Youcat commented through CCC – Question n. 446.

YOUCAT Question n. 446 - What does the Church say about globalization?

(Youcat answer) Globalization is in itself neither good nor bad; it is, rather, the description of a reality that must be shaped. “Originating within economically developed countries, this process by its nature has spread to include all economies. It has been the principal driving force behind the emergence from underdevelopment of whole regions, and in itself it represents a great opportunity. Nevertheless, without the guidance of charity in truth, this global force could cause unprecedented damage and create new divisions within the human family” (Pope Benedict XVI, CIV).

A deepening through CCC

(CCC 2426) The development of economic activity and growth in production are meant to provide for the needs of human beings. Economic life is not meant solely to multiply goods produced and increase profit or power; it is ordered first of all to the service of persons, of the whole man, and of the entire human community. Economic activity, conducted according to its own proper methods, is to be exercised within the limits of the moral order, in keeping with social justice so as to correspond to God's plan for man (Cf. GS 64).       

Reflecting and meditating 

(Youcat comment) When we buy inexpensive jeans, we should not be indifferent to the conditions in which they were manufactured, to the question of whether or not the workers received a just wage. Everyone’s fortune matters. No one’s poverty should leave us indifferent. On the political level, there is a need for “a true world political authority” (Pope Benedict XVI, CIV, citing Bl. John XXIII, Encyclical Pacem in terris) to help reach a compromise between the people in the rich nations and those in underdeveloped countries. Far too often the latter are still excluded from the advantages of economic globalization and have only burdens to bear.

(CCC Comment)

(CCC 2431) The responsibility of the state. "Economic activity, especially the activity of a market economy, cannot be conducted in an institutional, juridical, or political vacuum. On the contrary, it presupposes sure guarantees of individual freedom and private property, as well as a stable currency and efficient public services. Hence the principal task of the state is to guarantee this security, so that those who work and produce can enjoy the fruits of their labors and thus feel encouraged to work efficiently and honestly.... Another task of the state is that of overseeing and directing the exercise of human rights in the economic sector. However, primary responsibility in this area belongs not to the state but to individuals and to the various groups and associations which make up society" (CA 48).

(The next question is: Is globalization exclusively a matter of politics and economics?)

Youcat commented through CCC – Question n. 445.

YOUCAT Question n. 445 - What is meant by the principle “labor before capital”?

(Youcat answer) The Church has always taught “the principle of the priority of labor over capital” (Pope John Paul II, LE). Man owns money or capital as a thing. Labor, in contrast, is inseparable from the person who performs it. That is why the basic needs of laborers have priority over the interests of capital.

A deepening through CCC

(CCC 2438) Various causes of a religious, political, economic, and financial nature today give "the social question a worldwide dimension" (SRS 9). There must be solidarity among nations which are already politically interdependent. It is even more essential when it is a question of dismantling the "perverse mechanisms" that impede the development of the less advanced countries (Cf. SRS 17; 45). In place of abusive if not usurious financial systems, iniquitous commercial relations among nations, and the arms race, there must be substituted a common effort to mobilize resources toward objectives of moral, cultural, and economic development, "redefining the priorities and hierarchies of values" (CA 28; Cf. 35).      

Reflecting and meditating 

(Youcat comment) The owners of capital and investors have legitimate interests, too, which must be protected. It is a serious injustice, however, when entrepreneurs and investors try to increase their own profits at the expense of the basic rights of their laborers and employees.

(CCC Comment)

(CCC 2436) It is unjust not to pay the social security contributions required by legitimate authority. Unemployment almost always wounds its victim's dignity and threatens the equilibrium of his life. Besides the harm done to him personally, it entails many risks for his family (Cf. LE 18).

(The next question is: What does the Church say about globalization?)

Youcat commented through CCC – Question n. 444.

YOUCAT Question n. 444 - What does the Church’s social doctrine say about the topics of labor and unemployment?

(Youcat answer) To work is a duty that God has given to us. In a common effort we are supposed to look after and continue his work of creation. “The Lord God took the man and put him in the garden of Eden to till it and keep it” (Gen 2:15). For most people, work is the foundation of life. Unemployment is a serious misfortune that must be dealt with resolutely.

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(CCC 2433) Access to employment and to professions must be open to all without unjust discrimination: men and women, healthy and disabled, natives and immigrants (Cf. LE 19; 22-23). For its part society should, according to circumstances, help citizens find work and employment  (Cf. CA 48).      

Reflecting and meditating 

(Youcat comment) While today many people who would like to work find no jobs, there are also “workaholics” who work so much that they have no time left for God and their fellowmen. And while many people can scarcely feed themselves and their families with their wages, others earn so much that they can live a life of unimaginable luxury. Work is not an end in itself but should serve the development of a humane society. That is why catholic social teaching is committed to an economic order in which all men can collaborate actively and share in the prosperity that is achieved. It insists on a just wage that enables all to have a dignified existence, and it calls on the rich to practice the virtues of moderation, solidarity, and sharing. 

(CCC Comment)

(CCC 2434) A just wage is the legitimate fruit of work. To refuse or withhold it can be a grave injustice (Cf. Lev 19:13; Deut 24:14-15; Jas 5:4). In determining fair pay both the needs and the contributions of each person must be taken into account. "Remuneration for work should guarantee man the opportunity to provide a dignified livelihood for himself and his family on the material, social, cultural and spiritual level, taking into account the role and the productivity of each, the state of the business, and the common good" (GS 67 § 2). Agreement between the parties is not sufficient to justify morally the amount to be received in wages.     

(The next question is: What is meant by the principle “labor before capital”?)

Youcat commented through CCC – Question n. 443.

YOUCAT Question n. 443 - What is the duty of managers and entrepreneurs?

(Youcat answer) Entrepreneurs and managers are concerned about the commercial success of their company. Besides their legitimate interests (including the profit motive), they also have a social responsibility to take into account the just concerns of their employees, suppliers, and customers, as well as of society as a whole, and also to be considerate of the environment.

A deepening through CCC

(CCC 2432) Those responsible for business enterprises are responsible to society for the economic and ecological effects of their operations (Cf. CA 37). They have an obligation to consider the good of persons and not only the increase of profits. Profits are necessary, however. They make possible the investments that ensure the future of a business and they guarantee employment.       

Reflecting and meditating 

(CCC Comment)

(CCC 2415) The seventh commandment enjoins respect for the integrity of creation. Animals, like plants and inanimate beings, are by nature destined for the common good of past, present, and future humanity (Cf. Gen 128-31). Use of the mineral, vegetable, and animal resources of the universe cannot be divorced from respect for moral imperatives. Man's dominion over inanimate and other living beings granted by the Creator is not absolute; it is limited by concern for the quality of life of his neighbor, including generations to come; it requires a religious respect for the integrity of creation (Cf. CA 37-38).

 

(The next question is: What does the Church’s social doctrine say about the topics of labor and unemployment?)

Youcat commented through CCC – Question n. 442.

YOUCAT Question n. 442 - What is the Church’s stance on capitalism or the free-market economy?

(Youcat answer) Any form of capitalism that is not embedded in an established system of law runs the risk of detaching itself from the common good and becoming a mere means for individuals to make profits. The Church rejects that decisively. On the other hand, she supports a free-market system which is at the service of man, prevents monopolies, and ensures that all are supplied with employment and vitally necessary goods.

A deepening through CCC

(CCC 2426) The development of economic activity and growth in production are meant to provide for the needs of human beings. Economic life is not meant solely to multiply goods produced and increase profit or power; it is ordered first of all to the service of persons, of the whole man, and of the entire human community. Economic activity, conducted according to its own proper methods, is to be exercised within the limits of the moral order, in keeping with social justice so as to correspond to God's plan for man (Cf. GS 64).

Reflecting and meditating 

(Youcat comment) Catholic social teaching evaluates all societal arrangements according to whether they serve the common good (common good), which means: to the extent that they enable “men, families, and associations more adequately and readily [to] attain their own perfection” (Second Vatican Council, GS). This is also true of commerce, which in the first place should be at the service of man.

(CCC Comment)

(CCC 2425) The Church has rejected the totalitarian and atheistic ideologies associated in modem times with "communism" or "socialism." She has likewise refused to accept, in the practice of "capitalism," individualism and the absolute primacy of the law of the marketplace over human labor (Cf. CA 10; 13; 44).  Regulating the economy solely by centralized planning perverts the basis of social bonds; regulating it solely by the law of the marketplace fails social justice, for "there are many human needs which cannot be satisfied by the market" (CA 34). Reasonable regulation of the marketplace and economic initiatives, in keeping with a just hierarchy of values and a view to the common good, is to be commended.       

(The next question is: What is the duty of managers and entrepreneurs?)