A little music for a Sunday evening

One of my friends on Facebook posted the chorus to “Revive Us Again” as her status, and now I have Ashley Cleveland’s version stuck in my head. Of course, it doesn’t take much to get that one stuck in my head; nor do I regret it, because it’s a great version. It’s also well worth sharing—so, without further ado:

As long as I’m at it, I’ve been meaning to post Moses Hogan’s phenomenal arrangement of “The Battle of Jericho” ever since my wife discovered it a couple weeks ago; since it’s in the same general vein, albeit a choral arrangement rather than solo voice with a blues-rock band, now’s as good a time as any.

The Dance of the Trinity

(Genesis 1:1-3; Galatians 4:4-7, 1 John 4:6-10)

The doctrine of the Trinity is perhaps the most difficult of all Christian beliefs. It’s hard to understand how God can be one, and yet three; it’s hard to define what we mean when we say that; it’s even hard to figure out what words we can use when we talk about this. The traditional formulation is that God is three persons in one being, but that has its problems; one of my seminary professors, J. I. Packer, insisted that we really couldn’t say anthing more than that God is three things in one thing, but there’s a problem with that, too—things are impersonal, and God is clearly personal.

So it’s hard to wrap our minds around this, as you can see from all the different illustrations people use. St. Patrick taught the Irish about the Trinity by holding up a shamrock, with its three leaves; others hold up the egg, which consists of yolk, white, and shell; my Nana preferred to talk about how each of us has multiple roles, so that for instance I am a son to my parents, a husband to my wife, and a father to my children. All of these are inadequate, though; in fact, some of them, if we really thought about them seriously, would lead us far astray from the biblical witness.

Actually, though I don’t trust attempts to illustrate the Trinity, the best one I’ve ever run across is the structure of our federal government. That may sound strange to say, but I’ve actually read folks who argue that trinitarian theology was in the back of the Founders’ minds (some of them, anyway) when they designed it. I don’t know about the history there—it’s an interesting idea, but I haven’t seen any primary sources that support it—but as an analogy, it has its points. There is a certain hierarchy and structure to our branches of government, but none of them are dominant; each does different things; and the relationship between them constitutes our government and makes things happen. Thus, for instance, laws are passed by the legislative branch, executed and administered by the executive branch, and enforced by the judicial branch.

Of course, God is unlimited and perfect, while our government is limited and imperfect (though it occasionally forgets the fact) because it’s composed of limited and imperfect people, but there are some real parallels there that are worth considering. One could even argue that the fact that our government is designed to function in a way analogous to the divine Trinity might have something to do with why this “noble experiment,” as Abraham Lincoln called it, has turned out so well. I would never use politics to prove theology, but it’s an interesting thing to think about.

Of course, this analogy also has its dangers—including the temptation to snipe about the tendency of government to think it’s God—but it also has this advantage, that it points us to the reason why the doctrine of the Trinity matters. It’s easy to think that it really doesn’t, because it seems so abstruse and arcane and removed from real life; it’s easy to figure that this is just a case of people with more brains than sense and too much time on their hands cooking up the most complicated thing they could think of. In truth, though, this is anything but. Granted that the Bible never uses the word “Trinity” and that there is no one passage that teaches it, this is nevertheless a doctrine that is biblically necessary and profoundly important to our understanding of God.

First, it’s biblically necessary because it’s the only way to reconcile all the biblical statements about God. Obviously, God is one and there is only one God—Deuteronomy 6 makes that clear—and God the Father is God. But Jesus Christ also claimed to be God, in many ways. John 5:18: “This was why the Jews were seeking all the more to kill him, because . . . he was even calling God his own Father, making himself equal with God.” John quotes him multiple times as calling himself the Son of God, and identifies him in the opening of his gospel as God, but distinct from the Father. Later on in John 5, Jesus identifies himself as the one who will call the dead to rise at the end of time and carry out the final judgment. Luke 5, the healing of the paralytic, Jesus forgives the man’s sins and we see the reaction of the Pharisees: “Who can forgive sins but God alone?” John 10:30, he declares, “I and the Father are one”; John 8:58, he tells the Jewish leaders, “Before Abraham was, I AM”—claiming the unspoken name of God as his own rightful name. Biblically, on the testimony of Jesus, he and the Father are distinct, in relationship with one another, and both fully God.

The evidence for the Holy Spirit on this point is not as extensive, but it’s still clear. For instance, Paul says in 2 Corinthians 3:17-18, “The Lord is the Spirit, and where the Spirit of the Lord is, there is freedom. And we all, with unveiled face, beholding the glory of the Lord, are being transformed into the same image from one degree of glory to another. For this comes from the Lord who is the Spirit.” The Spirit of God is shown to be involved in creation, in Genesis 1; and in John 15:26, Jesus teaches his disciples that the Spirit proceeds from the Father. The Father didn’t create the Spirit, the relationship is something much closer than that; the Spirit is of the same being as the Father. And then in Galatians 4, the Spirit is identified as the Spirit of the Son, indicating that there’s a similar close connection there. 2 Corinthians is the only place I can think of where the Bible comes flat out and calls the Holy Spirit God, but throughout the New Testament he is treated as God.

So the Father is God and Jesus the Son is God and the Holy Spirit is God, and there is only one God; so we have three, and we have one, and somehow those are both true at the exact same time, and that’s God. Even one of the principal names of God in the Old Testament allows for that, because it’s a plural form. People have broken their brains trying to figure out exactly how that works, and nobody’s ever gotten there yet; the only thing that we can say for certain is that the only people who have produced explanations that human beings can fully understand have done so by denying one part or another of the biblical witness, making God less than what the Bible says he is. Or perhaps we should say, what he are, or what they is; ordinary language just doesn’t express it. All we can do is accept that this is one of those things that’s beyond our understanding—and that it ought to be, that this is a good thing. After all, any god small enough for us to fully understand would be too small to be God. When you consider that we don’t even fully understand each other, or even ourselves, we ought to expect that God should be too big for us to wrap our little minds all the way around.

Still, just agreeing with this isn’t enough. There are those who accept the doctrine of the Trinity as true but unimportant, and that’s a major mistake. For one thing, that always seems to lead to collapsing the work of one Person of the Trinity—most often the Holy Spirit, but not always—into the work of the others, or even into the work of the church. As Dr. Packer has pointed out, the latter is one of the characteristic theological errors of the Roman church—it’s why he always insisted we should study the great Eastern Orthodox theologians, because in the West, Augustine got it wrong and everybody followed him; it’s also why one of the strong emphases of the Reformation, out of which our part of the church tradition comes, was on a renewal and reinvigoration of Trinitarian thought, including a return to taking the work of the Spirit seriously. This is critical, because all three Persons of God are involved in our salvation, and all three are involved in our ongoing life. Somehow, whenever we start to lose sight of the work of one of them, we always end up losing sight of the gospel along with it; it always seems to result in legalism and salvation by works in the end.

As well, the doctrine of the Trinity reveals to us a highly significant truth: God is relational within his very nature. This is why John can say, in 1 John 4, that God is love. Have you ever stopped to think about that? This isn’t an adjective, like saying that God is good, or God is just; that would have been “God is loving.” Which is true, but not the same thing. Nor is this the same as saying “God loves.” Nor is this equal to saying “Love is God”—that we worship an emotion, or an impersonal force—because God is personal, a being, not merely a force. Is this statement just hyperbole? In other contexts, it could be, but that doesn’t fit with 1 John, where it’s made quite straightforwardly to support John’s assertion that anyone who does not love does not know God. This isn’t just praise of God, it’s a serious statement about his nature and character.

Spoken of any single person, these words would not make sense; but God isn’t just a single person. Instead, he is three in one, and the persons of God exist in eternal relationship with each other—relationship that consists of pure, unflawed, unadulterated love. We can say that God is love because love is the essence of his nature, because he exists eternally in love among themself. The Father loves the Son and the Spirit, the Son loves the Father and the Spirit, the Spirit loves the Father and the Son, and this is who God is, and this is why he do what they does.

The Greek Fathers expressed this by borrowing the word perichoresis from the Greek—it’s the word for a circle dance in which the dancers are whirling about in sometimes highly complex patterns, so that there is constant movement, each yielding to the other and being yielded to in turn. The relationship of the Trinity, they saw—and rightly, I think—is a joyful dance of mutual celebration.

Once we get hold of this, it helps us to understand some things about God that we may find puzzling or even off-putting. For instance, I’ve known people to complain about the fact that God describes himself as a jealous God, demanding whole-hearted, selfless praise from his people and indeed from the whole world; why, they ask, would we want to worship a God like that? And how does that square with Paul’s praise for the humility of Christ, who gave up his glory and his prerogatives for our sake? I’ve actually heard a preacher—one I otherwise respected quite highly—come out and call God a narcissist, and then try to make that OK by arguing that God is so great that he’s the only one who has the right to be a narcissist. I don’t think that flies. But I think this makes more sense when we realize what we’re seeing here: each Person of God is jealous for the praise that each of the other two deserves. When we ignore the Holy Spirit and deny his work, for instance, I’m sure the Spirit is grieved, but I would imagine that it’s the Father and the Son who are really displeased by that.

This also helps us understand what God is on about in our lives. I’ve said this before, that God didn’t create us because he was lonely, because he needed someone to love or to love him; he already had that. Rather, he created us as an extension of his love. We are not children of God in the same way Christ is the Son of God, but he created us in order to adopt us as his children, in order to expand the circle of the divine love by inviting us into it and including us within it. Of course, it wasn’t long before the first humans were convinced there was something better out there, and we’ve been following various branches of that rabbit trail ever since; and so God, who created us in love, pursued us in love, and redeemed us in love. His intent now is the same as it ever was, just with a lot of suffering mixed in as a consequence of our distrust and rebellious self-will.

Finally, I think this helps us see clearly who we are in God, and to understand why all our efforts to bargain with him or earn his favor are pointless and doomed to failure. God doesn’t need our love, and he doesn’t need anything we can give him—he is complete in themself. As such, he’s not out to get anything from us, or to try to manipulate us for his own benefit, because we can’t benefit him. He simply loves us because he is love, and he delights in our love for the same reason; he gives us work to do because he loves us, because whether we understand it or not, we need it, and he takes pleasure in us when we trust him enough to do what he gives us to do. He delights in us when we delight in him, when we trust his grace, when we seek his presence. Everything we can give God is purely extra—that’s why he takes so much pleasure in what we give him. He doesn’t love you because of what you’ve done, or because of what you might do; he simply loves you because that’s who he is and that’s why he made you—and whatever else may change, that never will, and so God’s love never will.

Bill James comments on the Sestak scandal

Well, OK, not exactly; but given that people are now defending the White House’s job offer to Rep. Joe Sestak by reminding us that the Reagan White House may have tried something similar in California with Sen. S. I. Hayakawa 28 years ago, I think this from James’ entry on Brewers Hall of Famer Robin Yount in his New Historical Baseball Abstract is very much on point:

In 1978, after Yount had been in the major leagues four years, he held out in the spring, mulling over whether he wanted to be a baseball player, or whether he really wanted to be a professional golfer.

When that happened, I wrote him off as a player who would never become a star. If he can’t even figure out whether he wants to be a baseball player or a golfer, I reasoned, he’s never going to be an outstanding player. . . .

But as soon as he returned to baseball, Yount became a better player than he had been before; his career got traction from the moment he returned. What I didn’t see at the time was that Yount was in the process of making a commitment to baseball. Before he had his golf holiday, he was there every day, but on a certain level he wasn’t participating; he was wondering whether this was really the sport that he should be playing. What looked like indecision or sulking was really the process of making a decision.

This is often true. What Watergate was about was not the corruption of government, as most people thought, but rather, the establishment of new and higher standards of ethical conduct. Almost all scandals, I think, result not from the invention of new evils, but from the imposition of new ethical standards. . . . In the biographies of men and nations, success often arrives in a mask of failure.

I think James’ argument is well-taken, and very much applicable to the Sestak scandal. The irony of it all is that the new ethical standards that the Obama White House is now resisting, with some help from a press corps that really doesn’t much want to go after them, are the product of the Obama campaign. The people now insisting that politics as usual is “perfectly appropriate” are the same people who were telling us two years ago that we needed to vote for Sen. Obama because politics as usual is unacceptable. Maybe it was unrealistic then; it still looks bad for them now. As the Wall Street Journal summed the matter up,

It’s possible that all we really have here is a case of the Obama White House playing Washington politics as usual, which the White House refused to admit for three months because this is what Mr. Obama promised he would not do if he became President. However, this is clearly what he hired Mr. Emanuel to do for him, and given his ethical record Mr. Clinton was the perfect political cutout. So much for the most transparent Administration in history.

Then again, George W. Bush merely exercised his right to fire a handful of U.S. Attorneys, and Democrats made that a federal case for years even though it has since gone nowhere legally. The Emanuel to Clinton to Sestak job offer still needs a scrub under oath by the Justice Department and the relevant Congressional committees.

I believe the phrase we were looking for here is “hoist with their own petard.”

What’s different about Jesus (updated)

Everybody in the post-Christendom West seems to want to claim Jesus, even if they don’t actually know anything about him or like what he actually taught; the vestiges of the cultural authority the church used to have (which are, admittedly, a lot greater here in the U.S. than elsewhere) no doubt have something to do with that, along with the lingering sense that Jesus was somebody really special. The result is a great many attempts to bring Jesus down to the desired size so that his image can be manipulated without fear; Jesus must be reduced to just another great teacher—the greatest of all, perhaps, so long as the difference between him and, say, Buddha is understood to be a difference only of degree, not of kind.

The problem is, that just won’t wash if you actually look at Jesus; as C. S. Lewis pointed out, making the modern world aware of an argument dating back to the early days of the church, that’s the one option Jesus doesn’t leave us. He makes claims that no good, sane person would make, and says things that no one who doesn’t accept his claims would tolerate.

A man who was merely a man and said the sort of things Jesus said would not be a great moral teacher. He would either be a lunatic—on a level with the man who says he is a poached egg—or else he would be the Devil of Hell. You must make your choice. Either this man was, and is, the Son of God; or else a madman or something worse. You can shut Him up for a fool, you can spit at Him and kill him as a demon; or you can fall at His feet and call Him Lord and God. But let us not come with any patronizing nonsense about His being a great human teacher. He has not left that open to us. He did not intend to.

If you can praise him as a great teacher, it’s proof you haven’t taken him seriously. And as James Stewart points out in his book A Faith to Proclaim, this goes further even than what he taught, into how he taught.

There is nothing in the Gospels more significant than the way in which Jesus deliberately places Himself at the very centre of His message. He does not say with other teachers, “The truth is everything, I am nothing”; He declares, “I am the truth.” He does not claim, with the founders of certain ethnic religions, to suggest answers to the world’s enigmas; He claims to be the answer—“Come unto Me, and I will give you rest.” He does not offer the guidance of a code or a philosophy to keep men right through the uncertainties of an unknown future; He says, “Lo, I am with you alway, even unto the end of the world.”

Teachers are people from whom we learn and then depart, doing whatever we will with their influence in our lives and our relationship with them; their true authority extends no further than the limits of our submission. While there are many who refuse to acknowledge Jesus’ authority, it is not in reality so limited—indeed, it isn’t limited at all; and he did nothing whatsoever to encourage us to think that it was, or is.

Update: It occurred to me today that I missed an even more important distinction in that last paragraph. Teachers are, as a class, primarily important to us for what we learn from them; there may be a significant relationship there as well, but not necessarily, and even when there is, it’s almost always secondary. That’s not to say anything about teachers, but rather about the way our society understands education: the importance of teachers in our lives is all about us. Jesus is primarily important to us for who he is, for our knowing him and being united to him; what we learn from him is secondary, important not for its own sake but because it contributes to our relationship with him.

This is depressing

I haven’t been over to Viola Larson’s blog, Naming His Grace, for a while—in large part because, for a lot of reasons, I’ve been very low on energy for dealing with the internecine warfare in the PC(USA)—and now I rather wish I hadn’t. Nothing against Viola in the slightest, and in fact it’s a good thing that I know about this . . . I just wish it wasn’t there to know about.

In an attempt to get the Presbyterian General Assembly to not receive the paper Christians and Jews: People of God the Israel/Palestine Mission Network lied about the Jewish organizations in the United States suggesting that they sent a bomb to our Presbyterian headquarters and burnt down a church. They also lied about the Jewish people in their synagogues. The Israel/Palestine Mission Network lied.

Why won’t more Presbyterians speak up? Surely even those Presbyterians who believe that everything Israel is doing is wrong can’t believe that lying about Jewish organizations in the United States is the right thing to do? Why isn’t there an outcry from fellow Christians about this?

The IPMN insists that the rising anti-semitism, the caricatures of Jewish people, in all countries, is caused by the Jews themselves. That is an old story. Less than eighty years ago such lies led to the death of six million Jews.

Anti-Semitism is on the rise again, driven by this queer alliance between the Western Left and the anti-Western wing of Islam; it’s grievous to me to see people trying to use the PC(USA) to further it.

To be driven by grace

My thanks to Jared Wilson for pointing out this gem from one of my favorite NT scholars, D. A. Carson:

People do not drift toward holiness. Apart from grace-driven effort, people do not gravitate toward godliness, prayer, obedience to Scripture, faith, and delight in the Lord. We drift toward compromise and call it tolerance; we drift toward disobedience and call it freedom; we drift toward superstition and call it faith. We cherish the indiscipline of lost self-control and call it relaxation; we slouch toward prayerlessness and delude ourselves into thinking we have escaped legalism; we slide toward godlessness and convince ourselves we have been liberated.

That’s dead-on, but as Jared goes on to say, it does raise another question: what does grace-driven effort look like, and how is it different from all other forms of effort?

I think grace-driven effort springs from parking ourselves at the gospel and beholding. People who behold (super)naturally move into mission. . . .

We don’t graduate from the gospel. We hold true to it. And it alone propels us out and empowers us to press on.

Grace-driven effort is effort that flows from the joys and wonders of worship that flows from beholding the amazing gospel of God’s grace.

That’s dead-on too. If you’re having trouble seeing the distinction, you might say it’s between doing something because you have to and doing something because you want to. Legalistic religion motivates by pushing and bribing, the carrot and the stick. The push may be an appeal to fear—which is a very powerful driver in most people’s lives, since an awful lot of folks out there are slaves to fear in one way or another—or it may be a guilt trip, or it may play on people’s sense of their own weakness and inadequacy; the bribe tends to be tailored to people’s “felt needs” (hence the popular “7 Steps to a Better ________” approach). Whatever the particulars, it’s all about control, both for the leader and for the followers.

The opposite to that, of course, is the drift that Dr. Carson talks about. Grace-driven effort is a wholly other thing; it is the action that springs from amazed gratitude at the unparalleled and almost incomprehensible grace of God; from joy in worship that focuses our minds and hearts on his beauty and goodness; from desire for his restful purity and undivided holiness, which frees us from our chaotic impurity and unrighteousness, which divides us against ourselves; and from whole-hearted love for him who first loved us, and who loved us that much.

The problem, I think, is that too few of us preachers actually trust that message to have any effect; it’s too easy and too tempting to go for the “short cut,” to go right to messages prescribing whatever efforts we deem most important. But effort which does not arise in response to the gospel of grace, even if it seems to be in the right direction, is not the right sort of effort, and in the end, it will not bear fruit in keeping with repentance.

Not that I have already obtained this or am already perfect, but I press on to make it my own, because Christ Jesus has made me his own. Brothers, I do not consider that I have made it my own. But one thing I do: forgetting what lies behind and straining forward to what lies ahead, I press on toward the goal for the prize of the upward call of God in Christ Jesus. Let those of us who are mature think this way, and if in anything you think otherwise, God will reveal that also to you. Only let us hold true to what we have attained.

—Philippians 3:12-16 (ESV)

Fox News and sexual hypocrisy

Douglas Wilson, of Credenda/Agenda and Christ Church of Moscow, Idaho, is at his best when he can let his snark ascend and just turn it loose. He’s also at his best when he has something deep and profoundly important to set his teeth into and be snarky about. (This is, I think, why he was the perfect person to debate Christopher Hitchens.) As such, it’s no surprise that his recent guest piece at the Washington Post‘s “On Faith” blog, titled “Foxy News,” is Wilson at his best.

Preaching against porn while consuming it avidly is certainly inconsistent, and is what theologians in another old-timey era used to call “a sin”—a theological category that perhaps needs to be rehabilitated. But I want to consider this issue at another level—we need to start thinking about the politics of porn. . . .

A number of evangelicals are up in arms about President Obama himself, and Obamacare, and Obama-other-things, and Obama-anything-else, and are warning us in dire tones about the impending slavery that is involved in all this “socialism.” And—full disclosure here—I am economically pretty conservative myself, just slightly to the left of King Arthur, so I am not pointing out this part of it to differ with any of it. But what I am noticing in this discussion is a striking public tolerance for right-wing skankyness. When I am cruising around for my Internet news, I am far more likely to run into Moabite women at Fox News than anywhere else. . . .

Surely it should be possible to access fair and balanced news without running into women who think they are supposed to be a sale at Macy’s—with 40 percent off.

What then? On the assumption that what we are willing to associate with in public is just a fraction of what we are willing to associate with in private, one of my basic concerns about evangelical involvement in politics in the age of Obama (measured in this discussion by their general friendliness to Foxy News) is that they are not nearly as hostile to “slavery” as some of the rhetoric might seem to indicate. I know that politics is supposed to make strange bedfellows, but “strange bedfellows” was always supposed to be a metaphor, wasn’t it?

A man cannot sell himself into slavery in his private life, and then turn around and successfully take a stand as a free man in the public square. At least, that is how the thinking used to go among conservatives. If sexual indulgence is one of the more obvious bribes that can be offered to a slave, how does it change anything if a person takes the bribe in private? And if that bribe is taken in private, over time, indications of that reality will start to show up in public, in the sorts of ways I have been discussing.

Be sure to read the whole thing—it’s truly priceless. I remember when Fox was a favorite target for ire of conservatives, because of shows like “Married . . . with Children” and, yes, “The Simpsons.” (It seems a little strange now to think of that.) People would occasionally point out, as a mitigating factor, that Rupert Murdoch was pretty conservative in a lot of ways, but that was usually dismissed with the comment that the sleaze he peddled disqualified him. Until he launched Fox News, and before too long, political expediency took over . . .

Economics as a human system

I have thought more than once that someone ought to try to apply systems theory to economics in a systematic way. The application of systems theory to family therapy by Murray Bowen was a huge step forward, as was Edwin Friedman‘s work in turning Bowen’s model more broadly to congregational dynamics and leadership; Rabbi Friedman’s book Generation to Generation is one every pastor should read (and periodically re-read). Systems theory helps us to understand that problems don’t exist in isolation and can’t be addressed as if they did; we all exist within interlocking relational systems, and the problems of any given individual relate to the problems of the systems of which they are a part (and indeed, may have more to do with the health of the system than with that individual).

As a consequence, systems theory teaches us that the brute-force approach to problems, the use of compulsion and coercion, is often not the best approach, because it attacks the symptom without doing anything about the underlying issue—and indeed, will likely make the underlying issue worse. Rather, it’s necessary to address problems by changing the system. To do that, you have to identify the ways in which you are supporting the system and enabling its current dysfunction, and then change your own behavior. This changes the incentive structure within the system and shifts the stress of maintaining it off of you and on to the other members; this creates a great deal of pressure on the system which will ultimately, given sufficient time, break it, thus making real progress possible.

The same is true of our economy, which is itself a system—or perhaps one might say, a meta-system, since the “individuals” which interact are corporations, which are their own complex systems—and which is, of course, embedded in the even larger meta-system of the global economy. Problems, whether they be with companies, sectors of the economy, aspects of the economy, or whatever, don’t exist in isolation, and can’t be addressed as if they did. This means that the brute force approach, the attempt to compel the behavior one desires of a given corporation or industry through legislation and regulation, is at best highly inefficient and at worst actively counterproductive. It’s like swatting at a mobile—you put the whole thing in motion, setting it turning in ways you couldn’t have predicted, leading to results you didn’t anticipate. This is why the Law of Unintended Consequences has such force.

Rather than simply trying to regulate the economy into moral behavior, we need to recognize that it’s a complex interlocking system of human relationships, and to try to address corporate and economic issues accordingly. Obviously, this is easier said than done, as the system is far too complex to be fully comprehended by the human mind, but taking this approach at least gets us closer to understanding the real issues. For instance, don’t just look at bad behavior—whether of a rebellious teenager or a company that’s cooking the books—look at the structure of incentives within the system and see what that behavior is in response to, and what’s rewarding it.

This is not a new idea in the world of economic theory; in fact, it’s quite important in the work of the Austrian school of thought, of folks like Ludwig von Mises and F. A. Hayek. It’s one of the reasons I believe they were closer to right than other economic approaches, because they understood and emphasized that the incentive structure drives economic action—that people will tend to do what they have an incentive to do, and to avoid doing what they have no incentive to do—and that when the incentives are out of whack, it will produce behavior which will be bad for the economy. One example of this is Hayek’s Nobel Prize-winning theory of the business cycle, which makes clear that if interest rates are set such as to provide an incentive for highly speculative investments, people will speculate; the result will be an economic bubble which will eventually, inevitably, burst. Just check the housing market.

To try to rationalize the economy, then, to produce steady, sustainable growth, we need to understand (as best as possible) how our laws and regulations and the decisions of government entities like the Federal Reserve and Fannie Mae create incentives for counterproductive behavior; and then we need to work to change those incentives to reward behavior that will produce long-term health rather than short-term big profits. This means not trying to fix the economy by regulating it more—indeed, it might well mean deregulating it to some degree, not because “business can be trusted” (it can’t, but neither can government), but because deregulation simplifies the system and makes it easier to see what’s actually going on.

Hayek, by the way, though an advocate of the free market, was by no means opposed to regulation; he was enough of a realist about humanity to recognize that there is a proper role for government to play in economic matters. As such, there have been those on the Right who have criticized him for not supporting the free-market system enough. From an Austrian perspective, it seems to me, the key is that the government should only regulate cautiously and with humility, out of the expectation that it knows and understands far less than it thinks it does.

Regulation to prevent clear injustice is necessary, as are efforts to insure the free flow of information, because most people will abuse the system if you give them a clear shot and a big enough reason; but regulation to try to control outcomes is almost certain to backfire. When the government tries to pick winners and losers, you end up with crony capitalism and the disasters we’re seeing now. The best we can do is to try to keep the process as fair as possible, so that everybody’s playing by the same rules; try to keep the structure of incentives as rational as possible, so that the market isn’t tilted either towards excessive risk or excessive caution; and to remember this insight from Hayek’s 1988 book The Fatal Conceit: The Errors of Socialism (quoted at the end of the rap video “Fear the Boom and Bust”):

The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

Incidentally, the odds are pretty good that you’ve seen that rap video, produced by filmmaker John Papola and economist Russ Roberts (of George Mason University and the blog Café Hayek, which I have in the sidebar), which envisions a rap duel between Hayek and John Maynard Keynes; after all, it’s now up to nearly 1.2 million views for one version of it on YouTube alone. If not, though, unless you absolutely can’t stand rap—and maybe even then—you really ought to watch it here; it’s a great piece of work. Then go read the explication of the video (which I linked above) by one of the posters on Daily Kos (yes, seriously), and Jeffrey Tucker’s piece on the website of the Ludwig von Mises Institute. You’ll be amazed how much you can learn from a rap video. (For my own part, I’m no more a Keynesian than I ever was, but I definitely have more of an appreciation for his work now than I did.)

A Democrat not of the machine

I’ve said before that I think the greatest need in American politics is more politicians who, like Sarah Palin, are independent of the party machines, and thus willing to call out and take down their own party when it deserves it—and particularly for a Democratic equivalent to Gov. Palin. There aren’t many like that on the Republican side of the aisle (Nikki Haley, whom Gov. Palin recently endorsed for governor of South Carolina, is one notable exception; that would be why the GOP leadership down in Columbia is trying to destroy her before she wins the nomination), but if they’re thin on the ground among Republicans, they would seem to be nearly absent among Democrats. The only real figure I can find right now is blogger Mickey Kaus, currently challenging incumbent Barbara Boxer in the Democratic primary for U.S. Senate in California. His challenge is probably doomed to fail, which is too bad; I have to agree with Jonah Goldberg:

Kaus is way too liberal for me. But that doesn’t mean he wouldn’t be an exhilarating addition to the Senate in the grand tradition of Daniel Patrick Moynihan. Like Moynihan, Kaus is a fearless asker of hard and unwanted questions. He may have the single most finely attuned B.S. detector of anyone in the journalism business—or any other business.