Neoliberalism is the “heresy of our age” and should be replaced by a “Just Money” approach to economics as laid out by the Catholic Church, according to a new report backed by senior MPs on both side of the political divide.
The report, commissioned by Theos, the religious and society think tank is launched as the Archbishop of Canterbury meets the heads of the International Monetary Fund (IMF) and the Bank of England in Washington. IMF President Christine Lagarde and Bank of England Governor Mark Carney have previously voiced concerns at the growing gap between the rich and the poor.
Written by Radio 4’s Moral Maze contributor and author Clifford Longley, Just Money puts forward an approach to economics which takes its inspiration from the Catholic Church’s highly-respected Just War theory, which inspired papal opposition to the Iraq War of 2003.
The report is being backed by senior political figures such as Jon Cruddas, Jesse Norman, Maurice Glasman and Jo Johnson. It argues that politicians and economists are sliding back to the “neoliberal” consensus that caused the 2008 crash and that instead they should draw on the tradition Catholic Social Teaching (CST) on economics, as advocated by Pope Francis and his predecessors.
Up to $30 trillion was lost in the run up to the 2008 crash. In a controversial document last year the Pope strongly criticized the “crude and naïve trust” in those wielding economic power.
Instead of the traditional binary model of market and state, CST, as laid out in writings by Pope Benedict and Pope Francis proposes a triangle of forces: state, market and civil society.
“Catholic Social Teaching is not anti-business, but pro-human,” says Longley. “It offers a coherent set of principles that can protect social capital – shared values and standards such as honesty and trust. In the long run this must be good for business as well as good for ordinary people.”
Just Money goes beyond the usual left-right divisions in economics. What we need, the report argues, is to set aside traditional economic theories of labour or capital, and re-examine what economic activity is actually for.
Senior economic figures have been taking the Pope’s views increasingly seriously. In May Ms Lagarde, cited Pope Francis in a speech on “inclusive capitalism”, echoing his phrase that inequality is the “root of social evil”. Speaking at the same event, Mark Carney, who regularly attends Mass, said business needed to be seen as a vocation and argued that market integrity was “essential” to fair financial capitalism.
“The answer is not to abandon the business economy,” Longley writes, “but to humanise it, thereby making it fairer, more efficient and user-friendly, never forgetting that, like the Sabbath, the market was made for man and not man for the market.”
Politicians from both left and right have supported the report. “This is a fantastic piece of work and very significant,” says Jon Cruddas, MP. “This space is a key one for the future of politics.”
“The report convincingly shows how market fundamentalism can destroy trust and undermine civil society, and reminds us how both trust and civil society are needed for the renewal of capitalism,” adds Jesse Norman, MP.
ENDS
Notes for editors
- For a copy of the report click here: Just Money: How Catholic Social Teaching can Redeem Capitalism.
- For interviews with Clifford Longley please contact Glenda Cooper press@theosthinktank.co.uk; 07736481017
- Theos is the UK’s leading religion and society think tank. For more information please go to theosthinktank.co.uk
