Interview
Culture
Economics
S&U interviews
5 min read

Can the economy work for the common good?

Adrian Pabst on the economic framework that is universal yet particular about people.
A man talks animatedly looking at the camera while sitting against a wood panelled wall.
Fondazione Centesimus Annus Pro Pontefice.

Adrian Pabst is Professor of Politics at the University of Kent, and deputy director at The National Institute of Economic and Social Research. His lecture on Just Economy? Catholic Social Thought, Mutualism and Roads Not Yet Taken, was a highlight of the Lincoln Lectures series, organised by Together for the Common Good. Financial markets journalist Laurence Fletcher talks with him to discover more about his thinking.

 

There is no shortage of commentators ready to point out the apparent deficiencies in the UK’s economy. Widespread in-work poverty, poor productivity growth, regional inequality and a perceived reluctance among employers to train up British workers are just some of the accusations that can be levelled. 

But finding realistic, workable solutions is more difficult, as successive governments have found. Is the answer to be found in having higher levels of tax and government spending, or lower? Should governments be intervening more, or give more room for free markets to work? With a general election on the horizon, and with issues of economic growth, government spending and taxation likely to feature prominently, such questions are particularly pertinent. 

Offering one alternative way of tackling the problem is Professor Adrian Pabst, a political scientist at the University of Kent, who is an expert on so-called Catholic Social Thought. This approach, which was developed in the 19th century and draws from the Bible, focuses on the dignity of the individual, care for others and the common good, with the aims of social renewal. It provides a framework for thinking about big topics such as international relations, the economy and the environment, and Pabst believes it has much to say about our economy today. 

Catholic Social Thought “is very particular. It always speaks to the moment. And it’s highly universal because of it,” he said in a recent interview. “This is what the world is like and this is how we must act.” 

Pabst rejects both the idea that everything is fine with our economy (“mythical stories about things working”) and the belief that “everything going to hell in a handcart”. 

Instead, his approach is to look at some of the apparent contradictions in our economy - strengths alongside related weaknesses. For instance, how can a country be rich but have poor citizens, or have a very high output of goods and services while many people do not partake in them? Or how can many people have become worse off in recent years, even though wages are growing? Or how can the UK boast an “incredible” City of London that is one of the world’s top financial centres, yet have people without access to capital? 

“We have to be realistic about where we are - a low wage, low growth, low productivity economy. We can pay people higher wages over time if we increase productivity. That comes from investment,” he said. 

Free markets have at times been heralded as either the answer to all our problems by some on the political right, or the cause of so much misery by some on the left. But Pabst’s approach is more nuanced. Markets should not simply be “the engine for ever-greater inequality”. But, crucially, they are not inherently bad in and of themselves, and often the problem is instead down to a market being stacked in one side’s favour.  

“Markets are not one thing,” he said. “They are an outcome of ownership, regulation… There is not a problem with markets per se, but it’s the wrong regulation, ownership concentrated in a very few people. 

“There are lots of things we can do much better. But if we replace the market with the state, we’d just be doing [communism] and ultimately we’d be poorer,” he added. “The question is, are we putting society first?”  

(As an aside, he also takes a more nuanced view on former Prime Minister Margaret Thatcher, who he believes brought both positives and negatives). 

Big tech firms are “oligarchies accountable to no-one. It’s simply not a tenable position. They’re like media companies yet they’re not subject to media laws… We’ve allowed them to build private infrastructures. It needs to be tackled.”

So what would Pabst actually change? 

For starters, he believes that too much capital is directed towards the wrong purpose, namely financial speculation. While some would argue that speculation plays an important role in the economy, for instance in price discovery in markets or in taking the other side of the trade, say for farmers who want to hedge crop prices, Pabst is keen to see the economy produce “goods and services that have real worth”. Significantly for how society is structured today, he argues that we do not need “a class that lives off assets at the expense of everyone else”. 

Other areas also need to change, he believes. Loopholes should be closed to make it harder for companies to use agency workers rather than employing people. Trade unions need to be encouraged and improved. A national investment bank, grouping together the existing, disparate pots of money, could direct capital to sectors and regions where it is needed. As is already the case in Germany, companies and society would both benefit from having employees on their boards. 

More economic decisions can be devolved from national government to a local level, but challenges such as climate change or regulating the big, powerful technology companies - which he describes as “modern day plutocracies” - should be tackled at a higher level. 

Big tech firms are “oligarchies accountable to no-one”, he said. “It’s simply not a tenable position. They’re like media companies yet they’re not subject to media laws… We’ve allowed them to build private infrastructures. It needs to be tackled.” 

And (more of a comment on the US than the UK) he sees little value in companies reporting earnings quarterly, which he said is driven by “short-term profit maximisation”. 

Intriguingly, Pabst does not shy away from taking a stance on one of the most divisive issues of our times: immigration. 

Catholic Social Thought, he explains, is humane and pro-immigrant. But, to break with what he calls “a low wage, low skill model”, mass economic migration is to be discouraged, because it is detrimental to both the sending and receiving countries. 

“[We say] yes to refugees, to asylum. But no to mass economic migration,” he said. 

So, going into an election, how likely are we to see things change for the better? 

Rather than being optimistic - the belief that eventually things will get better - Pabst is hopeful, because he believes that things could be different, but he is not necessarily expecting it. 

“I remain hopeful,” he said. “I just don’t quite see who’s going to do it.” 

Article
Books
Culture
Morality
Sin
7 min read

After the Salt Path revelations I’m liking it even more

We edit our own reality by the stories we tell ourselves

Roger is a Baptist minister, author and Senior Research Fellow at Spurgeon’s College in London. 

A newspaper front page shows its title and a falling sea bird
How The Observer broke the story.

The Observer held nothing back in its exposé headline:

“The real Salt Path: how a blockbuster book and film were spun from lies, deceit and desperation”

The truth behind the summer’s feel-good movie and the reputation of author Raynor Winn lie in tatters, shredded by the revelations unearthed by relentless investigative journalism.

The uplifting story of how a couple face financial ruin, homelessness and a terminal illness by walking the South West Coast Path has been an inspiration for many who’ve either read the book or seen the film, or both. The story works because it reflects back to us the life we know, the lives we live. And when you add the seaside of Somerset, Devon, Cornwall and Dorset, what’s not to love?

But now it needs to be seen in an altogether different light.

The article beneath the headline was thoroughly researched, carefully constructed and uncompromising in the allegations implied by the discoveries, observations and commentary of its narrative.

“… not her real name”

“… she was a thief … embezzled the money”

“… arrested and interviewed by the police”

“… five county court judgements”

“… they owned land in France”

“… nine neurologists … were sceptical”

Point by point the back story of the Salt Path is pulled apart.

First, Raynor and Moth Winn are not the “real”, “legal” names of Sally and Tim Walker.

Second, The Observer uncovered that the couple had money troubles for reasons other than the failed business investment they had claimed. Rather, as a part-time bookkeeper for an estate agent and property surveyor, Sally was accused of syphoning off £64,000 from the company’s accounts. Concerning which, it was reported that she was arrested and interviewed by the police.

Third, it was mounting debts from settling the matter with her former employer, alongside other debts, that actually led to the repossession of their home and their resulting homelessness. Not the failed business venture.

Fourth, they weren’t actually homeless as they owned a property in France, near Bordeaux. While it was in a state of disrepair and not habitable, they had previously stayed on site in a caravan.

And then finally, in a revelation that undermined the very heart of the story of their journey together, medical experts observed that it was extremely doubtful that Moth had suffered from corticobasal degeneration (CBD) for 18 years. The journalist had consulted nine neurologists, and this was the reported consensus. Not only were Moth’s presenting symptoms not what were expected, the normal life expectancy with the condition was tragically short at six to eight years.

Pulling the various strands of its investigation together The Observer thumps the tub about the importance of ‘truth’. It is not acceptable to be mis-sold an idea of truth where important passages of the book are invented. There are both “… sins of omission and commission”:

“The story, no doubt, has elements of truth, but it also misrepresents who they were, how they started out on their journey and the financial circumstances that provided the backdrop.”

However, life is complicated and there are always two sides to a story.

In a response posted to her website Raynor Winn answers each of the accusations in turn. Amid the storm of vitriol and threat unleashed online by the article, she protests that, “… [it] is grotesquely unfair, highly misleading and seeks to systematically pick apart my life.”

Most distressing has been how Moth has been traumatised by the suggestion his diagnosis was made up. Along with her online statement Winn has posted appropriately redacted letters from the neurologists treating Moth that confirm his diagnosis and the narrative of the book.

As for the charges of embezzlement, she does concede that there were difficulties with a former employer. Allegations were made to the police, and she was questioned about them. However, no charges were brought, and a settlement was reached that included her paying back money on a “non-admissions basis”.

“Any mistakes I made during the years in that office, I deeply regret, and I am truly sorry.” Raynor Winn

This, however, was not the failed business deal that lay behind their financial difficulties and which triggered their homelessness and the Salt Path story.

Winn reports that the property in France is an “uninhabitable ruin in a bramble patch” with its own, unrelated, back story. When they did explore selling it at the height of their difficulties, a local French agent valued it as virtually worthless and saw marketing it as pointless.

Ultimately, they chose not to declare themselves bankrupt and simply wipe out their debts. Rather, they made an agreement with their creditors for minimal repayments. The success of the book has enabled all their debts to be cleared.

Which leaves the implicit accusation of not being who they said they were, of hiding behind pseudonyms and not owning their “real”, “legal” names. She explains that the reasons Sally Ann and Tim Walker are Raynor and Moth Winn is really quite straightforward.

In the early years of their relationship she told Moth how much she disliked being called Sally Ann and would have preferred the family name, Raynor. Moth called her Ray from that point on. Winn is her maiden name. As for Moth, well his name is Timothy, get it? Friends and family use the names interchangeably, Sal/Ray, Tim/Moth.

Having read the book and seen the film earlier this summer I was particularly taken with The Salt Path. The humanity of their story, the journey they’d been on and the insights to a life well-lived that it offered.

Goodness, which one of us has never made a mistake, a bad call, or a wrong choice, “through weakness, through ignorance or through our own deliberate fault”?

When The Observer’s bombshell broke my heart fell. Moral high horses were being mounted and outrage expressed. Raynor Winn was being cancelled, literally cancelled.

She pulled out of her forthcoming Saltlines tour, which would have seen her perform readings from her books alongside the music of the Gigspanner Big Band during a string of UK dates. There were also calls for Penguin to cancel her next book, On Winter Hill, set for publication in October.

But do you know what? On reflection, after the revelations about the Salt Path story I’m liking it even more. And for exactly the same reasons I liked it before. Because it reflects back to us the life we know, the lives we live.

For a start, life is messy. Sometimes it’s even murky, full of misunderstanding, misinterpretation and constructed narratives. Goodness, which one of us has never made a mistake, a bad call, or a wrong choice, “through weakness, through ignorance or through our own deliberate fault”? Skeletons and cupboards come to mind.

Then, on the back of that, we all fashion the story of our lives. Whether it’s curating our online presence with the images we post to social media, or the anecdotes we share and the face we present to those who are part of our day-to-day lives. The pull is always towards a version that shows us in the best light.

In fact, it can even go right down to the stories we tell about ourselves, to ourselves. The interpretation of what has happened to us and why. Interpreting how much of our experience is down to what has been done to us or is the fruit of our own responsibility.

Now, I may not want to go as far as University of Sussex Professor of Neuroscience, Anil Seth, whose books, articles and Ted Talks see us living in a kind of ‘controlled hallucination’. An interpreted version of reality constructed and calibrated by our brains out of our experience. But there is no doubt in my mind that we edit our own version of reality by the stories we tell ourselves and each other.

This is how things are. This is what it means to be human. Some bits are edited in, others edited out. Some experiences we can interpret in one way, while others might view them very differently from where they stand.

When we feel the temptation to write someone off because of what they’ve done we do well to reflect on our own experience. Then we may well be grateful that we haven’t been cancelled because of our past indiscretions.  As the old saying goes, “There, but for the grace of God, go I.”

I’m reminded of how Jesus handled himself is such circumstances. When a self-righteous crowd were swiftly wanting to rush to judgement on a woman’s flawed sexual choices, Jesus encouraged those who were without fault to be the first to act. Slowly they all realised what he was saying and backeddown.

For myself, I have always found the prayer of confession to be profoundly helpful. It keeps us grounded in the reality of our own experience and should caution us about cancelling others and writing them off.

Almighty God, our heavenly Father,

we have sinned against you

and against our neighbour

in thought and word and deed,

through negligence, through weakness,

through our own deliberate fault.

We are truly sorry

and repent of all our sins.

For the sake of your Son Jesus Christ,

who died for us,

forgive us all that is past

and grant that we may serve you in newness of life

to the glory of your name.

Amen.

For our skeletons there is forgiveness.

For what lies ahead, we have the possibilities of starting over.

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