Soul of the economy

ONE precious lesson learned in the current global financial crisis is that business and the economy just cannot be handled as if they are soulless institutions and practices governed by purely economic laws without any regard to morality.

This anomaly was evident in the heady housing boom in the US generated by the notorious subprime housing loans which were and still are at the eye of the present economic typhoon.

They were a reckless way of doing business, driven by false socio-economic principles and greed. It was as if our Lord’s words were completely forgotten: “It’s not by bread alone that man lives, but by every word that comes from the mouth of God.”

We have to understand that unless we recognize the soul of the economy, going beyond its purely technical aspects, and act accordingly, we would be not only going nowhere but also exposing ourselves to tremendous dangers.

Now, the US economy, and together with it, that of the whole world, notably Europe, are paying dearly for these mistakes. Top businessmen and investors, like Warren Buffet, are claiming that the American economy will be “in shambles” in 2009 and probably well beyond. Imagine ours!

This crisis should remind us of the need to imbue our economic activities with a keen sense of justice and solidarity, as well as temperance, prudence and an abiding concern for the common good.

It might be good to download the relevant social teachings of the Church and upload them in our society so as to be better known by everyone, especially those who are active participants in the business-and-economic arena.

In the Compendium of the Social Doctrine of the Church, we have the following points that can shed light on the nature and purpose of the economic activities. They can serve as guiding principles in doing business:

- “Goods, even when legitimately owned, always have a universal destination; any type of improper accumulation is immoral, because it openly contradicts the universal destination assigned to all goods by the Creator.” (328)

We have to know what improper accumulation of goods means. For this and other pertinent concerns, everyone, of course, should be involved. But the greater responsibility falls on our leaders, especially our spiritual leaders who have to give prompt and effective guidance to the faithful.

- “Riches fulfill their function of service to man when they are destined to produce benefits for others and for society.” (329)

We have to help everyone develop this mentality of continually attuning his pursuit of wealth with the needs of the others.

- “The relation between morality and economics is necessary, indeed intrinsic: economic activity and moral behavior are intimately joined one to the other. The necessary distinction between morality and the economy does not entail the separation of these two spheres but, on the contrary, an important reciprocity.” (331)

- “The economy has as its object the development of wealth and its progressive increase, not only in quantity but also in quality; this is morally correct if it is directed to man’s overall development in solidarity and to that of the society in which people live and work.” (334)

Let’s hope that these points at least get well known and assimilated by all, because even at these times of supposedly high level of development, there is still a lot of ignorance and confusion regarding these basic economy-and-morality principles.

An ongoing social and cultural formation driven by a genuine spiritual stimulus, of course, has to be undertaken to infuse these vital moral values into the mentality and practices of everyone.

Besides, we need to develop the proper mechanisms where these ethical and moral requirements get protected and upheld juridically as far as possible.

Insofar as the clergy is concerned, it’s truly a big challenge for the bishops and priests to be updated with the developments so we can put our preaching and guidance in proper context.

Lastly, my favorite point of social doctrine is the following, which I think explains much of our problems these days:

- “A financial economy that is an end unto itself is destined to contradict its goals, since it is no longer in touch with its roots and has lost sight of its constitutive purpose.” (369)

We have to be most wary when we make our business and economic activities to serve only our own self-interests. That’s the sure way to perdition.