McKibbon, Roepke, and John Paul II

Caleb Stegall reviews Bill McKibbon’s Deep Economy (which I still haven’t read) in a recent issue of The American Conservative. In the course of the review he mentions this great exchange between economists Wilhelm Roepke and Ludwig von Mises:

In 1947, two titans of 20th-century economic theory, Ludwig von Mises and Wilhelm Röpke, met in Röpke’s home of Geneva, Switzerland. During the war, the Genevan fathers coped with shortages by providing citizens with small garden allotments outside the city for growing vegtables. These citizen gardens became so popular with the people of Geneva that the practice was continued even after the war and the return to abundance. Röpke was particularly proud of these citizen farmers, and so he took Mises on a tour of the gardens. “A very inefficient way of producing foodstuffs!” Mises noted disapprovingly. “Perhaps so, but a very efficient way of producing human happiness” was Röpke’s rejoinder.

Roepke was a free market economist, widely credited with Germany’s post-war economic recovery. He was also a deeply conservative thinker in the best sense who recognized that life is more than the market. His A Humane Economy argues that the market requires strong social, cultural and legal frameworks in order to function as it should without reducing social values to market values.

Here’s a snippet:

The questionable things of this world come to grief on their nature, the good ones on their own excesses. Conservative respect for the past and its preservation are indispensable conditions of a sound society, but to cling exclusively to tradition, history, and established customs is an exaggeration leading to intolerable rigidity. The liberal predilection for movement and progress is an equally indispensable counterweight, but if it sets no limits and recognizes nothing as lasting and worth preserving, it ends in disintegration and destruction. The rights of the community are no less imperative than those of the individual, but exaggeration of the rights of the community in the form of collectivism is just as dangerous as exaggerated individualism and its extreme form, anarchism. Ownership ends up in plutocracy, authority in bondage and despotism, democracy in arbitrariness and demagogy. Whatever political tendencies or currents we choose as examples, it will be found that they always sow the seed of their own destruction when they lose their sense of proportion and overstep their limits. In this field, suicide is the normal cause of death.

The market economy is no exception to the rule. Indeed, its advocates, in so far as they are at all intellectually fastidious, have always recognized that the sphere of the market, of competition, of the system where supply and demand move prices and thereby govern production, may be regarded and defended only as part of a wider general order encompassing ethics, law, the natural conditions of life and happiness, the state, politics, and power. Society as a whole cannot be ruled by the laws of supply and demand, and the state is more than a sort of business company, as has been the conviction of the best conservative opinion since the time of Burke. Individuals who compete on the market and there pursue their own advantage stand all the more in need of the social and moral bonds of community, without which competition degenerates most grievously. As we have said before, the market economy is not everything. It must find its place in a higher order of things which is not ruled by supply and demand, free prices, and competition. It must be firmly contained within an all-embracing order of society in which the imperfections and harshness of economic freedom are corrected by law and in which man is not denied conditions of life appropriate to his nature. Man can wholly fulfill his nature only by freely becoming part of a community and having a sense of solidarity with it. Otherwise he leads a miserable existence and he knows it. (A Humane Economy, pp. 90-91)

Here Roepke sounds a bit like John Paul II, who recognized the value and importance of markets for production and exchange, but the equal or greater importance of maintaining the value of things, especially human life, that cannot be reduced to exchange value. As he wrote in the encyclical Centesimus annus:

It would appear that, on the level of individual nations and of international relations, the free market is the most efficient instrument for utilizing resources and effectively responding to needs. But this is true only for those needs which are “solvent”, insofar as they are endowed with purchasing power, and for those resources which are “marketable”, insofar as they are capable of obtaining a satisfactory price. But there are many human needs which find no place on the market. It is a strict duty of justice and truth not to allow fundamental human needs to remain unsatisfied, and not to allow those burdened by such needs to perish. It is also necessary to help these needy people to acquire expertise, to enter the circle of exchange, and to develop their skills in order to make the best use of their capacities and resources. Even prior to the logic of a fair exchange of goods and the forms of justice appropriate to it, there exists something which is due to man because he is man, by reason of his lofty dignity. Inseparable from that required “something” is the possibility to survive and, at the same time, to make an active contribution to the common good of humanity. (Para. 34)

It’s probably no coincidence that Roepke, the son of a Lutheran pastor, enunciated a similar kind of Christian Democratic vision. American conservatism has, unfortunately, tended toward a kind of “vulgar libertarianism” in theory, which valorizes “the market” as the solution to all social problems. And in practice it has ironically tended toward corporatism – favors for big business that actually end up shielding them from the vicissitudes of the market.

The interesting question to me is whether there is a space for Roepke-style “humane conservatism” to join with McKibbon-style grass-roots progressivism in offering an alternative to the kind of neoliberal version of globalization that many would argue threatens the social, moral, political, and ecological health of our society.