Catholic teaching on capitalism

[DMITRIYL]

Hello, I had heard that Pope Francis had condemned unchecked capitalism and was wondering whether or not this is true and if the Catholic Church has any specific teachings regarding economics. I know that it talks about our duty to serve others; but does this extend to the government? I was just concerned as I am a supporter of free-market capitalism. Also, does the Church require that governments provide some form of aid for the unemployed or those in poverty? Thank you.

 

[adawgj]

While I support a free market with some common sense regulations.

I think the government can’t just sit around waiting for Bill Gates and Mark Cuban to pay for everything when it comes to the poor.

 

[Lost_Wanderer]

Also, does the Church require that governments provide some form of aid for the unemployed or those in poverty? Thank you.

The Church doesn’t explicitly support any type of economy but it does outline the importance of helping those in need as well as helping oneself through good, honest work.

Complications will arise but hey, it’s a start.

 

[dmar198]

Hello, I had heard that Pope Francis had condemned unchecked capitalism and was wondering whether or not this is true and if the Catholic Church has any specific teachings regarding economics. I know that it talks about our duty to serve others; but does this extend to the government? I was just concerned as I am a supporter of free-market capitalism. Also, does the Church require that governments provide some form of aid for the unemployed or those in poverty? Thank you.

The Church has explicit teachings on the economy at the following link: [vatican.va/roman_curia/pontifical_councils/justpeace/documents/rc_pc_justpeace_doc_20060526_compendio-dott-soc_en.html#II. MORALITY AND THE ECONOMY](http://www.vatican.va/roman_curia/p...ce_doc_20060526_compendio-dott-soc_en.html#II. MORALITY AND THE ECONOMY)

I think you’ll be happy to hear all the praise it heaps on free market principles.

 

[wmw]

I’ll refer you to RERUM NOVARUM (On Capital and Labor) Encyclical of Pope Leo XIII promulgated on 15 May 1891.

Early in this Encyclical the Pope summarizes the oppression of the masses caused by unchecked Capitalism. In those times there were nearly zero regulations on business; so this time frame serves well as what even current Popes might mean by unfettered Capitalism.

That the spirit of revolutionary change, which has long been disturbing the nations of the world, should have passed beyond the sphere of politics and made its influence felt in the cognate sphere of practical economics is not surprising. The elements of the conflict now raging are unmistakable, in the vast expansion of industrial pursuits and the marvelous discoveries of science; in the changed relations between masters and workmen; in the enormous fortunes of some few individuals, and the utter poverty of the masses; in the increased self-reliance and closer mutual combination of the working classes; as also, finally, in the prevailing moral degeneracy.

Of course, later paragraph 15 he says the remedies being proposed totally ignore a number of human and family rights and puts down this paragraph as a condemnation of what we would call communism.

Hence, it is clear that the main tenet of socialism, community of goods, must be utterly rejected, since it only injures those whom it would seem meant to benefit, is directly contrary to the natural rights of mankind, and would introduce confusion and disorder into the commonweal. The first and most fundamental principle, therefore, if one would undertake to alleviate the condition of the masses, must be the inviolability of private property. This being established, we proceed to show where the remedy sought for must be found.

The next major transition in paragraph 19 is the introduction of a proposal that the Church be the arbiter between Capital and Labor.

Just as the symmetry of the human frame is the result of the suitable arrangement of the different parts of the body, so in a State is it ordained by nature that these two classes should dwell in harmony and agreement, so as to maintain the balance of the body politic. Each needs the other: capital cannot do without labor, nor labor without capital. Mutual agreement results in the beauty of good order, while perpetual conflict necessarily produces confusion and savage barbarity. Now, in preventing such strife as this, and in uprooting it, the efficacy of Christian institutions is marvelous and manifold. First of all, there is no intermediary more powerful than religion (whereof the Church is the interpreter and guardian) in drawing the rich and the working class together, by reminding each of its duties to the other, and especially of the obligations of justice.

In Paragraph 25 he states the conclusion of the collaboration of Capitalists and Laborers that might be brokered by the Church on the Christian principles he summarized in the intervening paragraphs.

But, if Christian precepts prevail, the respective classes will not only be united in the bonds of friendship, but also in those of brotherly love. For they will understand and feel that all men are children of the same common Father, who is God; that all have alike the same last end, which is God Himself, who alone can make either men or angels absolutely and perfectly happy; that each and all are redeemed and made sons of God, by Jesus Christ, “the first-born among many brethren”; that the blessings of nature and the gifts of grace belong to the whole human race in common, and that from none except the unworthy is withheld the inheritance of the kingdom of Heaven. “If sons, heirs also; heirs indeed of God, and co-heirs with Christ.”[22] Such is the scheme of duties and of rights which is shown forth to the world by the Gospel. Would it not seem that, were society penetrated with ideas like these, strife must quickly cease?

 

[wmw]

Then Pope Leo XIII also says what the proper role of the civil government should be in reference to economics.

…a State chiefly prospers and thrives through moral rule, well-regulated family life, respect for religion and justice, the moderation and fair imposing of public taxes, the progress of the arts and of trade, the abundant yield of the land—through everything, in fact, which makes the citizens better and happier. Hereby, then, it lies in the power of a ruler to benefit every class in the State, and amongst the rest to promote to the utmost the interests of the poor; and this in virtue of his office, and without being open to suspicion of undue interference—since it is the province of the commonwealth to serve the common good. And the more that is done for the benefit of the working classes by the general laws of the country, the less need will there be to seek for special means to relieve them.

1. There is another and deeper consideration which must not be lost sight of. As regards the State, the interests of all, whether high or low, are equal. The members of the working classes are citizens by nature and by the same right as the rich; they are real parts, living the life which makes up, through the family, the body of the commonwealth; and it need hardly be said that they are in every city very largely in the majority. It would be irrational to neglect one portion of the citizens and favor another, and therefore the public administration must duly and solicitously provide for the welfare and the comfort of the working classes; otherwise, that law of justice will be violated which ordains that each man shall have his due. To cite the wise words of St. Thomas Aquinas: “As the part and the whole are in a certain sense identical, so that which belongs to the whole in a sense belongs to the part.”[27] Among the many and grave duties of rulers who would do their best for the people, the first and chief is to act with strict justice—with that justice which is called distributive—toward each and every class alike.

1. But although all citizens, without exception, can and ought to contribute to that common good in which individuals share so advantageously to themselves, yet it should not be supposed that all can contribute in the like way and to the same extent. No matter what changes may occur in forms of government, there will ever be differences and inequalities of condition in the State. Society cannot exist or be conceived of without them. Some there must be who devote themselves to the work of the commonwealth, who make the laws or administer justice, or whose advice and authority govern the nation in times of peace, and defend it in war. Such men clearly occupy the foremost place in the State, and should be held in highest estimation, for their work concerns most nearly and effectively the general interests of the community. Those who labor at a trade or calling do not promote the general welfare in such measure as this, but they benefit the nation, if less directly, in a most important manner. We have insisted, it is true, that, since the end of society is to make men better, the chief good that society can possess is virtue. Nevertheless, it is the business of a well constituted body politic to see to the provision of those material and external helps “the use of which is necessary to virtuous action.”[28] Now, for the provision of such commodities, the labor of the working class—the exercise of their skill, and the employment of their strength, in the cultivation of the land, and in the workshops of trade—is especially responsible and quite indispensable. Indeed, their co-operation is in this respect so important that it may be truly said that it is only by the labor of working men that States grow rich. Justice, therefore, demands that the interests of the working classes should be carefully watched over by the administration, so that they who contribute so largely to the advantage of the community may themselves share in the benefits which they create—that being housed, clothed, and bodily fit, they may find their life less hard and more endurable. It follows that whatever shall appear to prove conducive to the well-being of those who work should obtain favorable consideration. There is no fear that solicitude of this kind will be harmful to any interest; on the contrary, it will be to the advantage of all, for it cannot but be good for the commonwealth to shield from misery those on whom it so largely depends for the things that it needs.

35 We have said that the State must not absorb the individual or the family; both should be allowed free and untrammeled action so far as is consistent with the common good and the interest of others. Rulers should, nevertheless, anxiously safeguard the community and all its members; the community, because the conservation thereof is so emphatically the business of the supreme power, that the safety of the commonwealth is not only the first law, but it is a government’s whole reason of existence; and the members, because both philosophy and the Gospel concur in laying down that the object of the government of the State should be, not the advantage of the ruler, but the benefit of those over whom he is placed. As the power to rule comes from God, …

Emphasis of Color and Bold formatting is mine, but in addition I must point out that he is speaking in terms of distributing to those who are striving to make what contribution with which they are able.

And almost forgot to provide a link:
ewtn.com/library/encyc/l13rerum.htm