By Noah Rothman
Wednesday, November 06, 2019
Donald Trump uncovered an underserved segment of the
American electorate, one hostile toward the GOP’s rigid fiscal austerity but
amenable to the Republican Party’s cultural grievances. Subordinate the former
to the latter, his candidacy seemed to confirm, and you have yourself a winning
coalition. The challenge before politicians catering to this voting bloc is how
to do it while preserving intellectual consistency. As Sen. Marco Rubio
demonstrated, that’s an obstacle that is not so easily overcome.
This week, Florida’s senior senator delivered an address
at the Catholic University of America entitled “Catholic Social Doctrine and
the Dignity of Work.” Modeled on an essay the senator published in the journal First
Things, Rubio evoked increasingly familiar themes on the right about the
inherently flawed aspects of the modern economy and its supposedly destructive
effects on community and the family. His speech began with an invocation of
Pope Leo XIII’s 1891 encyclical Rerum Novarum, which the senator noted
was delivered against a backdrop of economic upheaval, social discord, and
rising popular discontent with laissez-faire markets and governments.
“The economy that he described 130-years-ago as the right
response was one in which workers and businesses are not competitors fighting
with each other for their limited share of limited resources,” Rubio said.
“It’s an economy in which workers and employers are partners in an effort that
ends up benefiting both of them and, as a byproduct, strengthens the whole country.”
Rubio’s invocation of Rerum Novarum is
philosophically ominous. The ecclesiastical and the theological currents that
yielded Pope Leo’s address feature prominently in my book, Unjust: Social
Justice and the Unmaking of America. The modern social justice movement was
forged in Rerum Novarum, and with it many of the movement’s excesses and
mistakes.
Among the Jesuit philosophers instrumental in developing
and influencing the strain of thought that culminated in Rerum Novarum
was Luigi Taparelli d’Azeglio. It’s no coincidence that he was among the first
to use the term “social justice” in a context compatible with its modern
definition. His theory of social harmony existed in conflict with Lockean
ideals that so influenced America’s founding generation. He saw the 19th
Century economy as “a war of all against all,” and the Enlightenment’s
conception of liberty as tyranny by another name.
Rerum Novarum became an essential text for those
suspicious of Enlightenment ideals while being hostile toward socialist policy
prescriptions. While the encyclical nodded toward the right to property
ownership in opposition to Marxian ideals, it nevertheless argued that the
popular demand for socialistic policies would not abate unless the state
intervenes more forcefully into what were previously private spheres of modern
life. Upon this foundation, men like John Rawls built a modern theory of social
justice, in which bureaucratic operators are empowered to distribute society’s
benefits.
These were big ideas at the dawn of the Progressive Age,
but their relevance today is questionable. For evidence, look no further than
the relative smallness of Rubio’s speech.
The senator insists that “we have been left with an
economy and a society no one is happy with,” but his prescription is to
incentivize businesses to use “profits productively for the benefit of the
workers and the society that made it possible.” That sounds good, but it’s hot
air. Capital investments that are explicitly designed only to increase an
individual firm’s productivity and profits nonetheless yield indirect benefits
for society as a whole. Those investments create more opportunities for
employment, broadening and deepening prosperity by providing the employed with
capital that they use to patronize other businesses, pay taxes, and contribute
to charities.
Presumably, the levers Rubio would use to induce
businesses to make long-term investments are the sort to which Donald Trump has
already appealed. Indeed, the kind of economic meddling in which the president
is engaged created the very uncertainties that have led businesses to hold off
on making long-term capital investments.
Rubio contends that the tax code also discourages those
kinds of investments in favor of stock buybacks, which benefit the wealthy more
than most average Americans. Fair enough, but the incentive structures in the
tax code are distinct from those of the marketplace. Rubio’s “Common Good
Capitalism” diagnoses the economic distorting effects of public policy
correctly—and then prescribes more distortions as their remedy.
Rubio further contends that the globalized marketplace
has yielded unnatural benefits to China, which can easily outcompete the
American labor market. This dynamic has become a national security risk. He’s
right about that. American private and public enterprises have been burned by
the People’s Republic’s capacity to use cheap technological exports to
undermine U.S. information security. And yet the example Rubio uses to
illustrate this threat—the rare-earth minerals mined in China that have
national security applications—is unconvincing.
For example, a Chinese effort to cut off exports of
rare-earth minerals to Japan during a 2010 diplomatic dispute had little
effect. What’s more, American production mines that went dormant amid pressure
from their Chinese competitors are back in operation and, in less than a year,
now account for one-tenth the world’s rare-earth mineral production. In a
stunning reversal, China has recently begun importing semi-processed rare-earth
ore from the United States. All of this was achieved even in the absence of
Rubio-sponsored legislation mandating the establishment of a “Rare Earth
Refinery Cooperative.”
The Florida senator later cites the deference of U.S.
commercial enterprises to Chinese interests as an example of where “pure market
principles and our national interest are not aligned.” That’s arguably true,
but combatting Chinese influence by adopting its methods of controlling the
market and protecting domestic industry will prove unproductive. Rubio appears
to resent how Beijing has used “subsidies and protectionism” to undermine
America’s domestic strategic interests, but these are the same tools lawmakers
like Rubio who object to the “outsourcing of industries like manufacturing”
will be tempted to use. And exactly how broad is the constituency that would
benefit from such a scheme compared to the universe of American consumers and
producers who suffer under such a regime?
Rubio maintains that federal grants to “small business
manufacturers instead of lifeless corporate conglomerates” are essential to his
vision. He should be thrilled then that American small businesses are
proliferating not in response to federal mandates or incentives but a growing
economy that can support them. The manufacturing sector to which Rubio devotes
so much of his focus accounts for just 10 percent of American economic activity
and has recently entered a recessionary phase. That’s partly due to the
president’s antagonistic trade policies but also rising labor costs, which have
increased in response to the scarcity of skilled workers (e.g., a strong job
market). This is not a great problem for the nation to have, but it’s not a bad
one either.
Rubio insists that the modern age has put undue strain on
parents, few of whom can afford the cost of childcare and are estranged from
their families due to increased economic burdens. Once again, that’s likely
true, but Rubio would seek to reverse this trend through… expanded child tax
credits. Somehow the solution does not seem proportionate to the problem.
If we are to take Rubio and the Pope who influenced him
at their words, the senator wishes to reorient the American economy around
protectionist impulses it sloughed off at the end of the 20th Century to dampen
the appeal of socialism. But quite unlike the age of revolutions in which Pope
Leo XIII wrote, the allure of socialism in America today is extremely narrow.
Rubio’s complicated vision begins with an articulation of a philosophy hostile
toward the liberal ideals of the Enlightenment only to come around to the
virtue of those ideals when compared to those espoused by Chinese autocrats.
Rubio concludes by noting that the United States is
entering a period of sustained conflict with its “near-peer competitor” in
China. That competition, he contends, will demand of us the kind of imaginative
thinking the senator practices in advocating “Common Good Capitalism.”
Beijing’s model is one “in which the principles of freedom of religion and
speech are replaced by what they call ‘societal harmony,’” Rubio notes, but in
which “harmony” is enforced by a totalitarian police state.
The American model, by contrast, is on its face
disorderly, fragmented, and fractious.
In other words, free.
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