Posts tagged with: centesimus annus

Blog author: jcouretas
posted by on Tuesday, October 19, 2010

A new Detroit News column by Acton Institute President and co-founder Rev. Robert A. Sirico:

Tea party must define ideas

By Father Robert Sirico

If the recent analysis by the New York Times on the success of the tea party movement is correct, the influence of this movement favoring limited government and low levels of taxation may have a decided impact in the upcoming elections, particularly in holding the Republican leadership’s feet to the fire on a variety of related issues.

The influence and more especially the authenticity of the tea party movement also is being debated in religious circles where some writers have expressed a skepticism as to how the evident religious sentiments expressed by many (but not all) tea party activists can be compatible with the undeniable Christian obligation to tend to the needs of “the least of these my brethren.”

Stephen Schneck, director of the Institute for Policy Research and Catholic Studies at The Catholic University of America, said in critique of the tea party approach, “Much as we might like otherwise, the Catholic argument is that government and citizen are equally expected to be our brother’s keeper.”

One of the leaders of the evangelical left, Jim Wallis, renders what I think is a wholly inaccurate image of tea party folks when he says, “When government regulation is the enemy, the market is set free to pursue its own self-interest without regard for public safety, the common good, and the protection of the environment — which Christians regard as God’s creation. Libertarians seem to believe in the myth of the sinless market and that the self-interest of business owners or corporations will serve the interests of society; and if they don’t, it’s not government’s role to correct it.”

From my conversations with numerous supporters of the tea party movement from around the country, these comments fail to grasp the essential point of what this movement is about, and why religious people are attracted to it.

I have no doubt there are people on the fringes of the tea party movement who hate government. Most of these, however, I would suggest hate government the way most of us “hate” the dentist — that is, we are not in favor of abolishing dentistry; we just want to make sure it hurts as little as possible and does not do permanent damage.

It is not that tea party folk believe in “the myth of the sinless market.”

It is that they, and most believers, indeed most Americans, believe that politicians and bureaucrats are not immaculately conceived and require limits to their interventions.

And so we come to what may be the real deficiency of this popular movement — it has yet to define a set of clear principles that permit it to consistently outline its view of society and the proper role of the state.

Such a set of principles exists within both the Roman Catholic and Reformed Protestant traditions and are known respectively as subsidiarity and sphere sovereignty. Each term in different yet complementary ways states that needs are best met at the most local level of their existence and that higher orders of social organization (that is, mediating institutions and the public sector) may only temporarily intervene into lower spheres of social organization in moments of great crisis. This intervention by higher authorities should happen to assist, not replace, local relationships.

In his monumental encyclical “The Hundredth Year” Pope John Paul II outlined the principle of subsidiarity and demonstrated an understanding of the reaction that can occur in the social sphere when the limits of the state are not clearly maintained. Although written almost a decade ago, his cautions and observations could have been penned today:

By intervening directly and depriving society of its responsibility, the Social Assistance State leads to a loss of human energies and an inordinate increase of public agencies, which are dominated more by bureaucratic ways of thinking than by concern for serving their clients, and which are accompanied by an enormous increase in spending. In fact, it would appear that needs are best understood and satisfied by people who are closest to them and who act as neighbors to those in need. It should be added that certain kinds of demands often call for a response which is not simply material but which is capable of perceiving the deeper human need. One thinks of the condition of refugees, immigrants, the elderly, the sick, and all those in circumstances which call for assistance, such as drug abusers: all these people can be helped effectively only by those who offer them genuine fraternal support, in addition to the necessary care.

When in Krakow, Poland, for Acton’s recent conference, I was interviewed by journalist Dominik Jaskulski for the news organization Fronda. Dominik has kindly allowed us to publish excerpts from his translation of the interview.

Father Sirico, tell us why your conference, organized with the Foundation PAFERE, is important for Poland.

Today, many people in the world are in a situation of transition. If you do not respond well in such conditions, you may see a repeat episode where – as you had here in Poland — people turned to socialist and communist ideas. I think it’s very important that people understand what culture is and how dynamic it is. With the foundation of a moral framework, it is much easier to choose the proper path of development. In that framework, we want above all to respect the dignity of the human person.

In Poland, we often see a discrepancy between the views of younger people and their elders about the nature of the transformation that occurred. Older people often talk about the loss of state benefits.

It’s quite funny, because less than 20 years ago, when I first came here, I gave an interview in which I was asked about how I thought things would go in the next few years. I said something like this: When the Israelites were leaving Egypt, it took them 40 years to arrive at the Promised Land. That’s mainly because Egypt was still in their hearts. In the Bible, the Israelites constantly asked, “Where is the land of milk and honey? When we were in Egypt, at least we had the dates and other food.” It took a whole generation to accept the changes that occurred.

What about unemployment? Under communism, we all had jobs. Currently, unemployment exceeds 10 percent. A few years ago it was even 20 percent.

Well, I think what the case was in the past in Poland is that everyone seemed to have a job. Authentic work, in which everyone is responsible for that work and understands its purpose, is productive. Many people were employed in Poland, which was not free, but many of these workers had no purpose and were unproductive. And, at the end, it led to massive poverty. Poverty, not wealth, was socialized. If we could measure the level of satisfaction and happiness then and now in Poland, I would be surprised if it isn’t now much higher. Yet it is true that some people find themselves in a difficult situation during the transition. We will discuss this during the conference.

Economics, as we know, has its cultural consequences, just as culture has economic implications. How you assess economic and cultural changes in Poland?

I must say that from all countries historically affected by communism, Poland and the Czech Republic were the most successful in their transformation. In Poland, largely thanks to the Church, the local culture remained intact. Of course, questions about the transformation continue to occur. This indeed was a dramatic shift because this country escaped one of the most horrific, depraved systems in human history. There is a cost, which we had to go through. We just have to understand that this transformation brings together a number of costs. (more…)

Blog author: rsirico
posted by on Wednesday, March 10, 2010

LifeSiteNews.com recently asked me to comment on statements made by Ettore Gotti Tedeschi, president of the Vatican bank, about the economic effects of demographic decline in Western industrialized countries. Tedeschi told the Zenit news service that the “true cause” of the financial crisis is the low birth rate in these countries.

“Instead of stimulating families and society to again believe in the future and have children […] we have stopped having children and have created a situation, a negative economic context decrease,” Gotti Tedeschi observed. “And decrease means greater austerity.”

“With the decline in births,” he explained, “there are fewer young people that productively enter the working world. And there are many more elderly people that leave the system of production and become a cost for the collective.

“In practice the fixed costs of this economic and social structure increase. How dramatically they increase depends on how evidently unbalanced the structure of the population is and how much wealth it has. The fixed costs however increase: The costs of health increase and the social costs increase.”

This is from reporter Peter J. Smith’s article on LifeSiteNews.com:

Sirico explained that the Vatican economist’s view opposes that of population control groups, who subscribe to a different vision of economic activity: what he called a Marxist or “redistributivist” paradigm: “If there is a pie and there are more people added to the pie then there is more poverty.” But the reality, Sirico says is that “the pie is dynamic.”

“Mr. Tedeschi is saying is that: no, the human person is himself creative. Human beings are not mouths that consume, but minds that produce,” he said. Sirico added that John Paul II hit on this very point in his social encyclical Centesimus Annus, when he wrote that “Man is man’s greatest resource.”

Because human beings are also creative producers, the excess of what they produce becomes the basis for trade in the economy, and the creation of wealth, said Sirico. Contrary to population controllers obsessed with overpopulation, he noted, it is incredibly population dense cities like Tokyo and Hong Kong that are incredibly rich, while sparsely populated areas of the globe such as Angola are comparatively very poor.

Read “President of the Vatican Bank: Zero Population Growth Responsible for World-wide Recession” on LifeSiteNews.com

Blog author: jballor
posted by on Monday, August 17, 2009

I don’t much like the term Calvinism. I think it is historically unhelpful, and in general prefer to use something like Reformed theology or speak about the Reformed confessions, depending on the particular context.

And I don’t much like the term capitalism, preferring instead to discuss the market economy, or perhaps, in light of the results below, free enterprise.

But while popular and intellectual usage certainly prefers the use of the former term (even if it often is caricatured or has negative connotations), it doesn’t look like the public responds too well to the latter. The U.S. Chamber of Commerce has launched a multi-year publicity campaign, but won’t be using terms like capitalism or protectionism.

BusinessWeek reports (HT: First Thoughts via The Corner) that the Chamber did some study of how particular terms are received by the public, and the results of the focus groups showed that, as Chamber spokeswoman Tita Freeman puts it, “‘Capitalism’ was universally problematic,” and was often associated with greed and oppression.

It’s true of course that particular words and terms shouldn’t simply be ceded because of potentially negative public regard. It may be that capitalism isn’t an irredeemable term (although many would contend it is an irredeemable system!).

One of Sam Gregg‘s favorite paragraphs from the encyclical Centesimus Annus discusses this terminological issue. Paragraph 42 reads, in part,

Returning now to the initial question: can it perhaps be said that, after the failure of Communism, capitalism is the victorious social system, and that capitalism should be the goal of the countries now making efforts to rebuild their economy and society? Is this the model which ought to be proposed to the countries of the Third World which are searching for the path to true economic and civil progress?

The answer is obviously complex. If by “capitalism” is meant an economic system which recognizes the fundamental and positive role of business, the market, private property and the resulting responsibility for the means of production, as well as free human creativity in the economic sector, then the answer is certainly in the affirmative, even though it would perhaps be more appropriate to speak of a “business economy”, “market economy” or simply “free economy”. But if by “capitalism” is meant a system in which freedom in the economic sector is not circumscribed within a strong juridical framework which places it at the service of human freedom in its totality, and which sees it as a particular aspect of that freedom, the core of which is ethical and religious, then the reply is certainly negative.

Public relations campaigns aren’t typically the place where nuanced terminological arguments can be made. And so there’s some strong rhetorical support for the Chamber’s decision to talk about free enterprise rather than capitalism, but this may also reflect some deeper wisdom about the usefulness of particular terms.

Blog author: kschmiesing
posted by on Tuesday, February 3, 2009

In response to the question, “What is wrong with socialism?”

I can hardly do better than Pope John Paul II, who wrote in Centesimus Annus, “the fundamental error of socialism is anthropological in nature,” because socialism maintains, “that the good of the individual can be realized without reference to his free choice.”

The socialist experiment is attractive because its model is the family, a situation in which each gives according to his ability and receives according to his need—and it works. Unfortunately, the dynamics of family life cannot be replicated at the level of society.

The contention that socialism is unsustainable because of its inherent misapprehension of human nature is supported by the historical record. To my recollection, socialism has only been successful to any significant degree and for any significant amount of time in one institution other than the family: consecrated religious life (e.g., monasteries). Needless to say, there are some rather peculiar dynamics involved there as well, which cannot be replicated across a society.

This lack of success is not for lack of trying. We’re all familiar with the grand national attempts in, for example, the Soviet Union. But socialism has failed on smaller scales as well: in the communes of Brook Farm, Massachusetts; Oneida, New York; and New Harmony, Indiana, to name just a few American instances.

Can a socialist experiment ever succeed? History casts doubt.

Blog author: jcouretas
posted by on Monday, October 27, 2008

The famous Austrian economist, Joseph Schumpeter, despaired for the future of the free market system. The reason for this despair was that the excess wealth of the system would create educated folks who would turn on the very system that created them. Their education would make them into anti-capitalist ideologues, who would then kill the goose that laid the golden egg. He did not think that those who participated in the creation of such enormous wealth would be in any position to fight back, and this for two reasons: firstly, business people do not tend to be men of letters, so they are unable to mount arguments defending the system; secondly, the job of the business executive is the survival of the company, and thus, he will concentrate on those things required to weather the storm, not be controversial.

The man who is probably the most famous Austrian economist, Ludwig von Mises, despaired for the future of the free market system due to envy. Various sectors of society, academic, non-productive, uneducated, etc., would envy the wealth of the producers in society, and end up by finding means to take away that wealth and give it to the lesser productive people, despite the fact that they did not earn it, and therefore, are not entitled to it.

Our present political situation has a combination of both of these views. Both presidential candidates are in favor of redistribution of wealth, albeit one is more open about it. And very few business people are saying “no!” to any of it with a few exceptions, such as the president of BB&T Bank, who wrote an open letter to Congress asking why his totally solvent bank should be punished for the stupidity of the others.

But there is another culprit in this maelstrom. This culprit is the business person. Why? With tongue-in-cheek apologies to neo-classical (mathematical) economic theory, the purpose of a company is not to make a profit. As John Paul II said in Centesimus Annus, a profit is a sign of the health of a company, and therefore is good and necessary. But anyone who has taken a management course knows that the purpose of the company, aside from producing what the customers want, is to increase the wealth of the stockholders. This is different than making a profit, although profit is an integral part of it. Wealth is different than profit. Profit is a short run measurement of the short run health of the company. Wealth, by its very nature is long run. Profit appears on the financial statements of a company in mere money terms, and the accountants who produce those statements do not even take inflation into account. So a company could have an increase in profit, but not an increase in items sold, merely because they had to raise prices to accommodate the fall in the value of the dollar. But executives today are a slave to the profit line in the financial statements. They have a need to impress their boards and stockholders now by sacrificing the long term growth of the enterprise. (more…)

Blog author: kosten.joseph
posted by on Thursday, April 3, 2008


Yesterday I enjoyed a stimulating presentation of Harvard Law Professor and current U.S. Ambassador to the Holy See Mary Ann Glendon’s new Italian-language collection of essays, Tradizioni in Subbuglio (Traditions in Turmoil). Glendon has previously spoken at Acton’s closing Centesimus Annus conference at the Pontifical Lateran University and her address has been published in the latest issue of the Journal of Markets and Morality.

Situated near the Pantheon at the Istituto Luigi Sturzo, the event was attended by professors, lawyers, journalists and Vatican officials. Kishore Jayabalan, director of Istituto Acton, and I attended the book release which turned into a mini-conference on human dignity and human rights.

Prof. Valerio Onida, an Italian judge, commented that Glendon’s writings “represent a positive outlook that is diverse and encompasses many aspects of humanity. Human dignity, as represented in this work,” Onida continues, “is urgent for the whole world. The problems that affect some aspects of humanity affect the whole global human community.” Veering away from the direct commentary on the book, Onida expressed his view that the real problem “is that there are so many people who do not enjoy basic human rights.” In closing, Prof. Onida expressed thanks for the discourse of Mary Ann Glendon because “it explores these issues and clarifies the limitations of legislation.”

Following Onida, Bishop Marcelo Sánchez Sorondo, Chancellor of the Pontifical Academy of Social Sciences (where Glendon served as president from 1994 until her appointment as ambassador), gave an excellent discourse covering Traditions in Turmoil as well as other socio-economic issues. He cited Tocqueville at several points, saying, “the manners of the people are more important than the laws. This was one of the basic differences Tocqueville saw between France and the United States.” Sanchez accordingly addressed the need for a moral culture in the fields of economics and politics. Complementing Glendon’s research and understanding of the human person, he declared that “Many types of institutions have an agenda, both in Europe and the United States. An understanding of fundamental human development is crucial for understanding the development of society. Indifference to values creates many problems we face in today’s society.”

Closing the presentation of her book, Glendon made a few brief comments. She reminded those present that “Traditions, if they are alive and healthy, are systems in movement. As Alasdair Macntyre has put it, a living tradition is constituted by an ongoing argument about the goods that give it point and purpose. As for turmoil, this troubling state is not necessarily bad for a living tradition. In fact, a period of turmoil—an encounter with new and disturbing elements—can be the springboard for a great period of creativity, as well as a time of risk.”

Glendon’s book contains several fascinating chapters, including ones on the cultural supports of the American democratic experiment, Rousseau and the revolt against reason, the illusions of absolute rights, and the 1995 UN Beijing Women’s Conference, where she served as the head of the Holy See delegation.

While it appears that Glendon’s work is not very well-known in Italy, that should change with the publication of this book and, of course, her term as ambassador.

Blog author: blevitske
posted by on Monday, June 18, 2007

At last year’s Acton University, a few Austrian attendees made an interesting youtube video celebrating their rediscovery of the huge and obvious contributions Austria has made to free-market economics. But what about the countries that don’t have an entire school of economic thought named after them? My conversations with international participants at this year’s conference underscored two themes over and over again. First, that even the unlikeliest countries have some philosophical heritage undergirding capitalist thought. Second, that AU attracts the kind of people who want to recapture — not necessarily import — foundational principles to apply them within their own cultural context.

From Poland, a place where communism was much more than a nebulous ideology not so long ago, Jakob Baltroszewicz learned at AU how to frame capitalism in a more positive light for those in his country who are still “infected” with traces of the old regime’s tendencies. Despite Pope John Paul’s profound contributions to the capitalist legacy, “People still think in Poland that being a good Catholic and being a good capitalist are incompatible,” said Baltroszewicz. “We have a word for it — homo sovieticus. It means someone who is still sick with the Soviet way of thinking about the market and his role in it.” Baltroszewicz is currently studying Michael Novak’s moral theology at the Pontifical Academy in Krakow. He plans to stay connected to Acton as he works to revive Poland’s interest in the principles of its own free-market philosophers, especially as expressed in John Paul’s Centesimus Annus. (more…)

Blog author: jspalink
posted by on Wednesday, November 8, 2006

How can developing countries best compete in a global economy? Humberto Belli, president of Ave Maria College of the Americas in Nicaragua, points to the power of education and human resources. In many cases, poorer countries have a long way to go. “This imbalance in the development of human resources, if not corrected, will negatively impact many countries, impeding them from enjoying the benefits of globalization,” Belli writes.

Read the commentary here.

Dr. Mart Laar, former prime minister of Estonia, discusses the relevance for the papal encyclical Centesimus Annus for Europe today. “The message of Centesimus Annus is not a message of left or right. It is a universal message of hope. We can see these same ideas in most groups working on the future of Europe. The only problem is in finding political leaders ready to implement them in reality,” he writes.

Read Dr. Mart Laar’s full commentary here.