Toward a Truly Free Market: A Distributist Perspective on the Role of Government, Taxes, Health Care, Deficits, and More (Culture of Enterprise) [Paperback]

John C. Medaille (Author)

Book Description

Publication Date: July 10, 2011 | Series: Culture of Enterprise

Taking “free markets” from rhetoric to reality

For three decades free-market leaders have tried to reverse longstanding Keynesian economic policies, but have only produced larger government, greater debt, and more centralized economic power. So how can we achieve a truly free-market system, especially at this historical moment when capitalism seems to be in crisis?

 

The answer, says John C. Médaille, is to stop pretending that economics is something on the order of the physical sciences; it must be a humane science, taking into account crucial social contexts. Toward a Truly Free Marketargues that any attempt to divorce economic equilibrium from economic equity will lead to an unbalanced economy—one that falls either to ruin or to ruinous government attempts to redress the balance.

 

Médaille makes a refreshingly clear case for the economic theory—and practice—known as distributism. Unlike many of his fellow distributists, who argue primarily from moral terms, Médaille enters the economic debate on purely economic terms. Toward a Truly Free Marketshows exactly how to end the bailouts, reduce government budgets, reform the tax code, fix the health-care system, and much more.

Product Details

• Paperback: 282 pages
• Publisher: Intercollegiate Studies Institute; 1 edition (July 10, 2011)
• Language: English
• ISBN-10: 161017027X
• ISBN-13: 978-1610170277
• Product Dimensions: 6 x 0.9 x 9 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #334,002 in Books (See Top 100 in Books)

Editorial Reviews

About the Author

John C. Médaille is the author of The Vocation of Business: Social Justice in the Marketplace and an instructor at the University of Dallas. He writes and lectures frequently on economics. Médaille has more than thirty years’ experience in management at large corporations and as a small businessman, and he served five terms as a city councilman in his hometown of Irving, Texas.

 

Product Details

• Paperback: 282 pages
• Publisher: Intercollegiate Studies Institute; 1 edition (July 10, 2011)
• Language: English
• ISBN-10: 161017027X
• ISBN-13: 978-1610170277
• Product Dimensions: 6 x 0.9 x 9 inches
• Shipping Weight: 1 pounds (View shipping rates and policies)
• Average Customer Review: 4.9 out of 5 stars  See all reviews (8 customer reviews)
• Amazon Best Sellers Rank: #334,002 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

51 of 54 people found the following review helpful

5.0 out of 5 stars A Modern Distributist Manifesto August 21, 2010

By Philip Dinanzio

Format:Hardcover|Amazon Verified Purchase

This book is one you have to read to learn about the Distributive solution to modern economic problems. My previous readings on this subject consisted merely of attacks on the present system, rather than a exposition of solutions in the modern economy. That being said, I do have a few areas of disagreement:

Medaille states that money is NOT a commodity, and does not have to be based on a commodity. I think this is historically inaccurate. He correctly states that fractional reserve banking enables bankers to create money (in the form of credit) out of nothing, and lend it at interest. Rather than just abolishing this practice as fraudulent, and establishing a free banking system with a commodity backed money, he advocates that the government just print money and lend it without interest for capital projects. As long as the increase in money supply keeps pace with the increase in production, inflation will be minor. This is not a power I would want in government. Even if prices don't rise, malinvestment will still occur due to wrong saving/consumption signals. Better to have private banknotes, with government ensuring value and prosecuting fraud. (eg. One dollar= 1/32 ounce of gold/silver/etc.) This will ensure that prices reflect a real savings/consumption ratio.

He also believes that all (or most) taxation should be a 100% tax on ground rents.
In this he follows Henry George. However, a tax that appropriates all ground rent would drive the capital value of land to zero, and not produce any revenue. The separation of the value of ground rent from the capital improvements would be extremely difficult to calculate. He also ignores the fact that landlords produce a useful function of allocating land to the most efficient user. Keeping land idle produces no revenue!...

The main economic problem to be solved is the "just wage" for labor. He states that wage rates have nothing to do with productivity or supply and demand, but rather with bargaining power. For this he recommends unions or "guilds" to represent workers and increase their bargaining power. All you have to do is compare the wages of a laborer in India with one in the U.S. to dispel that notion. A long range comparison will show that increases in the return to labor have kept pace with the increases in productive capacity. The present day stagnant wages are attributable to other factors (inflation, malinvestment, etc.) Does he not think the the increase in supply of labor provided by illegal immigrants has not depressed wages? Do all they need is union representation? I think the answer is self evident.

He also states that an indication of monopoly is the rate of profit. The higher the rate of profit, the more it is evidence of monopoly. His solution is to have progressivly higher taxes on profits,with a 97% tax on high profits.
He even states that this should not have a negative effect on investment since monopolies want to keep supplies low anyway. But this assumes that they are monopolies in the first place.

I don't want to seem too negative, so here are the points I agree with:
He states that the huge conglomerates often achieve their status and power through political influence, subsidies and unpaid externalities. If we stop the subsidies, eliminate the monopoly grants and patent laws, if we charge user fees,then the large corporations will have to break up to smaller units, and a greater share of wealth given to labor. He correctly states that if a corporation grows too large, it will face the same calculation problems of allocating resources that a socialist economy faces. This natural limit to corporations was first described by Austrian economists, and is another reason that monopolies cannot occur naturally without government aid.

His call for the abolition of the Federal Reserve is well taken (but not his call for tranferring its powers to Congress). His recommendation for more co-ops and worker owned industries is commendable, since it all done without State coercion.
However, despite his examples, in co-ops everyone is an equal owner so there is a disincentive to invest more than any one else; this could hamper investment in a competitive market against other corporations.

I really like his proposal of having all taxation collected by local governments which then distributes it up to higher levels of government (State and Federal). Imagine the Federal government having to justify in Constitutional terms its request for funds! This returns us to the way it was in the original Articles of Confederation!

As he says, economic considerations have to be subordinated to moral considerations and institutions should be developed to give a meaningful life to all families. Bishop Sheen once advocated a fund be set up by businesses or local government to bring low wage workers up to a family wage. A moderate social safety net is perfectly compatible with a free market.

I cannot go into all the useful insights presented in this book, from taxation to health care, and proposals for de-monopolizing and freeing the economy. It is written in a readable and non-technical manner that makes it hard to put down. Whether you agree with the author or not, you will be enlightened and give serious consideration and thought to his proposals. Read more ›

9 of 11 people found the following review helpful

5.0 out of 5 stars The 3rd way - against big Gov. AND Big Business August 17, 2011

By Jonathan M. Mccormack

Format:Paperback|Amazon Verified Purchase

This is an outstanding work clearly laying out a system that neither relies on the almighty state to solve problems, nor lets giant corporations take over. It favors local economies,small businesses, and empowering communities to solve their own problems. Instead of having the state take over all property (socialism) or have a situation where only the top 5% actually own anything (present day capitalism) it puts the family in the center and supports using the market not just to make money, but to distribute ownership, property, and social goods more evenly. Of course there'd still be rich and poor. Sometimes called the ownership solution, in England Red Toryism, it is most commonly associated with Catholic social teaching called Distributism, altho one needn't be Catholic or even Christian to be a distributist. Odd it hasn't been more wide spread, especially on, say, the Colbert Report; Stephen being Catholic. Actually I believe face book has a Get-distributism-on-Colbert page to spread the word. No heavy jargon, clear, realistic solutions, down to earth, a real eye opener! Lets face it - our system ain't working, its time to try something else. Highly recommended.

3 of 3 people found the following review helpful

4.0 out of 5 stars Delivers a (Mostly) Fresh Perspective November 22, 2011

By Cookiebasher

Format:Paperback|Amazon Verified Purchase

Overall, I was impressed by the author's ability to put very complicated ideas into simple terms. Without diving into moral arguments, he illustrated why Big Business and Big Government have an interdependent relationship and explained the practical dysfunction of a boom-bust business cycle. Insofar as he was able to illustrate that, he was successful in presenting the need for subsidiarity and solidarity: essential components of Distributism.

However, there were more than a handful of off-the-cuff recommendations that weren't very well thought out. He rightfully recommended taxing "economic rent" and getting rid of a model that pits capital against labor, but he doesn't fully explain how it would be sufficient, nor does he explore the differences in mobility between capital and labor and how that relationship affects business. The real world isn't as simple as he tried to make it.

In the end, if he wasn't completely successful in illustrating alternative solutions (even if they were a breath a fresh air), he certainly opened the door to understand why our current models are broken. He certainly gave me--someone with little education in economics--a fundamental grasp on these heavy-handed topics as I engage conservatives and liberals alike.

5 of 6 people found the following review helpful

5.0 out of 5 stars Excellent non-sectarian non-historical economics book June 14, 2012

By John Young

Format:Paperback

One thing that has frustrated me in the past about some books on Distributism and other alternate economic theories is their endless review of historical figures of whom I have never heard, and also endless reference to Catholic social teaching. Well, I am not 100 years old and I'm not Catholic either -- so tell me why I should care about Distributism?

This is where Medaille solidly hits the nail on the head. He explains Distributism in clear and easily understood terms from the ground up. He explains why Distributism would lead to truly free markets in a fashion where finance capitalism does not. He further expands on the details of how distributism works, its history (without sounding like a member of some secret club) and more.

I am not sure I personally agree with everything written in this book, but my agreement or disagreement is not the issue for me. What is important is whether or not the author explains his thesis clearly, supports it well and most importantly makes it relevant to me. He does, and he does so in a way that shows him to be an excellent teacher.

I like this book. The author does a great job. Many of the ideas are, I believe, very worthwhile and they are expressed in a fashion the makes sense even to people who weren't hanging around Catholic or Fabian Socialist circles back before my father was born. He makes a convincing case as to why Distributist solutions would be applicable and even effective today, and how Distributism may be an idea whose time has come.

I do not care where you come from economically. You could be a fan of Ludwig von Mises, Keynes, or Marx and unless you are one of those people who only reads material that supports what he already believes, you WILL find seriously thought provoking material in this book....

If you are someone who is willing to think outside of the left-right paradigm and consider new ideas, I highly recommend this book and believe you'll be glad you read it. Read more ›