"Economic Justice For All," National Conference of Catholic Bishops (USA), 1987

Economic Justice For All
National Conference of Catholic Bishops (USA)
November 1987

“The economy should serve people, not the other way around.”

(Excerpts; full text is available at http://www.osjspm.org/economic_justice_for_all.aspx.)

beginning

[Introduction]

Why We Write
Principal Themes of the Pastoral Letter
A Call to Conversion and Action

Chapter I: The Church and the Future of the U.S. Economy
- A. The U.S. Economy Today: Memory and Hope
- B. Urgent Problems of Today
- C. The Need for Moral Vision
Chapter II: The Christian Vision of Economic Life
- A. Biblical Perspectives
- B. Ethical Norms for Economic Life
- C. Working for Greater Justice: Persons and Institutions
- D. Christian Hope and the Courage to Act
Chapter III: Selected Economic Policy Issues

Chapter IV: A New American Experiment:Partnership for the Public Good

notes

Brothers and Sisters in Christ:
1. We are believers called to follow Our Lord Jesus Christ and proclaim his Gospel in the midst of a complex and powerful economy. This reality poses both opportunities and responsibilities for Catholics in the United States. Our faith calls us to measure this economy, not by what it produces but also by how it touches human life and whether it protects or undermines the dignity of the human person. Economic decisions have human consequences and moral content; they help or hurt people, strengthen or weaken family life, advance or diminish the quality of justice in our land.

2. This is why we have written Economic Justice for All: A Pastoral Letter on Catholic Social Teaching and the U.S. Economy. This letter is a personal invitation to Catholics to use the resources of our faith, the strength of our economy, and the opportunities of our democracy to shape a society that better protects the dignity and basic rights of our sisters and brothers, both in this land and around the world....

Principal Themes of the Pastoral Letter

12. The pastoral letter is not a blueprint for the American economy. It does not embrace any particular theory of how the economy works, nor does it attempt to resolve disputes between different schools of economic thought. Instead, our letter turns to Scripture and to the social teaching of the Church. There, we discover what our economic life must serve, what standards it must meet. Let us examine some of these basic moral principles.

13. Every economic decision and institution must be judged in light of whether it protects or undermines the dignity of the human person. The pastoral letter begins with the human person. We believe the person is sacred -- the clearest reflection of God among us. Human dignity comes from God, not from nationality, race, sex, economic status, or any human accomplishment. We judge any economic system by what it does for and to people and by how it permits all to participate in it. The economy should serve people, not the other way around.

14. Human dignity can be realized and protected only in community. In our teaching, the human person is not only sacred but social. How we organize our society -- in economics and politics, in law and policy -- directly affects human dignity and the capacity of individuals to grow in community. The obligation to "love our neighbor" has an individual dimension, but it also requires a broader social commitment to the common good. We have many partial ways to measure and debate the health of our economy: Gross National Product, per capita income, stock market prices, and so forth. The Christian vision of economic life looks beyond them all and asks, Does economic life enhance or threaten our life together as a community?

15. All people have a right to participate in the economic life of society. Basic justice demands that people be assured a minimum level of participation in the economy. It is wrong for a person or a group to be excluded unfairly or to be unable to participate or contribute to the economy. For example, people who are both able and willing, but cannot get a job are deprived of the participation that is so vital to human development. For, it is through employment that most individuals and families meet their material needs, exercise their talents, and have an opportunity to contribute to the larger community. Such participation has a special significance in our tradition because we believe that it is a means by which we join in carrying forward God's creative activity.

16. All members of society have a special obligation to the poor and vulnerable. From the Scriptures and church teaching, we learn that the justice of a society is tested by the treatment of the poor. The justice that was the sign of God's covenant with Israel was measured by how the poor and unprotected -- the widow, the orphan, and the stranger -- were treated. The kingdom that Jesus proclaimed in his word and ministry excludes no one. Throughout Israel's history and in early Christianity, the poor are agents of God's transforming power. "The Spirit of the Lord is upon me, therefore he has anointed me. He has sent me to bring glad tidings to the poor" (Lk. 4:18). This was Jesus' first public utterance. Jesus takes the side of those most in need. In the Last Judgment, so dramatically described in St. Matthew's Gospel, we are told that we will be judged according to how we respond to the hungry, the thirsty, the naked, the stranger. As followers of Christ, we are challenged to make a fundamental "option for the poor" -- to speak for the voiceless, to defend the defenseless, to assess life styles, policies, and social institutions in terms of their impact on the poor. This "option for the poor" does not mean pitting one group against another, but rather, strengthening the whole community by assisting those who are the most vulnerable. As Christians, we are called to respond to the needs of all our brothers and sisters, but those with the greatest needs require the greatest response.

17. Human rights are the minimum conditions for life in community. In Catholic teaching, human rights include not only civil and political rights but also economic rights. As Pope John XXIII declared, "all people have a right to life, food, clothing, shelter, rest, medical care, education, and employment." These means that when people are without a chance to earn a living, and must go hungry and homeless, they are being denied basic rights. Society must ensure that these rights are protected. In this way, we will ensure that the minimum conditions of economic justice are met for all our sisters and brothers.

18. Society as a whole, acting through public and private institutions, has the moral responsibility to enhance human dignity and protect human rights. In addition to the clear responsibility of private institutions, government has an essential responsibility in this area. This does not mean that government has the primary or exclusive role, but it does have a positive moral responsibility in safeguarding human rights and ensuring that the minimum conditions of human dignity are met for all. In a democracy, government is a means by which we can act together to protect what is important to us and to promote our common values.

19. These six moral principles are not the only ones presented in the pastoral letter, but they give an overview of the moral vision that we are trying to share. This vision of economic life cannot exist in a vacuum; it must be translated into concrete measures. Our pastoral letter spells out some specific applications of Catholic moral principles. We call for a new national commitment to full employment. We say it is a social and moral scandal that one of every seven Americans is poor, and we call for concerted efforts to eradicate poverty. The fulfillment of the basic needs of the poor is of the highest priority. We urge that all economic policies be evaluated in light of their impact on the life and stability of the family. We support measures to halt the loss of family farms and to resist the growing concentration in the ownership of agricultural resources. We specify ways in which the United States can do far more to relieve the plight of poor nations and assist in their development. We also reaffirm church teaching on the rights of workers, collective bargaining, private property, subsidiarity, and equal opportunity.

20. We believe that the recommendations in our letter are reasonable and balanced. In analyzing the economy, we reject ideological extremes and start from the fact that ours is a "mixed" economy, the product of a long history of reform and adjustment. We know that some of our specific recommendations are controversial. As bishops, we do not claim to make these prudential judgments with the same kind of authority that marks our declarations of principle. But, we feel obliged to teach by example how Christians can undertake concrete analysis and make specific judgments on economic issues. The Church's teachings cannot be left at the level of appealing generalities.

21. In the pastoral letter, we suggest that the time has come for a "New American Experiment" -- to implement economic rights, to broaden the sharing of economic power, and to make economic decisions more accountable to the common good. This experiment can create new structures of economic partnership and participation within firms at the regional level, for the whole nation, and across borders....

Chapter I:
The Church and the Future of the U.S. Economy

1. Every perspective on economic life that is human, moral, and Christian must be shaped by three questions: What does the economy do for people? What does it do to people? And how do people participate in it? The economy is a human reality: men and women working together to develop and care for the whole of God's creation. All this work must serve the material and spiritual well-being of people. It influences what people hope for themselves and their loved ones. It affects the way they act together in society. It influences their very faith in God¹....

B. Urgent Problems of Today

10. The preeminent role of the United States in an increasingly interdependent global economy is a central sign of our times². The United States is still the world's economic giant. Decisions made here have immediate effects in other countries; decisions made abroad have immediate consequences for steelworkers in Pittsburgh, oil company employees in Houston, and farmers in Iowa. U.S. economic growth is vitally dependent on resources from other countries and on their purchases of our goods and services. Many jobs in U.S. industry and agriculture depend on our ability to export manufactured goods and food.

11. In some industries the mobility of capital and technology makes wages the main variable in the cost of production. Overseas competitors with the same technology but with wage rates as low as one-tenth of ours put enormous pressure on U.S. firms to cut wages, relocate abroad, or close. U.S. workers and their communities should not be expected to bear these burdens alone.

12. All people on this globe share a common ecological environment that is under increasing pressure. Depletion of soil, water and other natural resources endangers the future. Pollution of air and water threatens the delicate balance of the biosphere on which future generations will depend³. The resources of the earth have been created by God for the benefit of all, and we who are alive today hold them in trust. This is a challenge to develop a new ecological ethic, that will help shape a future that is both just and sustainable.

13. In short, nations separated by geography, culture, and ideology are linked in a complex commercial, financial, technological, and environmental network. These links have two direct consequences. First, they create hope for a new form of community among peoples, one build on dignity, solidarity and justice. Second, this rising global awareness calls for greater attention to the stark inequities across countries in the standards of living and control of resources. We must not look at the welfare of U.S. citizens as the only good to be sought. Nor may we overlook the disparities of power in the relationships between this nation and the developing countries. The United States is the major supplier of food to other countries, a major source of arms sales to developing nations, and a powerful influence in multilateral institutions such as the International Monetary Fund, the World Bank, and the United Nations. What Americans see as a growing interdependence is regarded by many in the less developed countries as a pattern of domination and dependence.

14. Within this larger international setting, there are also a number of challenges to the domestic economy that call for creativity and courage. The promise of the "American dream" -- freedom for all persons to develop their God-given talents to the full -- remains unfulfilled for millions in the United States today....

C. The Need for Moral Vision

22. Sustaining a common culture and a common commitment to moral values is not easy in our world. Modern economic life is based on a division of labor into specialized jobs and professions. Since the industrial revolution, people have had to define themselves and their work ever more narrowly to find a niche in the economy. The benefits of this are evident in the satisfaction many people derive from contributing their specialized skills to society. But the costs are social fragmentation, a decline in seeing how one's work serves the whole community, and an increased emphasis on personal goals and private interests⁴. This is vividly clear in discussions of economic justice. Here it is often difficult to find a common ground among people with different backgrounds and concerns. One of our chief hopes in writing this letter is to encourage and contribute to the development of this common ground⁵.

23. Strengthening common moral vision is essential if the economy is to serve all people more fairly. Many middle-class Americans feel themselves in the grip of economic demands and cultural pressures that go far beyond the individual family's capacity to cope. Without constructive guidance in making decisions with serious moral implications, men and women who hold positions of responsibility in corporations or government find their duties exacting a heavy price. We want these reflections to help them contribute to a more just economy.

24. The quality of the national discussion about our economic future will affect the poor most of all, in this country and throughout the world. The life and dignity of millions of men, women and children hang in the balance. Decisions must be judged in light of what they do for the poor, what they do to the poor, and what they enable the poor to do for themselves. The fundamental moral criterion for all economic decisions, policies, and institutions is this: They must be at the service of all people, especially the poor....

Chapter II
The Christian Vision of Economic Life

28. The basis for all that the Church believes about the moral dimensions of economic life is its vision of the transcendent worth -- the sacredness -- of human beings. the dignity of the human person, realized in community with others, is the criterion against which all aspects of economic life must be measured⁶. All human beings, therefore, are ends to be served by the institutions that make up the economy, not means to be exploited for more narrowly defined goals. Human personhood must be respected with a reverence that is religious. When we deal with each other, we should do so with the sense of awe that arises in the presence of something holy and sacred. For that is what human beings are: we are created in the image of God (Gn 1:27). Similarly, all economic institutions must support the bonds of community and solidarity that are essential to the dignity of persons. Wherever our economic arrangements fail to conform to the demands of human dignity lived in community, they must be questioned and transformed. These convictions have a biblical basis. They are also supported by a long tradition of theological and philosophical reflection and through the reasoned analysis of human experience by contemporary men and women....

B. Ethical Norms for Economic Life

61. These biblical and theological themes shape the overall Christian perspective on economic ethics. This perspective is also subscribed to by many who do not share Christian religious convictions. Human understanding and religious belief are complementary, not contradictory. For human beings are created in God's image, and their dignity is manifest in the ability to reason and understand, in their freedom to shape their own lives and the life of their communities, and in the capacity for love and friendship. In proposing ethical norms, therefore, we appeal both to Christians and to all in our pluralist society to show that respect and reverence owed to the dignity of every person. Intelligent reflection on the social and economic realities of today is also indispensable in the effort to respond to economic circumstances never envisioned in biblical times. Therefore, we now want to propose an ethical framework that can guide economic life today in ways that are both faithful to the Gospel and shaped by human experience and reason.

62. First we outline the duties all people have to each other and to the whole community: love of neighbor, the basic requirements of justice, and the special obligation to those who are poor or vulnerable. Corresponding to these duties are the human rights of every person; the obligation to protect the dignity of all demands respect for these rights. Finally these duties and rights entail several priorities that should guide the economic choices of individuals, communities, and the nation as a whole.

1. The Responsibilities of Social Living

63. Human life is life in community. Catholic social teaching proposes several complementary perspectives that show how moral responsibilities and duties in the economic sphere are rooted in this call to community.

a. Love and Solidarity

64. The commandments to love god with all one's heart and to love one's neighbor as oneself are the heart and soul of Christian morality. Jesus offers himself as the model of this all-inclusive love: ... love one another as I have loved you" (Jn 15:12). These commands point out the path toward true human fulfillment and happiness. They are not arbitrary restrictions on human freedom. Only active love of God and neighbor makes the fullness of community happen. Christians look forward in hope to a true communion among all persons with each other and with God. The Spirit of Christ labors in history to build up the bonds of solidarity among all persons until that day on which their union is brought to perfection in the Kingdom of God⁷. Indeed Christian theological reflection on the very reality of God as a trinitarian unity of persons -- Father, Son, and Holy Spirit -- shows that being a person means being united to other persons in mutual love"⁸.

65. What the Bible and Christian tradition teach, human wisdom confirms. Centuries before Christ, the Greeks and Romans spoke of the human person as a "social animal" made for friendship, community, and public life. These insights show that human beings achieve self-realization not in isolation, but in interaction with others⁹.

66. The virtues of citizenship are an expression of Christian love more crucial in today's interdependent world than ever before. These virtues grow out of a lively sense of one's dependence on the commonweal and obligations to it. This civic commitment must also guide the economic institutions of society. In the absence of a vital sense of citizenship among the businesses, corporations, labor unions, and other groups that shape economic life, society as a whole is endangered. Solidarity is another name for this social friendship and civic commitment that make human moral and economic life possible.

67. The Christian tradition recognizes, of course, that the fullness of love and community will be achieved only when God's work in Christ comes to completion in the kingdom of God. This kingdom has been inaugurated among us, but God's redeeming and transforming work is not yet complete. Within history, knowledge of how to achieve the goal of social unity is limited. Human sin continues to wound the lives of both individuals and larger social bodies and places obstacles in the path toward greater social solidarity. If efforts to protect human dignity are to be effective, they must take these limits on knowledge and love into account. Nevertheless, sober realism should not be confused with resigned or cynical pessimism. It is a challenge to develop a courageous hope that can sustain efforts that will sometimes be arduous and protracted.

b. Justice and Participation

68. Biblical justice is the goal we strive for. This rich biblical understanding portrays a just society as one marked by the fullness of love, compassion, holiness, and peace. On their path through history, however, sinful human beings need more specific guidance on how to move toward the realization of this great vision of God's Kingdom. This guidance is contained in the norms of basic or minimal justice. These norms state the minimum levels of mutual care and respect that all persons owe to each other in an imperfect world¹⁰. Catholic social teaching, like must philosophical reflection, distinguishes three dimensions of basic justice: commutative justice, distributive justice, and social justice¹¹.

69. commutative justice calls for fundamental fairness in all agreements and exchanges between individuals or private social groups. It demands respect for the equal human dignity of all persons in economic transactions, contracts, or promises. For example, workers owe their employers diligent work in exchange for their wages. Employers are obligated to treat their employees as persons, paying them fair wages in exchange for the work done and establishing conditions and patterns of work that are truly human¹².

70. Distributive justice requires that the allocation of income, wealth, and power in society be evaluated in light of its effects on persons whose basic material needs are unmet. The Second Vatican Council stated: "The right to have a share of earthly goods sufficient for oneself and one's family belongs to everyone. The fathers and doctors of the Church held this view, teaching that we are obliged to come to the relief of the poor and to do so not merely out of our superfluous goods"¹³. Minimum material resources are an absolute necessity for human life. If persons are to be recognized as members of the human community, then the community has an obligation to help fulfill these basic needs unless an absolute scarcity of resources makes this strictly impossible. No such scarcity exists in the United States today.

71. Justice also has implications for the way the larger social, economic, and political institutions of society are organized. Social justice implies that persons have an obligation to be active and productive participants in the life of society and that society has a duty to enable them to participate in this way. This form of justice can also be called "contributive," for it stresses the duty of all who are able to help create the goods, services, and other nonmaterial or spiritual values necessary for the welfare of the whole community. In the words of Pius XI, "It is of the very essence of social justice to demand from each individual all that is necessary for the common good"¹⁴. Productivity is essential if the community is to have the resources to serve the well-being of all. Productivity, however, cannot be measured solely by its output in goods and services. Patterns of production must also be measured in light of their impact on the fulfillment of basic needs, employment levels, patterns of discrimination, environmental quality, and sense of community.
72. The meaning of social justice also includes a duty to organize economic and social institutions so that people can contribute to society in ways that respect their freedom and the dignity of their labor. Work should enable the working person to become "more a human being," more capable of acting intelligently, freely, and in ways that lead to self-realization¹⁵....

c. Overcoming Marginalization and Powerlessness

77. These fundamental duties can be summarized this way: basic justice demands the establishment of minimum levels of participation in the life of the human community for all persons....

2. Human Rights: The Minimum Conditions for Life in Community

79. Catholic social teaching spells out the basic demands of justice in greater detail in the human rights of every person. These fundamental rights are prerequisites for a dignified life in community. The Bible vigorously affirms the sacredness of every person as a creature formed in the image and likeness of God. The biblical emphasis on covenant and community also shows that human dignity can only be realized and protected in solidarity with others. In Catholic social thought, therefore, respect for human rights and a strong sense of both personal and community responsibility are linked, not opposed. Vatican II described the common good as "the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment"¹⁶. These conditions include the right to fulfillment of material needs, a guarantee of fundamental freedoms, and the protection of relationships that are essential to participation in the life of society¹⁷. These rights are bestowed on human beings by God and grounded in the nature and dignity of human persons. They are not created by society. Indeed society has a duty to secure and protect them¹⁸.

80. The full range of human rights has been systematically outlined by John XXIII in his encyclical Peace on Earth (Pacem in Terris). His discussion echoes the United Nations Universal Declaration of Human Rights and implies that internationally accepted human rights standards are strongly supported by Catholic teaching. These rights include the civil and political rights to freedom of speech, worship, and assembly. A number of human rights also concern human welfare and are of a specifically economic nature. First among these are the rights to life, food, clothing, shelter, rest, medical care, and basic education. These are indispensable to the protection of human dignity. In order to ensure these necessities, all persons have a right to earn a living, which for most people in our economy is through remunerative employment....

3. Moral Priorities for the Nation

85. The common good demands justice for all, the protection of the human rights for all¹⁹. Making cultural and economic institutions more supportive of the freedom, power, and security of individuals and families must be a central, long-range objective for the nation. Every person has a duty to contribute to building up the commonweal....

86. The obligation to provide justice for all means that the poor have the single most urgent economic claim on the conscience of the nation....

87. As individuals and as a nation, therefore, we are called to make a fundamental "option for the poor"²⁰. The obligation to evaluate social and economic activity from the viewpoint of the poor and the powerless arises from the radical command to love one's neighbor as one's self. Those who are marginalized and whose rights are denied have privileged claims if society is to provide justice for all. This obligation is deeply rooted in Christian belief....

88. The prime purpose of this special commitment to the poor is to enable them to become active participants in the life of society....

89. In summary, the norms of love, basic justice, and human rights imply that personal decisions, social policies, and economic institutions should be governed by several key priorities. These priorities do not specify everything that must be considered in economic decision-making. They do indicate the most fundamental and urgent objectives.

90. a. The fulfillment of the basic needs of the poor is of the highest priority. Personal decisions, policies of private and public bodies, and power relationships must be all evaluated by their effects on those who lack the minimum necessities of nutrition, housing, education, and health care. In particular, this principle recognizes that meeting fundamental human needs must come before the fulfillment of desires for luxury consumer goods, for profits not conducive to the common good, and for unnecessary military hardware.

91. b. Increasing active participation in economic life by those who are presently excluded or vulnerable is a high social priority. The human dignity of all is realized when people gain the power to work together to improve their lives, strengthen their families, and contribute to society. Basic justice calls for more than providing help to the poor and other vulnerable members of society....

92. c. The investment of wealth, talent, and human energy should be specially directed to benefit those who are poor or economically insecure....

93. d. Economic and social policies as well as organization of the work world should be continually evaluated in light of their impact on the strength and stability of family life. The long-range future of this nation is intimately linked with the well-being of families, for the family is the most basic form of human community²¹. Efficiency and competition in the marketplace must be moderated by greater concern for the way work schedules and compensation support or threaten the bonds between spouses and between parents and children. Health, education and social service programs should be scrutinized in light of how well they ensure both individual dignity and family integrity....

C. Working for Greater Justice: Persons and Institutions

96. The economy of this nation has been built by the labor of human hands and minds. Its future will be forged by the ways persons direct all this work toward greater justice. The economy in not a machine that operates according to its own inexorable laws, and persons are not mere objects tossed about by economic forces. Pope John Paul II has stated that "human work is a key, probably the essential key, to the whole social question"²². The Pope's understanding of work includes virtually all forms of productive human activity: agriculture, entrepreneurship, industry, the care of children, the sustaining of family life, politics, medical care, and scientific research. Leisure, prayer, celebration, and the arts are also central to the realization of human dignity and to the development of a rich cultural life. It is in their daily work, however, that persons become the subjects and creators of the economic life of the nation²³. Thus, it is primarily through their daily labor that people make their most important contributions to economic justice.

97. All work has a threefold moral significance. First, it is a principle way that people exercise the distinctive human capacity for self-expression and self-realization. Second, it is the ordinary way for human beings to fulfill their material needs. Finally, work enables people to contribute to the well-being of the larger community. Work is not only for one's self. It is for one's family, for the nation, and indeed for the benefit of the entire human family²⁴.

98. These three moral concerns should be visible in the work of all, no matter what their role in the economy: blue collar workers, managers, homemakers, politicians, and others. They should also govern the activities of the many different, overlapping communities and institutions that make up society: families, neighborhoods, small businesses, giant corporations, trade unions, the various levels of government, international organizations, and a host of other human associations including communities of faith....

1. Working People and Labor Unions

...
104. The Church fully supports the right of workers to form unions or other associations to secure their rights o fair wages and working conditions. This is a specific application of the more general right to associate. In the words of Pope John Paul II, "The experience of history teaches that organizations of this type are an indispensable element of social life, especially in modern industrial societies"²⁵. Union may also legitimately resort to strikes where this is the only available mens to the justice owed to workers²⁶. No one may deny the right to organize without attacking human dignity itself. Therefore, we firmly oppose organized efforts, such as those regrettably now seen in this country, to break existing unions and prevent workers from organizing. Migrant agricultural workers today are particularly in need of the protection, including the right to organize and bargain collectively. U.S. labor law reform is needed to meet these problems as well as to provide more timely and effective remedies for unfair labor practices....

106. Along with the rights of workers and unions go a number of important responsibilities. Individual workers have obligations to their employers, and trade unions also have duties to society as a whole. Union management in particular carries a strong responsibility for the good name of the entire union movement. Workers must use their collective power to contribute to the well-being of the whole community and should avoid pressing demands whose fulfillment would damage the common good and the rights of more vulnerable members of society²⁷. It should be noted, however, that wages paid to workers are but one of the factors affecting the competitiveness of industries. Thus, it is unfair to expect unions to make concessions if managers and shareholders do not make at least equal sacrifices.

2. Owners and Managers

110. The economy's success in fulfilling the demands of justice will depend on how its vast resources and wealth are managed. Property owners, managers, and investors of financial capital must all contribute to creating a more just society. Securing economic justice depends heavily on the leadership of men and women in business and on the wise investment by private enterprises. Pope John Paul II has pointed out, "The degree of well-being which society today enjoys would be unthinkable without the dynamic figure of the business person, whose function consists of organizing human labor and the means of production so as to give rise to the goods and services necessary for the prosperity and progress of the community"²⁸. The freedom of entrepreneurship, business, and finance should be protected, but the accountability of this freedom to the common good and the norms of justice must be assured.

111. Persons in management face many hard choices each day, choices on which the well-being of many others depends. Commitment to the public good and not simply the private good of their firms is at the heart of what it means to call their work a vocation and simply a career or a job. We believe that the norms and priorities discussed in this letter can be of help as they pursue their important tasks. The duties of individuals in the business world, however, do not exhaust the ethical dimensions of business and finance. The size of a firm or bank is in many cases an indicator of relative power. Large corporations and large financial institutions have considerable power to help shape economic institutions within the United States and throughout the world. With this power goes responsibility and the need for those who manage it to be held to moral and institutional accountability.

112. Business and finance have the duty to be faithful trustees of the resources at their disposal. No one can ever own capital resources absolutely or control their use without regard for others and society as a whole²⁹. This applies first of all to land and natural resources. Short-term profits reaped at the cost of depletion of natural resources or the pollution of the environment violate this trust.

113. Resources created by human industry are also held in trust. Owners and managers have not created this capital on their own. They have benefited from the work of many others and from the local communities that support their endeavors³⁰. They are accountable to these workers and communities when making decisions. For example, reinvestment in technological innovation is often considered crucial for the long-term viability of a firm. The use of financial resources solely in pursuit of short-term profits can stunt the production of needed goods and services; a broader vision of managerial responsibility is needed.

114. The Catholic tradition has long defended the right to private ownership of productive property³¹. This right is an important element in a just economic policy. It enlarges our capacity for creativity and initiative³². Small and medium-sized farms, businesses, and entrepreneurial enterprises are among the most creative and efficient sectors of our economy. They should be highly valued by the people of the United States, as are land ownership and home ownership. Widespread distribution of property can help avoid excessive concentration of economic and political power. For these reasons ownership should be made possible for a broad sector of our population³³.

115. The common good may sometimes demand that the right to won be limited by public involvement in the planning or ownership of certain sectors of the economy. Support of private ownership does not mean that anyone has the right to unlimited accumulation of wealth. "Private property does not constitute for anyone an absolute or unconditional right. No one is justified in keeping for his exclusive use what he does not need, when others lack necessities"³⁴. Pope John Paul II has referred to limits placed on ownership by the duty to serve the common good as a "social mortgage" on private property³⁵. For example, these limits are the basis of society's exercise of eminent domain over privately owned land needed for roads or other essential public goods. The Church's teaching opposes collectivist and statist economic approaches. But it also rejects the notion that a free market automatically produces justice. Therefore, as Pope John Paul II has argued, "One cannot exclude the socialization, in suitable conditions, of certain means of production"³⁶. The determination of when such conditions exist must be made on a case by case basis in light of the demands of the common good.

116. United States business and financial enterprises can also help determine the justice or injustice of the world economy. They are not all-powerful, but their real power is unquestionable. Transnational corporations and financial institutions can make positive contributions to development and global solidarity. Pope John Paul II has pointed out, however, that the desire to maximize profits and reduce cost of natural resources and labor has often tempted these transnational enterprises to behavior that increases inequality and decreases the stability of the international order³⁷. By collaborating with those national governments that serve their citizens justly and with intergovernmental agencies, these corporations can contribute to overcoming the desperate plight of many persons throughout the world.

117. Business people, managers, investors, and financiers follow a vital Christian vocation when they act responsibly and seek the common good. We encourage and support a renewed sense of vocation in the business community. We also recognize that the way business people serve society is governed and limited by the incentives which flow from tax policies, and availability of credit, and other public policies.
118. Businesses have a right to an institutional framework that does not penalize enterprises that act responsibly. Governments must provide regulations and a system of taxation which encourage firms to preserve the environment, employ disadvantaged workers, and create jobs in depressed areas. Managers and stockholders should not be torn between their responsibilities to their organizations and their responsibilities toward society as a whole.

3. Citizens and Government

119. In addition to rights and duties related to specific roles in the economy, everyone has obligations based simply on membership in the social community. By fulfilling these duties, we create a true commonwealth. Volunteering time, talent, and money to work for greater justice is a fundamental expression of Christian love and social solidarity. All who have more than they need must come to the aid of the poor. People with professional or technical skills needed to enhance the lives of others have a duty to share them. And the poor have similar obligations: to work together as individuals and families to build up their communities by acts of social solidarity and justice. These voluntary efforts to overcome injustice are part of the Christian vocation.

120. Every citizen also has the responsibility to work to secure justice and human rights through an organized social response. In the words of Pius XI, "Charity will never be true charity unless it takes justice into account ... Let no one attempt with small gifts of charity to exempt himself from the great duties imposed by justice"³⁸. The guaranteeing of basic justice for all is not an optional expression of largesse but an inescapable duty for the whole of society.

121. The traditional distinction between society and the state in Catholic social teaching provides the basic framework for such organized public efforts. The Church opposes all statist and totalitarian approaches to socioeconomic questions. Social life is richer than governmental power can encompass. All groups that compose society have responsibilities to respond to the demands of justice. We have just outlined some of the duties of labor unions and business and financial enterprises. These must be supplemented by initiatives by local community groups, professional associations, educational institutions, churches, and synagogues. All the groups that give life to this society have important roles to play in pursuit of economic justice.

122. For this reason, it is all the more significant that the teachings of the Church insist that government has a moral function: protecting human rights and securing basic justice for all members of the commonwealth³⁹. Society as a whole and in all its diversity is responsible for building up the common good. But it is the government's role to guarantee the minimum conditions that make this rich social activity possible, namely, human rights and justice⁴⁰. This obligation also falls on individual citizens as they choose their representatives and participate in shaping public opinion.

123. More specifically, it is the responsibility of all citizens, acting through their government, to assist and empower the poor, the disadvantaged, the handicapped, and the unemployed. Government should assume a positive role in generating employment and establishing fair labor practices, in guaranteeing the provision and maintenance of the economy's infrastructure, such as roads, bridges, harbors, public means of communication, and transport. It should regulate trade and commerce in the interest of fairness⁴¹. Government may levy the taxes necessary to meet these responsibilities, and citizens have a moral obligation to pay those taxes. The way society responds to the needs of the poor through its public policies is the litmus test of its justice or injustice. The political debate about these policies is the indispensable forum for dealing with the conflicts and tradeoffs that will always be present in the pursuit of a more just economy.

124. The primary norm for determining the scope and limits of governmental intervention is the "principle of subsidiarity" cited above. This principle states that, in order to protect basic justice, government should undertake only those initiatives which exceed the capacities of individuals or private groups acting independently. Government should not replace or destroy smaller communities and individual initiative. Rather it should help them contribute more effectively to social well-being and supplement their activity when the demands of justice exceed their capacities. These does not mean, however, that the government that governs least, governs best. Rather it defines good government intervention as that which truly "helps" other social groups contribute to the common good by directing, urging, restraining, and regulating economic activity as "the occasion requires and necessity demands"⁴². This calls for cooperation and consensus building among the diverse agents in our economic life, including government. The precise form of government involvement in this process cannot be determined from abstract. It will depend on an assessment of specific needs and the most effective ways to address them.

D. Christian Hope and the Courage to Act

125. The Christian vision is based on the conviction that God has destined the human race and all creation for "a kingdom of truth and life, of holiness and grace, of justice, love and peace"⁴³. This conviction gives Christians strong hope as they face the economic struggles of the world today. This hope is not a naive optimism that imagines that simple formulas for creating a fully just society are ready at hand. The Church's experience through history and in nations throughout the world today has made it wary of all ideologies that claim to have the final answer to humanity's problems⁴⁴. Christian hope has a much stronger foundation than such ideologies, for it rests on the knowledge that God is at work in the world, "preparing a new dwelling place and a new earth where justice will abide"⁴⁵.

126. This hope stimulates and strengthens Christian efforts to create a more just economic order in spite of difficulties and setbacks⁴⁶. Christian hope is strong and resilient, for it is rooted in a faith that knows that the fullness of life comes to those who follow Christ in the way of the Cross. In pursuit of concrete solutions, all members of the Christian community are called to an ever finer discernment of the hurts and opportunities in the world around them, in order to respond to the most pressing needs and thus build up a more just society⁴⁷. This is a communal task calling for dialogue, experimentation, and imagination. It also calls for deep faith and a courageous love....

http://personal2.stthomas.edu/gwschlabach/docs/econjust.htm