Catholic Social Doctrine: Property, Labor, and Economy
19th-Century Social Context and the Church
The 19th-century social context led to the development of the Social Doctrine of the Church (SDC) and specific doctrinal responses to the economic systems of that era.
Social Consequences of Industrialization
The period was defined by harsh social outcomes resulting from the new industrial economic system:
- Widespread Misery: The masses lived in a state of “utter poverty.”
- Social Degeneration: Rapid industrial expansion, scientific discoveries, and a shift in the master-worker relationship led to moral degeneracy.
- Inequality and Usury: A massive imbalance existed between “non-owning workers” and the “enormous riches” of a few. This was exacerbated by “rapacious usury” and inequitable wealth distribution.
- Dictatorship of Capital: A “dictatorship of money” emerged where those controlling the money supply also controlled the spirit of economic life.
The Church’s Doctrinal Stance
The Church critiques both economic liberalism and socialist solutions, emphasizing human dignity and the common good.
- Objection to Capitalism: The Church rejects capitalism that assumes an “unlimited right to property” without subordinating it to the common good, as this contradicts natural law.
- Economic Development Principles: Development must respect human determination and cannot be left to powerful groups, governments, or purely “mechanical” economic courses.
- Need for Harmony: There must be a harmonious combination of individual efforts and public authority.
- Condemnation of Extremes: The Church rejects Liberalism (blocking reforms under “false liberty”) and Socialism (subordinating individual rights to collective production).
- International Relations: All nations must play an active role in directing global development.
The Nature and Logic of Private Property
A Natural and Primary Right
The sense of property is deeply implanted in human nature. It ensures space for personal and family autonomy and is a form of human freedom. The right to private ownership of productive goods (capital) has permanent validity because the individual is prior to society.
The Twin Rocks of Shipwreck
The Church warns against two extremes regarding property:
- Individualism: Denying the social and public character of property rights.
- Collectivism: Rejecting the private and individual character of property.
Limitations and the Social Mortgage
While property is a primary right, it is not an absolute or unconditional “dogma.”
- The Social Mortgage: St. John Paul II stated that private property is under a “social mortgage,” meaning it has an intrinsically social function.
- Universal Destination of Goods: The goods of this world are originally meant for everyone. Private ownership exists so that the earth’s resources may serve the entire human family.
- Surplus Goods: No one is justified in keeping surplus goods solely for themselves when others lack the bare necessities of life.
Property in Relation to the State
The State cannot suppress the natural right to private property but has the right to control its use for the public good. Following the principle of subsidiarity, the State must not extend ownership beyond what is required. Furthermore, taxation must be fair; the State would be “unjust and cruel” if it deprived owners of more than is reasonable.
The Relationship Between Capital and Labor
It is false to ascribe production to capital alone or labor alone. Capital is the product of the work of generations and is unceasingly created through work. Respect for work demands a constructive revision of the right to private ownership of the means of production in both theory and practice.
A Human-Centered Economic Theory
Economics is a social science focused on satisfying human needs within a social environment.
- Human-Centered Purpose: The Church acts as an “expert in humanity,” ensuring economic fields promote human dignity.
- The Logic of Gift: Economic activity must include the “principle of gratuitousness” and fraternity. The logic of the gift accompanies justice rather than excluding it.
- Moral and Technical Balance: Development requires “upright men and women” with moral consistency, rather than just financial engineering.
- Critique of Autonomy: The conviction that the economy must be “autonomous” from moral influences leads to the destruction of personal freedom and a failure to deliver justice.