Research On Religion » F.A. Hayek

Russ Roberts & Anthony Gill on Religion & Religious Liberty (A Simul-Podcast with EconTalk)

tonygill — Mon, 06 Jan 2014 13:00:34 +0000

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In a very special “simul-podcast,” Prof. Russ Roberts, host of the weekly podcast series EconTalk, interviews Tony about the economics of religion and the origons of religious liberty. Our conversation begins with a general observation that economists, and social scientists more broadly, have neglected the study of religion in social life. Tony observes that this is unusual considering that the most enduring institutions in history have been religious organizations, either as formal hierarchies (e.g., the Roman Catholic Church) or less formal “movements” (e.g., Judaism, Buddhism). We speculate as to why scholars have had this blind spot and several possibilities are advanced.

Russ then presses Tony on whether or not religious competition and freedom produces greater amounts of religiosity in society. None other than Adam Smith is cited in response to this question. In the Wealth of Nations (Book V), Smith notes that the clergy in England, supported by state funds, “repose themselves on their benefices” and do little to activate their congregants, whereas in Pennsylvania, where religious freedom is the order of the day, individual pastors must work hard to get their sustenance from voluntary contributions of their flock. Not surprisingly, religion flourishes in the latter area relative to the former. Tony brings to bear some of his own research on Latin America to show that the Catholic Church became more responsive to their parishioners once Protestants began to challenge them for societal influence in the 20th century.

Russ then directs the question to the role of government. Tony lays out his theory of church-state bargains. Beginning with the interests of political rulers to stay in office, maximize revenue, and spur economic growth, he builds a theory why state leaders would want to support religious leaders. Religious leaders, who would like protection from “upstart sects” and a source of regular funding, are often willing to trade ideological and organizational support to the state in exchange for financial subsidies and restrictions on the religious freedoms of minorities. The conversation covers some examples of this and also explores the interesting “counter-cases” of the Soviet Union and China.

We finish with a discussion of religious liberty, or why a government that tightly regulates a religious market would ever want to de-regulate. We start by noting that there are a number of different dimensions to religious liberty and ways to violate it. Tony then advances an interest-based explanation for why leaders — who value political survival, tax revenue, and economic growth — would loosen restrictions on religious minorities when it serves those interests. He uses examples from the colonial U.S. and cites people as varied as William Penn and Tench Coxe. Current threats to religious liberty are then considered and Tony explains why property rights and the Kelo v New London case are critical to religious freedoms. Recorded: December 23, 2013.

Bob Subrick on Religion and Adam Smith, F.A. Hayek, and Vernon Smith

tonygill — Sun, 01 Dec 2013 09:00:15 +0000

Can you study religion through the framework of economics? Many philosophers think not, but Prof. Robert (Bob) Subrick, and associate professor of economics at James Madison University, says that you can. We discuss a recent paper he wrote that looks at how some very well known economists — Adam Smith, F.A. Hayek, and Vernon Smith — have studied this topic either directly or indirectly.

Our conversation begins with some background on Prof. Subrick himself, as it is somewhat rare to find an economist studying something other than banking, trade, or unemployment levels. While Bob does have an interest in long-term economic development the way we normally think of it (e.g., rising GDP), his interest in economic analysis was picqued by the likes of Gary Becker and Larry Iannaccone who have argued that economics can be applied to a broad swathe of social behavior. We discuss how Bob responds to his skeptics, why economists have long neglected the role of religion, and Tony shares some of his own stories as well.

Prof. Subrick then explains that the nexus where religion can come into play when studying economics, namely the issue of social order. He explains what “social order” means and why religion might play an important role in securing it, as well as being important to understanding long-term, historical growth. We then turn to the most famous economist to come out of the Scottish Enlightenment, Adam Smith. Surprisingly, and despite condensed versions of The Wealth of Nations that redact the material on religion, Adam Smith wrote extensively on this topic. We review his views on this topic, including the origins of religion, the social use of religion, and what happens when governments control the religious marketplace. While Smith is well-known for promoting the idea of laissez-faire economics, his strongest case for the benefits of the free market might actually in the passages that relate to religion. We also examine the potential tension between Smith’s two major works – The Wealth of Nations and The Theory of Moral Sentiments.

Following our discussion of Adam Smith, we move into the intellectual musings of two lesser known economists, F.A. Hayek and Vernon Smith, both of whom won Nobel Prizes in the Economic Sciences. We start with Hayek and Prof. Subrick explains who this guy is and what the Austrian School of Economics is, a perspective closely associated with Hayek. Interestingly, Bob reveals that even though Hayek had an interest in Christianity early in his life, his parents tried to keep theology away from him by hiding The Bible. We then find out that although Hayek did not write about religion very much, the last chapter in his last book – The Fatal Conceit – he argues how religion allows for a moral system that creates the basis for individual and long-distance trade.

Vernon Smith, no relation to Adam, becomes the intellectual we focus on last. Like Hayek, Smith – an experimental economist – never looks at religion as a central theme, but he nonetheless in his acceptance lecture for the Nobel Prize, he connects five of The Ten Commandments to the reduction of transaction costs in society, which in turn leads to greater economic flourishing. As usual, we end with Prof. Subrick’s personal reflections on what he has learned throughout his career in economics and how it relates to his understanding in religion, with a specific emphasis on what he has found on whether or not the “Protestant ethic” has led to greater economic growth. Recorded: October 29, 2013.

Robert Sirico on Markets, Morality, Faith & Freedom

tonygill — Mon, 04 Jun 2012 08:00:55 +0000

Religious leaders are often quick to criticize free market economics because of the belief that it harms the poor, creates greater inequality, and relies upon the base motives of selfishness. However, can a moral case be made for capitalism and free markets? Rev. Robert Sirico, co-founder and president of The Acton Institute, explores this question in depth. We begin our discussion by reviewing Father Sirico’s personal journey from his idealistic youth in the 1960s and early ’70s to his transformation into a proponent of free market economics. His intellectual development is all the more interesting in that it occured as he was simultaneously drawn back to the Catholic faith of his youth, eventually choosing to enter the seminary and become an ordained priest. During this discussion we review his thoughts on Ayn Rand and other libertarian thinkers such as Friedrich Hayek and Frédéric Bastiat. We then venture into a discussion about greed, selfishness, and self-interest with Rev. Sirico laying out the difference between these different concepts and noting how the pursuit of self-interest can also be good for others as entrepreneurs attempt to benefit themselves by making others happy. Greed, on the other hand, is defined as the pursuit of desire with the intent of subordinating others. Father Sirico then makes a case that socialism tends to promote greed more so than capitalism. This discussion allows us to review early communal experiments by the Pilgrims and Fr. Sirico explains why liberation theologians and others are mistaken to interpret the social organization of the early Church Fathers as an example of socialism. We then discuss the role of profits, the gap between the rich and poor, the nature of envy, and the importance of voluntarism. Our discussion closes with an examination of President Bush’s faith-based initiative (which Rev. Sirico gave some early input on), how government policy (even if pursued with good intentions) may inhibit the important social role of individual charity, and a discussion of the recent controversy surrounding the health care mandate and the Catholic bishops. With the latter issue, we review the tension between a corporatist worldview and the Catholic principle of subsidiarity, a nice review of our earlier discussion with Prof. Phillip Muñoz. Finally, Rev. Sirico details the origins of the Action Institute and his role with that institution. Recorded: May 29, 2012.