August 20, 2014

WCC’s ‘Homespun’ Economic Fallacy

The World Council of Churches, which claims to speak for most Orthodox Churches around the globe, has formulated a number of proposals to reform the global financial system because of its inherent "injustice." General Secretary Samuel Kobia sees the need for new transnational financial watchdog organizations that will "qualitatively regulate the growth in massive movements in capital." The problem here is that Kobia fails to understand that a global economy requires an international flow of capital -- along with an international flow of goods and services and, very often, labor (indeed immigrant labor). In cataloging a long list of ills flowing from the current economic crisis, and the "neoliberal economic myth" of efficient markets, Kobia neglects to mention -- or fails to see -- how markets work to create wealth, economic growth and jobs. These are not things created by, as he would have it, "democratizing all global finance and trade institutions" across international boundaries. … [Read more...]