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From the
pen of Dr. Mortimer J. Adler
Great
Ideas from The Great Books - 4
Index:
THE
WELFARE STATE
Dear Dr. Adler,
Conservative and rightist orators and writers
are constantly decrying what they call "the welfare
state." This is supposed to say something
derogatory about the way our country is run
nowadays. But what is so derogatory about
"welfare"? Isn't the public welfare supposed to be
the end of every well-run state? Do these critics
propose an "illfare state" as the alternative? Or
is it that they object to the way in which the
public welfare is being pursued?
J. A.
Dear J. A.,
The Preamble of our Constitution lists the
promotion of "the general welfare" as one of the
main objectives of our government. But, as the
Federalist Papers and other commentaries on
the Constitution indicate, our Founding Fathers did
not conceive the general welfare in economic terms,
nor did they think that government should attempt
to see that all men are economically well off.
It is only in our century that it has become an
almost indisputable principle of public policy,
that the state should do everything it can to
provide for the economic well-being of its people.
In a sense, this principle was anticipated in the
Declaration of Independence, which proclaims that
all men have a natural right to "life, liberty, and
the pursuit of happiness," and that governments are
instituted "to secure these rights." Since economic
goods are necessary for the pursuit of happiness,
as well as for life and liberty, a government must
promote the economic welfare of all its people in
order to secure their basic rights. Governments
which try to do this create what have been called
in our day "welfare states."
Broadly speaking, there are two ways in which
economic welfare for all can be promoted in a
society: (1) through the widest possible diffusion
of the ownership of income-producing property; (2)
through the widest possible diffusion of the
economic equivalents of income-producing property.
These "equivalents" include wages, pensions,
insurance of all sorts, medical care, educational
opportunities, recreational facilities and, above
all, ample free time for leisure activities.
To promote the general economic welfare in the
first way is the capitalist ideal. The second way,
however, prevails in the affluent and
technologically advanced industrial countries of
the world today -- all of which are "welfare
states," as Gunnar Myrdal, the Swedish economist
and sociologist has pointed out in his recent book,
Beyond the Welfare State.
In the Soviet Union, which is rapidly becoming
affluent, the economic welfare of the people is
secured by the state's distribution of the wealth
it controls through its ownership and management of
all the means of production. In the United States,
England and other democratic countries, which have
mixed economies, it is secured through the state's
regulation of the economy in such a way that
economic goods are widely diffused.
In both the completely socialist and the mixed
economies, the people have increasingly acquired
the economic equivalents of income- producing
property. But they have not attained -- and perhaps
never can attain in such economies -- the personal
independence that is one of the chief boons of
private property. In these economies, the
wage-earner is guaranteed a decent supply of
economic goods, but he is utterly dependent on the
state, unions or corporations for these
benefits.
Furthermore, in the communist welfare states,
the ordinary individual is deprived of any
effective voice in his own government. He may enjoy
economic well-being, but he is deprived of
political liberty. Only through the capitalist
ideal of widely diffused ownership of
income-producing property, can the blessings of
liberty be combined with the enjoyment of economic
welfare -- for all. While both the socialist and
the capitalist economies may be called "welfare
states," in the sense that they are both concerned
with promoting the general economic welfare, only
capitalism enables a welfare state to preserve
democratic institutions.
AUTOMATION
-- BOON OR BANE
Dear Dr. Adler,
At a time of high productivity, when our
economy is turning out far more goods than ever
before, we hear from our Bureau of Labor Statistics
that "disemployment by automation" is removing
200,000 jobs per year from our manufacturing
industries. Is this so-called "disemployment"
something temporary that will be compensated for by
increased productivity and new kinds of jobs, so
that automation will ultimately raise, rather than
lower, the number of jobs? Or does "disemployment
by automation" mean a permanent decrease in
employment in an increasingly productive economy?
If so, what will the "disemployed" do then?
K. F.
Dear K. F.,
The philosopher Aristotle noted twenty-five
centuries ago that human labor would become
unnecessary if there were fully automatic
instruments of production. "If every tool could
perform its own work when ordered, or by seeing
what to do in advance . . . if the shuttle wove and
the plectrum played the lyre without a hand to
guide them, chief workmen would not want servants
and master slaves." This state of perfect
automation is now a real possibility and even an
actuality in some plants. However, the prospect of
push-button production which once appeared so
desirable, is rather frightening to us today.
The reason for this sense of foreboding is the
painful problem of what to do with the human beings
who will be "disemployed" by the automation of
production. Similar problems have come up
recurrently ever since the Industrial Revolution
began in the middle of the eighteenth century. The
new inventions in the textile industry and the
introduction of steam power initiated the
revolutionary changes in man's way of life, which
made possible our present urbanized,
industrialized, highly productive and intensely
populous civilization. However, the handicraftsmen,
who were put out of work by the new inventions,
felt no joy at the prospect of this brave new
world. They retaliated by trying to burn and wreck
the machines and do violence to their
inventors.
As we were all taught in school, this was a
short-sighted reaction, for "ultimately" many times
more new jobs were created by the introduction of
machine production than were taken away from the
hand-workers. Somewhat the same process has taken
place during the subsequent advances in industrial
technology in the nineteenth and twentieth
centuries. The number of workers displaced by the
new methods was more than balanced "in the long
run" by the number of workers employed in new jobs
in a growing economy and in various "service"
occupations created by the new inventions.
None of these advances, however, did away with
the need for human attention to insure that the
machines performed their alloted tasks properly.
Indeed, operators were so essential for the new
machines that the term "operator" or "operative"
became synonymous with "worker." Human beings had
become machine-tenders instead of hand-workers.
Automation, on the other hand, does away with
the need for machine- tenders since it controls and
corrects machine processes through electronic
computers. The only essential human operation in a
fully automatic plant is the brain work of the
specialists who service the computer controls and
feed them their information and directives.
If the present trend to automation continues, it
is difficult to see where the jobs will come from
to replace the jobs that have been permanently
abolished. Increased productivity will be
accomplished with less labor. Automation in
clerical and service jobs will make it less
possible to shift "disemployed" workers to other
occupations. The numerals and perforations on our
checkbooks and payment notices indicate how human
hand and brain are being increasingly displaced
from key clerical tasks.
Assuming permanent "disemployment," how are the
increasing horde of non-workers to keep on being
consumers? Carl F. Stover recently suggested that
an increasingly jobless society may need a new
system of distribution, such as giving to everyone
a certain number of green stamps per month with
which to purchase what they need. Another
suggestion is to shorten the work-week and divide
the remaining man-hours of labor among the
available working-force. This assumes however, that
quite a bit of work will remain to be done by human
hands and that the economy will be only partially
automated.
THE
RIGHT USE OF MONEY
Dear Dr. Adler,
Money is decried in all kinds of sayings that
have come down to us. "The love of money is the
root of all evil," the Bible tells us. "You can't
buy happiness with money," is a more modern way of
putting it. But though we nod and tend to agree
from habit with such "wisdom," isn't this a lot of
sentimental guff? Isn't money a necessary element
of happiness for any normal life in the everyday
world? All the great thinkers have not rejected
money and material wealth as evil, have
they?
D. R.
Dear D. R.,
Early in our tradition, Aristotle made the
fundamental distinction between "natural" and
"artificial" wealth. Natural wealth, in his view,
includes consumable goods -- food, clothing,
housing, etc. -- and the means of producing them.
Money, in contrast, is artificial wealth. Its
utility is merely instrumental -- as a means of
exchange and as a measure of value of real wealth.
Our estimation of "real" wages in terms of
purchasing power is a present day application of
this basic distinction.
Aristotle also stressed the notion of limited
material needs. The proper aim of economic
activity, he said, is to attain enough real wealth
to take care of the material needs of the family or
state. Such needs are limited and can be fulfilled
by a limited amount of wealth. The pursuit of
wealth merely for the sake of possessing wealth, on
the other hand, has no limits. It usually takes the
form of accumulating a lot of money, which is more
convenient to accumulate than real wealth.
The basic economic distinction between natural
and artificial wealth involves certain ethical
principles. It assumes that a means derives its
value from the end it serves. Money is useful as a
means of exchange or measure of value, and material
wealth is useful as a means to the good life, since
it serves to maintain life itself. Hence, the
pursuit of wealth for its own sake, which amounts
to the chase after money, disorders the individual
and the community since it takes the means for the
end.
Our traditional moral philosophy inveighs
against the pursuit of money as a basic cause of
evil in human society. Some writers, however, have
espoused the opposite position. Christopher
Columbus, for instance, said: "Gold is a wonderful
thing. Whoever possesses it is the lord of all he
wants. By means of gold one can even get souls into
Paradise." And Dr. Johnson insisted that "he who is
rich in a civilized society must be happier than he
who is poor," and that it is luxury which is good
and poverty which is evil.
The criterion of economic welfare and progress
nowadays seems to be the "gross national product"
and not merely gross income in capital earnings and
wages. This is reminiscent of Adam Smith's idea
that a nation's wealth consists in "the whole
annual produce of its land and labor," an amount
which may increase, decrease or stay the same from
year to year. The idea of a gross national product
is usually accompanied by the judgment that it is
good for the national welfare for the gross product
to increase.
The basic assumption here seems to be "the more,
the better." The expansion of gross national
product is apparently viewed as a good in itself,
which is to be pursued indefinitely, without limit.
It is production and consumption that are
emphasized now, and not accumulation of money. But
we are still faced with the ethical question of
whether it is right to take material wealth as an
end in itself and the main sign of well-being.
THE
JUSTIFICATION OF FOREIGN AID
EXPENDITURES
Dear Dr. Adler,
Ever since World War II we have been deluged
with programs to aid in the rehabilitation or
development of foreign countries. Many of these
programs involve direct grants rather than loans
which will be repaid some day. Are there any sound
economic reasons why we should engage in such
unusual acts of charity? Or is there some
transcendent moral ground which supersedes economic
considerations and compels us to do this, even when
it goes counter to our own material
interests?
C. P.
Dear C. P.,
The great writings of the past provide us with
no specific directives for granting aid to foreign
nations out of unselfish motives. Nevertheless,
this kind of foreign aid is based on the ancient
precepts of our religious tradition enjoining
mutual aid and sharing among individuals. According
to the Old Testament code, the poor man, by right
-- and not simply by "charity" in the modern
patronizing sense -- may pick enough food for his
family's needs from the rich man's fields. Justice
requires this of the rich man, who possesses all he
has from God and is bound to share it with his less
fortunate brothers.
This code, however, applied only to individuals
living in the same community. Then, as later, the
relations between nations consisted of trade,
alliances and armed conflict. When the great modern
states arose, funds were often handed out to other
nations, but always for hard strategic or economic
considerations, not out of brotherly love. While
the ancient code enjoined the forgiveness of debts
among individuals in each sabbatical year of
"jubilee," the standard attitude among nations was
best summed up by Calvin Coolidge, who remarked
about the repayment of the debts owed to us by our
World War I allies, "They hired the money, didn't
they?"
Modern advocates of the policy of each for
himself and the devil take the hindmost, among
individuals and among nations, sometime appeal to
the ideas of Adam Smith or Charles Darwin for
justification. Smith believed that the pursuit of
individual self-interest in a free market would
ultimately work for the welfare of the whole
community. However, he also saw that the nations
were involved in a worldwide economy, in which the
actions and reactions of individuals affect the
wealth of nations.
Similarly, Darwin stressed the struggle for
existence and the survival of the fittest as
explaining the origin and development of biological
species. However, he also emphasized the elements
of mutual aid and sympathy as vital for the
survival of animal and human groups, as well as the
mutual co-operation involved among those species
which survive in an environment. The "social
Darwinists" neglected these factors when they
applied Darwin's theory to the economic relations
between men.
Since World War II, the United States has
granted foreign aid both to bolster its strategic
position in the Cold War and also to provide
economic assistance and relief where needed, apart
from strategic considerations. The Marshall Plan
was a program to aid economic recovery in Europe,
and could in principle have been extended to any
European country that needed it and applied for it.
It is "the Marshall spirit" that the British
liberal economist Barbara Ward asks the free world
to return to in her new book The Rich
Nations and the Poor Nations.
Miss Ward believes that to be rich and at the
same time indifferent to the desires and
aspirations of the poor, leads to a deadening of
the heart and a blindness of spirit -- among
nations as well as among individuals. She also
holds that if the rich nations aid the poor nations
to share in the more abundant life, they will not
only be doing the morally right thing but they will
also be advancing their own well-being -- for the
nations, too, are members of one another. She calls
on the West to build a world family of nations,
based on the principles of political and economic
freedom, to counter the Communist vision of world
brotherhood.
That capitalism and brotherhood may go together
is indicated by the case of Eugene Black, a
conservative investment banker from Atlanta,
Georgia, who has been one of the key figures in
developing and implementing an international social
conscience through his position as President of the
World Bank. James Reston of The New York
Times recently noted that Black long ago
recognized that "extreme differences of wealth and
poverty were intolerable among nations," and that
the rich nations had to assume the responsibility
for "exporting the industrial revolution" to the
underdeveloped countries. Thus, the social
conscience awakened by the ancient prophets has
coalesced with the instruments of international
banking in a way that the 19th century opponents of
capitalism could never have foreseen.
QUESTIONS
ABOUT ECONOMIC INSTITUTIONS
Recommended Readings In Great Books of the
Western World:
Aristophanes: The Ecclesiazusae
Plato: Republic, Books II, IV; Laws, Book
VIII
Aristotle: Ethics, Book I, Ch. 8, Book
IV, Chs. 1-2; Politics, Books I-II, V-VI
Epictetus: The Discourses, Book III, Ch.
26, Book IV, Ch. 9
Hobbes: Leviathan, Part I, Chs. 13-15,
Part II, Ch. 24
Locke: Concerning Civil Government,
Second Essay, especially Ch. V
Montesquieu: The Spirit of Laws, Books
XIII, XVIII, XX-XXII, XXVII, XXXI
Rousseau: A Discourse on the Origin of
Inequality; A Discourse on Political Economy; The
Social Contract, Book I, especially Ch. 9
Smith: The Wealth of Nations
Kant: The Science of Right, Part I
Hamilton, Madison, and Jay: The
Federalist, Nos. 10-13
Mill: Representative Government, Ch.
6
Hegel: The Philosophy of Right, Part I,
Section I. "Property"
Marx: Capital
Marx and Engels: The Communist
Manifesto
Freud: Civilization and Its Discontents,
Section V; New Introductory Lectures on
Psycho-Analysis, Lecture 35
Index
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