Tuesday, February 24, 2009

Grannie's Virtues


"Ah, for a little more Calvinism - and a little less, er, 'depleted moral capital.'"

Thus sayeth Ross Douthat in a good post on the paradoxes of capitalism. In the news these days, I'm constantly struck by the remedy offered to the economic plight we find ourselves in. The answer is: spending. And tax cuts to encourage spending. Now I recognize that there is much more going on, but I have yet to hear the majority of commentators comment on how saving, investment, frugality can be good things for the economy as a whole. In the short term we might feel the pinch, but in the long term we'll be healthier. Banks don't just put savings in mattresses after all. They make money by investing your money.

Thus, while I have my fair share of problems with them, it's time that we heard a little bit more from people in the Acton Institute, and a little less from the likes of the libertarians and socialist folk among us in our country. Or, perhaps I should ask: why not more Wellum on the airwaves?

We need a more virtuous bourgeoisie!

7 comments:

Adunare said...

This is a great piece by Douthat (I was torn on whether to post on Ferguson or Douthat this morning!).

But I also get a bit soured by the neo-con parade which insists virtue and moral formation will rescue our economic systems. As you no doubt agree, there are structural pieces that need fixing, outright overhaul and fresh imagination. As James Hunter might say, it is not just the hearts and minds of people that will decisively change our culture (and our markets.

Anonymous said...

Absolutely true, but the two aid and abet each other. So, for instance, if industry regulations encourage spending beyond one's means, the temptation to do so and reap the short term benefits (vice in this context) is much greater and the likelihood that people live "vicious" economic lives is increased. Of course I have nothing other than anecdotes to prove this, but it makes sense. Likewise, regulatory policies which encourage saving/investment would help aid people in being virtuous, no? See, for instance, labour sponsored investment funds, or TSFA's (though the jury's still out on these).

Adunare said...

Agreed. I am just hesitant to buy the idea that virtuous people can easily overhaul systemic vice.

Consider the Stanford prison experiments, covered in Zimbardo's Lucifer Effect, for example. He makes the compelling case that some barrels might indeed just have a "few bad apples." But there are also barrels that tend to rot apples, no matter how good they are. Bad systems can make good people do bad things - not deterministically - but importantly all the same.

Anonymous said...

It would be interesting to do an empirical study on the spending habits of people in various denominations. Do Calvinists indeed spend less and save more?

Has anyone done this?

Adunare said...

Not that I know of. Of course, how would you find Calvinists? It's not quite so easy as drawing denominational lines, with the growing hegemony of CCM and "Jesus is my girlfriend" theology.

Adunare said...

(I've been losing a lot at roll up the rim. Pardon my cynicism)

Larry Doornbos said...

Jesus is my girlfriend theology? Time to enlighten me on this one. Really, seriously. I'll email you.