Posted on 03/08/2009 9:04:22 AM PDT by stfassisi
As the 16-month-old disintegration of the post-World War II financial systems accelerates towards a climax, Pope Benedict XVI is preparing a major papal encyclical that will outline the principles behind a just and stable economy.
"Thieves respect property. They merely wish the property to become their property that they may more perfectly respect it." — G.K. Chesterton
As Wall Street continues to plumb new depths in the 21st century — markets today closed at new multi-year lows, lower than at any time since the mid-1990s — and as global trade flows contract sharply, fears are growing worldwide that the entire financial "architecture" of the post-war period, now seemingly fibrillating, could enter a period of "cardiac arrest" — complete financial collapse — and a global depression of uncertain duration ensue. (The chart of the Dow Jones Industrial average below, which represents only one country and one group of stocks in the global economy, is given only as an example of the trend. It shows the last five years of prices. The breakdown, with increasing volume of shares traded — shown in billions of shares traded at the bottom — can be seen from October 2007, when the Dow was over 14,000. However, the seeds of the breakdown were sown many years earlier. The Dow closed today, March 2, 2009 at 6,763.)
Pope Benedict XVI is about to address the global crisis with a papal letter called an "encyclical," so named because it is circulated everywhere, around the world. So his message will be intended first for all Catholics, but also all men in every corner of the world, whether in Africa or Asia, in Russia or America. The Pope's message fundamentally will be one of hope, no matter how devastating the global financial crisis becomes. But it will not seem hopeful to some, because it will be filled also with truth about how false economic principles and moral ideals can lead mankind toward the abyss, and into it.
On February 26, the Pope himself gave us a preview of his upcoming encyclical. During a meeting with pastors and clergy of the diocese of Rome in the Hall of Blessings in the Vatican's Apostolic Palace, as the Vatican Information Service (VIS) reported on February 27, Benedict answered eight questions put to him on matters including the world economic crisis.
The Church has the duty to present a reasonable and well-argued criticism of the errors that have led to the current economic crisis, Benedict said. This duty, he said, forms part of the Church's mission and must be exercised firmly and courageously, avoiding moralism but explaining matters using concrete reasons that may be understood by everyone.
Referring to his forthcoming social Encyclical, the Pope then presented a synthetic overview of the crisis, analyzing it at two levels, VIS reported. First, he considered the systemic, or "macroeconomic" aspects, highlighting the shortcomings of a system founded on selfishness and the idolatry of money. These motivating passions cast a shadow over man's reason and will, and lead him into the ways of error, the Pope said. Here the Church is called to make her voice heard — nationally and internationally — in order to help bring about a change of direction and show the path of true reason illuminated by faith, which is the path of self-sacrifice and concern for the needy, he said. The second aspect of the Holy Father's analysis concerned the personal and the local sphere ("microeconomics"). Large-scale projects for reform, he said, cannot come about unless individuals alter their ways. If there are no just people, then there can be no justice.
Hence he invited people to intensify their humble, everyday efforts for the conversion of hearts, an undertaking that above all involves parishes whose activity is not just limited to the local community but opens up to all humanity.
Why do we at Inside the Vatican believe that the economic situation is a very serious matter? Are we not interested in "more spiritual questions," like prayer, religious life, the interpretation of scripture, the naming, excommunication, or "un-excommunication" of bishops, the canonization of saints? With "heavenly" matters, not "earthly" ones? These are good questions, for it is true that "the Kingdom" toward which the Church is oriented, and in anticipation of which she lives, is "not of this world."
Why, then, are we deeply interested in the economy? We are interested in the economy, in the way our economy is structured and functions, because the economy, the structure of human exchanges of labor and knowledge and energies and resources, is the context, the atmosphere, the environment, for many of the moral decisions of people's lives.
Blessedness, or beatitude, is a condition or state of being which is at once holy and happy, healthy and whole, and it is what we wish for, and seek, in our lives, for ourselves, and for those we love — and, if we are to tell the truth, for all men. We seek the blessing of a just and fair economy because the economy influences, conditions, enables and at times impedes, good marriages, cohesive and happy families, good sibling relationships, good relations between races, religions, ethnic groups, and economic classes. All of these relationships are affected by economic turmoil, and thus one of the central duties of human governments is to provide, as effectively as possible, the legal and moral context for stable, just and balanced economic development.
Therefore, we will be covering the Pope's encyclical with great care, and in coming days and weeks, preparing for the encyclical, then analyzing it, then interpreting and applying it.
We offer one preliminary thought. There is a great tradition of Catholic economic teaching, or social teaching on economic matters. We need to know this teaching in order to engage in the debates of our times, and propose thoughtful and just solutions to the crisis we face. Heinrich Pesch (1854-1926) a German Jesuit priest and economist, was influential more than a century ago. It was to the thought of Pesch and his disciples that Pope Pius XI turned in composing his monumental encyclical Quadragesimo Anno (1931), and it is from Pesch that John Paul II took many of the ideas of his own social encyclicals, including the key term "solidarism" (solidarity).
Pesch was, above all, concerned with the human beings for whom Christ died. In discussing the business cycle, for example, he wrote, "To be sure, it is said that while business cycles open wounds they also heal them again.
Today they cause loss, tomorrow, profit! But what about those cases where loss and profit do not recur to the same people or the same classes of people, so that some are carried to the dizzying heights of wealth, while others are reduced to economic ruin?" Pope Leo XIII (1810-1903), the 256th Pope of the Roman Catholic Church, reigning from 1878 to 1903, is known for the development of social teachings with his encyclical Rerum Novarum.
Published in 1891, Rerum Novarum addressed for the first time social inequality and social justice issues with papal authority, focusing on the rights and duties of capital and labor. He was greatly influenced by Wilhelm Emmanuel von Ketteler, a German bishop who openly propagated siding with the suffering working classes in his book Die Arbeiterfrage und das Christentum. Since Leo XIII, papal teachings have expanded on the rights and obligations of workers and the limitations of private property: Pope Pius XI's Quadragesimo Anno; the social teachings of Pope Pius XII on a large range of social issues; John XXIII's Mater et Magistra in 1961; Pope Paul VI's encyclical Populorum Progressio on world development issues; and Pope John Paul II's Centesimus Annus, commemorating the 100th anniversary of Rerum Novarum.
We also note the contribution of Gilbert Keith Chesterton (1874-1936), one of the most influential English writers of the 20th century. Chesterton championed the economic theory of "Distributism." Distributism is a "third-way" economic philosophy (between or beyond capitalism and communism/socialism) formulated primarily by Chesterton and his friend, Hilaire Belloc, to apply the principles of Catholic social teaching in the early 20th century. According to distributism, the ownership of the means of production should be spread as widely as possible among the general populace, rather than being centralized under the control of the state (indirect socialism) or a few large businesses or wealthy private individuals (capitalism). A summary of distributism is found in Chesterton's statement: "Too much capitalism does not mean too many capitalists, but too few capitalists."
While socialism allows no individuals to own productive property (it all being under state, community, or workers' control), and capitalism allows only a few to own it, distributism seeks to ensure that most people will become owners of productive property.
Note: An encyclical was originally a circular letter sent to all the churches of a particular area in the ancient Christian church. At that time, the word could be used for a letter sent out by any bishop. The word comes from the Latin encyclia meaning "general" or "encircling". The title of the encyclical is usually taken from its first few words.
Pope Pius XII held that papal encyclicals, even when they are not ex cathedra, can nonetheless be sufficiently authoritative to end theological debate on a particular question:
"It is not to be thought that what is set down in Encyclical letters does not demand assent in itself, because in this the Popes do not exercise the supreme power of their magisterium. For these matters are taught by the ordinary magisterium, regarding which the following is pertinent: “He who heareth you, heareth Me.” (Luke 10:16); and usually what is set forth and inculcated in Encyclical Letters, already pertains to Catholic doctrine. But if the Supreme Pontiffs in their acts, after due consideration, express an opinion on a hitherto controversial matter, it is clear to all that this matter, according to the mind and will of the same Pontiffs, cannot any longer be considered a question of free discussion among theologians." from Humani Generis.
Robert Moynihan PhD edits Inside the Vatican.com
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- Matthew 16:26
This will be interesting.
Most economic theories/systems have weaknesses in them. But, total government control of the wealth of any nation is a prescription for disaster. That is why Pope Pius XI wrote an encyclycal that stated unequivically that no one can be a Catholic and a Socialist.
Capitalism is still the best bet for freedom. However, I must write this caveat - without any moral code of values such as the Judeo-Christian ethic, capitalism sinks to degradation with unbridled greed which recently has been quite egregious. And, I think that is part of the reason why the left is so powerful today. It opens up the whole system to derision and makes all businesses targets by those who are envious (and unfortunately many people are envious).
We need to get control of the culture again!
Pope needs to stick to subjects he knows about; there are plenty of such issues requiring his attention.
The Catholic Church used to teach “Subsidiarity” which is a condemnation of centralized power and a rebuke against Communism and Socialism.
Now, sadly, it is hard to find a Catholic Priest who knows much of anything about economics or the evils of government power. Most Priests see little or no difference between voluntary charity, and the “charity” which is enforced by the barrel of a gun.
Church doctrine has not changed, but it is no longer taught.
Good Catholic Democrats everywhere will breathe a sigh of relief that their Leader did not mention false prophets.
And the free enterprise system as developed in the United States comes closest to meeting the Church’s criteria.
What would you know about what the Pope may or may not know? And since the Pope speaks on behalf of a very learned organization what would you know about what the Catholic Church hierarchy may or may not know?
Was this just a flippant remark or do you have a specific definition?
The Pope isn't going to tell us how to set up a credit default swap or how to recapitalize a bank. He's going to talk about the underlying morality which should form the basis for all fields of human endeavor, including economics and the market place.
When one surveys the pile of ashes that used to be Wall St., it's to escape the conclusion that moral failure has played a large part in the current catastrophe.
China is a very good example of what happens when Capitilism is not backed by Judeo-Christian ethics.
I suspect that many, many Latin Rite American Freepers will be disappointed with +BXVI’s encyclical.
I don’t know. I just hope he doesn’t issue it until after 3/25 because that’s when I’m doing my class on Catholic Social Doctrine. It’d be a drag if he issued it on, like, 3/24 and I had to stay up all night reading it and redoing my class ....
The result of the free enterprise system and its gross misunderstand of what freedom is has led to corruption and to much power of government leading to such things as the protection of pornography ,abortion etc.. as what man calls human freedom.
This is not freedom,It's enslavement to sin!
Blessed Pope LeoX III and others understood that how a state should operate
Excerpt from Encyclical
“” We have said that the State must not absorb the individual or the family; both should be allowed free and untrammeled action so far as is consistent with the common good and the interest of others. Rulers should, nevertheless, anxiously safeguard the community and all its members; the community, because the conservation thereof is so emphatically the business of the supreme power, that the safety of the commonwealth is not only the first law, but it is a government's whole reason of existence; and the members, because both philosophy and the Gospel concur in laying down that the object of the government of the State should be, not the advantage of the ruler, but the benefit of those over whom he is placed. As the power to rule comes from God, and is, as it were, a participation in His, the highest of all sovereignties, it should be exercised as the power of God is exercised—with a fatherly solicitude which not only guides the whole, but reaches also individuals.”
http://www.ewtn.com/library/ENCYC/L13RERUM.HTM
What makes you think this very learned and spiritual man knows nothing a about this?
“I’m doing my class on Catholic Social Doctrine.”
+John Chrysostomos “On Wealth and Poverty”.
Catholic social teaching goes well beyond abortion. In America we have many urgent issues that beg for our attention, from immigration to health care to poverty to crime and punishment to homelessness. I worry that those Freepers who are crying the loudest in their demands that the Pope act to excommunicate abortion supporting politicians are largely doing it out of religious partisanship because of the effect that excommunication will have on the political careers and support of many high profile Democrats. If an Encyclical is issued that doesn't toe the Republican line I fully expect many Freepers to go nuts demanding the Church shut up and stay out of American politics.
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