Free Markets, Free People

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Pontiff Pontificates On Economics … Badly

When it comes to economics, the Pope should stick to poping. While it’s not uncommon for the papacy to issue decrees and opinions vaguely in line with common socialist principles (e.g. love thy neighbor, etc.), it is somewhat rare for the Pope to outright call for one-world government:

Pope Benedict XVI on Tuesday called for a radical rethinking of the global economy, criticizing a growing divide between rich and poor and urging the establishment of a “world political authority” to oversee the economy and work for the “common good.”

He criticized the current economic system, “where the pernicious effects of sin are evident,” and urged financiers in particular to “rediscover the genuinely ethical foundation of their activity.”

He also called for “greater social responsibility” on the part of business. “Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty,” Benedict wrote in his new encyclical, which the Vatican released on Tuesday.

I wonder what happened to leave to Caesar what is Caesar’s and to God what is God’s? Or how about that whole concept of “free will”; you know the very basis and foundation of our religious “faith” (which, of course, can only come from choice and not from force)? That seems to be under indictment with Pope Benedict’s latest encyclical.

Leaving aside world governance for the moment, the Pope really goes off the rails when he gets into economic policy. For example, at one point he decries “globalization” and “outsourcing” as little more than the rich preying on the poor:

Indeed, sometimes Benedict sounds like an old-school European socialist, lamenting the decline of the social welfare state and praising the “importance” of labor unions to protect workers. Without stable work, he notes, people lose hope and tend not to get married and have children.

But he also wrote that “The so-called outsourcing of production can weaken the company’s sense of responsibility towards the stakeholders — namely the workers, the suppliers, the consumers, the natural environment and broader society — in favor of the shareholders.”

In short, managers should run their companies for the benefit of those who whine about the common good rather than for those who actually paid for the company (i.e. the shareholders). I’m guessing this is the “squeaky wheel” part of the sermon.

Yet, while outsourcing is deemed “bad”, the Pope also laments that poor countries aren’t better taken care of by richer ones. Towards that end

Benedict also called for a reform of the United Nations so that there could be a unified “global political body” that allowed the less powerful of the earth to have a voice, and he called on rich nations to help less fortunate ones.

“In the search for solutions to the current economic crisis, development aid for poor countries must be considered a valid means of creating wealth for all,” he wrote.

Except for the fact that “development aid” is not wealth. Wealth is created through productivity, not handouts. Indeed, the surest and simplest way to aid development in poor countries to give them jobs … a.k.a “outsourcing.” Doesn’t that whole give a man a fish/teach a man to fish thing ring any bells, your Holiness? Moreover, the more things like outsourcing happen, then the greater wealth there is in the world, and the more work/wealth/happiness there is for everyone to enjoy. Again, I’m pretty sure that was something about loaves and fishes in the Bible that would help illustrate this point.

So much for Papal infallibility.

Just to be clear, I say all of this as a practicing Catholic who is raising his own children in the same tradition. I have great respect for the Pontif when it comes to matters of the spirit. I just wish he’d leave the day-to-day management to the rest of us.