Toward a Moral Economic Life
- ZENIT
The Compendium of the Social Doctrine of the Church dedicates a special chapter to look at economic activity in general. Like other chapters, it starts with an overview of some biblical principles.
In
the Old Testament, riches are seen as a blessing from God. Abundance is not seen
as a problem in itself, but there is strong condemnation for the misuse of material
goods fraud, usury, injustice especially when it is the poor who
suffer these abuses.
The other side of the coin, poverty, is seen as
part of the human condition. In this context the Old Testament calls upon people
to recognize their poverty before God. He, in turn, is portrayed as answering
the cries of the poor, who will receive their reward through a new David. "Poverty
takes on the status of a moral value when it becomes an attitude of humble availability
and openness to God, of trust in him" (No. 324).
In the New Testament,
Jesus calls for a conversion of hearts and to be attentive to the needs of others.
Working for justice and helping the poor is one way of building the Kingdom of
God.
In general, the Bible considers economic activity as part of the
vocation in which mankind is called upon to administer the gifts received from
God. The parable of the talents also teaches that "what has been received should
be used properly, preserved and increased" (No. 326).
Sharing
riches
Material goods, even when they are the legitimate property
of someone, retain their universal destination. "Riches fulfill their function
of service to man when they are destined to produce benefits for others and for
society" (No. 329).
This nexus between morality and economic life is
a constant in Church doctrine. "Just as in the area of morality one must take
the reasons and requirements of the economy into account, so too in the area of
the economy one must be open to the demands of morality" (No. 331).
The
Compendium suggests that morality and economic principles do have some points
in common. For example, producing goods in an efficient manner can be seen as
a moral duty, in the sense that not to do so would be a waste of resources. But
the production of wealth also needs a moral orientation, in order to ensure that
economic growth is distributed equitably and is guided by principles such as justice
and charity.
Economic activity carried out in this way becomes an opportunity
to practice solidarity and to build a more equitable society and a more humane
world. The Church also considers that terms such as development cannot be seen
merely in an economic dimension, as just accumulating goods. An exclusive concentration
on the material aspect risks falling into the error of consumerism and is not
the way to achieve authentic happiness.
Private
initiative
A section of the chapter on the economy spells
out the position of Church social doctrine regarding private initiative and business
activity. The freedom of people to engage in economic activity is "a fundamental
value and an inalienable right to be promoted and defended" (No. 336).
Initiative
in the economy is part of human creative activity and businesses also have an
important social role to play through producing goods and services. While this
role needs to be carried out according to economic criteria, the Compendium adds:
"the authentic values that bring about the concrete development of the person
and society must not be neglected" (No. 338).
In this context the Compendium
recalls that the Church has long supported family and small- to medium-sized businesses,
along with cooperative activities, which can make a valuable contribution to economic
and human life. In fact, economic activity provides an opportunity for the practice
of many virtues, such as diligence, prudence, fidelity and courage.
The
text also has positive words for the role of making profits, which are a sign
that the productive factors involved in the enterprise are being used well. However,
businesses must also serve society properly and this is not done when the obligations
of social justice or the rights of workers are violated.
The Compendium
also notes that in today's world individual states can find it difficult to govern
the operations of businesses and that this places on private enterprise a greater
responsibility to be open to the values of solidarity and authentic human development.
Serving
people
On the matter of the free market in general the Compendium
explains that it "is an institution of social importance because of its capacity
to guarantee effective results in the production of goods and services" (No. 347).
A truly competitive market, continues the text, "is an effective instrument for
obtaining important objectives of justice."
Nevertheless,
the Compendium adds that the ends of the common good and human development must
also be taken into account in a free market, and not just the profit motive. There
are important human needs and goods that cannot be bought and sold in the marketplace.
Regarding the role of the state in regulating the market the Compendium
invokes the application of two principles: solidarity and subsidiarity. Solidarity
is to stimulate actions to defend the weak and disadvantages; subsidiarity is
to guarantee that the state's intervention will not become overly invasive.
Over several numbers the Compendium insists that the state must not interfere
too much in the workings of the economy, thereby unduly restricting the liberties
of individuals and businesses. On the other hand, it also defends the legitimate
role of taxes and public spending, which play an important role, especially in
protecting the weak. Therefore, paying taxes is "part of the duty of solidarity"
(No. 355), but the state has the corresponding obligation to ensure that taxes
are "reasonable and fair," and that public resources are administered with "precision
and integrity."
Global dimension
The last part of
the chapter considers some of the recent developments related to globalization
and international financial markets. "Globalization gives rise to new hopes while
at the same time it poses troubling questions" (No. 362).
The Compendium
recognizes that globalization has opened up many opportunities, but expresses
concern over the inequalities between advanced economies and developing countries.
Citing John Paul II the text calls for a "globalization in solidarity" to deal
with this problem.
A more equitable system of international commerce,
and a strong defense of human rights are among the reforms called for by the Compendium.
Respecting cultural and religious differences and ensuring a greater solidarity
between generations are other points dealt with.
Regarding financial
markets, the text acknowledges their positive role in facilitating economic growth
and large-scale investments. However, there is a risk that the financial sector
will lose sight of serving human development and will become "an end unto itself."
And faced with the severe problems caused by financial instability, there is also
a need to make these markets more stable.
Globalization also requires
greater cooperation by states to coordinate the economy, given that individual
governments are often no longer able to exercise effective guidance. The Compendium
calls for the creation of "adequate and effective political and juridical instruments"
(No. 371) that will ensure "the common good of the human family."
Renewing
its call for solidarity, one of the concluding numbers observes that achieving
this will also bring benefits for richer countries, where the abundance of material
goods is often accompanied by "A sense of alienation and loss of their own humanity"
(No. 374). The chapter concludes by calling for educating people so they will
realize that economic activity must be seen in the wider human context.
Order
the Compendium
of the Social Doctrine of the Church, here.
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Acknowledgement
ZENIT is an International News Agency based in Rome whose mission is to provide objective and professional coverage of events, documents and issues emanating from or concerning the Catholic Church for a worldwide audience, especially the media.
Reprinted with permission from Zenit - News from Rome. All rights reserved.