Many of the world’s religious leaders decry the evils of income inequality stemming from a globalized economy. My first post, based on economic reports from such institutions as the World Bank, showed that recent pronouncements by the Pope, the Ecumenical Patriarch, and the Dalai Lama have followed a conventional wisdom that does not capture what has actually gone on in recent economic history: namely, that even as inequality has widened, extreme poverty has simultaneously decreased. I brought in the economic analyst Nassim Nicholas Taleb and his insights about wealth production in modern societies and the wrong assumptions people make about it.
If there is one thing that religious leaders around the world seem to agree on today, it is the evils of income inequality stemming from a globalized economy.
Pope Francis said last year in his apostolic exhortation Evangelii Gaudium that “we … have to say ‘thou shalt not’ to an economy of exclusion and inequality. Such an economy kills.”
In a 2008 speech at George Mason University, the Dalai Lama asserted: “Economic inequality, especially that between developed and developing nations, remains the greatest source of suffering on this planet.”
Ecumenical Patriarch Bartholomew wrote in his 2012 Christmas encyclical that “the gloomy consequences of the overconcentration of wealth in the hands of the few and the financial desolation of the vast human masses are ignored. This disproportion, which is described worldwide as a financial crisis, is essentially the product of a moral crisis.”
This year would have been Bruno Leoni’s 101st birthday but for his tragically early death in 1967. Leoni was an Italian lawyer cum academic who was one of Europe’s leading classical liberal thinkers in the post-War era. Friend to the leading classical liberals of the age—counting Hayek, Buchanan, and Alchian as friends—Leoni was not only a pioneer of law and economics thinking but also an early adopter of public choice theory.
Hayek argues that international or inter-society competition will cause regimes to evolve for the better through natural selection: Most of the steps in the evolution of culture were made possible by some individuals breaking some traditional rules and practicing new forms of conduct - not because they understood them to be better, but because the groups which acted on them prospered more than others and grew. I take the argument to be that when one or a few societies stumble on sound rules, their innovations will spread to others by competitive selection. My object here is to reflect on how (if at…
The American Enterprise Institute’s Arthur Brooks is probably the most captivating American intellectual leader today on the right. He wows conservative audiences and even elicited a kind word about capitalism from the Dalai Lama, who considers himself a Marxist!
In an excellent article for Commentary magazine, with the Biblical title “Be Open-handed Toward Your Brothers,” Brooks asks about the status of the U.S. five years into the progressive rule of Barack Obama and his promises to lift up the poor, end inequality, and make the rich pay for it.
The current Liberty Law Talk is with author Christopher Lazarski on his new book, Power Tends to Corrupt: Lord Acton's Study of Liberty. Our Books essay this week is by Todd Zywicki on Nassim Taleb's Antifragile: Things That Gain From Disorder. Zywicki applies Taleb's insight that an antifragile "system . . . gains from disorder and volatility—i.e., exposure to stresses improves the operation of the system and makes it stronger," to financial regulation, arguing this approach would lead to better results than the regulatory philosophy of Dodd-Frank. Alberto Mingardi @Econ Lib on Chris DeMuth, Hayek, and Obamacare. George Will: Can the passive Congress…
A while ago, I commented on Jim Ceaser’s “Four Heads and One Heart.” Ceaser believes that the four competing intellectual traditions (the heads) that comprise the modern American conservative movement are united by a common loathing of liberalism (the heart). That piece still shapes my thinking, and I still recommend it. But I want to add to Ceaser’s theory by proposing that there’s an intellectual attitude that all four heads share; there’s something on which they all agree.
In the third volume of Law Legislation and Liberty, Hayek argued that something was amiss with western constitutions. They have failed to contain the growth of government or prevent the encroachments of discretionary power. He thought it was time to rethink the constitutional structures of the free world.