By David Harsanyi
Pope Francis' first apostolic exhortation, "Evangelii Gaudium" ("The Joy of the Gospel"), is a beautiful document and a joy to read. I'll leave its theological implications to those who live in the Roman Catholic Church. What's got many people praising the pope today, though, is not his plea for good works but rather his critique of capitalism.You could always detect a pinch of socialistic seasoning in the church's theological stew. But in this case, the pope doesn't simply point out that the wealthy aren't doing enough to help alleviate poverty. He uses the recognizable rhetoric of the political left to accuse free market systems of generating and nurturing that poverty.
The pope condemns the "new tyranny" of "idolatry of money," reasonably arguing that economic systems should not be accepted with blind faith but also saying that "as long as the problems of the poor are not radically resolved by rejecting the absolute autonomy of markets and financial speculation and by attacking the structural causes of inequality, no solution will be found for the world's problems or, for that matter, to any problems."
For starters, it's troubling that the pope fails to make any genuine distinction between Western poverty (terrible) and the poverty of the Third World (unimaginably terrible). But is it really true that "absolute autonomy of markets and financial speculation" are the driving reasons for poverty and inequality? People in places such as Congo, Burundi and Mozambique live under corrupt authoritarian regimes where crippling poverty has a thousand fathers — none of them named capitalism. The people of Togo do not suffer in destitution because of some derivative scheme on Wall Street or the fallout from a tech IPO.
"While the earnings of a minority are growing exponentially," the pope goes on to say, "so too is the gap separating the majority from the prosperity enjoyed by those happy few."
In truth, global inequality has been dropping for years. The World Bank estimates that global poverty was halved from 1990 to 2010. In fact, according to the World Bank, the United Nations' "millennium development goal" of cutting world poverty in half by 2015 came in five years ahead of schedule, despite a major global recession. The decline in poverty coincides, not coincidentally, with developing nations embracing more market-based systems.
Moreover, the pope falls into the trap of conflating inequality and poverty. Some countries enjoy income parity because most citizens are rich, and others do so because most citizens are poor. Put it this way: Egypt, Pakistan and Mongolia all enjoy more economic equality than the United States. The gross domestic product per capita here is $49,800. In Argentina, the pope's homeland, a place where wealth is more fairly distributed, it's $18,200.
Now, no reasonable person believes that any economic system is a cure-all. But how many reasonable people argue that market-based economies — and the underlying morality that drives them — haven't done more to alleviate poverty worldwide than any other system? For the most part, in fact, the more unfettered a nation's economic system is the more prosperous the population becomes and, consequently, the more it spends on charity and safety net programs. When we match up The Heritage Foundation's Index of Economic Freedom with the World Bank's measure of per capita income, we find that the countries with the most unencumbered systems and the most financial "speculation" usually have the least amount of poverty.
Rather than credit those who do their best to balance this imperfect system that lifts millions out of impoverishment, the pope attacks them for the prevalence of imaginary economic Darwinists who callously keep equality from blooming. "Consequently," these people "reject the right of states, charged with vigilance for the common good, to exercise any form of control," Pope Francis contends.
Any form of control? Really? The Federal Register in this country regularly comes in at more than 60,000 pages. Or, to put it another way, it's longer than all 46 books of the Old Testament, the 27 books of the New Testament and every gospel the Council of Nicaea decided to toss, combined. And the United States, a place teeming with these economic Darwinists, also happens to be one of the most charitable places on the planet — even before we begin counting per capita spending on safety nets.
Pope Francis' first apostolic exhortation, "Evangelii Gaudium" ("The Joy of the Gospel"), is a beautiful document and a joy to read. I'll leave its theological implications to those who live in the Roman Catholic Church. What's got many people praising the pope today, though, is not his plea for good works but rather his critique of capitalism.You could always detect a pinch of socialistic seasoning in the church's theological stew. But in this case, the pope doesn't simply point out that the wealthy aren't doing enough to help alleviate poverty. He uses the recognizable rhetoric of the political left to accuse free market systems of generating and nurturing that poverty.
The pope condemns the "new tyranny" of "idolatry of money," reasonably arguing that economic systems should not be accepted with blind faith but also saying that "as long as the problems of the poor are not radically resolved by rejecting the absolute autonomy of markets and financial speculation and by attacking the structural causes of inequality, no solution will be found for the world's problems or, for that matter, to any problems."
For starters, it's troubling that the pope fails to make any genuine distinction between Western poverty (terrible) and the poverty of the Third World (unimaginably terrible). But is it really true that "absolute autonomy of markets and financial speculation" are the driving reasons for poverty and inequality? People in places such as Congo, Burundi and Mozambique live under corrupt authoritarian regimes where crippling poverty has a thousand fathers — none of them named capitalism. The people of Togo do not suffer in destitution because of some derivative scheme on Wall Street or the fallout from a tech IPO.
"While the earnings of a minority are growing exponentially," the pope goes on to say, "so too is the gap separating the majority from the prosperity enjoyed by those happy few."
In truth, global inequality has been dropping for years. The World Bank estimates that global poverty was halved from 1990 to 2010. In fact, according to the World Bank, the United Nations' "millennium development goal" of cutting world poverty in half by 2015 came in five years ahead of schedule, despite a major global recession. The decline in poverty coincides, not coincidentally, with developing nations embracing more market-based systems.
Moreover, the pope falls into the trap of conflating inequality and poverty. Some countries enjoy income parity because most citizens are rich, and others do so because most citizens are poor. Put it this way: Egypt, Pakistan and Mongolia all enjoy more economic equality than the United States. The gross domestic product per capita here is $49,800. In Argentina, the pope's homeland, a place where wealth is more fairly distributed, it's $18,200.
Now, no reasonable person believes that any economic system is a cure-all. But how many reasonable people argue that market-based economies — and the underlying morality that drives them — haven't done more to alleviate poverty worldwide than any other system? For the most part, in fact, the more unfettered a nation's economic system is the more prosperous the population becomes and, consequently, the more it spends on charity and safety net programs. When we match up The Heritage Foundation's Index of Economic Freedom with the World Bank's measure of per capita income, we find that the countries with the most unencumbered systems and the most financial "speculation" usually have the least amount of poverty.
Rather than credit those who do their best to balance this imperfect system that lifts millions out of impoverishment, the pope attacks them for the prevalence of imaginary economic Darwinists who callously keep equality from blooming. "Consequently," these people "reject the right of states, charged with vigilance for the common good, to exercise any form of control," Pope Francis contends.
Any form of control? Really? The Federal Register in this country regularly comes in at more than 60,000 pages. Or, to put it another way, it's longer than all 46 books of the Old Testament, the 27 books of the New Testament and every gospel the Council of Nicaea decided to toss, combined. And the United States, a place teeming with these economic Darwinists, also happens to be one of the most charitable places on the planet — even before we begin counting per capita spending on safety nets.
The Pope's Bad Grasp of Basic
Where are his priorities?
By Judge Andrew Napolitano
What is the worst problem in the world today? Might it be war, starvation, genocide, sectarian violence, murder, slaughter of babies in the womb? Any of these would be a rational answer. But when Pope Francis was asked this question recently, he replied, "Youth unemployment."
To be sure, youth unemployment is a serious problem. In some parts of the United States, the richest country in the world, it has reached 25 percent. These are people who are no longer in school full time and are not yet 30 years of age. It is a problem for them and their families, for their communities, and for the welfare states that are supporting them. But is it the worst problem in the world? Is it a problem for the Roman Catholic Church? And is it something the Pope is competent to comment upon or to resolve?
The Pope's youth unemployment comments recently were removed from the Vatican's website. No sooner had that been done than the Holy Father issued his first encyclical: a formal papal teaching, as opposed to his now famous impromptu back-of-the-plane yet on-the-record comments.
His encyclical is about economics, and it reveals a disturbing ignorance. I say this with deference and respect. I also say this as a traditionalist Roman Catholic who laments the post-Vatican II watering down of sacred traditions, lessening of moral teaching and trivialization of liturgical practices. But I also say this as a firm believer that Pope Francis is the Vicar of Christ on Earth and, as such, personifies the teaching authority of the Church. He is morally and juridically capable of speaking ex cathedra -- that is, infallibly -- but only after surveying and distilling traditional Church teachings and only on matters affecting faith and morals.
Thank God, so to speak, that his teaching authority is limited to faith and morals, because in matters of economics, he is wide of the mark.
His encyclical, entitled "Joy of the Gospel," attacks free market capitalism because it takes too long for the poor to get rich. "They are still waiting," the Pope wrote. Well, without capitalism, which rewards hard work and sacrifice, they will wait forever. No economic system in history has alleviated more poverty, generated more opportunity and had more formerly poor people become rich than capitalism. And the essence of capitalism goes to the core of Catholic teaching: the personal freedom of every person. Capitalism is freedom to risk, freedom to work, freedom to save, freedom to retain the fruits of one's labors, freedom to own property and freedom to give to charity.
The problem with modern capitalism—a problem that escaped the scrutiny of His Holiness—is not too much freedom, but too little. The regulation of free markets by governments, the control of the private means of production by government bureaucrats, and the unholy alliances between governments, banks and industry have raised production costs, stifled competition, established barriers to entry into markets, raised taxes, devalued savings and priced many poor out of the labor force. The Pope would do well to pray for those who have used government to steal freedom so as to satisfy their lust for power, and for those who have bowed to government so as to become rich from governmental benefits and not by the fruits of their own labors.
Traditional Catholic social teaching imposes on all of us a moral obligation to become our brothers' keepers. But this is a personal moral obligation, enforced by conscience and Church teaching and the fires of Hell—not by the coercive powers of the government. Charity comes from the heart. It consists of freely giving away one's wealth. It is impossible to be charitable with someone else's money. That's theft, not charity.
If you give until it hurts, freely and out of love, and seek nothing temporal in return, you have built up treasure in Heaven. But if the government takes from you and redistributes your wealth to those whom the government has decided to benefit—rich and poor alike—what merit is there in that for you? If you give a poor person a fish to eat, in a day, he'll be hungry. If you show him how to catch fish and teach him how to acquire the tools needed to do so, he can become self-sufficient and perhaps one day rich enough to help others. If the government takes money from you to buy the person a fish, half of the money will be wasted.
The Pope seems to prefer common ownership of the means of production, which is Marxist, or private ownership and government control, which is fascist, or government ownership and government control, which is socialist. All of those failed systems lead to ashes, not wealth. Pope Francis must know this. He must also know that when Europe was in turmoil in 1931, his predecessor Pius XI wrote in one of his encyclicals: "(N)o one can be at the same time a sincere Catholic and a true Socialist."
The Church does not teach just for today, but for the life of man on Earth. That's why the essence of the Papacy is not contemporary problem solving, but preservation of truth and continuity of tradition. For this reason, Popes do not lightly contradict their predecessors. If it was sacred then, it is sacred now.
Timothy Cardinal Dolan, the Archbishop of New York, recently discovered serious structural problems with St. Patrick's Cathedral that will cost $200 million to repair. He will soon have that bill paid. Where did that money come from? It came from the disposable income of rich Catholic capitalists. Who will benefit from this? The blue-collar workers whom the restoration project is employing now have jobs, and everyone—rich and poor—who attends Mass at the refurbished St. Patrick's will do so in comfort and beauty.
What shall we do about the Pope and economics? We should pray for his faith and understanding and for a return to orthodoxy. That means Holy Mother Church under the Vicar of Christ—saving souls, not pocketbooks.
By Shikha Dalmia
Pope Francis doesn’t have to thank capitalism, a system that has done far more to alleviate poverty, his pet crusade, than the institution he leads. But he should at least stop demonizing it—not least because it enables the very activity that he cherishes most: charity.
For about the 6th time since assuming office eight months ago, the Pope last week offered a sweeping condemnation of “unfettered” capitalism, blaming its alleged obsession with the “golden calf” for perpetuating poverty, oppression, tyranny and much else.
The Pope claims that the “opinion” that “economic growth, encouraged by the free market, will inevitably succeed in bringing about greater justice and inclusiveness” has “never been confirmed by the facts.” (He obviously hasn’t been listening to Bono, which isn't entirely a bad thing.)
Therefore, governments “charged with the vigilance of the common good” must take strong steps to “exercise any form of control,” including redistributive taxes, to stop the march toward a society where “those excluded are no longer its underside or its fringes or its disenfranchised—they are no longer even part of it.
No doubt such purple prose about “exclusion” will gain him adoring fans among the left—notwithstanding the irony that he is speaking for an institution that excludes half of humanity—women—from the ranks of priesthood. But is capitalism the cause of poverty and is redistribution the cure?
No and Nyet.
Poverty is the default condition of humanity. It is the given. What needs explaining is wealth. And the greatest engine of wealth creation is the market. By raising productivity and lowering the price of goods, markets certainly help the rich, but they help the poor more. Capitalism’s most impressive achievement, Joseph Schumpeter noted, was not providing more silk stockings for the Queen, “but in bringing them within reach of factory girls.”
Indeed, far from promoting Social Darwinism that thrives on “the survival of the fittest, where the powerful feed upon the powerless,” as the Pope claimed, capitalism does the opposite: It fosters economic competition among producers so that consumers don't have to compete for scarce goods. In 1900, it took an average worker in the West about an hour to earn a half a gallon of milk. In 1930, half an hour. And today? Scarcely a few minutes.
If all the profits of the rich in America were handed over to workers, notes economic historian Deirdre McCloskey, the workers would only be 30 percent better off. “But in the last two centuries we’re 3,000 percent better off.”
But capitalism hasn’t only produced gains in the West. Between 1990 and 2010, the number of people in extreme poverty as a share of the total population in developing countries has been cut in half from 43 percent to 21 percent—a reduction of one billion people. Why? Because China and India jettisoned Big Government Socialism, the very thing the Pope advocates, and liberalized their economies.
It is no exaggeration to say that charity is a balm for poverty but capitalism is the cure—or in Bono’s evocative mixed metaphor capitalism’s “job creators and innovators are the key, and aid is just a bridge."
Indeed, without capitalism, even this balm would be in short supply or this bridge too short.
Capitalism puts more discretionary income in the pockets of people to devote to charitable pursuits. It is hardly a co-incidence that America donates over $300 billion annually toward charitable causes at home and abroad, the highest of any country on a per capita basis.
The church itself is a big beneficiary of this capitalist largesse with its U.S. wing alone contributing 60 percent to its overall global wealth. Some of this money comes from donations, but a big chunk comes, actually, from directly partaking in capitalism: The church is reportedly the largest landowner in Manhattan, the financial center of the global capitalism system, whose income puts undisclosed sums into its coffers.
So the new Pope needs to be careful not to bite the hand that feeds his institution and its work. Otherwise, neither he nor the poor in whose name he is speaking will have much to be thankful for.
Related Reading:
He Ain't St. Levi, He's His Brother's Tax Collector ... What Jesus Really Thought About Taxes
Income-Inequality Revisionism
American Catholicism’s Pact With the Devil
The Fed & The Credit Bubble: Those That Refuse To Learn History Are Doomed to Repeat It
The Post-Work Economy
What is the worst problem in the world today? Might it be war, starvation, genocide, sectarian violence, murder, slaughter of babies in the womb? Any of these would be a rational answer. But when Pope Francis was asked this question recently, he replied, "Youth unemployment."
To be sure, youth unemployment is a serious problem. In some parts of the United States, the richest country in the world, it has reached 25 percent. These are people who are no longer in school full time and are not yet 30 years of age. It is a problem for them and their families, for their communities, and for the welfare states that are supporting them. But is it the worst problem in the world? Is it a problem for the Roman Catholic Church? And is it something the Pope is competent to comment upon or to resolve?
The Pope's youth unemployment comments recently were removed from the Vatican's website. No sooner had that been done than the Holy Father issued his first encyclical: a formal papal teaching, as opposed to his now famous impromptu back-of-the-plane yet on-the-record comments.
His encyclical is about economics, and it reveals a disturbing ignorance. I say this with deference and respect. I also say this as a traditionalist Roman Catholic who laments the post-Vatican II watering down of sacred traditions, lessening of moral teaching and trivialization of liturgical practices. But I also say this as a firm believer that Pope Francis is the Vicar of Christ on Earth and, as such, personifies the teaching authority of the Church. He is morally and juridically capable of speaking ex cathedra -- that is, infallibly -- but only after surveying and distilling traditional Church teachings and only on matters affecting faith and morals.
Thank God, so to speak, that his teaching authority is limited to faith and morals, because in matters of economics, he is wide of the mark.
His encyclical, entitled "Joy of the Gospel," attacks free market capitalism because it takes too long for the poor to get rich. "They are still waiting," the Pope wrote. Well, without capitalism, which rewards hard work and sacrifice, they will wait forever. No economic system in history has alleviated more poverty, generated more opportunity and had more formerly poor people become rich than capitalism. And the essence of capitalism goes to the core of Catholic teaching: the personal freedom of every person. Capitalism is freedom to risk, freedom to work, freedom to save, freedom to retain the fruits of one's labors, freedom to own property and freedom to give to charity.
The problem with modern capitalism—a problem that escaped the scrutiny of His Holiness—is not too much freedom, but too little. The regulation of free markets by governments, the control of the private means of production by government bureaucrats, and the unholy alliances between governments, banks and industry have raised production costs, stifled competition, established barriers to entry into markets, raised taxes, devalued savings and priced many poor out of the labor force. The Pope would do well to pray for those who have used government to steal freedom so as to satisfy their lust for power, and for those who have bowed to government so as to become rich from governmental benefits and not by the fruits of their own labors.
Traditional Catholic social teaching imposes on all of us a moral obligation to become our brothers' keepers. But this is a personal moral obligation, enforced by conscience and Church teaching and the fires of Hell—not by the coercive powers of the government. Charity comes from the heart. It consists of freely giving away one's wealth. It is impossible to be charitable with someone else's money. That's theft, not charity.
If you give until it hurts, freely and out of love, and seek nothing temporal in return, you have built up treasure in Heaven. But if the government takes from you and redistributes your wealth to those whom the government has decided to benefit—rich and poor alike—what merit is there in that for you? If you give a poor person a fish to eat, in a day, he'll be hungry. If you show him how to catch fish and teach him how to acquire the tools needed to do so, he can become self-sufficient and perhaps one day rich enough to help others. If the government takes money from you to buy the person a fish, half of the money will be wasted.
The Pope seems to prefer common ownership of the means of production, which is Marxist, or private ownership and government control, which is fascist, or government ownership and government control, which is socialist. All of those failed systems lead to ashes, not wealth. Pope Francis must know this. He must also know that when Europe was in turmoil in 1931, his predecessor Pius XI wrote in one of his encyclicals: "(N)o one can be at the same time a sincere Catholic and a true Socialist."
The Church does not teach just for today, but for the life of man on Earth. That's why the essence of the Papacy is not contemporary problem solving, but preservation of truth and continuity of tradition. For this reason, Popes do not lightly contradict their predecessors. If it was sacred then, it is sacred now.
Timothy Cardinal Dolan, the Archbishop of New York, recently discovered serious structural problems with St. Patrick's Cathedral that will cost $200 million to repair. He will soon have that bill paid. Where did that money come from? It came from the disposable income of rich Catholic capitalists. Who will benefit from this? The blue-collar workers whom the restoration project is employing now have jobs, and everyone—rich and poor—who attends Mass at the refurbished St. Patrick's will do so in comfort and beauty.
What shall we do about the Pope and economics? We should pray for his faith and understanding and for a return to orthodoxy. That means Holy Mother Church under the Vicar of Christ—saving souls, not pocketbooks.
The Pope's Self-Defeating Anti-Capitalistic Rant
He shouldn't bite the hand that feeds the Church
By Shikha Dalmia
Pope Francis doesn’t have to thank capitalism, a system that has done far more to alleviate poverty, his pet crusade, than the institution he leads. But he should at least stop demonizing it—not least because it enables the very activity that he cherishes most: charity.
For about the 6th time since assuming office eight months ago, the Pope last week offered a sweeping condemnation of “unfettered” capitalism, blaming its alleged obsession with the “golden calf” for perpetuating poverty, oppression, tyranny and much else.
The Pope claims that the “opinion” that “economic growth, encouraged by the free market, will inevitably succeed in bringing about greater justice and inclusiveness” has “never been confirmed by the facts.” (He obviously hasn’t been listening to Bono, which isn't entirely a bad thing.)
Therefore, governments “charged with the vigilance of the common good” must take strong steps to “exercise any form of control,” including redistributive taxes, to stop the march toward a society where “those excluded are no longer its underside or its fringes or its disenfranchised—they are no longer even part of it.
No doubt such purple prose about “exclusion” will gain him adoring fans among the left—notwithstanding the irony that he is speaking for an institution that excludes half of humanity—women—from the ranks of priesthood. But is capitalism the cause of poverty and is redistribution the cure?
No and Nyet.
Poverty is the default condition of humanity. It is the given. What needs explaining is wealth. And the greatest engine of wealth creation is the market. By raising productivity and lowering the price of goods, markets certainly help the rich, but they help the poor more. Capitalism’s most impressive achievement, Joseph Schumpeter noted, was not providing more silk stockings for the Queen, “but in bringing them within reach of factory girls.”
Indeed, far from promoting Social Darwinism that thrives on “the survival of the fittest, where the powerful feed upon the powerless,” as the Pope claimed, capitalism does the opposite: It fosters economic competition among producers so that consumers don't have to compete for scarce goods. In 1900, it took an average worker in the West about an hour to earn a half a gallon of milk. In 1930, half an hour. And today? Scarcely a few minutes.
If all the profits of the rich in America were handed over to workers, notes economic historian Deirdre McCloskey, the workers would only be 30 percent better off. “But in the last two centuries we’re 3,000 percent better off.”
But capitalism hasn’t only produced gains in the West. Between 1990 and 2010, the number of people in extreme poverty as a share of the total population in developing countries has been cut in half from 43 percent to 21 percent—a reduction of one billion people. Why? Because China and India jettisoned Big Government Socialism, the very thing the Pope advocates, and liberalized their economies.
It is no exaggeration to say that charity is a balm for poverty but capitalism is the cure—or in Bono’s evocative mixed metaphor capitalism’s “job creators and innovators are the key, and aid is just a bridge."
Indeed, without capitalism, even this balm would be in short supply or this bridge too short.
Capitalism puts more discretionary income in the pockets of people to devote to charitable pursuits. It is hardly a co-incidence that America donates over $300 billion annually toward charitable causes at home and abroad, the highest of any country on a per capita basis.
The church itself is a big beneficiary of this capitalist largesse with its U.S. wing alone contributing 60 percent to its overall global wealth. Some of this money comes from donations, but a big chunk comes, actually, from directly partaking in capitalism: The church is reportedly the largest landowner in Manhattan, the financial center of the global capitalism system, whose income puts undisclosed sums into its coffers.
So the new Pope needs to be careful not to bite the hand that feeds his institution and its work. Otherwise, neither he nor the poor in whose name he is speaking will have much to be thankful for.
Related Reading:
He Ain't St. Levi, He's His Brother's Tax Collector ... What Jesus Really Thought About Taxes
Income-Inequality Revisionism
American Catholicism’s Pact With the Devil
The Fed & The Credit Bubble: Those That Refuse To Learn History Are Doomed to Repeat It
The Post-Work Economy
The Four Horsemen Of The Progressive Apocalypse
Obama's Neo-Nationalism
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