Reinhold Niebuhr on Economic Disparity

I admit that I tend, like most people, I suspect, to think of terms like economic inequality, social justice and social disparity as phrases growing out of the 1960s social movements. I understand why some of my friends roll their eyes at these terms, seeing as there has always been economic inequality among humans on Earth – for our entire history! – and that such terms are often favorite code words today for confiscating resources that someone worked diligently to earn to help their family, and redistributing them to people who are not working. In a culture built on the Protestant Work Ethic and Germanic ideals of work-hard-be-rewarded-well-prosperity, it’s easy to see why many people consider these terms less than useful.

However, Christians have been concerned about economic injustice and disparity since the beginning. Christianity’s emphasis on God’s concern for the poor is drawn from its constant appearance in the Old and New Testaments of the Bible. Preachers as far back as Gregory the Great (540-604 AD) not only railed about concern for the poor, but also were already analyzing contributing factors as to why they were poor in the first place (Gregory himself observed that rural poverty due to a poor harvest had a different genesis  than urban poverty where the societal structures in place kept rich people rich and poor people desperately poor.)* John Wesley, Anglican founder of the Methodists, argued that a Christian should make as much money in his business as he could – as long as it didn’t harm his neighbor’s business! (Sermon: On the Use of Money). For myself, I am not against a factory owner making more money than the factory worker. Having known those owners, and their story, including un-assisted rags-to-riches stories that, yes indeed, were done without crushing anyone, not even systemically, I don’t have a problem that they are enjoying the fruit of their hard work. The ancient scroll of Proverbs in the Old Testament celebrated the cause-and-effect benefits of diligent work 3000 years ago. Every time someone succeeds, it does not mean it was via injustice, however hidden. A seven-person broom business in Bangladesh started with a Muhammad Yunus micro-loan shouldn’t have to listen to the charge of systemic injustice. I know American businesses started by very poor people that succeeded the same way. Constant assumptions of systemic injustice whenever someone does well, are over-reaching on the subject.

What does strike me as a new conundrum, is that in the current way our transnational corporate world is organized, the factory owner now makes over 350 times what the worker does, whereas 60 years ago they made about 12 times more than the worker. The fact that the owner was from that same town and felt a sense of responsibility for his workers, created a context in which all-or-nothing short term profits were NOT the order of the day. This is one of the chief reasons thinkers like Fritz Schumacher argued for smaller businesses rather than mega. But I got thinking of all of this when I was reading The Theology of Reinhold Niebuhr by E. Campbell today and came across this passage – using those terms like social injustice, in 1932! Here is Niebuhr’s quote, from Moral Man and Immoral Society: A Study in Ethics and Politics (1932):

                “The sharpening of class antagonism within each modern industrial nation is increasingly destroying national unity and imperiling international comity as well. It may be that the constant growth of economic inequality and social injustice in our industrial civilization will force the nations into a final conflict… the disintegration of national loyalties through class antagonisms has proceeded so far in the more advanced nations, that they can hardly dare to permit the logic inherent in the present situation to take its course. Conditions in these nations, particularly in Germany… reveal what desperate devices are necessary for the preservation of even a semblance of national unity…

                If the possibilities and perils of the contemporary situation are to be fully understood it will be necessary to study the class antagonism within the nations carefully and estimate their importance for the future of civilization.”

Heightened disparity undermining civilization. This from a landmark Christian theologian back in 1932. Interesting.

*Wealth and Poverty in Early Church and Society (Holy Cross Studies in Patristic Theology and History) Susan R. Holman, editor. 2008.

Poverty, lack, enough

I meant to post this two weeks ago, but my access to internet has been spotty the last few weeks. Looking around our new location (we have moved to SE Asia) has sparked thoughts about, among other things, what is poor and what is not. I am looking at the cover photo right now of Richard Peet and Elaine Hartwick’s Theories of Development. It is a rural African scene, with the small clay-brick houses and stick-wall-and-thatch-roof homes of smallholder farmers. There are tools on the roofs, fruit trees around the homes… this field-and-tree homesteader view rolling into the distance, where it creeps one third up a mountainside, with the top two thirds of the mountain still wild-forested. The scene appears to have sufficient water, and there are harvested crops stacked and stored.

In terms of ‘material civilization,’ this scene doesn’t have a ton. It is a relatively sparse setting, in terms of the number of objects the households own. But does that make it ‘poor’? If there is sufficient water, food, shelter and clothing, is that poverty because there is less than rural Pennsylvania? (My grand parents and their parents used to say to me “we didn’t know we were ‘poor,’ everybody was.”) Or is poverty more an issue of enough, and then access to sufficient education, healthcare and opportunity to exercise one’s freedom and develop one’s life (… aka Amartya Sen)?

I have a feeling we often think ‘poor’ when looking at a material civilization without as many accumulated household goods and gadgets as is typical in the West. But I don’t think that’s accurate. My family of six came here with 12 suitcases of clothing and small personal effects (no one in their right mind goes across the world without their favorite fishing reels!) We then bought some furniture, an iron, some cooking and eating implements, and mosquito nets. Our new home (palatial as it is!) seems more than adequately outfitted. I now am wondering, aside from my books, why we shipped 200 cubic feet of household items and fun stuff. The families around us have far fewer material possessions than people accumulate in America, yet they do not seem poor at all. Alongside Sen, I wonder if our impressions and measurements of ‘poverty’ and ‘lack’ are often skewed toward material possessions that are not actually the determining indicators.

Schumacher: the limitations of economics to reflect reality

“I’ll post it in a few days.” A few days! I am having trouble getting back to my blog as I am being subsumed under a wave of a zillion things to do as I wrap up my job pastoring a fantastic church in rural Pennsylvania, at the same time that I have another zillion things to do preparing for a move to SE Asia.

In any event, here is E.F. Schumacher’s quote, written in 1973, regarding the short-sightedness of modern economic activity: (Well, I think this is the one I had in mind 10 days ago!)

“Economics, moreover, deals with goods in accordance with their market value and not in accordance with what they really are. The same rules and criteria are applied to primary goods, which man has to win from nature, and secondary goods, which presuppose the existence of primary goods and are manufactured from them. All goods are treated the same, because the point of view is fundamentally that of profit-making, and this means that it is inherent in the methodology of economics to ignore man’s dependence on the natural world. (Note from Todd: you can monetize wood, but when there’s no forest left, money does not equal trees anymore).

Another way of stating this is to say that economics deals with goods and services from the point of view of the market, where willing buyer meets willing seller. The buyer is essentially a bargain hunter; he is not concerned with the origin of the goods or the conditions under which they have been produced. His sole concern is to obtain the best value for his money.

The market therefore represents only the surface of society and its significance relates to the momentary situation as it exists there and then. There is no probing into the depths of things, into the natural or social facts that lie behind them. In a sense, the market is the institutionalization of individualism and non-responsibility. Neither buyer nor seller is responsible for anything but himself.

….economists have felt entitled… to treat the entire framework within which economic activity takes place as a given, that is that is to say, as permanent and indestructible. It was no part of their job and, indeed, of their professional competence, to study the effects of economic activity upon the framework. Since there is now increasing evidence of environmental deterioration, particularly in living nature, the entire outlook and methodology of economics is being called into question. The study of economics is too narrow and too fragmentary to lead to valid insights…”

E.F. Schumacher, Small is Beautiful: Economics as if People Mattered (Harper & Row, 1973, pp. 46, 54).