The Happy Priest: The Case for a Free Market Economy

10/24/2011

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wasted. On the other hand, it would not be acceptable to achieve economic growth at the expense of human beings, entire populations or social groups, condemning them to indigence. The growth of wealth, seen in the availability of goods and services, and the moral demands of an equitable distribution of these must inspire man and society as a whole to practice the essential virtue of solidarity, in order to combat, in a spirit of justice and charity, those structures of sin wherever they may be found and which generate and perpetuate poverty, underdevelopment and degradation. These structures are built and strengthened by numerous concrete acts of human selfishness" (Compendium, 332).

As a final part of our consideration, the social teaching of the Catholic Church does affirm also that there is a proper relationship between the State and the economy. Any economy, especially a market driven economy, will need some kind of regulation and intervention from the State in order to guarantee individual freedom, private property, a stable currency and stable public services.

"To fulfill this task, the State must adopt suitable legislation but at the same time it must direct economic and social policies in such a way that it does not become abusively involved in the various market activities, the carrying out of which is and must remain free of authoritarian - or worse - totalitarian - superstructures and constraints" (Compendium, 352).

When it comes to the relationship between the State and the economy, there are two fundamental principles from the social teaching of the Church that always need to be in place. These two principles are the principle of subsidiarity and the principle of solidarity.

"The action of the State and of other public authorities must be consistent with the principle of subsidiarity and create situations favorable to the free exercise of economic activity. It must also be inspired by the principle of solidarity and establish limits for the autonomy of the parties in order to defend those who are weaker. Solidarity without subsidiarity, in fact, can easily degenerate into a 'Welfare State,' while subsidiarity without solidarity runs the risk of encouraging forms of self-centered localism. In order to respect both of these fundamental principles, the State's intervention in the economic environment must be neither invasive nor absent, but commensurate with society's real needs. The State has a duty to sustain business activities by creating conditions which will ensure job opportunities, by stimulating those activities where they are lacking or by supporting them in moments of crisis. The State has the further right to intervene when particular monopolies create delays or obstacles to development. In addition to the tasks of harmonizing and guiding development, in exceptional circumstances the State can also exercise a substitute function" (Compendium, 351).

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Father James Farfaglia is the pastor of Our Lady of Guadalupe Catholic Church in Corpus Christi, Texas. Visit Father James on the web and purchase his new book Get Serious! A Survival Guide for Serious Catholics. Father has a hard hitting blog called Illegitimi non carborundum. You can contact Father James at fjficthus@gmail.com.

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Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.

Keywords: economic freedom, capitalism, market, market economy, Occupy Wall Street, stock market, Fr James Farfaglia

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1 - 10 of 15 Comments

Jim from Easton
1 year ago
Here's the thing. From the time the very first hunter gatherers settled down into villages and first started agriculture and then began capitalist activities (making plows, storage silos, etc.) and increasing their wealth, they had to also defend themselves from other groups of still nomadic peoples who would take their wealth by force. Today, if government would do it's job correctly and simply protect the life, liberty and property of all while leaving the marketplace truly free, no one would have any valid complaints. The wealthy would have their wealth which was created by honest means protected against unlawful theft. But if they would then make bad decisions resulting in the loss of their wealth, then that would be allowed to happen, too.

The problems come from when those who create/earn their wealth want to maintain it even in the event of future bad decisions. When they convince the government to protect them from themselves, we end up with crony capitalism instead of a truly free market. This is the main problem we have today and is a valid complaint of the "Occupy" crowd. Unfortunately, many of them seem to think that the free market itself is at fault. It is not, and it remains the best way ever devised of allowing for the most wealth for the most people.
David Carlon
1 year ago
The simple truth: the free market is an urban myth.

"AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters' worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy." See below link and related article.

http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html
Pete Brady
1 year ago
mikem: it is considerably difficult to "see the Church coming down closer to the Socialist dicta" when Pope Pius XI said in his encyclical "Quadresimo Anno:" --- "No one can be at the same time a sincere Catholic and a true Socialist."
Pete Brady
1 year ago
Said just as it should be said, Father! I look forward to more on this.
Rob
1 year ago
I have read a lot of articles that are critical of the protests, and based on the actions of some of the protesters, I can understand. But my take away from all of this is that I think what we are seeing is people waking up to the fact that they no longer have an advocate in government. Your vote rings hollow when the only thing that matters is how much money you pay in to keep their rears in the seat. Spend some time on the website opensecrets.org. No matter how you slice it, lobbying is nothing more than bribery. And we'd had better start calling it for what it is if we ever hope to salvage this country. Not one person running for office subscribes to any of this via their contribution history. Campaign trail rhetoric and actual records prove to be two very different things when it comes to the eoncomy.
JIM K
1 year ago
Changes in society, not only on the part of individuals but more so from businesses and the State have brought on our currant economic plight in the US. The change I speak of is a gradual deterioration of an unwritten set of business laws, that began in the industrial revolution, which were more in-line with the doctrine of this article. There were always some who did not practice moral ethics, and seemingly the problems mounted within the system as the percentage of business leaders along with State lawmakers adopted profit driven changes, a step at at time, over the last couple centuries. Common protocol has been abandoned for profit. As we will see, they can legislate bill after bill to create a healthy economy once more, but true change that can stand up to the test of time will only come with changes from within, in accordance to the doctrine prescribed by the Church.
techwreck
1 year ago
mikem, I don't know where you got that idea. Christ preached freedom - freedom to be all that we could be with the unique talents he gave each of us. He also preached responsibility for our brothers and sisters, the obligation to use our talents to help others. Somehow you have twisted that into a message of Socialist control that could not be farther from Christ's teaching if you tried. Johnny correctly points out that the Church condemns Socialism.
Kevin
1 year ago
This article has a number of valuable insights, and a few things I would disagree with:

http://www.theglobeandmail.com/news/politics/economics-has-met-the-enemy-and-it-is-economics/article2202027/page1/
Fred Celio
1 year ago
Fortunately, in the United States of America; our consitiutional democracy insures subsidiarity by it's very structure. When the members of the house of representatives truly vote the needs of their districts and our senators truly vote the needs of our states subsidiarity is ithe underlying effect of our laws. Additionally, our benefits to fulfil the needs of those less fortunates in our midst are also executed at the local level wheter or not the adminsitation of these necessary programs are administered according to our federal modle or overseen by our national government. Our laws limiting the cruelties of the "free" maret eceonmy and regulations to protect our citizens thus naturally meet the condition of subsidiarity, since out consition has had subsidiarity built into it by the genius of our founders. In the UNited States of America the term subsidiarity should neverbe used as buzz word to halt legistaion of programs necessary to help others. This includes the rising of taxes on the wealthy in a graduated fashion. Thus allowing those who benefit the most from our ecenomic structure to pay more for the benfits of those who are left behind, who need a saftey net, or who need a hand up (the invisible hand of compasion comes into paly here). The fact that the capital gains tax tops out now at 15% in this coutnry is a travesty, allowing those who do the least in terms of labor, those who literally do nothing save to sit and vote their shares, and those who benfit the most from out systems to pay less of a precentage for sustaning the system which allowed them to accumualte this great weath than those who earn their living by the sweat of their brow.
Johnny
1 year ago
I think it is important to make distinctions regarding a "free" market system. To suggest that such a market is "free" from any moral restraints would be quite wrong. Markets must be regulated and governed according to the common good and the overall good of individuals. As we have laws from God and Holy Church regarding marriage issues, so we have laws regarding economic dealings. True Capitalism...the Adam Smith kind...is condemned by Holy Church as a bad fruit of the so-called Enlightenment and Liberalism. Prices, at times, need to be controlled...monopolies need to be busted....wages must be just...and the concentration of wealth in the hands of just a few is a serious problem. Socialism is not the answer, of course. Socialism is utterly condemned by Holy Church since it concentrates wealth in the hands of the State, thus creating an even greater greed than Capitalism, since everyone in a socialist society wants to take wealth from others. The best way was mentioned in another comment, namely, distributivism, which seeks to make as many people as possible possess their own means of production. That is, to make as many people capitalists as possible. People owning their own property is a start, but then families owning their own small businesses. And yes, such a system, would fight against corporate America, including Wall Street which manufactures nothing but debt for many and wealth for the few. In our country, we have an "incestuous" relationship between government and big business. Wall Street has been bailed out so many times, while small business declines and manufacturing jobs are switched overseas. Wall Street, in turn, keeps the money flowing towards D.C. with plenty of "donations" and luxury travel for our representatives and executive.

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