Joseph Cardinal Höffner CHRISTIAN SOCIAL ... - Ordo Socialis

Joseph Cardinal Höffner CHRISTIAN SOCIAL ... - Ordo Socialis Joseph Cardinal Höffner CHRISTIAN SOCIAL ... - Ordo Socialis

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tional and feeling beings is, according to Adam Smith, God’s business and not man’s. 5 Jean- Baptiste Say (l767-l832), who sought to spread Smith’s teaching in France, asserted that the laws of the economy are not „the work of man“, but „result as certainly from the nature of things as the laws of the physical world“; one does not invent them, one discovers them. 6 Frédéric Bastiat (l80l-l850) embraced the same optimism. He compared the mécanique céleste of the starry heavens with the mécanique sociale of the natural economic order, which tells of the wisdom of God. 7 b) The ‘natural’ order of the economy is discernible by our reason. Faith in the order of the economy given by nature was complemented by trust in reason, which was able to know that order correctly. The physiocrat Paul-Pierre Le Mercier de La Revière († l80l) had already taught that knowledge of natural laws is easy for man because nature has given each one „a sufficient portion of the light of reason.“ 8 c) The basic principle of the natural economic order is the individualistic idea of freedom. The bonds of the guild system and of landlordism were broken. The freedom of man and his property, of contract and competition, of trade and industry were proclaimed. The state, Adam Smith demanded in l776, should „completely take away...all systems either of preference or restraint.“ Then „the obvious and simple system of natural liberty“ will be established on its own. The tasks of the state are limited to protection of the country from external enemies, the creation of legal security at home, and the establishment of unprofitable, but indispensable public institutions (e.g., schools and streets). In the economy, however, state management and planning have harmful consequences. There are no two characters that are less compatible with one another than the character of a merchant and that of a prince; for governments are „always and without exception the most wasteful spenders“ because they spend other people’s money. The slogan laissez faire, laissez passer was an expression of the demand for total economic freedom. 9 d) The natural motive force in the economy is self-interest. We have never experienced, thought Adam Smith, „much good done by those who affected to trade for the public good.“ But if everyone follows „his own interest,“ he „frequently promotes that of the society more effectually than when he really intends to promote it.“ Only the work of free, self-interested people brings prosperity. For the „experience of all ages and nations“ agrees that, although it only requires payment of living expenses, work done by slaves „is in the end the dearest of any“; for „a person who can acquire no property, can have no other interest but to eat as much, and to labor as little as possible.“ 10 The teaching of Adam Smith on the altruism of egoism had the effect of a revelation on many of his contemporaries. Frédéric Bastiat praised this law as the „most sublime revelation of the impartial providence of God with respect to all his creatures.“ 11 The brilliant Hermann Heinrich Gossen (l8l0-l858), however, thought that, as God has brought „order into his worlds“ through gravity, so has he created „order among his people“ through self-interest. Self-interest holds human society together. It is „the bond that is twined around all men and forces them in mutual exchange to further the well-being of their fellow man at the same time as their own well-being.“ Unfortunately, self-interest has been so mistaken that it has been denounced as „pleasure-seeking“: „Man can go this far astray if he leaves unnoticed the reve- 5 A. Smith, op. cit., bk. 2, chap. 3 and bk. 4, chap. 9. 6 Trait‚ d’Economie politique, 12f. 7 Oeuvres complètes (Paris, 1855), VI:10f. 8 L’Ordre naturel et essentiel des sociétés politiques (Paris, 1767), 81. 9 Op. cit., bk. 3, ch. 2. 10 Ibid., bk. 4, chap. 2; bk. 3, chap. 2. 11 Op cit., 327. 96

lations of the Creator as he manifests them eternally and immutably and uninterruptedly in his creation and if in their place he takes human regulations as his guiding rule.“ 12 The notion that the natural interests and inclinations of man agree most exactly with the interests of the community as a whole (Adam Smith) springs from the Enlightenment theology of deism. The individual, wrote Adam Smith, „intends only his own gain, and he is in this...led by an invisible hand to promote an end which was no part of his intention“; it can therefore be said of us that we are co-workers of the divinity and that, insofar as it lies in our power, we bring the plans of providence closer to their realization. 13 Along the same lines, Johann Heinrich von Thünen (l783-l850) thought in the nineteenth century that, while he fancies „he is only pursuing his own advantage,“ man is „a tool in the hand of a higher power“ and is working, „often unbeknown to him, on a great and artificial edifice.“ 14 e) Competition is what steers the order of the economy. The numinous „invisible hand of God“ avails itself of a simple means, competition, in the transformation of egoism into altruism. Just as self-interest is the motive force of the economy, so competition is what steers its order and leads the manifold individual interests to harmony and the common good. „Every man,“ we read in Adam Smith, „as long as he does not violate the laws of justice, is left perfectly free to pursue his own interest in his competition with those of any other man.“ Since competition is the guarantor of the common good, the lust for subsidies on the part of many merchants who run after the state in order to obtain monopoly privileges must be combated. The exclusion of competition does indeed bring advantages to the interested parties, but is nevertheless always against the interests of the community as a whole. 15 2. Capitalistic Reality. The intellectual fathers of economic liberalism were anything but unscrupulous exploiters. Seldom have such great, almost pseudo-theological hopes been placed on the economy as at the beginning of the industrial age. With touching optimism, the old liberals believed that, after the unfettering of free competition, a happy age marked by universal prosperity and brotherhood would now begin for all strata of the population. The pre-established harmony of the market would automatically lead to the realization of social justice. The industrial age has in fact achieved tremendous things in the field of economics. The market and competition have their dynamics. Supported by the natural sciences and enticed by the new possibilities of free competition, man has systematically laid hold of the forces of nature, which had lain hidden thus far. He has exorcised them into physical, chemical, and biological technology, which, in a tempestuous development, has become the foundation of the modern economy and the skeleton of our civilization. One invention and discovery followed upon another. The average life expectancy of people rose from thirty-five to seventy years of age. And the living standard of even the lower strata of the population increased considerably. Nevertheless, the era of economic liberalism led to a dangerous social discontent and provoked the ‘social question’. The propertyless and, at first, unionized workers could employ no property, but only their manpower in the competition. „Possession is nine-tenths of the law,“ says the proverb. It is surprising that Adam Smith himself clearly referred to this initial inequality in a stirring passage of his main work. Of the struggle between workers and entrepreneurs, he writes: „It is not, however, difficult to foresee which of the two parties must, upon all ordinary occasions, have the advantage in the dispute, and force the other into a compliance with their terms....In all such disputes the masters can hold out much longer....Though 12 Entwicklung der Gesetze des menschlichen Verkehrs (Berlin, 1889), 3f and 277. 13 Op. cit., bk. 4, chap. 2. 14 Der isolierte Staat, I:327. 15 Op. cit., bk. 4, chap. 7. 97

tional and feeling beings is, according to Adam Smith, God’s business and not man’s. 5 Jean-<br />

Baptiste Say (l767-l832), who sought to spread Smith’s teaching in France, asserted that the<br />

laws of the economy are not „the work of man“, but „result as certainly from the nature of<br />

things as the laws of the physical world“; one does not invent them, one discovers them. 6<br />

Frédéric Bastiat (l80l-l850) embraced the same optimism. He compared the mécanique céleste<br />

of the starry heavens with the mécanique sociale of the natural economic order, which tells of<br />

the wisdom of God. 7<br />

b) The ‘natural’ order of the economy is discernible by our reason.<br />

Faith in the order of the economy given by nature was complemented by trust in reason,<br />

which was able to know that order correctly. The physiocrat Paul-Pierre Le Mercier de La<br />

Revière († l80l) had already taught that knowledge of natural laws is easy for man because<br />

nature has given each one „a sufficient portion of the light of reason.“ 8<br />

c) The basic principle of the natural economic order is the individualistic idea of freedom.<br />

The bonds of the guild system and of landlordism were broken. The freedom of man and his<br />

property, of contract and competition, of trade and industry were proclaimed. The state, Adam<br />

Smith demanded in l776, should „completely take away...all systems either of preference or<br />

restraint.“ Then „the obvious and simple system of natural liberty“ will be established on its<br />

own. The tasks of the state are limited to protection of the country from external enemies, the<br />

creation of legal security at home, and the establishment of unprofitable, but indispensable<br />

public institutions (e.g., schools and streets). In the economy, however, state management and<br />

planning have harmful consequences. There are no two characters that are less compatible<br />

with one another than the character of a merchant and that of a prince; for governments are<br />

„always and without exception the most wasteful spenders“ because they spend other people’s<br />

money. The slogan laissez faire, laissez passer was an expression of the demand for total economic<br />

freedom. 9<br />

d) The natural motive force in the economy is self-interest.<br />

We have never experienced, thought Adam Smith, „much good done by those who affected to<br />

trade for the public good.“ But if everyone follows „his own interest,“ he „frequently promotes<br />

that of the society more effectually than when he really intends to promote it.“ Only the<br />

work of free, self-interested people brings prosperity. For the „experience of all ages and nations“<br />

agrees that, although it only requires payment of living expenses, work done by slaves<br />

„is in the end the dearest of any“; for „a person who can acquire no property, can have no<br />

other interest but to eat as much, and to labor as little as possible.“ 10<br />

The teaching of Adam Smith on the altruism of egoism had the effect of a revelation on many<br />

of his contemporaries. Frédéric Bastiat praised this law as the „most sublime revelation of the<br />

impartial providence of God with respect to all his creatures.“ 11 The brilliant Hermann<br />

Heinrich Gossen (l8l0-l858), however, thought that, as God has brought „order into his<br />

worlds“ through gravity, so has he created „order among his people“ through self-interest.<br />

Self-interest holds human society together. It is „the bond that is twined around all men and<br />

forces them in mutual exchange to further the well-being of their fellow man at the same time<br />

as their own well-being.“ Unfortunately, self-interest has been so mistaken that it has been<br />

denounced as „pleasure-seeking“: „Man can go this far astray if he leaves unnoticed the reve-<br />

5<br />

A. Smith, op. cit., bk. 2, chap. 3 and bk. 4, chap. 9.<br />

6<br />

Trait‚ d’Economie politique, 12f.<br />

7<br />

Oeuvres complètes (Paris, 1855), VI:10f.<br />

8<br />

L’Ordre naturel et essentiel des sociétés politiques (Paris, 1767), 81.<br />

9<br />

Op. cit., bk. 3, ch. 2.<br />

10<br />

Ibid., bk. 4, chap. 2; bk. 3, chap. 2.<br />

11 Op cit., 327.<br />

96

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