Power,Subsidiarity, and the Economy of Exclusion

According to Pope Francis, an “economy of exclusion” is an economy with barriers that prevent individuals and groups from participating in the economy and society to their full potential. Power is a key determinant for both exclusion and inclusion. All economies are based on power relations and an “economy of exclusion” is an abuse of power. This contribution looks at what economic power is and how it can build barriers of exclusion or pathways to inclusion. We use income inequality as a measure of exclusion, giving a general history of power and inequality to demonstrate the role of power. Lastly, we look at the concept of subsidiarity in Catholic social thought as a principle to guide the use of power in the economy.     

Uncertainty and the Economy of Exclusion: Insights from Post‐Keynesian Institutionalism

Critics of Pope Francis’s Evangelii gaudium argue that recent economic growth and reductions in inequality are evidence that his notion of the “economy of exclusion” is misguided. However, Francis alludes to another type of exclusion—increased uncertainty generated by technological change that affects citizens even in developed nations. Drawing from Post‐Keynesian institutionalist theory, this article argues that this condition is common in capitalism, and that grassroots reforms are needed to ensure shared prosperity.     

Karol Wojtyła’s Katolicka Etyka Społeczna as Precursor and Hermeneutic Key to Pope John Paul II’s Economic Teaching

The highly anticipated publication of Karol Wojtyła’s Katolicka etyka społeczna (KES) in 2018 provides a novel and important basis for understanding the economic thinking of Pope John Paul II. The text is comprised of Wojtyła’s extensive lecture notes from the 1950s on the topic of Catholic social teaching and spans almost 500 pages. KES illustrates the future pope’s deep concern for economic justice as a young priest and his ambivalence towards capitalism, which persisted throughout his papacy. Given the size of KES, this article selectively focuses on Wojtyła’s treatment of topics of continuing relevance: the right of the Church to pronounce on economic matters; private property and the “social mortgage” on it; inequality, the just distribution of resources, and the “option for the poor”; the moral assessment of capitalism and Marxism; the dignity of labor and workers’ rights; and the role of conflict in promoting the common good. I contend that KES is consonant with the later papal teaching of John Paul II on economic justice and that it provides a hermeneutic key to understanding it. Furthermore, I argue that the “radicalism” of Karol Wojtyła on matters of economic justice in KES coheres with papal social teaching from Pope Paul VI through that of Pope Francis.     

The Throwaway Culture in the Economy of Exclusion: Pope Francis and Economists on Waste

An essential part of Pope Francis’s critique of the “economy of exclusion” is the concept of the “throwaway culture,” which is an attitude and a reality that goes beyond mere exclusion. Francis is building on critiques of consumerism (what John Paul II called “economism”) that noted both the environmental impacts of unnecessary waste and the social and human impact of reducing humans to mere consumers—the idea that happiness is shopping. Francis adds to this a concern for the people on the margins of society who are treated as disposable and for the consequences of climate change, both of which are connected to the throwaway attitude. This article looks at Francis’s views within the tradition of Catholic social thought and at how economists, especially Adam Smith, who provided the foundation for modern economics, looked at waste and consumerism.     

The Social,Spatial, and Economic Roots of Urban Inequality in Africa: Contextualizing Jane Jacobs and Henry George

Unravelling the social and economic roots of urban inequality in Africa has remained a thorny issue in African political economy. Stripped to its bare essentials, the critical questions are who causes urban inequality, what causes it, and how it is caused? While all different, the questions are interrelated. Answering the “who causes inequality” question requires a related analysis of what and why, and that is connected to the how question. Indeed, the how question has two parts—how inequality is caused and how it can be addressed. Both are connected to the why question and to its resolution. Unfortunately, while studies about urban inequality abound, they tend to hive off one aspect or another of the tripartite questions on inequality and, even worse, they study the three questions separately. This article tries to overcome the existing atomistic and piecemeal approach to the study of urban inequality in Africa by contextualizing the work of Jane Jacobs and Henry George, who took a holistic view of urban inequality. It argues that Jacobsianism and Georgism have much to offer in terms of understanding urban inequality in Africa, but neither analysis goes far enough to be able to serve as a solid foundation for policy. Ultimately, it is in their approach to urban analysis—the emphasis on context, on actual urban problems, inductivism, and some of their mechanisms for change such as George's land tax and cautious abstraction, in that order, along with their combined vision—which I call “diversity in equality”—that can add to the insights of postcolonialism in understanding and transforming urban inequality in Africa.     

Human Vicegerency and the Golden Rule: The Islamic Case Against Exclusion

The Islamic conception of social exclusion complements the Catholic perspective found in other contributions to this issue. The Islamic prohibitions of social exclusion are derived from theological principles that combine to provide a metaphysical basis for the golden rule that one should treat others as one wishes to be treated. This article examines the roots of a practical morality that enjoins us to treat other people as equals and prohibits exploitation of them in economic exchange. This philosophy is based on four principles found in the Qur'an and the hadith (teachings of the Prophet): vicegerency, commensurability, responsibility, and prophecy. These four principles combine to show how humans, as God's agents on earth, have the means to carry out the divine will. The practice of justice in Islamic thought does not rely on social conventions that are variable and contingent but on absolute principles revealed to us by the Prophet. That gives Islam an advantage over secular thought in establishing a strong foundation for social and ethical principles that give egalitarianism a transcendent basis. Thus, social inclusivity in Islamic thought is an integral part of a life governed by piety and prophecy.     

Gentrification,Social Justice and Personal Ethics

Gentrification, leading to displacement, is an increasingly recognized social problem. Individuals who are confronted with tight housing possibilities but have adequate incomes confront personal ethical issues on whether to act in ways that may contribute to displacement of lower‐income residents, and researchers working on housing issues may be particularly concerned. In order to work out an ethical position, clarity is first needed on the differences among the various aspects of gentrification. The working definition used here is that gentrification includes the danger of displacement. A public policy response is thus required to deal with its social injustices. Specific steps are suggested for the development of such policy. Secondly, the suggestion is made that the individual choice of whether to move in or not is, importantly, a personal ethical choice and should take into account both the economic and political impact of the move itself but also the contribution that can be made through collective and political action by an in‐mover to deal with the injustices of gentrification. However, it is also an ethical choice for the professions involved and their associations.     

1. Globalization and Violence: The Challenge to Ethics

Despite its many benefits, globalization has proven to harbor a good deal of violence. This is not only a matter of the proliferation of weapons of mass destruction inaugurated by the atomic bombing of Hiroshima, but includes many forms of indirect or “structural violence” resulting from the routine of economic and political institutions on the global scale. In this essay, the multifaceted phenomena of violence are approached from the standpoint of ethics. The prevailing political thinking associated with “realism” fails to address the problems of militarism and of hegemonic unilateralism. In contrast, many philosophers are critically rethinking the problem of global violence from different ethical perspectives. Despite sharing similar concerns, philosophers nevertheless differ over the role of philosophical reflection and the potentials of reason. These differences appear in two contrasting approaches associated with postmodern philosophy and discourse ethics. In the analysis of discourse ethics, attention is paid to Karl‐Otto Apel's attempt of philosophically grounding a macroethics of planetary co‐responsibility. At the heart of the essay is the analysis of the problem of violence, including terrorism, by Jürgen Habermas, who explains the phenomenon of violence in terms of the theory of communicative action as the breakdown of communication. Jacques Derrida's deconstruction of the notion of “terrorism” also is analyzed. According to the principle of discourse ethics, all conflicts between human beings ought to be settled in a way free of violence, through discourses and negotiations. These philosophers conclude that the reliance on force does not solve social and global problems, including those that are the source of violence. The only viable alternative is the “dialogical” multilateral relations of peaceful coexistence and cooperation among the nations for solving social and global problems. They emphasize the necessity of strengthening the international rule of law and institutions, such as a reformed United Nations.     

The Middle Way: The National Catholic Rural Life Conference and Rural Issues in the 20th and 21st Centuries

This article explains how the National Catholic Rural Life Conference (NCRLC), from its founding in 1923 to the present, applied basic Catholic principles in response to a succession of changes in American rural society. In doing so, it proposed a middle way between capitalism and socialism and between the Democratic and Republican parties. In the 1920s, the Reverend Edwin V. O'Hara founded the NCRLC mainly to bolster the demographically weak rural Church. In the 1930s, the NCRLC turned to economic concerns in response to the Great Depression. It supported many New Deal programs that helped farmers as well as cooperatives and a “back‐to‐the‐land” movement. The Conference consistently supported the family farm as the basic institution of a morally and economically sound rural society. In the 1940s and 1950s, the Conference entered the realm of international affairs under Monsignor Luigi G. Ligutti and addressed problems of world hunger, land reform, and underdeveloped countries. Under Monsignor Edward W. O'Rourke, who became director in 1960, the NCRLC joined in the movement for social justice and campaigned for the rights of the rural poor and migrant farm workers. Starting around 1970, the Conference became increasingly interested in environmental and energy issues. The NCRLC is in harmony with the 21^st‐century pope, Francis, on rural and ecological issues.     

Fair compensation with different social concerns for forgiveness

Forgiveness is an ethical ideal that advocates that a fresh start should be conferred upon those individuals who have changed their preferences and regret their previous decisions. Despite the ethical debate that such an idea generates, only a few papers have dealt with this issue in depth, and they have just focused on the case of full compensation for regret. Therefore, based on efficiency, robustness, and ethical requirements, we characterise a social ordering function that formally connects the ideal of forgiveness to the problem of compensating individuals when they differ in both their preferences and their initial endowment. This social ordering allows us to rank allocations that may or may not be associated with different concerns for forgiveness. Specifically, it proposes reducing inequality between reference-comparable budget sets.     

Leaders understand the power of words

Words and phrases have the power to excite our spirits, to free our minds, and to help us envision innovative ideas. “I have a dream,” “Four score and seven years ago,” “A date which will live in infamy,” and “We hold these truths to be self‐evident” are phrases that need no explanation. We remember these phrases and we also remember who said them. We remember the speeches because the words had a powerful effect on us, but we also remember them because they were delivered with a deep passion. These words transformed our thinking about slavery, about segregation, about war, and about injustices. In short, leaders understand the power of words.     

The Role of Land Tenure,Taxation, and Monetary Systems in Achieving and Enjoying Free Trade

Civilizations rise and fall based on the effectiveness of their socio-political arrangements and institutions. The institutions that matter most are the laws and customs that govern 1) production and exchange of goods (trade), 2) land tenure and the distribution of the surplus associated with it, 3) the levying of taxes to provide public goods and services, and 4) the monetary systems adopted to facilitate such activities. If those institutions distribute the benefits of civilization equitably to all members of society, the result is likely to be peace and prosperity. However, if the rules of a society are designed to protect the interests of an elite, conflict is likely to ensue. Unrestricted trade across national borders (“free trade”) has the potential to produce socially beneficial outcomes, but it is not sufficient to overcome systemic injustices associated with flawed systems of land tenure, taxation, and monetary management. This article makes use of historical examples to examine trade in relation to the other institutions to show why just social arrangements must be considered an essential part of trade policy.     

The Self‐Help Myth: Towards a Theory of Philanthropy as Consensus Broker

This article presents a theoretical and methodological approach to studying how philanthropic power is maintained through the process of negotiating consensus between greatly unequal partners such as wealthy funders and social movement leaders. It is proposed that grant agreements between private foundations and social movement organizations construct idealized spaces of public participation and discursive theories of change that draw attention away from structural inequality and antagonism, ultimately generating consent. Drawing upon archival and ethnographic research on philanthropic investments in addressing migrant poverty in California's Central Valley, the article shows how consensus between foundation staff and farmworker and immigrant organizers promote funding frameworks that exclude questions that challenge relationships of power and systems of agricultural production that contribute to enduring poverty across the region. The Gramscian conceptual frames of “discursive power,” “hegemony as politics,” and “strategic articulation” are presented as a theoretical framework from which to understand the power of private philanthropy as consensus broker during historical moments of crisis.     

Henry George and the Ethics of Economics

Abstract . Henry George's Progress and Poverty (1879) is a great ethical masterpiece. Its moral tone distinguishes the book. More than an economics test, it is a philosophic quest for justice, an impassioned declaration of the rule of natural law. Indignantly attacking the contention that economics has no place for natural law or ethics, George exclaims: “She [economics] has been degraded and shackled; her truths dislocated; her harmonies ignored.” On the contrary, George stresses, political economy (economics) is a science, and like all sciences, is governed by natural law. Furthermore, it is basically “moral.” Science must, of necessity, always lead to ethics. Natural law must, of necessity, always lead to morality, or justice.“The law of human progress, what is it but the moral law?” George asks. “Unless its foundation be laid in justice the social structure cannot stand.” The social ill that perpetuates poverty and the manifold evils it causes is private ownership of land and the private privilege of collecting its rent. “The fundamental law of nature, that the enjoyment by man shall be consequent upon his exertion, is thus violated.”     

Inequality and ability

This paper examines how much the increasing “residual inequality” in the United States can be explained by increasing returns to cognitive skills. Also, this paper uses selection-correction techniques to estimate the latent population distribution of unobservable skill within three occupational sectors, and breaks down the leftover “residual” term into a “general” unobservable component and a sector-specific unobservable component. The results indicate that sector-specific skills have played only a minor role in the inequality trends. Increasing “residual inequality” is mostly characterized by an increasing importance of general skills, either IQ or the general unobservable skill, within all three occupations.     

Frank Knight on Preachers and Economic Policy: A 19th Century Liberal Anti Religionist, He Thought Religion Should Support the Status Quo

Abstract . A central feature of the work of American economist and social philosopher Frank H. Knight was his antagonism toward organized religion, particularly Christianity and especially Catholicism. Knight's antagonism towards the Church may be traced to his historical views on the Liberal Revolution and the opposition of the Church to critical inquiry and open discussion, and its support for despotic social institutions. Additionally, Knight's antagonism stemmed from his skepticism about the possibilities of effective social reforms based upon Christian moral principles. Knight found little in Christian teaching that would offer appropriate solutions—certainly not the “Gospel of Love” which he took as the core of Christian social teachings. Furthermore he was critical of the reform efforts of preachers because of their ignorance of the function of the free market and their propensity towards radical solutions. On the centennial of his birth, he is remembered as an ardent social critic and a liberal supporter of the status quo.

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The resource curse and income inequality in Iran

This paper has investigated the relationship between oil revenues and inequality in Iran from 1969 to 2012. For this purpose, a threshold regression model has been used for capturing the non-linearity impact of the share of oil revenues in GDP on inequality. Two indicators have been applied for inequality: “Gini coefficient” and “the share of the richest decile of household expenditures which were relative to the poorest decile”. Estimation results of both inequality models suggested that there is a non-linear relationship as a u-shape between “oil revenues/GDP” and inequality in two regimes of oil revenues including high and low oil revenues regimes. The threshold level of oil revenues divided by GDP was about 10% for both inequality models. Before this threshold value, in low oil revenues regime, an increase of oil revenues would decrease income inequality, but after the threshold level and staying in high oil revenues regime, a rise in oil revenues would increase income inequality in Iran.     

Ethical Behavior and Regional Environments: The Effects of Culture, Values, and Trust

This article offers a theoretical framework and empirical analysis for explaining regional differences in the United States between culture, trust, and ethical behaviors in workplaces. Drawing on a branch of behavioral economics that uses “cultural cognition” to describe social factors influencing values and ethical decision making, we argue that an orientation toward a hierarchical or individualistic view of society erodes levels of generalized trust. A lack of generalized trust among citizens and workers is associated with employers’ illegal activity to impede union organizing activity, which we define as a violation of ethical standards. We tested our model at the US state level of analysis and found that trust mediates the relationship between social values of hierarchy and unfair labor practices. To conclude, we suggest connections between the theory and its implications for the impact of culture on a firm’s responses to workers’ exercise of their rights of collective action.     

9. Human Rights: Historical Learning in the Shadow of Violence

This paper emphasizes the historical dimension of human rights understood as a social ethic. Rather than timeless principles, human rights and the universality proper to them emerge in a process of suffering, conflict, political assertion, and institutional change. We can understand them as historical yet also universal by seeing that human rights arise in processes of social learning that take place in an increasingly globalized world. Such learning often has advanced in the face of dramatic violence, for example, the bombing of Hiroshima. But the demands on a global social ethic today are not only a matter of responding to threats and acts of dramatic violence in isolation. Attention to the example of Hiroshima suggests that the problem of violence is bound up with other questions about the regulation of emerging technical powers in a context of inequality and social conflict. To what extent can an ethic centered on human rights provide an ethics that can inform effective responses to these problems? To consider the promise of human rights, we look more closely at the kind of social learning they involve and explore in particular the role of social movements in forging new identities and reciprocities along with normative claims proper to a global public sphere (the anti‐apartheid movement provides an example). We go on to see that these political experiences can inform interpretations of historical experience that can inform a widened sense of historical possibilities, both those missed in the past and those that confront us today. While this argument may thicken our sense of the promise of a human rights ethic, it remains speculative, not least because of the limited effectiveness of these norms in practice today. We close with the suggestion that nonetheless a coherent ethical response is possible, one that in the wealthy parts of the globe might take the form of an ethic of democratic responsibility. This would both represent a distinctive kind of learning and perhaps contribute to a wider advance of human rights.