No Christian Case for Capitalism?

According to Robert Tracinski, Buckleyite Fusionism is dead. Tracinski claims this is because "its basic premise--that the moral foundation of free markets and Americanism can be left to the religious traditionalists--is false."

Tracsinski elaborates:

The reason for this shift toward the religious left is that religion cannot support the real basis for capitalism and a strong American national defense: a morality of rational self-interest. Christianity is too deeply committed to a philosophy of self-abnegation, a destructive morality that urges men to renounce any interest in worldly goods and to turn the other check in the face of aggression. The early Christian saints, for example, abandoned all material comforts and lived in caves--which is to say that their closest contemporary disciples are the radical environmentalists. As for foreign policy, St. Augustine spent a fair bit of his massive apologia for Christianity, The City of God, explaining to the Romans that being sacked by barbarians was good for them because it taught them the virtue of humility and cured them of their attachment to material wealth.

It is certainly true that Christianity has an ascetic streak. It is even true that Christians believe material possessions can draw people away from God if not viewed rightly. It is even more true that Christians believe that people who have much have a duty to help those who have little (and this goes for things beyond material possessions). In short, every point Tracinski brings up in support of his contention is true, but it does not follow that a Christian defense of capitalism cannot be made. Indeed, two papal encyclicals, Rerum Novarum, issued in 1891 by Pope Leo, and Centesimus Annus, issued one hundred later by Pope John Paul the Great, while not entirely uncritical of capitalism, heartily endorse the fundamental principles of a free market society and condemn not only socialism but the notion of man being dependent upon the State for his well-being:

For man, fathoming by his faculty of reason matters without number, linking the future with the present, and being master of his own acts, guides his ways under the eternal law and the power of God, whose providence governs all things. Wherefore, it is in his power to exercise his choice not only as to matters that regard his present welfare, but also about those which he deems may be for his advantage in time yet to come. Hence, man not only should possess the fruits of the earth, but also the very soil, inasmuch as from the produce of the earth he has to lay by provision for the future. Man's needs do not die out, but forever recur; although satisfied today, they demand fresh supplies for tomorrow. Nature accordingly must have given to man a source that is stable and remaining always with him, from which he might look to draw continual supplies. And this stable condition of things he finds solely in the earth and its fruits. There is no need to bring in the State. Man precedes the State, and possesses, prior to the formation of any State, the right of providing for the substance of his body. [RN, para 7]

Pope Leo goes on to highlight the evil effects produced by socialism and socialist-style policies.

14. The contention, then, that the civil government should at its option intrude into and exercise intimate control over the family and the household is a great and pernicious error. True, if a family finds itself in exceeding distress, utterly deprived of the counsel of friends, and without any prospect of extricating itself, it is right that extreme necessity be met by public aid, since each family is a part of the commonwealth. In like manner, if within the precincts of the household there occur grave disturbance of mutual rights, public authority should intervene to force each party to yield to the other its proper due; for this is not to deprive citizens of their rights, but justly and properly to safeguard and strengthen them. But the rulers of the commonwealth must go no further; here, nature bids them stop. Paternal authority can be neither abolished nor absorbed by the State; for it has the same source as human life itself. "The child belongs to the father," and is, as it were, the continuation of the father's personality; and speaking strictly, the child takes its place in civil society, not of its own right, but in its quality as member of the family in which it is born. And for the very reason that "the child belongs to the father" it is, as St. Thomas Aquinas says, "before it attains the use of free will, under the power and the charge of its parents."(4) The socialists, therefore, in setting aside the parent and setting up a State supervision, act against natural justice, and destroy the structure of the home.

15. And in addition to injustice, it is only too evident what an upset and disturbance there would be in all classes, and to how intolerable and hateful a slavery citizens would be subjected. The door would be thrown open to envy, to mutual invective, and to discord; the sources of wealth themselves would run dry, for no one would have any interest in exerting his talents or his industry; and that ideal equality about which they entertain pleasant dreams would be in reality the levelling down of all to a like condition of misery and degradation. Hence, it is clear that the main tenet of socialism, community of goods, must be utterly rejected, since it only injures those whom it would seem meant to benefit, is directly contrary to the natural rights of mankind, and would introduce confusion and disorder into the commonweal. The first and most fundamental principle, therefore, if one would undertake to alleviate the condition of the masses, must be the inviolability of private property. This being established, we proceed to show where the remedy sought for must be found. [RN, para 14-15]

John Paul the Great adds his thoughts in Centesimus Annus:

Two things must be emphasized here: first, the great clarity in perceiving, in all its harshness, the actual condition of the working class — men, women and children; secondly, equal clarity in recognizing the evil of a solution which, by appearing to reverse the positions of the poor and the rich, was in reality detrimental to the very people whom it was meant to help. The remedy would prove worse than the sickness. By defining the nature of the socialism of his day as the suppression of private property, Leo XIII arrived at the crux of the problem.

His words deserve to be re-read attentively: "To remedy these wrongs (the unjust distribution of wealth and the poverty of the workers), the Socialists encourage the poor man's envy of the rich and strive to do away with private property, contending that individual possessions should become the common property of all...; but their contentions are so clearly powerless to end the controversy that, were they carried into effect, the working man himself would be among the first to suffer. They are moreover emphatically unjust, for they would rob the lawful possessor, distort the functions of the State, and create utter confusion in the community".³⁹ The evils caused by the setting up of this type of socialism as a State system — what would later be called "Real Socialism" — could not be better expressed.

13. Continuing our reflections, and referring also to what has been said in the Encyclicals Laborem exercens and Sollicitudo rei socialis, we have to add that the fundamental error of socialism is anthropological in nature. Socialism considers the individual person simply as an element, a molecule within the social organism, so that the good of the individual is completely subordinated to the functioning of the socio-economic mechanism. Socialism likewise maintains that the good of the individual can be realized without reference to his free choice, to the unique and exclusive responsibility which he exercises in the face of good or evil. Man is thus reduced to a series of social relationships, and the concept of the person as the autonomous subject of moral decision disappears, the very subject whose decisions build the social order. From this mistaken conception of the person there arise both a distortion of law, which defines the sphere of the exercise of freedom, and an opposition to private property. A person who is deprived of something he can call "his own", and of the possibility of earning a living through his own initiative, comes to depend on the social machine and on those who control it. This makes it much more difficult for him to recognize his dignity as a person, and hinders progress towards the building up of an authentic human community.

In contrast, from the Christian vision of the human person there necessarily follows a correct picture of society. According to Rerum novarum and the whole social doctrine of the Church, the social nature of man is not completely fulfilled in the State, but is realized in various intermediary groups, beginning with the family and including economic, social, political and cultural groups which stem from human nature itself and have their own autonomy, always with a view to the common good. This is what I have called the "subjectivity" of society which, together with the subjectivity of the individual, was cancelled out by "Real Socialism".⁴⁰

If we then inquire as to the source of this mistaken concept of the nature of the person and the "subjectivity" of society, we must reply that its first cause is atheism. It is by responding to the call of God contained in the being of things that man becomes aware of his transcendent dignity. Every individual must give this response, which constitutes the apex of his humanity, and no social mechanism or collective subject can substitute for it. The denial of God deprives the person of his foundation, and consequently leads to a reorganization of the social order without reference to the person's dignity and responsibility.

The atheism of which we are speaking is also closely connected with the rationalism of the Enlightenment, which views human and social reality in a mechanistic way. Thus there is a denial of the supreme insight concerning man's true greatness, his transcendence in respect to earthly realities, the contradiction in his heart between the desire for the fullness of what is good and his own inability to attain it and, above all, the need for salvation which results from this situation. [CA, para 12-13]

John Paul goes on to re-affirm the Church's commitment to the free market:

34. It would appear that, on the level of individual nations and of international relations, the free market is the most efficient instrument for utilizing resources and effectively responding to needs. But this is true only for those needs which are "solvent", insofar as they are endowed with purchasing power, and for those resources which are "marketable", insofar as they are capable of obtaining a satisfactory price. But there are many human needs which find no place on the market. It is a strict duty of justice and truth not to allow fundamental human needs to remain unsatisfied, and not to allow those burdened by such needs to perish. It is also necessary to help these needy people to acquire expertise, to enter the circle of exchange, and to develop their skills in order to make the best use of their capacities and resources. Even prior to the logic of a fair exchange of goods and the forms of justice appropriate to it, there exists something which is due to man because he is man, by reason of his lofty dignity. Inseparable from that required "something" is the possibility to survive and, at the same time, to make an active contribution to the common good of humanity. [CA, para 34]

The Pope even endorses the role profit plays in a market economy

The Church acknowledges the legitimate role of profit as an indication that a business is functioning well. When a firm makes a profit, this means that productive factors have been properly employed and corresponding human needs have been duly satisfied. But profitability is not the only indicator of a firm's condition. It is possible for the financial accounts to be in order, and yet for the people — who make up the firm's most valuable asset — to be humiliated and their dignity offended. Besides being morally inadmissible, this will eventually have negative repercussions on the firm's economic efficiency. In fact, the purpose of a business firm is not simply to make a profit, but is to be found in its very existence as a community of persons who in various ways are endeavouring to satisfy their basic needs, and who form a particular group at the service of the whole of society. Profit is a regulator of the life of a business, but it is not the only one; other human and moral factors must also be considered which, in the long term, are at least equally important for the life of a business. [CA, para 35]

Again, neither Pope Leo XIII nor Pope John Paul the Great fail to critique capitalism, but they do proclaim the necessity of a free market at the foundation of a just society. Their criticisms of capitalism are found in the error of reducing man and society to the market, as well as man's role as the steward of creation. Their criticisms of capitalism are grounded in the fact that man is a moral actor in addition to being an economic one and thus must use just means to pursue the end of providing for himself and his family (e.g conduct business honestly and do not wantonly destroy the environment, which is God's gift to man). Also, man must have (as has been mentioned above) an active concern for the well-being of his neighbor, rendering such assistance to him as he is able. Indeed, the more a man has, the more he is able to devote to helping his fellow man. Thus, an economic system which maximizes its output is an economic system in which people are able to contribute the most to aid those in need.

The response to poverty and even environmental degradation is not massive state intervention and regulation; it is personal charity and responsibility. Christ calls us to give of ourselves for His sake and the sake of our neighbor in need. He doesn't call us to leave the poor in the hands of the State.

There's nothing wrong with making an honest buck, or even a billion of them. In the end, it's what we do with our money that matters, not how much of it we make: to whom much is given, much will be required.