Economic Fallacies: "The Piety Fallacy"

The Piety fallacy is uncritical action based on pietistic interpretations of scripture without regard to actual outcomes resulting from those actions.

This fallacy has a variety of expressions. In the previous post, I pointed to the jubilee code in Leviticus 25 and its use in the debate over debt cancellation and wealth distribution in developing nations. A close reading of the text clarifies that the Jubilee has nothing to do with debt cancellation or wealth redistribution. Some use the early chapters of Acts to make the case that the Bible teaches society-wide communal ownership, which a careful reading doesn’t support. Yet to champion justice for the poor and the oppressed, or to be counter-cultural against perceived mainstream values of materialism, is seen as the pious thing to do. The piety fallacy is usually grounded in genuine good intentions, but the commitment to pious responses takes precedence over critical evaluation of outcomes.   

I’ve borrowed the name for this fallacy from a lecture by Jay Richards in which he used precisely the example I thought of when he described the fallacy. Nearly twenty years ago, I remember reading about the impact of rent controls on housing in an urban economics class. There was a strong correlation between imposing rent controls and the increase in homelessness. Rent controls decreased the amount of affordable housing stock.

If a landlord cannot increase rent and the operations costs continue to rise, then all profitability is eaten up. New apartments aren’t built because developers know they can’t collect enough to make it worth their while. Apartment owners begin converting apartments into condos or non-residential uses. When rent controls have been tried in some major cities, some landlords have actually turned to arson to collect insurance money for the property they can no longer make money on or sell to anyone else. Meanwhile, the available rental housing is decreasing, making what remains more expensive. Tenants with leases don’t relinquish them even after they leave, subleasing apartments to others for what the market will bear. They get the difference between the rent control and market prices that the landlord should have gotten. This makes the rental market even tighter. Yet in nearly all rent control initiatives, pious Christians will support rent control as justice for the homeless even as they deride their opposition as impious heartless people who are callous toward the poor.

Richards offers another provocative example. He notes child labor laws came into effect in the early twentieth century, just as child labor had significantly declined within the workforce. Child labor was essential to family survival not long before this time, as it has been in agriculture throughout history. By the early twentieth century, public education was widespread, and child labor prevented children from engaging in activities that would have greater long-term consequences for them.

Today, as we look at many developing nations, justice folks champion ending all child labor. In many developing nations, half the population or more is under 18 years old. What is often not taken into account is that the alternative to children working is not children going to school for an education. The alternative is prostitution, starvation, or worse. Removing children from the workforce is not practical until basic survival needs are met. This violates our sensibilities, and it is no question far from what we desire for others. Yet uncritically imposing our pious sense of moral judgment on these cultures can do great harm, despite our best intentions. I’m not saying that the ethics with these issues are easy to sort out, but doctrinaire pietism is not the answer.

When judgment day comes, we will no doubt be held accountable for our intentions, but I’m also convinced that we will be held accountable for the use of our discernment. Many economic justice questions require us to balance competing ethical claims against each other and use discernment about what will work or not work. Uncritical pietistic actions can express naiveté, but too often, they are also personal identity statements a person uses to demonstrate their piety in contrast to those they believe are less pious. Biblical justice demands we have pious intentions and truly just outcomes.

[Index]

Comments

[Darren Belajac]

It is fascinating how I've never really considered whether child labor was unequivocally "wrong." What a Western, developed world presupposition!

In my community in the city of Pittsburgh, there is currently a good deal of economic and (eventually) infrastructure development. This is a community where 80% of the housing is rental and 30% of the households earn less than $10,000 a year (according to a 1999 census, although numbers have probably not changed much). We are working through the tough questions of how to have community development without having resident displacement and/or gentrification due to rising costs of living.

The comments on rent control (with which I agree) are apt to my situation as I have already encountered this economic fallacy. Though I must admit, I do not have an alternative answer!

[T]

Your point re: child labor is a good one: If you want to eliminate child labor, making a law against it may not get you what you're hoping for, depending on the local economy and particular situation a given child is in.

Regarding a current "translation" of the Jubilee into today's world, I'd like to get your feedback on an idea regarding public education; I'll have to email it to you.

[Michael W. Kruse]

Redevelopment and gentrification are are hard issues. We've lived in an urban core neighborhood for 18 years that has experienced considerable genetrification. It is a challegne.

[Michael W. Kruse]

I look for the e-mail T. Sounds intriguing

[Andy]

Hey Michael,

You said: "Today, as we look at many developing nations, justice folks champion an end to all child labor. In many developing nations, half the population or more is under 18 years old. What is often not taken into account is that the alternative to children working is not children going to school for an education. The alternative is prostitution, starvation, or worse. Until basic survival needs are met, removal of children from the work force is not practical. This violates our sensibilities and there is no question it is far from what we desire for others. Yet uncritically imposing our pious sense of moral judgment on these cultures can do great harm, despite our best intentions. I’m by no means saying that the ethics with these issues are easy to sort out but doctrinaire pietism is not the answer."

I think I hear you desire for real solutions, but I worry than in an attempt to wrestle with what's on the ground, you come across as not appreciating the place of "visionary rhetoric" {i'll use that instead of doctrinaire pietism}. Surely, we call for the kingdom to come in these developing nations, which would see basic needs met AND the end of child labor etc etc. While having to soberly iron out pragmatic solutions in real time, much of what Jesus did and subsequent apostles was rhetorical. Would you agree that much of the prophets, Jesus and early church was involved in painting stories that invited people to imagine a new future, while knowing that practical realities on the ground needed to be worked through?

If this is the case, I want the justice folks heralding their stuff and I also want those who walk us through step by step tangible solutions.

My 2 Cents...

[Michael W. Kruse]

"Surely, we call for the kingdom to come in these developing nations, which would see basic needs met AND the end of child labor etc etc. While having to soberly iron out pragmatic solutions in real time, much of what Jesus did and subsequent apostles was rhetorical. Would you agree that much of the prophets, Jesus and early church was involved in painting stories that invited people to imagine a new future, while knowing that practical realities on the ground needed to be worked through?"

Bingo! I could write more here but I'd just invite you to check out my post for Tuesday.