Posts tagged with: economics

Rev. Robert A. Sirico had two recent appearances on Relevant Radio’s Drew Mariani Show to discuss the new social encyclical from Pope Benedict XVI.  His first appearance was prior to the release of the encyclical and he explained how Christians who support the free economy believe that it should not be based on greed.  To have a just society, we must have just people.  When money becomes the end of a person, and a person’s whole life is directed to that end, Rev. Sirico points out that then a person is destroyed.  Finally, he closes with an important message: If we do no understand love then we do not understand ourselves because we are the result of God’s love.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

In his second appearance, Rev. Sirico explains why Pope Benedict XVI does not have any intention to declare himself in the middle of a political debate with the release of Caritas in Veritate.  The pope does not recommend a political model.  Instead, Caritas in Veritate is meant to lay down the principles on how to govern a society.  The encyclical accepts the reality and benefits of a market economy but states a market economy does not contain the moral guide that a society needs.  Rev. Sirico also asserts that the ambiguities that are in Caritas in Veritate are intentional.  Certain principles need an application which requires the virtue of prudence.  The pope allows ambiguity because this will foster a debate and from the debate the Church can gain a greater insight from what it is trying to get to and then re-articulate its message.  Rev. Sirico reminds us that it is important to understand that the Church’s social teaching is not a dogmatic pronouncement that is not debatable.  Instead, it is a dynamic process.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Zenit published my article on the pope’s new social encyclical:

Encyclical Offers Opportunity to “Think With the Church”

By Jennifer Roback Morse

SAN MARCOS, California, JULY 17, 2009 (Zenit.org).- Benedict XVI’s “Caritas in Veritate” is his contribution to the course of Catholic social teaching.

Many commentators seem to read this document as if it were a think-tank white paper, and ask whether the Pope endorses their particular policy preferences. I must say that I surprised myself by not reflexively reading it in this way. After all, I spent many years teaching free-market economics.

I distinctly remember reading “Centesimus Annus” for the first time, and mentally checking to see if I agreed with it.

But this is not the correct way to read papal documents. The papacy’s prophetic role is to interpret the past, and provide guidance for the future, while avoiding the excesses of its own time.

In “Caritas in Veritate,” Benedict XVI argues for the centrality of moral considerations in both economics and politics. Without charity and truth, we cannot create a truly decent society, no matter how sophisticated our technology or how thorough-going our democracy.

Benedict XVI stresses the centrality of the social, cultural sphere for several reasons.

First, neither the economic nor the political spheres can function entirely on their own. Both the economic and the political sectors need to be peopled with individuals who have well-formed consciences. Therefore, economics and politics rely upon the Church, the family, and other social structures that shape the conscience.

Second, the cultural sphere needs its own defense. Both the economic and the political sectors have plenty of ideological defenders. The libertarian right seems to believe that the market can manage all of society. The socialist left seems to think that the government can solve every problem and wipe away every tear.

Extremists on both sides fail to respect culture’s distinctive role. (more…)

Kishore Jayabalan, director of Istituto Acton (the Acton Institute’s Rome office), was interviewed by Vatican Radio concerning the authentic human development concerns of the whole person, which is a topic discussed in Caritas in Veritate. Jayabalan discussed how development schemes throughout the world should look at the aspirations of each individual person.  Furthermore, in Caritas in Veritate there is a mention of a “breathing space” used a few times in the encyclical.  This breathing space aspect means developing a vibrant and diverse society and not allowing central planning to decide every aspect of a person’s life; it is also important to place the individual at the center of the development.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Samuel Gregg, Director of Research at the Acton Institute, was interviewed on Ave Maria Radio.  Gregg discusses Caritas in Veritate while addressing many issues that have risen from the encyclical.  Gregg explains that the encyclical is not a conservative or liberal document, but rather it is simply Catholic.  People should not read it through the eyes of secular political categories; importantly, when reading Caritas in Veritate, we must not think in secular terms on issues such as the free market and redistribution of wealth.  Gregg also makes a point to mention Caritas in Veritate does not say markets are evil.  Markets are good, but we must make sure they are grounded in morals — this is what makes a market good and successful.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Commenting on how Pope Benedict XVI addressed the economic crisis and development challenges in “Caritas in Veritate” is Lord Brian Griffiths of Fforestfach, a member of the British House of Lords and Vice-Chairman of Goldman Sachs International. He has served in an advisory capacity to the Acton Institute and delivered published papers on globalization and Third World development at the Institute’s international conferences.

Click here for the original article appearing in The Times.

July 13, 2009
The Times

Pope Benedict is the man on the money

The best analysis yet of the global economic crisis tells how people, not just rules, must change.

By Brian Griffiths

When Cardinal Ratzinger was elected Pope, his strengths and weaknesses seemed clear. Here was an eminent theologian, philosopher and guardian of Christian truth, but a man unlikely to make the Church’s message relevant to the world today. How simplistic this now looks in the light of his third encyclical, in which Pope Benedict XVI confronts head-on the financial crisis that has rocked the world.

The language may be dense, but the message is sufficiently rewarding. The encyclical analyses modern capitalism from an ethical and spiritual perspective as well as a technical one. As a result it makes the Government’s White Paper on financial reforms published two days later look embarrassingly one-dimensional and colourless.

It is highly critical of today’s global economy but always positive. Its major concern is how to promote human development in the context of justice and the common good. Despite heavy competition from some of the world’s finest minds, it is without doubt the most articulate, comprehensive and thoughtful response to the financial crisis that has yet appeared. It should strike a chord with all who wish to see modern capitalism serving broader human ends.

The Pope makes it clear that the encyclical takes its inspiration from Populorum Progressio, the encyclical published by Paul VI in 1967, at the height of anti-capitalism in Europe. It attacked liberal capitalism, was ambivalent about economic growth, recommended expropriation of landed estates if poorly used and enthused about economic planning. (more…)

In his commentary, “The Pope, the Rabbi, and the Moral Economy,” Samuel Gregg compares recent statements by Britain’s Chief Rabbi, Lord Jonathan Sacks, and Pope Benedict XVI, on the market economy and other social questions. “Benedict and Sacks rigorously deny that markets are intrinsically flawed,” Gregg writes. “Each also maintains that there are fundamental limits to state power. They do, however, insist that morality’s ultimate sources come from neither state nor market.”

Gregg demonstrates the parallels between Pope Benedict XVI’s Caritas in Veritate and an op-ed printed in the London Times by Rabbi Sacks:

The pope and the rabbi had a similar message, which amounts to the following. Some of our contemporary economic problems reflect a deeper moral crisis within Western civilization. Until we acknowledge this, shifts in economic policy and business practice will only provide limited solutions.

Drawing upon the parallels between Pope Benedict the XVI and Rabbi Sachs, Gregg concludes that both question “those who limit morality to politically-causes and the associated refusal of many working economies…”

I recently spoke with journalist Antonio Gaspari of the the Zenit news agency about Caritas in Veritate. Here’s the interview that Zenit published:

Kishore Jayabalan: Development Involves “Breathing Space”

ROME, JULY 10, 2009 (Zenit.org).- An Acton Institute director is explaining the importance of “Caritas in Veritate” for India and China, and is pointing out the innovative ideas of Benedict XVI’s latest encyclical.

Kishore Jayabalan is the director of the Acton Institute’s Rome office. He is a former analyst for the Pontifical Council for Justice and Peace, where he dealt with environmental and disarmament issues and served as a desk officer for English-speaking countries.

In this interview with ZENIT, he spoke about Benedict XVI’s latest encyclical, which was released to the public Tuesday.

ZENIT: What is your overall opinion of the encyclical “Caritas in Veritate?”

Jayabalan: My very first reaction was that it is long and not an easy document to read quickly and summarize. But as I have been reading and re-reading it, I am starting to appreciate its vast scope and significance.

The moral and ethical basis for the market economy is very often neglected.

Even its supporters tend to make utilitarian arguments in favor of the market, while opponents tend to blame the free exchange of goods and services for all kinds of cultural phenomena which have little to do with economics itself.

When things are going well and everyone is making money, no one wants to hear about greed and materialism. But once the bubble bursts, everyone seems to become a moralist and a prophet with amazing hindsight.

This is what Benedict has referred to in other places as “cheap moralism,” one which takes no account of the technical workings of the economy but reminds us of the need to make ethics more integral to our everyday lives. So in this encyclical, the pope realizes it makes no sense to issue condemnations that a child can make. (more…)

At the time of his election in April 2005, Pope Benedict XVI was widely perceived to be a “conservative” in our modern political parlance. It should not surprise, then, that many commentators have expressed either shock or joy, depending on their own affiliations, with last Tuesday’s publication of his encyclical letter Caritas in Veritate (Charity in Truth), the first extended statement on social and economic issues of his pontificate.

Conservatives are dismayed by his calls for increased foreign aid, the redistribution of wealth, and a United Nations with “real teeth”. Liberals are wondering why the pope had to ruin such lovely sentiments by bringing up the evils of abortion, euthanasia, and birth control. Prominent voices on both sides think the pope is hopelessly naïve and unrealistic. Reading Charity in Truth for partisan purposes can yield moments of agony and ecstasy for left and right alike.

Neither side, however, seems ready to take Benedict’s theology – his own field of expertise – seriously. Part of this is a result of our habitual, liberal democratic tendency to separate Church and State and not let theological arguments influence our politics. This tendency invariably blinds us to the pope’s combination of respect for life with the demands of social justice.

Such a synthesis is not easy nor is it likely to satisfy partisans. It’s hard enough to imagine an international authority that can command universal support – not even the pope has that within his own Church. In many ways our current systems of democratic governance are more modest because they do not assume any such unanimity, theological or otherwise. But the real question is whether a society built solely on competing interests will ultimately be worth the trouble. Will it reflect Benedict’s insistent demands for human dignity? Experience keeps telling us something more is clearly needed.

Our political categories of left and right originate from the French Revolution, which infamously saw the Catholic Church as its great enemy. Which makes it all the more remarkable that the modern social teachings of the papacy may provide the soundest moral defense of liberté, égalité et fraternité in today’s world. (more…)

Andrew Abela, 2009 Novak Award recipient from the Acton Institute, offered a business perspective on Pope Benedict XVI’s new social encyclical, Caritas in Veritate, to the Catholic news service Zenit.  In the interview, Abela talked about ways the encyclical could point the way out of the global financial crisis:

ZENIT: Does the Holy Father give any concrete means for digging ourselves out of the economic crisis?

Abela: Yes. It seems to me that the Holy Father is saying that trust is essential for our economy to work, and we have lost this trust because we have viewed the market as a place for narrow exchange only, where there is no need for generosity or fraternity, but only the adherence to contract.

Unfortunately, in many cases even that adherence to contract couldn’t be counted on, and therefore trust was lost.

In order to recover from the economic crisis, in addition to the proper role of government in orienting the market to the common good, the Pope is saying that it would help if we realized that generosity and fraternity are not foreign to market relationships, and in fact they are necessary to build the trust that the market requires if it is to operate well.

The Pope refers to the Economy of Communion project as an example of this happening. This project is a group of over 700 companies worldwide who are working within the marketplace for higher goals than solely profit. It sprung out of the Focolare movement as a direct response to the previous social encyclical, “Centesimus Annus.”

Abela also addresses a heated and what is becoming a much debated question on whether Pope Benedict the XVI condemns capitalism:

ZENIT: Has the Holy Father condemned capitalism?

Abela: No. In fact the word “capitalism” does not appear even once in the encyclical, probably because the word is subject to so many different interpretations.

Instead he speaks of the market economy, which is a more open term and avoids the ambiguity of differing opinions about what capitalism really is. A market economy is based on a free market and is not harmful in itself, but it can be made so as a result of ideology.

The Pope states that it “is not the instrument that must be called to account, but individuals, their moral conscience and their personal and social responsibility” (No. 36).

The entire interview can be found on Zenit’s website.

Katherine Jean Lopez of National Review Online interviewed me about the new papal encyclical, Caritas in Veritate, shortly after its release this morning here in Rome:

LOPEZ: Obviously the topic of ethics and the economy resonates with people today. What can a Catholic take away from the new encyclical when it comes to his lost job, the stimulus, or government takeovers?

JAYABALAN: It’s hard to summarize such a long and complex document into a lesson or two, but I’ll try. First is the absolute importance of Truth to our understanding of charity, efficiency, and economics. For Catholics, this means the Church’s fundamental theological and moral teachings, which should be received as gifts rather than burdens, as difficult as they may seem to us. The Church’s theological understanding of charity and justice should make all Catholics feel responsible for each other and think and act accordingly. This is the real meaning of solidarity.

During the interview I was also asked about the importance of the encyclical to non-Catholics and what they can take away from it:

LOPEZ: What can the non-Catholic learn from the encyclical?

JAYABALAN: He doesn’t distinguish between Catholics and non-Catholics in the encyclical but calls all of us to broaden our use of reason beyond the merely technical or scientific. Benedict also recalls the limited nature of the state and its inability to provide the most important thing — love.

As Benedict argues in his previous encyclicals, as well as the current one, the state is no replacement for the family or the church: The state cannot love us  — and it would be a scary thing even if it could.

Even where the state does have some responsibilities, it may obey the principle of subsidiarity — that is, let individuals, families, churches, businesses, and local communities handle their own problems first. This is the setting for the pope’s call for fraternity and a vibrant, diverse civil society.

The entire interview can be read at The Corner.

A recent NBER working paper, “Internationalization of U.S. Doctorate Education,” takes a look at trends in doctoral degrees awarded by American institutions in the physical sciences, engineering, and economics.

From the abstract, “The representation of a large number of students born outside the United States among the ranks of doctorate recipients from U.S. universities is one of the most significant transformations in U.S. graduate education and the international market for highly-trained workers in science and engineering in the last quarter century.”

That transformation wouldn’t be possible without travel and visa allowances, as well as an educational and cultural atmosphere that welcomes immigrants. The trend also speaks to the level of prestige and respect accorded to U.S. institutions and degrees, and the portability and value of those degrees abroad.