No amount of regulation will restore our sense of honour and shame. Economics needs ethics
Markets need morals, and morals are not made by markets.
They are made by schools, the media, custom, tradition, religious leaders, moral role models and the influence of people. But when religion loses its voice and the media worship success, when right and wrong become relativised and morality is condemned as “judgmental”, when people lose all sense of honour and shame and there is nothing they won't do if they can get away with it, no regulation will save us. People will outwit the regulators, as they did by the securitisation of risk so no one knew who owed what to whom.
The big question is: how do we learn to be moral again? Markets were made to serve us; we were not made to serve markets. Economics needs ethics. Markets do not survive by market forces alone. They depend on respect for the people affected by our decisions. Lose that and we lose not just money and jobs but something more significant still: freedom, trust and decency, the things that have a value, not a price.FULL Timesonline article
Sir Jonathan Sacks is the Chief Rabbi of the United Hebrew Congregations of the Commonwealth