The Church and the Market: A Catholic Defense of the Free Economy (Studies in Ethics and Economics) [Paperback]

Thomas E. Woods Jr. (Author)

Book Description

Publication Date: March 2005 | Series: Studies in Ethics and Economics

In The Church and the Market: A Catholic Defense of the Free Economy, Thomas E. Woods Jr. makes a vigorous argument in favor of the market economy from a Catholic perspective. Filling a lapse in the debate on the role of religious thought in economic theory, Woods's uncompromising position, informed by the history of Catholic economic thought, shows that the long-seen contradiction between Catholic faith and support for the market economy does not exist. With attention to detail on almost all aspects of the free market, from the Federal Reserve System and inflation to antitrust legislation and labor issues, this book provides essential background for anyone interested in balancing issues of social conscience with modern economic principles.

Editorial Reviews

Review

Should be required reading for any university or seminary course in social sciences that is supposed to be grounded in Catholic social teaching. Woods puts his case with such rigor and lucidity that there is probably no other text that is more effective in supporting a discussion of the application of the Church's social teaching to specific economic issues. (Economic Affairs )

Woods' book is a welcome antidote to the various combinations of economic incompetence and self-righteous posturing - "liberation theology," New Deal welfarism, social democratic interventionism, distributism - that too often masquerade as the only "authentic" interpretations of Catholic social teaching. Every Catholic - and especially every Catholic bishop - ought to consider its arguments before speaking out on economic policy. (Edward Feser, Visiting Assistant Professor, Department of Philosophy, Loyola Marymount University )

Thomas Woods uses the unique perspective of the Austrian School of Economics to present a clear, compelling, and uncompromising argument that the moral teachings of the Catholic Church are completely compatible with free market capitalism. Arguing that faith should be coupled with the best of secular science in policy advocacy, Woods also shows that some elements of Catholic social doctrine are the unfortunate result of factual error rather than the application of moral principle. (Samuel Bostaph, Chairman and Associate Professor, Economics Department, University of Dallas )

Finally, someone who truly understands the science of economics has given us the most thorough examination of Catholic Social Teaching yet available. I highly recommend . . . to all desiring to see the Catholic Church's role in the economic realm in a proper light. It should be required reading for priests, bishops, and seminarians, as well as clerics of other denominations, as a remedy for the socialism that has crept into religious circles over the past century. (William R. Luckey, Chairman and Professor, Political Science and Economics Department, Christendom College )

A fine contribution to the debate concerning the possible and the proper reconciliation of Catholic social doctrine with free-market economics. Professor Woods finds an interesting niche in such a complex and uneven discussion…the author writes with splendid clarity, succeeding in explaining not-so-simple economic questions in very simple terms. (Christian Social Thought )

The Church and the Market is an essential tool for the Catholic free-market intellectual who is fighting the pro-state biases that too often set the terms for economic discussions of modern Catholic social teaching. From welfare and wage policies to distributist demagoguery, Woods speaks classical liberal truth to today's dominant modernist authorities, challenging them to accept at least a modicum of economic rigor into their analyses. As a result, he provides an important contribution toward defining the correct context of Catholic social teaching for the next century. (Christopher Westley, Assistant Professor of Economics, Jacksonville State University )

Woods' coverage of a vast terrain (economics, history, theology, philosophy, and politics) is concise, but not breezy.... The best writing draws attention to itself only after it has been read. If the reader reflects on the human source of his literary delight, he may feel a debt of gratitude such as I felt after reading each of Woods' chapters. Woods' firm literary hand assures the reader that he is not in over his head and delivers a work that, for all its learning, goes down smoothly. (Anthony Flood, www.LewRockwell.com )

Woods' central message, that sound moral statements about economic issues have to be grounded in sound economics is to my mind incontrovertible. And, in the main, Woods brings this message home with well-reasoned and well-presented analysis. Both the message and the analysis deserve careful reflection. (Homiletic and Pastoral Review )

Woods is an all-too-rare Catholic writer, one who is well versed in both Church doctrine and free-market economics.... The Church and the Market is a valuable book. (Crisis )

A person with no interest at all in Catholic social thinking can still benefit from [The Church and the Market]. The author writes with splendid clarity, succeeding in explaining not-so-simple economic questions in very simple terms.... A fine contribution to the debate concerning the possible and proper reconciliation of Catholic social doctrine with free-market economic (Journal of Markets and Morality )

Woods, one of the best classical liberal scholars of his generation, has once more placed us in his debt with this lucid and tightly argued book. (Mises Review )

A highly readable book that reflects much effort by a serious and gentlemanly scholar. (Quarterly Journal Of Austrian Economics )

The Church and the Market makes a convincing case that the 16th Century Scholastics anticipated elements of Austrian economics. More generally, it shows that religion is not necessarily antithetical to an appreciation of what the study of economics can offer....Woods' contribution is that he reminds us of the theological origins of many economic concepts that we teach our undergraduates today. (Heterodox Economics Newsletter )

From the Back Cover

"A fine contribution to the debate concerning the possible and the proper reconciliation of Catholic social doctrine with free-market economics. Professor Woods finds an interesting niche in such a complex and uneven discussion the author writes with splendid clarity, succeeding in explaining not-so-simple economic questions in very simple terms."—CHRISTIAN SOCIAL THOUGHT

"Finally, someone who truly understands the science of economics has given us the most thorough examination of Catholic Social Teaching yet available. I highly recommend . . . to all desiring to see the Catholic Church's role in the economic realm in a proper light. It should be required reading for priests, bishops, and seminarians, as well as clerics of other denominations, as a remedy for the socialism that has crept into religious circles over the past century."—William R. Luckey, Chairman and Professor, Political Science and Economics Department, Christendom College

"Thomas Woods uses the unique perspective of the Austrian School of Economics to present a clear, compelling, and uncompromising argument that the moral teachings of the Catholic Church are completely compatible with free market capitalism. Arguing that faith should be coupled with the best of secular science in policy advocacy, Woods also shows that some elements of Catholic social doctrine are the unfortunate result of factual error rather than the application of moral principle."—Samuel Bostaph, Chairman and Associate Professor, Economics Department, University of Dallas

See all Editorial Reviews

Product Details

• Paperback: 280 pages
• Publisher: Lexington Books (March 2005)
• Language: English
• ISBN-10: 0739110365
• ISBN-13: 978-0739110362
• Product Dimensions: 6.1 x 0.6 x 9.1 inches
• Shipping Weight: 11.2 ounces (View shipping rates and policies)
• Average Customer Review: 3.4 out of 5 stars  See all reviews (13 customer reviews)
• Amazon Best Sellers Rank: #548,474 in Books (See Top 100 in Books)

More About the Author

I hold my master's, M.Phil., and Ph.D. in history from Columbia University and my bachelor's from Harvard. I've written numerous books, including The Church Confronts Modernity (Columbia University Press) and two New York Times bestsellers -- Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse, and The Politically Incorrect Guide to American History. My two latest books are Rollback: Repealing Big Government Before the Coming Fiscal Collapse and Nullification: How to Resist Federal Tyranny in the 21st Century.

My wife and I have four young daughters and live in Topeka, Kansas.

My full biography can be found at www.TomWoods.com/about. My upcoming appearances, in addition to plenty of free audio, video, and articles, are also available at my website.

Most Helpful Customer Reviews

91 of 100 people found the following review helpful

5.0 out of 5 stars Long overdue February 26, 2005

By Professor

Format:Paperback

I have been waiting for this book for many years. As an economist and an orthodox Catholic, I have been concerned at how many of my fellow Catholics, with little if any background in economics, have dismissed the free-market while advancing policies that can only lead to economic ruin. This is a travesty, I've always thought. In philosophy, in medical ethics, and in many other disciplines Catholics have been some of the best thinkers; in economics, on the other hand, the situation is too embarrassing to behold.

What Dr. Woods has done here is to show that so many of the Catholic arguments against the free market are rather like many of the Protestant arguments against Catholicism: they're often based on ignorance and misunderstandings. He then proceeds to lay out one of the strongest and most overwhelming cases for the free market I have ever read - and I have read a lot of them.

I just finished Woods's book an hour ago and signed on to write my review. I was sorry to see the review below (which has since been placed above this one, apparently). At no time does Woods's book contend that economic efficiency is the supreme value; in (as I recall) chapter one Woods expressly dismisses that idea, and in fact criticizes the Chicago School of economics for at times holding that very position.

The Church and the Market often deals with issues that by and large have not been taken up by the popes at all. Thus the chapter on money and banking discusses the gold standard, the moral dimension of fiat currency, the moral implications of fractional-reserve banking, the moral aspects of inflation, etc. Here Woods shows Catholics that a good grasp of economics can help them render better moral judgments. He also corrects the errors of Fr.... Coughlin, who is still admired by some people but whose grasp of monetary economics was disastrously poor.

I wonder if the critic above read the whole book, since it explicitly answers the very clichés that are sprinkled throughout that review. This is disappointing; I hoped Woods's book, so carefully and persuasively argued, would force opponents of Austrian economics to stop and think. Instead, at least in this one case, it has succeeded only in making them repeat the same ill-informed charges they did before he wrote his book. That is the kind of ignorance against which this important -- and beautifully written -- book is directed.

Your work is not wasted, Dr. Woods, believe me. Many of us have been waiting for this book for a long time. Pay no attention to those who call you disobedient (or whatever it is they'll call you). You have done the Church an important service, as did the scholastics who showed that the best of secular thought could be reconciled with the teaching of the Church. Read more ›

79 of 88 people found the following review helpful

5.0 out of 5 stars Catholics for Freedom March 12, 2005

By Steve Jackson

Format:Paperback

Professor Thomas Woods is an interesting author: a traditionalist Catholic who is also a supporter of the free market economy. In this book, he presents a Catholic case for the free enterprise system, employing the economics of Ludwig von Mises and Murray Rothbard (neither of whom was religious, much less Catholic.)

It's well known that the Roman Catholic Church has never been a particularly strong supporter of capitalism. Many popes have stressed the benefits of private property and opposed extreme versions of socialism, but have not realized the positive benefits of Capitalism. In the past, teachers in the Catholic Church haven't understood the functioning of economic laws. The always-paradoxical John Paul II, while having a better understanding of the markets processes, supports large-scale government intervention in the economy. In addition, many Catholics believe that the church's advocacy of the mixed economy is dogma, thus putting Catholic supporters of free enterprise on the same level as those who advocate women priests and the like.

Prof. Woods thus has a lot of work to do. He first shows the autonomous nature of economic reasoning. Churchmen are entitled to instruct the faithful on their duties to their fellow man, but lay Catholics are free to make an independent appraisal of the effectiveness of any given plan. For example, if a churchman tells his flock to help the needy, that's all well and good; if he tells them that the only way to improve the lot of the poor is through minimum wage laws, labor unions, foreign aid and the like, he is making a judgment about how economic laws work. Woods argues that, from the Catholic perspective, there is no reason to believe that the pope is infallible in his economic prescriptions. Prof.... Woods discusses a large number of subjects, including usury, wages, prices, banking and foreign aid.

My one concern is whether all of Catholic economic teaching fits neatly into Prof. Woods' approach. Many popes taught in a rather dogmatic way about the need for various interventions in the economy. One example is the support for laws mandating the closing of stores on Sunday (as well as giving workers the day off). If popes who advocated these things had been Misesian praxeologists, I doubt they would have come to different conclusions.

The book ends with a strong critique of distributism, which seeks a larger distribution of private property in the hands of workers. Chesteron and Belloc, among others, advocated distributism. Many traditionally minded Catholics see distributism as a "third way" between capitalism and socialism. But as Prof. Woods points out, the only institution which has the power to redistribute property on a massive scale is the state. Read more ›

43 of 48 people found the following review helpful

5.0 out of 5 stars Very effective January 29, 2006

By Keith Macklin

Format:Paperback

Let me note from the outset that I've gotten to know Professor Woods by means of emails we've exchanged after I've read some of his articles; I have reviewed a couple of his other books for Amazon as well.

I read The Church and the Market late last year and loved it. Woods has a gift for explaining complicated things in ways that can easily be understood. Woods anticipates more arguments against the free market than I could have come up with in 20 years and demolishes them all, without invective or a sneer.

This is an extremely learned book, and written in clear and engaging prose. Woods takes a consistently pro-freedom position in his discussion of wages, antitrust, the welfare state, banking, foreign aid, etc.

At the same time, he addresses some of the Catholic hostility to the market, and poses some interesting questions. His argument goes something like this: certain papal statements call for a "living wage" (for example) because they believe such recommendations will make workers better off. But what if such a policy (whether enforced by law or by ecclesiastical urging is irrelevant) will make workers worse off? (Woods gives many reasons that this would be the case, including the fact that fewer workers would be employed.)

Leave aside your objection that Woods' economic analysis is wrong, and that, say, a $50 minimum wage would actually be a great thing. The question is this. Let's say Woods is right, which is certainly possible. Let's say this approach would indeed make workers worse off. Is a Catholic free to say so? If not, why not?

Note that Woods isn't saying the Church is not allowed to speak on economic matters.... He is saying that some of the economic assumptions behind the bishops' statements on the economy are faulty, and that the resulting moral analysis is necessarily faulty as well.

It would be something else if Church leaders were to admit that the policies they recommend would surely make people worse off, but that justice requires that they be instituted anyway. That would be one thing. But these policies are being recommended on the express assumption that they will help people. But what if they won't? What then?

That is an interesting and good question, though many Catholics are embarrassing themselves by claiming Woods has no right to ask it. Playing right into the Protestant caricature of Catholicism, they insist that free discussion on such matters is not allowed (a fact that would have been very interesting to medieval scholars, who wrote about and debated just about every philosophical and theological issue you can name). They acknowledge none of the careful distinctions Woods makes, and some of the dafter ones go so far as to say he's dissenting from official teaching simply in pointing out reality. What a nightmare.

As for N. Ravitch, below, he's Professor Norman Ravitch, who 1) hates the Catholic Church (do a Google search on him) and 2) makes a habit of reviewing books he hasn't read. (Check out his review of George Weigel's book God's Choice, for example.) The point of Woods's book is to ADDRESS anti-market statements by Church figures; Ravitch, apparently going only on the brief description above, assumes Woods' book just ignores them. No one who even owned a copy, much less actually read it, could have mischaracterized it so completely. Read more ›