capitalism

496 Sumner, William Graham (1840–1910)
principle” in article 79 of Pope Pius XI’s encyclical
Quadragesimo Anno:
Just as it is gravely wrong to take from individuals what
they can accomplish by their own initiative and industry
and give it to the community, also it is an injustice and at
the same time a grave evil and disturbance of right order to
assign to a greater and higher association what lesser and
subordinate organizations can do.
The libertarian case for decentralism is predicated on the
principle that if a decision cannot be taken by the individual
(e.g., when rights are claimed to be violated), the lower the
level of decision making, the better. First, the individual is
sovereign and may delegate responsibilities upward, in contrast
to national sovereignty, which places sovereignty in the
hands of government. Second, subsidiarity provides for competition
between jurisdictions, rather than monopolies at
each jurisdictional level. Competition leads to greater efficiency.
Third, fragmented decision-making structures provide
an opportunity to leave an unwelcome jurisdiction in
favor of another, more conducive to one’s values. Fourth,
subsidiarity provides for the existence of a wide variety of
communities, which can be closest to the diverse preferences
of individuals. Fifth, subsidiarity provides for a system of
checks and balances against what would otherwise be the
overwhelming power of any jurisdiction. Finally, it recognizes
that efficiency is not always the most important value
and might be regarded by many as subsidiary to liberty.
The collectivist or republican interpretation emphasizes
the values of effectiveness, efficiency, and the common
good. It draws sustenance from article 80 of Pius XI’s
encyclical that “the State will more freely, powerfully and
effectively do all those things that belong to it alone: directing,
watching, urging, restraining, as occasion requires and
necessity demands.” Although the lower level may be the
best for all three values, it is not always. In these circumstances,
the higher body has the legitimacy to act.
The idea of subsidiarity plays a central role in the debate
over the European Union (EU). That the principle of subsidiarity
should be formally incorporated in the treaties by
which states acceded to the EU is a reflection of the fear
some Europeans felt regarding the overcentralization of
power. The resistance was led by Bavaria, which was
Catholic, localist, and fearful that its powers as a constituent
German state would be usurped by the EU. The notion was
then embraced by Anti-Federalist governments, among them
the United Kingdom. However, collectivists claimed that the
nation-state was unable to carry out a number of its legitimate
functions in an increasingly complex Europe, such as
protection of the environment or security, and that these decisions
should be relocated at the higher pan-European level.
This concern led to the adoption in the Treaty of
European Union of 1992 of this ambiguous statement:
In areas which do not fall within its exclusive competence,
the Community shall take action, in accordance with the
principle of subsidiarity, only if and insofar as the objectives
of the proposed action cannot be sufficiently
achieved by the Member States.
Although the inclusion of this principle was perceived
as a victory for the decentralists, the actual wording favored
a collectivist interpretation. The criteria for the allocation of
powers were to be determined by whether the objectives
were perceived as being achieved (i.e., by their apparent
effectiveness). The statement contained no reference to the
values of liberty or to the strength of subsidiary institutions,
both of which are central to the doctrine.
Whenever the principle of subsidiarity is invoked, it is
vital to note whether it is based on libertarian values—the
individual, liberty, voluntary association, and decentralism—
or on collectivist claims of effectiveness, efficiency, and the
common good.
See also Decentralism; Federalism
Further Readings
NA
Beabout Gregory R. “The Principle of Subsidiarity and Freedom in
the Family, Church, Market, and Government.” Journal of
Markets and Morality 1 no. 2 (October 1998).
Begg, David, ed. Making Sense of Subsidiarity: How Much
Centralization for Europe? London: Center for Economic Policy
Research, 1993.
de Noriega, Antonio Estella. The EU Principle of Subsidiarity and
Its Critique. Oxford: Oxford University Press, 2002.
Pope Pius XI. Quadragesimo anno: On the Reconstitution of the
Social Order. Washington, DC: United States Catholic
Conference, 1931.
SUMNER, WILLIAM GRAHAM
(1840–1910)
William Graham Sumner was an economist, a sociologist,
and a leading defender of individualism and the free market.
He opposed most of the reforms that coalesced in the
progressivist program after 1900, and he also denounced
American imperialism. His Folkways (1907) is one of the
most important works in early American sociology.
Sumner was born in Paterson, New Jersey, the son of an
English-born artisan, from whom he inherited a lifelong
dislike of social causes. After the death of his mother in
1848, his experience in an emotionally starved household
under the care of a penurious stepmother reinforced