December 19, 2018 (LifeSiteNews) – It is no secret that probably a majority of Catholics in the United States who consider themselves faithful to the Church's magisterium and traditions are at the same time adherents of what is properly called neoliberalism, a position that calls for an economy with as little regulation as possible, a political stance known in the United States as conservatism. However, the main tenets of this understanding of politics and economics not only are not rooted in Catholic thought, they are in stark contradiction to it. They are products of the 18th-century Enlightenment, in fact they are a species of liberalism, as is recognized in most countries of the world, where that term is used to designate the Enlightenment view of society that arose in rebellion against the Christian civilization of the Middle Ages.
This is a viewpoint about both politics and economics, for it is the political question which underlies the economic. In fact, they concern one of the most fundamental questions about government. Does government exist only to restrain and punish evildoers? Hence does it have little or no positive role to play in society? Is it correct to say, as a contemporary adherent of this view, Fr. Robert Sirico, expressed it, "So long as individuals avoid forceful or fraudulent actions in their dealings with one another, government is to stay out of their business"? (Acton Notes, vol. 8, no. 1, January 1998, p. 1)
In contrast to this view, Catholic thought recognizes a positive role for the state, as we can see in the writings of the Roman pontiffs on social matters. Pope Pius XI, in his 1931 encyclical Quadragesimo Anno, discussing the earlier encyclical of Leo XIII, Rerum Novarum, rejects the view that governmental authority is limited only to restraining or punishing evil doers.
With regard to the civil power, Leo XIII boldly passed beyond the restrictions imposed by liberalism, and fearlessly proclaimed the doctrine that the civil power is more than the mere guardian of law and order, and that it must strive with all zeal "to make sure that the laws and institutions, the general character and administration of the commonwealth, should be such as of themselves to realize public well-being and private prosperity." (no. 25)
And more recently Pope Paul VI, in his Apostolic Letter Octogesima Adveniens of May 1971, wrote,
Political power, which is the natural and necessary link for ensuring the cohesion of the social body, must have as its aim the achievement of the common good. While respecting the legitimate liberties of individuals, families and subsidiary groups, it acts in such a way as to create, effectively and for the well-being of all, the conditions required for attaining man's true and complete good, including his spiritual end. (no. 46)
Of course, the Church has never advocated a statist or totalitarian society. It is one of the unique aspects of Catholic thinking on the social order that it rejects both the notion that the unrestrained selfish strivings of sinful humanity necessarily promote the general welfare, and on the other hand, that the primary responsibility for the ordering of economic life rests with the government itself. Instead, regulation, as much as is feasible, should be undertaken by lower and smaller groups or bodies charged with promotion of the common good. This is the famous principle of subsidiarity, a principle, however, often misunderstood to mean that for-profit entities should be the main actors in an economy.
If one reads Pius XI's two great encyclicals that deal with economic matters, Quadragesimo Anno and Divini Redemptoris, he will see that the pope is calling for a revival of something like the medieval guilds, not of course in the sense of limiting technology to the level of the Middle Ages, but in order to call into being organizations or societies whose aim is to ensure that the economy functions both efficiently and justly. These modern guilds or occupational groups would have as their aims the prosperity of their own industries, the provision to the public of a quality product at a fair price, and the just remuneration of everyone involved in the production process.
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