FAN Supports a “Shared Recovery”
by Rev. Larry Janezic, OFM
FAN Issue Advocate

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In January 2009, the people of the United States faced the prospect of the biggest economic crisis since the Depression of the 1930s. Unemployment rose to over two million people.  The number of people experiencing home foreclosures increased.   Major industries teetered on the brink of bankruptcy.  Retirement savings have been depleted.   Major purchasing was at a standstill.  In the month of January, not a day went by without news of major layoffs and job losses.

Earlier, in the fall of 2008, Congress passed the Troubled Asset Relief Program (TARP).   This program committed $700 billion of relief to failed financial institutions so as to encourage healthy functioning after the massive acquisition of toxic assets and the turmoil that it caused.   Many expected that TARP would provide relief for the homeowners facing foreclosure.    FDIC director Sheila Bair insisted that the TARP be used for direct relief for home-owners facing foreclosure.  Yet this kind of relief has not been a significant part of the TARP distribution of the initial $400 billion.   Bipartisan talk in the Senate touched on regulated assistance to people experiencing foreclosure as well as taxes and state infrastructures.

Even earlier, a central issue of the general election of 2008 had been the “Wall Street- Main Street” tension. Discussion of it continues, the tension recently aggravated by the disclosure of seven figure bonuses of bail-out money to departing executives. From the reports of failed financial institutions to the prospects of a bankrupt auto industry, people losing their jobs could see a dismal economic future well enough. 

Advocates immediately proposed that policy be directed toward a shared recovery.*    “Shared” here is to mean that significant consideration be given to people who are struggling with foreclosure; that protections be given to renters; that unemployment insurance be extended; that food stamps be extended and increased; that funds be provided to the states to maintain essential programs of education and health; and that jobs be created to address the nation’s crumbling infrastructure. It is hoped that in the process, issues of neglect will be addressed, that new jobs will have a positive impact on the environment and that bridges and schools will be brought to safe standards. The newly elected President Barack Obama and the 111th Congress were poised and ready to move legislation along addressing this crisis. The American Recovery and Reinvestment Act passed the House of Representatives by a vote of 244 to 188 and is awaiting action in the Senate.

The Franciscan Action Network will advocate for a shared recovery.  In so doing, we will provide opportunities for a deeper reflection of our view of the economy as Franciscans.  How does Francis and our Franciscan tradition invite us to take a critical view of our life in relation to the economic system and economic policy which shape it?  Some weeks ago, at a liturgy with the Franciscan Friars (OFM) at Holy Name College in Silver Spring, MD, we focused on how the economic reality affects our lives.  I suggested that as individuals we would not be Madison Avenue’s target market.   As individuals we simply (at least most of us) don’t have that much cash.  Yet our institutions are very much in the economic mainstream.   We buy and sell property; we participate in a health care plan;  buy medicine; establish a line of credit;  and make investments.  About the only thing we don’t do is pay taxes, at least some of us -- professed religious.  Informally, some of the Friars will admit to feeling strange about the current economic situation.  We probably don’t have to worry about losing our house, or what we will eat. Our cars, our recreational needs, and our health care is provided for.  Most of us have good job security.  It is a challenge for us to acutely feel the economic crisis. However, many of us feel it professionally, or in subtler ways.

Donations have been down this past year.  Unemployment and the volatility of the stock market have had an impact on parish life and the operations of charitable institutions. As we reflect on our participation in the economy, FAN highlights a positive note.  There is a lot of policy discussion about the economic condition. There are a lot of ideas and proposals and a determination for a resolution.    This is an opportunity to focus our attention on those who are most affected by the downturn of the economy.   As Franciscans, we believe that the measure of a good economy is demonstrated by its ability to care for the most vulnerable.


* “Shared recovery” is a term used by the Coalition on Human Need.  Their studies indicate that cash invested in poor and struggling people in the form of food stamps, unemployment insurance, health care, and tax cuts yields significant increases in spending and saves jobs.