The Contrarians' Review
An Online Journal of Ideas and Controversy. Published By Flying Ostrich Press. John F. Triolo, Editor.

Economics is Not a Science--15 May 2008

“Are there no prisons?” Asked Scrooge. “Plenty of prisons.” Said the gentlemen, lying down the pen again. “And the Union workhouses?” Demanded Scrooge. “Are they still in operation?” “They are. Still” returned the gentleman, “I wish I could say they were not.” “The Treadmill and the Poor Law are in full vigour, then?” Said Scrooge. “Both very busy, sir.” “Oh! I was afraid, from what you said at first, that something had occurred to stop them in their useful course.” said Scrooge. “I'm very glad to hear it.”
“Under the impression that they scarcely furnish Christian cheer of mind or body to the multitude,” Returned the gentleman, “a few of us are attempting to raise a fund to buy the Poor some meat and drink, and means of warmth. What shall I put you down for?” “Nothing!” Scrooge replied. “You wish to be anonymous?” “I wish to be left alone,” said Scrooge. “Since you ask me what I wish, gentlemen, that is my answer. I don't make merry myself at Christmas and I can't afford to make idle people merry.
"I help to support the establishments I have mentioned: they cost enough: and those who are badly off must go there.” “Many can't go there; and many would rather die.” “If they would rather die,” said Scrooge, “they had better do it, and decrease the surplus population.”
  1

In Dickens’ great novel, possibly his greatest, Ebenezer Scrooge is of course the bad guy. What is lost on the average person enjoying their presents and dining with relatives as they watch this spectacle each Christmas is that Scrooge is a Capitalist in the very model of today’s Capitalist. One often wonders how may investment bankers, how many wealthy owners, how many members of economic think tanks, and how many government bureaucrats pat themselves on the back each Christmas for their work, while feeling deep down that Scrooge has gotten a bad rap. After all, Scrooge has a right to make the investments he wants, he has the money through his ingenuity and his skill, what right have these socialists got to come demanding it for people who lack initiative?   What is also lost on them is that statements such as those above return to haunt poor old Ebenezer when he is reminded of a little bit of humanity at the sight of sickly Tiny Tim by the second spirit.

“If these shadows remain unaltered by the Future, none other of my race” returned the Ghost “will find him here. What then? If he be like to die he had better do it and decrease the surplus population.” Scrooge hung his head to hear his own words quoted by the Spirit and was overcome with penitence and grief. “Man” said the Ghost, “if man you be in heart not adamant forbear that wicked cant until you have discovered What the surplus is, and Where it is. Will you decide what men shall live, what men shall die? It may be that in the sight of Heaven you are more worthless than millions like this poor man’s child.” 2

To our modern economics, our global economy, our pundits and talking heads of course we do not find such sentiments, or such lively contrition. Christmas comes, and then it goes. How many employers watch renditions of Dickens’ classic and yet fail to employ their employees at a living wage? Rather, to translate their view into the terms of the book, Bob Cratchit should have been thankful that he was employed at all, and not like the man under the bridge in the next scene.

One hundred and sixty years after Dickens, and sadly we understand less than his peers. Dickens’ England knew quite well what he was on about. Today, in as much as modern man is able to know anything other than shopping and television, we are forced to warp his meaning into something which makes us comfortable at Christmas. Economist Steve Landsburg declares:

“If Christmas is the season of selflessness, then surely one of the great symbols of Christmas should be Ebenezer Scrooge—the old Scrooge, not the reformed one. It's taxes, not misers, that need reforming.”  3(My Emphasis)

Although I can’t say that taxes are perfect and in no need of reform, the statement is so blaringly stupid that only a modern person could have made it. Yet there it is. And there is more. “Dickens tells us that the Lord Mayor, in the stronghold of the mighty Mansion House, gave orders to his 50 cooks and butlers to keep Christmas as a Lord Mayor's household should—presumably for a houseful of guests who lavishly praised his generosity. The bricks, mortar, and labor that built the Mansion House might otherwise have built housing for hundreds; Scrooge, by living in three sparse rooms, deprived no man of a home. By employing no cooks or butlers, he ensured that cooks and butlers were available to some other household where guests reveled in ignorance of their debt to Ebenezer Scrooge.” 4

He is not joking! Perhaps the most pernicious element of modern Capitalism is how it is based upon the exchange of goods and services, and not their effect on human beings. Perhaps this is a function of the reduction of economics to mathematics. Economics however is not a science, and it is not math. It employs math and social science to predict and explain the investment trends and the buying patterns of people. Human beings possess free will, unless one is a Determinist, and therefore they do not conform to scientific models. In the quotes I have just pulled from Steve Landsburg, the whole moral of Dickens is turned upside down and inside out. The Scrooge so clearly opposed to the received Judeo-Christian morality of Western Civilization is placed in the manger, while the reformed Scrooge, the one so clearly in line with it, is cast out where there is wailing and gnashing of teeth. Why? Not only by refusing to pay his employee better does Scrooge avoid the dilemna of Bob Cratchit having more kids to feed which depletes available work from others (deplete the surplus population), but by not even using his money to enjoy himself, he creates opportunity! It is bad enough that the mass of people are not truly happy, finding no fulfillment in their work and have nothing they actually own except cheap rubbish, but on top of that, Scrooge is better off not enjoying himself too!

In reality of course, human beings have a right to be treated with dignity; which means the opportunity to own property. This is why Pope Leo XIII taught that the solution to the crisis is helping man acquire property:

“If working people can be encouraged to look forward to obtaining a share in the land, the consequence will be that the gulf between vast wealth and sheer poverty will be bridged over, and the respective classes will be brought nearer to one another. A further consequence will result in the great abundance of the fruits of the earth. Men always work harder and more readily when they work on that which belongs to them; nay, they learn to love the very soil that yields in response to the labor of their hands, not only food to eat, but an abundance of good things for themselves and those that are dear to them.” 5

If the poor who own their means of production were to utilize local resources to produce the goods needed in a local economy and have the capital to provide for themselves modestly, you won’t need to give people handouts. The arguments for welfare and socialist concepts would disappear; the need for Scrooge’s vaunted work houses would be non-existent.

But that might take possibilities for the wealthy to be super wealthy and yet live in three barren rooms away! In reality of course, the success of modern economics is a paper success, a few individuals have had a tremendous increase in their bottom line while the ability for the less wealthy to own property has vanished. It is a faux prosperity created by easy credit and the ubiquity of cheap, easy to attain goods which have no inherent value and are made to be thrown away. Likewise this is the case for middle class jobs. Ask any business owner, the largest controllable expenses are wages. A business is always seeking to minimize expenses, and the good jobs people value today will be gone tomorrow when they can be done somewhere else for less. Ask any former call center worker whose job was replaced by someone from India working for a third of what they once made. When the easy credit disappears so will the buying and the perceived economic strength, and given the credit meltdown that may not be far off. One pressure in which economists don’t officially take into account (they do take it into account when they work with marketing, but do not say it in the public square) is that people are affected by peer pressure. The pressure exerted on someone to conform is an element which contributes to the decision to buy. This is why clothing styles change so frequently, as do the size of women’s high heeled shoes, and why so many electronics items are made to be thrown away. Personally I think it’s stupid, but it is also human nature, which can either be exploited for good or ill. Only the woefully ignorant could argue that our culture does not exploit human nature for ill.

The wasteful society and all of its faults, the pollution, and the thousands of hazardous toxins which are in all the products we handle daily, are effects of the greed inherent in the Capitalist system. What did President Bush do in the wake of 9/11? One might have missed it if they weren’t paying attention, he said to “Shop”!6  It is a system which can never be Catholic because it denigrates core Catholic principles, such as prudence, temperance in our habits, thrift, and charity. It depends on people going out to shop. The proof is in the pudding. If all of America was converted to Catholicism tomorrow, and lived like serious traditional Catholics fasting, despising the things of the world, living with thrift and temperance, the economy would collapse within a quarter from lost revenue. Economic success, not our moral goodness, or our ideas or our achievements now determines greatness. Instead of wanting to assist our fellow man in living, we merely presume that he is on the street because he is a drug addict, or lazy. According to the system, we shouldn’t pay attention to them, they deserve what they have, and thus deplete the surplus population. Oh well.

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Notes:
  1) Charles Dickens, A Christmas Carol, pg. 9, found at http://books.google.com/books?id=f8ANAAAAQAAJ&dq=
dickens+a+christmas+carol+text&pg=PP1&ots=t6rl1k0WXx&sig=WK0WFavo-yDHHHOpu9u0_
30ZZ20&hl=en&prev=http://www.google.com/search%3Fq%3DDickens,
%2BA%2BChristmas%2BCarol%2Btext%26ie%3Dutf-8%26oe%3Dutf-8%26rls%3Dorg.mozilla:
en-US:official%26client%3Dfirefox-a&sa=X&oi=print&ct=title&cad=one-book-
with-thumbnail#PPA9,M1
  2) Ibid, pg. 59
  3) Landsberg, Steven What I love about Scrooge, http://www.slate.com/id/2110817/
  4) Ibid
  5) Leo XIII, Pope, Rerum Novarum, no. 47,
  6) Manav Tanneeru , 9/11 trauma persists five years later, CNN, http://www.cnn.com/2006/US/09/08/911.overview/index.html, 11 September 2006


Ryan Grant for Volume I, Issue 4

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