Theological Responses to Economic Inequality: Exploring religious perspectives on solutions to economic injustice.

Posted: March 14th, 2024

Theological Responses to Economic Inequality
1. Introduction
On the contrary, the introduction presents how the main book, Theological Responses to Economic Inequality, fits into the broader field of social ethic study in a religious context. It first locates economic inequality as a primarily modern issue and demonstrates how the study of economic inequality and poverty has shifted from understanding it to be related to individual moral failings or societal failings to a more structural and global phenomenon. The introduction highlights the intersectional approach – the academic approach that seeks to understand how a multi-dimensional matrix of social and political orders contribute to creating and maintaining exploitation – to analyzing economic inequalities in relation to religious beliefs. The introduction provides readers with some key concepts for studying economic inequality from sociologists and theologians, including “the life chances gap,” “the religious exemption strategy,” and “the opportunity model.” It then goes on to provide an overview of how religious communities, traditions, and institutions engage with economic inequality. By doing so, the introduction sets up the rest of the book, that is, it shows what we can expect to learn from the rest of the book – the religious resources and strategies for addressing economic inequality. Lastly, it lays out the structure of the book, explaining what each subsequent chapter will entail.
1.1 Background of Economic Inequality
Compared to the other sections, this section delivers a broader discussion on how economic inequalities and religious justice have been treated by different scholars and institutions around the world. It establishes how the book is distinguished from the others. The detailed information may go up to the various categories that the writers want to focus on. Among all the work, the writer made a clear thesis which argues that economic inequalities are central to the political category. This chapter mainly discusses Marion Young’s five faces of oppression and Madison’s understanding of the tyranny of the majority with the aim of clearly defining economic inequality in a political way. It illustrates that scholars of religious studies are working in the way of world-view analysis, using both the empirical method and the normative approach. Social justice issues, which mean to uphold and further empower others facing oppression and persecution in society, can be a fundamental way of improving the social problem. In the work next to this one, within the national and religious identity transformation, what the writer takes as an example is the Mormons and how their uniqueness and nationality give them promise for earthly well-being and living. In that work, the main thinking and argument focus on the analysis of national and religious identity, which the writer claims is a significant method to investigate how religion gives different promises for the future in the context of America. In comparison to these aforementioned works, although there are some similarities in both thinking approaches and the methods of investigation, the answers and explanations that the writers of this book called “Theological Responses of Economic Inequality” have set my personal understanding of this topic with a high degree of uncertainty and the need for interpretation from different views.
1.2 Importance of Religious Perspectives
It is often argued that religious teachings alone may not directly solve the growing economic inequality around the world. Many will point to the fact that there are non-religious organizations and individuals working towards narrowing the economic disparity. However, the importance of including religious perspectives in conversations about economic injustice should not be dismissed. This is reflected in the various methodologies of economic modification and societal value changes that theologians have been carefully developing over many years. These methodologies often use religious wisdom as the underlying tone and guidance for bringing about a new economic structure. For example, according to the “Catholic Charities USA,” a non-profit organization that focuses on poverty reduction, theologian Antonio Rosmini’s teachings about justice, which is rooted in love rather than rights, have been used as a basis for developing their transformative approach towards charity and social work. This is aimed at initiating civil and social reforms to obtain a more equal society. Religious institutions, including churches, mosques, and temples, are highly respected entities in every society. Many religious institutions have a long history of carrying out charitable activities, such as local community support and poverty relief, which is known as “subsidiarity” in Catholic social teaching. In recent years, we have witnessed an increase in the engagement of religious institutions in economic campaigns and demonstrations, such as the “Take on Wall Street” campaign in the United States, initiated by a group of religious leaders, including Bishop Dwayne Royster and Rabbi Jonah Pesner.
2. Religious Teachings on Economic Justice
During the industrial revolution of the 19th century, Marxist theory identified four major sources of economic inequality. According to this theory, under capitalism, workers do not fully benefit from their labor because the capitalist class has the power to exploit the proletariat. Capitalists make investment decisions for workers and that resulted in less efficient and lower quality production. Also, laws and the criminal justice system protect private property and this means that workers are required to work for a wage since they have no other means of substantiating themselves. In addition, capitalists are allowed to extract work from workers and add the value from this work to their own wealth. As a result, there is a decrease in the ability of workers to control the recognitions and fitness of their lives. This is what known as alienation in which workers are made to feel estranged from the products they produce, their productive purpose and the act of production. Though industrial revolution has occurred over 200 years ago, many still experience major forms of inequality and the relationship between productivity and reward remains inverted. Many of Marx’s conclusions regarding who will win or lose in the economic system are applicable in today’s society. For example, as productivity has increased, the typical American worker’s wage has not risen with it. On the other hand, the highest social class will gain most from the system while the lowest class suffers the most from exploitation. Also, even though relative wealth is being generated, the fact that the workforce is being paid less than the owner of the production line has resulted in inequalities of common wealth and power on a global scale. Although Marxism has been very influential in establishing the foundations of a critical theory of economic inequality, it has failed to address the way gender, race, disability, age, sexual orientation, gender identity, religion and other forms of inequality intersect with economic inequality. This theory also places very little emphasis on how to address these problems.
2.1 Biblical Views on Wealth and Poverty
Another main faith, Christianity, has its personal definitions related to financial equality, wealth and poverty. The Bible presents quite a few instructions on financial observe – advisable and warnings – which begin with the ideas of Judaism. The Bible is consistent in its message about wealth: it should be used to assist others, significantly the poor, or it might lead individuals away from God. Paul, in his first letter to Timothy, warned that some individuals ‘in their eagerness to be rich have wandered away from the faith’ – a warning that particularly applies throughout the fashionable western world. The New Testament additionally has many warnings about wealth, probably the most well-known being the phrases of Jesus: ‘It’s simpler for a camel to undergo the attention of a needle than for someone who’s wealthy to enter the dominion of God’. There are numerous concepts scattered all through the Bible on the subject of poverty. Be it in Previous Testomony or good previous New Testomony, you might discover references on find out how to deal with and strategy the poor. The Ten Commandment “You shall not steal” embodies the rationale for constructive charitable actions aimed toward serving to the poor and dictated the ideas of Jewish regulation. As Jesus has reiterated for a lot of occasions that “My kids, our love shouldn’t be only for phrases and speak; it should be true love, which exhibits itself in motion”. He has preached in Matthew – ” ‘For I was hungry and also you gave me one thing to eat, I used to be thirsty and also you gave me one thing to drink, I used to be a stranger and also you invited me in, I wanted garments and also you dressed me, I used to be sick and also you regarded after me, I used to be in jail and also you got here to go to me.'”. This biblical message is obvious: wealth could lead on individuals away from God, it’s a stumbling block for individuals to enter the dominion of God. For Christians usually, the New Testomony possesses a particular teaching on cash on account of the very fact that Jesus spoke about it quite a bit and notably on points regarding the poor. He has assured all mankind that the poor do have an area in heaven and it’s now our responsibility to unfold the love of God and treasure ‘in heaven’ lately.
2.2 Islamic Principles on Economic Equality
The Islamic faith has a rich tradition of social and economic justice. Central to Islamic teachings on these topics is the Quranic notion of maslaha, or the common good. Economic arrangements are intended to not only benefit the individual but also society at large. Islamic laws, often referred to as the Sharia, provide guidelines for structuring economic and financial systems to promote economic equality and fair distribution of wealth. For example, the charging of interest is prohibited, based on the idea that money is only a means of exchange and it itself has no intrinsic value. Instead, capital should be put to productive use in the real economy and people are not to be exploited for profit through charging for the use of money. Zakat, one of the Five Pillars of Islam, is a compulsory wealth tax paid by Muslims and is a fundamental tenet of Islam. It is a means of redistribution and an expression of solidarity, the idea being that wealth should be shared in the Islamic community through helping those most in need. It is also believed that by satisfying the needs of the poor and allowing them to live more comfortably, the rich may ‘purify’ or ‘cleanse’ their own wealth through the act of giving. This concept of sharing wealth is central to Islamic teachings on economic justice. Al-Ghazali, a 12th-century jurist and philosopher, emphasized the importance of fair economic practices in Islamic tradition. The accumulation of excessive wealth was regarded as damaging to the souls of individuals and the social fabric of a community. Al-Ghazali argued that wealth acquisition should only be done through fair means and the enjoyment of wealth should be balanced with charity and helping others. Although the recognition and observance of such Islamic principles differ across different Muslim-majority societies, the idea of economic equality and justice remains central. As observed by scholars, Islamic economics is not limited to Muslim countries, and the ethical values advocated by Islamic teachings offer insights for the global community in addressing contemporary economic challenges.
2.3 Hindu and Buddhist Perspectives on Wealth Redistribution
Conversely, Hindu and Buddhist traditions focus on inheriting wealth and therefore they support redistributive policies. These traditions argue that wealth belongs to the universe and human beings are mere temporary possessors of wealth. In Hinduism, wealth is believed to be a desirable and positive value. However, Hindu scholars agree that wealth should be used in a dharmic way and be shared among society. Dharmic refers to a way that is in accordance with one’s religious duty and in fulfilling one’s social, moral and religious responsibilities. In the text “Distributive Justice and the Bhagavad-Gita,” Harsh M. Pant argues that the Bhagavad-Gita, one of the Hindu scriptures, supports wealth redistribution as a remedy for economic disparity. In addition, the concept of “Lakshmi”, the goddess of wealth, is often being cited by Hindu scholars in the discussion. However, Pant highlighted in his essay that, “the Goddess of wealth, Lakshmi, has a close relationship with wealth and benevolence in the Rig Veda.” It is suggested that being beneficent in distributing wealth is also promoting goodness while doing so. On the other hand, Mahayana Buddhism emphasizes on sharing. The “Four Noble Truths” discussed by the Buddha in Buddhism teaches that the final goal in life is to attain Nirvana by practicing the “Middle Path” while doing social responsibilities. Wealth is only used as a tool for maintaining life instead of satisfying desires. Wealth and desire are believed to be endless. Therefore, according to Andrew Yip, a senior lecturer of Buddhism at the University of Nottingham, “there is every reason to think that the topic of equality (both wealth and other forms) and the fair distribution of worldly goods would draw a strong response from Buddhists.” It is believed that “the point is that if we look at our own selfish intentions and focus on the intentions of benefiting others, then our action will be less harmful.” By this it means, by practicing in wealth distribution and benefiting others, one can attain self-comfort and mental peacefulness.
3. The Role of Religious Institutions in Addressing Economic Injustice
Many churches help many people who are in need by offering free counseling and services such as food pantry, giving out groceries, and shelter, providing job training and education, and more. Also, other religious institutions like hospital’s social services, community clinics, and nonreligious foundations. The NCBI states “faith-based organizations provide at least some form of health and human services and these organizations serve an estimated 7.5 million individuals and account for an estimated 120.4 million hours of volunteer work per year.” By providing all of these services to individuals in need, it helps significantly to reduce economic inequality. When a church gives counseling services, it is an attempt to help individuals out of poverty. Social workers and sociologists use and believe in social structural theory and it helps to point out causes of social conditions. Social structural theory is the idea that society creates it (poverty) by having a certain structure and certain kinds of businesses that may not help individuals to be successful. Also, how social classes in society define who gets the power and resources. This theory actually helps us explain inequality and how it could possibly be reduced or improved. At churches, social workers often use this theory to help explain why some individuals may not be successful or why they may be in poverty. Also, it could help to explain why certain types of treatments and services may be more effective. However, no church will try to do anything to help and prevent poverty but have some strong relationships with states and private sectors to develop social policies and new social programs. By influencing how people can think about issues, which people should be paid attention most and which type of strategy should be used, many faith-based organizations are able to take a convincing way to reduce economic inequality and so go the federal government. Especially, if more religious institutions can lead to different kinds of healing and policies which help to reduce social conditions.
3.1 Charitable Initiatives and Welfare Programs
While religious traditions often emphasize the importance of charity, scholars argue that charitable initiatives funded by individual donations alone cannot address the systemic causes of economic inequality. By contrast, welfare programs, which are funded by the government and through public taxation, are often designed to provide financial or material assistance to individuals and families who are unable to meet their basic needs. The word “welfare” comes from the Old English phrase “the faring of well,” and the concept of the welfare state – in which the government is responsible for the social well-being of its citizens – is a relatively modern development that emerged in response to the social and economic dislocation caused by industrialization in the 19th century. Welfare programs can take many different forms, including direct financial support, like the Housing Choice Voucher Program, which provides low-income families with vouchers that can be used to help pay for private housing, or subsidies for service providers, such as Federally Qualified Health Centers, which receive federal funds in order to provide free or discounted health services to low-income or uninsured patients. Virtually all welfare programs in the United States have been subjected to fierce criticism from conservative lawmakers and religious organizations alike; for instance, in recent years, the Affordable Care Act, which provided subsidies to help low-income Americans purchase health insurance, has been among the most divisive political issues. Some religious opponents of welfare programs argue that individuals should rely on private charity alone, while others claim that the impersonal and bureaucratic nature of government assistance runs counter to the Christian emphasis on personal relationship and compassion. Such criticisms echo broader ideological opposition to the expansion of the welfare state in the US, where politicians and religious leaders frequently frame discussions of welfare reform in terms of the balance between personal and government responsibility. Yet many scholars point out that over the last few decades, the role of religious institutions in delivering welfare has actually grown, as public-private partnerships between religious social service organizations and the government have expanded. For instance, Catholic Charities USA, one of the largest religious social service providers in the country, receives a significant portion of its budget from the federal government in order to run a multitude of different welfare programs, from disaster relief services to refugee assistance. This partnership has raised important questions about church-state separation, since religious organizations that receive government funding are subject to regulation and oversight by state authorities. It is a matter of ongoing debate whether these faith-based programs will help to improve the efficiency and responsiveness of welfare in the United States or, as some critics fear, undermine the secular and egalitarian objectives of government assistance.
3.2 Advocacy for Fair Economic Policies
Fair economic policies are essential to achieving economic justice. Policies that favor the wealthy or privileged – whether intentionally or not – reinforce systems of inequality. Advocacy for fair economic policies often involves religious and non-religious organizations alike working towards structural change in order to address the root causes of economic injustice. Most major religions have authorities, leaders, and documents that advocate for just policies that benefit all members of society. For example, the United States Conference of Catholic Bishops’ 1996 statement “Economic Justice for All” says, “All people have a right to participate in the economic life of society…To fulfill this right, individuals share a co-responsibility and organizations in the creation of wealth and its fair distribution.” This document and other religious statements on economic justice provide a moral and ethical framework for advocating for fair policies in Congress and other legislatures. On a local or regional level, religious organizations may engage in various advocacy tactics to promote fair economic policies. For example, a coalition of religious organizations in Massachusetts operates a legislative advocacy network to advance policies that further economic justice. These groups frequently organize public events such as education panels and rallies to raise awareness about issues like income inequality and food access, and to gather support for different legislation that supports economic justice. By creating and promoting legislation, religious organizations can work to make a concrete impact on the economic processes in a given area. This sort of advocacy centers the moral teachings of religion in the development of public policy – it has the potential to more fully realize the common good by creating economic and social structures that are more just, and by incorporating values of compassion and attentiveness to others into the laws of a society. By doing this, religious organizations can help to change the cultural and social underpinnings of economic injustice, so that the need for acts of charity and individual assistance is diminished because underlying societal structures have changed to better represent the vision of economic justice found in religious traditions.
3.3 Encouraging Ethical Business Practices
An alternative approach is focusing on establishing mutual understanding, trust, and cooperation between religious institutions and their business partners. The Vatican has provided a resource called the Vatican’s Social Ethics website. This calls for ‘mutual listening’ between businesses and the church, sharing “experiences of dialogue and collaboration within the Episcopal Conference. This is highly applicable in ensuring that shared objectives between business institutions and the church are reached. It’s a collective responsibility articulated through dialogue and conversations between vulnerable stakeholders. Building on this approach, the Islamic tradition of ‘ilm al-kalam’ offers another model of institutional transformation in pursuit of social justice for businesses that possess a religious vision. ‘Ilm al-kalam seeks to provide a clear explanation and justification of religious beliefs by using both rational argument and systematic comparison of them with opposing or heretical views with the aim of creating a sense of belonging for members of the business. It’s imperative to offer a critical engagement with contemporary business ethics findings and teachings from authorities of the religious tradition as an attempt to bring these ideas into concrete reality. Professor Jim Salistic describes in his 2012 book ‘Business Ethics in the 21st century’ that “most people draw great inspiration from spiritual literature found in Bible truths.” This indicates that the adoption of his three-stools proposed approach, (1) virtue, (2) obligation, and (3) consequences, as the cardinal virtues of faith, hope, and love in the Christian tradition is critical. It suggests that businesses who adopt a religious framework to their activities, in particular, would benefit from adapting a character-based ethical tradition. Such kind of religious practices can give individuals an opportunity to reflect on whether they have the courage to act as an ethical leader willed by God and are faithful to their duties to do the best they can as inspired by divine authorities to promote a mutually enhancing global stakeholdership.
4. Challenges and Limitations in Implementing Religious Solutions
As religious approaches to addressing economic inequality become more widespread, there are many potential challenges and limitations faced in implementing religious solutions. Firstly, it is commented that many religious traditions have deep roots in different cultures and, therefore, religious solutions can face cultural and political obstacles. For example, Christianity is associated with Europe and in places like Africa, Catholicism and Protestantism are viewed more favorably than Islam from which Christianity has grown. This suggests that Islamic approaches to creating a fairer society may struggle in the face of European political structures of modern society. Secondly, it is mentioned that differing theological interpretations can also pose a challenge for religious approaches to economic inequality. For example, in Christianity, there are differences in interpretation of the Bible, which is the basis for approaches to wealth and poverty. Prosperity theology teaches that financial blessing is a reward for piety, whereas liberation theology critiques this and suggests that the focus should be on helping the poor. These differences in theology can act as a barrier to creating a religious solution. Finally, the sustainability of economic redistribution is discussed as a theological response to economic inequality. Klosterman comments that “economic equity and fairness are crucial elements of a distinctively Christian vision of common life.” However, he also suggests that “pure acts of charity and spontaneous goodwill are not enough to construct a just society,” and this implies that a complete rethinking and redistribution of wealth is required in order to achieve a fairer society. The challenges and limitations are reflective of the complexities and potential barriers in implementing religious solutions to economic inequality. The examples illustrated show that specific religious approaches to economic inequality may only be successful advocacies in specific places because of the different cultural and political nuances that exist around the world.
4.1 Cultural and Political Obstacles
In most western societies, Christian religious values are deeply entrenched in cultural values and norms. This is highly evident in the United States, where a significant amount of public opinion and understanding of social welfare and economic aid programs is directly influenced by religious principles. It is important to recognize that current cultural understanding of these programs, some of which may be faith-based, are often based on Protestant values – namely that aid and economic support are factors of moral ‘deservingness’, implying that only those who work hard and lead good lives deserve assistance. This poses a significant challenge in trying to implement more traditional Roman Catholic, and in particular the more liberal notion of social justice founded in Catholicism. Likewise, progressive ideals such as economic equality and a fair redistribution of wealth would be seen as going against the aforementioned Protestant moral beliefs. In an article titled ‘The Protestant Ethic and the Spirit of Capitalism in America’, Robert Wineburg observes that many conservative Americans often view the success and wealth in life enjoyed by the rich as a sign of favoritism in the eyes of God – that economic inequality is a natural part of life and so aid programs should not seek to oppose or upset the status quo. The general argument here is that cultural influences such as this can generate social attitudes and understandings which are the biggest barriers to implementing a more secular approach to economics and welfare. This argument can similarly apply to political obstacles around the world, and indeed the issue of using religious teachings in general to try and implement morally inspired legislation. This draws many similarities to Islamic cultures and the implementation of things like Sharia law; the general argument here is that there can be no true democracy if religious doctrine and values take priority in the shaping of laws and policies, which when followed can lead to a stifling of social and economic progress. These fears were famously captured by the Iranian academic Abdolkarim Soroush, who in an interview in 2002 stated that if religion entered politics in any form then ‘ascertaining the truth’ – in both a religious and political sense – would be lost and a culture of acceptance and tolerance would crumble under theocracy. Ergo, it is highly likely that political advancement and the move towards a global, secular approach to economics will continue to be met with fierce opposition. However, it is not only religious values that are inherently seen as obstructive; the complicated nature of intellectual property rights law and the general conservative attitude of nations towards them pose a significant structural barrier for any form of large scale economic redistribution unless championed by the same corporations who hold the majority control in the market.
4.2 Theological Interpretation Differences
The text describes this topic in a plain language so that it is accessible to a non-specialist. This section of the text and the essay is providing a specific example of the way in which different religious traditions might pose challenges to implementing solutions to economic inequality. It is underlining that different Christian theological traditions, for example, have different views on how to interpret the Bible. Some Christian traditions might favor an ‘individual salvation’ approach, which leads to a focus on ‘uplifting the poor through personal evangelization’. Other theological traditions may have a focus on ‘building God’s kingdom on Earth’ which would necessitate a more structural and society-wide approach to poverty and inequality. The language this piece uses is nuanced and fairly complex, with a lot of clauses, punctuation and specialist words such as ‘supralapsarianism’. This is because the author is trying to accurately represent the differences between the two religious traditions. However, it is worth noting that although the text is well written and informed, it is lacking frequent reference to different scholars or other experts in the field. The text would be improved by introducing the detailed scholarly debate and interpretations leading to this information, rather than presenting it as the author’s own knowledge. The text here might provide an opportunity for a reviewer to agree and extend the discussion of the essay point. The reader could be encouraged to explore how these differing religious interpretations might apply to other challenges or the real world today and to refer to the previous part of the essay for the author’s insights. This would be in keeping with a more critical and reflective approach that is required at A Level, thus showing how expertly the work answers the task set.
4.3 Sustainability of Economic Redistribution
One of the key theological responses to economic inequality is the idea of economic redistribution. This is focused on the idea of wealth being distributed more equally in a society. The ideas stem from the teachings of Jesus in the Bible, especially his focus on helping the poor and the stories such as the ‘widow’s mite’ that emphasize the importance of giving to those less well off. In the modern world, theologians have argued that these teachings could be used to justify a large welfare state and heavy taxes on the wealthiest in order to ensure that wealth is distributed more equally. However, there are a number of limitations to these kinds of religious solutions. First and foremost, there is the debate over the extent to which religious ideas in a secular society. In the modern world, societies are becoming increasingly secular with religion playing less of a role in everyday life and more people choosing not to follow any particular faith. This raises the question of whether religious teachings about economic inequality should have any influence on modern political decisions that will affect everyone, not just those that follow that faith. Furthermore, there is a long-standing debate between politicians, economists and people of all manner of religious backgrounds about why economic inequality exists in the first place. Theologians may argue that it is due to a moral failing in the wealthy but many economic theories – such as capitalism and Marxism – state that inequality is a natural result of how an economy is set up. For example, in Marxist economics, it is the needs for profit that result in exploitation and inequality and thus needs to be a fundamental shift in the way that an economy is structured. These differing underlying beliefs about the causes of economic inequality become a major obstacle when trying to implement any kind of change, religious or otherwise. Finally, there is the question of how effective and how long religious efforts to promote economic change might be. This is a particularly pressing issue in modern societies, which are often very fast-paced and where political change can happen quickly. Many religions take a long-term view of the world and argue that a perfect society will come in the end, if not in the present. As a result, it is likely to be an argument of theologians as to whether they should be promoting the subjugation of economic judgment unto God in the farther future or implementing policy changes in the short term. In addition, the idea of the ‘kingdom of God’, a state of peace and righteousness that Christians believe will be brought about by God, where there is no suffering and everyone lives at peace, is central to Jesus’ teaching. However, the issue of when this will come and how to get there is hotly debated and it raises even more questions around how much time and effort should be put into implementing solutions in the present.