Economy of Grace by Kathryn Tanner
"Economy of Grace" by Kathryn Tanner is a thought-provoking exploration of the intersection between Christian theology and contemporary economic systems, particularly capitalism. Divided into three essays, the work critiques conventional economic theories and proposes a model grounded in the notion of grace—a divine favor characterized by unconditional giving and noncompetitive relationships. Tanner draws upon the ideas of prominent social theorists while highlighting the limitations of their frameworks regarding grace and economic exchange.
She contrasts traditional capitalist principles, which often emphasize competition and reciprocity, with a theological economy where the focus is on inclusive distribution and mutual benefit. Tanner argues for structural changes in global capitalism, advocating for policies such as wage increases, debt forgiveness, and universal welfare provisions to foster social justice. A key theme of the book is the collective responsibility to address economic inequalities, urging a shift towards treating resources as public goods that should benefit all. Through this lens, Tanner invites readers to reconsider their understanding of economic relationships and the role of grace within them, encouraging a vision of a more equitable and compassionate global economy.
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Economy of Grace by Kathryn Tanner
First published: Minneapolis, Minn.: Fortress Press, 2005
Genre(s): Nonfiction
Subgenre(s): Critical analysis; essays; theology
Core issue(s): Capitalism; charity; ethics; grace; poverty; social action
Overview
Economy of Grace is divided into three essays that were originally presented as academic lectures. Kathryn Tanner’s goal for this book is to present the greatest contrast between the Christian story and its vision of economy and the economic principles by which the present world abides.
In the first chapter, Tanner examines the theories of John Locke, Pierre Bourdieu, Max Weber, Claude Lévi-Strauss, and other social theorists and discusses their views on the relationship between grace and money. All of the theories have shortcomings, and therefore Tanner proceeds to describe her own theory regarding an “economy of grace.” She states that the oppressed are looking for a way out of the competitive circulation of goods. They are attracted to a vision of grace offered without regard to the distinction of status. She states that Christianity attempts to institute a circulation of goods to be possessed by all in the same degree without reduction or loss. Goods are distributed by God and should be distributed by human beings in imitation of God. The purpose of giving is to bring all recipients to the level of the giver, ultimately God. The whole is given to each, awaiting the expansion of the recipients’ capacity to receive the whole that God and his followers are trying to bring about. In this way, the good is distributed without the giver’s suffering any loss. Tanner compares this giving without depletion to that of the Sun, which remains dazzling however much it illuminates others. Those who are offered the whole of the good by God are to share what they receive in the same way. God creates the material and spiritual worlds according to a noncompetitive economy, and so it should be a noncompetitive economy to every degree possible.
In the second chapter, Tanner compares the basic principles of a theological economy with those of a capitalist economy. She begins this discussion by looking at two alternative economies from the writings of John Locke and anthropological literature on noncommodity gift exchange in South Asia. After an extensive discussion of Locke’s economy, she concludes that it lacks a strong sense of God’s grace. In contrast to Locke’s idea that God offers this world to us through a type of contract that requires our labor, she believes that God graciously gives us what we need and expects us to organize our lives in a similar fashion. The economic model of the noncommodity gift exchange in South Asia likewise has flaws in that it is based on social obligation of reciprocity and social standing.
An economy of grace is based on unconditional giving. Unconditional giving is not a matter of personal feelings but rather a matter of the way in which benefits are distributed to form social relations. Giving can become a strong social force. God’s unconditional giving does not require a proper response on our part; however, God wants our love, gratitude, and commitment to his mission of giving to others. This type of commitment implies giving without restrictions to everyone and everything, for the benefit of all. It is undergirded by a principle of noncompetitive relations, which leads to giving unconditionally without regard for return. Noncompetitive relations is the lack of competition in property or possession; there is no competition between having and giving to others. Gift relations in the theological economy differ from other types of exchanges; whatever one gives remains one’s own property. What one has becomes the other’s own because of a closeness in relationship with the other.
In the third chapter, Tanner offers practical suggestions for how an economy of grace can work in relationship to the global capitalist economy. She states that it can transform the capitalist economy at points where the two fields cross each other in conflict. Global capitalism can be changed by human decision. Suggestions for change include raising wages, improving job opportunities, land reform, forgiving debt, and alleviating unfair trade practices. Tanner focuses on a few of the main principles of a theological economy. Welfare provision should be given as a universal entitlement, sensitive only to need. International governing bodies should be pressured to lift conditions of systematic competitive disadvantage, such as import restrictions. There should be some provision for debt forgiveness, perhaps through a bankruptcy policy for nations. Also, something must be done to stop the periodic downward spirals of capitalism to replace them with virtuous upward spirals of mutual benefit. Post-Ford assembly-line production should be implemented by using production processes that are lean and flexible. Measures must be taken to discourage financial speculation and make investment in productive enterprises more attractive. Bodies such as the International Monetary Fund and the World Bank should take steps to establish international funding sources.
Tanner suggests that one of the keys to a theological economy is the development of public goods. Everything for which one could be charged should be made public. Funding for these goods could be generated through small, universally borne taxes. The disadvantaged of the world need to be mobilized to put pressure on international organizations to effect change. Christians should use the power of their vote to put pressure on the U.S. government to change international trade and financing policies. By sharing a vision of a universally inclusive community of mutual benefit, humanity can create a global economy that will benefit everyone.
Christian Themes
One of the overarching themes of Economy of Grace is the idea of God’s grace. Tanner defines grace as God’s favor and all the ways God’s favor is expressed, including the creation of the world, the forgiveness of sin, and the opportunity for spiritual and moral sanctification. These and other of God’s gifts are given freely and abundantly without any obligation on the part of the recipients. Tanner bases her model of the economy on this example: Just as God enters into a noncompetitive relationship with his creatures, so should human beings enter into a noncompetitive relationship with the each other and the world.
Another theme of this book is the idea of social justice. Tanner has a deep concern for the economic injustices that permeate world culture. Many of the changes that Tanner suggests must be implemented at the political level. Unconditional giving is not an emotional matter but rather a social and economic matter. With globalization as the standard, we must be as concerned about the factory workers in Singapore as we are about the factory workers in New York City. We must find ways to share the resources of the world more equitably. Although Tanner does not use the term “stewardship” in this book, it is readily evident that “to whom much is given, much is expected.”
Economy of Grace jolts the reader to question many of the basic principles of a capitalist system. Tanner’s vision of a “theological economy” challenges us to work for changes not just at a private level but at a more fundamental level as well. The ideas of unconditional giving and noncompetitive relations will challenge readers as they are reminded of the Christian story. The concept of turning private goods into public goods offers a glimpse at a new form of stewardship.
Sources for Further Study
Dolff, Scott N. “The Obligation to Give: A Reply to Tanner.” Modern Theology 21, no. 1 (January, 2005): 119-139. Dolff provides a deeper understanding of Tanner’s theology and critiques her 2001 work Jesus, Humanity, and the Trinity: A Brief Systematic Theology.
Grau, Marion. Review of Economy of Grace. Anglican Theological Review 88, no. 2 (Spring, 2006): 296-297. Offers a positive assessment of the book, stating that it helpfully advances current theological conversations on economy and grace.
Long, Stephen D. Review of Economy of Grace. Modern Theology 22, no. 2 (April, 2006): 312-314. Questions the practicality of Tanner’s ideas.
Tanner, Kathryn. Theories of Culture: A New Agenda for Theology. Minneapolis, Minn.: Fortress Press, 1997. Presents the study of postmodern culture as it intersects with theology, providing a backdrop for Economy of Grace.