On September 15 there will be a seminar entitled Money, Money, Money – L-etikà u l-ekonomija. This is being organised by the Society of Christian Doctrine, generally known as MUSEUM.
There are a number of considerations I wish to make about this event.
The first is that it is indeed interesting that this organisation, which the Maltese have very often associated with lessons in catechism for children in preparation for the first Holy Communion and Confirmation, is organising such an event.
Over the years, thanks to the efforts of many and thanks to the position taken by successive popes in their encyclicals, the subject of the economy is no longer seen as a taboo within the structures of the Catholic Church.
The management of the economy for the common good; the need for a different international economic order that does not exclude anyone; the need to have clear and meaningful regulation for financial markets and the need to subject economic policymaking to the needs of society are all principles that have been put forward and discussed within the context of Catholic social teaching.
We have become accustomed to certain principles such as the need to satisfy the immediate need here and now, the implementation of more liberal policies, the pursuit of economic objectives at all costs
The marked distinctions between the traditional left and the traditional right on the subject of economic policies (especially on the issue of State ownership and the role of the State in the economy) have become blurred over the last couple of decades.
This has put the debate on economic policymaking on a different plane – the relationship between the economy and the society in which the economic operators function.
How does one reconcile financial sustainability and profit making with the needs of the society?
The development of the concept of the social market economy occurred to attempt to answer this question. And a definitive comprehensive answer is not yet available.
The second consideration is that this seminar is being organised within the context of a week of events linked to the theme Fast Forward, Pause, Play.
This theme reflects very much our life, especially our life within an economic context, that is our life the economic man (homo economicus).
In classical economic theory, the economic man is portrayed as being rational and motivated by meeting his objectives in the most optimal way possible.
This means that as consumers we seek to maximise our satisfaction (students of economics would call it utility) from the consumption of goods and services, while as producers we seek to maximise profits.
However, we know that man does not always act rationally and man does not always act in a manner that is blinded by self-interest.
This is why I have always believed that economic decision-making is not amoral. Hence there is the need to pause and reflect in this social environment that is constantly pushing us towards increasing our production and our spending.
This brings me to the third consideration – the need to analyse economic policies in terms of their impact and outcomes. It is not enough to state what the economic facts are, as it is equally important to consider the way matters ought to be.
For example, it is not enough to state that the gross domestic product of an economy has risen by X per cent.
One must also analyse what caused that growth and whether the factors causing that growth fit in with the values that we want to project in our society.
An example of this would be the impact of economic development on the environment. If the environment suffers as a result of economic development, we need to decide whether that economic development is justified.
We have become accustomed to certain principles such as the need to satisfy the immediate need here and now, the implementation of more liberal policies, the pursuit of economic objectives at all costs.
It is about time that we pause and reflect to ensure that we do not jeopardise the sustainability of the economy.