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Capitalism vs. Socialism<\/span><\/h1>\nby CAPP-USA<\/span><\/h5>\n <\/p>\n
Let's define socialism and capitalism before we compare them.<\/span><\/p>\nWhat is Socialism?<\/span><\/strong><\/span><\/span><\/h2>\n
Classic socialism, popularized by Karl Marx in the 19th century, is the transition phase between capitalism and communism wherein the state owns and regulates the means of production<\/strong>. People then share equally in the outputs of the system.<\/span><\/span><\/p>\nThe goal is to make things equitable.<\/span><\/p>\n\n![\"Capitalism](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2024\/04\/A-protester-at-a-rally-holds-an-anti-capitalism-sign.jpg\")
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Capitalism vs. socialism. What does Catholic social teaching say?<\/p>\n<\/div>\n
Let's state up front \u2013<\/span> Catholic social teaching rejects socialism<\/strong>. We'll explain why.<\/p>\nWhat is Capitalism?<\/span><\/strong><\/span><\/span><\/h2>\n
Capitalism is where private actors own and control property<\/strong> while demand and supply set prices in markets.<\/span><\/span><\/p>\nAn essential feature of capitalism is the motive to make a profit.<\/span><\/span><\/p>\nSome Problems with Capitalism<\/span><\/strong><\/span><\/span><\/h2>\n
Catholic social teaching does not reject capitalism. However, a key issue arises \"[o]nce capital becomes an idol<\/strong>\u2026once greed for money presides over the entire socioeconomic system\". This \"ruins society, it condemns and enslaves men and women, it destroys human fraternity, it sets people against one another\". (Pope Francis, 1)<\/a><\/span><\/span><\/p>\nIt is the \u201cconviction that the economy must be autonomous, that it must be shielded from \u2018influences\u2019 of a moral character, [which] has led man to abuse the economic process\u00a0in a thoroughly destructive way.\u201d\u00a0(Pope Benedict XVI, 34)<\/a><\/span><\/p>\n\u201cInsofar as it [Unbridled Capitalism] denies an autonomous existence and value to morality, law, culture and religion, it agrees with Marxism, in the sense that it totally reduces man to the sphere of economics and the satisfaction of material needs.\u201d\u00a0(Pope St. John Paul II, 19)<\/a><\/span><\/p>\nSo, the Church holds that\u00a0at a fundamental level, there is little difference between socialism and unbridled capitalism<\/strong>!<\/span><\/p>\nHowever, \u201cIt is evident that this system [free markets] is not to be condemned in itself. And surely it is not of its own nature vicious.\u201d (Pope Pius XI, 101)<\/a><\/span><\/p>\nThe Problems with Socialism<\/span><\/strong><\/span><\/span><\/h2>\n
Socialism, however, is \u201cemphatically unjust\u201d<\/strong>\u00a0for it \u201cwould rob the lawful possessor, distort the functions of the State, and create utter confusion in the community.\u201d\u00a0(Pope Leo XIII, 4)<\/a> <\/span><\/span><\/p>\n\u201cThis right, [to private property] which is fundamental for the autonomy and development of the person, has always been defended by the Church up to our own day\u201d.\u00a0(Pope St. John Paul II, 30)<\/a> <\/span><\/p>\nSocialism, even moderate forms like democratic socialism, essentially reduces mankind into<\/strong> economic elements<\/strong>. <\/span>The Catholic Church rejects that human beings can be so understood.<\/span><\/p>\n\"Socialism\u2026wholly ignoring and indifferent to [the] sublime end of both man and society, affirms\u00a0that human association has been instituted for the sake of\u00a0material advantage alone.\" (Pope Pius XI, 118)<\/a><\/span><\/p>\nSocialism will never work because \u201cIt is not possible to understand man on the basis of economics alone\u201d. (Pope St. John Paul II, 24)<\/a><\/span><\/p>\nThe Free Market Economy<\/span><\/strong><\/span><\/span><\/h2>\n
So, what economic system does the Church support?\u00a0<\/span><\/span><\/p>\nCatholic social teaching recognizes that free enterprise, rightly understood and implemented, is currently the best available vehicle for systemically caring for the physical needs of the poor and that a true global economy is the key way to create lasting development and thereby, peace.<\/span><\/p>\nThe \u201cfree\u201d market advanced by Catholic social teaching is\u00a0free \u2014 within limits<\/strong>. A foundational guide is that \u201cmoney must serve, not rule\u201d.<\/strong>\u00a0(Pope Francis)<\/a><\/span><\/p>\nPope St. John Paul II said of the free market that it \"would appear that [it] is the most efficient way for utilizing resources and effectively responding to needs.\" (Centesimus Annus, 32, 34)<\/a> <\/span><\/p>\nHowever, free markets must be \u201ccircumscribed in a strong juridical framework<\/strong>, which places it at the service of human freedom in its totality\u201d.\u00a0(Pope St. John Paul II, 42)<\/a><\/span><\/p>\nThe Bottom Line<\/span><\/strong><\/span><\/span><\/h2>\n
The free market economy is an \u201cimportant source of wealth and should be viewed carefully and favorably.\u201d\u00a0(Pope St. John Paul II, 32)<\/em><\/a> <\/span><\/span><\/p>\nClick the links below to learn how Catholic social teaching guides economics.<\/span><\/p>\nMarxism vs. CST: Where They Overlap<\/a><\/span><\/p>\nWhat is Socialism?<\/a><\/span><\/p>\nWhat is Democratic Socialism?<\/a><\/span><\/p>\nWas Jesus a Socialist?<\/a><\/span><\/p>\nSocialist Countries and Welfare States<\/a><\/span><\/p>\nCatholic Social Teaching: Antidote to Extremism<\/a><\/span><\/p>\nKarl Marx and the Catholic Church<\/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>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\tMore About Socialism<\/a>\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>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\tThe Free Market<\/a>\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>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\tBack to Articles<\/a>\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>\n\t\t\t\t\n\t\t\t\t\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\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\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>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t![\"Three](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Three-Principles.png\")
<\/div>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tThree Key Principles<\/a><\/h2>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\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Human-Dignity.png\")
<\/div>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tHuman Dignity<\/a><\/h2>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
\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Solidarity.png\")
<\/div>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\tSolidarity<\/a><\/h2>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\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t![\"\"](\"https:\/\/capp-usa.org\/wp-content\/uploads\/2021\/02\/Subsidiarity.png\")
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Let's define socialism and capitalism before we compare them.<\/span><\/p>\n The goal is to make things equitable.<\/span><\/p>\n Capitalism vs. socialism. What does Catholic social teaching say?<\/p>\n<\/div>\n Let's state up front \u2013<\/span> Catholic social teaching rejects socialism<\/strong>. We'll explain why.<\/p>\n An essential feature of capitalism is the motive to make a profit.<\/span><\/span><\/p>\n It is the \u201cconviction that the economy must be autonomous, that it must be shielded from \u2018influences\u2019 of a moral character, [which] has led man to abuse the economic process\u00a0in a thoroughly destructive way.\u201d\u00a0(Pope Benedict XVI, 34)<\/a><\/span><\/p>\n \u201cInsofar as it [Unbridled Capitalism] denies an autonomous existence and value to morality, law, culture and religion, it agrees with Marxism, in the sense that it totally reduces man to the sphere of economics and the satisfaction of material needs.\u201d\u00a0(Pope St. John Paul II, 19)<\/a><\/span><\/p>\n So, the Church holds that\u00a0at a fundamental level, there is little difference between socialism and unbridled capitalism<\/strong>!<\/span><\/p>\n However, \u201cIt is evident that this system [free markets] is not to be condemned in itself. And surely it is not of its own nature vicious.\u201d (Pope Pius XI, 101)<\/a><\/span><\/p>\n \u201cThis right, [to private property] which is fundamental for the autonomy and development of the person, has always been defended by the Church up to our own day\u201d.\u00a0(Pope St. John Paul II, 30)<\/a> <\/span><\/p>\n Socialism, even moderate forms like democratic socialism, essentially reduces mankind into<\/strong> economic elements<\/strong>. <\/span>The Catholic Church rejects that human beings can be so understood.<\/span><\/p>\n \"Socialism\u2026wholly ignoring and indifferent to [the] sublime end of both man and society, affirms\u00a0that human association has been instituted for the sake of\u00a0material advantage alone.\" (Pope Pius XI, 118)<\/a><\/span><\/p>\n Socialism will never work because \u201cIt is not possible to understand man on the basis of economics alone\u201d. (Pope St. John Paul II, 24)<\/a><\/span><\/p>\n Catholic social teaching recognizes that free enterprise, rightly understood and implemented, is currently the best available vehicle for systemically caring for the physical needs of the poor and that a true global economy is the key way to create lasting development and thereby, peace.<\/span><\/p>\n The \u201cfree\u201d market advanced by Catholic social teaching is\u00a0free \u2014 within limits<\/strong>. A foundational guide is that \u201cmoney must serve, not rule\u201d.<\/strong>\u00a0(Pope Francis)<\/a><\/span><\/p>\n Pope St. John Paul II said of the free market that it \"would appear that [it] is the most efficient way for utilizing resources and effectively responding to needs.\" (Centesimus Annus, 32, 34)<\/a> <\/span><\/p>\n However, free markets must be \u201ccircumscribed in a strong juridical framework<\/strong>, which places it at the service of human freedom in its totality\u201d.\u00a0(Pope St. John Paul II, 42)<\/a><\/span><\/p>\n Click the links below to learn how Catholic social teaching guides economics.<\/span><\/p>\n Marxism vs. CST: Where They Overlap<\/a><\/span><\/p>\n What is Socialism?<\/a><\/span><\/p>\n What is Democratic Socialism?<\/a><\/span><\/p>\n Was Jesus a Socialist?<\/a><\/span><\/p>\n Socialist Countries and Welfare States<\/a><\/span><\/p>\n Catholic Social Teaching: Antidote to Extremism<\/a><\/span><\/p>\n Karl Marx and the Catholic Church<\/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> 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\tWhat is Socialism?<\/span><\/strong><\/span><\/span><\/h2>\n
Classic socialism, popularized by Karl Marx in the 19th century, is the transition phase between capitalism and communism wherein the state owns and regulates the means of production<\/strong>. People then share equally in the outputs of the system.<\/span><\/span><\/p>\n<\/p>\nWhat is Capitalism?<\/span><\/strong><\/span><\/span><\/h2>\n
Capitalism is where private actors own and control property<\/strong> while demand and supply set prices in markets.<\/span><\/span><\/p>\nSome Problems with Capitalism<\/span><\/strong><\/span><\/span><\/h2>\n
Catholic social teaching does not reject capitalism. However, a key issue arises \"[o]nce capital becomes an idol<\/strong>\u2026once greed for money presides over the entire socioeconomic system\". This \"ruins society, it condemns and enslaves men and women, it destroys human fraternity, it sets people against one another\". (Pope Francis, 1)<\/a><\/span><\/span><\/p>\nThe Problems with Socialism<\/span><\/strong><\/span><\/span><\/h2>\n
Socialism, however, is \u201cemphatically unjust\u201d<\/strong>\u00a0for it \u201cwould rob the lawful possessor, distort the functions of the State, and create utter confusion in the community.\u201d\u00a0(Pope Leo XIII, 4)<\/a> <\/span><\/span><\/p>\nThe Free Market Economy<\/span><\/strong><\/span><\/span><\/h2>\n
So, what economic system does the Church support?\u00a0<\/span><\/span><\/p>\nThe Bottom Line<\/span><\/strong><\/span><\/span><\/h2>\n
The free market economy is an \u201cimportant source of wealth and should be viewed carefully and favorably.\u201d\u00a0(Pope St. John Paul II, 32)<\/em><\/a> <\/span><\/span><\/p>\n<\/div>\n\t\t\t\t\t\tThree Key Principles<\/a><\/h2>
<\/div>\n\t\t\t\t\t\tHuman Dignity<\/a><\/h2>
<\/div>\n\t\t\t\t\t\tSolidarity<\/a><\/h2>
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