We published responses to ‘The Rise of American Socialism’ last week. Not all readers were supportive of Gazelle viewpoints, however. Blogger ‘Lovely Cup of Tea’ was unable to post to the Gazelle for technical reasons. Here is what he had to say:
(more)I'm not very left-leaning in my politics (or economics) so whilst I admit I feel a slight sense of schadenfreude over the fate of some of the banks this week, I quite strongly disagree with those in the media making the assertion that socialism and nationalisation are the new way forward for the world. There's nothing new under the sun of course, but I also find myself out of step with a lot of fellow Christians who lean to the left as a result of their theological commitments.
Christianity shares a lot of common language with socialism (think: justice, equality, redistribution, no more exploitation etc) but even despite my misgivings over what it is exactly that these terms mean, I think it is accurate to say that socialist societies have an exceedingly poor track record in providing for their people for a great many number of reasons. I also think it is truthful and accurate to say that capitalism has far outstripped any other economic system in terms of its ability to improve the living standards of large numbers of people, both in terms of actual wealth and high-technology, and this is why I favour it even as the least worst of all economic systems.
Anyhow that's for another day. Here's my comment from The Gazelle:
I think that while some of the more foolish elements of the free-marketeering crowd got their comeuppance this week, I'm not so sure that socialism has any real answers to the problems caused by more rampant forms capitalism. In the short-term, state intervention and bail-out of financial institutions helps, but in the longer term the restrictions that socialism places on the creation of wealth with the intention of reducing inequality and making society fairer means that far less wealth is created in socialist economies but conversely the state needs to spend far more money. The end result is that socialist societies are invariably far less developed and more backward than capitalist ones, as was clear from the economic course of the twentieth century. Liberal democracies and markets trumped socialism and planned economies in every possible sense. It's terribly un-PC to admit it, but there is a plausible argument to suggest that capitalism has brought higher living standards to a higher number of people than any other economic system has even come close to.
I find difficult as a Christian who has less sympathy for socialism than most because the biblical imperatives to help the poor are far harder to implement in the real economic world than working on the assumption that capitalism is the bad guy and that socialism (in some form or another) is the answer. There is a real danger whereby in protesting against the principalities and powers of the market we find ourselves crying out to Caesar to end our woes.
The answer to Naomi Klein's question is also not so cut-and-dried. Morally it would be an amazing gesture to bail out consumer debts and to wipe out people's mortgages, but it would be economically suicidal. The US govt has bailed out banks with tax money on the assumption that these banks will once again be able to lend money to create wealth so that tax revenues will continue to be generated and the state will continue to be funded, but if instead the US govt decided to give the money to those in debt so they could pay off their homes, not only would the money immediately all go back to the banks anyway (since these are the ones to whom the mortgage is owed), but if the banks had not been bailed out and had collapsed, any individual or employer who had borrowed money from a bank to fund their business would immediately find themselves bankrupted and out of a job. Not only that, but if the banks collapsed and could no longer lend money to sustain the economy and create new wealth, tax revenues would also collapse and decimate the social services that the poorest rely on. Starkly speaking, it makes more economic sense to bail out banks (who make it possible to create further wealth) than to bail out those who owe money to the banks.
It's a very difficult issue theologically since we know what we ought to do in some general sense (e.g. help the poor and establish justice) but beyond practicing church-based altruism there are very few plausible economic ideas in the theological academy and difficult questions need to be asked although I'm certain that socialism is not going to be the answer.
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