Beyond wealth and wellbeing: how nations flourish

As GDP data is increasingly scrutinised, Ryan Gilfeather asks how to measure the true health and wealth of a nation.

Ryan Gilfeather

Ryan Gilfeather explores social issues through the lens of philosophy, theology, and history. He is a Research Associate at the Joseph Centre for Dignified Work.

Two women sit behind a press conference desk against a backdrop, one listens as the other speaks and gestures.

A recent International Monetary Fund press conference on the world economic outlook.

IMF.

Discussions of GDP loom large in our current age. As we live under the shadow of the threat of a recession in the UK, ministers and commentators anxiously follow our country’s Gross Domestic Product, to see whether we are on the right track. Measuring the total value of goods and services produced in a country, this figure is a litmus test for the health of an economy. Crucially, many policymakers and leaders in government believe this figure reveals the health of a nation.

As we will see, not all agree. Opponents rightly highlight that an increase in GDP does not necessarily mean that ordinary citizens live better lives. There are good reasons to share this opposition from a Christian perspective. However, ultimately, the Christian tradition highlights a very different way to measure the health of a society.

In 2020 The Carnegie UK Trust, a think tank campaigning for greater welfare for all, published a new measure for social progress: GDWe (Gross Domestic Wellbeing). In brief, they gathered and processed ONS (Office for National Statistics) data on a variety of domains in life, giving them a single figure on a 10-point scale to rate well-being. These domains included personal well-being, relationships, health, vocational activities, living environments, personal finances, the economy, education and skills, governance, and the environment. When they plotted GDP against GDWe from 2013-9, they revealed that the two do not always line up. As GDP steadily increased from 2016, overall welfare in society dipped. From 2013-9 GDP increased by 10.34 per cent and GDWe only 5.19 per cent. Hence, measuring GDP does not necessarily reveal whether life is getting better for ordinary.

Economic resources are not useless... However, they are not sufficient unto themselves for us to live full and good lives.

This attempt to shift the conversation about social progress from predominantly centring GDP is commendable. The Bible does not legislate on whether to use GDP or GDWe. However, scriptures within it repeatedly decouple economic wealth from flourishing. For example, in the gospel of Matthew, Jesus says the following:

Do not store up for yourselves treasures on earth, where moth and rust consume and where thieves break in and steal, but store up for yourselves treasures in heaven, where neither moth nor rust consumes and where thieves do not break in and steal. For where your treasure is, there your heart will be also.

In life, we can either focus our efforts on attaining wealth or fostering our relationship with God. Only the latter will lead us to flourish. Economic resources are not useless; they are necessary for us to thrive in certain conditions. However, they are not sufficient unto themselves for us to live full and good lives. Furthermore, when wealth becomes the focus of our hearts and minds, our lives will be hollow and fractured. GDWe is a good measure, insofar as it acknowledges that economic flourishing is not the same as a good quality of life, and it attempts to shed light on the latter. However, the Christian tradition highlights a different framework altogether to grasp the health of a society.

Gregory of Nyssa, a fourth-century theologian and bishop, frames wellbeing as a human being reflecting the image of God to the greatest of their ability. The book of Genesis says that God made us all in His image. Gregory argues that this means that we can become like God in certain ways. God is the fullness of all good things, such as love, justice, peace, joy, and courage. Consequently, Gregory argues that when we act in good ways, we begin to share those characteristics, which in turn leads us to act well in the future. For example, if I defend someone who is under attack, I will become more courageous, and more likely to repeat the same action in the future. The more we reflect the image of God, by acting well and taking on His characteristics, the more we will flourish as individuals. In this vision of human flourishing, Gregory brings together an Aristotelian account of virtue, with a Christian understanding of people as the image of God.

This framework for the well-being of an individual also provides a good barometer for the health of a society. All of these actions and characteristics are building blocks for a healthy society. So long as we have a good sense of how to act appropriately with love, justice, peace, joy and courage, then our actions will build up our common life together. They benefit all, rather than one. They are not zero-sum actions. Accordingly, a society made up of individuals who are acting well and reflecting the image of God would be very healthy indeed.

As a measure of a society, we should ask whether it leads citizens away from virtuous actions and characteristics. For example, between 2019 and 2021, gun murders in the USA rose by 45%. Earlier this year, journalist John Burn-Murdoch argued this rise is partly due to decaying public trust in that country. This tells us that a culture marked by fear of others can lead some of its citizens to commit terrible actions and live lives full of violence. GDP may rise during this time, as may other markers of welfare. However, to see the whole picture we need also consider how societal forces are leading citizens away from flourishing in their reflection of the image of God. Then, we should go about addressing these malignant forces.

In times of adversity... individuals in societies marked by high levels of trust are more satisfied with their lives and act more benevolently.

At the same time, we should also consider how a society enables its citizens to reflect the image of God. Societies with high levels of social trust create space for a variety of positive actions and characteristics. The World Happiness Report studies people’s sense of life satisfaction worldwide. It routinely finds that in times of adversity, like the Great Recession in 2008 or the COVID pandemic, individuals in societies marked by high levels of trust are more satisfied with their lives and act more benevolently than others. Again, these social forces are not the same as GDP, yet they have a significant ability to shape the extent to which citizens can reflect the image of God, and thereby flourish.

In my work for the Joseph Centre for Dignified Work, I am particularly concerned with low-wage workers’ pay and conditions. As I have argued elsewhere, low pay leads to some workers needing to take on two or more jobs. They, consequently, have no time to see their children, nourish their faith, or participate in community institutions. It is clear, therefore, that the widespread pattern of paying below the Real Living Wage (£11.94 p/h in London, £10.90 elsewhere), hinders people in their expression of love for God, family and neighbour. Pay and conditions are but one further example, amongst many, of how societal forces can hinder or help our flourishing in the reflection of the image of God.

Needless to say, GDP and GDWe are still useful and necessary tools. However, they do not tell the full story. GDP only describes the progress of the economy as a whole, and GDWe can only describe the quality of an average person’s life. In contrast, when we set a goal that each citizen should reflect the image of God, we can begin to explore how societal forces enable or squeeze out this aim. With this greater knowledge in mind, we can strive for progress in our nation by fostering good structures and stamping out bad ones, so that all may reflect the image of God to the greatest of their ability.

Article

Comment

Economics

Morality

Politics

27 September 2024

4 min read

The Conservative Party needs a moral reset

A party member recalls that Adam Smith was a moral philosopher as well as an economist.

Jean Kabasomi

Jean Kabasomi works in financial services in London. She also writes and broadcasts.

A statue of a Georgian man looks to the left.

Adam Smith, looking right to left.

Glasgow University.

The election of a new government in the United Kingdom has felt like an opportunity to fix some of the daily challenges faced by the people of these isles. As a member of the Conservative Party, it also presents the chance for those of us who are Conservatives to take stock of what it means to be conservative and how best that definition can serve the people of the UK in a way that benefits the whole and not just specific parts.

Those who follow the internal machinations of the Conservative Party will know that the battle for a new leader has already begun. For the most part, it has focused on whether the Party needs to move to the right to combat the offering by the new kids on the block – Reform, or to the centre in order to block the leaking Shire vote that shifted to the Liberal Democrats. I want to propose a different approach.

For years as I was growing up, probably influenced by the media and how it presents politics, I assumed that the idea of a minimum wage was a socialist idea or what we might today describe as progressive politics. Things changed, when I studied the history and influence of Christian thought on Western economics, as part of a Masters in Biblical Studies at the University of Edinburgh.

Adam Smith is the father of modern capitalism and hero to many conservatives. His foundational text, The Wealth of Nations, was on the reading list. Prior to these studies, I had heard and seen many conservative commentators use that text to support their claims around small government. I had also seen liberal commentators vilify his work for being the source of our broken Western systems. Many claimed that it was the basis for the economic thought and principles of Hayek and Friedman, the prominent economists who influenced the policies of the Thatcher government in the UK and the Reagan government in the US.

It tells us that our dogmatic positions should not prevent us from focusing on what is in the best interest of the people that politics and economics are supposed to serve.

When I read The Wealth of Nations for myself, I was shocked. I couldn’t believe how much of what he had actually said was ignored or had been misrepresented. Reading it for myself changed my assumptions and my learned narrative on capitalism. One of my greatest surprises was that Smith held what I had known to be a socialist policy, the idea of a minimum wage. To him it was such a fundamental truth that it was only briefly mentioned. Perhaps, that’s the reason so many people miss it.

Another shock was discovering that Adam Smith wrote about the place of government in regulating large corporations. For Smith, the wealth of large corporations was to be invested back into the areas from which the company was built. Jobs were to be kept local so that as many people as possible in society benefited from the wealth generated. Smith outlined that government regulation should prevent large corporations from moving their manufacturing operations to cheaper international locations to reduce costs and sidestep local communities.

Adam Smith, the father of capitalism – a protectionist and believer in the rights of workers! But what has this got to do with a discussion about the Conservative Party? It tells us that policies that do not always favour corporations but help workers or local communities are not unnecessarily anti-capitalist and by extension unconservative. It also tells us that our dogmatic positions should not prevent us from focusing on what is in the best interest of the people that politics and economics are supposed to serve.

My party needs to move away from policies that are focused on ideological battles and economics rooted in abstract ideals. And, instead, look to policies that will tangibly help everyday people. Or put differently, the party needs to move away from Oxford Union politics (I have nothing against the Union, I am a lifelong member!) and focus on real-world grown-up politics that improve the lives of the ‘many not the few’!

Lord Cameron tried to move the party to a position often dubbed Compassionate Conservativism. In fact, the origins of capitalism have long been connected to moral principles. Adam Smith not only wrote The Wealth of Nations but also considered issues around morality in his The Theory of Moral Sentiments. For a government to govern effectively and an opposition to oppose properly, morality and the interests of the many must be reflected in policy. And in my humble opinion, it is not unconservative to do so.