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
Education
Wisdom
5 min read

We need libraries: they expose our limitations

These physical monuments to our own ignorance instil knowledge and humility.
Children sit in a library listening to a story
Spellow library children's talk.
Children’s Commissioner for England.

On 19 July 2024, my wife, toddler, cat, and I moved back to our hometown of Liverpool. Ten days later, three children were killed and ten more were seriously injured following a mass stabbing at a children’s dance workshop in nearby Southport. 

In the aftermath, amid widespread misinformation about the killer’s background, riots erupted across the country. With unrest intensifying, on 3 August rioters set fire to Spellow Library, less than two miles away from our new home. The apparent reason for the fire? It contained Qur’ans. Imagine that: books in a library! (There’s an all-too-easy joke about far-right thugs not understanding what libraries are that I’ll try to resist making here.) 

Nothing the country witnessed in those riots matches the unspeakable horror that occurred within that dance studio in Southport. And yet, I found the library fire deeply unsettling. I hadn’t worked out why, until recently.  

I’m a theology lecturer and work from home a lot. I’m often listening to music while replying to emails, planning lectures, or marking essays. Recently, however, I’ve been in a musical rut. My usual stuff feels stale and nothing new catches my attention. I mostly use streaming services, and this week it hit me: the platform is the problem.  

Streaming platforms operate through search engines: I search for an artist, song, or album, and start listening. In other words, I have to know what I want to listen to before listening to it. Platforms might suggest new music, but this is invariably based on what I already like. It very rarely exposes me to anything outside my comfort zone.  

In the build-up to the invasion of Iraq in 2003, then-U.S. Secretary of Defense Donald Rumsfeld was asked about the mythical WMDs that served as the war’s McGuffin. His answer has gone down in political infamy:  

“there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns—the ones we don't know we don't know.” 

When teaching students, I constantly stress the importance of ‘unknown unknowns’. Good education exposes us to things we don’t know that we don’t know. It gives us increasing awareness of our own ignorance. Streaming services greatly reduce the chances of finding music I don’t know that I don’t know. Instead, I listen to music I know I know, or music I know I don’t know.  

I used to love trawling through music shops, pouring over the vast sea of artists I hasn’t even heard of, imagining my favourite album was buried amid the reams of CD cases. It saddens me that I can’t remember the last time I did that. Music shops are physical monuments to my own ignorance. When I see all the artists, all the albums – even the genres! – I haven’t even heard of, I’m unavoidably confronted with my own ignorance.  

So, too, with libraries. How many times I’ve wandered the stacks of university libraries and thought “I didn’t even know there was a book about this topic!” when picking something off the shelves! And this is their value to students: they are physical monuments to their own ignorance. They instil a passion for knowledge, and a deeper sense of humility, as students are forced to grapple concretely with everything they don’t even know they don’t know

(Incidentally, this is what I’ll tell my wife next time I buy another book I invariably won’t read. I can already imagine her response: “But my love, we have plenty of physical monuments to your ignorance at home already.”) 

I found the destruction at Spellow Library so disquieting. It is a supremely, nihilistic act. It is to reject engaging with our ‘unknown unknowns.’ 

Like music streaming platforms, libraries are increasingly digital spaces. My primary experience of reading nowadays is to type something into a search bar. My reading – just like my music – is increasingly myopic; increasingly confined to the realm of ‘known unknowns’. But true humility is only fostered through engagement with the ‘unknown unknowns’ of our life. We need the physical monuments to our own ignorance. We ignore them – or, as the case may be, set fire to them – at our peril.  

There is a significant spiritual element to this, and this is why I found the destruction at Spellow Library so disquieting. It is a supremely, nihilistic act. It is to reject engaging with our ‘unknown unknowns’; a fearful unwillingness to be confronted by our own ignorance.  

In a famous graduation speech entitled “This is Water” writer David Foster Wallace encourages those present to think about the ‘water’ in which they swim. What is so ubiquitous in life that it goes unnoticed? We might call these ‘unknown knows’: things we simply take for granted. On a theological level, the physical nature of our existence is one such phenomena. That we exist somewhere and somewhen is not a given; both space and time are creatures, too.  

And this ought to make us reflect: why are we made to be physical if we might not have been? The Bible is clear that this physicality is a gift. So much so that God Himself chooses to dwell amongst us in physical form. The Christian story is that, in Jesus Christ, God becomes human. The Christian Gospels go to great pains to stress his physicality. He eats, He sleeps, He cries, He bleeds. He reads from physical scrolls when in the synagogue.  

That God-given physicality means I can surround myself with the depth and breadth of my own creaturely ignorance; with my ‘unknown unknowns’. To my shame, I don’t do this often enough, and my increasingly digital life makes this harder. I have become physically detached from my ‘unknown unknowns’.  

And so, now Spellow Library is reopen, I am going to make a concerted effort to visit and support society’s physical monuments to my creaturely ignorance. They may make me uncomfortable as I am overwhelmed by the extent of my limitations, but they may also just make me humbler. And that is the real gift of our God-given physicality.  

Celebrate our 2nd birthday!

Since Spring 2023, our readers have enjoyed over 1,000 articles. All for free. 
This is made possible through the generosity of our amazing community of supporters.


If you enjoy Seen & Unseen, would you consider making a gift towards our work?


Do so by joining Behind The Seen. Alongside other benefits, you’ll receive an extra fortnightly email from me sharing my reading and reflections on the ideas that are shaping our times.


Graham Tomlin
Editor-in-Chief