Home
/
RELIGION & LIBERTY ONLINE
/
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Jan 9, 2026 11:02 AM

Sojourners’ Jim Wallis has been at the Davos gathering in Switzerland and is urging us to be guided by a new Davos “covenant.” If you’ve never heard of Davos, Michael Miller’s RealClear Politics piece “Davos Capitalism” describes the gathering and its unassailable hubris this way:

Davos capitalism, a managerial capitalism run by an enlightened elite–politicians, business leaders, technology gurus, bureaucrats, academics, and celebrities–all gathered together trying to make the economic world smarter or more humane…. And we looked up to Davos Man. Who wouldn’t be impressed by the gatherings at the annual meeting of the World Economic Forum at Davos, a Swiss ski resort? Sharply dressed, eloquent, rich, famous, Republican, Democrat, Tory, Labour, Conservative, Socialist, highly connected, powerful and ever so bright.

Then, when the whole managerial economy collapsed, the managers and technocrats lost faith in markets. But they did not lose faith in themselves, and now they want us to entrust even more of the economy to them.

As if on cue, Jim Wallis writes in a recent public letter:

This week at the World Economic Forum in Davos, Switzerland, we are looking to the future and asking “what now?” At a Saturday session — “The Moral Economy: From Social Contract to Social Covenant” — a document will kick off a year-long global conversation about a new “social covenant” between citizens, governments, and businesses.

Why dispense with the yeomen-like “contract” language in favor of a new “social covenant”? Wallis explains that “in the past 20 years, the world has witnessed the death of social contracts. We have seen a massive breakdown in trust between citizens, their economies, and their governments…. Former assumptions and shared notions about fairness, agreements, reciprocity, mutual benefits, social values, and expected futures have all but disappeared. The collapse of financial systems and the resulting economic crisis not only have caused instability, insecurity, and human pain; they have also generated a growing disbelief and fundamental distrust in the way things operate and how decisions are made.”

Greed and unscrupulousness was part of the mix, of course, but we’ve had these in the mix ever since Adam and Eve took the bite from the forbidden fruit. What we got more and more of in the past few decades is the kind of big, top-down Davos planning that helped precipitate the economic crisis.

During that period, European governments promised ever more lavish union wages, pensions and fringe benefits until many Euro-zone economies began collapsing under the sheer, unsupportable weight of it all.

Meanwhile, in the United States, Washington policy makers were pursuing top-down and Keynesian schemes to spread home ownership to more and more American citizens through bination of government interest-rate manipulation and policies that coerced panies to issue home loans to people with terrible credit records. Together, these policies fueled a housing bubble as people rushed to get loans for homes they couldn’t afford in a “sure fire” housing economy fueled by artificially cheap credit and artificially cheap access to that credit. When the bubble generated by these Davos-style schemes finally burst (as economic bubbles inevitably do), the Davos crowd rushed to blame the free market and now are talking about the need for a new social covenant, which is mostly just more of the same top-down, redistributive “social justice” that hurried us into the present fix.

Certainly there were rich capitalists who behaved badly in the run-up to the economic crisis, and many of them were at meetings like the Davos Forum making sure they were plugged into all of the latest big-government crony capitalist schemes. This “new social covenant” makes an admirable call for greater virtue in public life, but it overlooks the fact that as governments gain greater and greater power to control and regulate the economy–to pick winners and losers–the more fuel there is for corruption as politicians and corporations find all kinds of new opportunities for trading favors.

The Davos statement begins with language it would be difficult for any reasonable person to argue with: “The dignity of the human person,” the mon good,” a “need for stewardship,” a due regard “not just for ourselves, but for posterity.” But when you scratch the surface, you find more of the same calls for top-down, big government redistribution and economic planning.

As a Christian, I find covenant language genuinely appealing. But talking about covenants, dignity, stewardship, mon good and posterity while peddling more of the same centralized, bureaucratic, government-corporate partnerships that led to the mess in the first place is only a recipe for a bigger political and economic mon bad, if you will.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The downside of paid family leave: Denmark
As Republicans unveil plans pulsory paid family leave, they would be well instructed to see how such policies have hurt women’s employment prospects. In Europe, where paid leave is pulsory, women face fewer prospects for advancement than in the United States. Veronique de Rugy, a senior fellow at the Mercatus Center at George Mason University, writes about the example of Denmark in The American Spectator. De Rugy, who took part in the first transatlantic “Reclaiming the West” conference in London...
The seven moral rules of cooperation that unite humanity
In his letter to the Romans, the Apostle Paul affirms that Gentiles have the law “written on their hearts” (Romans 2:15). Since then there has been a constant debate about what constitutes the natural law (i.e., a body of unchanging moral principles regarded as a basis for all human conduct) or whether it even exists. A new study finds confirmation for the natural law and identifies seven of these laws that are related to cooperation. Oxford University researcher Oliver Scott...
Alejandro Chafuen in Forbes: Aquinas and Bitcoin
Yesterday in Forbes, Alejandro Chafuen, Acton’s Managing Director, International, analyzed moral questions of cryptocurrency in light of St. Thomas Aquinas’s Summa theologiae. It is an application of centuries-old thought to a very recent phenomenon—but of course, as the article seeks to show, moral considerations are perennial even as their particular objects change. What would Thomas Aquinas have thought of cryptocurrency? Our answer may be a conjecture, but if we look at Aquinas’s body of work our conjecture can be well-informed....
Unemployment as economic-spiritual indicator — March 2019 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight thelatest numberswe need to know...
Review: Light-Horse Harry Lee, the Revolutionary hero and his reckless downfall
Henry Lee III, besides being the father of Confederate General Robert E. Lee, may be best known for his masterful eulogy of George Washington. “To the memory of the Man, first in war, first in peace, and first in the hearts of his countrymen,” was Lee’s most memorable line about the first American president. In “Light-Horse Harry Lee,”(Regnery History, 434 pages, $29.99), historian Ryan Cole offers up prehensive portrait of the oft-forgotten Lee whose rapid rise as a brilliant military...
Beto O’Rourke’s markets and morality mismatch
Former Texas congressman Beto O’Rourke, who famously lost a senate bid against Ted Cruz (R-TX) in the 2018 election, is currently one of the front-runners in the Democratic presidential primary race. He has polled as high as 12% and as low as 5% in recent polls. He raised $6.1 million in his first 24 hours after announcing his candidacy, and a total of $9.4 million in the first 18 days. I have to admit, I don’t get O’Rourke’s appeal. South...
Christians shouldn’t be surprised to find capitalism infected by cronyism
When anyone criticizes socialism by pointing out the failures of socialist countries like Cuba or Venezuela, its defenders claim, “That’s authoritarian socialism, that’s not the type of socialism we support.” We defenders of free enterprise mock this shift, but don’t we do something similar? When anyone criticizes capitalism, don’t we say, “That’s crony capitalism, that’s not the type of capitalism we support”? Can the two really be separated? As political scientists Michael C. Munger and Mario Villarreal-Diaz write in their...
Ocasio-Cortez’s croissant and the value of labor
I recently participated in a student seminar at a large state university. We were discussing readings by Adam Smith, John Locke, Jean-Jacques Rousseau, and others. One student appeared to have a fairly strong attachment to Marxist and socialist ideas. I found myself grateful to him because his participation vastly improved the conversation. At one point, he ventured a critique about the different amounts of money people receive as pay for their work. “What one human being can do is not...
Chick-fil-A barred from airport
Sean Ryan, a Buffalo, New York Assemblyman, wants to control what you eat. Last week, the Buffalo-Niagara International Airport nixed plans to open a Chick-fil-A after Assemblyman Ryan took to Twitter to call out the Niagara Frontier Transportation Authority (NFTA) for allowing this “discriminatory” corporation to open inside the “taxpayer-funded public facility.” It took just one-day for the NFTA to respond, saying that they would, in fact, scrap plans to bring Chick-fil-A to the airport. NFTA cited Chick-fil-A’s past funding...
The reason women don’t enter STEM professions revealed
Conventional wisdom believes three things: Women areunderrepresentedin science, technology, engineering, and mathematics (STEM); this is largely due to sexual discrimination; and the government must redress this imbalance. But multiple studies have discovered a much different reason behind the STEM gender gap. Most media and mentary accepts the theory of “disparate impact”: Any statistical inequality isipso facto“proof” of discrimination. When activistscallthis “one of the most important issues of our time,” opinion-makers nod in agreement. The United Nations General Assembly has passed...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved