View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Kent Academic Repository The Crisis of Global Capitalism The Crisis of GLOBAL CAPITALISM Pope Benedict XVI’s Social Encyclical and the Future of Political Economy EDITED BY A DR I A N PABST THE CRISIS OF GLOBAL CAPITALISM Pope Benedict XVI’s Social Encyclical and the Future of Political Economy Copyright © !"## Wipf and Stock Publishers. All rights reserved. Except for brief quotations in critical publications or reviews, no part of this book may be reproduced in any manner without prior written permission from the publisher. Write: Permissions, Wipf and Stock Publishers, #$$ W. %th Ave., Suite &, Eugene, OR $'("#. Cascade Books An Imprint of Wipf and Stock Publishers #$$ W. %th Ave., Suite & Eugene, OR $'("# www.wipfandstock.com )*+, #&: $'%-#--"%$$-&-%-" Cataloging-in-Publication data: .e crisis of global capitalism : Pope Benedict XVI’s social encyclical and the future of political economy / Edited by Adrian Pabst. xii + !'% p. ; !& cm. — Includes bibliographical references and index(es). )*+, #&: $'%-#--"%$$-&-%-" #. !. I. Pabst, Adrian. II. III. IV. /011 ,23+45 !"## Manufactured in the U.S.A. Contents Contributors vii Acknowledgments xi Introduction # PART I: Christianity and Capitalism ! A Real .ird Way / John Milbank !' " A Tale of a Duck-Billed Platypus Called Benedict and His Gold and Red Crayons / Tracey Rowland '# PART II: Christianity and Socialism # “We Communists of the Old School” / Eugene McCarraher %$ $ Beyond the Culture of Cutthroat Competition / Mark and Louise Zwick #!# PART III: Civil and Political Economy % Fraternity, Gi6, and Reciprocity in Caritas in Veritate / Stefano Zamagni #77 & .e Paradoxical Nature of the Good / Adrian Pabst #'& PART IV: Caritas in Veritate and Traditions of Christian Social Teaching ' .e Anthropological Unity of Caritas in Veritate / David L. Schindler !"$ vi Contents ( Integralism and Gi6 Exchange in the Anglican Social Tradition, or Avoiding Niebuhr in Ecclesiastical Drag / John Hughes !#$ PART V: Distributism and Alternative Economies ) Common Life / Jon Cruddas MP and Jonathan Rutherford !&' !* Equity and Equilibrium / John Médaille !77 Bibliography !-$ Contributors Jon Cruddas MP is Member of Parliament for Dagenham, London, UK. A member of Compass, he is a leading 8gure in the British Labour Party and a major voice on the political le6 in Europe. John Hughes is Chaplain of Jesus College, University of Cambridge, where he obtained his PhD in Philosophy of Religion in the Faculty of Divinity. He is the author of !e End of Work: !eological Critiques of Capitalism (!""') and numerous articles in international journals, including Modern !eology and New Blackfriars. Eugene McCarraher is Associate Professor of Humanities at Villanova University. His research is in the 8elds of cultural and intellectual his- tory, social and economic theory, and political theology. In addition to numerous articles and essays, he is the author of Christian Critics: Religion and the Impasse in Modern American Social !ought (!"""). Currently he is writing !e Enchantments of Mammon: Corporate Capitalism and the American Moral Imagination. John C. Médaille is Adjunct Instructor of theology at the University of Dallas, Texas. He is the author of !e Vocation of Business: Social Justice in the Marketplace (!""') and the editor of Economic Liberty: A Profound Romanian Renaissance (!""$). His latest book is Toward a Truly Free Market: A Distributist Perspective on the Role of Government, Taxes, Health Care, De"cits, and More (!"#"). John Milbank is Research Professor of Religion, Politics and Ethics at the University of Nottingham and Director of the Centre of .eology and Philosophy. One of the world’s leading theologians, he is the author vii viii Contributors of !eology and Social !eory (#$$"), A Word Made Strange ( #$$'), Truth in Aquinas (!""#, with Catherine Pickstock), Being Reconciled (!""&), !e Suspended Middle (!""7), !e Future of Love (!""%) and !e Monstrosity of Christ (with Slavoj Žižek, !""$). Together with Catherine Pickstock and Graham Ward, he is the co-editor of the Radical Orthodoxy volume (#$$$). He is currently completing Philosophy: A !eological Critique. Adrian Pabst is Lecturer in Politics at the University of Kent, Canterbury, UK, and a Visiting Professor at the Institut d’Études Politiques de Lille (Sciences Po), France. Previously, he held a Leverhulme Early Career Fellowship at the University of Nottingham where he is a member of the Centre of .eology and Philosophy. He has published numer- ous book chapters and articles in international journals, including Modern !eology, American Catholic Philosophical Quarterly, Telos, and New Blackfriars. His 8rst monograph, Metaphysics: !e Creation of Hierarchy, will be published by Eerdmans in late !"##/early !"#!. Currently, he is writing !e Politics of Paradox, a book on a new politi- cal economy a6er the demise of le6/right and state/market that have been dominant since the secular settlement of the French Revolution. Tracey Rowland is Associate Professor and Dean and Permanent Fellow of the John Paul II Institute, Melbourne, as well as a Fellow of the Centre of .eology and Philosophy in the University of Nottingham. She is the author of Culture and the !omist Tradition a#er Vatican II (!""&), Ratzinger’s Faith: !e !eology of Pope Benedict XVI (!""%) and Benedict XVI: A Guide for the Perplexed (!"#"). Jonathan Rutherford is Professor in Cultural Studies in the School of Arts and Education at Middlesex University, and editor of Soundings Journal (http://www.soundings.org.uk). His latest book is A#er Identity (!""'). He is chair of Compass’s Good Society working group and a frequent contributor to !e Guardian and !e New Statesman. David L. Schindler is Edouard Cardinal Gagnon Professor of Fundamental .eology at the Ponti8cal John Paul II Institute and the Catholic University of America, Washington D.C. One of North America’s leading Catholic theologians, he is the author of numerous books and articles. He is also the editor of Communio: International Catholic Review that was co-founded by Joseph Ratzinger. Contributors ix Stefano Zamagni is Professor of Economics at the University of Bologna and Vice director of the Johns Hopkins University SAIS Bologna Center where he is also Senior adjunct professor of International Economics. One of Europe’s leading political economists, he has published widely on capital theory, theory of consumer behavior, social choice theory, economic epistemology, ethics, economics, and civil economy. Among his most recent books are History of Economic !ought (co-written with E. Screpanti; Oxford University Press, !""7), Civil Economy (co- authored with L. Bruni, !""'), L’ economia del bene comune (!""'), Avarizia. La passione dell’avere (!""$), Cooperative Enterprise: facing the challenge of globalization (co-written with V. Zamagni; !"#") and Dizionario di Economia Civile (co-edited with L. Bruni, !"#"). He is a member of the Ponti8cal Council for Justice and Peace that advised Pope Benedict XVI on the encyclical Caritas in Veritate. Mark and Louise Zwick are the Editors of the Houston Catholic Worker and founder of Casa Juan Diego Houses of Hospitality for Immigrants and Refugees in Houston, Texas. .ey are the authors of !e Catholic Worker Movement: Intellectual and Spiritual Origins (!""7). Acknowledgments ;)* /<114/=)<, )* >05=1? based on a conference held at the Centre Tof .eology and Philosophy in the University of Nottingham on July $ and #", !""$. .e conference was the 8rst extended theological discussion in the UK of Pope Benedict XVI’s social encyclical Caritas in Veritate (published just two days before, on July ', !""$). With speak- ers and participants from around Europe and the U.S.A., the engaging debates on the signi8cance of the encyclical persuaded me to publish parts of the proceedings as a book. I am very grateful indeed to the speakers for making their papers available for publication. I would also like to thank those who did not participate in the conference for their contributions to this collection. I owe a special debt of gratitude to my colleagues at the Centre of .eology and Philosophy and the Department of .eology and Religious Studies at Nottingham for their support, in particular Professor John Milbank and Dr. Conor Cunningham. It is with immense appreciation that I would like to acknowledge the extensive 8nancial support by both institutions that made this event possible. Finally, I am most grateful to the publishers Wipf and Stock, in particular Charlie Collier for his immediate support and Diane Farley for her patience and assistance. July ', !"#", on the 8rst anniversary of the publication of Caritas in Veritate. A@5)0, P0+*= xi Introduction The Future of Political Economy Adrian Pabst “This Time Is Different”: Capitalism and Secular Modernity , 0 *4,*4, =;4 global recession of !""'–!"#" is just another remind- Ier that capitalist economies suAer periodic crises but that capitalism does not collapse under the weight of its own inner contradictions. Instead, it always reverts to the “normal” cycle of expansion, contrac- tion, and recovery. .is reversion is linked to over-accumulation and falling pro8t rates that prompt capital owners to cut the real wages of la- borers in order to generate new surplus value, as both Adam Smith and Karl Marx recognized.1 But whereas Smith evaded the issue of “primi- tive accumulation,” Marx followed Sir James Steuart in arguing that this is the condition