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The Merc, the monks, and the pursuit of excellence

Exploring the roots of the work ethic.

Rahil is a former Hindu monk, and author of Found By Love. He is a Tutor and Speaker at the Oxford Centre for Christian Apologetics.

A large sculpture of the Mercedes Benz three-point star stands in front of a large, low glass fronted showroom.
Mercedes Benz visitor centre, Sindelfingen.

I visited the Mercedes Benz factory in Sindelfingen, Germany, back in 1999.  It’s an event that etched a profound impression on my mind. I would even go as far as to say one of the most overpowering “Godly moments” of my life. Hold on! Before you shun me as a “materialist” or silently mutter “of course you love a Mercedes…you’re Indian!” Let me crawl out of your assumptions and rescue myself with an explanation. 

Entering the grounds of the Benz factory that cold October afternoon, my guide said that the car park alone was eight square miles of brand-new Benz’. “A robot takes each car from the factory to the car park” I was proudly told. “Germans usually don’t like any mileage on their new cars before they come to collect them, so we’ve made this arrangement to suit their needs.”  

“Of course you have,” I muttered cheekily whilst fumbling to hide my astonishment. “Is that a railway station?” I sounded like an eight-year-old who had just entered Disney World.  

“Yes, the cars are placed on the train by robots too! We send 1,860 cars via train to the river port city of Hamburg every day. From there they are then shipped to the rest of the world.”  

“Ah…,” I nodded pretentiously, as if this was something I frequently witnessed. I was in my late 20s and so trying to hide my feverish temperament was failing as each minute ticked by.  

Inside the factory the technology (even in those days) was out of a sci-fi film. A human-like robot calmly held the windscreen of an E-Class Mercedes whilst another robot released a gluey paste around the edges with precision and fluidity. It was like watching a heart surgeon operate on a human but only smoother. 

“The dashboard you see arriving on the belt above will be fitted into the main body here below within 30 seconds.”  

For a moment I thought my guide was joking with me, as back then I was a monk, dressed in orange robes and looking as if I might be resident in a cave somewhere in the Himalayas. But then I saw the robot in front of me pick up the dashboard at hand and fit it into the mainframe in 20 odd seconds! It was like a quiet day of strawberry picking on a farm for these machines.  

After being guided around the gargantuan and astounding array of technology, efficiency and elegance my guide introduced me to the General Manager. I shared my impressions with him with a tad of excitement after which he said, “thank you, yes…we tend to gather together every day for 30 minutes or so, after we close, to see where we can improve on all of this!” After that calm and casual response, I wasn’t sure whether I ought to be impressed with the staggering sophistication surrounding me…or his statement!  

Something significant happens in you when you are in the presence of excellence and those who are insistent to pursue it. 

There’s something annoyingly attractive about those who are persistent in their pursuit for excellence. It’s as if they are resiliently refining something at hand in the hope of fulfilling another deeper search in the human heart. For these enthusiasts for excellence, a beautiful Mercedes Benz is but a by-product. I’d like to say that it's the outworking of a deeper search.  

We are drawn to the beauty of detail. This impalpable gravitation can be attributed to the Divine, as many around the world do. With the precision and detail of that world around them making it possible. 

I once heard that a Book of wisdom in the Bible called Proverbs could be categorised into three parts: integrity, creativity and excellence. Although I wasn’t a follower of Jesus back in 1999, I can go back to that factory experience and call it a ‘Godly’ moment because something significant happens in you when you are in the presence of excellence and those who are insistent to pursue it.  

Luther’s understanding of the Bible and its implications on work ethic should not be underestimated. 

Nearly 350 miles north of the Mercedes factory lies the university city of Wittenberg. The home of another monk, Martin Luther, and Katherine Vona Bora, his wife – and an unexpected champion of excellence.  

After running away from her nunnery Katherine married Martin Luther and changed the work style and living standards of their lives almost immediately. Katherine had learned how to grow fruits and vegetables in the nunnery and applied this skill to the small piece of land surrounding their residence and turned it into a profit-making farm. The local Prince in Wittenberg witnessed her innovative skills and gave a small monastery for Luther and his wife to live in. Katherine used the profits of the first investment to invest in another farmland and produced profits once again- and this continued. By 1542 the Luther’s owned more land in Wittenberg than any other citizen! She had initiated such a change that sociologist Max Weber discussed it in his classic, The Protestant Ethic and the Spirit of Capitalism.

When Luther published Table Talks (based around the discussions in their home when students came to stay or visit), scholars understood clearly how his Biblical exposition (and the indirect defence of his wife’s economic model) created Europe’s spirit of free enterprise.  

Katherine’s work ethic was influenced by St. Benedict’s monastic biblical tradition which St Paul had also taught (whoever does not work, shall not eat). A bit like the General Manager at Mercedes Benz who felt that there was still room for improvement in work.  

Luther’s understanding of the Bible and its implications on work ethic should not be underestimated.  He states that a skilled mechanic “steals' ' when he underperforms at his work for which he is being paid! Not giving your best at something is also called “stealing.” Luther also writes that those who are lazy at work or unfaithful with their work are “worse than sneak- thieves.”  

One can argue that Katherine and Luther’s understanding of work ethics from the Bible gave rise to the enthusiasm for excellence across many spheres of western culture and industry.  

For me, it’s still a chuckling moment to see the often but obvious impression upon the face of a fellow Indian when they read a label marked, ‘Made in Germany.' It says something… let me just say, with all due respect that it doesn't say the same as “Made in India.” At this point in world history my fellow friends in India would agree.  

 I have known many Indians who would buy a Mercedes Benz however old or broken down it may be. On the other hand, in 2023 the German manufacturer broke all its sales records in India, growing 10 per cent year on year. (Mind you, some Benz models in India are twice the cost as those in the USA or UK)!  

So, is it just status? Or Class? No. There may be an element of wealth display, but the deeper desire is the association with excellence, hard work and efficiency. All of which Luther drew from his own Biblical comprehension as well as his creative wife Katherine Von Bora. 

Hindu Monks are not drawn into a far-off corner of Germany to see a luxury car being made. They are drawn (unknowingly) by those of us who are pursuing excellence, elegance and efficiency all of which are tied richly in the wisdom of the Bible.  

Yes, I know what you might be thinking and yes, I have visited other luxury car factories. Aston Martin is a case in point. But on returning to my fellow folk thereafter in 1999 I was surrounded by monks whose faces were struck with awe and wonder and they asked,” did you really go? How was it?” That’s the exclusive magic of Mercedes Benz. Or should I say, Martin Luther and Katherine. And how they understood the Bible.

Explainer
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Economics
6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?
a pile of coins.
Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.  

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled. 

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.  

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue. 

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society? 

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play. 

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.  

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.  

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle. 

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here? 

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions. 

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans. 

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God. 

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system. 

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one. 

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society. 

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets. 

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.” 

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”. 

Nevertheless, he believes taxation can be used in this area to help level the playing field. 

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive). 

“You want to disincentivise the way the housing market is used for speculation,” he said. 

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.” 

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds. 

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.  

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives? 

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.  

But he adds an important caveat: “the playing field is not level. 

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.” 

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.