Finance Archives - Catholic Social Thought

Home » Finance

Corruption, business and the care of creation

There is a wide variation in practice in relation to whether business enterprises respect the natural environment and human dignity as well as the rights of local communities. Best practice in environmental sustainability and the protection of the rights and dignity of local people can only be achieved if both governments and companies fulfil their proper functions and behave ethically. A typical situation here might be a mining or other industrial company choosing to operate in a poorer country.

Is it worth offsetting?

I wonder how many of us know what our carbon footprint actually is? The average for those of us in the UK is around 6.0 tonnes of greenhouse gases (GHG) each year (Our World in Data) For comparison, it’s 6.76 tonnes globally and 17.7 tonnes in the US and 9.8 in China.

The family – the basic building block of society (part one)

The family is a much-neglected topic in political discourse – even amongst Christian members of parliament. And, even where politicians are supportive of the family, they do not seem to be able to express an over-arching narrative that ensures that the family forms the focus for political decision-making.

Law, regulation and economic life – from “how much regulation?” to “who regulates?”

Catholic social teaching has a lot to say about the basic systems of law that should underlie a flourishing business economy. In recent years, Catholic social teaching has also commented on regulation. Although a distinction between law and regulation is not made explicitly in Catholic social teaching, such a distinction is helpful. It would help clear up confusion between the role of government in regulating economic life (where prudential judgement might be applied both in relation to who regulates and how much) and the role of government in providing the basic framework of governance.

Is it unethical to not support higher taxes?

Some would say that the National Insurance hike of 1.25% for each of employers and employees, Boris Johnson seems to have all but erased the (already thin-wearing) conservative ideology found within the Conservative party. However, there are some broader debates that we should be having that do not cross party lines.

No salvation in fiscal policy

Yesterday, I ended a presentation to sixth-formers by commenting that nobody would want to be Rishi Sunak. Of course, in the strict sense that is not true – indeed, many of the people to whom I was talking might well have had ambitions to be Chancellor of the Exchequer. What I meant was that the Chancellor was facing the most difficult combination of circumstances of anybody in his position since the mid-1970s.

Catholic teaching on usury and interest – continuity amidst change

Carlo Crivelli, Public domain, via Wikimedia Commons

Finance and banking are institutions heavily associated in most people’s minds with modernity and the development of modern economies. While there is a certain truth to that, in the sense that the scale and reach of such institutions accelerated in the nineteenth century, it disguises the fact that most of the tools, methods and institutions associated with modern finance attained their mature form in the Catholic world of mediaeval Europe.

Tax transparency: some moral and economic considerations

Price transparency and visibility are vital components of consumer protection in fair markets: laws and regulations protect consumers’ rights by requiring businesses to ensure their prices are visible and transparent. This is especially important when people purchase complex financial products. However, when it comes to tax, the term ‘tax transparency’ has come to signify exclusively the transparency of taxpayers’ financial affairs (referring to initiatives such as cross–national exchange of tax–related information by tax authorities), while transparency of the tax burden borne by individuals themselves receives little attention. Most people are not aware of the total amount of tax they pay and studies show that they under-estimate the amount of tax they pay substantially.

Are we finally waking up to the population implosion?

A recent report in the Lancet spelled out in detail the alarming fall in fertility across the world. Demographic car crashes happen in slow motion and it has been known for years that countries such as Japan, Germany and Italy are about to enter population free-fall.

Government debt – a vacuum in Catholic social thought?

The UK government has borrowed huge amounts of money to try to deal with the covid-19 crisis. Catholic social teaching and thought discusses the question of personal debt and poor-country government debt a great deal but, oddly, there is no systematic treatment of government debt more generally. Yet there are several ways in which government borrowing might be thought problematic. This post will deal with just one aspect of the problem – distributive justice.