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.” 

Explainer
Culture
Gaza
Israel
Politics
5 min read

Politics is the only way to solve the tragedy of Gaza

Trump is not the first person to want to create a Riviera by the Mediterranean.

Graham is the Director of the Centre for Cultural Witness and a former Bishop of Kensington.

A sign projected on to the Houses of Parliament reads: how many is too many.
A projection protest sign, London.
Christian Aid.

Whichever side you take in the Israel-Gaza conflict, the stories can't help bring a sense of desperation. Images of starving children, the fate of Jewish hostages still held in darkness - either way, this remains a place of unimaginable suffering. And meanwhile, the bombs keep dropping, people die, and Hamas retains its hold. 

Among Israel’s friends, voices have been murmuring a radical solution to the problem of Gaza. Donald Trump’s plan was to raze the territory to the ground, shift 50 million tonnes of debris and displace its people to neighbouring countries to build the ‘Riviera of the Middle East’ in what had until now, been Gaza. The plan might have been met with some amusement when it was aired, but it gave permission for many within Israel to think similar thoughts.  

Bezalel Smotrich, the Israeli finance minister, recently claimed that after the Israeli operation, “Gaza will be entirely destroyed” and its Palestinian population will “leave in great numbers to third countries.” Many within Israel seem to think the stubborn, Hamas-ridden enemy living next door needs to be eradicated. To a population weary of decades of conflict, fearing that there will never be peace while Hamas remains in Gaza, and aware of how difficult it is to winkle out the Islamic terrorist group while the Palestinian population remains there, you can understand the attraction of this radical solution. 

However, the Israelis might have good reason to be cautious. And that is not a counsel from their opponents - but from their own history.  

In the early 130s AD, the boot was on the other foot. It was the mighty Gentile Roman Empire that ruled over the same patch of land, which they were soon to call Palestina. Jews were a minority, but they still harked back to their long roots in the land, the days of Joshua and King David, and even more recently to the Jewish Hasmonean kingdom 200 years before - the last time before the modern state of Israel that Jews were in control of the land. 

The emperor at the time, Hadrian, passed through Jerusalem in 130 AD, along with his entourage and his lover, the young slave boy Antinous. He started to paganise the city, erecting statues of gods and emperors, even of his young favourite, all of them offensive to Jewish sensibilities. The smouldering resentment soon erupted with a revolt led by a fierce and determined Jewish fighter, Bar Kokhba. This was the second Jewish uprising after the earlier one in the 60s that had led to the destruction of the great Jewish Temple in Jerusalem by Titus, under the reign of the emperor Vespasian in 70 AD. For the Romans, one revolt might just be tolerated, two was too much.  

Hadrian came to the same conclusion as Bezalel Smotrich – a rebellious territory had to be erased from the map, although this time, it was Jerusalem that was to be eliminated, not Gaza. Its Jewish population was to be scattered, its name deleted, and memories of past glories buried for good.  

And so, in 135 AD, the bulldozers moved in. Jerusalem was effectively flattened, and a Roman city built on its ruins. Aelia Capitolina was its new name, a smaller city, yet decadently built around the worship of Greek and Roman gods, with splendid gates, pagan Temples, a classic Roman Forum, expansive columned streets – not quite the Riviera of the middle east, but maybe the Las Vegas. ‘Jerusalem’ was scrubbed from the map. 

At the centre of the sacred Jewish Temple Mount, Hadrian erected a statue of himself. He deliberately planted a statue of Aphrodite over the very spot where the early Christians insisted that the death and resurrection of Jesus had taken place – where the Church of the Holy Sepulchre stands today. Circumcision was outlawed, many Jews were killed, and those remaining were banned from the city, dispersed anywhere where they could find shelter. In fact, the map of the Old City of Jerusalem today is still marked by this design, with the two main Hadrianic streets diverging south from the Damascus Gate, with archaeological remains of the Roman city still visible for visitors. 

Yet of course it didn’t work. No-one calls it Aelia today. People's attachment to land goes deep. The Jews could not forget their roots in this patch of the earth's surface. As Simon Sebag Montefiore put it: “the Jewish longing for Jerusalem never faltered”, praying three times a day throughout the following centuries: “may it be your will that the temple be rebuilt soon in our days.” 

Palestinian attachment to land is similarly strong. Nearly 80 years after the creation of the state of Israel in 1948, families still cling on to the keys to homes that were taken from them during that traumatic period. Like the Jewish yearning for Jerusalem, they too, like people across the world, have a deep attachment to ancestral lands, which go back to the ‘Arabs’ mentioned in the book of Acts, to whom St Peter preached in the early days of the Christian church.  

Executive decisions by distant rulers such as the emperor Hadrian or President Trump might seem like neat solutions to intractable problems. But they seldom work in the long term.  

The famous biblical injunction ‘an eye for an eye, a tooth for a tooth’ was meant not as an encouragement to violence but the exact reverse. It was mean to set a limit to the development of blood feuds, which could, out of anger and trauma, so easily lead to disproportionate reaction and never-ending vendettas. When St Paul wrote “Beloved, never avenge yourselves, but leave room for the wrath of God; for it is written, ‘Vengeance is mine, I will repay, says the Lord’”, he was recalling an ancient piece of Jewish wisdom that set limits on human capacity to sort out intractable problems by violence. He knew a better way: “Do not be overcome by evil, but overcome evil with good.” 

Luke Bretherton, Regius Professor of Moral Theology at Oxford and a Seen & Unseen writer, argues that there are really only four ways you can deal with neighbours who prove difficult: you can try to control them, cause them to flee, you can kill them, or you can do politics – in other words, try to negotiate some form of common life, as ultimately happened in Northern Ireland, South Africa, and so many places of long-standing conflict. 

Politics, the business of learning how to live together across difference, is messy, complicated and hard work. Especially so when there are deep hurts from the past. Yet, as the failure of Hadrian’s radical solution shows, there is no real alternative in the long term. 

Join us

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