In defense of capitalism
#71
weeds Wrote:I think it's a fallacy to believe that the free market is an amoral system. It requires quite a high level of morality in order to work. If fraud is widespread, or private property is not respected, or people don't honor their contracts, the free market system falls apart because people will avoid doing business with each other as much as possible for fear of getting ripped off. The economy will slow down. Capitalism can't exist in the absence of law. People just think that it's an immoral system because it requires a lower level of morality than socialism, where one has to be nothing less than an angel. A free market economy will work well enough if people just have an ordinary degree of decency.
Very good points.

weeds Wrote:People just think that it's an immoral system because it requires a lower level of morality than socialism, where one has to be nothing less than an angel.
  The money quote.  To put it another way, socialism can only work in a world without original sin.

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#72
Flinn Wrote:2.  I don't criticize Austrian economists because they are not Catholic.  I criticize Austrian economics because it contains much philosophically that is incompatible with the teachings of the Church.  
I have a problem with "much".  Most work done by Austrians is with regard to the business cycle.  I think the big problem is NOT that Austrians differ from the Church, but that the Church is silent in key areas.  I don't blame the Church, since you could even say "this doesn't concern the Catholic Faith", though I would disagree.  The big example is fiat currency, which rips off the poor and destroys countries.

Flinn Wrote:4. Government CAN either help or hurt.  Government WILL set the parameters in which the economy will function whether the system is called communist, distributist, capitalist, socialist or any other "ist."   The hope is that the parameters will protect small and family owned businesses, promote local and regional economies, strengthen household economy, promote sound agriculture, etc.  It may of course do the opposite.
  As Catholics, we know there is no hope that government will not become corrupted.  Therefore using what we KNOW by our Catholic Faith (Original Sin), we should structure a government accordingly.  A country divided into multiple States, with the power to "vote with your feet", and a weak central government of Judges to settle disputes, comes to mind.

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