1. Conservatism and the Economy Lecture 6 May 23

2. Government Responsibilities Tradition: - government can accomplish great projects. - government can (has) act (ed) with strength in the following areas: preserving freedom; punishing crime and administering justice; preserving order and sustaining a minimal moral consensus.

3. Government Responsibilities Human Nature (Principle 3): - Humans are morally weak and imperfect. - The role of the state is to restraint evil tendencies of Humans. - Improvement of Humans results from individual effort.

4. Tradition and Human Nature “Government may promote morality, but it cannot create universal prosperity. Government might assist the helpless, but only when they cannot help themselves, for to do so might destroy their individual self- respect.” Jay Sigler

5. Where can Individuals Find Parts of Such Prosperity? Effective and Limited Government Moral Society Free Economy

6. Virtues of a Free Economy -Mean to an End, which is a just and free society. -Provides the grounds for human’s self- fulfillment and growth. -Provides motivations to work and volunteer. -Copes better with human’s limited rationality. -Allows individuals to trade, inherit and own property

7. Virtues of a Free Economy -Provides the grounds for human’s self- fulfillment and growth. “[E]conomic freedom […]gives to each one of us sovereignty- and over that part of existence in which by far the most choices have in fact to be made, and in which it is possible to make choices, involving oneself, without damaging others.” William Buckley

8. Virtues of a Free Economy -Provides the grounds for Human self- fulfillment and freedom. A free economy allows men “to live like men and die like men. [The conservative] seeks to preserve a society which allows men to attain manhood, rather than keeping them within the bonds of childhood.” Russell Kirk

9. Virtues of a Free Economy -Provides motivations to work. Humans are by nature acquisitive “and acquisition is the main motivation for hard-work.” Kuehnelt-Leddihn

10. Virtues of a Free Economy -Copes better with human’s limited rationality. - division of labor - specialization - cooperation - lack of information

11. Virtues of a Free Economy Allows individuals to own, trade and inherit property. “[T]he property instinct is an ineradicable part of human nature and […] any successful attempt to abolish it can only result in endless suffering.” John Chamberlain

12. Importance of Property -Protects Minorities from Majorities “the citadel of private property also makes existence physically possible for the protestant.” Richard Weaver

13. Importance of Property -Fosters certain virtues: “A free economy can no more bring about virtue than a state-controlled economy. A free economy is, however, necessary in the modern world for the preservation of freedom, which is the condition of a virtuous society.” Frank S. Meyer

14. How? Chamberlain’s Answer: “choice is fundamental to economics […] because it is fundamental to the moral nature of man […] Capitalism […] is the economic expression of the morality which says a man must be free to choose between alternatives of good and evil if his life is to have Christian meaning. (Roots of Capitalism)”

15. Dangers of State-Controlled Economy Leads to Corruption “The state shares the innate viciousness of mankind therefore the less power it has, the less likelihood that it will be able to impose on people a total mistake.” John Chamberlain Debases human morally. Makes volunteerism less likely.

16. Limits of Capitalism Threat to Freedom: Monopoly Large corporations Interest Groups Politics

17. Limits of Capitalism Threat to the moral order and the community: Materialism Individualism Moral Depravation

18. Limits of Capitalism Diminishes Property: Problems of Financial Capitalism

19. Dealing with the Failures of Capitalism Paleoconservatives- Bring values and virtues to the workplace. Neoconservatives- Praise government intervention and regulation.

20. The Problem of Equality Conservatives are opposed to government power to level or create equality. Why? Tradition and Nature Since nature provides diversity, this deadening can be achieved only by brute force, by leveling enforced assimilation, exile or genocide.” Kuehnlt- Leddihn.

21. What Does Equality Mean? Equality must derive from the premises of freedom: “Equal right of all men to be free from coercion exercised against their life, liberty and property.” Frank S. Meyer

22. The Issues -Enforcing Equality (Inequality) -Limiting Freedom -Excesses of Capitalism

23. The Issues -Affirmative Action -Welfare State -Taxation -Regulation -Eminent Domain -Censorship Equality Excesses of Capitalism

24. Four Conservative Ideas Protectionism Protect country from foreign competition. Positive Trade Balance Import Substitution Tariffs, Import Quotas and Anti- Dumping Measures.

25. Four Conservative Ideas Laissez-Faire: "let do, let go, let pass." Less government interference in private economic decisions such as pricing, production, consumption, and distribution of goods and services makes for a better (more efficient) economy.

26. Four Conservative Ideas Volunteerism Economic Benefit: volunteering adds to the overall economic output of a country and reduces the burden on government spending. Social Benefit: helps to build more cohesive communities, fostering greater trust between citizens, and developing norms of solidarity and reciprocity which are essential to stable communities.

27. Four Conservative Ideas Fiscal Conservatism Government must "live within its means". - Low Tax Rates - Balanced Budgets (Oppose to Debt) - Reduce Cost (Efficiency, Delegation, Privatization)

28. Tomorrow and Thursday 1)Is America Polarized? 2) How? on what set of issues (Social or Economic) What is the role of parties and interest groups? 3) Who is winning the battle?