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
Culture
Generosity
Virtues
6 min read

We need to rescue volunteering

Our use of the word now reflects unwanted obligations, rather than a deep desire to serve.

Juila is a writer and social justice advocate. 

Two small lifeboats raft together on a river rescue.
Lifeboats on the River Thames.
x.com/rnli_teddington

It’s a hot summer evening and there are 30 of us sweating in our dry suits. Tuesdays usually mean lifeboat training, but this night is a little different. An intermission from the usual intensity of a team-building exercise: racing two lifeboats across the river Thames. Allocated into teams of two rowing in a knockout tournament, we are going to be here for a while. Our cheers provide the soundtrack for the BBC radio crew recording a programme on volunteering. The mood is convivial; the competition is fierce. None of us have to be here; all of us choose to be. We are a lifeboat crew, and we are all volunteers.  

Around 25 million people in the UK do some form of volunteering. And they are celebrated during Volunteers’ Week, which has been running for 41 years. The benefits are well documented these days. The mental and physical health boost. A sense of purpose. The chance to learn new skills. A route to forging connections with other people. 

Despite this, though, the number of people volunteering has been on a twenty-year decline. One in three organisations are struggling to retain volunteers, in part due to the cost-of-living crisis making people’s time and capacity more precious than ever.  

Beyond that, our use of the word seems to have shifted to reflect unwanted obligations, rather than a deeply held desire to serve. ‘I suppose I better volunteer to put out the chairs’ we might pronounce with the deathly weight of Katniss Everdeen’s ‘I volunteer as tribute,’ glancing to the left and the right in case anyone saves us from the undesirable task. It seems the very idea of volunteering needs rescue.  

It wasn’t on my radar to be lifeboat crew, but an unexpected new job in an unfamiliar London suburb unlocked this possibility. When I considered ‘Why wouldn’t I?’, I couldn’t find a strong reason. So, one autumn evening I trekked down for my first Tuesday night at Teddington lifeboat station. It was time to fill in the paperwork: I was officially a volunteer. 

Over the months that followed, I found myself wondering why other people gave their time, energy and skills to complete the nearly 50 training modules and to be available 24/7 when someone on the water was in need. I hungered for people’s stories, to know why they kept answering the call when their beds were warm and the night was unknown. So, over the four years that I was on the crew, I asked them. I spoke with teachers and students, company directors and full-time parents. I heard stories of multiple generations on a crew, their family’s blood running orange and blue. One woman spoke of overcoming her fear of heights to scale the side of a boat; another had an unexpected tale of a dolphin attack. Each time, I had the same question: why do you do it? 

And I was struck by the fact that none of them gave an answer that fully added up. They could name parts of it: care for people, teamwork, a love of the sea. Sometimes of the reasons they started (‘Dad did it’) were not why they stayed on (‘I could make a palpable difference’). I didn’t meet anyone who didn’t enjoy being on the water. Play and peril can co-exist – and we need to have moments of joy along the way if we’re going to be in it for the long haul. But in each case, the answers always seemed to come up a little short. If I was looking for something neat and complete, I wasn’t finding it.  

This is, perhaps, the difference between volunteering and having a hobby. At some point, volunteering will cost you something. 

Back on the river, the knockout races are suddenly interrupted. A call from the coastguard: there’s a person in difficulty in the river. The mood switch is instantaneous; the action swings from contesting to collaborating to get a boat headed upstream as fast as possible. Somewhere, someone is having a very bad day. This is what we exist for.  

The RNLI was born out of a need. In the early nineteenth century, nearly 2,000 ships – and their crews – were being wrecked on British and Irish coasts every year. Sir William Hillary saw this loss firsthand from his home on the Isle of Man, joining with others to rescue as many as possible – but it wasn’t enough. People continued to perish. So, he rallied other activists and philanthropists, and in a London pub, the charity now called the Royal National Lifeboat Institution was formed. Hillary’s motto, 'with courage, nothing is impossible’, can still be found adorning lifeboat stations around the country. 

None of the lifeboat crew members that I met seemed to think of themselves as anything but ordinary. They were full of admiration in the stories of fellow crew mates, but saw themselves as entirely human, naming everyday needs and familiar comforts. Writing about courage, Andrew Davison recognised that, 

 ‘The willingness of a courageous person to forgo ease, safety, the comforts of home, and even to risk life and limb, does not spring from hatred of any of those things’.  

This is, perhaps, the difference between volunteering and having a hobby (also commendable for its health benefits, sense of purpose, opportunities for connection). At some point, volunteering will cost you something. That sacrifice is needed demonstrates the level of care; otherwise, it’s simply another act of self-actualisation in the service of the volunteer themselves. 

It’s dark on the river and the boat crew is still out. The BBC’s team has packed up for the evening. We have tidied the station, no evidence of the antics of hours earlier. We depart. Close to midnight, those of us who can, return. We bring the boat in from the water, and make it ready for the next call, which will inevitably come. One less job for those who’ve been on duty all evening. It’s the least we can do.  

In the origins of the term is a spirit of offering. The Latin voluntaries carries a sense of ‘to give of one’s free will’. This, perhaps, is where we’ve lost our way with the whole idea. For there to be a sense of duress in volunteering is to strip the generous act of its power. Where there is obligation on one side and self-interest on the other, we can find the middle ground marked by devotion, by having chosen to serve and therefore having the commitment to see it through. This is the invitation that volunteering can offer us, and that I glimpsed from people who had been volunteering on the lifeboats for decades.   

Writing to the sea-faring city of Ephesus in ancient Greece, the church leader Paul encouraged people to ‘submit to one another’, which is another way of saying sacrificially help each other. In smaller coastal communities, a lifeboat crew might be called out to save a family member. In London, a city of millions, it will always be a stranger. But either way the decision was the same: to show up. The reasons why we do it don’t always add up. There are flavours of compassion, of wanting to be useful, to be part of something bigger. But there seems to be something else as well. A dedication to meeting a need. Put another way, we might call it love. 

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