Introduction
In recent decades, a significant number of developed countries have accumulated high levels of government debt. Historically, countries have borrowed to fight wars or finance profligate spending. However, the development of modern debt markets and instruments, together with post-war thinking in economics, has changed both the nature of government borrowing and indebtedness, as well as moral perception of the implications.
Government borrowing effectively involves the transfer of the cost of provision of goods, services and welfare payments to future generations. There may be situations in which this is justified. Whether or not this is so, it is important that Catholic social thought and teaching,[1] and indeed the wider Christian tradition, engage with this issue. Over the centuries there has been discussion of economic problems, such as inflation, among those exploring Catholic social thought. In recent years the Catholic Church has become very involved with the question of government indebtedness in less developed countries, but there has been relatively little discussion in respect of the impact it has in developed countries. This is despite the fact that, on occasion, the extent of debt has severely undermined democratic accountability and the ability of governments to undertake the key functions demanded of them in Catholic social teaching.
Notes to Introduction
[1] ‘Catholic social teaching’ usually refers to the formal body of church teaching, ‘Catholic social thought’ to wider scholarly and intellectual reflection. This publication follows suit but there are clearly areas of overlap.