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Economics is usually discussed in connection with politics, such as during an election or when discussing the effects of a new policy or regulation. In these discussions, the word “progressive” is often thrown around. The term “progressive” is used because it implies a that a perspective is forward-thinking.
Historically, “progressives” have often argued for an economic system that represents a middle ground between a true free market and socialism. Although they recognize many of the flaws of politically driven economic interventions, they believe that some degree of government involvement in the economy is helpful. They propose an economy regulated by “experts” rather than by politicians or the market itself.
There is, however, nothing “progressive” about empowering “experts” to govern the economy.
Problems With Progressivism
Progressives face many, if not all of the same problems as other economic interventionist. It is important to understand that the free market is far from unregulated (as previously explained in Part 8). Markets continually regulate the economy by coordinating supply and demand. Because of market prices, businessmen and consumers are continually able to calculate the best way to achieve their goals. Progressives make the mistake of believing that a few special “experts” can regulate the economy better than the market itself.
Progressives encounter the same knowledge and economic calculation problems faced by socialists (see Part 9). Even the most educated and experienced experts will be limited in that they can only make decisions using the knowledge made available to them. This knowledge will always be less than the collective, yet dispersed knowledge of an entire society. It is impossible for any man to be an expert in every specialized corner of an economy at the same time. To efficiently make positive economic decisions that affect an entire economy would require nothing short of omnipotence. Moreover, as “experts” intervene in the economy, they distort supply and demand, which results in the distortion of prices. As prices cease to function as signals of true supply and demand, expert planners will fail to accurately recognize unmet needs.
Progressives also face the same moral problems faced by other economic interventionists, in that they cannot intervene in the economy without seizing the ability to control the use of other people’s resources (as discussed in Part 10).
Creating an “expert” class gives rise to a managerial bureaucracy which yields tremendous influence of an economy. However, because they are not required to honor ownership rights of others, they are empowered to make decisions independent from the pressures of market regulation.
In other words, when “experts” enact policies, and those policies lead to disastrous economic consequences, such as financial crises, skyrocketing healthcare and education costs, and economic shutdowns, they do not personally incur the costs of those bad decisions. Since they make decisions about other people’s resources, they avoid the ever important market regulation experienced by those who take personal risks with their own resources.
There is no middle ground in economics. Either individuals are allowed to make their own choices with their own resources, or people are empowered to control other people’s resources.
Do Not Trust In Princes
Psalm 146 warns against trusting in human authority. Even the most educated human beings on earth are still only people, and people are imperfect.
Put not your trust in princes,
Psalm 146:3-4
in a son of man, in whom there is no salvation.
When his breath departs, he returns to the earth;
on that very day his plans perish.
Human authority cannot save. It cannot save from recessions. It cannot save from shortages. What’s more, the psalmist made this statement in a world where Israel’s neighbors believed their rulers were divinely blessed with god given expertise to rule. But the psalmist knew better. He knew that they were mere men.
The Bible is filled with similar warnings.
Stop regarding man
Isaiah 2:22
in whose nostrils is breath,
for of what account is he?
Thus says the LORD:
Jeremiah 17:5
“Cursed is the man who trusts in man
and makes flesh is strength,
whose heart turns away from the LORD.”
It is better to take refuge in the LORD
Psalm 118:8-9
than to trust in man.
It is better to take refuge in the LORD
than to trust in princes.
If we cannot trust in experts to rightly guide our economy, where should we turn? We can trust in the Lord.
Blessed is he whose help is the God of Jacob,
Psalm 146:6-7
whose hope is in the LORD his God,
who made heaven and earth,
the sea, and all that is in them,
who keeps faith forever;
who executes justice for the oppressed,
who gives food to the hungry.
The Lord will provide. He can aids the poor and needy. But we must be willing to follow the wisdom we learn from His inspired Scriptures. We must keep working, sharing, and exchanging goods voluntarily. We must refrain from envy and theft.
But as disciples of Jesus, we must remember that “greatness” is not achieved by ruling over people. Greatness is achieved through serving (Mark 10:42-45). If anyone has enough “expertise” to regulate an economy better than the market itself, surely the Son of God had that expertise. And yet, Jesus refused the opportunity to rule over others. Instead, he chose the way of service.
The answer to economic problems is not to trust in man, but to trust in God’s wisdom. It is for this reason that Christians must reject the “progressive” middle ground, which is established on trusting in human wisdom.
The Christian Exile 