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
Belief
Creed
Identity
Truth and Trust
5 min read

Calls to revive the Enlightenment ignore its own illusions

Returning to the Age of Reason won’t save us from post-Truth

Alister McGrath retired as Andreas Idreos Professor of Science and Religion at Oxford University in 2022.

In the style of a Raeburn portrait, a set of young people lounge around on their phones looking diffident
Enlightened disagreement (with apologies to Henry Raeburn).
Nick Jones/Midjourney.ai.

Is truth dead? Are we living in a post-truth era where forcefully asserted opinions overshadow evidence-based public truths that once commanded widespread respect and agreement? Many people are deeply concerned about the rise of irrational beliefs, particularly those connected to identity politics, which have gained considerable influence in recent years. It seems we now inhabit a culture where emotional truths take precedence, while factual truths are relegated to a secondary status. Challenging someone’s beliefs is often portrayed as abusive, or even as a hate crime. Is it any surprise that irrationality and fantasy thrive when open debate and discussion are so easily shut down? So, what has gone wrong—and what can we do to address it? 

We live in an era marked by cultural confusion and uncertainty, where a multitude of worldviews, opinions, and prejudices vie for our attention and loyalty. Many people feel overwhelmed and unsettled by this turmoil, often seeking comfort in earlier modes of thinking—such as the clear-cut universal certainties of the eighteenth-century “Age of Reason.” In a recent op-ed in The Times, James Marriott advocates for a return to this kind of rational thought. I share his frustration with the chaos in our culture and the widespread hesitation to challenge powerful irrationalities and absurdities out of fear of being canceled or marginalized. However, I am not convinced that his proposed solution is the right one. We cannot simply revert to the eighteenth century. Allow me to explain my concerns. 

What were once considered simple, universal certainties are now viewed by scholars as contested, ethnocentric opinions. These ideas gained prominence not because of their intellectual merit, but due to the economic, political, and cultural power of dominant cultures. “Rationality” does not refer to a single, universal, and correct way of thinking that exists independently of our cultural and historical context. Instead, global culture has always been a bricolage of multiple rationalities. 

The great voyages of navigation of the early seventeenth century made it clear that African and Asian understandings of morality and rationality differed greatly from those in England. These accounts should have challenged the emerging English philosophical belief in a universal human rationality. However, rather than recognizing a diverse spectrum of human rationalities—each shaped by its own unique cultural evolution—Western observers dismissed these perspectives as “primitive” or “savage” modes of reasoning that needed to be replaced by modern Western thought. This led to forms of intellectual colonialism, founded on the questionable assumption that imposing English rational philosophies was a civilizing mission intended to improve the world. 

Although Western intellectual colonialism was often driven by benign intentions, its consequences were destructive. The increasing influence of Charles Darwin’s theory of biological and cultural evolution in the late nineteenth century led Darwin’s colleague, Alfred Russel Wallace, to conclude that intellectually and morally superior Westerners would “displace the lower and more degraded races,” such as “the Tasmanian, Australian and New Zealander”—a process he believed would ultimately benefit humanity as a whole. 

We can now acknowledge the darker aspects of the British “Age of Reason”: it presumed to possess a definitive set of universal rational principles, which it then imposed on so-called “primitive” societies, such as its colonies in the south Pacific. This reflected an ethnocentric illusion that treated distinctly Western beliefs as if they were universal truths. 

A second challenge to the idea of returning to the rational simplicities of the “Age of Reason” is that its thinkers struggled to agree on what it meant to be “rational.” This insight is often attributed to the philosopher Alasdair MacIntyre, who argued that the Enlightenment’s legacy was the establishment of an ideal of rational justification that ultimately proved unattainable. As a result, philosophy relies on commitments whose truth cannot be definitively proven and must instead be defended on the basis of assumptions that carry weight for some, but not for all. 

We have clearly moved beyond the so-called rational certainties of the “Age of Reason,” entering a landscape characterized by multiple rationalities, each reasonable in its own unique way. This shift has led to a significant reevaluation of the rationality of belief in God. Recently, Australian atheist philosopher Graham Oppy has argued that atheism, agnosticism, and theism should all be regarded as “rationally permissible” based on the evidence and the rational arguments supporting each position. Although Oppy personally favours atheism, he does not expect all “sufficiently thoughtful, intelligent, and well-informed people” to share his view. He acknowledges that the evidence available is insufficient to compel a definitive conclusion on these issues. All three can claim to be reasonable beliefs. 

The British philosopher Bertrand Russell contended that we must learn to accept a certain level of uncertainty regarding the beliefs that really matter to us, such as the meaning of life. Russell’s perspective on philosophy provides a valuable counterbalance to the excesses of Enlightenment rationalism: “To teach how to live without certainty, and yet without being paralyzed by hesitation, is perhaps the chief thing that philosophy, in our age, can still do for those who study it.” 

Certainly, we must test everything and hold fast to what is good, as St Paul advised. It seems to me that it is essential to restore the role of evidence-based critical reasoning in Western culture. However, simply returning to the Enlightenment is not a practical solution. A more effective approach might be to gently challenge the notion, widespread in some parts of our society, that disagreement equates to hatred. We clearly need to develop ways of modelling a respectful and constructive disagreement, in which ideas can be debated and examined without diminishing the value and integrity of those who hold them. This is no easy task—yet we need to find a way of doing this if we are to avoid fragmentation into cultural tribes, and lose any sense of a “public good.” 

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