Pope Francis on economists, the financial crisis, poverty, ethics, money, solidarity and other topics

The official English language translation of Pope Francis’ address for the New Non-Resident Ambassadors to the Holy See: Kyrgyzstan, Antigua and Barbuda, Luxembourg and Botswana (16 May 2013):

Your Excellencies,

I am pleased to receive you for the presentation of the Letters accrediting you as Ambassadors Extraordinary and Plenipotentiary to the Holy See on the part of your respective countries: Kyrgyzstan, Antigua and Barbuda, the Grand Duchy of Luxembourg and Botswana. The gracious words which you have addressed to me, for which I thank you heartily, have testified that the Heads of State of your countries are concerned to develop relations of respect and cooperation with the Holy See. I would ask you kindly to convey to them my sentiments of gratitude and esteem, together with the assurance of my prayers for them and their fellow citizens.

Ladies and Gentlemen, our human family is presently experiencing something of a turning point in its own history, if we consider the advances made in various areas. We can only praise the positive achievements which contribute to the authentic welfare of mankind, in fields such as those of health, education and communications. At the same time, we must also acknowledge that the majority of the men and women of our time continue to live daily in situations of insecurity, with dire consequences. Certain pathologies are increasing, with their psychological consequences; fear and desperation grip the hearts of many people, even in the so-called rich countries; the joy of life is diminishing; indecency and violence are on the rise; poverty is becoming more and more evident. People have to struggle to live and, frequently, to live in an undignified way. One cause of this situation, in my opinion, is in the our relationship with money, and our acceptance of its power over ourselves and our society. Consequently the financial crisis which we are experiencing makes us forget that its ultimate origin is to be found in a profound human crisis. In the denial of the primacy of human beings! We have created new idols. The worship of the golden calf of old (cf. Ex 32:15-34) has found a new and heartless image in the cult of money and the dictatorship of an economy which is faceless and lacking any truly humane goal.

The worldwide financial and economic crisis seems to highlight their distortions and above all the gravely deficient human perspective, which reduces man to one of his needs alone, namely, consumption. Worse yet, human beings themselves are nowadays considered as consumer goods which can be used and thrown away. We have begun a throw away culture. This tendency is seen on the level of individuals and whole societies; and it is being promoted! In circumstances like these, solidarity, which is the treasure of the poor, is often considered counterproductive, opposed to the logic of finance and the economy. While the income of a minority is increasing exponentially, that of the majority is crumbling. This imbalance results from ideologies which uphold the absolute autonomy of markets and financial speculation, and thus deny the right of control to States, which are themselves charged with providing for the common good. A new, invisible and at times virtual, tyranny is established, one which unilaterally and irremediably imposes its own laws and rules. Moreover, indebtedness and credit distance countries from their real economy and citizens from their real buying power. Added to this, as if it were needed, is widespread corruption and selfish fiscal evasion which have taken on worldwide dimensions. The will to power and of possession has become limitless.

Concealed behind this attitude is a rejection of ethics, a rejection of God. Ethics, like solidarity, is a nuisance! It is regarded as counterproductive: as something too human, because it relativizes money and power; as a threat, because it rejects manipulation and subjection of people: because ethics leads to God, who is situated outside the categories of the market. These financiers, economists and politicians consider God to be unmanageable, unmanageable even dangerous, because he calls man to his full realization and to independence from any kind of slavery. Ethics – naturally, not the ethics of ideology – makes it possible, in my view, to create a balanced social order that is more humane. In this sense, I encourage the financial experts and the political leaders of your countries to consider the words of Saint John Chrysostom: “Not to share one’s goods with the poor is to rob them and to deprive them of life. It is not our goods that we possess, but theirs” (Homily on Lazarus, 1:6 – PG 48, 992D).

Dear Ambassadors, there is a need for financial reform along ethical lines that would produce in its turn an economic reform to benefit everyone. This would nevertheless require a courageous change of attitude on the part of political leaders. I urge them to face this challenge with determination and farsightedness, taking account, naturally, of their particular situations. Money has to serve, not to rule! The Pope loves everyone, rich and poor alike, but the Pope has the duty, in Christ’s name, to remind the rich to help the poor, to respect them, to promote them. The Pope appeals for disinterested solidarity and for a return to person-centred ethics in the world of finance and economics.

For her part, the Church always works for the integral development of every person. In this sense, she reiterates that the common good should not be simply an extra, simply a conceptual scheme of inferior quality tacked onto political programmes. The Church encourages those in power to be truly at the service of the common good of their peoples. She urges financial leaders to take account of ethics and solidarity. And why should they not turn to God to draw inspiration from his designs? In this way, a new political and economic mindset would arise that would help to transform the absolute dichotomy between the economic and social spheres into a healthy symbiosis.

Finally, through you, I greet with affection the Pastors and the faithful of the Catholic communities present in your countries. I urge them to continue their courageous and joyful witness of faith and fraternal love in accordance with Christ’s teaching. Let them not be afraid to offer their contribution to the development of their countries, through initiatives and attitudes inspired by the Sacred Scriptures! And as you inaugurate your mission, I extend to you, dear Ambassadors, my very best wishes, assuring you of the assistance of the Roman Curia for the fulfilment of your duties. To this end, upon you and your families, and also upon your Embassy staff, I willingly invoke abundant divine blessings.

Text from page http://en.radiovaticana.va/news/2013/05/16/pope:_financial_reform_along_ethical_lines/en1-692694 of the Vatican Radio website

Jepson Conference on Hayek, April 2013, with Bruce Caldwell, Jerry Gaus & many others

Conference Papers

Peter McNamara
Poltical Science, Utah State University
“F.A. Hayek and the Eighteenth Century Science of Human Nature”

Jerry Gaus
James E. Rogers Professor of Philosophy, University of Arizona
“The Evolution, Evaluation and Reform of Social Morality: A Hayekean Analysis”

Sandra Peart & David Levy
Jepson School of Leadership Studies, University of Richmond and Economics, George Mason University
“Hayek and the Individualists”

Bruce Caldwell
Research Professor of Economics, Duke University
Director, Center for the History of Political Economy
“F. A. Hayek and the ‘Economic Calculus’: The Cambridge and Virginia Lectures”

Emily Skarbek
Department of Political Economy, King’s College, London
“F.A. Hayek and the Early Foundations of Spontaneous Order”

Chris Martin
Jepson School of Leadership Studies, University of Richmond
“Hayek and the Nomothetes”

Ekkehard Kohler
Walter Eucken Institute
“Hayek’s Search for a Monetary Constitution – (Confessions of a Crisis Ridden Economist)”

Kenneth Minogue
Political Science, Emeritus, London School of Economics
“Hayek and the Conditions of Freedom”

Jason Clemens
Executive Vice-President, Fraser Institute
“Hayekian Perspectives on Canada’s Economic and Social Reforms of the 1990′s”

Video — Hayek interviewed in 1985 by John O’Sullivan

This is the full 1 hour and 18 minute interview. John O’Sullivan — Wikipedia.

Take a Trek Around the World With F.A. Hayek from Vienna to London to Chicago to Every Corner of the Earht as Hayek & Liberty Circle the Globe

I’ve put together a video & link stuffed Prezi tour of the world of Friedrich Hayek and his ideas as the man and his work move across the globe.

Have fun with it here.

VIDEO — Angus Burgin on Hayek, Friedman, the Mont Pelerin Society & the Rise of ‘NeoLiberalism’

Find the video here.

Video — James Buchanan talks with Friedrich Hayek

Part I

Part II

Video — Armen Alchian talks with Friedrich Hayek

Part I

Part II

F. A. Hayek on economics & his personal history, an interview with Axel Leijonhufvud

Robert Bork & F. A. Hayek discuss the Courts, Public Opinion and Unlimited Democracy

Watch it here.

Robert Bork and F. A. Hayek discuss the Cognitive Limitations of Experts, Natural Scientists & Sociologists

Robert Bork has Died

From the Boston Globe obituary:  “Bork credited reading F. A. Hayek’s The Road to Serfdom & Whittaker Chambers’ Witness for having ‘destroyed my daydreams about socialism’.”

Jeffrey Sachs attacks Keynesian Policies, favors Hayekian Explanations

In the Financial Times:

“There are three more reasons to doubt the Keynesian view. First, the fiscal expansion has been mostly in the form of temporary tax cuts and transfer payments. Much of these were probably saved, not spent.

Second, the zero interest rate policy has a risk not acknowledged by the Fed: the creation of another bubble. The Fed has failed to appreciate that the 2008 bubble was partly caused by its own easy liquidity policies in the preceding six years. Friedrich Hayek was prescient: a surge of excessive liquidity can misdirect investments that lead to boom followed by bust.

Third, our real challenge was not a great depression, as the Keynesians argued, but deep structural change. Keynesians persuaded Washington it was stimulus or bust. This was questionable. There was indeed a brief depression risk in late 2008 and early 2009, but it resulted from the panic after the abrupt and maladroit closure of Lehman Brothers.

There is no going back to the pre-crisis economy, with or without stimulus. Unlike the Keynesian model that assumes a stable growth path hit by temporary shocks, our real challenge is that the growth path itself needs to be very different from even the recent past.”

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Random Quote

Man is as much a rule-following animal as a purpose-seeking one. — F. A. Hayek

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