Catholic Business

Ambiguities of the word "Capitalism"

I don't like the word "capitalism"--it has too many meanings to different people. I was pleased to see that Pope Benedict did not use the word even once in Caritas in Veritate, his encyclical letter on the economy, preferring instead to speak of the "market economy." 

Here's a thoughtful account of the problems with the word "capitalism":

Capitalism: Yes and No

Academic responses to Caritas in Veritate

 

From the Economist:

Pope Benedict XVI released his third encyclical, Caritas in Veritate (Charity in Truth), in July 2009; it was supposed to come out earlier, but the Vatican wanted to be able to respond to the developing economic crisis. Now, business and law academics have had time to mull over Benedict’s words and decide what they imply for corporate governance.

The rest of the article is here.

A Revitalization of Agriculture

Pope Benedict's Angelus message for Sunday, 14 November 2010

Dear Brothers and Sisters,

In the Second Reading of today's Liturgy, the Apostle Paul underlines the importance of work for the life of man. We are reminded of this idea on “Thanksgiving Day”, that is traditionally celebrated in Italy on this second Sunday in November, as the offering of thanks to God at the end of the harvest season. Although in other geographical areas farming periods naturally differ, today I would like to draw inspiration from St Paul's words to reflect on agricultural work in particular.

The full gravity of the current economic crisis, discussed these past few days at the “G20 Summit”, should be understood. This crisis has numerous causes and is a strong reminder of the need for a profound revision of the model of global economic development (cf. Encyclical, Caritas in Veritate, n. 21).

It is an acute symptom which has been added to a long list of many far more serious and well-known problems, such as the lasting imbalance between wealth and poverty, the scandal of world hunger, the ecological emergency and the now widespread problem of unemployment.

In this context, a strategic revitalization of agriculture is crucial. Indeed, the process of industrialization has often overshadowed the agricultural sector, which although benefiting in its turn from modern technology has nevertheless lost importance with notable consequences, even at the cultural level. It seems to me that it is time to re-evaluate agriculture, not in a nostalgic sense but as an indispensable resource for the future.

In the present economic situation, the dynamic economies are tempted to pursue advantageous alliances, which nevertheless may have detrimental results for other poorer States, situations of extreme poverty among the masses and the depletion of the natural resources of the earth that God has entrusted to man, as it says in Genesis, so that he may till it and keep it (cf. 2: 15). And in spite of the crisis it can still be seen that in the old industrialized countries, lifestyles marked by unsustainable consumerism are encouraged. These also prove damaging for the environment and for the poor. Then a really concerted aim for a new balance between farming, industry and services is necessary so that development may be sustainable, so that no one will lack bread and work, air and water, and that the other fundamental resources may be preserved as universal rights (cf. Encyclical Caritas in Veritate, n. 27). Thus it is essential to cultivate and spread a clear ethical awareness that is equal to facing the most complicated challenges of our time. Everyone should be taught to consume in a wiser and more responsible way. We should promote personal responsibility along with a social dimension of rural activities based on the undying values of hospitality, solidarity and sharing the toil of labour. Many young people have already chosen this path and many professionals are also returning to agricultural enterprises, feeling that in this way they are not only responding to personal and family needs but also to a sign of the times, to a concrete sensibility for the common good.

Let us pray to the Virgin Mary that these reflections may serve as an incentive to the international community, as we thank God for the fruits of the earth and the work of mankind

Pope speaks to Roman business leaders

"The Roman business reality, made up in great part by small and medium enterprises, ... today operates also in a context characterized by globalization, by the negative effects of the recent financial crisis, by the so-called "financialization" of the economy of businesses themselves. It is a complex situation, because the present crisis has sorely tested the economic and productive systems of several countries. Nevertheless, it must be lived with confidence, because it can be considered as an opportunity from the point of view of the revision of models of development and of a new organization of the world of finance, a "new time" -- as has been said -- of profound revision."

Read the rest here, courtesy of Zenit. 

Finance in the service of society

Pope Benedict XVI on the Financial Industry, in Caritas in Veritate: 

Finance, therefore — through the renewed structures and operating methods that have to be designed after its misuse, which wreaked such havoc on the real economy — now needs to go back to being an instrument directed towards improved wealth creation and development. ... Financiers must rediscover the genuinely ethical foundation of their activity, so as not to abuse the sophisticated instruments which can serve to betray the interests of savers. ... If love is wise, it can find ways of working in accordance with provident and just expediency, as is illustrated in a significant way by much of the experience of credit unions. (#65)

What would George Bailey do?  Take a look at this video: 

Finance and ethics...

Pope Benedict, in Caritas in Veritate, wrote: 

What should be avoided is a speculative use of financial resources that yields to the temptation of seeking only short-term profit, without regard for the long-term sustainability of the enterprise, its benefit to the real economy and attention to the advancement, in suitable and appropriate ways, of further economic initiatives in countries in need of development (#40).

Financiers must rediscover the genuinely ethical foundation of their activity, so as not to abuse the sophisticated instruments which can serve to betray the interests of savers. Right intention, transparency, and the search for positive results are mutually compatible and must never be detached from one another (#65).

David P. Goldman, in First Things' Spengler blog, writes today:

A close look at the circumstances of the bank bailout of the past year, particularly the government’s decision to pay out AIG’s guarantees of other banks’ subprime derivative at 100 cents on the dollar, might reveal embezzlement on the grand scale. ... [more]

Courage to Adhere to the Faith of the Church

Pope Benedict, in his homily during the first vespers of the Solemnity for the closing of the Pauline year, on Monday, may have been giving a preview of the main themes of his forthcoming encyclical, according to NCR journalist John L. Allen, Jr. 

In essence: no renewal of the world without personal, spiritual renewal. 

The Pope's homily is here and Allen's article, with several extracts from the homily, and much editorializing, is here.

Forthcoming papal encyclical

Dr. Robert Moynihan, editor of Inside the Vatican, is writing a series of "newsflashes" in anticipation of Pope Benedict's social encyclical, due out on or around June 29th., in an "attempt to sketch ... a context within which the encyclical may be read."

The first piece is about the Centesimus Annus Pro Pontifice conference I wrote about in my last post:

http://www.insidethevatican.com/newsflash/2009/newsflash-jun-16-09.htm

The second (scroll down to "Concerning the upcoming encyclical") is about the work of Fr. Mario Toso, who apparently advised the Holy Father on this encyclical:

http://www.insidethevatican.com/newsflash/2009/newsflash-jun-19-09.htm

Papal address to educators at the Catholic University of America

I was delighted to be able to attend the Holy Father's address to educators during his visit to the Catholic University of America.  The text of his address, which is a must-read for all Catholic educators, can be found here.  

The National Catholic Register's article on the Pope's address, by star reporter Tim Drake, is here.