Is there a heart at the heart of our economics?

May 10, 2012 3:29 pm

It’s hardly news that we live in interesting times and that there is as yet little agreement on the way out of the various predicaments we find ourselves in. Five years into the financial crisis and its fallout we’re back in recession, austerity is biting, and shifts are underway which make talk of our capitalism being ‘morally degraded’ and of ‘broad popular demands for greater economic security and social responsibility’ part of the political furniture. There seems to be broad agreement that something needs to happen yet there is precious little agreement on what that something is. Perhaps worse, there seems to be more political will for talk than action, based perhaps in part in a residual fear of the institutions that bet their way into the financial crisis in the first place.

The Christian Socialist Movement’s 2012 Tawney dialogue, ‘Transforming Capitalism: putting relationships back into economics’, to be given by Rachel Reeves MP, the Revd Dr John Hughes and Lord Myners this evening, offers an opportunity to take a step back from the headlines and to look more clearly at underlying issues. Grounded as it is in the legacy of R. H. Tawney, the dialogue offers a chance to look back to the lessons of the past and forward to a possible future.

Changed circumstances and disillusionment with past forms of economics, welfare and indeed the moral basis of our society presents challenges for both Left and Right. This evening’s debate promises to tackle a number of these from the Left’s perspective. Firstly, if we are to speak of prioritising relationships rather than finance we thus draw in debates not only about economics but also about welfare and morality. Shared shock at the behaviour of bankers, journalists and politicians has led to a broad agreement that we need a higher standard of morality in public life, but what is the source of these morals to be?

Secondly, on the issue of welfare, the Coalition has accelerated the existing dismantling of the 1945 settlement, in part on grounds of cost, in part in the hopeful expectation that civil society will take up some of the slack. If an over-regulative state truly has encouraged cultures of dependency rather than relationships of mutuality and participation how is civil society to be strengthened (assuming that simply withdrawing the state will not achieve this)?

Thirdly, the commitment to equality is at the heart of Christian socialism, but perhaps this needs to be understood in closer relation to fraternity and solidarity rather than just liberty.  There remains a potential tension here in that if equality must be cultivated through traditions, communities, and practices, these can always degenerate into self-serving forms of privilege.

Finally, while the return to the local and human-scale is vital in re-embedding the economy in society and real relationships, Christian socialists should not abandon the discussion of globalisation to the neo-liberals.  What does all this mean for questions of international development?

This evening’s debate provides an opportunity to further these debates and to contribute to next steps, a transformed capitalism, and an economics that prioritises relationships and humanity as well as growth and stability.

Mike Buckley is a London member of the Christian Socialist Movement

  • robertcp

    Mike, I am not religious but this does sound like what Labour should be discussing.  A fairer capitalism is even more important in difficult times when there is less money.

  • http://profiles.google.com/roger.f.mccarthy Roger McCarthy

    No. 

    And if you think you can transform capitalism into an economics that ‘prioritises relationships and humanity as well as growth and stability’ then you really do not understand what – and above all WHO – capitalism is for.  

  • Daniel Speight

    If an over-regulative state truly has encouraged cultures of dependency…

    Let’s at least place blame where it’s due. The increase in welfare dependency came about because of the deindustrialization of Britain. This was a political decision made by the Thatcher governments, but blame can also be laid on the Blair/Brown governments for not trying to reverse their own dependency on the City’s finance industry. So blame Westminster and the politicians not those on welfare or some ‘big state’ excuse.

    • J7Sue


      The increase in welfare dependency came about because of the deindustrialization of Britain. This was a political decision made by the Thatcher governments, ”
      The decision was to let low wage countries, like China, trade with us to both our advantage – but that meant that our low – skill workforce would lose out, while everyone else gained.  The political decision was then to brand the low – skill folk as idle and feckless, rather than being the victims of free trade.  

  • Daniel Speight

    Thirdly, the commitment to equality is at the heart of Christian
    socialism, but perhaps this needs to be understood in closer relation to
    fraternity and solidarity rather than just liberty.  There remains a
    potential tension here in that if equality must be cultivated through
    traditions, communities, and practices, these can always degenerate into
    self-serving forms of privilege.

    Equality should be at the heart of Labour, not just those of a religious bent. With hindsight, it was of no surprise that New Labour wanted to ban the the word. (See Hattersley’s statement on being asked not to use the word by a Blair aide if you can find it.)

    To talk about equality without being prepared to talk about why Britain had become an even more unequal society under New Labour is in many ways cowardice. Why? Because it brings up the changes made to the personal taxation system since the mid to late seventies when this widening of income equality started in the post-war years.

    Surely if the French elections show anything, it’s that we can talk about tax without using the word ‘cuts’ in the same sentence.

  • treborc1

    It’s interesting that  a Christian Movement think this is an interesting time, people are really struggling jobs are going and the poorest in society are struggling, the sick and the disabled are going through one of the worse attacks ever.

    And some of this was put in place by a Labour government, so interesting would be a bit of an understatement, suppose we could all go to church and pray, maybe God will help us if we are good people.

  • hp

    ‘Austerity’ is not biting:  we are still running a deficit, i.e. spending more public money than we can really afford.
    What is happening is a return to normality, following an unaffordable debt bubble.
    ‘Reality’ is kicking us up the arse, it isn’t ‘austerity’ at all.

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