Distributism is a third-way economic philosophy formulated by such great thinkers as G. K. Chesterton and Hilaire Belloc in the last 19th and early 20th Century. Under a Distributist government the ownership of the means of production would be spread as widely as possible among the general populace, rather than being centralized under the control of the state as is State socialism or a few large businesses or wealthy private individuals as in capitalism.
"Too much capitalism does not mean too many capitalists, but too few capitalists."G.K.Chesterton
Essentially, Distributism is identified by its distribution of property (not to be confused with redistribution of capital that would be carried out by most socialist plans of governance). While socialism allows no individuals to own productive property (it all being under state, community, or workers' control), and capitalism allows only a few to own it, Distributism seeks to ensure that most people will become owners of productive property.
When comparing the different economic systems it has been said that –
“The Distributive nation contains an extensive range of families of varying wealth, but by far the greater number of owners of the means of production." Hilaire Belloc
This broader distribution does not extend to all property, but only to productive property; that is, that property which produces wealth, namely, the things needed for man to survive. It includes land, tools, businesses etc.
Distributism has often been described as a third way of economic order opposing both socialism and capitalism. It’s short term successes have been in the commitment to the principles of subsidiarity(an organizing principle that matters ought to be handled by the smallest, lowest or least centralized competent authority) and solidarity (the integration, and degree and type of integration, shown by a society or group with people and their neighbors).
Subsidiarity has recently been proclaimed as a fundamental principle of European Union law and as a continuation towards a Distributist policy is best demonstrated in the growth of financially independent local co-operatives and family owned, small businesses.
History
The articulation of Distributist ideas was initially based on 19th and 20th century economic thinking. In the 1920’s 30’s Distributism was treated in numerous essays by Chesterton, Belloc and others in The American Review and of the many books written on the subject their two most famous books addressing the subject were The Servile State and Outline of Sanity.
Economic theory
Private property
Under Distributism most people would be able to earn a living without having to rely on the use of the property of others to do so. Examples of people earning a living in this way would be farmers who own their own land and related machinery, plumbers who own their own tools, software developers who own their own computer, etc. The "co-operative" approach advances beyond this perspective to recognise that such property and equipment may be "co-owned" by local communities larger than a family, e.g. partners in a business, members of a cooperative...
At the core of Distributist philosophy is the belief that people are likely to be more content, to work harder and with greater commitment if they themselves possess the land, businesses or other tools of production with which they work. This in turn will benefit them and their families as workers will be able to provide for themselves and their household.
“Property is merely the art of the democracy. It means that every man should have something that he can shape in his own image.” G.K.Chesterton
System of Associations
The kind of economic order envisaged by the early Distributist thinkers would involve the return to some sort of Trade Associations system. The present existence of labor unions does not constitute a realization of this facet of Distributist economic order, as labour unions are organized along class lines to promote class interests, whereas Trade Associations (previously known as Guilds) are mixed class syndicates composed of both employers and employees cooperating for mutual benefit.
Banks
Distributism favors the elimination of the current private bank system, or in any case, its profit-making basis. This does not necessarily entail nationalization, but would involve government involvement in the overseeing of the system.
Distributism look favorably on credit unions, and its co-operative memberships, as a preferable alternative to banks.
Anti-Trust Legislation
Distributism had one of its greatest influences in anti-trust legislation in America and Europe designed to break up monopolies and excessive concentration of market power in one or only a few companies, trusts, interests, or cartels. Embodying the philosophy explained by Chesterton, above, that too much capitalism means too few capitalists, not too many, America's extensive system of anti-trust legislation seeks to prevent the concentration of market power in a given industry into too-few hands. Requiring that no company gain too great a share of any market is an example of how distributism has found its way into US government policy. The assumption behind this legislation is the idea that having economic activity decentralized among many different industry participants is better for the economy than having one or a few large players in an industry. (Note that anti-trust regulation does take into account cases when only large companies are viable because of the nature of an industry, but favors many participants over few, whenever possible.)
Social theory
The human family
Distributism sees the traditional human family of one male, one female, and their children as the central and primary social unit of human ordering and the principal unit of a functioning distributist society and civilization. This unit is also the basis of a multi-generational extended family, which is embedded in socially as well as genetically inter-related communities, nations, etc., and ultimately in the whole human family past, present and future. The economic system of a society should therefore be focused primarily on the flourishing of the family unit, but not in isolation: at the appropriate level of family context, as is intended in the principle of subsidiarity. Distributism reflects this doctrine most evidently by promoting the family, rather than the individual, as the basic type of owner; that is, distributism seeks to ensure that most families, rather than most individuals, will be owners of productive property. The family is, then, vitally important to the very core of distributist thought.
Subsidiarity
Distributism puts great emphasis on the principle of subsidiarity. This principle holds that no larger unit (whether social, economic, or political) should perform a function which can be performed by a smaller unit. Thus, any activity of production (which distributism holds to be the most important part of any economy) ought to be performed by the smallest possible unit. This helps support distributism's argument that smaller units, families if possible, ought to be in control of the means of production, rather than the large units typical of modern economies.
To prevent large private organizations from thus dominating the body politic, distributism applies this principle of subsidiarity to economic as well as to social and political action.
Society of artisans
Distributism promotes a society of artisans and culture. This is influenced by an emphasis on small business, promotion of local culture, and favoring of small production over capitalistic mass production. A society of artisans promotes the distributist ideal of the unification of capital, ownership, and production rather than what distributism sees as an alienation of people from work. This does not, however, suggest that Distributism favors a technological regression to a pre-industrial revolution lifestyle, but a more local and logical ownership of factories and other industrial centers. Products such as food and clothing would be preferably returned to local producers and artisans instead of being mass produced overseas.
Social security
Distributism favors the elimination of much of the broad social welfare system on the basis that it further alienates man by making him more dependent on the Servile State.
Geopolitical theory
Political order
Distributism does not favor one set of political order over another and can function effectively in societies that are Democratic, Monarchical or Republican.
Political parties
Distributism does not attach itself to one national political party or another in any part of the world. There are several political parties throughout the world which espouse the Distributist philosophy of which the Democratic Labor Party is one.
War
Distributism uses the Just War Theory in determining whether a war should be fought or not. Historical positions of distributist thinkers provides insight into a distributist position on war. Both Belloc and Chesterton opposed British imperialism in general, as well as specifically opposing the Second Boer War, but supported British involvement in World War I.
