The practice of speculation draws mixed reactions among Christians, as some believe it is intrinsically evil and others see great good coming from it. Over at Legatus Magazine, Acton’s Director of Research, Samuel Gregg, hopes to shed some light on whether or not Christians should engage in speculation. The Roman Catholic Catechism condemns specific types of speculation, but Gregg argues that the practice could be justified in other situations not addressed by the Catechism. However, before Christians accept or reject it, it’s important that we understand this financial tool in all its complexity. Gregg quotes the Catholic Catechism:
The Catechism of the Catholic Church identifies “speculation in which one contrives to manipulate the price of goods artificially in order to gain an advantage to the detriment of others” as “morally illicit” (CCC #2409).. This wording indicates that there are legitimate forms of speculation, though these are left unspecified.
The justice of different choices denoted as “speculative” depends upon the specifics of a given choice. Speculation that relies, for instance, upon telling falsehoods is wrong because choosing to lie is, in Christian terms, always wrong. It would be equally unjust for a financial firm to try and manipulate the futures market by expressing to others excessive optimism or negativity about the prospects for a given commodity.