<\/span><\/p>\n <\/p>\n <\/p>\n Inflation is an<\/strong> insidious problem<\/strong>! It harms, in a perverse reverse order, those least able to deal with it: from the poorest up. By eroding purchasing power, families at the bottom quintiles of income distribution have the least resources to deal with inflation\u2019s resulting higher prices.<\/span><\/p>\n The Catholic social teaching response to inflation.<\/p>\n<\/div>\n During COVID-19 many businesses closed, and interest rates went to, essentially, 0%. Then came stimulus checks, rent waivers, debt forgiveness, and huge infrastructure spending.<\/span><\/p>\n By 2023, inflation peaked at over 9%, prompting the Federal Reserve to raise interest rates sharply\u2014from near zero to over 5%\u2014the fastest increase in decades. While this brought inflation down to around 3% by 2024, it made borrowing more expensive for families and businesses.<\/span><\/p>\n Throughout 2024-2026, the government maintained high spending levels even as the pandemic emergency ended, keeping upward pressure on prices. The combination of lingering supply chain issues, elevated government spending, and high interest rates continued to squeeze working families who saw their purchasing power eroded despite wage increases that couldn't keep pace.<\/span><\/p>\n The \u201cdefenseless and the poor have a claim to special consideration\u201d because they have fewer \u201cresources of their own to fall back on\u201d. (Pope Leo XIII, as quoted in Centesimus Annus, 10)<\/a>\u00a0 <\/span><\/p>\n \u201c[I]t is for this reason that wage-earners\u2026should be specially cared for and protected by the government.\u201d (Pope Leo XIII, 37)<\/a> <\/span><\/p>\n In fact, \u201cconsiderations of justice and equity can at times demand that those in power pay more attention to the weaker members of society<\/strong>, since these are at a disadvantage when it comes to defending their own rights and asserting their legitimate interests.\u201d (Pope St. John XXIII, 56)<\/a><\/span><\/p>\n This principle demands the government focus on inflation as it harms the least among us most.<\/span><\/p>\n Read more about the Preferential Option for the Poor<\/a><\/span><\/p>\n The State must not lose sight of the long-term effects of its economic policies. It must create\u00a0\u201cfavorable conditions\u2026which will lead to abundant opportunities for employment and sources of wealth\". (Pope St. John Paul II, 15)<\/a><\/span><\/p>\n And the Church insists public authorities must \u201carbitrate between various particular interests\u201d to attain [the common good].\" (Catechism of the Catholic Church, 1908)<\/em><\/a> which \"is concerned with the interests of all\" (Pope Leo XIII, 51)<\/a> and \"every single citizen has the right to share in it.\" (Pope St. John XXIII, 56)<\/a> <\/span><\/p>\n Also, the common good applies to future generations! (Pope Francis, 159)<\/a><\/span><\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> A New Methodology for a New Economy<\/a><\/p>\n Catholic Social Teaching, Democracy, and Free Markets<\/a><\/p>\n What is Capitalism?<\/a><\/p>\n Capitalism vs. Socialism<\/a><\/p>\n Was Jesus a Capitalist?<\/a><\/p>\n What is a \u201cJust\u201d Distribution of Wealth?<\/a><\/p>\n Gratuitousness: Catholic Social Teaching\u2019s Solution for Capitalism<\/a><\/p>\n The Role of Profit in Business<\/a><\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div> Good, Socially Responsible Business<\/a><\/p>\n Catholic Social Teaching and Economics by Domingo Bickel<\/a><\/p>\n The Gig Economy and Rerum Novarum<\/a><\/p>\n Tariffs and the Common Good<\/a><\/p>\n The Problems of Globalization<\/a><\/p>\n Pope Francis \u2013 An Economic Reformer and Provocateur<\/a><\/p>\n Mark Carney, Pope Francis, and the Global Economy<\/a><\/p>\n The \u2018Health of Nations\u2019 in Light of CST and Pope Francis<\/a><\/p><\/div>\n\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div> Catholic social teaching is built on three foundational principles -\u00a0<\/strong>Human Dignity<\/strong>,\u00a0Solidarity\u00a0<\/strong>and\u00a0Subsidiarity.\u00a0<\/strong>Human Dignity, embodied in a correct understanding of the human person, is the greatest. The others flow from it. Good governments and good economic systems find ways of fostering the three principles.<\/p><\/div>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t This means a correct understanding of the human person and of each person\u2019s unique value. All Catholic social teaching flows from this: the inherent dignity of every person that comes from being made in God\u2019s image.\u00a0<\/p><\/div>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t Solidarity is not \u201ca feeling of vague compassion or shallow distress at the misfortunes of others. It is a firm and persevering determination to commit oneself to the common good\u201d. (Pope St. John Paul II, 38)<\/a> Love of God and love of neighbor are, in fact, linked and form one, single commandment.<\/p><\/div>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\tInflation and Catholic Social Teaching<\/span><\/h1>\n
by CAPP-USA<\/span><\/span><\/h5>\n
![\"Inflation](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2023\/03\/A-black-man-at-the-store-is-shocked-by-his-grocery-receipt.jpg\")
<\/p>\nWhat is Inflation?<\/span><\/h2>\n
Inflation is the rate of rising prices for goods and services over a given period. It is typically expressed as an increase in the cost of living<\/strong>.<\/span><\/span><\/p>\n
Again, while inflation hurts us all, it is especially hard for the poor<\/strong> whose incomes fail to keep up with rising prices.<\/span><\/span><\/p>\nWhat Causes Inflation?<\/span><\/h2>\n
I<\/span>nflation has three possible causes:<\/span><\/span><\/p>\n\n
\n
The Root Causes of Current Inflation (2020 -2026)<\/span><\/h2>\n
Our current inflation problem is a result of Government actions<\/strong> where government has simultaneously expanded both fiscal and monetary policy. <\/span><\/span><\/p>\nWhat Does Catholic Social Teaching Have to Say?<\/span><\/h2>\n
A key aspect of CST\u2019s understanding of society that applies to the current inflation problem is:<\/span><\/p>\nTHE PREFERENTIAL OPTION FOR THE POOR<\/strong><\/h3>\n
We pointed out how inflation hits hardest<\/strong> on those in the lower income<\/strong> quintiles yet \u201cthose oppressed by poverty are the object of a preferential love<\/em> on the part of the Church\u201d. (Catechism of the Catholic Church, 2448)<\/em><\/a><\/span><\/span><\/p>\nCatholic Social Teaching and Current Inflation<\/span><\/h2>\n
So, what must the government \u201cdo\u201d? It must<\/strong> \u201censure a stable currency<\/strong>\u201d! (Centesimus Annus, 48)<\/a><\/span><\/span><\/p>\n![\"Three](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Three-Principles.png\")
<\/div>\n\t\t\t\t\t\tThree Key Principles<\/a><\/h2>
![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Human-Dignity.png\")
<\/div>\n\t\t\t\t\t\tHuman Dignity<\/a><\/h2>
![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Solidarity.png\")
<\/div>\n\t\t\t\t\t\tSolidarity<\/a><\/h2>
![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Subsidiarity.png\")
<\/div>\n\t\t\t\t\t\t