19 Stiglitz considers a CEO who earns a not-unusual
salary of $21.7 million per year. Even if that CEO is indulgent, it will be a challenge to spend all of that $21.7 million in a year (I know, “let me try,” you say). But take that same amount divided among 500 people in jobs pay- ing $43,400 apiece and almost all of the money gets spent. “Te relationship is straightforward and ironclad,”
Stiglitz concludes, “as more money becomes concen- trated at the top, aggregate demand goes into a decline.” Tat means businesses close, jobs end, people suffer. A third mark of the new inequality is “financializa-
tion.” Tis refers to making money from money—by banks and traders, more than by traditional means of agriculture, manufacturing or other industries. Tis lack of diversification produces volatility. As in biologi- cal systems, diverse economic systems can adjust to changing circumstances. Monocultures are prone to disruption.
What can Lutherans do? So we live amid a new kind of empire, with new inequality that impedes peoples’ potential. How— without being alarmed because we are saved by grace through faith and without creating scapegoats of the wealthy, some of whom do much good with their resources—can Lutherans respond? Historically, many Lutherans have been frugal.
Consequently some might favor calls for “austerity” and “shared sacrifice” as ways to end inequality. But these are reactions that have largely failed where tried. Because austerity programs require all to “sacrifice” (note well the religious language), they tend to blame and disproportionately harm those with the least. Who benefits? You guessed it. So again, what can Lutherans do? Here our history
is helpful. Since coming to America, Lutherans have responded to social problems constructively and cre- atively in at least two ways. Te first is advocacy: orga- nizing and arguing for a cause. Automobile union leader Walter Reuther, for instance, was a dedicated Lutheran. Te second is by organizing in social ministries, such
as Lutheran World Relief, Lutheran Immigration and Refugee Service and the network of agencies that part- ner as Lutheran Services in America. Tese institutions are leaders in a growing global movement called “social enterprise” or “social business.” Social entrepreneurs bring the energies of business
organization to solve social problems. Among early social entrepreneurs were the first Lutheran deacon- esses in America who staffed, built and ran orphanages,
20
www.thelutheran.org
settlement houses, senior centers and hospitals that are now in many cases multimillion dollar enterprises. Today, in advocacy, our Lutheran congregations, syn-
ods, seminaries, universities, colleges and other groups can promote our 1999 social statement on economic life, “Sufficient, Sustainable Livelihood for All” (www.
elca.org/socialstatements). Tat document rightly claims that “greed, gross economic disparities and the degradation of nature are incompatible with [the] reign of God.” Piketty contends provocatively that a wealth tax
(requiring the rich to pay back a share to support the common good), is necessary to remedy injustice. Tis is a common practice around the world and used to be in the U.S. Such a fair tax structure led to the most prosperous decades in American history. Regarding social ministries, a caricature of Lutherans
depicts us as “quietist,” as complacent under authority. But in America that simply isn’t true. Social engagement has been part and parcel of being Lutheran in Amer- ica—not out of fear for salvation but as a response to God’s grace. We know social enterprise works. Smart businesses
can solve social problems with spiritual integrity. Nobel laureate Mohammed Yunus has shown how microfi- nance can boost livelihoods for the world’s poorest. A $100 loan in Pakistan can help a young woman start a business and find a permanent way out of poverty. Closer to home, Habitat for Humanity has demon-
strated how to build simple, decent homes in partner- ship with the working poor. Families formerly living in shacks or slum apartments contribute “sweat equity,” and then bankers, real estate agents, contractors and volunteers from churches and other organizations build and sell homes whose proceeds go into a “fund for humanity” to build more homes. It’s the pyramid scheme put to spiritual purposes! Similarly focused and creative social enterprises
can be developed or strengthened to address disease, hunger, education, disasters, environmental damage and more. Te new inequality developed over 50 years. It may
take another life- time, as part of all of our vocations, to revive the vision of “justice for all.” But that is no reason not to get started.
Author bio: Pahl is the Peter Paul and Elizabeth Hagan Professor of History at The Lutheran Theological Seminary at Philadelphia.
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