InJesusItrust #20
First of all, Capitalism today does indeed involve usury.
With free enterprise as developed by the Catholic Late Scholastics, the Church defined what is meant by usury as far back as the fifteenth century.
Session X of the Fifth Lateran Council (1515) gave its exact meaning: “For that is the real meaning of usury: when, from its use, a thing which produces nothing is applied to the acquiring of gain and profit without any work, any expense or any risk.” Consequently, as loaning money did involve loss of profit to the lender and further risk of loss from delay in returning the money loaned, this did justify interest that is just and justifiable.
The failure to even understand, much less appreciate, that it is NOT free enterprise but PEOPLE who commit sins bedevils all who are so myopic.
What do you think free enterprise is?
The system developed by Catholics which best serves the needs of all.
Precisely what the acknowledged St John Paul II affirmed which has been explained in post #19:
“….an economic system which recognizes the fundamental and positive role of business, the market, private property and the resulting responsibility for the means of production, as well as free human creativity in the economic sector…”
The state welfarism and interference of governments has precipitated economic crisis after economic crisis since the horrific debacle of the 1920’s and ‘30’s in the U.S.
So in
Centesimus Annus, #49: “Apart from the family, other intermediate communities exercise primary functions and give life to specific networks of solidarity. These develop as real communities of persons and strengthen the social fabric, preventing society from becoming an anonymous and impersonal mass, as unfortunately often happens today. It is in interrelationships on many levels that a person lives, and that society becomes more ‘personalized’.”
Bl John Paul II shows us the destructive way which so many States have followed:
“By intervening directly and depriving society of its responsibility, the Social Assistance State leads to a loss of human energies and an inordinate increase of public agencies, which are dominated more by bureaucratic ways of thinking than by concern for serving their clients, and which are accompanied by an enormous increase in spending.
“In fact, it would appear that needs are best understood and satisfied by people who are closest to them and who act as neighbors to those in need. It should be added that certain kinds of demands often call for a response which is not simply material but which is capable of perceiving the deeper human need.”
Centesimus Annus, 1991, 48].
It is only the development of the economic laws of cause and effect by the Catholic Late Scholastics based on faith and reason which enabled the escape of many millions from the poverty existing before the enterprises that came with the “Industrial Revolution”. As with any new developments, unfortunately laws can be slow to follow, especially where reason and faith are confused or lacking.
Wealth can be distributed only after it is produced.
Unfortunately, with the rampant relativism and secularism in society and politics, the “protections” whether constraining investors, entrepreneurs, or employees will be imperfect, as with those nations that manipulate exchange rates to their advantage.