In light of the timely Call to Action posted at The Distributist Review, I’d like to suggest another practical means of helping establish Distributism in the present time: creating wealth.
It’s nearly universal for our politicians to tell us that we need to get back to creating wealth. This much is true; sadly, however, our politicians want to get back to creating wealth by getting people to borrow more money to buy more stuff, most of which was made in foreign countries by foreign workers, and most of which they couldn’t afford even if they weren’t going into still more debt in order to buy it.
Why does our age, alone among all, consider increased consumer debt and the increase in consumption that goes along with it to be “creating wealth”? Isn’t this truly merely consuming wealth? And given that the vast majority of these consumer goods that we’re purchasing with our borrowed stimulus funds are made in foreign factories by foreign workers, while our own citizens are occupied predominantly with serving each other (increasingly foreign-produced) food and selling each other incomprehensible financial documents (not to mention helping to import the foreign products that we’re doing all this in order to buy), isn’t this consumption of wealth without ever replacing it with anything?
Certainly, these foreigners (who are mostly perfectly decent people in their own right) are creating wealth, and we’re paying them to do so. But what happens when they decide to start selling their new wealth to their own people? And even besides this, is it right for us to rely on the Chinese keeping their workers in borderline slavery in order to provide us with cheap goods, while we fritter away our immense national resources, both human and natural, voraciously consuming the wealth produced on other shores than ours?
At this point Distributist readers will doubtlessly expect me to begin railing against industrialization and Capitalism. But truly, this financial system isn’t even really Industrial Capitalism (which can certainly be rightly railed against); it’s something called finance Capitalism, which in some ways is even worse. Industrial Capitalism does, in fact, isolate all the means of production into the hands of the wealthy few, leaving the rest in near-slavery; however, at least the non-owning many can easily ascertain that they’re being exploited by the owning few. Finance Capitalism, on the other hand, ostensibly raises the wealth of the non-owners, and they acquire more and more material goods. This lulls the non-owners into total complacency, unaware that they and their nation are being stripped to the bone by the financiers, who are funding the shipment of the national wealth to foreign countries to be worked by foreign slaves.
Still, our benevolent leaders insist that this sort of activity is really creating wealth for our nation. But what is wealth, really? Surely it’s not simply money, green paper or binary signatures on banks’ hard drives? No; money is simply an agreed-upon standard for exchanging wealth, not wealth itself. Hilaire Belloc, in his seminal Distributist work The Servile State, defined wealth as “matter which has been consciously and intelligently transformed from a condition in which it is less to a condition in which it is more serviceable to a human need.” In other words, wealth is anything that’s been worked on to make it more useful; so, for example, lumber, which are trees made into a more useful form for building, is wealth. Wealth is created by production, which is the “special, conscious, and intelligent transformation of his environment which is peculiar to the peculiar intelligence and creative faculty of man.” The means of production, then, are simply the tools, such as saws and hammers, and resources, such as land and timber, necessary to produce wealth.
Certainly, the non-owning worker has more stuff than ever before; he has more things which have been made more useful for human needs, and consequently he is in possession of more wealth. However, he still does not own the means of production, the way in which wealth is produced. Under Industrial Capitalism, for a very long time, the non-owning worker was confined in poverty and squalor, and distributists have always identified this as truly evil. Many capitalists have hailed the arrival of finance capitalism as the end of that era, in which even the lowly non-owning workers are awash in unprecedented amounts of wealth. Doesn’t this, truly, eliminate the objections of distributists to the Capitalist economy? The workers, after all, are well cared for.
However, while Distributism has always decried the physical exploitation of the worker, it has first and foremost decried his economic exploitation. Distributists object strongly to a characteristic common to both industrial and finance Capitalism, one which remains no matter how stuffed with Chinese-made garbage the non-owning worker’s heavily-mortgaged house might become: the fact that the vast majority of society are non-owning workers, with only a very few owners of productive property. In other words, while workers in the Capitalist world often now have wealth, they still have no means of producing wealth, and that makes all the difference.
As Belloc observed, “[w]ithout wealth man cannot exist.” Without the constant transformation of natural resources to a form more useful for man’s needs, man will die. And so it follows that “to control the production of wealth is to control human life itself.” But in our society, the means of producing wealth are owned by only a very few, and even those few have moved most of those means into the custody and control of foreign producers. Which means, of course, that the vast majority of our society, who are non-owning workers, are really and truly controlled by those few owners and their foreign counterparts. Thus, the state is, in a very real sense, servile, as Belloc warned. (As an aside, it is also servile in a way that Belloc never predicted: not only are the citizens of the state servile to the owning few, but the state as a whole is servile to the other nations which produce the wealth which it consumes.) As Leo XIII observed, two decades before The Servile State flowed from Belloc’s pen, ownership by only a few in this way has “laid a yoke almost of slavery on the unnumbered masses of non-owning workers.” (Leo XIII, Rerum Novarum.)
That is what distributists despise most about our current system: that it makes the vast majority of us near-slaves of the owning few. Furthermore, it makes the state as a whole incapable of producing what it needs itself; it must instead rely on other states to produce it, which is what has led to many of our economic problems today. Distributism, on the other hand, seeks to establish the Distributist state, in which, as Belloc said, so great a number of the citizens are owners that the society as a whole takes on the character of owners, rather than of non-owning workers. Distributism seeks the greater distribution of productive property, the means of producing wealth. That is the first and primary economic goal of the system.
What property is productive? There are almost limitless correct answers to that question, but fundamentally wealth is produced from four forms of such property: the fields, the forests, the factories, and the mines. By fields we mean those pieces of land that are used for the all-important necessity of raising food, both farmland and pasture. By forests we mean those pieces of land that are covered with trees and wild growth, from which can be harvested timber, furs, and innumerable other natural resources. By factories we mean those pieces of land, including the improvements thereon, that take the products from the other three types of productive property and transform them into more useful forms, including the tools necessary to do so; it covers everything from a corner shoemaker’s shop to an auto-making factory. Finally, by mines we mean those parts of the land that are dedicated to the extraction of mineral resources to be used as such, such as gold, silver, iron, and copper mines.
Notice what is not included in this list. Restaurants; real estate brokers; attorneys (my own profession); stock traders; merchants; shopping malls; supermarkets. All of these professions are necessary (even if some ought to be made much smaller) and good within their proper spheres; but none of them are productive of wealth, and thus all of them are secondary to those which are. Even in a Distributist society there will be non-owners who perform certain necessary tasks; however, the vast majority of citizens will be owners of wealth-producing property.
In those four places are the creation of wealth, not Wall Street, and certainly not the Washington mall. None of the proposed government projects to help expand our imploding economy involve creating wealth; they just involve the non-productive consumption of it, which we’ve been doing for far too long already. So we’ll just keep consuming the wealth created by others until either they realize that they don’t need us anymore (since they’re already producing all the wealth themselves), or we realize that we’re almost slaves and rise up to fix the problem ourselves.
But to return to the stated purpose of this article, how can the Distributist help establish the distributive state right now, even within the bowels of finance capitalism? It’s really quite simple: begin producing wealth. Even if one is in a non-productive profession within our currently terminal economy (as I am), and even if one has no financially feasible means of escaping that situation, one can produce wealth, even if in only a modest way.
If the Distributist has a productive hobby, let him practice it until it becomes a second profession. I know a gentleman (not a Distributist, sadly) who’s an engineer by trade, but who has a great love of woodworking, and produces many things of great beauty while practicing that hobby. In so doing, he’s established a small factory, one of the four great means of production; he is really producing wealth, a Distributist thing for him to do, though his economic principles vary.
Personally, I am an attorney, one of those that Dmitry Orlov called “mere embroidery on the fabric of an affluent society” (Post-Soviet Lessons for a Post-American Century (Part Two of Three)). While this overstates the point, it does identify the truth that this profession is not productive of wealth in any direct way. However, that fact does not mean that I, as a Distributist, cannot do my part in creating a Distributist state. While I’m quite halting with my woodwork, I deeply enjoy gardening, though I’m very inexperienced. So I’m reading up on natural and sustainable gardening, and I’m practicing as best as I can. While I don’t have much land, I’m using what little I have to produce some wealth; that is what God made it for, after all. It is hard to imagine someone with no interest in any productive craft; let the Distributist select one and practice it, and get to work on the all-important economic task of producing things of value. It may be counter-cultural, but it’s also the only way our society can ever recover.
Wealth is wonderful; but he who produces the wealth controls the world. Let us begin to more widely distribute productive property according to our principles, and let us do so by beginning with ourselves.
Praise be to Christ the King!
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at 7:14 AM
I think this (and much traditional thought) misses the key point that moving an item from a place where it is of low value to a place where it is of high value _is_ in fact a species of “matter which has been consciously and intelligently transformed from a condition in which it is less to a condition in which it is more serviceable to a human need.” It is not just the shaping of the tree into lumber that is productive, but the transport and the logistics (the function of the merchant).
It also misses the production and transmission of knowledge. A person who develops a technique by which others can do the transformation is among the most productive members of a society. A teacher who teaches the technique multiplies his reach far beyond what he could do directly. So is the person who makes accurate weather predictions which allow a farmer to save his crop.
at 8:26 AM
Good morning, if I may make one quick comment.
Another solution, that should be implemented in addition to what you suggest is to own your stuff. A logical conclusion to the article’s points about being beholden to foreign debtholders, albeit a minor solution at the individual level, is to carry as very little amount of debt as possible. That way at least you legally own whatever property, perhaps not all of it is means of production but still property, and that creates financial security such that one can more freely practice a productive trade. That is to say, the immediate success of a productive trade isn’t the difference between a roof over your (and your family’s if applicable) head, and living on the street.
I like the principles of this article, but fret over the distance from them to our current situation. I will try to remain overly-optimistic.
Sincerely,
Matthew Wade
at 10:18 AM
+AMDG
How are either of those points missed in this article? The article notes more than once that not everyone can be or should be involved in producing actual wealth; it simply notes that producing wealth is primary in society.
The merchant is *not* producing wealth, he’s just moving it around. That’s often a valuable service, but that’s what it is: a service, not production. Society often needs such services, and always needs those of teachers; but that doesn’t mean that those services are as basic or as important as the production of wealth, without which neither of those services are necessary or even possible.
So again, please explain why you think this article neglects a just place for merchants and teachers in society.
Praise be to Christ the King!
at 10:23 AM
Daniel,
I can appreciate where you’re coming from regarding your examples of the merchant, the teacher or the weatherman. Considering the latter two I think I agree with you. However, I don’t think Donald misses this larger point (nor does “traditional” economics, if by that you might be willing to include distributist principles). In my own state, Oregon, we have (supposedly) vast amounts of timber. Yet much of the timber is shipped overseas to be turned to lumber, and then shipped back here to be sold. There’s something wrong with this.
I think this is what Donald is getting at when he states, “By factories we mean those pieces of land, including the improvements thereon, that take the products from the other three types of productive property and transform them into more useful forms, including the tools necessary to do so; it covers everything from a corner shoemaker’s shop to an auto-making factory.” Perhaps it’s not that moving an item from a place of low to high value is a problem as such, but as where, how far and to what end an item is moved or transported.
at 10:53 AM
I disagree that the merchant is never producing wealth. Sometimes, he is, sometimes he is not. The bookseller who goes through booksales and finds a valuable book that most would think trash (and likely be thrown away) has in fact done the equivalant of mining.
The human mind is the most valuable piece of wealth most of us have. Treating physical stuff as completely different in kind than mental stuff is to miss the fact that knowledge is what turns mere matter into something valuable to man.
Much merchandising and teaching fails to reach this standard, but to say that none does, I cannot accept. I see too many places where knowledge and location is the difference between trash and treasure.
Knowledge is a lot like a factory. A factory produces no wealth unless further action is taken and inputs are given. Knowledge works in much the same way.
at 11:25 AM
Misuse and too much doesn’t prove something unproductive any more than anorexia and bulemia prove food is a problem. Yes, far too little business is local. However, even if Oregon handled all the logs in local lumber mills, it would still want to sell much of the lumber (as opposed to the raw logs) elsewhere. And that requires transport and logistics.
at 11:54 AM
+AMDG
“Sometimes, he is, sometimes he is not. The bookseller who goes through booksales and finds a valuable book that most would think trash (and likely be thrown away) has in fact done the equivalant of mining.”
The miner takes what is otherwise totally inaccessible and makes it available for use. The bookseller in your example is doing something useful and valuable, but he hasn’t done what a miner does, as that book already existed and was already valuable, even if nobody knew it was there.
I think you’re conflating “productive” with “useful.” Merchants and teachers are extremely useful, and the good society requires a moderate number of both; but that doesn’t make them productive. They are providing a service; it is a necessary service, to be sure, but still not production.
Knowledge is *not* what turns matter into something valuable to man; knowledge is one of the means by which matter is made valuable. Matter is made valuable—by which I mean here that wealth is produced—by labor, which is informed by knowledge but still distinct from it. Using knowledge to inform labor in the production of wealth is production; using knowledge to impart knowledge is a wonderful thing, but production it is not.
Praise be to Christ the King!
at 3:22 PM
You are turning what is often a difference in degree into a difference in kind. The bookseller who finds a book that is inaccessible to the person who wants it and makes it accessible. A book does not have one value. It has no value to most people and a high value to others. Value is based on availability (for instance, the value of silver in goods went way down after the discovery of the mines of Mexico) and subjective preference. There is no intrinsic value to things. Things that have no value either b/c they are in a place where they have no or little real use or because people have not yet developed technology to make use of them (e.g. tar sands have only recently come to have a value as technology improved) can be made very valuable by a change of location (which is analogous to mining them out of the earth) or technology.
Matter is not made valuable by labor alone. It is made valuable by a combination of capital (both physical and intellectual) and labor. If one is missing any of those, one will produce either no value or much less. So, learning how to do something that can be put to productive is building up of the means of production every bit as much as building machine tools or digging a mine. There is no guarantee that it will be put to good use, but there is no guarantee that one will strike gold. (And yes, knowledge for its own sake does not fit this category).
at 4:36 PM
+AMDG
What we have here is a difference in first principles. This article assumes the first principles of traditional economics; you deny those first principles, or at least some of them. That’s interesting, but it’s rather like critiquing a fatwa because it forgets the divinity of Christ. The imam doesn’t care, you see; he doesn’t accept your principles. Before such a critique will make any sense to its target audience, you must first explain your first principles and justify them. In the above example, you must show that Christ is, in fact, divine. In this case, you first justify the notion that a book is absolutely valueless except in the event that somebody wants to pay for it.
Traditional economics denies this curious principle; you can find a good explanation of the principle of the just price here at the Review. If you define something as valueless until somebody ponies up some cash for it, then naturally a merchant is adding value, because he’s getting people to pony up more cash. However, that’s not a principle of traditional economics. It’s beyond the scope of this little article to discuss this; but traditional economics notes that things have value even apart from what someone’s willing to pay for it, and that thus a merchant, such as your bookseller, is providing a service, not producing new wealth. He can even charge a just price for that service; but he’s charging for the service, not for added value to the wealth itself.
“[L]earning how to do something that can be put to productive is building up of the means of production every bit as much as building machine tools or digging a mine.”
Yes; it’s very useful. But it’s still not productive until that knowledge is actually brought to bear in order to make something. Once again, I think you’re conflating usefulness with productivity; the two are not synonymous. What I do in the law is certainly useful (I’m a criminal prosecutor); it even allows producers to produce more and better, because there is reduces their fear of crime interfering with their operations. But that doesn’t make it productive.
“[T]here is no guarantee that one will strike gold.”
Correct. And until one strikes gold and is producing gold, one is not being productive; one is only trying to become productive. No wealth has yet been produced. Digging for new veins is, again, very useful; but it’s not productive until a new vein is found and exploited.
The point of this article is that our society puts the cart before the horse; tradesmen exist to distribute equitably *that which has been produced*; in other words, trade is at the service of production. In our society, production is rather at the service of trade, even when it is not pure speculation, which it all too often is in our sad times.
Praise be to Christ the King!
at 8:00 PM
This ends up with a problem of making it impossible to tell if something is productive until very far into the process. If I mine ore which is used to make machine tools which are used in a factory which burns down before producing something else, were all the previous steps unproductive?
And why is a shoemaker productive and a restaurant that provides simple food for those without kitchens not? One could argue that a shoemaker is simply providing a service—after all I could stitch my own shoes.
I reject the principles because as stated, they seem to me to have insurmountable difficulties. There seems to be no consistent way to make these determinations—the techniques will either end up making it impossible to tell if something was productive or not, based on the use others make of it, or will lead to arbitrarily calling some things productive and others not which are in fact similar. I need not formulate a full alternative to do a reductio ad absurdum.
A sounder definition would be more like: an activity is productive if it does anything to change the properties of an item that make the item more valuable to other members of the community and which does no harm to the community at large (which eliminates things like pornography which have huge externalities).
at 10:44 PM
+AMDG
“This ends up with a problem of making it impossible to tell if something is productive until very far into the process. If I mine ore which is used to make machine tools which are used in a factory which burns down before producing something else, were all the previous steps unproductive?”
What? No, of course not. Does the ore suddenly become useless because it has to be used someplace else? You’ve taken something completely useless—some iron mixed with other elements deep underground—and made into something useful, ore which can be refined. That’s productive. It has nothing to do with what other people do with it.
“And why is a shoemaker productive and a restaurant that provides simple food for those without kitchens not? One could argue that a shoemaker is simply providing a service—after all I could stitch my own shoes.”
And when you stitched your shoes, you’d be producing wealth; you’re taking leather, string, wood, nails, polish, and so forth, all useful in themselves, and making them more useful by turning them into a specific product.
There is sometimes gray area; there are arguments for a restaurant being productive, and there are arguments against it. But the principles are pretty clear.
“I reject the principles because as stated, they seem to me to have insurmountable difficulties. There seems to be no consistent way to make these determinations—the techniques will either end up making it impossible to tell if something was productive or not, based on the use others make of it, or will lead to arbitrarily calling some things productive and others not which are in fact similar. I need not formulate a full alternative to do a reductio ad absurdum.”
This isn’t a reductio ad absurdum by any stretch of the imagination. The idea that productivity depends on work extrinsic to the labor itself is something you made up; I don’t know why you impute it to me. Then, after doing so, you present a false dichotomy between this improper imputation and simply arbitrary naming of productive and non-productive activities. Do you really believe this to be a reductio ad absurdum?
“A sounder definition would be more like: an activity is productive if it does anything to change the properties of an item that make the item more valuable to other members of the community and which does no harm to the community at large (which eliminates things like pornography which have huge externalities).”
Wealth, as defined in the article, is “matter which has been consciously and intelligently transformed from a condition in which it is less to a condition in which it is more serviceable to a human need.” This definition was cribbed verbatim from Belloc (with attribution). Moving things from one place to another does not transform them; it does nothing, in fact, to the objects to change their condition at all. When I walk from my house to work in the morning, have I changed my condition? That’s the difference. Say what you like about it, but it’s neither arbitrary nor absurd.
Praise be to Christ the King!
at 9:52 AM
Things do not have an intrinsic value apart from their ability to be used. You may add all the labor you want to turn iron ore into steel, but unless it is transported to where someone else can make use of it, it is of no use to anyone. Location is as crucial to usefulness as form. I’m not disputing Belloc’s definition. I’m disputing the idea that only some of the steps that make an item serviceable to man are productive.
As an example, what does a prospector do in the simplest case? He finds (by panning gold) and transports it to someone who wants it. He doesn’t transform its properties other than location in any way. How is that different from dumpster diving for book sale discards, finding a valuable book, and transporting it?
at 3:37 PM
+AMDG
“Things do not have an intrinsic value apart from their ability to be used.”
That’s exactly the point; you’re wrong about that. Continuing to assert it doesn’t change the fact. They might have no *monetary* value, but that’s a different question.
“You may add all the labor you want to turn iron ore into steel, but unless it is transported to where someone else can make use of it, it is of no use to anyone.”
You’re still conflating “useful” with “productive.” I’m glad that there are shopkeepers who get goods together and sell them to me; they are necessary to a good society. But they’re still not adding actual value to the items; they’re only making them more accessible to me.
“He doesn’t transform its properties other than location in any way. How is that different from dumpster diving for book sale discards, finding a valuable book, and transporting it?”
But he *does*. He takes what is totally inaccessible to anyone, useless to all, and makes it useful. That’s more than just picking something up and putting a price tag on it. To say that he’s just moving ore from one place to another is an odd thesis; it’s like saying that a farmer is just moving chemicals around by biological means. Strictly speaking, it’s probably true; but it’s woefully incomplete.
“I’m not disputing Belloc’s definition. I’m disputing the idea that only some of the steps that make an item serviceable to man are productive.”
Some of the steps add value to a thing; others don’t. That’s the difference. Taking something out of the ground, where it is useless, is producing wealth; taking something already out of the ground and putting it on a store shelf is a service.
Your argument is endless. Am I in a productive profession as a lawyer, according to your theory, because I make safe production easier? In your system, what exactly *isn’t* productive?
Praise be to Christ the King!
at 12:41 AM
Daniel,
I can see the point in that a cook can take beef, potatoes, carrots, broth, flour and onions and make me a stew – the stew then being a bit of wealth by our author’s definition. But the real production was, of course, in producing the ingredients…I could eat all the items listed separately.
Perhaps we can just define wealth as any physical object altered intentionally by human action? If at the end of the day you don’t have something worthwhile to hand to another person, you haven’t produced wealth, even though you might have spent the previous 8 hours doing something very worthwhile (teaching, healing, etc).
at 7:58 PM
If you are making a distinction of type—who produces the raw materials for other processes—I don’t have a problem. However, if we are making a distinction of value, I would disagree. Those who figure out that some currently useless or low value items can be put to some valuable use—perhaps by shipping water (which is essentially free in many places) to an arid climate (where it is very valuable)—and this is in fact done, then that adds something to net benefit of humanity and makes new forms of production possible. Gaining knowledge and movement of goods is an indispensible part of primary production beyond a very rudimentary level. They are not productive if nothing further happens, but if that something further happens, I cannot make say that the step that makes use of the moved items is more basic to the productive process than the movement.
at 8:02 PM
Have you ever tried eating raw potatos? :) The cooking process is nearly as important as the growing process in that case. For carrots, they can be consumed in either way, so you case is much stronger there.
In healing, you have produced something—health. You’ve made production possible, where it was not previously.
at 7:17 AM
+AMDG
As I noted, cooking is borderline. Raw potatoes are pretty disgusting (carrots, on the other hand, are better raw).
But you’re still not distinguishing “useful” from “productive.” Moving water isn’t productive; you’ve produced nothing new, you’ve just moved it from one place to another. The farmer that uses that water to grow crops has produced, and he couldn’t have done so without the moved water (why he’s farming in such an arid region is another question; perhaps he should try ranching or something instead), which means that moving it is a great service for which the mover justly charges a fee. But it’s still a service.
Gaining knowledge and moving goods are indispensable elements *leading up* to production, but they’re not production themselves. In other words, teaching and transporting certainly are valuable *services*, but they’re not adding value to any given thing.
I still don’t see where your tracing of production all the way down the line of every useful service can end. If I prosecute a thief, who would otherwise have stolen copper out of the motors at a factory, which would have prevented that factory from producing, have I engaged in production? By your argument, I have. I find this to be clearly overextensive.
Praise be to Christ the King!
at 2:48 PM
Have you read John Medaille’s new book yet? I got to his section on this a few days ago and from my reading he agrees with me that _moving_ is productive—basically anything that adds value is productive.
I think his treatment of the false commodity of labor also touches indirectly on education. Labor is a raw material and it requires preparation and maintenance like any other raw material. What is being produced by education is labor of a certain skill level.
at 2:58 PM
+AMDG
No, I’ve not read it, unfortunately. I don’t know if he agrees that shipping things back and forth is productive or not.
“[B]asically anything that adds value is productive.”
This is begging the question. I agree that everything that adds *value* is productive; I do not agree that everything which increases *cost* is productive. The whole point I’m making is that while one can certainly charge for moving things, and that such charging does increase the price of the item, that doesn’t mean that it adds actual value to it.
Praise be to Christ the King!