This encyclical contains much to give the Catholic heart, devoted to Catholic social teaching, immense joy. Pope Benedict XVI states clearly and unequivocally a number of propositions that make those dedicated to Catholic social teaching very happy, and others very unhappy.
The Pope states first and foremost the basis for all of the Church’s social teaching, a basis which one could easily derive from the title of the document: charity. “Charity,” the Pope declares, “is at the heart of the Church’s social doctrine.”[1] Not some cold, detached vision of an economic “science”; not some abstract notion of the inevitable progress of history; charity, pure and simple. In so saying, the Pope clearly and explicitly distances Catholic social teaching from capitalism and socialism in all their many forms. When the Church thinks about economics and other social matters, her primary concern is not efficiency, liberty, or any of the buzzwords of materialistic economic thinking. It is charity, pure and simple.
Furthermore, since the Church’s social teaching is based fundamentally on charity, the Pope reaffirms what the Church has always taught: that economic and political matters are unquestionably within the jurisdiction of the Church. The first of the great economically-focused social encyclicals, Leo XIII’s Rerum Novarum, thought the subject so obviously within the Church’s purview that he asserted her authority over it with little argument:
We approach the subject with confidence and surely by Our right… [because] the question under consideration is certainly one for which no satisfactory solution will be found unless religion and the Church have been called upon to aid.[2]
Pius XI clearly reaffirmed the Church’s authority in such matters, stating that “both social and economic questions [must] be brought within Our supreme jurisdiction,”[3] and John Paul II went so far as to teach that the Church’s social doctrine “is an essential part of the Christian message.”[4] While some have managed, even when confronted with all these pronouncements, to continue to deny with a straight face that the Church has authority in the economic realm, Pope Benedict’s clear statement provides additional support for that clearly correct proposition.
Of course, His Holiness makes it very clear that he is offering only principles of social thought, not specific and technical solutions. “The Church does not have technical solutions to offer. . . She does, however, have a mission of truth to accomplish, in every time and circumstance, for a society that is attuned to man, to his dignity, to his vocation.”[5] However, the Church’s obligation to present this social teaching, and her authority within this realm, he defends with every bit of the strength of his predecessors, proclaiming that the Church’s “social doctrine is a particular dimension of this proclamation [of Christ]: it is a service to the truth which sets us free.”[6]
The Pope also argues that the Church’s social doctrine is not really separable from Christianity.[7] He argues that “adhering to the values of Christianity is not merely useful but essential for building a good society and for true integral human development.”[8] While some later statements in the encyclical make this statement questionable, in principle, here if not elsewhere, the Pope reaffirms the necessity of acknowledging Christ the King in any truly just social order.
The Pope then proceeds to identify two absolutely essential linchpins of Catholic social thought: justice and the common good. While His Holiness never defines justice, a regrettable omission to be sure, it is clear from his treatment of it that he accepts the traditional definition; namely, giving to each what is his due. This, in particular, is distributive justice, that specific type of justice from which distributism takes its name. The Pope observes that charity, which he’d previously identified as the root of Catholic social teaching, goes beyond justice; however, he further observes that justice is the minimum required by charity.[9] Justice being the minimum of charity, it’s clear that meeting the requirements of justice is absolutely necessary for an economic system to conform to Catholic social teaching.
Next is the common good, a concept thoroughly rooted in Catholic social teaching and much abused by modern philosophers. The “common good,” His Holiness teaches, is “a good that is linked to living in society.”[10] It is not merely the good of each individual living in society; it includes individuals, families, and all subsidiary corporations, including the workingmen’s associations which he addresses much later on in the encyclical. “It is the good of ‘all of us’, made up of individuals, families and intermediate groups who together constitute society.”[11] His Holiness proceeds even further, sounding almost Aristotelian on the subject:
[F]or the people who belong to the social community . . . [they] can only really and effectively pursue their good within it. To desire the common good and strive towards it is a requirement of justice and charity. . . . This is the institutional path — we might also call it the political path — of charity, no less excellent and effective than the kind of charity which encounters the neighbor directly, outside the institutional mediation of the polis.[12]
In other words, seeking the common good is nothing other than seeking charity on a political level. It is not, as so many modern thinkers will have it, merely seeking the greatest good for the greatest number; it is specifically ensuring justice within society—namely, that everyone receives what is his due—which itself includes charity, which goes beyond justice in seeking the good of everyone, including families and other corporations subsidiary to the state. Outside of the society, His Holiness teaches, man cannot effectively pursue his good; it is necessary, therefore, that society be geared toward assisting him toward that end.
And therein, of course, lies the crux of his disagreement with so many worldly economists and other social thinkers: His Holiness believes, and unabashedly proclaims, that society must be designed around the entirety of man, not merely his material well-being. He says so quite explicitly:
[A]uthentic human development concerns the whole of the person in every single dimension. Without the perspective of eternal life, human progress in this world is denied breathing-space. Enclosed within history, it runs the risk of being reduced to the mere accumulation of wealth; humanity thus loses the courage to be at the service of higher goods, at the service of the great and disinterested initiatives called forth by universal charity.[13]
One can already hear the vehement protests from “Austrians” and all other stripes of modern thinkers. What do you mean, human development needs to include “the perspective of eternal life” or “it runs the risk of being reduced to the mere accumulation of wealth”? Economics is all about the mere accumulation of wealth! The Pope, of course, disagrees.
[P]rogress of a merely economic and technological kind is insufficient. Development needs above all to be true and integral. The mere fact of emerging from economic backwardness, though positive in itself, does not resolve the complex issues of human advancement.[14]
Catholic social teaching is after more than merely helping people get microwaves and flat-screen televisions; it’s after achieving justice and the common good and motivated by charity. That’s what separates it from modern social thinking, and that’s what makes modern thinkers despise it.
Human development (by which he means social and economic improvement, among other things, as he explains in some detail in no. 21) isn’t just about getting more material stuff; it’s about assisting real, living human persons toward their salvation, their “eternal life.” That is why justice and the common good are the cornerstones of Catholic social thought; that is why charity is the viewpoint through which all social efforts must be analyzed; and that is why modern economists of all varieties hate Catholic social teaching and hate this encyclical. In this respect, it reaffirms the constant and perennial social teaching of the Catholic Church; as such, it is their enemy, but the distributist’s friend.
On more particular matters, His Holiness says many things that makes the distributist’s heart rejoice. He observes, for example, that technological progress is not a good in itself; rather, it requires analysis and circumspection.
Paul VI had already warned against the technocratic ideology so prevalent today, fully aware of the great danger of entrusting the entire process of development to technology alone, because in that way it would lack direction. Technology, viewed in itself, is ambivalent.[15]
So when modern economists tell us not to worry about the constant hemorrhaging of traditional jobs in agriculture and manufacturing because new jobs in computers and other new industries which Americans can do “more efficiently” will inevitably take their place, distributists have some further support for their skepticism.
The Pope further opposes the “Austrian” economists’ favorite idol, the profit motive, when considered as an end in itself. In these cases, the profit motive only furthers poverty and worsens the lot of the poor. “Profit,” His Holiness states, “is useful if it serves as a means towards an end that provides a sense both of how to produce it and how to make good use of it. Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty.”[16] In other words, when profit is sought for the common good, with due regard for its just distribution, it is good; however, when profit is sought without regard for these considerations and solely for some private good, it ceases to be helpful. The desire for profit must have “the common good as its ultimate end”; otherwise, it is untethered from its purpose, and like anything else so untethered will run amuck to society’s disadvantage.
The Pope further laments “the damaging effects on the real economy of badly managed and largely speculative financial dealing.”[17] Distributists, who advocate a return of the real economy to primacy, will appreciate his words on this subject. Finance, he continues, “needs to go back to being an instrument directed towards improved wealth creation and development.”[18] It needs to be responsible finance, at the service of the real economy, not an independent economy on its own. The financial sector requires not only an internal conscience, but also external regulation to be appropriately directed toward the common good:
Both the regulation of the financial sector, so as to safeguard weaker parties and discourage scandalous speculation, and experimentation with new forms of finance, designed to support development projects, are positive experiences that should be further explored and encouraged, highlighting the responsibility of the investor.[19]
Whatever the particular form of the financial sector, usury must be avoided, and the poor and weak must be provided with means to protect themselves against it.[20] The condemnation of usury here is a welcome addition to the encyclical.
Further along these lines, Pope Benedict follows his predecessors in discussing the free market, and approving of it only in a limited way. He notes that the economy in general involves moral, not value-neutral, choices:
[T]he conviction that the economy must be autonomous, that it must be shielded from “influences” of a moral character, has led man to abuse the economic process in a thoroughly destructive way. In the long term, these convictions have led to economic, social and political systems that trample upon personal and social freedom, and are therefore unable to deliver the justice that they promise.[21]
The Pope then proceeds to acknowledge that free markets in particular do offer some advantages, but notes that this approving verdict, which after all only echoes prior decisions in past encyclicals,[22] is not unconditional:
Economic activity cannot solve all social problems through the simple application of commercial logic. This needs to be directed towards the pursuit of the common good, for which the political community in particular must also take responsibility. Therefore, it must be borne in mind that grave imbalances are produced when economic action, conceived merely as an engine for wealth creation, is detached from political action, conceived as a means for pursuing justice through redistribution.[23]
In other words, free markets are wonderful, provided that they are subordinated to the pursuit of the common good. They are not a goal in themselves, nor are they the “value-free” means of guaranteeing efficient production that capitalists often tout them to be:
It must be remembered that the market does not exist in the pure state. It is shaped by the cultural configurations which define it and give it direction. Economy and finance, as instruments, can be used badly when those at the helm are motivated by purely selfish ends.[24]
Markets are not and cannot be value-free. They are good when used properly; they are disastrous when not directed by the political system toward the common good. The encyclical makes its approval of markets very clearly conditional upon them being “structured and governed in an ethical manner.”[25]
Finally, the Pope speaks at some length on the proper role of the state in the economy. Now, Popes have long held that the state has an important and active role in a well-ordered economy, specifically in ensuring that all the private interests in the state, whether of individuals or of subsidiary corporations, are directed overall to the common good. Pius XI explained it this way:
It follows from the twofold character of ownership, which We have termed individual and social, that men must take into account in this matter, not only their own advantage, but also the common good. To define in detail these duties, when the need occurs and when the natural law does not do so, is the function of the government.[26]
This was extended by John Paul II, who even spoke approvingly, as a prudential matter, of the welfare state in this regard,[27] though he also identified its problems, ascribing them mainly to a neglect of the principle of subsidiarity.[28] His Holiness Pope Benedict takes up this question again, and provides a great deal of food for distributist thought in the process.
In the first place, the necessity and goodness of state involvement in the economy is taken for granted; Pope Benedict does not defend the proposition, nor does he need to, since the question had already been settled beyond question at least as early as Rerum Novarum.[29] However, His Holiness makes quite clear that current modes of state involvement need to be reconsidered:
[A]s we take to heart the lessons of the current economic crisis, which sees the State’s public authorities directly involved in correcting errors and malfunctions, it seems more realistic to re-evaluate their role and their powers, which need to be prudently reviewed and remodelled so as to enable them, perhaps through new forms of engagement, to address the challenges of today’s world.[30]
This, however, is a practical question, not a theoretical question about whether government involvement is necessary at all. Such involvement is clearly necessary, part of the proper role of government, even if its current role needs to be rethought.
Specific involvement that needs to be reconsidered is the government’s role in outsourcing and its relations to trade unions. Outsourcing of jobs to cheaper labor markets has resulted in governments competing for foreign investment by setting up “favourable fiscal regimes and deregulation of the labour market.”[31] This, the Pope observes, has had “consequent grave danger for the rights of workers, [and] for fundamental human rights.”[32] Furthermore, “trade union organizations experience greater difficulty in carrying out their task of representing the interests of workers, partly because Governments, for reasons of economic utility, often limit the freedom or the negotiating capacity of labour unions.”[33] This last is perhaps the worst of all the effects of this competition for worker exploitation, because it violates what has been one of the most consistent prescriptions of the Church for the world’s economic ills, the need for workmen’s associations:
The repeated calls issued within the Church’s social doctrine . . . for the promotion of workers’ associations that can defend their rights must therefore be honoured today even more than in the past, as a prompt and far-sighted response to the urgent need for new forms of cooperation at the international level, as well as the local level.[34]
The loss of worker’s rights, along with the increasing mobility of labor that deregulation has facilitated, have made the formation of stable families more difficult, as well. It has also resulted in comparatively uncertain and unsteady employment for many workers, which leads to “[b]eing out of work or dependent on public or private assistance for a prolonged period,” which in turns causes “great psychological and spiritual suffering.”[35] All in all, the entire situation—the competition among nations to set up environments most exploitative of the worker being the root issue—requires serious reform, a reform that distributism, founded as it is upon producing stable and independent workers, is well-suited to undertake.
Finally, though papal encyclicals have often focused on the industrial worker (not neglecting their agricultural brethren), Pope Benedict keeps agriculture and the farmer in their proper place, as an equal partner to the factories in the production of wealth. His words for the agricultural situation are stern. Agricultural needs reform, and that reform
needs to be accomplished with the involvement of local communities in choices and decisions that affect the use of agricultural land. In this perspective, it could be useful to consider the new possibilities that are opening up through proper use of traditional as well as innovative farming techniques, always assuming that these have been judged, after sufficient testing, to be appropriate, respectful of the environment and attentive to the needs of the most deprived peoples. At the same time, the question of equitable agrarian reform in developing countries should not be ignored.[36]
Pope Benedict wisely refuses to get involved in the many disputes about modern agricultural practices—chemical as opposed to organic, large-scale as opposed to small-scale, and so on—and simply notes general principles; namely, that traditional methods should be remembered, but that new techniques should not be neglected, and most of all that subsidiarity must be respected. The Pope’s adamant insistence on the involvement of local communities, rather than top-down reform, is a thoroughly distributist aspect of his teaching; indeed, at one point he even declares that localism is an appropriate standard for determining good investments,[37] a striking endorsement of the subsidiarity that his predecessors have always strongly supported.
Many other constant themes of distributist thought appear in and are defended by this encyclical. His Holiness specifically defends the concept of the just wage, for example, stating that poverty often arises in societies “because a low value is put on work and the rights that flow from it, especially the right to a just wage and to the personal security of the worker and his or her family.”[38] He further supports the concept of workmen’s associations, as already noted above, with some specificity, though he refers specifically to labor unions, which are probably not the notion that Leo XIII and Pius XI were explicating. The Pope praises workmen’s associations for “their necessary activity of defending and promoting labour, especially on behalf of exploited and unrepresented workers, whose woeful condition is often ignored by the distracted eye of society.”[39] He also argues forcefully for taking into account local cultures when trying to aid them economically.[40]
The Pope further warns against the overextension of welfare policies; if solidarity—which in this case means social assistance programs—fail to take into account subsidiarity, or vice versa, it will descend into “paternalistic social assistance” or “social privatism.”[41] Too much social assistance, or social assistance done badly, “can sometimes lock people into a state of dependence and even foster situations of localized oppression and exploitation in the receiving country.”[42] (Here the Pope applies this specifically to foreign aid, but the argument is easily applicable to domestic assistance, as well.) One can recognize Belloc’s warnings about the welfare state in the Pope’s concerns here.
Finally, the Pope brings up modernity’s worst violation of proper social principles, its consistent violation of the principles of life. “Openness to life,” the Pope teaches, “is at the centre of true development.”[43] Only a respect for life will allow societies to “promote virtuous action within the perspective of production that is morally sound and marked by solidarity, respecting the fundamental right to life of every people and every individual.”[44] Yet states continue to permit or compel violations of life, often justified by trumped-up concerns of population growth. “Against such policies, there is a need to defend the primary competence of the family in the area of sexuality.”[45] In other words, until our society defends the family and abandons abortion, contraception, euthanasia, and its many other offenses against life, true development—the implementation of Catholic social teaching—is impossible.
Space does not permit a complete exposition of the many good aspects of this encyclical. Pope Benedict offers a great deal of new insight and wisdom to Catholic social teaching, insight and wisdom which reinforces the principles that distributism has derived from past encyclicals and advocated for over a century. The reader is encouraged to read the encyclical itself to see some of these; the author also intends to update his own Distributism: A Catholic System of Economics to reflect them. It will take many years for the depths of this encyclical to be fully plumbed, and all distributists, not to mention all Catholics, should be grateful to the Pope for his insight.
Pope Benedict’s insight is not limited, however, to reaffirming and reapplying the teachings of his predecessors. It includes some responses to new economic challenges, responses which the Pope formulated by relying firmly on traditional Catholic social principles. To these insights I will now turn my attention.
Footnotes for Part I:
1. Benedict XVI, Caritas in Veritate, no. 2.
2. Leo XIII, Rerum Novarum, no. 24.
3. Pius XI, Quadragesimo Anno.
4. John Paul II, Centesimus Annus, no. 5.
5. Benedict XVI, Caritas in Veritate, no. 9.
6. Id.
7. But the encyclical is ambiguous on this question. See Part IV of this series.
8. Benedict XVI, Caritas in Veritate, no. 4.
9. Benedict XVI, Caritas in Veritate, no. 6.
10. Benedict XVI, Caritas in Veritate, no. 7.
11. Id.
12. Id.
13. Benedict XVI, Caritas in Veritate, no. 11.
14. Benedict XVI, Caritas in Veritate, no. 23.
15. Benedict XVI, Caritas in Veritate, no. 14.
16. Benedict XVI, Caritas in Veritate, no. 21.
17. Id.
18. Benedict XVI, Caritas in Veritate, no. 65.
19. Id.
20. Id.
21. Id., no. 34.
22. John Paul II, for example, noted that the market “[seems to be] the most efficient instrument for utilizing resources and effectively responding to needs. But this is true only for those needs which are ‘solvent,’ insofar as they are endowed with purchasing power, and for those resources which are ‘marketable,’ insofar as they are capable of obtaining a satisfactory price.” Centestimus Annus, no. 34.
23. Benedict XVI, Caritas in Veritate, no. 36.
24. Id., no. 36.
25. Id.
26. Pius XI, Quadragesimo Anno.
27. John Paul II, Centestimus Annus, no. 48 (he refers to it as the “Social Assistance State”).
28. Id.
29. Leo XIII, Rerum Novarum, no. 52 (stating that individuals only have freedom to use their possessions as they will “so far as this is possible without jeopardizing the common good and without injuring anyone”).
30. Benedict XVI, Caritas in Veritate, no. 24.
31. Id.
32. Id.
33. Id.
34. Id.
35. Id.
36. Id., no. 27.
37. Id., no. 40.
38. Id., no. 63.
39. Id., no. 64.
40. Id., no. 59.
41. Id., no. 58.
42. Id.
43. Id., no. 28.
44. Id.
45. Id., no. 44.
Praise be to Christ the King!