Understanding the roots of the economic crisis

There is news this morning that rather than awaiting recession, the countries of the developed world are already in recession. Fear is pervasive, as hopeful reports of expected recovery are continuously dashed. What sense are we to make of this crisis?

Bob Goudzwaard, CPJ member and friend, has a post on the Empire Remixed blog looking at the nature of this crisis and what it reveals.

“The essence of idolatry is that high expectations, together with fear, combine to narrow your consciousness merely to interaction with your “god”, while at the same time you delegate power and influence to your god, so that you allow it to take the lead. It then forges or inscribes within you patterns of obedience.

“Compare this with what has happened in recent years. Financial markets were given control over the real economy. At last, declared the President of the German Federal Bank, politicians have been brought under the control of the financial markets. Many countries, especially in the South, live in fear over what speculative capital flows might do to their economies.”

But the harmful practice of following a false god is not limited to those in control of our nations’ economies, Bob suggests: “Spiritually, potential real solutions both to today’s financial problems and to today’s environmental problems are deeply hampered by what we could describe as an entirely external or superficial understanding of happiness and well-being—as if more material prosperity, underlined by money, can give us all that we need.

This modern understanding suffers from a profound loss of shalom. More specifically, the materialization of happiness and the good life, promoted by huge advertising campaigns, is a sign of adoration or veneration. It is a sign of following a false shepherd and guide in pursuit of a seemingly new life.”

Bob’s insights are a timely reminder as we anticipate the G-20 meeting of world leaders this weekend. Solving the economic crisis (and environmental degradation and poverty) will require more than a little economic stimulus. It will require examination of our core values and our understanding of the economy.