What do you think?
Rate this book
Economy of Grace
Are there any fair and viable alternatives to global capitalism? University of Chicago theologian Kathryn Tanner offers here a serious and creative proposal for evaluating economic theory and behavior through a theological lens.
172 pages, Paperback
First published June 17, 2005
21 people are currently reading
129 people want to read
About the author
Kathryn Tanner
25 books38 followersProfessor Tanner joined the Yale Divinity School faculty in 2010 after teaching at the University of Chicago Divinity School for sixteen years and in Yale’s Department of Religious Studies for ten. Her research relates the history of Christian thought to contemporary issues of theological concern using social, cultural, and feminist theory. She is the author of God and Creation in Christian Theology: Tyranny or Empowerment? (Blackwell, 1988); The Politics of God: Christian Theologies and Social Justice (Fortress, 1992); Theories of Culture: A New Agenda for Theology (Fortress, 1997); Jesus, Humanity and the Trinity: A Brief Systematic Theology (Fortress, 2001); Economy of Grace (Fortress, 2005); Christ the Key (Cambridge, 2010); and scores of scholarly articles and chapters in books that include The Oxford Handbook of Systematic Theology, which she edited with John Webster and Iain Torrance. She serves on the editorial boards of Modern Theology, International Journal of Systematic Theology, and Scottish Journal of Theology, and is a former coeditor of the Journal of Religion. Active in many professional societies, Professor Tanner is a past president of the American Theological Society, the oldest theological society in the United States. For eight years she has been a member of the Theology Committee that advises the Episcopal Church’s House of Bishops. In the academic year 2010–11, she had a Luce Fellowship to research financial markets and the critical perspectives that Christian theology can bring to bear on them. In 2015–16, she will deliver the Gifford Lectures at the University of Edinburgh in Scotland.
Ratings & Reviews
Friends & Following
Create a free account to discover what your friends think of this book!
Community Reviews
Displaying 1 - 7 of 7 reviews
April 13, 2011
Grace and Money
Kathryn Tanner splits Economy of Grace into three sections. In the first, she questions whether or not Christianity provides specific purchase on economic discussions. Answering in the affirmative, Tanner continues in the second section to outline a theological foundation for economics. Finally, she concludes Economy of Grace with a section promoting potential applications of a theological economy in a practical manner.
At first glance, theological and economic discussions contain little similarity. On one side resides the language of justice, faith, and health; on the other side: capital, profit, and competition. In the first chapter of her tome, Kathryn Tanner explores the relationship between Christianity and economics. While most typically view theology in the realm of the individual and economy in the realm of community, Tanner suggests that the link between the two in the simplest form is grace and money.
Without further explanation, of course, such an assertion raises the eyebrows of many theologians as the threat of prosperity theology presents itself. Nevertheless, Tanner battles these assumptions by suggesting the link between grace and money exists in the conception of distribution.
Just as theology is concerned with the distribution of grace amongst society, so too is economics with the distribution of money. Yet, the two starkly contrast since the distribution of grace operates under non-competitive assumptions.
Tanner writes,
“By setting Christian ideas of the production and circulation of goods into a comparative economy, by making that comparative framing an economic one, my intent is just to suggest that a Christian economy has everything to do with the material dimensions of life – with the economic more narrowly construed. It is clear that, set within a comparative economy, grace has everything to do with money” (29).
Unconditional Giving
Having presented the connection between theology and economics, Tanner utilizes the space in chapter two to discuss alternative forms of the economic system based on a theological lens. While efforts have been made to promote a theological economy through the ideas of inalienable property rights and gift exchange, both systems fall short of truly uniting with the notion of non-competitive grace.
A theologically-based economy must act similarly to the way God acts in relation to humanity.
Tanner adds,
“The whole point of God’s dealings with us as creator, covenant partner, and redeemer in Christ is to bring the good of God’s very life into our own. Our lives participate in that divine mission and thereby realize the shape of God’s own economy by giving that follows the same principle: self-sharing for the good of others” (85).
Scripture presents God as an unconditional giver. Everything we have is a result of God’s generosity and humanity is incapable of repaying such a gift to God. Therefore, our best approximation is to unconditionally give to others as God gives to us.
Constructing an Economy of Grace
But does this theological view of economy contain practical application or does it merely denote a utopian state? In the third chapter, Tanner attempts to apply her framework on a practical level.
In truth, Tanner admits that her economy of grace carries utopian themes. Given the current state of the global economy, it is probably impossible for non-competitive grace to achieve an economic stronghold.
Nevertheless, non-competitive grace possesses applicable principles.
For example, capitalists seek the highest amount of profits typically by pursuing the most efficient production. The cheaper the cost of manufacturing with a maintained quality means high profits. Yet, such practices usually denote paying employees less and less. Taking this thought process to the extreme, if a company paid employees so little that they are unable to purchase the products, profits will plummet as consumption dies.
An economy of grace, however, suggests that a principle of non-competitiveness solves this inherent difficulty in capitalism.
Tanner notes,
“One should, whenever possible, promote growth strategies in which the economy grows and poverty is reduced at the same time” (96).
While capitalists can earn significant profits in the short term through diminishing wages, such practices are detrimental in the long term. An economy of grace, on the other hand, suggests that gradually raising wages and lifting the poor out of poverty benefits all of society.
A Slight Critique
While Tanner presents an intriguing vision for a theologically-based economy, I find her conclusions to be inconsistent. Although she readily admits that a pure economy of grace is utopian considering the current state of global affairs, her application of theological tenets to the current form of capitalism changes underlying assumptions minutely.
More specifically, if an economy of grace is based on non-competitive giving, a gift given in order to expect a return on investment violates the economy of grace. Tanner’s third chapter provides many examples where supposedly altruist behavior helps all stakeholders. But in my mind, such assertions betray the root purpose of non-competitive giving: the notion of self-sacrifice for the good of another.
In this way, Tanner’s attempt to reconcile a theologically-based economy with the current capitalist system equates to an argument of good ethics equals good business. What if good ethics equals bad business? Surely at some point, a manager must face a decision between ethical behavior and bottom-line profits. Does Tanner’s economy of grace answer this manager’s dilemma? I am doubtful that it can escape its utopian nature.
Additionally, Tanner’s prose is dense and unorganized. With cumbersome paragraphs and little formatting to break the monotony of the prose, Economy of Grace is a difficult read.
Nevertheless, the content of the book offers critical insight into a theological appraisal of the marketplace. If you have interest in a Christian view of economics, I recommend this book.
Originally published at http://wherepenmeetspaper.blogspot.com/.
Kathryn Tanner splits Economy of Grace into three sections. In the first, she questions whether or not Christianity provides specific purchase on economic discussions. Answering in the affirmative, Tanner continues in the second section to outline a theological foundation for economics. Finally, she concludes Economy of Grace with a section promoting potential applications of a theological economy in a practical manner.
At first glance, theological and economic discussions contain little similarity. On one side resides the language of justice, faith, and health; on the other side: capital, profit, and competition. In the first chapter of her tome, Kathryn Tanner explores the relationship between Christianity and economics. While most typically view theology in the realm of the individual and economy in the realm of community, Tanner suggests that the link between the two in the simplest form is grace and money.
Without further explanation, of course, such an assertion raises the eyebrows of many theologians as the threat of prosperity theology presents itself. Nevertheless, Tanner battles these assumptions by suggesting the link between grace and money exists in the conception of distribution.
Just as theology is concerned with the distribution of grace amongst society, so too is economics with the distribution of money. Yet, the two starkly contrast since the distribution of grace operates under non-competitive assumptions.
Tanner writes,
“By setting Christian ideas of the production and circulation of goods into a comparative economy, by making that comparative framing an economic one, my intent is just to suggest that a Christian economy has everything to do with the material dimensions of life – with the economic more narrowly construed. It is clear that, set within a comparative economy, grace has everything to do with money” (29).
Unconditional Giving
Having presented the connection between theology and economics, Tanner utilizes the space in chapter two to discuss alternative forms of the economic system based on a theological lens. While efforts have been made to promote a theological economy through the ideas of inalienable property rights and gift exchange, both systems fall short of truly uniting with the notion of non-competitive grace.
A theologically-based economy must act similarly to the way God acts in relation to humanity.
Tanner adds,
“The whole point of God’s dealings with us as creator, covenant partner, and redeemer in Christ is to bring the good of God’s very life into our own. Our lives participate in that divine mission and thereby realize the shape of God’s own economy by giving that follows the same principle: self-sharing for the good of others” (85).
Scripture presents God as an unconditional giver. Everything we have is a result of God’s generosity and humanity is incapable of repaying such a gift to God. Therefore, our best approximation is to unconditionally give to others as God gives to us.
Constructing an Economy of Grace
But does this theological view of economy contain practical application or does it merely denote a utopian state? In the third chapter, Tanner attempts to apply her framework on a practical level.
In truth, Tanner admits that her economy of grace carries utopian themes. Given the current state of the global economy, it is probably impossible for non-competitive grace to achieve an economic stronghold.
Nevertheless, non-competitive grace possesses applicable principles.
For example, capitalists seek the highest amount of profits typically by pursuing the most efficient production. The cheaper the cost of manufacturing with a maintained quality means high profits. Yet, such practices usually denote paying employees less and less. Taking this thought process to the extreme, if a company paid employees so little that they are unable to purchase the products, profits will plummet as consumption dies.
An economy of grace, however, suggests that a principle of non-competitiveness solves this inherent difficulty in capitalism.
Tanner notes,
“One should, whenever possible, promote growth strategies in which the economy grows and poverty is reduced at the same time” (96).
While capitalists can earn significant profits in the short term through diminishing wages, such practices are detrimental in the long term. An economy of grace, on the other hand, suggests that gradually raising wages and lifting the poor out of poverty benefits all of society.
A Slight Critique
While Tanner presents an intriguing vision for a theologically-based economy, I find her conclusions to be inconsistent. Although she readily admits that a pure economy of grace is utopian considering the current state of global affairs, her application of theological tenets to the current form of capitalism changes underlying assumptions minutely.
More specifically, if an economy of grace is based on non-competitive giving, a gift given in order to expect a return on investment violates the economy of grace. Tanner’s third chapter provides many examples where supposedly altruist behavior helps all stakeholders. But in my mind, such assertions betray the root purpose of non-competitive giving: the notion of self-sacrifice for the good of another.
In this way, Tanner’s attempt to reconcile a theologically-based economy with the current capitalist system equates to an argument of good ethics equals good business. What if good ethics equals bad business? Surely at some point, a manager must face a decision between ethical behavior and bottom-line profits. Does Tanner’s economy of grace answer this manager’s dilemma? I am doubtful that it can escape its utopian nature.
Additionally, Tanner’s prose is dense and unorganized. With cumbersome paragraphs and little formatting to break the monotony of the prose, Economy of Grace is a difficult read.
Nevertheless, the content of the book offers critical insight into a theological appraisal of the marketplace. If you have interest in a Christian view of economics, I recommend this book.
Originally published at http://wherepenmeetspaper.blogspot.com/.
May 8, 2021
Tanner is, as always, thoughtful and insightful. She doesn't produce some vague appeal to a better economy. Indeed, Tanner is clear to say that the economic ideas she posits aren't necessarily "better," just more biblical and holy. In that sense, if we are seeking to live by God's grace, the economy will, with prayer and dedication, be better.
I appreciate how Tanner contrasts current capitalist practices and consequences with biblical mandates and goals. In all of her works, Tanner is always at her best when she presents the intentions of God as spoken in the Bible with the intentions and consequences of current practices. However, as Tanner shifts from contrasting what is to what should be, she explicitly says that the jump from what is to what should be would be too large. To counteract that dilemma, Tanner recommends smaller adjustments to the world economy--using what is to inch closer to what should be. It seems that Tanner is either worried that what should be would seem too far-fetched to take seriously or that she doesn't quite believe a full economy of grace would actually work. Either way, it's a bit of a let-down because essentially she builds up an economy of grace only to then say, "You know what, let's not talk about it any more. Let's shoot lower."
I appreciate how Tanner contrasts current capitalist practices and consequences with biblical mandates and goals. In all of her works, Tanner is always at her best when she presents the intentions of God as spoken in the Bible with the intentions and consequences of current practices. However, as Tanner shifts from contrasting what is to what should be, she explicitly says that the jump from what is to what should be would be too large. To counteract that dilemma, Tanner recommends smaller adjustments to the world economy--using what is to inch closer to what should be. It seems that Tanner is either worried that what should be would seem too far-fetched to take seriously or that she doesn't quite believe a full economy of grace would actually work. Either way, it's a bit of a let-down because essentially she builds up an economy of grace only to then say, "You know what, let's not talk about it any more. Let's shoot lower."
August 14, 2024
Reread this in preparation to read Christianity and the New Spirit of Capitalism here. Tanner provides some interesting ideas about economy and noncompetition, and what an alternative to capitalism may look like in our age.
In some places though, this assessment seemed rushed and disjointed, and she may have benefitted from a bit more clarity and cohesion. But I think this remains a worthwhile read for the thoughts it attempts to provoke. Whether they’re adequate or not is another question entirely.
In some places though, this assessment seemed rushed and disjointed, and she may have benefitted from a bit more clarity and cohesion. But I think this remains a worthwhile read for the thoughts it attempts to provoke. Whether they’re adequate or not is another question entirely.
October 22, 2020
The strengths of Economy of Grace are many; it nicely does away with any dignity rational choice theory had left, it navigates and describes the waters of global finance capital well, and it calls for an inclusive economy of God and of humankind.
To be sure, however, Tanner is a capitalist/neoliberal realist—she sees no alternative to at least some variance of global capital, no matter how democratic or left her variance might be. Tanner’s twofold dismissal of socialism as a viable project and subsequent welcoming of social democracy and/or Keynesian welfare-state situate her well within the confines of neoliberalism’s large tent. Tanner locates an economy of grace within the Triune life of God, that is, all giving and getting is never at the expense of one Person’s (or persons) demise. More specifically, Tanner sees that global decommodification of basic goods (housing, water, food, education, and healthcare are all mentioned), Keynesian economic planning, and capital migration regulation would control both capitalism and currency trading during regional economic hardships. Tanner sees that the welfare economy of global capital is a Pareto optimum that mirrors the triune grace of God.
Interestingly enough, Tanner dismisses socialism (and espouses Keynesian reformism/global welfare) on the grounds that socialism is historically faulty and theoretically idealistic. Yet Tanner simultaneously calls for an economy that meets the Pareto optimum (something that has never happened within the confines neoliberalism) because such an economy would mirror the relations of the Trinity (possibly the most idealistic, impractical grounding one could have). If socialism is idealistic, per Tanner’s own metric, then having better representation of disenfranchised people in the IMF as the means to economic harmony is hyper-idealistic to the point of delusional—the IMF has only ever existed to propagate Western empires’ continued dominance over developing countries. The IMF and its minions, the systems that oppress us, cannot be the systems that liberates us. Inclusion and diversity within the confines of political liberalism have been tried for the past century and have continually made inequalities worse. Why? Because capitalism and neoliberalism require inequalities to grow. For Christians to love our neighbors, we cannot spend time convincing others that the inner life of God ought to be our model for social reformism—idealism is not what moves the wheels of history—rather, Christian love in the 21st century is to overthrow neoliberalism and to welcome in a new day of international socialism.
To be sure, however, Tanner is a capitalist/neoliberal realist—she sees no alternative to at least some variance of global capital, no matter how democratic or left her variance might be. Tanner’s twofold dismissal of socialism as a viable project and subsequent welcoming of social democracy and/or Keynesian welfare-state situate her well within the confines of neoliberalism’s large tent. Tanner locates an economy of grace within the Triune life of God, that is, all giving and getting is never at the expense of one Person’s (or persons) demise. More specifically, Tanner sees that global decommodification of basic goods (housing, water, food, education, and healthcare are all mentioned), Keynesian economic planning, and capital migration regulation would control both capitalism and currency trading during regional economic hardships. Tanner sees that the welfare economy of global capital is a Pareto optimum that mirrors the triune grace of God.
Interestingly enough, Tanner dismisses socialism (and espouses Keynesian reformism/global welfare) on the grounds that socialism is historically faulty and theoretically idealistic. Yet Tanner simultaneously calls for an economy that meets the Pareto optimum (something that has never happened within the confines neoliberalism) because such an economy would mirror the relations of the Trinity (possibly the most idealistic, impractical grounding one could have). If socialism is idealistic, per Tanner’s own metric, then having better representation of disenfranchised people in the IMF as the means to economic harmony is hyper-idealistic to the point of delusional—the IMF has only ever existed to propagate Western empires’ continued dominance over developing countries. The IMF and its minions, the systems that oppress us, cannot be the systems that liberates us. Inclusion and diversity within the confines of political liberalism have been tried for the past century and have continually made inequalities worse. Why? Because capitalism and neoliberalism require inequalities to grow. For Christians to love our neighbors, we cannot spend time convincing others that the inner life of God ought to be our model for social reformism—idealism is not what moves the wheels of history—rather, Christian love in the 21st century is to overthrow neoliberalism and to welcome in a new day of international socialism.
December 31, 2016
What has Jerusalem to do with Wall Street? What has theology to say about economics? Is it appropriate? Is it possible? Is it nonsensical? At first glance, I had little to none expectations about this book, not because Kathryn Tanner is not a theologian par excellence (she verily is) but because economics is not an appealing field, personally. Yet, following the trajectory of her monograph, Tanner first explored the crossovers between economics and theology, which perked my interest a bit. If one expands the narrow frame of economics (money-centric) to a more general one (human interactions), then theology has much to say!
Responsible theology gleans nuggets from the theos (God)--the object of study and observation. In Tanner's case, the historical interactions between the utterly transcendent-incarnated God and human beings draw two theological economic principles: unconditional giving and noncompetition. In other words, God's grace is the unconditional giving to humans and the Creator-Creation distinction laughs at any competitive rivalry between divinity and humanity--hence, noncompetition. With these two theological economic principles, she reviews capitalism's philosophical background (the rights of private property), idealistic scenario, and current reality with its imminent doom, if without major changes. Tanner is not a communist nor a socialist (in my limited opinion); she is not trying to dissipate capitalism. Actually, she is trying to reform it to work in our globalized, postcolonial, currency-exchange crazed, transnational corporate, hyper-technologically advanced, post-Fordism, and self-interested world. A daunting task to accomplish in 142 pages. Her response, in short, is that we could either let the current vicious cycle of decline (a 'win/lose' situation) continue to imminent doom or revitalize a cycle of mutual benefit (a 'win/win' situation).
In light of an impressive and meticulous scholarship, even on a foreign field of study, Tanner's words should not be dismissed as "liberal," "communistic," or "inappropriate." She has done her work. Her recent lectures with the prestigious Gifford Lectures of 2016, titled "Christianity and the New Spirit of Capitalism" (http://www.giffordlectures.org/lectur...), might prove to be an updated and more beneficial treatment. She does not claim definite nor authoritative word on economics. And neither do I! So, read carefully: she's a tough writer on a tough subject.
cf. www.sooholee.wordpress.com
Responsible theology gleans nuggets from the theos (God)--the object of study and observation. In Tanner's case, the historical interactions between the utterly transcendent-incarnated God and human beings draw two theological economic principles: unconditional giving and noncompetition. In other words, God's grace is the unconditional giving to humans and the Creator-Creation distinction laughs at any competitive rivalry between divinity and humanity--hence, noncompetition. With these two theological economic principles, she reviews capitalism's philosophical background (the rights of private property), idealistic scenario, and current reality with its imminent doom, if without major changes. Tanner is not a communist nor a socialist (in my limited opinion); she is not trying to dissipate capitalism. Actually, she is trying to reform it to work in our globalized, postcolonial, currency-exchange crazed, transnational corporate, hyper-technologically advanced, post-Fordism, and self-interested world. A daunting task to accomplish in 142 pages. Her response, in short, is that we could either let the current vicious cycle of decline (a 'win/lose' situation) continue to imminent doom or revitalize a cycle of mutual benefit (a 'win/win' situation).
In light of an impressive and meticulous scholarship, even on a foreign field of study, Tanner's words should not be dismissed as "liberal," "communistic," or "inappropriate." She has done her work. Her recent lectures with the prestigious Gifford Lectures of 2016, titled "Christianity and the New Spirit of Capitalism" (http://www.giffordlectures.org/lectur...), might prove to be an updated and more beneficial treatment. She does not claim definite nor authoritative word on economics. And neither do I! So, read carefully: she's a tough writer on a tough subject.
cf. www.sooholee.wordpress.com
January 31, 2011
Concise, well-written, and prophetic, this is an excellent case for a reformed economy backed by irresistible theological logic. Though aimed at theologians first, it would also have its use in adult education or even some school settings.
Tanner is distinguished among contemporary left-of-center theologians for the rigor and clarity of her method. She has learned the critique of the midcentury liberals, but her own subtle critique of certain post-liberal naivetes is even sharper and more necessary. Christians who have recognized the inhumanities and idolatries of much capitalist ideology and practice are nevertheless divided in their trust of the liberal state. Tanner names her own case for a growth toward social democracy in terms of clear theological merit.
For parish use, I might start with No Rising Tide for its moral clarity and post-crash analysis. Tanner's book is even more precise in its theological narration and in its proposed solutions.
Tanner is distinguished among contemporary left-of-center theologians for the rigor and clarity of her method. She has learned the critique of the midcentury liberals, but her own subtle critique of certain post-liberal naivetes is even sharper and more necessary. Christians who have recognized the inhumanities and idolatries of much capitalist ideology and practice are nevertheless divided in their trust of the liberal state. Tanner names her own case for a growth toward social democracy in terms of clear theological merit.
For parish use, I might start with No Rising Tide for its moral clarity and post-crash analysis. Tanner's book is even more precise in its theological narration and in its proposed solutions.
Displaying 1 - 7 of 7 reviews