitalism and democracy.  Not surprisingly, they've turned to a dictatorial strongman for guidance.

***

What of the American context?  As I've written before, I'm skeptical of full-fledged libertarianism--what I would broadly define as the marriage of economically conservative and socially liberal views--because it fails to acknowledge the need for strong moral values to uphold its own economic assumptions.  Liberty and self-government can only really work when coupled with self-imposed order and restraint.  Without moral common ground and shared values that stress self-control, liberty rapidly turns to libertinism.  Libertinism without a great deal of wealth leads to shattered lives, which in turn wreck families and communities.

Eventually, unbridled, unchecked lasciviousness--even among (formerly) responsible adults--results in social chaos, requiring a dwindling number of hardworking, honest, and thrifty individuals to pay for the ramifications of poor moral choices that have been magnified many times over.

"[L]ibertarianism... fails to acknowledge the need for strong moral values to uphold its own economic assumptions.  Liberty and self-government can only really work when coupled with self-imposed order and restraint."

Capitalism's blessing of unparalleled abundance is also a potential curse.  Without a strong civil society that stresses good moral values--and without proper historical perspective--it becomes easy to take that abundance for granted.

That abundance also allows, for a time, more and more individuals to pay for the price of bad decisions.  Prior to the modern era, few people were wealthy enough to risk the negative consequences of immorality.  Now, Americans and Westerners enjoy a level of material comfort and well-being that can absorb at least some of the unpleasantness of questionable choices.  Over time, however, that security breaks down.

Richard Weaver likened the situation to an alcoholic who is so addicted to his drink, he's unable to do the work necessary to pay for his addiction.  The more he needs the alcohol, the less capable he becomes of obtaining it.  Likewise, the more individuals become addicted to luxuries, the less able they are to work hard to maintain them.

To avoid the fate of Weaver's drunk, we must recognize the importance of social conservatism.  While we should maximize individual liberty as much as possible, and within the bounds of the Constitution, we should also stress the moral and religious underpinnings that make that liberty both possible and responsible.

The Land of Plenty--Thanks to Capitalism

Americans celebrated the Fourth of July this past Monday.  For European readers (apparently, I get between two or three French readers every day--merci!)--or people living in progressive enclaves in the cities or up north--allow me to explain how our Independence Day celebrations work:

- Tons of food:  As will come as no surprise, Americans love to eat.  What better way to celebrate the bounteous blessings of freedom than by consuming copious amounts of barbecue (pulled pork, of course, preferably mustard- or vinegar-based)?

- Fireworks:  We like to blow stuff up (not the way radical Muslims do--we do it for fun, or to protect the weak and defenseless).  Note that we are the land of glam metal and Kid Rock.  Again, what better way to celebrate prosperity than by exploding lights in the sky, all choreographed to the strains of "Rock Me Like a Hurricane"?

- Family:  Despite the rapid growth of children born out of wedlock, and increased rates of co-habitation (and decreased rates of marriage), we Americans still honor the importance of family as the building block of any productive society.  Families also instill the values of a nation, and are the incubators of the kind of self-government and personal self-control that are the cornerstones of a free people and a free republic.

There are, of course, many other reasons to love the Fourth of July--great weather, awesome parades, bald eagles--but what makes all of this celebrating possible?  How is it that even the least-fortunate Americans are able to enjoy a hot dog and fireworks on the Fourth?

 

Sure, it's not South Carolina pulled-pork, but I'd eat it.

(Source:  http://www.public-domain-image.com/free-images/food-and-drink/barbecue-grilling-food/porterhouse-steaks-grilling-barbecue-grills-meat)

The answer is the prosperity made possible by our Constitution and the Declaration of Independence.  The Declaration clearly sets forth the right of all humans to "Life, Liberty, and the pursuit of Happiness."  The "pursuit of Happiness" is no idle phrase or call to hedonism; rather, it enshrines the freedom of any person to pursue that life which is most fulfilling to him, so long as he does not infringe upon the liberty of other free men.

The Constitution--which Abraham Lincoln called the "frame of silver" around the "apple of gold" of the Declaration--provides the legal and institutional framework to safeguard liberty.  The Constitution is also, as free-market economist Milton Friedman once said, the "rules" of the economic "game."  Not only does it protect the rights of individuals against the power of the state; it also spells out how individuals can pursue happiness by limiting the government's ability to jury-rig the economy in support of favored or well-connected interests (at least, that's how it's supposed to work).

The Constitution establishes an incredibly flexible economic framework that strictly limits congressional power to a few areas.  In other words, the Constitution enshrines a (lightly regulated) free market capitalist system.

Capitalism--when supported by a pro-growth government, protected by rule of law and the courts, and sustained by a free and responsible people--has done more to improve human life than any other economic or political system ever devised.  When China adopted free market reforms in the 1980s, it transformed from a massive, impoverished nation that experienced widespread famine and low productivity throughout the Maoist years into an economic powerhouse.

(China's continued reliance on corporatist schemes and non-representative authoritarian rule, however, has finally caught up with it; China will either become more free politically, or more repressive and, therefore, less productive; my bet is on the latter.)

 "The 'pursuit of Happiness' is no idle phrase... rather, it enshrines the freedom of any person to pursue that life which is most fulfilling to him."

Capitalism works so well that we occasionally seem to enjoy too much prosperity.  Throughout history, people have struggled against hunger.  Now, people in the Western world struggle to lose weight.  We often see the worst cases of obesity among the poorest members of society.  What kind of system creates so much food, at such a low cost, that it actually makes poor people fat?

For that matter, capitalism has created so much wealth, we can now afford to pay more money for food that is produced less efficiently.  The very hipster-elites that decry capitalism and "systems of oppression" at Bernie Sanders rallies can only enjoy their trust-funded non-GMO, organic, pesticide-free kale salads because capitalism gives people the ability to choose to eat these foods (for what it's worth, I'm on an all-GMO, factory-farm only diet).

Imagine transporting an American from 1933--during the Great Depression, and not even 100 years ago--to 2016.  He would be dumbfounded to find poor Americans struggling with fatty diets, and skeptical to witness the spiritual descendants of the New Dealers pushing for limits on the size of Coke bottles he could purchase.  He would also be blown away by the massive diversity of goods and services available (like the two-liter bottle of Coke).

Capitalism is not perfect.  It depends upon a fair and predictable legal system, and a people committed to self-control and self-government.  If anything, capitalism creates so much luxury that people become unwilling to do the work necessary to maintain their comfortable lifestyles.  It also creates enough wealth to shield its beneficiaries from poor decisions and bad moral choices, the costs of which are shifted to responsible citizens.

Nevertheless, capitalism is vastly preferable to the alternatives, and for every layabout there are dozens of eager upstarts ready to try something new.  To continue to enjoy its fruits, we must recommit ourselves to personal self-control, self-government, and moral instruction.  Otherwise, we'll party ourselves into perdition, all the way voting ourselves "free" goodies from the public treasury, because the prosperity we've earned will been seen as a "right," not a privilege.

Let's avoid this fate.  Let's exercise a little self-control--and demand it of our elected officials, too.  Then let's eliminate confusing, onerous regulations and once again unleash the creative potential of 330 million Americans.  That's a recipe for long-term happiness.

Life after Brexit: Reflections and Predictions

I spent about two hours crafting a long, detailed explanation about my predictions for what will happen now that Brexit has won.  Unfortunately, my magisterial masterwork was unceremoniously deleted as I tried to update a quotation from an op-ed penned by National Front party leader Marine Le Pen (I'm sure my progressive friends, who will instantly dismiss anything coming from Le Pen's, er, pen as racist and xenophobic, will consider this some form of poetic justice).  So, rather than try to recreate that effort, allow me to phone in something quickly so I can get to sleep:

- Markets:  Markets have been, and will continue to be, roiled by the news of Brexit.  However, the Brexit vote--as I've argued repeatedly (here, here, here, and here)--was never about economic concerns.  The only argument the Remainers had, however, was fear:  fear of economic turmoil, fear of extreme nationalism, fear of a trade war, fear of losing benefits.

Progressives are inherently materialists.  They never can understand why humble folks--many of whom were the beneficiaries of sweet EU largess--would "vote against their economic interests."  This confusion results from both a failure to realize that redistribution of wealth ultimately harms everyone, including the beneficiaries thereof; and possession of a purely materialist worldview, that sees other concerns--religious belief, thirst for liberty, personal convictions--as illusory at worst and cynical at best.  The progressive inevitably projects his own material cynicism on those he criticizes.

(For a beautiful and uplifting description of the importance of democracy and its link to traditional Christianity, check out this post from the blog Archbishop Cranmer, entitled "Brexit, the Bible and Democracy:  The Judgment of God is the Voice of the People.")

Once the terms of the UK's exit are negotiated and the "new order" is established, markets will stabilize.  My hope is that the Brits will use this new birth of freedom as an opportunity to clean regulatory house at home; having weaned themselves from the teat of European goodies, they will continue by declaring independence from their own heavy regulations and taxes.  I believe Great Britain is facing an historic moment akin to Prime Minister Margaret Thatcher's election in 1979, which saw Britain restore liberty, as Parliament regained power from the state-run industries and the illiberal trades unions.

- Great Britain:  The two major political parties--the Tories and Labour--are experiencing internal upheaval.  The "Leave" side won Brexit because a substantial number of working-class Labour voters broke rank and joined about half of the Tories to achieve victory.  Labour's Bernie Sanders-esque leader, Jeremy Corbyn, is facing a vote of no-confidence. His 70s-style, statist socialism was out of step with Labour as it was.

 

Euroskeptics:  Good Policy, Bad Barbers

(Source:  https://upload.wikimedia.org/wikipedia/commons/thumb/2/25/Boris_Johnson_July_2015.jpg/800px-Boris_Johnson_July_2015.jpg)

On the Conservative side, Prime Minister David Cameron has pledged to step down.  I predict (and hope) that Boris Johnson will become the next PM, and take charge of Brexit negotiations.

What of the United Kingdom Independence Party?  I initially thought UKIP would begin to fade, having achieved its singular mission of the past twenty-five years:  to get Britain out of the the European Union.  That was, however, until I saw Nigel Farage's uproariously funny (and spot-on) speech before the European Parliament.  Soak in the sweet boos as the globalist elites watch their utopian schemes implode before their very eyes.  Farage's speech is the kind of brash victory lap that would make him a star among movement conservatives in the United States.  I don't think we've heard the last of him.

- The European Union:  There will be other referendums--unless German Chancellor Angela Merkel, with support from France and Italy, clamps down.  There is already talk of stepping up the pace of "ever closer union," with the EU establishing a European Army and further eroding national sovereignty of its members.  If the EU gets an army, it will finally be able to accomplish by force what it has so far only been able to do through economic coercion and trickery:  create a European superstate that tramples both national sovereignty and democratic checks on unbridled power.

I hope there will be referendums in many more countries; I suspect there will be at least in the Netherlands and Poland.  Poland is heavily Catholic and traditional, and is naturally wary of Germany consolidating power.  Its worldview does not fit neatly into the progressivist schemes of the European Union.

"If the EU gets an army, it will finally be able to accomplish by force what it has so far only been able to do through economic coercion and trickery:  create a European superstate that tramples both national sovereignty and democratic checks on unbridled power."

Look for Marine Le Pen, leader of the National Front, to continue to gain ground in France.  Le Pen has done much to purify the party of her father's anti-Semitism and blatant racism.  There are those that argue that the party is still xenophobic, and that its rhetoric now is merely a "dog-whistle" to closet racists.  This strikes me as inaccurate.  It would be akin to arguing that the Democratic Party in the United States is still racist because it supported first slavery and then segregation, the latter as recently as the 1960s.

Here are some choice excerpts from an op-ed Le Pen contributed to The New York Times, entitled "After Brexit, the People's Spring is Inevitable":

"British voters understood that behind prognostications about the pound’s exchange rate and behind the debates of financial experts, only one question, at once simple and fundamental, was being asked: Do we want an undemocratic authority ruling our lives, or would we rather regain control over our destiny? Brexit is, above all, a political issue. It’s about the free choice of a people deciding to govern itself. Even when it is touted by all the propaganda in the world, a cage remains a cage, and a cage is unbearable to a human being in love with freedom....

"One thing is certain: Britain’s departure from the European Union will not make the union more democratic. The hierarchical structure of its supranational institutions will want to reinforce itself: Like all dying ideologies, the union knows only how to forge blindly ahead. The roles are already cast — Germany will lead the way, and France will obligingly tag along."  (Emphasis added)

 

 Is Frexit Next(it)?  Not if Germany has anything to say about it.

(Source:  http://ian.macky.net/pat/map/fr/fr.html)

As the sinking ship of the European Union takes on water, watch for it to grow increasingly tyrannical in its flailing desperation to remain afloat.  Perhaps pressure from Eastern European members will help aright the ship and move the EU toward reform that allows national sovereignty while maintaining more appealing aspects of the organization, such as the free trade zone.  However, the Eurocrats in Brussels will not give up their posh, secure jobs and their cosmopolitan lifestyles so easily, much less their incredible power over the peoples and (semi-)sovereign states of Europe.

The peoples of Europe and the United States fought two world wars in the last century to prevent an imperial and fascist Germany from ruling the Continent for a reason, and European Realpolitik has been premised on a balance of powers since 1815, and really as far back as the Treaty of Westphalia in 1648.  A supranational United States of Europe, at least as conceived by progressive Europhiles, is unsustainable and unworkable given the cultural, linguistic, and economic diversity of Europe.  Free trade between free nations is wonderful; coerced and artificial unity through heavy-handed, undemocratic edicts is the height of tyranny.