The Catechism on Capitalism vs. Socialism

[Thais]

Most people are very familiar with all the calls for charity and solidarity in the Church’s Social Justice Doctrine (which can be found in the Catechism in between the excerpts below).
But what most people aren’t familiar with, is the manner in which the Church calls us to fulfill our role as “neighbor”.
I expect most Catholics to know that a healthy Capitalism (without abuses) is the economic system accepted by the Church, and to also prefer this system personally themselves.
What’s not very well understood is the line between “healthy Capitalism” and Socialism, which has been continually increasing its dominion over Liberalism.

Breaking this post in 2 parts:

1936
On coming into the world, man is not equipped with everything he needs for developing his bodily and spiritual life. He needs others. Differences appear tied to age, physical abilities, intellectual or moral aptitudes, the benefits derived from social commerce, and the distribution of wealth. The “talents” are not distributed equally.

1937
These differences belong to God’s plan, who wills that each receive what he needs from others, and that those endowed with particular “talents” share the benefits with those who need them. These differences encourage and often oblige persons to practice generosity, kindness, and sharing of goods; they foster the mutual enrichment of cultures:

    I distribute the virtues quite diversely; I do not give all of them to each person, but some to one, some to others. . . . I shall give principally charity to one; justice to another; humility to this one, a living faith to that one. . . . And so I have given many gifts and graces, both spiritual and temporal, with such diversity that I have not given everything to one single person, so that you may be constrained to practice charity towards one another. . . . I have willed that one should need another and that all should be my ministers in distributing the graces and gifts they have received from me.

2402
In the beginning God entrusted the earth and its resources to the common stewardship of mankind to take care of them, master them by labor, and enjoy their fruits. The goods of creation are destined for the whole human race. However, the earth is divided up among men to assure the security of their lives, endangered by poverty and threatened by violence. The appropriation of property is legitimate for guaranteeing the freedom and dignity of persons and for helping each of them to meet his basic needs and the needs of those in his charge. It should allow for a natural solidarity to develop between men.

2425
The Church has rejected the totalitarian and atheistic ideologies associated in modern times with “communism” or “socialism.” She has likewise refused to accept, in the practice of “capitalism,” individualism and the absolute primacy of the law of the marketplace over human labor. Regulating the economy solely by centralized planning perverts the basis of social bonds; regulating it solely by the law of the marketplace fails social justice, for “there are many human needs which cannot be satisfied by the market.” Reasonable regulation of the marketplace and economic initiatives, in keeping with a just hierarchy of values and a view to the common good, is to be commended.

2427
Human work proceeds directly from persons created in the image of God and called to prolong the work of creation by subduing the earth, both with and for one another. Hence work is a duty: “If any one will not work, let him not eat.” Work honors the Creator’s gifts and the talents received from him. It can also be redemptive. By enduring the hardship of work in union with Jesus, the carpenter of Nazareth and the one crucified on Calvary, man collaborates in a certain fashion with the Son of God in his redemptive work. He shows himself to be a disciple of Christ by carrying the cross, daily, in the work he is called to accomplish. Work can be a means of sanctification and a way of animating earthly realities with the Spirit of Christ.

2432
Those responsible for business enterprises are responsible to society for the economic and ecological effects of their operations. They have an obligation to consider the good of persons and not only the increase of profits. Profits are necessary, however. They make possible the investments that ensure the future of a business and they guarantee employment.

Continued…

 

[Thais]

Continuing…

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.”

2431
The responsibility of the state. “Economic activity, especially the activity of a market economy, cannot be conducted in an institutional, juridical, or political vacuum. On the contrary, it presupposes sure guarantees of individual freedom and private property, as well as a stable currency and efficient public services. Hence the principal task of the state is to guarantee this security, so that those who work and produce can enjoy the fruits of their labors and thus feel encouraged to work efficiently and honestly. . . . Another task of the state is that of overseeing and directing the exercise of human rights in the economic sector. However, primary responsibility in this area belongs not to the state but to individuals and to the various groups and associations which make up society.”

1885
The principle of subsidiarity is opposed to all forms of collectivism. It sets limits for state intervention. It aims at harmonizing the relationships between individuals and societies. It tends toward the establishment of true international order.

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.

1914
Participation is achieved first of all by taking charge of the areas for which one assumes personal responsibility: by the care taken for the education of his family, by conscientious work, and so forth, man participates in the good of others and of society.

1734
Freedom makes man responsible for his acts to the extent that they are voluntary. Progress in virtue, knowledge of the good, and ascesis enhance the mastery of the will over its acts.

 

[ribozyme]

What is Sweden, and Denmark then? Are they socialist?

 

[Thais]

Not entirely, as both seem to try to keep the market as free and without intervention as possible. But with the high taxation and welfare, which apparently they’ve been trying to reduce in the past decade, there’s still a strong influence of socialism.
It seems they are moving the opposite direction we’re headed. Good for them.

 

[steveandersen]

What is Sweden, and Denmark then? Are they socialist?

Denmark is the happiest place on earth