Saturday, November 30, 2013

Where things get really interesting is when Pope Francis brings up the financial crisis. "One cause of this situation," he writes, "is found in our relationship with money, since we calmly accept its dominion over ourselves and our societies. The current financial crisis can make us overlook the fact that it originated in a profound human crisis: the denial of the primacy of the human person!"

It's nothing new to say the financial crisis came from a lack of regulation. That's a fairly popular analysis. But what Pope Francis is saying is more Polanyan, hearkening back to the idea that the tipping point has to do with the relationship between the market and society/humanity, and which is subordinate to the other. Just as Polanyi argued that the extension of the market economy across the globe (through the gold standard) was the root cause of World War I (and you'll have to go back to the original book for that, but it's a beautifully, hilariously gutsy, Guns, Germs, and Steel kind of argument), Francis is arguing that failing to keep humanity at the center of our economic activity was the root cause of the financial crisis.

Read it all.

No comments: