Its seems we have found a principle that both conservatives and liberals can rejoice in and affirm. And that is good. We liberal, too, greatly affirm the Church’s social understanding of subsidiarity.
To give a better context of the Church’s thinking on this, let me give a larger selection from the CCC:
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The Communal Character of the Human Vocation
1879 The human person needs to live in society. Society is not for him an extraneous addition but a requirement of his nature. Through the exchange with others, mutual service and dialogue with his brethren, man develops his potential; he thus responds to his vocation.
2
1880 A society is a group of persons bound together organically by a principle of unity that goes beyond each one of them. As an assembly that is at once visible and spiritual, a society endures through time: it gathers up the past and prepares for the future. By means of society, each man is established as an “heir” and receives certain “talents” that enrich his identity and whose fruits he must develop.
3 He rightly owes loyalty to the communities of which he is part and respect to those in authority who have charge of the common good.
1882 Certain societies, such as the family and the state, correspond more directly to the nature of man; they are necessary to him. To promote the participation of the greatest number in the life of a society, the creation of voluntary associations and institutions must be encouraged "on both national and international levels, which relate to economic and social goals, to cultural and recreational activities, to sport, to various professions, and to political affairs."
5 This “socialization” also expresses the natural tendency for human beings to associate with one another for the sake of attaining objectives that exceed individual capacities. It develops the qualities of the person, especially the sense of initiative and responsibility, and helps guarantee his rights.
6
1883 Socialization also presents dangers. Excessive intervention by the state can threaten personal freedom and initiative. the teaching of the Church has elaborated the principle of subsidiarity, according to which "a community of a higher order should not interfere in the internal life of a community of a lower order, depriving the latter of its functions, but rather should support it in case of need and help to co-ordinate its activity with the activities of the rest of society, always with a view to the common good."
7
1893 Widespread participation in voluntary associations and institutions is to be encouraged.
1894 In accordance with the principle of subsidiarity, neither the state nor any larger society should substitute itself for the initiative and responsibility of individuals and intermediary bodies. **