An old professor told our class decades ago to believe nothing from the popular press about economics and only half of what the financial press writes. I would add that if a theologian tries to teach you economics, hide your wallet and lock up your daughters! Kathryn Tanner’s Christianity and the New Spirit of Capitalism is a good example of such the tragic comedy produced by most theologians.
Tanner has taught at Yale Divinity School since 2010 after 16 years at the University of Chicago Divinity School. She is an influential past president of the American Theological Society. Rosemary P. Carbine and Hilda P. Koster say, “Kathryn Tanner is, quite simply, the most accomplished theologian of her generation,” in their book The Gift of Theology: The Contribution of Kathryn Tanner. The errors in her book are so numerous that it would take another book to correct them, so I’ll concentrate on the assumptions underlying her argument.
Tanner’s premise is that capitalism, as evil as it was in the beginning, has morphed into a more horrible monster called financial capitalism. Socialists have over the decades invented stages of capitalism and it’s popular to decry the latest for the dominance of the financial services sector. Yet as usual, they lack evidence. The sector grew from 4% of GDP in 1929 to 8% in 2006 according to a paper in the Journal of Economic Perspectives. While doubling, it’s still smaller than the healthcare or government sectors. The federal government absorbs over 20% of GDP. So, Tanner would be more accurate calling it state capitalism, but that’s an oxymoron.