This post was written by Patrick Rist on June 26, 2007
Many of the divisions among Christians involve the role of “the market,” both in the economy and in the life of the nation. On one hand, there are some who are infatuated with the ability of free market capitalism to provide a high standard of living and an abundance of goods and services. But others, who read Sojourners magazine, see free market forces as the source of all kinds of evils. Although I am no economist, I’d like to offer some thoughts on and ask some questions about “the market.”
First, it seems safe to say that “the market” – in terms of the simple laws of supply and demand – has always existed. It was not invented during the Reagan administration or by Adam Smith. Prices of commodities have always risen or fallen relative to the available supply of those commodities.
In that sense, then, the workings of the market display a level of predictability that approaches that of a natural law. To the degree that the “dismal science” is indeed a science, it is due in large part to this fact.
It is the reality of the laws of supply and demand that makes tampering with the market so problematic and so fraught with unintended consequences. We can’t really tamper with gravity, for example. We can only construct ways to fight against it: elevators, steel girders, and airplanes. One brief moment of laxity can bring disaster – gravity always wins.
In a similar way, we know from experience and from history that the market always “works;” that the laws of supply and demand are practically inexorable, and most significantly, economies that harness the power of the market outperform all competitors to a degree that almost beggars description.
This simple fact is the major one to which those who would criticize the free market economy must respond. It seems evident that, for the most part, better performing economies produce a higher level of human flourishing than struggling or backward economies. There are pockets of exceptions, but as real and important as they are, they are only pockets. The verdict of history has been cast in favor of capitalism.
And yet. . .
One should pause here and acknowledge that many Christians (this writer included) are hesitant to question the sufficiency of the market. Part of this hesitation is due to the false dichotomy that has arisen in American political discourse. If one questions the adequacy of the market, then one must be in favor of government tampering and of a planned economy. There are plenty of instances where this would be a safe assumption. Who knew that in the old adage, “It takes a village to raise a child” that the “village” was actually a whole list of state agencies and government programs?
But the dichotomy is a false one. One isn’t a socialist simply for suspecting that market forces alone cannot create the life that we want to live. The market embodies no values except that of price – and values, in terms of what we love and cherish and believe to be true of ourselves and our world, are not the same as valuation.
Nor does the market contain the thicker, harder concept of morality. The market itself is probably amoral – its inexorable forces work indifferent to good and evil.
The market is not the panacea to all our ills simply because not all things are meant to be commodities. We acknowledge that humans fall outside of the realm of commodity; economists like University of Chicago’s Gary Becker would agree, and yet would allow people to commodify themselves piecemeal, by selling their own organs.
Well, why not? The market does not provide an answer to that question; such answers must come from outside of its system. And this is where Christian academics can play a crucial role.
In my next entry, I’ll offer some thoughts on that role.
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