Catholic Social Doctrine and the Market Economy: Free Persons and Free Markets

2/21/2012

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with the principle of subsidiarity--may have a role in "stimulating those [business] activities where they are lacking," by "supporting them in moments of crisis," or by intervention when "monopolies create delays or obstacles to development." In "exceptional circumstances," and for limited time, even "exercise a substitute function." (Compendium, No. 351)

Though there are times government intervention is required, there is a great danger to economic freedom that is posed by an overly-interventionist State, since invariably the prescriptions of the State end up being guided by "bureaucratic logic" and governed by burgeoning "public agencies." Therefore, any State or public intervention "must be carried out with equity, rationality, and effectiveness, and without replacing the action of individuals, which would be contrary to their right to the free exercise of economic initiative." (Compendium, No. 354)

In general, the free market and the governing bodies of the State ought not to be viewed as competitors seeking to occupy the same realm, but as cooperators in the same aim:

"It is necessary for the market and the State to act in concert, one with the other, and to complement each other mutually. In fact, the free market can have a beneficial influence on the general public only when the State is organized in such a manner that it defines and gives direction to economic development, promoting the observation of fair and transparent rules, and making direct interventions--only for the length of time strictly necessary--when the market is not able to obtain the desired efficiency and when it is a question of putting the principle of redistribution into effect. There exist certain sectors in which the market, making use of the mechanisms at its disposal, is not able to guarantee an equitable distribution of the goods and services that are essential for the human growth of its citizens. In such cases the complementarities of State and market are needed more than ever." (Compendium, No. 353)

Finally, there are some human goods that simply are not commodities to be traded as if they were pork bellies. Well does the Church state that there are goods that "'by their nature are not and cannot be mere commodities,' goods that cannot be bought and sold according to the rule of the 'exchange of equivalents' and the logic of contracts which are typical of the market." (Compendium, No. 349) (quoting Centesimus annus, 40) These include "collective goods and goods meant for common utilization." (Compendium, No. 356) Marriage contracts, orphans, human corpses or organs, the freedom of religion or free speech ought not to be traded as if they were consumer goods.

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Andrew M. Greenwell is an attorney licensed to practice law in Texas, practicing in Corpus Christi, Texas. He is married with three children. He maintains a blog entirely devoted to the natural law called Lex Christianorum. You can contact Andrew at agreenwell@harris-greenwell.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: Freedom, market economy, enterprise, capitalism, Catholic social teaching, market economy, Andrew greenwell

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1 - 10 of 20 Comments

Irl Gladfelter
1 year ago
Thank you for emphasizing aspects of the Social Doctrine of the Church which many choose to ignore. We need more articles like this one.
Paul-Emile Leray
1 year ago
Very well written article: clear, informative, precise, and encouraging. This article, if objectively analyzed, debunks many political ideologies in this secular age of moral relativism.
Paul-Emile Leray
Rob
1 year ago
You crack me up vance. Unlike you I'm well aware of what Obama and crew have done. But where we part ways is that I don't ignore facts because they may go against my political philosophy. I don't orchestrate a truth that isn't there. But I get it, you have to convince yourself of these things because then what would you do? To admit both parties are neck deep in it would probably cause you to go into a tailspin. I will say that anyone serving is responsible for the mess. Financial Modenization Act of 1999 was passed with bipartisan support with mostly democrats and 5 republicans opposing. You are right, because Pelosi and Reid voted yes for this bill, you are correct, they are responsible for the mess we are in. How you get ok with this GOP sponsored bill, even with it's main sponsor, who is now a VP for the very bank that helped push us off a cliff, I have no idea. Unfortunately vance, Obama wasn't in office yet. And guess what, Santorum voted for the darn bill too! Again, how you ignore that just shocks me. How we allow any of these clowns to continue to serve let alone have the audacity to run for president just escapes me. And every sitting politician since this party started is just as responsible. From the President to the house in senate in 1999 to the present, they are all responsible. Obama's role, he went along with the status quo. Allowed himself to be bought off just like everyone else. Solyndra, you do realize that the government's dealings with this company began under Bush right? The loan program that allowed for the money to be given to Solyndra was a Bush program and their administration tried to fast track that money to them prior to Obama taking office. Surely isn't the first time or last time our tax dollars will be wasted by politicians trying to score political points. I guess if I were a senior right now I sure as heck wouldn't want any of my government healthcare touched. My benefit when it applies to me and socialism when it's everyone else right?
vance
1 year ago
Rob, Confused??? It sounds like it. I guess you forgot that the Marxist Democrat Party took control of congress in 2006 with your Dear Leaders Obama, Pelosi, and Reid at the helm. They wasted no time sky jacking the national budget BUT Bush didn't veto their big government spending that you acknowledged. Now, here comes your Hope and Change Savior Obama who "claims" he inherited a "Mess". Well, he did inherit a mess, the mess he, Pelosi, and Reid created. Wall Street!! oh yes, those big Obama Bundlers. You know, it's those Solyndra guys who received billions of dollars for going out of business? It turns out that the Solyndra CEO was/is a "Big Wall Streeter". It's the same old hypocritical clap trap like Michele Obama slamming the "Rich" while she is taking a super wealthy luxury vacation with the "Rich and Famous". AAANND let's talk about Medicare. It's you leftist beating your gums about Medicare and the Big Bad GOP are throwing grandma over the cliff. You don't remember that?? After all that clap trap, it is the Big Bad Marxists who are throwing granny over the cliff by stripping 1/2 Trillion from the program. They are doing it at a time when the Baby-Boomers are flooding the system. And so, the Marxist Democrat Party keeps slithering along.
Rob
1 year ago
The banks are controlled by the government??? Vance, you aren't serious right? Wall Street controlled by marxists? Serioulsy? I guess Wall Street types had no presence in the last republican administration right? They don't give anything to the GOP right? I must have missed the part about Senator Gramm being a republican, I didn't realize he was a marxist democrat. And I want to make sure I understand the logic, cuts to medicare is not caring for people so funding it is but providing people the means to eat food is marxists? So health care for seniors is "helping" and food for people is marxism? You do know that the program to increase the roles on food stamps was a Bush program that Obama continued right? So if I follow you, Big business and wall street (only the republican part) are allowed to do whatever they want because it's Christian, American or free, but everything else you don't happen to subscribe to (with the exception of Medicare) is big government marxism. And the solution thus far is to put into office guys who have made a fortune off the big government we are trying to cut? I have to say I am honestly confused.
vance
1 year ago
Mark M, Slave to the Market?? How in the world are you a slave if you "CHOOSE" to shop anywhere you want?? You are NOT forced to shop at Walmart. You are NOT forced to buy a Chevy Volt. The banks are "Controlled" by the government. They have been government controlled since FDR in the 1930's. Wall Street is largely controlled by millionaire and Billionaire Marxists like Warren Buffett and the rest of the Obama "Bundlers". The late Steve Jobs was a Billionaire Leftist who financed Obama and the Marxist Democrat Party campaigns. Obama and the Marxists care about people??? I don't call 26 million people out of work caring for people. I don't call a "Record Number" of people on Food Stamps and welfare caring for people. I don't call forcing Catholics to kill babies against their will caring for people. I don't call stripping 1/2 Trillion Dollars from Medicare caring for people. Freedom is caring for people.
Norm Seubert
1 year ago
Andrew, thanks for the clarification. There definitely is a certain shook and visualization value to bringing this abominable practice up. Still the larger issue is humans in general treated as objects to be used with defacto slavery still occurring. It is not too much of a stretch to compare the practice of subsistence level wage workers who change employers with people being traded as producer, not consumer, goods. Very good article despite this oversight, for lack of a better word.
Andrew
1 year ago
@Norm. The mention of corpses is not weird. I had in mind the horrible practice by the Bedouins with the cooperation of Egyptian physicians of harvesting organs from victims in the Sinai and then selling them for money. Google this and you will see how this horrid marketplace exists.
Norm Seubert
1 year ago
"Marriage contracts, orphans, human corpses or organs, the freedom of religion or free speech ought not to be traded as if they were consumer goods."

I was following this article well until this final sentence which mentions human corpses as an example of something not to be traded. Does this even have to be mentioned-don't we as civilized readers of this publication already know this? I would think "human beings" would have been a much more appropriate example to use. There is something weird going on in this article.
Pete Brady
1 year ago
Andrew Greenwell writes some of the best stuff I've seen at Catholic Online. Not too long ago Deacon Fournier was advancing the case that just because the liberals (and here, Vance, you are cleared in "hot" to call them Marxists, because they are) had hijacked the concept of "social justice" to their own immoral purposes that we ought not to abandon the phraseology itself. In fact we can't because it is every bit of the Social Doctrine of the Church. And Andrew Greenwell is providing us with the clear statements of the Church in its Compendium that make that point. The errors are made when we equate equality of result with equality of opportunity. No one is guaranteed the "good life." Economics is as much a "science" with discernible "laws" as the law of gravity applies to Newtonian physics. Morality enters into the application of any science in how we use or abuse what God has given us. It does not alter the fact that E equals M times C-squared but what we do with that equation in regard to use (nuclear power plants) or abuse (nuclear weapons) can be deemed morally licit or potentially immoral respectively. The "free market" does have the potential for abuse (greed) but so too does "freedom." And in that regard we must remember the Jeffersonian admonition that "the price of freedom is eternal vigilance." Life and social interaction does not take place on autopilot or as a "set piece" operation. It requires discernment and our active moral engagement.

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