I was surprised by how both an Express-News editorial and St. Mary's professor Vincent Johnson so
uncritically praised the pope's views on economics and the environment
("Our hope: Give us hell, Pope Francis," and "Pope's brave
embrace of environmentalism inspires," Sept. 20).
The editorial said the pope is worried about the
poor and “idolatry of money” and that unfettered markets could lead to “a new
tyranny.” It also mentioned that trickle-down theories have "never been
confirmed by the facts."
Some facts run counter to the pope's narrative.
Capitalism may serve the poor well. The poorest
10% of the population in the most capitalist countries have incomes about nine
times higher than in the least capitalist countries. Life expectancy is much
higher while infant mortality is much lower. Child labor rates are much lower,
too.
From 1949-1961, as Charles Murray has pointed out,
the poverty rate in the U. S. was cut in half, a time when we had few
government programs.
Robert Rector of the Heritage Foundation reported
in 2011 that 75% of poor households had air conditioning while 92% had
microwave ovens. Once even the rich could not buy them. Capitalism brought
products like these, and many others, to the masses, with constantly increasing
ownership rates.
Hundreds of millions of people have been lifted
out of extreme poverty in the last few decades in China and India as they came
to rely more on markets and less on government planning.
Economist Tyler Cowen observed in The New York Times that global
inequality fell in the last 20 years, partly due to improvements in China and
India. International trade played a big role, too.
The pope also "advocates a thoughtful and
reasonably regulated capitalism." Our economy has hardly been unregulated.
In the U.S., for example, we have many
environmental regulations and an Environmental Protection Agency. We have
recycling programs.
There is also the Corporate Average Fuel Economy
(CAFE) standards that mandate each car maker achieve so many miles per gallon.
Regulatory spending by federal agencies is about nine
times higher today than it was in 1970, adjusted for inflation. We add
thousands of pages of new regulations each year.
Yet many regulations are not thoughtful and
reasonable.
Electric cars get subsidized. If you buy as a
Chevy Volt, you can get about $7,500 in the form of tax credits. But, as Megan
McCardle reported, even if we all drove the Volt, U. S. emissions would only go
down 3.5%.
There may also be environmental consequences from
mining lithium, which is a component of car batteries.
Environmentalist Bjørn Lomborg has pointed that
"The toughest global warming policy today is the European Union's
commitment to cutting 20% of greenhouse gas emissions by 2020. This will cost
$235 billion and cut temperatures at the end of the century by a measly 0.1ºF."
Johnson mentions that the pope is worried about
wasting resources. But in 2008 the National Academy of Sciences reported that
"Americans use about half as much energy per dollar of Gross Domestic
Product (GDP) as they did in 1970." We are less wasteful than we used to
be.
Johnson stressed the importance of the environment
more than the editorial. But the EPA has reported that between 1980-2013,
emissions of six principal air pollutants dropped by 62%. So there has been
some good environmental news.
The pope seems either unwilling to acknowledge the
benefits of capitalism and some environmental improvements over the last few
decades or he is unaware of them. Whatever the case, his views should be viewed
more critically.
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