What Luther and Erasmus can teach us about economics

The panel discussion was introduced by a video message from Otto Fricke, member of the German Bundestag for the Freie Demokratische Partei. Although no industrialization or digitalization had taken place in the time of Erasmus and Luther, the ideas of both theologians are still relevant, according to Fricke. “Erasmus wondered: how can we do things the right way? And: what is a meaningful life? People still wonder what the meaning of life is.” According to Fricke, Luther's thinking revolves around the fact that we were created in relation to God and each other. “Prosperity, well-being, health and environmental protection are therefore still important. The meaning of life consists in caring for each other and for creation.”

Trust in God and each other

Although our world is much more complex than that of Luther and Erasmus, trust is also essential in our time. Fricke: “We can't solve everything because we don't know everything. That is why we must have faith; who better to trust than God? We can't put our trust in the future because we don't know what it looks like. By trusting God, we can trust each other and even forgive when we make mistakes. That is the message that Erasmus of Rotterdam and Martin Luther are still spreading in the twenty-first century.”

After the video message, Herman Selderhuis, Professor of Church History and Church Law at the Theological University of Apeldoorn, opens the panel discussion. He is curious whether the panel members agree with Fricke's speech. Marti Pluygers, entrepreneur in the taxi industry and owner of a bakery, thinks it's a bit abstract: “I miss the best practices. How should we tackle today's challenges?” The German lawyer Christian Treumann understands Pluygers' criticism: "Fricke does not give us economic advice, but the wisdom we need."

Human beings are bounded in knowledge and power

Lans Bovenberg, professor of economics at Tilburg University and Erasmus University Rotterdam, agrees with Fricke. “In our society, a relational vision of people is needed. We must honour and trust other people. The weak point of our society is that we no longer forgive each other's mistakes because we no longer believe in a forgiving God.” Gert-Jan Huisman, founder of private equity fund AndersInvest: “We must indeed recognize that every human being makes mistakes and that leaders cannot know everything. Companies are often dehumanized by all kinds of control systems, but at the end of the day we are still human.” Kees van der Staaij, member of the House of Representatives for the SGP, agrees. “As Otto Fricke said: a lot has changed over the centuries, but we are still the same people.”

Complex problems

Professor Selderhuis, chairman of the discussion panel, asks the participants what economic challenges they face. Christian Treumann; “We live in a complex world and that leads to complex problems. If we try to solve these problems from our intellect alone, I think we will fail. More is needed: trust in God and trust in each other.”

Marti Pluygers indicates that as an entrepreneur she is directly confronted with the energy crisis. Due to the increased energy prices, the costs for her bakery and taxis have increased enormously. She also notices more and more regulation from the government: “There is less and less freedom of entrepreneurship.”

Entrepreneur Gert Jan Huisman agrees. “We live in a time of crisis: we are dealing with corona, the war in Ukraine and the climate crisis at the same time. I notice that people become disappointed and angry with governments, but at the same time their hopes and expectations of the government are historically high. This leads to governments coming up with an enormous amount of rules and frameworks, among other things to solve the climate crisis. We should not put all our hopes in governments, but also expect it from companies. In our companies, for example, there is great intrinsic motivation to solve the climate crisis, but a lot of legislation actually hinders us.”

Institutional trust: Market, Community and Government

Professor Bovenberg: “Trust is needed in three institutions: the market, the community and the government. In China the government calls the shots, in the US the market. In Europe, we must be careful not to forget the community. We should not expect too much from the government, the government cannot compensate everyone. In our society we can no longer deal with mistakes and that is why we regulate. Instead, our citizens must learn to be responsible citizens.”

It is therefore about a balanced trust in the government, the market, but certainly also in the community, in other words, in each other. Christian Treumann: “I learned at school that you will fail if you don't trust anyone, but that you will also be disappointed if you trust everyone. Therefore, free markets must be regulated without losing trust in each other.” Kees van der Staaij: “It is indeed about striking the right balance. Government regulation is like rain: too much rain is a disaster, but too little is too. My predecessor Abma talked about laissez-fleurir instead of laissez-faire.”

Noaberschap

Professor Bovenberg: “The source of trust in each other lies in God, the only one we can really trust. He gives us the courage to trust others. The most important element of love is trust. God is a good father, he loves us even as imperfect people.” Gert-Jan Huisman: “As human beings we are imperfect, but at the same time we bear God's image. We are creative and able to solve problems by working together. Let's not be naive, but at the same time have faith in each other.” Marti Pluygers: “I think we should go back to how they used to do things in close-knit communities: working together and looking out for each other. Noabership, that's what we call it in Twente.”