The Spoiled Children of Capitalism

I am struck by the convergence of two posts that I read recently. The first is by Tim of Angle (he says it’s his real name), the proprietor of Dyspepsia Generation (a blog deserving of a vast readership). This is from Tim’s “The Spoiled Children of Capitalism“:

The rot set after World War II. The Taylorist techniques of industrial production put in place to win the war generated, after it was won, an explosion of prosperity that provided every literate American the opportunity for a good-paying job and entry into the middle class. Young couples who had grown up during the Depression, suddenly flush (compared to their parents), were determined that their kids would never know the similar hardships.

As a result, the Baby Boomers turned into a bunch of spoiled slackers, no longer turned out to earn a living at 16, no longer satisfied with just a high school education, and ready to sell their votes to a political class who had access to a cornucopia of tax dollars and no doubt at all about how they wanted to spend it. And, sadly, they passed their principles, if one may use the term so loosely, down the generations to the point where young people today are scarcely worth using for fertilizer.

In 1919, or 1929, or especially 1939, the adolescents of 1969 would have had neither the leisure nor the money to create the Woodstock Nation. But mommy and daddy shelled out because they didn’t want their little darlings to be caught short, and consequently their little darlings became the worthless whiners who voted for people like Bill Clinton and Barack Obama [and who were people like Bill Clinton and Barack Obama: ED.], with results as you see them. Now that history is catching up to them, a third generation of losers can think of nothing better to do than camp out on Wall Street in hopes that the Cargo will suddenly begin to arrive again.

Good luck with that.

I have long shared Tim’s assessment of the Boomer generation. Among the corroborating data are my sister and my wife’s sister and brother — Boomers all.

It is less clear that all Boomers passed along their generally deplorable traits. Contradictory data include my sister’s three children, my wife’s sister’s child, and one of my wife’s brother’s children. As members of Generation X — a Reactive generation, in Strauss and Howe’s theory of generations — they “tend to be pragmatic and perceptive, savvy but amoral, more focused on money than on art.” (The other of my wife’s brother’s children is of Generation Y, discussed next.)

Gen X’s successors are found in Generation Y. It is they who seem to dominate the ranks of “Occupiers,” and they are, in the main, children of Boomers. But Gen Yers are of a different character than their older siblings. To the extent that they are late children of Boomers, it is likely that they resemble Boomers in having been spoiled. And it shows in the “Occupy” movement, the underlying theme of which is that the world owes them — the “Occupiers” — a living.

So, despite my quibbles about Gen X, I subscribe to Tim’s view that the rot set in after World War II. That rot, in the form of slackerism, is more prevalent now than it ever was. It is not for nothing that Gen Y is also known as the Boomerang Generation.

Which brings me to Bryan Caplan’s post, “Poverty, Conscientiousness, and Broken Families.” Caplan — who is all wet when it comes to pacifism and libertarianism — usually makes sense when he describes the world as it is rather than as he would like it to be. He writes:

[W]hen leftist social scientists actually talk to and observe the poor, they confirm the stereotypes of the harshest Victorian.  Poverty isn’t about money; it’s a state of mind.  That state of mind is low conscientiousness.

Case in point: Kathryn Edin and Maria KefalasPromises I Can Keep: Why Poor Women Put Motherhood Before Marriage.  The authors spent years interviewing poor single moms.  Edin actually moved into their neighborhood to get closer to her subjects.  One big conclusion:

Most social scientists who study poor families assume financial troubles are the cause of these breakups [between cohabitating parents]… Lack of money is certainly a contributing cause, as we will see, but rarely the only factor.  It is usually the young father’s criminal behavior, the spells of incarceration that so often follow, a pattern of intimate violence, his chronic infidelity, and an inability to leave drugs and alcohol alone that cause relationships to falter and die.


Conflicts over money do not usually erupt simply because the man cannot find a job or because he doesn’t earn as much as someone with better skills or education.  Money usually becomes an issue because he seems unwilling to keep at a job for any length of time, usually because of issues related to respect.  Some of the jobs he can get don’t pay enough to give him the self-respect he feels he needs, and others require him to get along with unpleasant customers and coworkers, and to maintain a submissive attitude toward the boss.

These passages focus on low male conscientiousness, but the rest of the book shows it’s a two-way street.  And even when Edin and Kefalas are talking about men, low female conscientiousness is implicit.  After all, conscientious women wouldn’t associate with habitually unemployed men in the first place – not to mention alcoholics, addicts, or criminals.

Low conscientiousness was the bane of those Boomers who, in the 1960s and 1970s, chose to “drop out” and “do drugs.” It will be the bane of the Gen Yers who do the same thing. But, as usual, “society” will be expected to pick up the tab, with food stamps, subsidized housing, drug rehab programs, Medicaid, and so on.

Before the onset of the welfare state in the 1930s, there were two ways to survive: work hard or accept whatever charity came your way. And there was only one way for most persons to thrive: work hard. That all changed after World War II, when power-lusting politicians sold an all-too-willing-to-believe electorate a false and dangerous bill of goods, namely, that government is the source of prosperity. It is not, and never has been.

Whether that truth will become apparent before America goes the way of Greece is anyone’s guess. I am pessimistic because conscientiousness — which seemed to be on the rise with Gen X — is once again on the decline.

Related posts:
The Residue of Choice
The People’s Romance
The Causes of Economic Growth
A Short Course in Economics
Addendum to a Short Course in Economics
In the Long Run We Are All Poorer
Economic Growth since WWII
The Price of Government
The Commandeered Economy
The Price of Government Redux
The Mega-Depression
Presidential Chutzpah
As Goes Greece
The State of the Union: 2010
The Shape of Things to Come
The Real Burden of Government
Toward a Risk-Free Economy
The Rahn Curve at Work
The Illusion of Prosperity and Stability
Society and the State
I Want My Country Back
The “Forthcoming Financial Collapse”
Estimating the Rahn Curve: Or, How Government Inhibits Economic Growth
The Deficit Commission’s Deficit of Understanding
Undermining the Free Society
The Bowles-Simpson Report
The Bowles-Simpson Band-Aid
Government vs. Community
The Stagnation Thesis
Government Failure: An Example
The Evil That Is Done with Good Intentions
America’s Financial Crisis Is Now
PolitiFact Whiffs on Social Security
The Destruction of Society in the Name of “Society”
The Social Security Trust Fund Is Not a “Get out of Jail Free Card”
Say’s Law, Government, and Unemployment
“Occupy Wall Street” and Religion
Religion on the Left

“Occupy Wall Street” and Religion

Religion and Occupy Wall Street make strange pew-mates. This is from an AP story, “Religion claims its place in Occupy Wall Street“:

Clergy emphasize they are participants in the aggressively leaderless movement, not people trying to co-opt it. Plus, in a movement that purports to represent the “99 percent” in society, the prominent religious groups are overwhelmingly liberal….

Religious imagery and events have been common since the protests began. In New York, clergy carried an Old Testament-style golden calf in the shape of the Wall Street bull to decry the false idol of greed….

A Chicago group, Interfaith Worker Justice, has published an interfaith prayer service guide for occupation protests nationwide.

Clergy who support the protests say they are a natural fit with many faiths, because they share traditional concerns about economic injustice….

Let’s stop there and talk about “economic injustice.” What does that mean?

A true economic injustice occurs when a party to an economic contract (written or implied) reneges. An employer who doesn’t pay a worker the agreed wage or for the full number of hours worked commits an economic injustice. A supplier who delivers less than a full lot of goods, but bills the full lot, commits an economic injustice. Well, you get the idea: Economic injustice is theft, pure and simple.

But it is not theft to refuse to pay a person what he has not earned. To the contrary, it is theft to demand unearned payment. It is armed robbery when the state — with its monopoly of force — takes from those who earn and gives to those who do not.

Armed robbery is exactly what passes for “economic justice” among the OWS crowd, though they prefer to call it “fairness” and “caring.” Accordingly, there is no legitimate religious basis for OWS-style “economic justice,” despite the attempt of some religious (and irreligious) leftists to claim that Christianity requires redistribution.

At this point, I defer to Father Robert A. Sirico, a Roman Catholic priest and president of the Acton Institute for the Study of Religion and Liberty. This is taken from from a speech that he delivered at Hillsdale College on October 27, 2006:

In chapter 21 of St. Matthew’s Gospel, Jesus proposes a moral dilemma in the form of a parable: A man asks his two sons to go to work for him in his vineyard. The first son declines, but later ends up going. The second son tells his father he will go, but never does. “Who,” Jesus asks, “did the will of his father?” Although I am loath to argue that Jesus’s point in this parable was an economic one, we may nonetheless derive from it a moral lesson with which to evaluate economic systems in terms of achieving the common good.

Modern history presents us with two divergent models of economic arrangement: socialism and capitalism. One of these appears preoccupied with the common good and social betterment, the other with profits and production. But let us keep the parable in mind as we take a brief tour of economic history….

In our own time, we think of socialists as opposing capitalist excess, disparaging the mass availability of goods and services, and seeking to restrict the freedom to produce and enjoy wealth. Consider, for instance, the wrath that modern socialists feel towards fast food, large discount stores, and specialty financial services for the poor. They accuse the mass consumer market of institutionalizing false needs, commodifying the commons, glorifying the banal, homogenizing culture—all at the expense of the environment and of equality of condition, the highest socialist goal. Improving the standard of living in society is far down the list of modern socialist priorities.

But to repeat, it was not always so. Early socialists believed that socialism would bring about an advance of civilization and an increase in wealth. Babeuf, for example, predicted that socialism would “[have] us eat four good meals a day, [dress] us most elegantly, and also [provide] those of us who are fathers of families with charming houses worth a thousand louis each.” In short, socialism would distribute prosperity across the entire population….

The core of the old socialist hope was a mass prosperity that would free all people from the burden of laboring for others and place them in a position to pursue higher ends, such as art and philosophy, in a conflict-free society. But there was a practical problem: The Marxist prediction of a revolution that would bring about this good society rested on the assumption that the condition of the working classes would grow ever worse under capitalism. But by the early twentieth century it was clear that this assumption was completely wrong. Indeed, the reverse was occurring: As wealth grew through capitalist means, the standard of living of all was improving.

Historians now realize that even in the early years of the Industrial Revolution, workers were becoming better off. Prices were falling, incomes rising, health and sanitation improving, diets becoming more varied, and working conditions constantly improving. The new wealth generated by capitalism dramatically lengthened life spans and decreased child mortality rates. The new jobs being created in industry paid more than most people could make in agriculture. Housing conditions improved. The new heroes of society came from the middle class as business owners and industrialists displaced the nobility and gentry in the cultural hierarchy….

In the midst of all this change, many people seemed only to observe an increase in the number of the poor. In a paradoxical way, this too was a sign of social progress, since so many of these unfortunate people might have been dead in past ages. But the deaths of the past were unseen and forgotten, whereas current poverty was omnipresent. Meanwhile, as economic development expanded in the nineteenth century, there was a dramatic growth of a middle class that now had access to consumer goods once available only to kings—not to mention plenty of new goods being created by the engine of capitalism.

These economic advances continued throughout the period of the rise of socialist ideology. The poor didn’t get poorer because the rich were getting richer (a familiar socialist refrain even today) as the socialists had predicted. Instead, the underlying reality was that capitalism had created the first societies in history in which living standards were rising in all sectors of society. In a sense, free market capitalism was coming closest to realizing what Marx himself had imagined: “the all round development of individuals” in which “the productive forces will also have increased” and “the springs of social wealth will flow more freely.”

There was one Marxist in England who seemed to understand what was happening. Eduard Bernstein, who lived from 1850 to 1932, is hardly known today. His writings are not studied, except by specialists. But he was the leading Marxist after Marx and Engels. Engels considered him their successor, and even asked him to finish editing Marx’s fourth volume of Capital.

In the 1890s, Bernstein began to observe the positive effects of capitalism on living standards. “What characterizes the modern mode of production above all,” he wrote, “is the great increase in the productive power of labour. The result is a no less increase of production—the production of masses of commodities.” This empirical fact struck at the very heart of the Marxist case. Bernstein also observed that the numbers of businesses and of people who were well-off were rising along with incomes. As he put it, “The increase of social wealth is not accompanied by a diminishing number of capitalist magnates, but by an increasing number of capitalists of all degrees.” In fact, in the 50 years after the publication of the Communist Manifesto, incomes in England and Germany doubled—precisely the opposite of what Marx had predicted….

The basis of Marxist doctrine had been the idea that society under capitalism consisted of two classes—one small and rich, the other vast and increasingly impoverished. The reality, however, was that the numbers of the rich were growing more rapidly than those of the poor, while the vast majority was falling into a category that socialism didn’t anticipate: the middle class. Doctrinaire Marxists were of course furious with Bernstein for noticing these developments….

If one becomes aware that the older moral argument for socialism is wrong—that capitalism is actually benefiting people and serving the common good—why would one hold on to the ideology rather than abandon it? Clearly, it is difficult to abandon a lifelong ideology, especially if one considers the only available alternative to be tainted with evil. Thus socialism was, for Bernstein’s generation of socialists and for many that followed, simply an entrenched dogma. It was possible for them to argue the finer points, but not to abandon it.

However understandable this might be, it is not praiseworthy. To hold on to a doctrine that is demonstrably false is to abandon all pretense of objectivity….

There have long been cases where grotesque examples of the failure of socialism exist alongside glowing examples of capitalist success, and yet many people will use every excuse to avoid attributing the differences to their economic systems. Even a superficial comparison of North and South Korea, East and West Germany before the Berlin Wall fell, Hong Kong and mainland China before reforms, or Cuba and other countries of Latin America, demonstrates that free economies are superior at promoting the common good. And yet the truth has not sunk in….

Although the free enterprise system obviously does not incorporate the old socialists’ idea of a commonality of goods, it does seem to achieve the common good as they conceived it. What then can we say of those who today remain attached to socialism as a political goal? We can say that they do not know or have not understood the economic history of the last 300 years. Or perhaps we can say that they are more attached to socialism as an ideology than they are to the professed goals of its founders. I’m particularly struck by the neo-socialist concern for the well-being of plants, animals, lakes and rivers, rain forests and deserts—particularly when the concern for the environment appears far more intense than the concern for the human family.

When we speak of the common good, we need also to be clear-minded about the political and juridical institutions that are most likely to bring it about. These happen to be the very institutions that socialists have worked so hard to discredit. Let me list them: private property in the means of production; stable money to serve as a means of exchange; the freedom of enterprise that allows people to start businesses; the free association of workers that permits people to choose where they would like to work and under what conditions; the enforcement of contracts that provides institutional support for the idea that people should keep their promises; and a vibrant trade within and among nations to permit the fullest possible flowering of the division of labor. These institutions must be supported by a cultural infrastructure that respects private property, regards the human person as possessing an inherent dignity, and confers its first loyalty to transcendent authority over civil authority. This is the basis of freedom, without which the common good is unreachable….

To summarize: We are all entitled to call ourselves socialist, if by the term we mean that we are devoted to the early socialist goal of the well-being of all members of society. Reason and experience make clear that the means to achieve this is not through central planning by the state, but through political and economic freedom. Thomas Aquinas had an axiom: bonum est diffusivum sui. “The good pours itself out.” The good of freedom has indeed poured itself out to the benefit of humanity.

In conclusion, I ask you, “Who did the will of the Father?”

Who indeed? It was not (and is not) the spoiled children of capitalism who now “occupy” various venues or sympathize with those who do. These aspiring lotus-eaters claim to be for “economic justice,” but their true agenda is armed robbery.