BTNYC #131
Then I kept running afoul of repeated Church condemnations of usury… and then I read “Rerum Novarum”… and then I learned about Distributism
While the taking of interest on loans to the poor and the greed of usurers is condemned, Scripture and the Fathers of the Church, decrees of councils and popes do not envisage the economic conditions where money markets determine rates of interest – so charging interest as such is not considered. [See Vermeersch, S.J., *Usury, The Catholic Encyclopedia, vol 15, Appleton, 1912].
“The laws concerning usury were concerned not with business deals, but with lending from the rich to the poor who were seeking survival. Charles cites Lactantius, Basil, Ambrose, Augustine, and Jerome in support of his argument.
“But as trade expanded, so too the demand for money, not only as a means of exchange but as a store or measure of value. It could be used to make more money by investment; it was capital….with trade expanding the Church still wanted to defend the poor, but She also began to recognise that there exists an opportunity cost to money…the teaching underwent a development….”
Entrepreneurship in the Catholic Tradition, Fr Anthony G Percy, Lexington Books, 2010, p 76].
Distributism has never had wide-spread support. One of the reasons may be that “the market economy consists of voluntary property exchanges. There is no mechanism of ‘distribution’ whatsoever.” (Thomas E Woods,
The Church And The Market, Lexington Books, 2005, p 161, 201). While Distributism is unworkable as a societal norm, especially as Catholic social teaching recognises the tremendous benefits of free enterprise, condemns socialism, and proposes no “third way”, anyone is free to practise it.
That is why Dr Woods’ book above is described as “A welcome antidote to the various combinations of economic incompetence and self-righteous posturing - ‘liberation theology,’ New Deal welfarism, social democratic interventionism, distributism - that too often masquerade as the only ‘authentic’ interpretations of Catholic social teaching.” (Edward Feser, Visiting Assistant Professor of Philosophy, Loyola Marymount University).