Written by: gfesadmin on January 31, 2013

Every year the World Economic Forum (WEF) meets in Davos Switzerland to discuss the global economy and business. This year’s theme was “Dynamism and Resilience” and they sought to listen to young business entrepreneurs, the future of the world economy. But it’s last year’s theme that I find more interesting, particularly in view of this week’s reading assignment, “The Great Transformation” by Karl Polanyi. Last year’s World Economic Forum was interestingly enough also entitled, “The Great Transformation,” though I’m sure Polanyi would be turning over in his grave if he knew.

Last year’s WEF met with more economic uncertainty than this year, but it doesn’t seem like much has changed from when Polanyi was writing.  He asserts that capitalism in its unalloyed form isn’t sustainable. Certainly the global economic climate of the past four years proves that.  Corrupt banking and business practices that sought profit with a ‘by any means necessary’ attitude, by many accounts, started the recession. Why is capitalism in its essence not sustainable? I’m sure there are all kinds of financial answers, but the theological ones are what I’m concerned with. My primary answer: we have a sin problem. We’re great at self-deception. We’re selfish even at our best moments and many of our motives are in question. What are some of the results of this sin?

–       Income inequality: The US fast food industry. Bloomberg News has a great article on how the CEO of McDonalds made $8.75 million last year while their  ‘burger flippers’ made $8.25 per hour. To add insult to injury, McDonalds lobbies against the minimum wage and seeks to squash any attempt for employees to unionize. http://www.bloomberg.com/news/2012-12-12/mcdonald-s-8-25-man-and-8-75-million-ceo-shows-pay-gap.html

–       Taxes: The rich are able to avoid taxes using loopholes and other tax strategies. Another article: http://www.businessweek.com/magazine/content/11_16/b4224045265660.htm?chan=magazine+channel_11_16+-+how+to+pay+no+taxes_11_16+-+how+to+pay+no+taxes

–       Profiting off misery: The Economist has a good article (http://www.economist.com/node/21551498) about how difficult it can be for large companies to ensure that those making their products are well treated. 

–       Environmental destruction: three words: BP Oil Spill.

If it seems like I’m ranting against capitalism, I’m not. It just might be the best of the worst. My point is that free-market capitalism isn’t Jesus.  It’s corrupt and seedy because we’re corrupt and seedy. It seeks to maximize profit because we seek to maximize profit. The free market, sadly, is a reflection of us.

But what are we to do? What’s the solution? I think the answer probably lies in the title of Polanyi’s book, the Great Transformation. Beyond needing a “great transformation” of our financial system, we need a “great transformation’ of ourselves so that we become the people who are equally as concerned with the well being of others as ourselves.  

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