Distributism in Modern Economics

Distributism in Modern Economics

 

 

The past week, on this blog, I have explored the economic philosophy known as Distributism, specifically through the principles of Father Vincent McNabb. 

There are many economic perils in our world: poverty, injustice, lack of economic freedom, the impersonal and sterile nature some work can take on.  And, of course, there are many approaches at solving them.  We tend to fall into two camps: small government, free market enthusiasts; or big government, high regulation enthusiasts.

The Distributist speaks a very different language than these two groups, but he can often be easily dismissed by both.  He can be seen as overly romantic, nostalgic for a bygone era, and utterly impractical.  However, there is still much that Distributism can add to our modern economic conversation.

At this point I must remind people that I am far from an expert in this subject.  In fact, this post can be taken as nothing more than my thinking out loud.  Anyone whose interest is piqued would do well to seek out more learned sources.

However, it seems to me that the essence of Distributism is ownership.  It is based on recognizing the value of the widespread ownership of productive property. 

We often lament the widespread economic dependence of modern man.  Applying Distributist principles to modern economics would mean creating an environment friendly to small businesses and supportive of small farmers.  Mass production is often seen as necessary to sustain the world’s population, but often it only sustains a wasteful, consumer mentality.

As Catholics we are called to shun avarice.  Thrift is a virtue, though society scorns it.  Perhaps the widespread economic downturn of recent years will inspire people to examine our spending and consumption habits. 

We must take a spiritual approach to our work.  Certainly that can be done with any work, but work in which we produce something of real value, and in which we are personally invested in the big picture, is often the most satisfying.  For example, a craftsman is more invested in his work (emotionally and spiritually) than a worker on an assembly line

There are also interesting business models in which workers in a company also have an ownership stake.  Creative business people have realized that when a worker has “skin in the game,” it is easier to get an honest day’s work out of him.

All of these things would be celebrated by Distributists.  If some of these principles take hold in our collective values – ownership, thrift, the spiritual value of work, self-sufficiency – perhaps they can begin to shape government policy, personal habits, and even our spirituality.

An Economic Creed

An Economic Creed

This week I have shared some of Father Vincent McNabb’s economic principles, often celebrated by Distributists.  However, Fr. McNabb was not concerned about economics for its own sake.  He lived in a time when industrialization, mechanization, and urbanization were taking people, especially men, away from the home and family.  Work was becoming sterile.  Self-sufficient families were sometimes turning into wage-slaves.  As a priest, Father McNabb’s primary concern was for the spiritual.  The following is his economic “creed”:

1. I believe that human life, being a divine life, is not adequately paid by any human dividend, but only by a divine wage.

2. I believe that “the desire of money is the root of all evil” in our economic world.

3. I believe that a life organized for moneymaking is the error of taking “gain to be godliness.”

4. I believe that money values are false values: as money weights are false weights.

5. I believe that mass production on the land is not for the sake of the land, but for the sake of money.

6. I believe that what is called moneymaking is not wealth-making, but money-getting.

7. I believe that the growing of one commodity, such as fruit or flowers, finally impoverishes the country by making it the servant of the town; whereas the town should be the servant of the country.

8. I believe the salvation of our over-industrialized England must come from the land, but it cannot come from industrializing the land.

9. I believe that the business methods which have brought our towns to bankruptcy would bring our country to bankruptcy.

10. Finally, I believe that by organizing our land-work for a market, and not for home and homestead consumption, inevitably puts the landworker at the mercy of the market and the transport service which carries the market.

11. I believe in God, the pattern or the Mount, who has challenged us by a life and death given the service of mankind.

12. I believe that to service God by serving man is not to be a slave, but a king.

“Servire Deo Regnare Est.” God’s Service is Kingship!


Originally appeared in G.K. Chesterton’s Weekly.

Fr. McNabb's Principles, 9-12

The Principles of Fr. McNabb, 9-12

 

9)      As Political Economy is the child of Domestic Economy, all laws that weaken the Home weaken the nation.

 

10)    The Family, not the Individual, is the unit of the nation. 

 

11)    There are only Things and Tokens.  The world-wide economic crisis, if it exists, is a dearth of things, not of tokens.

 

12)    Now a dearth of things cannot be met by the creation or redistribution of tokens.  A dearth of things can be met only by a creation or redistribution of things.

The Principles of Fr. McNabb, 5-8

The Principles of Fr. McNabb, 5-8

 

5)      “Big” farming is mass production applied to the land.  Agricultural mass production is based on the Market, depends on Transport and, together with these, is controlled by Finance.

 

6)      A man’s state is not measured by his wealth; but a man’s wealth is measured by his state.  Hence, as state is social position based on social service, it follows that a man’s wealth is measured by his social service.

 

7)      The Divine Right of Property means, not that some men shall have all property, but that all men shall have some property.

 

8)      The natural defense of Freedom is the Home; and the natural defense of the Home is the Homestead. 

The Principles of Fr. McNabb, 1-4

The Principles of Father McNabb, 1-4

Father Vincent McNabb, O.P., is often considered one of the fathers of the English Distributist movement of the first half of the last century, though he did not consider himself a Distributist.  He often spoke at Distributist League meetings, but, being a priest, and not a politician or economist, he did not like labels, but instead focused on principles.

He laid out 12 particular principles I’d like to share over the next few days.  As each is worthy of reflection, I do not want to present more than four a day.  It requires a sufficient familiarity of Distributism to understand Fr. McNabb’s often very challenging points.  My hope is that they will inspire curiosity and further study.

 

1)    The “flesh pots of Egypt,” which must be given up, are to be left not for the milk and honey of Palestine but that “the people may go and worship God.” (Exodus 5:1)

2)    To cease to live in the town while continuing to live on the town may be serving Mammon rather than God; indeed may be serving Mammon under the guise of serving God.

3)    The area of production should be as far as possible coterminous with the area of consumption.  The utilitarians were wrong in saying “things should be produced where they can be most economically produced.”  The true principle is: things should be produced where they can most economically be consumed.

4)    Farmers should farm primarily for self-support.  They should sell as little and buy as little as possible.

 

Clearly, some of these principles would seem impractical in 2014.  They have to be understood in the context of a wider vision.  But they are certainly worthy of reflection.  And it is worth asking what value they can add to our often cold and impersonal economies.

Distributism - A Third Way

Distributism – A Third Way

 

About 100 years ago, some of the greatest Catholic minds – G.K. Chesterton, Hilaire Belloc, and others – were espousing an economic system known as Distributism.  Over the next couple of weeks, I would like to explore some of the principles of Distributism, and what practical contributions it may have to make to modern economics.

What is Distributism?  Simply put, it is a system in which there is wide distribution of productive property.  In a Capitalist society, the means of production, capital, is generally held by a relatively few number of capitalists, while most people work as laborers for a paycheck.  In a Socialist system, of course, the means of production are even more concentrated, in the hands of the government.  Capitalist societies are generally characterized by political freedom, whereas Socialist societies are not.

In a Distributist society, however, the means of production would be in the hands of many.  Most people would be self-sufficient.  It would be characterized by an overwhelming number of homesteads and small businesses.  Wealth would be measured by real goods rather than by tokens (paper money).  And the economy would be characterized by “economy” – thrift – not over-consumption and waste.  It is also a society with political freedom.

With almost all of the modern world vacillating between socialism and hyper-capitalism, a Distributist society is almost unimaginable, though it characterized much of the Western world for centuries.  But is it even practical today? 

Many believe the principles of Distributism still have much to offer to 21^st century economies.  Over the next few days, I would like to consider some of the fundamental principles (many of which will sound very challenging) and explore Distributism’s practical relevance.

Note:  I am quite inadequate to do this topic justice.  The most I intend to do is pique interest.  For a more thorough and intelligent treatment of Distributism, I recommend Hilaire Belloc’s The Servile State, or more recently, Beyond Capitalism and Socialism, a series of essays on Distributism compiled by Tobias Lanz.