Is the Market Moral?:
McGurn, Rebecca M. Blank and William & Finn, Daniel
Misreading the pope Is the Market floral? Rebecca Al Blank and William McGurn . Brookzn2, Institute Press, SIEi;95; 151 pp. Daniel Finn rom "reality" TV to talk radio to world terrorism, it...
...The prosperity of rich nations does not depend on the poverty of poor ones...
...Where Blank was arguing that societies need a balance between government control and personal virtue, McGurn in the final section paints Blank with the same brush he applies to his more extreme critics...
...you to a life of service...
...The poor farmers who own pigs in most developing countries, with underdeveloped financial markets, have no such capacity...
...Unlike dinner conversations of his own family of origin (which addressed "sports and politics"), here conversations entailed the commercial opportunities that young adult children recognized around the city...
...They are characteristics of government action...
...Her five-page critique of the neoconservative charge of government failure is masterly...
...Blank's analysis is not without its own short-comings...
...McGurn summarizes Blank's argument in a way that looks too much like his own...
...Yet, many of the arguments he proposes simply don't seriously engage Blank's perspective...
...n Blank's response to McGurn, she makes three central points, all of which object to the bright line McGurn draws between economic life and the rest of human experience...
...Rebecca Blank is a distinguished economist and dean of the School of Public Policy at the University of Michigan...
...W illiam McGurn defends markets against those who would limit them by government restriction...
...Thus, for McGurn, the work of the church in assisting individuals to develop individual virtue is a perfect match with his view of the needs of contemporary economic life...
...Even more, he asserts, "in fact, I find them almost a perfect fit...
...Perhaps most tellingly, this may be yet another example of the model of market relationships being applied in-appropriately, this time to intellectual conversation...
...Thus child labor might actually be good for poor families in Bangladesh, and South African whites did indeed abuse minimum-wage laws as a way to keep blacks out of better jobs...
...the international evidence is overwhelming that poverty tends to fall when economic growth occurs...
...THE CATHOLIC UNIVERSITY OF AMERICA 11 as h i n g t o H. D. C. Commonweal 2 7 October 8, 2004...
...1u sac urdy y in the plore aCommonweal 2 5 October 8, 2004 and personal transformation...
...He argues that John Paul calls for culture, not government policies, to temper capital-ism...
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...He's right on all three counts, and all Christians striving for greater justice in the world would do well to understand why...
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...In John Paul's social thought, there are not two separate realms but one world where both individual virtue and responsible government structure are necessary...
...She cites the call to community and the importance of "other-interest," in addition to self-interest...
...Governments should pursue the common good and are right to alter market outcomes at times by re-distribution of income...
...One is even led to wonder whether McGurn's inability to grasp the subtleties of argument proposed by Blank may go far to explain the ideological purity of the editorial page of the Wall Street Journal, his employer...
...Born into the German Evangelical and Reformed tradition, she is an active member of the United Church of Christ...
...Even libertarians depend on the structuring of markets by governments...
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...It may arise just as importantly from an inability to understand contrary points of view...
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...For Blank, the churches have two roles here...
...He is right in almost all that he quotes from John Paul, but ignores the other side of this analysis of markets, where the pope insists on a strong juridical framework and where the very right to ownership of capital is justifiable only to the extent that it serves labor first and the interests of the owners second...
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...Most people are well served by the police,courts, and public schools...
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...in the United States, they ought to oppose excessive power exercised in poorly regulated markets...
...He em-ploys throughout his essays the example of Hong Kong...
...Nonetheless,she faults belief in "free markets" and in the economic model of markets as a kind of "secular religion," a blinding faith that too often overlooks problems, as when corporations wield market power unscrupulously, or when economic transactions generate external costs that must be paid by third parties...
...this is "not afaithful response...
...McGurn, on the other hand, never re-ally enters into the dialogue...
...From her perspective, markets often reinforce exclusion and clearly do cause economic insecurity for those dislocated by economic change...
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...Referring extensively to Centesimus annus, McGurn believes his own view is "resonant" with the teachings of the pope...
...He asserts that U.S...
...He cautions that society should not "proscribe every possible instance of undesired behavior," as if perhaps Blank herself had proposed this...
...Third, public and private sectors are closely linked...
...The problem seems to be that McGurn did not read Blank's words carefully the first time, and directed his arguments over her head toward unnamed opponents farther onthe left...
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...He takes on three issues that Blank address-es: child labor, minimum wage, and discrimination...
...If ever there were a time in McGurn's life when he had agreed to attend carefully to another perspective, this book was the occasion...
...He endorses John Paul's notion of social solidarity, and his view that human labor and creativity in the modem world are the causes of most economic productivity...
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...Then, once he realized that he and she had significant differences, he proceeded to assume that she holds the stereotypical views he associates with those more distant adversaries...
...It is tiny and has almost no natural resources but has provided a high standard of living to millions of citizens...
...In fact, "the violent disagreements between promarket and antimarket Christians are not so much about Christian social principles as about the facts of economic life...
...First, they should help their members think about the relation of faith and economic affairs...
...Following the work of Peruvian economist Hernando DeSoto, McGurn points out that the owner of a pig in Iowa has a capital asset against which he can borrow from the bank to make other in-vestments...
...Surely this would be understood as a corruption of the sphere of family and culture by commercial interest...
...in Spiritual and Pastoral Care • M.S...
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...William McGurn is a journalist, currently the chief editorial writer for the Wall Street Journal...
...In a market, though, I face no moral requirement to do comparison shop-ping...
...McGurn is particularly concerned about the dysfunctions of government...
...Without denying that governments have indeed failed in many areas, she says we must ask another question too: "How does the government manage to accomplish so much...
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...He "sat in awe" as the conversation was "all about capital in the finest sense, something with a transformative power to generate wealth out of almost nothing...
...Unfortunately, his argument too often focuses on one counter-example somewhere in the world where government efforts have gone wrong...
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...At the same time, she argues against market proponents who claim simplistically that markets reduce social exclusion and economic insecurity...
...She points to the obstacles of political interference and bureaucracy faced by government agencies trying to do good work...
...Its primary economic function is to maintain the legal system that facilitates the smooth working of markets, but it F BALOO Commonweal 2 3 October 8, 2004 also intervenes in cases of market failure, and to provide essential services (schools, roads, etc...
...In addition, "markets can be extremely cruel," and those who suffer these dislocations understandably distrust the market and powerful actors within it...
...She gently chides McGurn for thinking that economic success in Southeast Asia was simply a matter of markets and not that of government too...
...In traditional societies, churches ought to defend the values promoted by markets...
...Greedy people, corporations with market power, firms that hide information about their products or mistreat their workers—all these lead to the absence of civility...
...culture is only one of its sources...
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...To his great credit, McGurn's argument often focuses on the poor...
...Public intellectuals some-times speak of the "marketplace of ideas," but there is a deep contradiction within this metaphor that may help to explain the "culture wars" mentality that cedes not an inch to one's opponent...
...She notes that, as in the classic economic model, virtue often serves self-interest, but observes also that, contrary to the model, such behavior is "important even when it doesn't...
...She appreciates that the model predicts many things well, but denies it should be the only way to interpret economic life...
...Critics of markets, he argues, don't like to hear about "the need to cultivate individual virtue...
...public schools have failed: two-thirds of Hispanic and African-American kids are "written off" by the fourth grade...
...Remarkably, McGurn begins his final statement with a belated acknowledgement: "We disagree after all...
...In the end, however, he largely ignores what she has to say about the economic facts of public policy...
...And in more than degree...
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...On a Saint Mary-of-the-Woods College Faith Seeking Understanding Master ofArts in Pastoral Theology Distance Learning Format Prepares Women and Men for Ministry Limited Time on Campus mapt@smwc.edu 812-535-5206 www smwc.edu L Commonweal 26 October 8, 2004 further note, one can only imagine John Paul's dismay at McGurn's praise for a pattern of family dinner conversation that centers on commercial opportunities for greater wealth...
...Daniel Finn rom "reality" TV to talk radio to world terrorism, it seems many people would rather eliminate their opponents than talk to them...
...It recognizes their strengths and argues for their appropriate limitation...
...Virtues are essential for economic life, but are nurtured in the family and society more broadly...
...The book begins with opening statements by each author, moves onto replies, and then a final statement from each...
...The second function of the churches is to speak for "alternative values" in civil society...
...She reviews both the strength and weaknesses of markets and the role of Christian reflection in that process...
...In addition, Christians stress a concern for the poor, something often lost sight of in the marketplace, as well as living a life of virtue at work...
...In her final statement, Blank takes on McGurn's claim that markets are a source of civility...
...John's University in Collegeville, Minnesota...
...Daniel Finn teaches economics and theology at St...
...She recognizes that other-interest "may be blatantly inefficient" but it is at times essential, even in economic life...
...Once an economic basket case, Hong Kong is now a wealthy city...
...Economics is not a zero-sum game...
...His unfortunate either/or analysis is inadequate to the subtler both/and arguments provided by Blank...
...Like him, she believes in markets and the importance of the economic vitality of individual actors...
...He argues strongly for a reformation of culture as the only counter to the failure of large institutions...
...Dorothy Day with Francis J. Sicius Peter Maurin Apostle to the World First time in print, Day's account of her mentor and co-founder of the Catholic Worker...
...The simplistic right-wing overconfidence so often shown there (in sharp contrast to the rest of the newspaper) may not simply arise from the editorial genre, where views are typically expressed with self-confidence...
...She has here in mind, of course, the many prohibitions (heroin and pornography, for example) that governments impose on economic life...
...Blank is clear that the growth of markets has brought great benefits...
...But this is like indicting all war because Hitler declared one or all scientific experiments because of Nazi atrocities...
...She appeals to basic values of the Christian faith but makes no simple claims of ecclesiastical support for her position...
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...This, McGurn points out, is attributable to its embrace of the free market, something that many nearby nations have rejected...
...In his first response, McGurn observes that he and she approach questions "from strikingly similar angles...
...To illustrate the cultural underpinnings of economic success, McGurn tells a story about a visit he made to an ethnic Chinese family in Manila...
...This last essay is without doubt the weakest part of the book...
...He believes there is an objective standard of right and wrong and does not want markets to deal in drugs, sex, or the selling of children...
...They have remained poor as a result of government failure in the economic realm...
...Thus a volume on markets and morality arising out of the Pew Forum's Dialogue on Religion and Public Life is a welcome addition to the conversation...
...out of love, she asserts, we may as a commu-nity deny choices to other persons...
...Although agreeing this hap-pens in many cases, she points out that the opposite occurs as well...
...She openly describes libertarianism as not Christian...
...She was a staff economist for the Council of Economic Advisors during the first Bush administration and was named to the Council by President Bill Clinton...
...There are those, perhaps Rebecca is one, who believe that looking to culture rather than law to ensure a just economy is naive...
...Nonetheless, Blank's work entails a well-balanced look not only at the strengths of her point of view but at criticism of it from those outside...
...Her inquiry into the implications of Christian faith for economic life doesn't contain much theological specification, but it fits broadly within the Christian theological tradition...
...She defends the role of government in "reflecting social values and choices...
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...Another problem is that McGurn's reading of John Paul II is deeply flawed, exhibiting the selectiveness of so many neoconservative Catholics...
...Second, economic structures are not so vividly separate from political ones...
...Theologically, McGurn roots his convictions in Catholic thought, presenting a now standard analysis of the work of Pope John Paul II developed by neoconservatives...
...Many things he says about markets are true, and thus will benefit the reader...
...She is critical of those evangelical Christians who would at-tempt to keep churches and economic life in "separate spheres...
...Thus the church is neither "pro-" nor "anti-" markets...
...Markets enable poor people to improve their condition...
...Blank states clearly that "there is no viable alternative to the market as an organizing principle for an economic system in a complex society...
...End June 10...
...This is a dangerous admission by a journalist in dialogue with an economist known for a lifetime of careful empirical work in public policy...
...And rarely, I would guess, has he had so reasonable an "opponent" so close at hand...
...in Pastoral Counseling • Ph.D...
...Blank also takes on McGurn's recur-rent complaint about government failure...
...An authentic intellectual life requires that we stay self-critical, and at a minimum includes striving to understand the best arguments against us...
...McGurn is a Catholic...
...He has also been managing director for This World and Washington bureau chief for National Review...
...We have an obligation to the common good...
...In spite of government agencies being hampered by political pressures unrelated to the task at hand and all-too-frequent "reorganizations" when a new team enters the White House, and in spite of inadequate funding and rigid bureaucracies, there have been a long string of important policy successes...
...And unfortunately, much that's been written on the morality of markets is a one-sided declaration, little informed by critiques from other perspectives...
...Using "the same set of judgments and faith tests" in evaluating market outcomes as in other areas of human interaction, Blank acknowledges that the context will make a difference...
...they want "to legislate the Golden Rule" rather than do the difficult work of cultural arira d Square) do I abt jus ve Ca.m et it done...
...William McGurn can tell us where he himself stands but seems unable or unwilling to understand Blank's view...
...There are areas of life where the market should not enter...
...More is not always better than less, and more choice is not always better than less choice...
...More timely than tomorrow's headlines...
...Capital is, he argues, essential for poor people...
...Governments set up prohibitions to prevent the commodification of many things that society does not want sold...
...McGurn declares that he is not a libRachcally New FIRST TIME IN PRINT...
...it comes from their own productive work...
...Rebecca Blank demonstrates her capacities as an economist, person of faith, and a public intellectual who can understand and address perspectives different from her own...
...He argues that John Paul presents "a metaphysics of the market that teaches that capital is at once human, alive, and social...
...In addition, McGurn talks as if there are two realms of life, one where the market has full sway and another it ought not touch...
...First, virtue is embedded within (and can be weakened or strengthened by) economic structures...
...Food stamps reduce hunger, public health insurance improves children's health, Social Security has reduced senior poverty, and environmental rules have reduced pollution...
...Just do the mm be happy where you are, WESTON' JESUIT SCHOOL OF THEOLOGY od's presence in the world...
...The market model presumes self-interest, individual decision making, and the value judgment that more is better than less...
...Markets "promote habit-forming virtue" and civil relationships...
...But she does not address the critique from McGurn that these very problems are not somehow external anchors that the ship of state is unfortunately asked to drag along but are rather permanent mechanical problems in the engine room...
...Charles Gravenstine, D.Min...
...ooking at the volume as a whole, Rebecca Blank's es-says alone are worth the price of the book...
Vol. 131 • October 2004 • No. 17
