Home
/
RELIGION & LIBERTY ONLINE
/
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Jim Wallis, Davos Capitalism, Cronyism, and the ‘New Social Covenant’
Dec 19, 2025 9:41 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
Erasing the cross: Public vs. private sector
The European discount grocery chain Lidl stirred controversy by removing the cross from its products’ labels, so as not to give offense. Eagle-eyed consumers noticed that Eirdanous, its Greek food line, featured a picture of a blue-domed Greek Orthodox Church by the sea – but unlike every other such church, its cupola was not topped by a cross. pany Photoshopped the symbol of Christ’s victory over death and Hell off of the Anastasi(in Greek, literally, “resurrection”) Church inSantorini. Perhaps to...
Missiles, threats and sanctions: How should the United States respond to North Korea?
The North Korean people are not the same as the North Korean regime. Photo: “Pyongyang, North Korea” by (stephan) (CC BY-SA 2.0) Today the United Nations Security Council will meet and vote on a resolution to impose new restrictions on North Korea. This resolution is a direct response to recent North Korean missile activity and threats from Kim Jong Un. On July 4, North Korea tested an intercontinental ballistic missile and claimed it could hit any nation on Earth and...
7 Figures: Income and poverty in the U.S.
The U.S. Census Bureau released its latest report on e and poverty in the United States today. Here are seven figures from the report you should know about: 1. Real median household e increased 3.2 percent between 2015 and 2016—from $ 57,230 to $59,039. (This figure surpasses the previous high reached in 1999.) 2. Real median es in 2016 for family households ($75,062) and nonfamily households ($35,761) increased 2.7 percent and 4.5 percent, respectively, from their 2015 medians. (This is...
The monopoly markup
Note: This is post #48 in a weekly video series on basic microeconomics. Ever wonder why pharmaceuticals are so expensive? In this video by Marginal Revolution University, Alex Tabarrok shows how low elasticity of demand results in monopoly markups. This is especially the case with goods that involve the “you can’t take it with you” effect (for example, people with serious medical conditions are relatively insensitive to the price of life-saving drugs) and the “other people’s money” effect (if third...
The archbishop of Canterbury eyes a ‘broken’ economy
Defending the free market and advocating for ever-greater access to capital is of paramount importance during uneven economic patches. That is how Christians should ments from Justin Welby, the archbishop of Canterbury, who recently said that the economy is “broken.” The archbishop cited familiar economic data of unequal economic growth, youth hopelessness, and questions about wage stagnation. Many of these are part of a ing report from the IPPR’s Commission on Economic Justice, of which he is a member. But...
Acton economist: Too much grandstanding on price gouging issue
In the aftermath of Hurricane Harvey, which made its initial landfall on the Texas Gulf Coast in late August, many are questioning whether price-gougers acted immorally when ratcheting up the prices of their goods. Now that Hurricane Irma is tearing through Florida and the Southeast, people are once again questioning the motivations behind heightened prices. Acton affiliate scholar Victor Claar, who teaches economics at Florida Gulf Coast University in Fort Myers, points out in a Detroit News opinion piece that...
A holistic view of Christian vocation
In a society where personal identity is conveyed by one’s job title, it is of little wonder that the nation’s youth are so anxious about career choice. But what if your identity is found in Christ? What if living vocationally has nothing to do with finding the “perfect” career? ...
Upstream: A Conversation on Artist Renee Radell
On the Upstream segment of this week’s Radio Free Acton podcast, I discuss the visual art of Renee Radell with Gregory Wolfe. Radell’s work is the subject of Renee Radell: Web of Circumstance (Predmore Press, 2016, 220 pages, $80), a book presenting a career overview of her artistic efforts. In his review of Web of Circumstance for The University Bookman, Wolfe – founder and editor of Image magazine – determines the panying text by Eleanor Heartney superficial in contrast to...
5 Facts about the 9/11 aftermath
Today marks the 16th anniversary of the worst terrorist attack ever on American soil. Here are five facts you should know about what happened in the aftermath of the events on September 11, 2001: 1. It took 99 days—until December 19, 2001—for thefires at Ground Zeroto be extinguished.Cleanup at Ground Zero wasn’t pleted until May 30, 2002. It took 3.1 million hours of labor to clean up 1.8 million tons of debris at a total cost of cleanup of $750...
The consuming self as tyrant
“Consumerism is, quite precisely, the consuming of life by the things consumed. It is living in a manner that is measured by having rather than being.” -Richard John Neuhaus In a free economy, we each serve distinct roles as both producers and consumers. As producers, we create and serve, leveraging the work of our hands to meet the needs of our neighbors. As consumers, however, we look to ourselves and our own needs. Consumption is good and necessary thing, but...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved