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Thursday, September 18, 2025

Conservative holiness movement

From Wikipedia, the free encyclopedia

The conservative holiness movement is a loosely defined group of theologically conservative Christian denominations with the majority being Methodists whose teachings are rooted in the theology of John Wesley, and a minority being Quakers (Friends) that emphasize the doctrine of George Fox, as well as River Brethren who emerged out of the Radical Pietist revival, and Holiness Restorationists in the tradition of Daniel Sidney Warner. Schisms began to occur in the 19th century and this movement became distinct from parent Holiness bodies in the mid-20th century amid disagreements over modesty in dress, entertainment, and other "old holiness standards". Aligned denominations share a belief in Christian perfection (entire sanctification), though they differ on various doctrines, such as the celebration of the sacraments and observance of ordinances, which is related to the denominational tradition of the specific conservative holiness body—Methodist, Quaker, Anabaptist or Restorationist. Many denominations identifying with the conservative holiness movement, though not all, are represented in the Interchurch Holiness Convention; while some denominations have full communion with one another, other bodies choose to be isolationist.

Theological emphases

The nature of sin

The father of Methodism, John Wesley, taught that "Nothing is sin, strictly speaking, but a voluntary transgression of a known law of God. Therefore, every voluntary breach of the law of love is sin; and nothing else, if we speak properly. To strain the matter farther is only to make way for Calvinism." With this narrower understanding of sin, John Wesley believed that it was not only possible but necessary to live without committing sin. Wesley explains this in his comments on 1 John 3:8: "Whosoever abideth in communion with Him—By loving faith, sinneth not—While he so abideth. Whosoever sinneth certainly seeth Him not—The loving eye of his soul is not then fixed upon God; neither doth he then experimentally know Him—Whatever he did in time past." Holiness adherents therefore believe in the possibility and necessity of living a life without committing sin. Leading Holiness Scholar Leslie D. Wilcox concluded that "holiness writers, following the Wesleyan theology, define sin as a willful transgression of a known law of God." The Inter-Church Holiness Convention following John Wesley defines sin as "a willful transgression against a known law of God. This means that there must be knowledge of wrongdoing, or of refusing to obey God, before sin is committed. Mistakes are not sin." H. E. Schmul, the founder of the Inter-Church Holiness Convention actually explains how some of our "theological wunderkind" including S. D. Herron, and Leslie Wilcox came up with this definition:

An act of sin is any uncoerced word or thought or deed that violates the will of God, performed by an intelligent responsible person within the age of accountability done in defiance of God or not prompted by love to God or desire to please him. Sin, then, is a responsible act.

With this definition in mind, Christian denominations aligned with the Conservative Holiness Movement believe that "The lowest type of Christian sinneth not and is not condemned. The minimum of salvation is salvation from sinning." Following the lead of John Wesley, denominations identifying as being a part of the Conservative Holiness Movement hold that "calling every defect a sin, is not well pleasing to God." "Mistakes, and whatever infirmities necessarily flow from the corruptible state of the body, are no way contrary to love; nor therefore, in the Scripture sense, sin." This definition of sin is vitally important because "If this definition is compromised, victorious Christian living becomes meaningless, and entire sanctification an impossibility." Historian Charles Jones explains that "Believing that sin was conscious disobedience to a known law of God, holiness believers were convinced that the true Christian, having repented of every known act of sin, did not and could not willfully sin again and remain a Christian."

Entire Sanctification

The word Holiness refers specifically to the belief in entire sanctification as a definite, second work of grace, in which original sin is cleansed, the heart is made perfect in love, and the believer is empowered to serve God. The Conservative Holiness movement is known for its emphasis on the possibility, necessity, and instantaneous nature of Entire Sanctification, also known as 'Christian perfection' in Methodism and 'Perfectionism' in Quakerism, as well as the second work of grace. This doctrine is shown in the founding documents of the Holiness Movement, the 1885 Declaration of Principles which explained:

"Entire Sanctification... is that great work wrought subsequent to regeneration, by the Holy Ghost, upon the sole condition of faith...such faith being preceded by an act of solemn and complete consecration. This work has these distinct elements:

  1. The entire extinction of the carnal mind, the total eradication of the birth principle of sin;
  2. the communication of perfect love to the soul...
  3. the abiding indwelling of the Holy Ghost."

The Book of Discipline of the Allegheny Wesleyan Methodist Connection explicates the doctrine of sanctification:

Entire sanctification is that work of the Holy Spirit by which the child of God is cleansed from all inbred sin through faith in Jesus Christ. It is subsequent to regeneration, and is wrought when the believer presents himself a living sacrifice, holy and acceptable unto God, and is thus enabled through grace to love God with all the heart and to walk in His holy commandments blameless.
Gen. 17:1; Deut. 30:6; Ps. 130:8; Ezek. 36:25–29; Matt. 5:48; Luke 1:74, 75; John 17:2–23; Rom. 8:3, 4; 11:26; 1 Cor. 6:11; 14:20; Eph. 4:13, 24; 5:25–27; Phil. 2:5, 7; Col. 4:12; 1 Thes. 3:10; 5:23; 2 Thes. 2:13; 2 Tim. 3:17; Tit. 2:12, 14; Heb. 9:13, 14; 10:14, 18–22; Jas. 1:27; 4:8; 1 Pet. 1:10; 2 Pet. 1:4; 1 John 1:7, 9; 3:8, 9; 4:17, 18; Jude 24.

John Wesley, who articulated the doctrine, taught that those who had been entirely sanctified would be perfect in love, engaging in works of piety and works of mercy—both of which are characteristic of a believer's growing in grace.

Plain lifestyle

Members of the Conservative Holiness movement generally hold that the lifestyle restrictions found in the New Testament are still binding today and must be followed. This generally shows up in areas of entertainment, keeping the Sunday Sabbath, and modest clothing.

This is taught in the doctrine of outward holiness (for Methodist denominations in the conservative holiness movement), the testimony of simplicity (for Quaker yearly meetings in the conservative holiness movement), the doctrine of nonconformity to the world (for River Brethren denominations in the conservative holiness movement), and the principle of separation from the world (for Restorationist denominations in the conservative holiness movement).

Though there is variety in application of these principles, there is general consensus that they must be followed.

History

The tabernacle of Flatwoods Reformed Free Methodist Campground, which served as the location of the annual camp meeting of the Reformed Free Methodist Church, one of the earliest denominations of the conservative holiness movement
Grace Wesleyan Methodist Church is a parish church of the Allegheny Wesleyan Methodist Connection and is located in Akron, Ohio.

The Holiness movement was largely contained within mainline Methodism during the 19th century, with some members of the holiness movement continuing to remain in the mainline Methodist Churches to this day (the "stay-inners"). Wesleyan-Holiness doctrine influenced adherents of other denominations as well. By the 1880s a persistent wave of "come-outism" was beginning to gather steam. The come-outers were concerned that mainline Methodism had begun to water-down Holiness teachings and even shun its more outspoken proponents.

The majority of the denominations which now comprise the Conservative holiness movement were once among a number of Holiness movement groups which had a history of coming out or having left mainline Methodism to teach and practice Holiness doctrine uninhibited. The denominations that left mainline Methodism and the mainstream holiness movement to form the conservative holiness movement did so because they saw a relaxation of the prohibitions on certain behaviours that they considered to be "worldly". The list of prohibitions varies from denomination to denomination, but the prohibitions include the wearing of gold (which includes wedding rings), television in the home (an extension to previous bans on theater patronage), women not cutting their hair (in accordance with historic interpretations of I Corinthians 11), the prohibition of men wearing shorts, the prohibition of women wearing short skirts, and the prohibition of patronizing sporting events on the Sunday Sabbath. Members of denominations in the conservative holiness movement align themselves with the temperance movement and practice teetotalism, thus abstaining from alcohol and other drugs. Each major denomination enforces some of the disciplines listed above, so there is some variation amongst the groups. It is these disciplines that characterize the Churches of the conservative holiness movement.

The Church of God (Holiness) was created as a result of a schism with the Methodist Episcopal Church in 1883 due to differences in interpretation of the Methodist doctrine of Christian perfection, as well as standards of dress. In the Restorationist tradition, the Church of God (Guthrie, Oklahoma) left the Church of God (Anderson, Indiana) in the 1910s due to issues concerning "worldly conformity in dress". The body that is now the Bible Holiness Church originated in 1896 as a schism with the Wesleyan Methodist Church and originally had a Holiness Pentecostal orientation; the Bible Holiness Church, however, formally rejected the possibility of a third work of grace in 1948. The Central Yearly Meeting of Friends is a Quaker Yearly Meeting emphasizing George Fox's doctrine of perfectionism and was founded in 1924. The Reformed Free Methodist Church left the Free Methodist Church in 1932; the Immanuel Missionary Church and the Emmanuel Association of Churches left the Pilgrim Holiness Church in 1936 and 1941, respectively—these schisms were due to what the departing bodies perceived as a laxity in traditional doctrine and standards. Samuel West spearheaded the formation of the Reformed Free Methodist Church, which held its annual Flatwoods Camp Meeting in Perryopolis, Pennsylvania; the RFMC emphasized the traditional Methodist doctrine of plain dress. The Emmanuel Association, belonging to the subgroup of "Holiness Pacifists" in the conservative holiness movement, is known for its opposition to warfare and its holiness standards are codified in a manual known as "Principles of Holy Living"; the Immanuel Missionary Church, the First Bible Holiness Church and the Church of God likewise teach nonresistance and are conscientious objectors, thus falling under this category too.

The Holiness movement, for the most part, huddled together tightly from its early history to later when Pentecostalism was competing for the hearts and minds of its adherents. During the Fundamentalist–Modernist Controversy of the 1920s and onward, most Holiness groups found themselves at home in the Fundamentalist camp or allied with them. While many Holiness groups made the jump toward the Evangelical movement in the late 1930s, there were groups that felt their Holiness peers were drifting away from Biblical inerrancy and separation from the world.

By the post-World War II era, a more relaxed societal attitude toward morality and theological differences continued to accompany many mainstream Holiness conferences, districts and local churches reinforcing longstanding prohibitions on behavior in their governing documents. Not at home with other Fundamentalist alliances (which had a more Calvinistic and non-Holiness tone to them), an Interdenominational Holiness Convention (IHC) was called at a Wesleyan Methodist campground in Fairmont, Indiana, in 1951, though it did not include all denominations that are characterized as belonging to the conservative holiness movement, especially those of a more isolationist nature. Entire sanctification (in Methodism) or Perfectionism (in Quakerism), as well as traditional holiness strictures on dress and entertainment, held a prominent place in convention sermons. The swelling divorce rate, the relentless spread of Communism (with its promotion of state atheism), and the effects of television on society were also prominent themes. Participants resisted a call to form a new denomination, but became an ally toward a series of prior and future institutional secessions.

In 1955 the Bible Missionary Church (BMC) was formed in Idaho and soon grew nationwide as local congregations left the Church of the Nazarene over "worldliness" issues.

In 1963, another schism in the Free Methodist Church led to the formation of the Evangelical Wesleyan Church (EWC).

In 1963, the Pilgrim Holiness Church of New York seceded from the Pilgrim Holiness Church to become an independent organization (in 1966–68, the Wesleyan Methodist Church and the Pilgrim Holiness Church proposed a merger to form the Wesleyan Church, which today has more in common with the Christian Holiness Partnership-affiliated Holiness churches such as the Nazarene Church).

The Brethren in Christ Church, a River Brethren denomination that emerged out of Radical Pietism, entered into a schism in 1963 resulting in the formation of the Calvary Holiness Church, a conservative holiness denomination which continues to emphasize traditional River Brethren beliefs, such as the wearing of a headcovering by women, plain dress, temperance, footwashing, and pacifism.

In 1966, the Church of the Bible Covenant was created as a result of a schism with the Church of the Nazarene under the leadership of Remiss Rehfeldt and Marvin Powers; in August 1988, the Church of the Bible Covenant largely became the International Fellowship of Bible Churches, though at that time, a minority of Covenanters joined the International Conservative Holiness Association.

In the wake of the Wesleyan Church merger, the Bible Methodist Connection of Churches, the Allegheny Wesleyan Methodist Connection of Churches, the Bible Methodist Connection of Tennessee (Tennessee Bible Methodists), the Bible Methodist Connection of Alabama (Alabama Bible Methodists), Bible Methodist Connection Mid-America (formed in 2018), and Pilgrim Holiness Church (Midwest Conference), were organized.

In 1973, the Fellowship of Independent Methodist Churches was formed in the British Isles after a number of congregations left the Methodist Church in Ireland and the Free Methodist Church due to their opposition to what they perceived was ecumenism with branches of Christianity that espoused Modernism.

God's Missionary Church was formed by individuals affected by tent revival services.

Social change constantly confronts Conservative Holiness Christians. The Church of God (Holiness) in 1999 removed a ban on owning televisions, urging charity over “the ownership or use of television, videos, movies, the internet, and such like.” Other denominations in the conservative holiness movement, such as the Evangelical Wesleyan Church, continue to forbid the watching of television, which they hold to be an occasion of sin. Issues over doctrine and standards have resulted in schisms in denominations identifying with the conservative holiness movement too; for example, in 1979, a schism in the body now called the Bible Holiness Church resulted in the formation of the Wesleyan Holiness Alliance. The Wesleyan Holiness Association of Churches, the Wesleyan Bible Holiness Church, the United Missionary Church the Pilgrim Nazarene Church, and Churches of Wesleyan Brethren originated as a result of schisms with the Bible Missionary Church, with the former being established under the leadership of Glen Griffith in 1959 to uphold the discipline of prohibiting remarriage after divorce and the latter departing in 2003 "over personal commercial use of the Internet." However, mergers have occurred as well; for example, in August 2019 the Pilgrim Nazarene Church (PNC) voted to join the Bible Methodist Connection. While not all the churches took part in the merger, it is estimated that approximately two-thirds of the PNC churches joined the Bible Methodist Connection.

Denominations

A service of worship at the tabernacle of a camp meeting of the Allegheny Wesleyan Methodist Connection, held at Wesleyan Methodist Camp in Stoneboro, Pennsylvania

Denominations and associations of churches aligned with the conservative holiness movement include the following though independent churches aligned with the common themes of the conservative holiness movement exist too:

Diversity in belief and practice

Christian denominations aligned with the conservative holiness movement all share a belief in the doctrine of Christian perfection (entire sanctification); apart from this, denominations identified with the conservative holiness movement differ on several issues, given that there are Methodist, Quaker, Anabaptist and Restorationist churches that comprise the conservative holiness movement and these denominations have unique doctrines. Methodist denominations that are a part of the conservative holiness movement, such as the Allegheny Wesleyan Methodist Connection or Evangelical Wesleyan Church, affirm the celebration of the sacraments, chiefly Holy Baptism and Holy Communion; on the other hand, denominations of the Quaker tradition, such as the Central Yearly Meeting of Friends, are entirely non-sacramental. Anabaptist denominations aligned with the conservative holiness movement, such as the Calvary Holiness Church—a River Brethren group—teach the observance of ordinances, such as baptism by trine immersion, communion, headcovering and footwashing. While the Methodist denominations of the conservative holiness movement hold to church membership (such as the Evangelical Methodist Church Conference), the concept of membership rolls is rejected in conservative holiness denominations of a Restorationist background, such as the Church of God (Guthrie, Oklahoma).

Educational institutions

The entrance to the Evangelical Wesleyan Bible Institute (EWBI) in Cooperstown

There are a number of elementary, middle and high schools affiliated with various denominations of the conservative holiness movement. Colleges affiliated with the conservative holiness movement include:

Missions

A number of mission endeavors exist within the conservative holiness movement with active mission fields in the Philippines, South Africa, Ukraine, Haiti, Peru, Mexico, Asia, Eastern Europe, India, Myanmar, and South Korea. Listed below are a few of the mission organizations affiliated with the conservative holiness movement. Most of the denominations listed above also maintain their own missions boards and departments for both Home and Foreign Missions.

  • Bible Methodist Missions
  • Evangelical Bible Mission
  • Evangelistic Faith Missions
  • Hope International Missions
  • Worldwide Faith Missions
  • Pilgrim Missions
  • Society of Indian Missions
  • ICHA Ministries

Publications

Publications, publishing companies, periodicals and discipleship tools affiliated with the conservative holiness movement include:

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Anti-consumerism

From Wikipedia, the free encyclopedia
https://en.wikipedia.org/wiki/Anti-consumerism
Photograph of Times Square, showing the prevalence of advertisements

Anti-consumerism is a sociopolitical ideology. It has been described as "intentionally and meaningfully excluding or cutting goods from one's consumption routine or reusing once-acquired goods with the goal of avoiding consumption". The ideology is opposed to consumerism, being a social and economic order in which the aspirations of many individuals include the acquisition of goods and services beyond those necessary for survival or traditional displays of status.

Anti-consumerism is concerned with the actions of individuals, as well as businesses where they act in pursuit of financial and economic goals at the expense of the perceived public good. Commonly, anti-consumerism is connected with concern for environmental protection, anti-globalization, and animal-rights. Post-consumerism, the prioritization of well-being over material prosperity, is a related ideology.

Background

Anti-consumerism originated from criticism of consumption, arguably starting with Thorstein Veblen, who, in the book The Theory of the Leisure Class: An Economic Study of Institutions (1899), suggested that consumerism dates from the cradle of civilization. The term consumerism also denotes economic policies associated with Keynesian economics, and the belief that the free choice of consumers should dictate the economic structure of a society (cf. producerism). Modern political anti-consumerism developed in the 2000s.

Anti-consumerism can be seen as an extension of postmodern society, supporting a "decentralized culture", rejecting a hegemonic cultural imperialism of globalisation and consumption, and responding to negative impacts of consumption on the environment. Further, it has been observed that: "While almost all contemporary critics [of consumerism] and activists talk of the need for an environmentally sustainable mode of living, many also focus intently on how the consumerism driving overconsumption undermines our sense of well being and happiness; contributes to a culture of overwork, haste and instantaneous gratification; underscores a bland cultural homogenization of life; and fragments communities and social relationships."

Predictors of anti-consumerist attitudes and behaviors at an individual level include concerns about environmental pollution or disruption of ecological balance, a desire to live a simple life, and a belief that a search for happiness should come from internal factors.

Development and expression

Significant works

An important contribution to the critique of consumerism has been made by French philosopher Bernard Stiegler, arguing modern capitalism is governed by consumption rather than production, and the advertising techniques used to create consumer behaviour amount to the destruction of psychic and collective individuation. The diversion of libidinal energy toward the consumption of consumer products, he argues, results in an addictive cycle of consumption, leading to hyper-consumption, the exhaustion of desire, and the reign of symbolic misery.

Examples of anti-consumerist works include the book No Logo (2000) by Naomi Klein, and documentary films such as The Corporation (2003), by Mark Achbar and Jennifer Abbott, and Surplus: Terrorized into Being Consumers (2003), by Erik Gandini.

Religion

Anti-consumerist beliefs are in some cases connected with religious beliefs. A religious criticism asserts that materialist consumerism interferes with the connection between the individual and God, and so is an inherently immoral style of life; thus the German historian Oswald Spengler (1880–1936) said that, "Life in America is exclusively economic in structure, and lacks depth." From the Roman Catholic perspective, Thomas Aquinas said that, "Greed is a sin against God, just as all mortal sins, in as much as man condemns things eternal for the sake of temporal things"; in that vein, Francis of Assisi, Ammon Hennacy, and Mohandas Gandhi said that spiritual inspiration guided them towards simple living.

Protest

A Portuguese anti-consumerist stencil graffiti saying "Consuming consumes you"

Anti-consumerist messages are often raised in protests, including in the broader context of environmentalism and anti-corporate activism. A notable anti-consumerist protest community is Reverend Billy and the Church of Stop Shopping.

In the context of protest art, Banksy, an influential British graffitist, painter, activist and filmmaker, has created satirical and provocative works about the consumerist society. Examples include "Napalm", an attack on Walt Disney Pictures and McDonald's, and "Show Me the Monet", among many others. In his 2004 book Cut It Out, Banksy writes, "You owe the companies nothing. Less than nothing, you especially don't owe them any courtesy. They owe you. They have re-arranged the world to put themselves in front of you. They never asked for your permission, don't even start asking for theirs."

Individual and community responses

Practicing anti-consumerism can mean voluntarily simplifying and minimizing one's lifestyle; this can be in efforts to exist more sustainably in a consumer culture. These lifestyle changes, which include choosing paper bags over plastic bags when shopping, are also in line with anti-corporate activism and green consumerism—both large contributors to the ethical market. Degrowth, commoning and other movements aim to collectively address sustainability issues through practices and approaches that radically reduce consumption and replace consumer culture with new ethics and values.

Modern Development

The modern development of anti-consumerism is closely tied to the global environmental crisis, particularly the urgency surrounding climate change. As the world faces environmental degradation and the depletion of natural resources, anti-consumerist movements have gained momentum. These movements advocate for reducing overconsumption, promoting conscious consumption, and addressing waste, especially the growing plastic problem.

A key argument for these movements is the need for both personal and systemic changes. Many activists, such as George Monbiot, emphasize that overconsumption is a root cause of global crises like climate change, biodiversity loss, and environmental degradation. Efforts like upcycling and reducing plastic waste are part of broader campaigns aimed at creating sustainable consumption patterns. Moreover, critics of unchecked consumerism argue that solving these issues requires more than individual action; it also necessitates economic restructuring to lessen dependence on constant consumer spending. One crucial aspect of this movement is the call for "voluntary simplicity," which advocates for reducing material needs to reduce environmental impact. This is reflected in policies from international bodies like the United Nations, which has highlighted the importance of sustainable consumption in its development goals. By embracing a mindset of reducing consumption, both individuals and institutions can significantly lower emissions and resource use, addressing environmental challenges more effectively than through green technologies alone.

Advertising

Anti-consumerists believe advertising plays a huge role in human life by informing values and assumptions of the cultural system, deeming what is acceptable, and determining social standards. They declare that ads create a hyper-real world where commodities appear as the key to securing happiness. Anti-consumerists cite studies that find that individuals believe their quality of life improves in relation to social values that lie outside the capability of the marketplace. Therefore, advertising attempts to equate the social with the material by utilizing images and slogans to link commodities with the real sources of human happiness, such as meaningful relationships. Ads are then a detriment to society because they tell consumers that accumulating more and more possessions will bring them closer to self-actualization, or the concept of a complete and secure being. "The underlying message is that owning these products will enhance our image and ensure our popularity with others." And while advertising promises that a product will make the consumer happy, advertising simultaneously depends upon the consumer never being truly happy, as then the consumer would no longer feel the need to consume needless products.

Anti-consumerists claim that in a consumerist society, advertisement images disempower and objectify the consumer. By stressing individual power, choice and desire, advertising falsely implies the control lies with the consumer. Because anti-consumerists believe commodities supply only short-term gratification, they detract from a sustainably happy society. Further, advertisers have resorted to new techniques of capturing attention, such as the increased speed of ads and product placements. In this way, commercials infiltrate the consumerist society and become an inextricable part of the culture. In a review of research on materialistic values and goals, Tim Kasser (2016) argues that the pursuit of material possessions can lead to short-term gratification at the expense of long-term well-being. Anti-consumerists condemn advertising because it constructs a simulated world that offers fantastical escapism to consumers, rather than reflecting actual reality. They further argue that ads depict the interests and lifestyles of the elite as natural; cultivating a deep sense of inadequacy among viewers. They denounce the use of beautiful models because they glamorize the commodity beyond the reach of the average individual.

In an opinion segment of New Scientist magazine published in August 2009, reporter Andy Coghlan cited William Rees of the University of British Columbia and epidemiologist Warren Hern of the University of Colorado at Boulder, saying that human beings, despite considering themselves civilized thinkers, are "subconsciously still driven by an impulse for survival, domination and expansion... an impulse which now finds expression in the idea that inexorable economic growth is the answer to everything, and, given time, will redress all the world's existing inequalities." He argues that consumerism is making these tendencies worse by encouraging consumption without limit.

Supporters of anti-consumerism often accuse advertising of attention theft, i.e. they believe it unjustifiably invades public areas, thereby imposing itself on people who consider its presence unwanted. American graphic designer Sean Tejaratchi expresses his resentment of this "ad creep" in a 1999 issue of his clip art zine Crap Hound: "Advertising increasingly invades my environment instead of letting me come to it on my own terms when I need it... The most powerful and well-funded methods of mass communication in history have been used to create a one-way, unending flow of shit into my life... In the twenty-eight years since I was born, I've been subjected to a stunning amount of advertising, and I don't recall anyone ever asking me if I minded."

Anti-consumerism has paved the way for a "subvertising" (also known as culture jamming) movement, which uses artistic and political strategies to protest modern forms of publicity; acts of "subvertising" include "removing advertising from public spaces, tweeting to inform the city's mayor of illicit advertising practices, recuperating posters from bus stop advertising panels, producing critical advertising guides, documentaries or organising public workshops."

In Economic Theory

Austrian economics

See also: Austrian school of economics, Austrian business cycle theory § Government policy error, and Subjective theory of value
Austrian business cycle theory, formulated by Friedrich Hayek, before and during the Great Depression

As a classical defence pertinent in this context, Austrian economic advocates focus on the entrepreneur, promoting a productive lifestyle rather than a materialistic one wherein the individual is defined by things and not their self. Certain economists have further rendered Keynesian notions of propagating increased consumption - in order to mitigate recessive impacts when the populace refuse to spend - as obsolete, since numerous founding principles presume that minor adjustments are implemented via expansions and contractions, at least monetarily, are the reason behind business cycles, given the distinct outcome from resulting interest rate changes on distinguished points within the structure of production, a theory Woods would endorse.

Furthermore, this is emphasised by the trend that a nation is unable to obtain wealth via consumption, which inevitably translates to entire resource absorption; Production is therefore what grants consumption as a possibility to begin with, given that a producer would not be working towards revenue, if not one's consumptive desires in their own expenditure discretion. Moreover, the Austrian School dictates that the determinative estimate of goods and services motivate the demand for these commodities in order for their prices to be influenced by consumers.

Others have often hinted towards rivalry amongst consumers, in that all parties, producer and consumer alike, behave in an entrepreneurial manner; The latter's market process interpretation is assumed to have provided the entrepreneurial role only to the producer. This is further emphasised upon when the consumer's absence is highlighted, whereby the sparse knowledge available, likewise with the producer's ability to calculate in gathering information as opposed to the government doing so - a direct laissez-faire correlation - the consumer becomes indecisive, and thus astray. This was subject to heavy debate during the Interwar era, in what was known as the socialist-calculation debate. The status of the consumer has rarely been of any discussion in Austrian economics since. However, it has drawn attention to some limited degree in relation to production, with practitioners in the field having abused consumer rationality, as well as recognising their abstinence from market elucidation.

Neoclassical synthesis

See also: Neoclassical synthesis and New neoclassical synthesis

Despite its revised instances of state interventionism, adherence to the consumer theory remained abundant via the supply and demand model of Keynesianism. Paul Samuelson stated that neoclassical synthesis should have been utilised towards the extent of fiscal and monetary interventions in order for economic stabilisation and maintaining full employment, albeit emphasising that the market economy cannot solely ensure full employment. The IS-LM-Philips unit of analysis model correlated the IS-LM model with the Phillips curve, which placed sums on quantities such as the marginal propensity to consume, invest, if not the volatility of money demand towards interest rates, in order for macroeconomic predictions to be forecast or the stimulations of economic policy consolidations. These are often in similar bearing with the main fundamentals of NNE, a revised edition of Neoclassical synthesis.

Developments within consumption theory of the movement were published in specialized journals. Most of the expenditures area was addressed by consumer choice adaptations within the markets field against Keynesianism. Incentives and prices were represented in playing a prevalent role that determined decision making, directly pointing against individual demand, discerning how prices as regards to costs and income affect demand quantity

Labour markets are often focused upon two features, opportunity cost of leisure as well as wage rate; When wage rate increases, it hints that labourers are willing to work more and it concludes with them entering the labour force. Irrespective of the presumed incentivisation, the contrary is entirely possible, whereby workers work less and consume further leisure. Because of these interrelations, it is reasonable to determine that wage rates and labour supply both relate positively, albeit negative for opportunity of leisure. Nevertheless, the theory argues for gradual wage increase over time within a competitive labour market. This is viewed by some as an early feature of new classical theory, since it has some relation to the real business-cycle theory in technological innovation, whereby implementing automation is often similar with becoming reliant over technology for economic output.

Criticism

Critics of anti-consumerism have accused anti-consumerists of opposing modernity or utilitarianism, arguing that it can lead to elitism, primarily among libertarian viewpoints, who argue that every person should decide their level of consumption independent of outside influence. Right-wing critics see anti-consumerism as rooted in socialism. Consumerism tends to be associated with capitalism, so modern socialists tend to be anti-consumerist, with anti-consumerism described as having become "left wing common sense". In 1999, the libertarian magazine Reason attacked anti-consumerism, claiming Marxist academics were repackaging themselves as anti-consumerists. James B. Twitchell, a professor at the University of Florida and popular writer, referred to anti-consumerist arguments as "Marxism Lite".

There have also been socialist critics of anti-consumerism who see it as a form of anti-modern "reactionary socialism", and state that anti-consumerism has also been adopted by ultra-conservatives and fascists. Anti-consumerist stances, which strictly focus on criticising the forceful expansion of unnecessary needs in place of genuine desires under capitalism, have been criticised by Marxists as being ignorant of the historical and social nature of needs and a deviation from Marx's own point of view concerning consumerism. Rather than being incompatible with left-wing political ideologies, it has been argued that "it is not the working class that needs to be liberated from consumerism, or in other words their own material desires, but that consumerism should be liberated from capitalism".

In her book "Authenticity Guaranteed", Sally Robinson provides a feminist critique of anti-consumerism. She articulates that the stances of anti-consumerists reflect a hierarchical gendered framework which concerns preservation of masculinity in its purest form from the feminine social mechanisms of consumerism that curtails masculine agency and authenticity. Citations of films such as Fight Club as an often anti-consumerist exemplary, according to her, presents consumerism as a crisis of masculinity in general. An anti-consumerist critique relies on the assumption that consumer culture is inauthentic and de-individualizing; therefore, it must also identify and delineate what constitutes the authentic and the individual.

In studies about whether anti-consumerism has been effective, it has been proven that for teenagers and young adults, the culture of media and their relationship often makes it difficult for them to reject consumerism. Science Daily has a report on this, and states that it is either because they have little independence to develop their own agenda, or because they are dependent on their own consumer activities (e.g. bars, clubs and shops) to retain some independent income.

In Fight Club, the protagonist finds himself participating in terroristic acts against corporate society and consumer culture. The film is widely regarded as the most widely recognizable piece of anti-consumerist media. The success of the book and the film comes despite the author Chuck Palahniuk publicly stating that the story is both anticonsumerist and anticommericialist.

In the novel American Psycho by Bret Easton Ellis, the protagonist Patrick Bateman criticizes the consumerist society of America in the 1980s of which he is a personification. Later on he goes on a killing spree without any consequences, suggesting that the people around him are so self-absorbed and focused on consuming that they either do not see or do not care about his acts.

In the Pixar movie, WALL-E, Earth is depicted in an apocalyptic state caused by the negative effects of human consumerism.

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Taiwan Miracle

From Wikipedia, the free encyclopedia

The Taiwan Miracle (Chinese: 臺灣奇蹟; pinyin: Táiwān Qíjī; Pe̍h-ōe-jī: Tâi-oân Kî-chek) or Taiwan Economic Miracle refers to Taiwan's rapid economic development to a developed, high-income country during the latter half of the twentieth century.

As it developed alongside South Korea, Singapore, and Hong Kong, Taiwan became known as one of the "Four Asian Tigers". Taiwan was the first developing country to adopt an export-oriented trade strategy after World War II.

Background

GDP per capita development in Taiwan

Premier Chen Cheng has been widely regarded as a leading architect of the Taiwan Miracle. In He promoted and relied upon a cohort of technocrats, including Yin Chung-jung, Yen Chia-kan, Yang Chi-tseng, and Li Kwoh-ting , while remaining the ultimate decision-maker in economic policy. Yin was often considered the first chief technocrat, succeeded after his death by Yen, and later by Li and Sun Yun-suan.

After a period of hyperinflation in the late 1940s when the Kuomintang-led government of the Republic of China military regime of Chen Yi overprinted the Taiwanese dollar against the previous Taiwanese yen in the Japanese era, the government introduced a new and stable currency to address hyperinflation. Along with the $4 billion in financial aid and soft credit provided by the US (as well as the indirect economic stimulus of US food and military aid) over the 1945–1965 period, and a more direct infusion of 41 Billion US dollars in free development aid up until year 1975 (Now worth $242 Billion US Dollars in 2024 values as adjusted for inflation). Taiwan thus had the necessary capital to restart its economy. Further, the Kuomintang government instituted many laws and land reforms that it had never effectively enacted on mainland China.

A land reform law, inspired by the same one that the Americans were enacting in occupied Japan, removed the landlord class (similar to what happened in Japan), and created a higher number of peasants who, with the help of the state, increased the agricultural output dramatically. This marked the beginning of capital accumulation. It inverted capital creation, and liberated the agricultural workforce to work in the urban sectors. However, the government imposed on the peasants an unequal exchange with the industrial economy, with credit and fertilizer controls and a non monetary exchange to trade agrarian products (machinery) for rice. With the control of the banks (at the time, being the property of the government), and import licenses, the state oriented the Taiwanese economy to import substitution industrialization, creating initial capitalism in a fully protected market.

It also, with the help of USAID, created a massive industrial infrastructure, communications, and developed the educational system. Several government bodies were created and four-year plans were also enacted. Between 1952 and 1982, economic growth was on average 8.7%, and between 1983 and 1986 at 6.9%. The gross national product grew by 360% between 1965 and 1986. The percentage of global exports was over 2% in 1986, over other recently industrialized countries, and the global industrial production output grew a further 680% between 1965 and 1986. The social gap between the rich and the poor fell (Gini: 0.558 in 1953, 0.303 in 1980), even lower than some Western European countries, but it grew a little in the 80's. Health care, education, and quality of life also improved.[14] Observers have noted that the flexibility of Taiwan's industrial structure enabled adaptation to global shifts.

The economist S. C. Tsiang played an influential role in shifting towards an export-oriented trade strategy. In 1954, he called for Taiwan to deal with its chronic shortage of foreign exchange by increasing exports rather than reduce imports. In 1958, the policymaker K. Y. Yin pushed for the adoption of Tsiang's ideas.

In 1959, a 19-point program of Economic and Financial Reform, liberalized market controls, stimulated exports and designed a strategy to attract foreign companies and foreign capital. An exports processing area was created in Kaohsiung and in 1964, General Instruments pioneered in externalizing electronic assembly in Taiwan. Japanese companies moved in, reaping the benefits of low salaries, the lack of environmental laws and controls, a well-educated and capable workforce, and the support of the government. But the nucleus of the industrial structure was national, and it was composed by a large number of small and medium-sized enterprises, created within families with the family savings, and savings cooperatives nets called hui (Chinese: 會; pinyin: Huì; Pe̍h-ōe-jī: Hōe; Pha̍k-fa-sṳ: Fi). They had the support of the government in the form of subsidies and credits loaned by the banks.

Most of these societies appeared for the first time in rural zones near metropolitan areas, where families shared work (in the parcels they owned and in the industrial workshops at the same time). For instance, in 1989 in Changhua, small enterprises produced almost 50% of the world's umbrellas. The State attracted foreign companies in order to obtain more capital and to get access to foreign markets, but the big foreign companies got contracts with this huge net of small sized, familiar and national companies, which were a very important percentage of the industrial output.

Foreign investment never represented an important component in the Taiwanese economy, with the notable exception of the electronic market. For instance, in 1981, direct foreign investment was a mere 2% of the GNP, foreign companies employed 4.8% of the total workforce, their production was 13.9% of the total production and their exports were 25.6% of nationwide exports. Access to the global markets was facilitated by the Japanese companies and by the American importers, who wanted a direct relationship with the Taiwanese brands. No big multinational corporations were created (like in Singapore), or huge national conglomerates (like South Korean chaebols), but some industrial groups, with the support of the government, grew, and became in the 90's huge companies totally internationalized. Most of the development was thanks to the flexibility of family businesses which produced for foreign traders established in Taiwan and for international trade nets with the help of intermediaries.

After retreating to Taiwan, Chiang learned from his mistakes and failures in the mainland and blamed them for failing to pursue Sun Yat-sen's ideals of Tridemism and welfarism. Chiang's land reform more than doubled the land ownership of Taiwanese farmers. It removed the rent burdens on them, with former land owners using the government compensation to become the new capitalist class. He promoted a mixed economy of state and private ownership with economic planning. Chiang also promoted a 9-years compulsory education and the importance of science in Taiwanese education and values. These measures generated great success with consistent and strong growth and the stabilization of inflation.

Era of globalization

In the 1970s, protectionism was on the rise, and the United Nations switched recognition from the government of the Republic of China to the government of the People's Republic of China as the sole legitimate representative of mainland China. It was expelled by General Assembly Resolution 2758 and replaced in all UN organs with the PRC. The Kuomintang began a process of enhancement and modernization of the industry, mainly in high technology (such as microelectronics, personal computers and peripherals). One of the biggest and most successful Technology Parks was built in Hsinchu, near Taipei.

Many Taiwanese brands became important suppliers of worldwide known firms such as DEC or IBM, while others established branches in Silicon Valley and other places inside the United States and became known. The government also recommended the textile and clothing industries to enhance the quality and value of their products to avoid restrictive import quotas, usually measured in volume. The decade also saw the beginnings of a genuinely independent union movement after decades of repression. Key developments in 1977 strengthened Taiwan’s emerging independent labor movement.

One was the formation of an independent union at the Far East Textile Company after a two-year effort discredited the former management-controlled union. This was the first union that existed independently of the Kuomintang in Taiwan's post-war history (although the Kuomintang retained a minority membership on its committee). Rather than prevailing upon the state to use martial law to smash the union, the management adopted the more cautious approach of buying workers' votes at election times. However, such attempts repeatedly failed and, by 1986, all of the elected leaders were genuine unionists. Another, and, historically, the most important, was the now called "Zhongli incident".

By the 1980s, Taiwan had developed a mature and diversified economy, with a strong presence in international markets and substantial foreign exchange reserves. Its companies were able to go abroad, internationalize their production, investing massively in Asia (mainly in People's Republic of China) and in other Organisation for Economic Co-operation and Development countries, mainly in the United States.

Higher salaries and better organized trade unions in Taiwan, together with the reduction of the Taiwanese export quotas meant that the bigger Taiwanese companies moved their production to China and Southeast Asia. The civil society in a now developed country, wanted democracy, and the rejection of the KMT dictatorship grew larger. A major step occurred when Lee Teng-hui, a native from Taiwan, became President, and the KMT started a new path searching for democratic legitimacy.

Two aspects must be remembered: the KMT was on the center of the structure and controlled the process, and that the structure was a net made of relations between the enterprises, between the enterprises and the State, between the enterprises and the global market thanks to trade companies and the international economic exchanges. Native Taiwanese were largely excluded from the mainlanders dominated government, so many went into the business world.

In 1952, Taiwan had a per capita gross national product (GNP) of $170, placing the island's economy squarely between Zaire and Congo. But, by 2018 Taiwan's per capita GNP, adjusted for purchasing power parity (PPP), had soared to $53,074, around or above some developed West European economies and Japan.

According to economist Paul Krugman, the rapid growth was made possible by increases in capital and labor but not an increase in efficiency. In other words, the savings rate increased and work hours were lengthened, and many more people, such as women, entered the work force.

Dwight Perkins and others cite certain methodological flaws in Krugman and Alwyn Young's research, and suggest that much of Taiwan's growth can be attributed to increases in productivity. These productivity boosts were achieved through land reform, structural change (urbanization and industrialization), and an economic policy of export promotion rather than import substitution.

Future growth

Taipei, the capital city and financial centre of Taiwan

Economic growth has become much more modest since the late 1990s. A key factor to understand this new environment is the rise of China, offering the same conditions that made possible, 40 years ago, the Taiwan Miracle (a quiet political and social environment, cheap and educated workers, absence of independent trade unions).

One major difference with Taiwan is the focus on English education. Mirroring Hong Kong and Singapore, the ultimate goal is to become a country fluent in three languages (Taiwanese; Mandarin, the national language of China, and Taiwan; and English, becoming a bridge between East and West).

According to western financial markets, consolidation of the financial sector remains a concern as it continues at a slow pace, with the market split so small that no bank controls more than 10% of the market, and the Taiwanese government is obligated, by the WTO accession treaty, to open this sector between 2005 and 2008.

However, many financial analysts estimate such concerns are based upon mirror-imaging of the Western model and do not take into account the already proven Asian Tiger model. Yet, recently, credit card debt has become a major problem, as the ROC does not have an individual bankruptcy law.

Generally, transportation infrastructure is very good and continues to be improved, mainly in the west side of the island. Many infrastructure improvements are currently being pursued, such as the first rapid transit lines opening in Kaohsiung in 2008 and a doubling in size of Taipei's rapid transit system by 2013 now underway; the country's highways are very highly developed and in good maintenance and continue to be expanded, especially on the less developed and less populated east coast, and a controversial electronic toll system has recently been implemented.

The completion of the Taiwan High Speed Rail service connecting all major cities on the western coast, from Taipei to Kaohsiung is considered to be a major addition to Taiwan's transportation infrastructure. The ROC government has chosen to raise private financing in the building of these projects, going the build-operate-transfer route, but significant public financing has still been required and several scandals have been uncovered. Nevertheless, it is hoped that the completion of these projects will be a big economic stimulus, just as the subway in Taipei has revived the real estate market there.

Technology sector

Taipei Neihu Technology Park

Taiwan continues to rely heavily on its technology sector, a specialist in manufacturing outsourcing. Recent developments include moving up the food chain in brand building and design. LCD manufacturing and LED lights are two newer sectors in which Taiwanese companies are moving. Taiwan also wants to move into the biotechnology sector, the creation of fluorescent pet fish and a research-useful fluorescent pig being two examples. Taiwan is also a leading grower of orchids.

Taiwan's information technology (IT) and electronics sector has been responsible for a vast supply of products since the 1980s. The Industrial Technology Research Institute (ITRI) was created in the 1973 to meet new demands from the burgeoning tech industry. This led to start-up companies like Taiwan Semiconductor Manufacturing Company (TSMC) and the construction of the Hsinchu Science and Industrial Park (HSP), which includes around 520 high-tech companies and 150,000 employees. By 2015, a bulk of the global market share of motherboards (89.9 percent), Cable CPE (84.5 percent), and Notebook PCs (83.5 percent) comprise both offshore and domestic production. It placed second in producing Transistor-Liquid Crystal Display (TFT-LCD panels) (41.4 percent) and third for LCD monitors (27 percent) and LED (19 percent). Nonetheless, Taiwan is still heavily reliant on offshore capital and technologies, importing up to US$25 billion worth of machinery and electrical equipment from Mainland China, US$16 billion from Japan, and US$10 billion from the U.S.

In fact, the TFT-LCD industry in Taiwan grew primarily from state-guided personnel recruitment from Japan and inter-firm technology diffusion to fend off Korean competitors. This is due to Taiwan's unique trend of export-oriented small and medium enterprises (SME) – a direct result of domestic-market prioritization by state-owned enterprises (SOE) in its formative years. While the development of SMEs allowed better market adaptability and inter-firm partnerships, most companies in Taiwan remained original equipment manufacturers (OEM) and did not – other than firms like Acer and Asus – expand to original design manufacturing (OBM). These SMEs provide "incremental innovation" with regard to industrial manufacturing but do not, according to Dieter Ernst of the East–West Centre, a think-tank in Honolulu, surpass the "commodity trap", which stifles investment in branding and R&D projects.

The Taiwanese president Tsai Ing-wen, of the Democratic Progressive Party (DPP) enacted policies building on the continued global influence of Taiwan's IT industry. To revamp and reinvigorate Taiwan's slowing economy, her "5+2" innovative industries initiative aims to boost key sectors such as biotech, sustainable energy, national defense, smart machinery, and the "Asian Silicon Valley" project. President Tsai herself was the chairperson for TaiMed Biologics, a state-led start-up company for biopharmaceutical development with Morris Chang, the CEO of TSMC, as an external adviser. On 10 November 2016, the Executive Yuan formally endorsed a biomedical promotion plan with a budget of NT$10.94 billion (US$346.32 million).

At the opening ceremony for the Asia Silicon Valley Development Agency (ASVDA) in December 2016, Vice President Chen Chien-jen emphasized the increasing importance of enhancing not only local R&D capabilities, but also appealing to foreign investment. For example, the HSP now focuses 40 percent of its total workforce on "R&D and technology development". R&D expenditures have been gradually increasing: In 2006, it amounted to NT$307 billion, but it increased to NT$483.5 billion (US$16 billion) in 2014, approximately 3 percent of the GDP. The World Economic Forum's Global Competitiveness Report 2017–2018 profiled up to 140 countries, listing Taiwan as 16th place in university-industry collaboration in R&D, 10th place in company spending on R&D, and 22nd place in capacity for innovation. Approved overseas Chinese and foreign investment totaled US$11 billion in 2016, a massive increase from US$4.8 billion in 2015. However, the Investment Commission of the Ministry of Economic Affairs' (MOEAIC) monthly report from October 2017 estimated a decline in total foreign direct investment (between January and October 2017) to US$5.5 billion, which is a 46.09 percent decrease from the same time period of 2016 (US$10.3 billion).

Cross-strait relations

Debate on opening "Three Links" with the People's Republic of China were completed in 2008, with the security risk of economic dependence on PR China being the biggest barrier. By decreasing transportation costs, it was hoped that more money will be repatriated to Taiwan and that businesses will be able to keep operations centers in Taiwan while moving manufacturing and other facilities to mainland China.

A law forbidding any firm investing in China by more than 40% of its total assets on the mainland was dropped in June 2008, when the new Kuomintang government relaxed the rules to invest in China. Dialogue through semi-official organisations (the SEF and the ARATS) reopened on 12 June 2008 on the basis of the 1992 Consensus, with the first meeting held in Beijing. Taiwan hopes to become a major operations center in East Asia.

Regional free trade agreements

While China already has international free trade agreements (FTA) with numerous countries through bilateral relations and regional organizations, the "Beijing factor" has led to the deliberate isolation of Taiwan from potential FTAs. In signing the Economic Cooperation Framework Agreement (ECFA) with China on 29 June 2010 – which permitted trade liberalization and an "early harvest" list of tariff cuts – former president Ma Ying-jeou wanted to not only affirm a stable economic relationship with China, but also to assuage its antagonism towards Taiwan's involvement in other FTAs. Taiwan later signed FTAs with two founding members of the Trans-Pacific Partnership (TPP) in 2013: New Zealand (ANZTEC) and Singapore (ASTEP). Exports to Singapore increased 5.6 percent between 2013 and 2014, but decreased 22 percent by 2016.

In 2013, a follow-up bilateral trade agreement to the ECFA, the Cross-Strait Service Trade Agreement (CSSTA), faced large student-led demonstrations – the Sunflower Movement – in Taipei and an occupation of the Legislative Yuan. The opposition contended that the trade pact would hinder the competency of SMEs, which encompassed 97.73 percent of total enterprises in Taiwan in 2016. The TPP, on the other hand, still presents an opportunity for Taiwan. After the APEC economic leaders' meeting in November 2017, President Tsai expressed deep support for the advancements made regarding the TPP – given that U.S. President Donald Trump pulled out of the trade deal earlier in the year. President Tsai has also promoted the "New Southbound Policy", mirroring the "go south" policies upheld by former presidents Lee Teng-hui in 1993 and Chen Shui-Bian in 2002, focusing on partners in the Asia-Pacific region such as the Association of Southeast Asian Nations (ASEAN), Australia and New Zealand.

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