Posted at 10:53 AM ET, 08/31/2011
By Anthony Stevens-Arroyo
“Been there; done that!” is a Catholic reaction to a failing social-economic system. The church witnessed the end of the Roman Empire, feudalism, absolute monarchy and Communism, not only surviving the fall, but often prospering as a result of the system’s failures. Will the church fare as well if 2011’s form of capitalism fails?
Some people will likely insist that capitalism is on firmer grounds today than is Catholicism. Certainly, Wall Street bankers appear to be superior to the bishops of the church in matters financial, administrative and political. But the loss of control of nations in a global capitalism and the refusal by the public in many nations accept austerity cut-backs signal a new stage of vulnerability to capitalist principles. Systems can run on accumulated momentum even when they are out of gas. Absolute monarchy in France was already in decline before the French Revolution and the Communist control over Poland had eroded long before the dramatic gestures of Blessed John Paul II hastened its downfall. Don’t look for an end to capitalism is some revolutionary uprising. Capitalism is not a single leader like Muammar Gaddafi, who sees his power and army crumble to then hide in some dark place until capture.
What I call the “failure of capitalism” is the inability of the system to produce desired effects any longer. Capitalism was born with the promise of making more people rich by using investment money (capital) to produce better goods and services. Responsibility for making those investments was taken away from the state and given to a class of owners whose self-interest would be regulated by the give-and-take of markets and access to resources. The ruling class determined by noble birth was replaced by persons who distinguished themselves by hard work and economic smarts.
The flaw in the system was that it always depended on selling things for more than they are actually worth. Either the owner paid workers less than they deserved, or cornered a market on raw materials in order to jack up prices, or transformed a corporation into a monopoly that was able to charge any price imaginable. Today, nobody is willing to be exploited in these ways. Moreover, the exploitation at the root of capitalism was always inimical to democracy. Since democracy requires treating everyone as an equal, an economic system based on inequality of investor class over everyone else cannot find peaceful coexistence. People inevitably have to choose between “liberty and justice for all” in democracy on the one hand or putting power in the hands of a few on the other.
That is my reading of the response of the masses world-wide from Wisconsin and Ohio to London and Tel Aviv. The working class - always larger in numbers than the ruling class - is protesting against governments that dictate lower wages and reduce spending on social needs instead of demanding higher taxes for corporations and the super wealthy Meanwhile, some strong-man rulers in the Arab world - all of whom supported global capitalist markers -- have been toppled by people demanding democratic participation in government. Even without justifying only one side, the common issue emerges: Is government to favor those made rich by the current system or to support the interests of a democratic majority?
The teachings of the Catholic Church strike a balance between these competing visions by stressing the common good over the individual’s benefit and shared sacrifice in economic matters. The technical name is “distributive justice” which ensures that prosperity follows along democratic principles of equal human and civil rights. Catholic distributive justice does not require that everyone get paid the same amount of salary and expressly rejects the automatic reduction of every citizen to a blind uniformity. But on the other hand, it condemns the use of governmental and private economic power to enrich the few at the expense of the many.
Ironically, capitalism has a vested interest in limiting profits in order to preserve democracy. The recent drastic drop in the stock market took more wealth away from corporations than many would have paid with higher taxes. So as systems fail, they morph into alternatives. I pray that the United States resolves its social-economic contradictions in accord with Catholic teaching.
By Anthony Stevens-Arroyo 10:53 AM ET, 08/31/2011
By Anthony Stevens-Arroyo
“Been there; done that!” is a Catholic reaction to a failing social-economic system. The church witnessed the end of the Roman Empire, feudalism, absolute monarchy and Communism, not only surviving the fall, but often prospering as a result of the system’s failures. Will the church fare as well if 2011’s form of capitalism fails?
Some people will likely insist that capitalism is on firmer grounds today than is Catholicism. Certainly, Wall Street bankers appear to be superior to the bishops of the church in matters financial, administrative and political. But the loss of control of nations in a global capitalism and the refusal by the public in many nations accept austerity cut-backs signal a new stage of vulnerability to capitalist principles. Systems can run on accumulated momentum even when they are out of gas. Absolute monarchy in France was already in decline before the French Revolution and the Communist control over Poland had eroded long before the dramatic gestures of Blessed John Paul II hastened its downfall. Don’t look for an end to capitalism is some revolutionary uprising. Capitalism is not a single leader like Muammar Gaddafi, who sees his power and army crumble to then hide in some dark place until capture.
What I call the “failure of capitalism” is the inability of the system to produce desired effects any longer. Capitalism was born with the promise of making more people rich by using investment money (capital) to produce better goods and services. Responsibility for making those investments was taken away from the state and given to a class of owners whose self-interest would be regulated by the give-and-take of markets and access to resources. The ruling class determined by noble birth was replaced by persons who distinguished themselves by hard work and economic smarts.
The flaw in the system was that it always depended on selling things for more than they are actually worth. Either the owner paid workers less than they deserved, or cornered a market on raw materials in order to jack up prices, or transformed a corporation into a monopoly that was able to charge any price imaginable. Today, nobody is willing to be exploited in these ways. Moreover, the exploitation at the root of capitalism was always inimical to democracy. Since democracy requires treating everyone as an equal, an economic system based on inequality of investor class over everyone else cannot find peaceful coexistence. People inevitably have to choose between “liberty and justice for all” in democracy on the one hand or putting power in the hands of a few on the other.
That is my reading of the response of the masses world-wide from Wisconsin and Ohio to London and Tel Aviv. The working class - always larger in numbers than the ruling class - is protesting against governments that dictate lower wages and reduce spending on social needs instead of demanding higher taxes for corporations and the super wealthy Meanwhile, some strong-man rulers in the Arab world - all of whom supported global capitalist markers -- have been toppled by people demanding democratic participation in government. Even without justifying only one side, the common issue emerges: Is government to favor those made rich by the current system or to support the interests of a democratic majority?
The teachings of the Catholic Church strike a balance between these competing visions by stressing the common good over the individual’s benefit and shared sacrifice in economic matters. The technical name is “distributive justice” which ensures that prosperity follows along democratic principles of equal human and civil rights. Catholic distributive justice does not require that everyone get paid the same amount of salary and expressly rejects the automatic reduction of every citizen to a blind uniformity. But on the other hand, it condemns the use of governmental and private economic power to enrich the few at the expense of the many.
Ironically, capitalism has a vested interest in limiting profits in order to preserve democracy. The recent drastic drop in the stock market took more wealth away from corporations than many would have paid with higher taxes. So as systems fail, they morph into alternatives. I pray that the United States resolves its social-economic contradictions in accord with Catholic teaching.
By Anthony Stevens-Arroyo 10:53 AM ET, 08/31/2011
Note: Bolds added for emphasis by Blogger.
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