This is a rather long article by Dr. Peter Chojnowski on the economic theory of Distributism. It is well worth the read if you have the time. For those of you that want to know more about Distributism, I have posted a link.
In truly “prophetic” utterances, the analysis of present circumstances, along with a consideration of the laws written into human nature which manifest themselves in history, can yield a prediction concerning the general outline of things to come. This judgment of the well-informed and perceptive mind, is somewhat undermined by only one factor. The universe and the “universe” of human society in which the inherent laws written into human nature by its Creator reveal themselves in historical events, is also a universe which contains free creatures who are undetermined as regards the means they can employ to achieve their specifically human end. Human freedom inserts a variable in the material necessity of the universe. This contingency and variability has its ultimate source in the spirituality of the human soul. It is precisely on account of his materialistic rejection of the human soul, that Karl Marx, for instance, could make such ridiculously precise predictions as to the “necessary” movement of economic, political, and social history. This does not mean, however, that there is not an inherent natural law which determine which human endeavors will “work” and which will lead to catastrophe. During the 19th and early 20th centuries, there were a group of scholars, theologians, philosopher, social critics, and poets, who predicted the inevitable demise of the Capitalist economic system which was just developing in Continental Europe, but had been operative for 100 years in England. When you read their works, especially the British authors of the early 20th century, here we include Hilaire Belloc, G.K. Chesterton, and Arthur Penty, one is struck by the fact that their analysis are more valid today than they were 70 or 80 years ago, their predictions more likely to be imminently fulfilled. What they predicted was nothing less than the collapse of the Capitalist system. In the case of Belloc, in his book
The Servile State, it was predicted that capitalism would soon transform itself into an economic and social system which resembled the slave economies of the pre-Christian and early Christian eras. Why did they predict such a collapse or inevitable transformation? In their writings, many reasons are given, however, we can narrow them down to three. The first, they referred to as the “capitalist paradox.” The paradox is a consequence of capitalism being an economic system which, in the long run, “prevents people from obtaining the wealth produced and prevents the owner of the wealth from finding a market.” Since the Capitalist strives both for ever greater levels of production
and lower wages, eventually “the laborer who actually produces say, boots cannot afford to
buy a sufficient amount of the boots which he himself has made.” This leads to the “absurd position of men making more goods than they need, and yet having less of those goods available for themselves than they need.”