Explainer

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3 August 2023

5 min read

Beyond wealth and wellbeing: how nations flourish

As GDP data is increasingly scrutinised, Ryan Gilfeather asks how to measure the true health and wealth of a nation.

Ryan Gilfeather

Ryan Gilfeather explores social issues through the lens of philosophy, theology, and history. He is a Research Associate at the Joseph Centre for Dignified Work.

Two women sit behind a press conference desk against a backdrop, one listens as the other speaks and gestures.

A recent International Monetary Fund press conference on the world economic outlook.

IMF.

Discussions of GDP loom large in our current age. As we live under the shadow of the threat of a recession in the UK, ministers and commentators anxiously follow our country’s Gross Domestic Product, to see whether we are on the right track. Measuring the total value of goods and services produced in a country, this figure is a litmus test for the health of an economy. Crucially, many policymakers and leaders in government believe this figure reveals the health of a nation.

As we will see, not all agree. Opponents rightly highlight that an increase in GDP does not necessarily mean that ordinary citizens live better lives. There are good reasons to share this opposition from a Christian perspective. However, ultimately, the Christian tradition highlights a very different way to measure the health of a society.

In 2020 The Carnegie UK Trust, a think tank campaigning for greater welfare for all, published a new measure for social progress: GDWe (Gross Domestic Wellbeing). In brief, they gathered and processed ONS (Office for National Statistics) data on a variety of domains in life, giving them a single figure on a 10-point scale to rate well-being. These domains included personal well-being, relationships, health, vocational activities, living environments, personal finances, the economy, education and skills, governance, and the environment. When they plotted GDP against GDWe from 2013-9, they revealed that the two do not always line up. As GDP steadily increased from 2016, overall welfare in society dipped. From 2013-9 GDP increased by 10.34 per cent and GDWe only 5.19 per cent. Hence, measuring GDP does not necessarily reveal whether life is getting better for ordinary.

Economic resources are not useless... However, they are not sufficient unto themselves for us to live full and good lives.

This attempt to shift the conversation about social progress from predominantly centring GDP is commendable. The Bible does not legislate on whether to use GDP or GDWe. However, scriptures within it repeatedly decouple economic wealth from flourishing. For example, in the gospel of Matthew, Jesus says the following:

Do not store up for yourselves treasures on earth, where moth and rust consume and where thieves break in and steal, but store up for yourselves treasures in heaven, where neither moth nor rust consumes and where thieves do not break in and steal. For where your treasure is, there your heart will be also.

In life, we can either focus our efforts on attaining wealth or fostering our relationship with God. Only the latter will lead us to flourish. Economic resources are not useless; they are necessary for us to thrive in certain conditions. However, they are not sufficient unto themselves for us to live full and good lives. Furthermore, when wealth becomes the focus of our hearts and minds, our lives will be hollow and fractured. GDWe is a good measure, insofar as it acknowledges that economic flourishing is not the same as a good quality of life, and it attempts to shed light on the latter. However, the Christian tradition highlights a different framework altogether to grasp the health of a society.

Gregory of Nyssa, a fourth-century theologian and bishop, frames wellbeing as a human being reflecting the image of God to the greatest of their ability. The book of Genesis says that God made us all in His image. Gregory argues that this means that we can become like God in certain ways. God is the fullness of all good things, such as love, justice, peace, joy, and courage. Consequently, Gregory argues that when we act in good ways, we begin to share those characteristics, which in turn leads us to act well in the future. For example, if I defend someone who is under attack, I will become more courageous, and more likely to repeat the same action in the future. The more we reflect the image of God, by acting well and taking on His characteristics, the more we will flourish as individuals. In this vision of human flourishing, Gregory brings together an Aristotelian account of virtue, with a Christian understanding of people as the image of God.

This framework for the well-being of an individual also provides a good barometer for the health of a society. All of these actions and characteristics are building blocks for a healthy society. So long as we have a good sense of how to act appropriately with love, justice, peace, joy and courage, then our actions will build up our common life together. They benefit all, rather than one. They are not zero-sum actions. Accordingly, a society made up of individuals who are acting well and reflecting the image of God would be very healthy indeed.

As a measure of a society, we should ask whether it leads citizens away from virtuous actions and characteristics. For example, between 2019 and 2021, gun murders in the USA rose by 45%. Earlier this year, journalist John Burn-Murdoch argued this rise is partly due to decaying public trust in that country. This tells us that a culture marked by fear of others can lead some of its citizens to commit terrible actions and live lives full of violence. GDP may rise during this time, as may other markers of welfare. However, to see the whole picture we need also consider how societal forces are leading citizens away from flourishing in their reflection of the image of God. Then, we should go about addressing these malignant forces.

In times of adversity... individuals in societies marked by high levels of trust are more satisfied with their lives and act more benevolently.

At the same time, we should also consider how a society enables its citizens to reflect the image of God. Societies with high levels of social trust create space for a variety of positive actions and characteristics. The World Happiness Report studies people’s sense of life satisfaction worldwide. It routinely finds that in times of adversity, like the Great Recession in 2008 or the COVID pandemic, individuals in societies marked by high levels of trust are more satisfied with their lives and act more benevolently than others. Again, these social forces are not the same as GDP, yet they have a significant ability to shape the extent to which citizens can reflect the image of God, and thereby flourish.

In my work for the Joseph Centre for Dignified Work, I am particularly concerned with low-wage workers’ pay and conditions. As I have argued elsewhere, low pay leads to some workers needing to take on two or more jobs. They, consequently, have no time to see their children, nourish their faith, or participate in community institutions. It is clear, therefore, that the widespread pattern of paying below the Real Living Wage (£11.94 p/h in London, £10.90 elsewhere), hinders people in their expression of love for God, family and neighbour. Pay and conditions are but one further example, amongst many, of how societal forces can hinder or help our flourishing in the reflection of the image of God.

Needless to say, GDP and GDWe are still useful and necessary tools. However, they do not tell the full story. GDP only describes the progress of the economy as a whole, and GDWe can only describe the quality of an average person’s life. In contrast, when we set a goal that each citizen should reflect the image of God, we can begin to explore how societal forces enable or squeeze out this aim. With this greater knowledge in mind, we can strive for progress in our nation by fostering good structures and stamping out bad ones, so that all may reflect the image of God to the greatest of their ability.

Explainer

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Economics

16 May 2024

1 min read

The Merc, the monks, and the pursuit of excellence

Exploring the roots of the work ethic.

Rahil Patel

Rahil is a former Hindu monk, and author of Found By Love. He is a Tutor and Speaker at the Oxford Centre for Christian Apologetics.

A large sculpture of the Mercedes Benz three-point star stands in front of a large, low glass fronted showroom.

Mercedes Benz visitor centre, Sindelfingen.

I visited the Mercedes Benz factory in Sindelfingen, Germany, back in 1999. It’s an event that etched a profound impression on my mind. I would even go as far as to say one of the most overpowering “Godly moments” of my life. Hold on! Before you shun me as a “materialist” or silently mutter “of course you love a Mercedes…you’re Indian!” Let me crawl out of your assumptions and rescue myself with an explanation.

Entering the grounds of the Benz factory that cold October afternoon, my guide said that the car park alone was eight square miles of brand-new Benz’. “A robot takes each car from the factory to the car park” I was proudly told. “Germans usually don’t like any mileage on their new cars before they come to collect them, so we’ve made this arrangement to suit their needs.”

“Of course you have,” I muttered cheekily whilst fumbling to hide my astonishment. “Is that a railway station?” I sounded like an eight-year-old who had just entered Disney World.

“Yes, the cars are placed on the train by robots too! We send 1,860 cars via train to the river port city of Hamburg every day. From there they are then shipped to the rest of the world.”

“Ah…,” I nodded pretentiously, as if this was something I frequently witnessed. I was in my late 20s and so trying to hide my feverish temperament was failing as each minute ticked by.

Inside the factory the technology (even in those days) was out of a sci-fi film. A human-like robot calmly held the windscreen of an E-Class Mercedes whilst another robot released a gluey paste around the edges with precision and fluidity. It was like watching a heart surgeon operate on a human but only smoother.

“The dashboard you see arriving on the belt above will be fitted into the main body here below within 30 seconds.”

For a moment I thought my guide was joking with me, as back then I was a monk, dressed in orange robes and looking as if I might be resident in a cave somewhere in the Himalayas. But then I saw the robot in front of me pick up the dashboard at hand and fit it into the mainframe in 20 odd seconds! It was like a quiet day of strawberry picking on a farm for these machines.

After being guided around the gargantuan and astounding array of technology, efficiency and elegance my guide introduced me to the General Manager. I shared my impressions with him with a tad of excitement after which he said, “thank you, yes…we tend to gather together every day for 30 minutes or so, after we close, to see where we can improve on all of this!” After that calm and casual response, I wasn’t sure whether I ought to be impressed with the staggering sophistication surrounding me…or his statement!

Something significant happens in you when you are in the presence of excellence and those who are insistent to pursue it.

There’s something annoyingly attractive about those who are persistent in their pursuit for excellence. It’s as if they are resiliently refining something at hand in the hope of fulfilling another deeper search in the human heart. For these enthusiasts for excellence, a beautiful Mercedes Benz is but a by-product. I’d like to say that it's the outworking of a deeper search.

We are drawn to the beauty of detail. This impalpable gravitation can be attributed to the Divine, as many around the world do. With the precision and detail of that world around them making it possible.

I once heard that a Book of wisdom in the Bible called Proverbs could be categorised into three parts: integrity, creativity and excellence. Although I wasn’t a follower of Jesus back in 1999, I can go back to that factory experience and call it a ‘Godly’ moment because something significant happens in you when you are in the presence of excellence and those who are insistent to pursue it.

Luther’s understanding of the Bible and its implications on work ethic should not be underestimated.

Nearly 350 miles north of the Mercedes factory lies the university city of Wittenberg. The home of another monk, Martin Luther, and Katherine Vona Bora, his wife – and an unexpected champion of excellence.

After running away from her nunnery Katherine married Martin Luther and changed the work style and living standards of their lives almost immediately. Katherine had learned how to grow fruits and vegetables in the nunnery and applied this skill to the small piece of land surrounding their residence and turned it into a profit-making farm. The local Prince in Wittenberg witnessed her innovative skills and gave a small monastery for Luther and his wife to live in. Katherine used the profits of the first investment to invest in another farmland and produced profits once again- and this continued. By 1542 the Luther’s owned more land in Wittenberg than any other citizen! She had initiated such a change that sociologist Max Weber discussed it in his classic, The Protestant Ethic and the Spirit of Capitalism.

When Luther published Table Talks (based around the discussions in their home when students came to stay or visit), scholars understood clearly how his Biblical exposition (and the indirect defence of his wife’s economic model) created Europe’s spirit of free enterprise.

Katherine’s work ethic was influenced by St. Benedict’s monastic biblical tradition which St Paul had also taught (whoever does not work, shall not eat). A bit like the General Manager at Mercedes Benz who felt that there was still room for improvement in work.

Luther’s understanding of the Bible and its implications on work ethic should not be underestimated. He states that a skilled mechanic “steals' ' when he underperforms at his work for which he is being paid! Not giving your best at something is also called “stealing.” Luther also writes that those who are lazy at work or unfaithful with their work are “worse than sneak- thieves.”

One can argue that Katherine and Luther’s understanding of work ethics from the Bible gave rise to the enthusiasm for excellence across many spheres of western culture and industry.

For me, it’s still a chuckling moment to see the often but obvious impression upon the face of a fellow Indian when they read a label marked, ‘Made in Germany.' It says something… let me just say, with all due respect that it doesn't say the same as “Made in India.” At this point in world history my fellow friends in India would agree.

I have known many Indians who would buy a Mercedes Benz however old or broken down it may be. On the other hand, in 2023 the German manufacturer broke all its sales records in India, growing 10 per cent year on year. (Mind you, some Benz models in India are twice the cost as those in the USA or UK)!

So, is it just status? Or Class? No. There may be an element of wealth display, but the deeper desire is the association with excellence, hard work and efficiency. All of which Luther drew from his own Biblical comprehension as well as his creative wife Katherine Von Bora.

Hindu Monks are not drawn into a far-off corner of Germany to see a luxury car being made. They are drawn (unknowingly) by those of us who are pursuing excellence, elegance and efficiency all of which are tied richly in the wisdom of the Bible.

Yes, I know what you might be thinking and yes, I have visited other luxury car factories. Aston Martin is a case in point. But on returning to my fellow folk thereafter in 1999 I was surrounded by monks whose faces were struck with awe and wonder and they asked,” did you really go? How was it?” That’s the exclusive magic of Mercedes Benz. Or should I say, Martin Luther and Katherine. And how they understood the Bible.