Front Page Titles (by Subject) 6: Christian Socialism - Socialism: An Economic and Sociological Analysis
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6: Christian Socialism - Ludwig von Mises, Socialism: An Economic and Sociological Analysis 
Socialism: An Economic and Sociological Analysis, trans. J. Kahane, Foreword by F.A. Hayek (Indianapolis: Liberty Fund, 1981).
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Historically it is easy to understand the dislike which the Church has shown for economic liberty and political Liberalism in any form. Liberalism is the flower of that rational enlightenment which dealt a death blow to the regime of the old Church and from which modern historical criticism has sprung. It was Liberalism that undermined the power of the classes that had for centuries been closely bound up with the Church. It transformed the world more than Christianity had ever done. It restored humanity to the world and to life. It awakened forces which shook the foundations of the inert traditionalism on which Church and creed rested. The new outlook caused the Church great uneasiness, and it has not yet adjusted itself to even the externals of the modern epoch. True, the priests in Catholic countries sprinkle holy water on newly laid railways and dynamos of new power stations, but the professed Christian still shudders inwardly at the workings of a civilization which his faith cannot grasp. The Church strongly resented modernity and the modern spirit. What wonder, then, that it allied itself with those whom resentment had driven to wish for the break-up of this wonderful new world, and feverishly explored its well-stocked arsenal for the means to denounce the earthly struggle for work and wealth. The religion which called itself the religion of love became a religion of hatred in a world that seemed ripe for happiness. Any would-be destroyers of the modern social order could count on finding a champion in Christianity.
It is tragic that it should have been just the greatest minds of the Church, those who realized the significance of Christian love and acted on it, who took part in this work of destruction. Priests and monks who practiced true Christian charity, ministered and taught in hospitals and prisons and knew all there was to know about suffering and sinning humanity—these were the first to be ensnared by the new gospel of social destruction. Only a firm grasp of liberal philosophy could have innoculated them against the infectious resentment which raged among their protégés and was justified by the Gospels. As it was, they became dangerous enemies of society. From the work of charity sprang hatred of society.
Some of these emotional opponents of the liberal economic orders stopped short at open opposition. Many, however, became socialists—not, of course, atheistical socialists like the proletarian social-democrats, but Christian Socialists. And Christian Socialism is none the less Socialism.
It was no less a mistake for Socialism to seek a parallel with itself in the early centuries of the Christian Era as in the first congregation. Even the “consumers communism” of that early congregation vanished when expectation of the coming of the Kingdom began to recede into the background. Socialist methods of production did not, however, replace it in the community. What the Christians produced, was produced by the individual within his own farm or shop. The revenues which provided for the needy and met the cost of joint activities came from contributions, voluntary or compulsory, of members of the congregation, who produced on their own account with their own means of production. A few isolated instances of socialist production may have occurred in the Christian congregations of the first centuries, but there is no documentary evidence of it. There was never a teacher of Christianity, whose teachings and writings are known to us, who recommended it. We often find the Apostolic Fathers and the Fathers of the Church, exhorting their followers to return to the communism of the first congregation, but this is always a communism of consumption. They never recommend the socialistic organization of production.38
The best known of these exhortations in praise of communism is that of John Chrysostom. In the eleventh of his homilies to the Acts of the Apostles the Saint applauds the consumers’ communism of the first Christian congregation, and with all his fiery eloquence advocates its revival. Not only does he recommend this form of communism by reference to the example of the Apostles and their contemporaries, but tries to set forth rationally the advantages of communism as he conceives it. If all the Christians of Constantinople were to hand over their possessions to a common ownership, then so much would be amassed that all the Christian poor could be fed and no one would suffer want, for the costs of joint living are far smaller than those of single households. Here St. Chrysostom adduces arguments similar to those brought forward today by people who advocate one-kitchen houses or communal kitchens and try to prove arithmetically the economies which a concentration of cooking and housekeeping would achieve. The costs, says this Father of the Church, would not be large, and the enormous fund which would be amassed by uniting the goods of individuals would be inexhaustible, especially as God’s blessings would then be poured yet more lavishly on the faithful. Moreover, every newcomer would have to add something to the general fund.39 These sober, matter of fact expositions show us that what Chrysostom had in mind was merely joint consumption. His comments on the economic advantages of unification, culminating in the statement that division into fragments leads to diminution, while unity and co-operation lead to increase, of well-being, do credit to their author’s economic perception. On the whole, however, his proposals reveal a complete lack of understanding of the problem of production. His thoughts are directed exclusively to consumption. That production comes before consumption had never occurred to him. All goods were to be transferred to the community (St. Chrysostom presumably thinks here of their sale, following the example of the Gospels and the Acts of the Apostles) after which the community was to begin consuming in common. He had not realized that this could not go on for ever. He believed that the millions which would be gathered together—he estimates the treasure at between one and three million pounds weight of gold—-could never be used up. One notices that the saint’s economic insight ends just where the wisdom of our social politicians also tends to end, when they try to reorganize the whole national economy in the light of experience gained in charitable work in the field of consumption.
St. Chrysostom explains that people fear to risk the change to the communism, which he recommends, more than a plunge into the ocean. And so the Church, too, soon dropped the communistic idea.
For monastic economy cannot be regarded as Socialism. Monasteries which could not subsist on private donations usually lived on the tithes and dues of rent-paying peasants and the yields of farms and other property. Very occasionally the monks themselves worked, on a sort of producers’ cooperative basis. The whole monastic existence is an ideal of life accessible only to the few, and monastic production can never be taken as a standard for the whole commonwealth. Socialism, on the other hand, is a general economic system.
The roots of Christian Socialism are found neither in the primitive nor in the medieval Church. It was the Christianity that emerged revitalized from the tremendous struggles of faith in the sixteenth century which first adopted it, though only gradually and in the face of strong opposition.
The modern Church differs from the medieval Church in that it has continually to fight for its existence. The medieval Church ruled unchallenged; all that men thought, taught, or wrote emanated from it and eventually returned to it. The spiritual inheritance of classic antiquity could not shake its dominion, for its ultimate meaning was beyond the understanding of a generation cramped by feudal concepts and ideas. But in proportion as social evolution progressed in the direction of rational thought and action, men’s efforts to shake off the fetters of traditional thought in respect of ultimate truths became more successful. The Renaissance strikes at the root of Christianity. Based on classical reasoning and classical art, its influence inevitably tended to lead away from the Church or at best to leave it out of account. Far from trying to stem the tide, churchmen became the most zealous protagonists of the new spirit. At the beginning of the sixteenth century no one was further removed from Christianity than the Church itself. The last hour of the old faith seemed to have sounded.
Then came the great revulsion, the Christian counter-revolution. It did not come from above, from the princes of the Church or from the monasteries, in fact it did not come from the Church at all. It was forced upon the Church from outside, springing from the depths of the people where Christianity still survived as an inner force. The assault on the moribund Church with a view to its reformation came thus from outside and below. The Reformation and the Counter-reformation are the two great expressions of this ecclesiastical rebirth. They differ in origin and in method, in their forms of worship and prescribed doctrines, above all in their presuppositions and achievements in political affairs; but they are at one in their ultimate aim: to base the world order once more on the Gospels, to reinstate faith as a power controlling the minds and hearts of men. It is the greatest revolt of faith against thought, of tradition against philosophy known to history. Its successes were enormous, and it created Christianity as we know it today, the religion that has its seat in the heart of the individual, which controls conscience and comforts the soul. But complete victory has been denied it. Though it warded off defeat—the fall of Christianity—it could not destroy the enemy. For ever since the sixteenth century this struggle of ideas has been pursued almost without intermission.
The Church knows that it cannot win unless it can seal the fount from which its opponent continues to draw inspiration. As long as rationalism and the spiritual freedom of the individual are maintained in economic life, the Church will never succeed in fettering thought and shepherding the intellect in the desired direction. To do this it would first have to obtain supremacy over all human activity. Therefore it cannot rest content to live as a free Church in a free state; it must seek to dominate that state. The Papacy of Rome and the Protestant national churches both fight for such dominion as would enable them to order all things temporal according to their ideals. The Church can tolerate no other spiritual power. Every independent spiritual power is a menace to it, a menace which increases in strength as the rationalization of life progresses.
Now independent production does not tolerate any spiritual over-lordship. In our day, dominion over the mind can only be obtained through the control of production. All Churches have long been dimly aware of this, but it was first made clear to them when the socialist idea, rising from an independent source, made itself felt as a powerful and rapidly growing force. It then dawned upon the Churches that theocracy is only possible in a socialist community.
On one occasion this idea was actually realized. This was when the Society of Jesus created that remarkable state in Paraguay, which was not unlike an embodiment of the ideal Republic of Plato. This unique state flourished for more than a century, when it was destroyed by external forces. It is certain that the Jesuits did not found this society with the idea of making a social experiment or of setting up an example for other communities of the world. But ultimately they were aiming in Paraguay at no more than what they have everywhere tried to achieve, but without success, on account of the great resistance encountered. They have tried to bring laymen—as children needing the guardianship of the Church—under the beneficial government of the Church and of their own Order. Neither the Jesuit order nor any other ecclesiastical body has since tried anything like the Paraguayan experiment. But it is plain that all Western Churches, as well as the Roman Catholic Church, are aiming at the same goal. Remove all the obstacles which hamper the Church to-day, and nothing will prevent it from repeating the Paraguayan achievement everywhere.
That the Church, generally speaking, takes up a negative attitude to socialist ideas does not disprove the truth of these arguments. It opposes any Socialism which is to be effected on any other basis than its own. It is against Socialism as conceived by atheists, for this would strike at its very roots; but it has no hesitation in approaching socialist ideals provided this menace is resumed. The Prussian Church stands at the head of Prussian State Socialism and the Roman Catholic Church everywhere pursues its special Christian social ideal.
In face of all this evidence, it would seem that only a negative answer can be made to the question asked above: whether it might not be possible to reconcile Christianity with a free social order based on private ownership in the means of production. A living Christianity cannot, it seems, exist side by side with Capitalism. Just as in the case of Eastern religions, Christianity must either overcome Capitalism or go under. Yet, in the fight against Capitalism today, there is no more effective war-cry than Socialism, now that suggestions of a return to the medieval social order find few supporters.
But there may be an alternative. No one can foresee with certainty how Church and Christianity may change in the future. Papacy and Catholicism now face problems incomparably more difficult than all those they have had to solve for over a thousand years. The world-wide Universal Church is threatened in its very being by Chauvinist nationalism. By refinement of political art it has succeeded in maintaining the principle of Catholicism through all the turmoil of national wars, but it must realize more clearly every day that its continuance is incompatible with nationalist ideas. Unless it is prepared to succumb, and make way for national churches, it must drive out nationalism by an ideology which makes it possible for nations to live and work together in peace. But in so doing the Church would find itself inevitably committed to Liberalism. No other doctrine would serve.
Ethical Socialism, Especially That of the New Criticism
[38. ]Seipel, Die wirtschaftsethischen Lehren der Kirchenväter (Vienna, 3907), pp. 84 ff.
[39. ]Migne, Patrologiae Graecae, Vol. LX, pp. 96 ff.