But
there is a sense that the Pope has chosen these words not only as a result of
cold calculation or intellectual reflection; beyond what makes sense in his rational
mind, the Holy Father also feels their force and himself carries their
emotional power. The “sacralized workings of the prevailing economic system” is
a phrase that blows to the reader more than a whisper of the rasping voices of
militant groups occupying the streets and bridges of Manila and the campus of
the University of the Philippines Diliman, crying that “those wielding economic
power” are “lacking a truly human purpose.” Those voices have been amplified in
fact by some members of The Economizer’s family, who denounce “the culture of
prosperity” that results in “widespread corruption” and aided by “self-serving
tax evasion”. In a Catholic country such as the Philippines, it is not outsiders
who say that “trickle-down theories … encouraged by a free market” tend “to
devour everything which stands in the way of increased profits”: it is the
priests at Mass who give voice to this Marxist sentiment during homily.
How to
reconcile this sentiment to The Economizer’s stated animating force -- Catholicism
enabling capitalism -- is the real purpose of this post. This is done in three
ways. First, this post tries to set the Church’s social doctrine against the economic
evidence supporting capitalism. Second, it points out enlightening portions of
Pope Francis’s Exhortation. Third, it offers a final synthesis.
Catholic
social doctrine in the free market
First,
it must be said that in all truth, the only system to have been proven—time and
again—to alleviate the lot of the poor by any measure is capitalism. It can be
easily detailed how those obsessed by wealth redistribution have misapprehended
the evidence:
- The Wall Street Journal points out that although inequality in money income has dramatically widened in the
United States, inequality in total income including transfer payments has “actually
declined 1.8% during the 16-year period between 1993 and 2009, when the Gini
coefficient dropped from .395 to .388.”
- Socialists such as President Barack Obama love to say that the middle class is “falling behind”. But the “real concern is that some people were getting too far ahead.” “With respect to upward mobility, longitudinal studies conducted by the U.S. Treasury have found that there was ‘considerable income mobility’ in the decades 1987-1996 and 1996-2005. For example, roughly half of those in the bottom income quintile in 1996 had moved to a higher quintile by 2005. The ‘median incomes of those initially in the lowest income groups increased more in percentage terms than the median incomes of those in the higher income groups’ in that decade, while the real incomes of two-thirds of all taxpayers experienced an increase.”
- The main point is: “In periods of high economic growth, such as the 1980s and 1990s, the vast majority of [people] gain, and have the opportunity to gain. In periods of slow growth, such as the past four and a half years since the recession officially ended, poor people and the middle class are hurt the most, and opportunity is curbed.” Sustainable economic growth, in case anybody has forgotten the first part of this blog post, is only possible in a free market.
But
the phrasing of the criticism of the free market in EG marks the Pope out as an
outsider to “the prevailing economic system”. The criticism is not of the
details, but of the perception of the free market as a dog-eat-dog world, “survival
of the fittest”, etc. This is a broad criticism, and to respond to it is to
take a broader view of capitalism.
Let us
be clear that EG espouses “the right of states … to exercise [a] form of
control” over free-market activities. But to the shock of the generation that
achieved political maturity during and after Reagan and Thatcher, it is also
clear that this espousal is consistent with Catholic social doctrine. In this light-hearted
blog post, the author Thomas Storck compares quotations from EG to previous
papal letters and encyclicals. Here is a sampling:
Leo
XIII, Rerum Novarum, #3:
“Hence
by degrees it has come to pass that Working Men have been given over, isolated
and defenseless, to the callousness of employers and the greed of unrestrained
competition.”
Leo
XIII, Rerum Novarum, #47:
“On
the one side there is the party which holds the power because it holds the
wealth; which has in its grasp all labor and all trade; which manipulates for
its own benefit and its own purposes all the sources of supply, and which is
powerfully represented in the councils of the State itself. On the other side
there is the needy and powerless multitude, sore and suffering, always ready
for disturbance.”
Pius
XI, Quadragesimo Anno, #88:
“Just
as the unity of human society cannot be built upon “class” conflict, so the
proper ordering of economic affairs cannot be left to the free play of rugged
competition. From this source, as from a
polluted spring, have proceeded all the errors of the ‘individualistic’
school. This school, forgetful or
ignorant of the social and moral aspects of economic activities, regarded these
as completely free and immune from any intervention by public authority, for
they would have in the market place and in unregulated competition a principle
of self-direction more suitable for guiding them than any created intellect which
might intervene. Free competition,
however, though justified and quite useful within certain limits, cannot be an
adequate controlling principle in economic affairs. This has been abundantly proved by the
consequences that have followed from the free rein given to these dangerous
individualistic ideas.”
Pius XII, “Address to International Foundry
Congress,” September 28, 1954:
“The
demands of competition, which is a normal consequence of human liberty and
ingenuity, cannot be the final norm for economics.”
John Paul II, Centesimus Annus, #35:
“Such
a society [“a society of free work, of enterprise and of participation”] is not
directed against the market, but demands that the market be appropriately
controlled by the forces of society and by the State, so as to guarantee that
the basic needs of the whole of society are satisfied.”
John
Paul II, Centesimus Annus, #40:
“It is
the task of the State to provide for the defense and preservation of common
goods such as the natural and human environments, which cannot be safeguarded
simply by market forces.”
John
Paul II, Centesimus Annus, #42:
“…there
is a risk that a radical capitalistic ideology could spread which refuses even
to consider these problems, in the a priori belief that any attempt to solve
them is doomed to failure, and which blindly entrusts their solution to the
free development of market forces.”
John Paul II, Centesimus Annus, #56:
“The Western countries … run the risk of
seeing [the collapse of Communism] as a one-sided victory of their own economic
system, and thereby failing to make necessary corrections in that system.”
Evangelii
Gaudium is not a radical departure from the sayings of previous Popes; it is in
fact a mild version of their teachings. But what runs constant throughout these
passages is not a call to arms against the “individualistic” capitalism of
Western civilization. It is, instead, a concern for those who are not in a
position to reap the rewards of such a civilization: those who are too
illiterate to know the laws of the free market; those who are too ill to work;
those who would suffer first and foremost from environmental destruction—the indigenous
tribes, and those who take their living from the natural bounty of the seas,
rivers, woods and farmlands of nature. As Pope Francis’s sub-headings put it, “No
to an economy of exclusion”, “No to the new idolatry of money”, “No to a
financial system that rules rather than serves”, and “No to the inequality
which spawns violence”.
If
competition, which is but “a normal consequence of human liberty and ingenuity”,
results in first the exclusion and then the destruction of certain groups of
people, then individual men and women—not “other” political leaders and least
of all “society” in general—must intervene to protect the vulnerable. This is
not a cry for socialism, but simply a response to a call made a long time ago: “Come,
you who are blessed by my Father; take your inheritance, the kingdom prepared
for you since the creation of the world. For I was hungry and you gave me
something to eat, I was thirsty and you gave me something to drink, I was a stranger
and you invited me in, I needed clothes and you clothed me, I was sick and you
looked after me, I was in prison and you came to visit me” (Mt 25:34-36).
In no
way is this a call for an alternative economic system. No other system is
capable of lifting people out of poverty; Communist China and Vietnam have seen
their poverty ameliorated only when they adopted the capitalist ways of their
former enemies in the West. However, capitalism frequently leads to the abuse
of vulnerable people, and Catholic doctrine calls for political leaders to
exercise regulation of economic activity in a way that prevents this abuse. The
broad challenge is for free-marketers to acknowledge the strong possibility of
market failures, and to accept reasonable regulation.
But
the broad challenge to capitalism is also a personal challenge to some. The Economizer's day job is one in support of the struggle against poverty, but uses the latest
tools of capitalist finance: bonds and derivatives. Because these tools operate
only under the capitalist principles derided in EG, should this work stop,
then? Of course not. The author’s work is really a living, breathing proof that
the free market exists to help those in need, not to destroy their basic
humanity—not “to devour everything which stands in the way of increased profits”,
but to deploy those very profits to help those who cannot stand on their own.
But
more to the point, nothing in the Magisterium contradicts the fact that
free-market principles are the only way to make a decent, honest living this
side of Creation. During the Cold War, the people of Eastern Europe fought for
freedom, including the freedom to acquire private property and to spend one’s
hard-earned wage in one’s own way. Among their inspiration was Pope John Paul
II, and in 1989 and 1990 they finally triumphed, bringing about the collapse of
the Soviet Union.
Since
the Soviet Union was the ultimate example of “the right of states … to exercise
[a] form of control” over the economy, was it wrong to fight against it?
Enlightening
portions of Evangelii Gaudium
This
is not merely a facile statement, because it leads to a more important
question: what does Pope Francis really want to see as an alternative to
capitalism? Simple: he just wants to include the poor in society. It is right
there, in Chapter Four, Roman numeral II: “Our faith in Christ, who became
poor, and was always close to the poor and the outcast, is the basis of our
concern for the integral development of society’s most neglected members.”
What
is the correct response to this concern? It is to be “docile and attentive to
the cry of the poor and to come to their aid” (S. 187) And how do we come to
their aid? By showing our “mercy.” And how do we show our mercy? By almsgiving.
(S. 193)
The
Holy Father brooks no argument here: “This message is so clear and direct, so
simple and eloquent, that no ecclesial interpretation has the right to relativize
it.” (S. 194) Charity done in good faith is a way of atoning for our sins.
This
is because “God’s heart has a special place for the poor.” (S. 197) If individual
men and women help the poor through almsgiving, it is a way of getting closer
to God. But Christians must be permitted to ask: why?
The
Virgin Mary’s many apparitions in France, Mexico, Portugal, and other countries,
has never happened before the wealthy. The Savior was born in a manger;
Jesus associated with fishermen in the Sea of Galilee, among the poorest in
Hebrew society then, as recently excavated fishing boats revealed; the examples
are without end.
Why?
The Economizer proposes that God is
in the poor because they have the attitude of the poor, not because they are
materially poor. When you have nothing in the way of worldly treasures, it is
easier for you to be humble, and easier for you to welcome God’s help. But the
challenge does not belong to the poor; it is more for the rich, that they may
have the same attitude and outlook as the poor—humble in the knowledge that “there
but for the grace of God go I.”
Pope
Francis has a different idea. “This is why I want a Church which is poor and
for the poor. They have much to teach us. Not only do they share in the sensus fidei, but in their difficulties
they know the suffering Christ.” (S. 198)
But it should not be the case that material deprivation is a cause for celebration by itself. Poverty
should be looked upon not simplistically and materialistically, but more
fundamentally and spiritually: as gaining for the poor the humility of heart that is the only
way to receive the gift of faith. There is nothing romantic about poverty; but
there is something spiritual about it.
Pope
Francis further calls for “appreciating the poor in their goodness, in their
experience of life, in their culture, and in their ways of living the faith.”
(S. 199) But this simply bears out the observation that it is not material
deprivation that justifies the “preferential option for the poor”, but the
interior realities of humility, contriteness, and hope, which should be our example
in “living the faith”.
What
this inclusion of the poor really means in practice, according to Pope Francis, is giving them spiritual
care (“the worst discrimination which the poor suffer is the lack of spiritual
care.”) (S. 200) But this raises the question, what about material care?
There
is nothing here about material care. Even though it is material poverty that distinguishes the manger, the lowly maiden Mary, and Nazareth itself, it is “spiritual care” that is most needed by people in poverty. That is the meaning of the inclusion of the poor.
But The Economizer is of the opposite persuasion. Because it is the spiritual dimension of
poverty that makes it a fertile ground for receiving the gift of faith, it is spiritual care that must be applied most readily by the community of believers. Caring for their long-term material welfare—and talking about material deprivation—in
all honesty, can only happen with free-market principles, and it is a completely separate question.
In
sum, Pope Francis talks about the material deprivation of the poor as the
Church’s paramount concern in today’s economy, but his main gift to them is
spiritual care. Free-market analysis arrives at the conclusion that it is the spiritual
dimension of poverty that gives it “a special place in God’s heart”, but what the free market can give is only material advancement, not spiritual
nourishment.
Pope
Francis carries this paradox further, saying that “the need to resolve the
structural causes of poverty cannot be delayed” (S. 202).
As
long as the problems of the poor are not radically resolved by rejecting the
absolute autonomy of the markets and financial speculation and by attacking the
structural causes of inequality, no solution will be found for the world’s
problems or, for that matter, to any problems. Inequality is the root of social
ills. (S. 202)
Almost
every word of this passage offends the sensibilities of the capitalist. But let
us first read on to know where this is coming from. It is driven, according to
EG, by “a God who demands a commitment to justice.” (S. 203)
We can
no longer trust in the unseen forces and the invisible hand of the market. Growth
in justice requires more than economic growth, while presupposing such growth:
it requires decisions, programs, mechanisms and processes specifically geared
to a better distribution of income, the creation of sources of employment and
an integral promotion of the poor … (S. 204)
First
off, socialism, corporatism and central control are not this world’s—or any
world’s—version of divine justice. This sort of justice refers to the fact that
when we sin, we are separated and cast adrift from our relationship with God.
Jesus restored this relationship through his passion, death and resurrection.
Justice—or "growth in justice"—has nothing to do with the socialist economic
policies being precisely described in Section 204. Neither decisions, nor
programs, nor mechanisms, nor processes can even approach the level of true divine
justice that was paid for by “blood, toil, tears and sweat” of the Son of God.
This
is why the Holy Father’s words provoke such reactions in capitalist circles:
his cure is worse than the disease: to properly give spiritual care for the poor, we must disavow the free market. Beyond simply calling for a restraint in competition like the previous Popes, this Supreme Pontiff is calling for a reorganization of economic activity along socialist lines.
Synthesis
This
blog post started as a meditation on the rabidly free-market rhetoric of
Margaret Thatcher, and it will end as a reflection on the astoundingly
Marxist rhetoric of Pope Francis.
Inequality
is the root of social ills. That is what the Pope said, and no explanation
suffices except that he views social issues through a radical lens. Common
sense tells us that inequality is present at birth. “All men are created equal,”
says Thomas Jefferson in the Declaration of Independence, but plainly they are
not born so. Some are rich, others are poor; some are healthy, others are not.
What
our faith tells us is that we should care for those who are in the “not”
category because we are all equal in dignity as children of God. We are all—rich,
poor, healthy, sick—saved by the same love poured forth on the Cross at
Calvary.
But caring
for each other does not mean making all of us equal in wealth to each other. Just
encoding this sentence on a computer makes one’s fingers weak at the cheapness
of the idea. Jesus did not die that we may have the same wealth as the richest
among us, and not even for the sake of social justice; he died for freedom—freedom
from sin, freedom for love.
What
it means is that inequality, far from being the root of anything, is a symptom
caused by other forces. Greed is one, as rightly pointed out by the Pope. But
to address inequality is to return to first principles: How did decent people
achieve prosperity? Through freedom.
People
all over the world do not need any more of the “decisions, programs, mechanisms
and processes specifically geared to a better distribution of income” that have
only led to a worse distribution of income in no time at all. What they need is
the freedom to pursue their work, to spend their money in the care of those who
they think need it most, and the freedom to think and say things as they may.
Of
course, this freedom sometimes has led certain big businesses to be destructive
of the environment and of poor communities. The Church, starting with Rerum Novarum in 1891, has rightly
called attention to these abuses. But these depredations have their root in the
belief that “I have done this alone”, without help from anyone. Such an
arrogant pose, frequently observed among successful men and women, does not
conduce towards having faith in God. Instead of attacking market competition,
the Church should instead call for greater faith, for an acknowledgement from
each of us that wanton disregard of other people’s welfare will soon come to
destroy anything we have achieved, and for a realization that our faith requires us to be
vulnerable to God.
But
there is one final word that The Economizer has to say in defense of capitalism. In
calling for almsgiving, the Pope must remember that it is the capitalist that
has the most alms to give. Charity is most effectively done by those who have
the means to help, and it is no use deriding the only system that increases
this “means”. But what is more important is that in a free market, such charity
is voluntary. Under socialism, everyone is already required to give all of
oneself towards society; such charity is coerced and nothing else is
available.
And so the question is: how do we reconcile capitalism with Christianity? The answer lies in charity and freedom. It is only under capitalism that one can freely engage in charity, and where the individual can have sustainable, honest and decent means for charity.