LibGuides: "Catholic Social Thought": ECONOMIC INSTITUTIONS AT THE SERVICE OF MAN

ECONOMIC INSTITUTIONS AT THE SERVICE OF MAN

“One of the higher priority issues in economics is the utilization of resources, that is, of all those goos and services to which economic subjects –– producers and consumers in the private and public spheres –– attribute value because of their inherent usefulness in the areas of production and consumption.”

Concerning the utilization of resources and goods, the Church's social doctrine offers its teaching regarding the universal destination of goods and regarding private property; cf. Chapter Four, Part III of the present document.

“The free market is an institution of social importance because of its capacity to guarantee effective results in the production of goods and services.”

“A truly competitive market is an effective instrument for attaining important objectives of justice.”

“The free market cannot be judged apart from the ends that it seeks to accomplish and from the values that it transmits on a societal level.”

“The Church’s social doctrine, while recognizing the market as an irreplaceable instrument for regulating the inner workings of the economic system, points out the need for it to be firmly rooted in its ethical objectives, which ensure and at the same time suitably circumscribe the space within which it can operate autonomously.”

“The market takes on a significant social function in contemporary society, therefore it is important to identify its most positive potentials and to create the conditions that allow them to be put concretely into effect.”

“The action of the State and of other public authorities must be consistent with the principle of subsidiarity and create situations favorable to the free exercise of economic activity. It must also be inspired by the principle of solidarity and establish limits for the autonomy of the parties in order to defend those who are weaker.”

“It is necessary for the market and the State to act in concert, one with the other, and to compliment each other mutually. In fact, the free market can have a beneficial influence on the general public only when the State is organized in such a manner that it defines and gives direction to economic development.”

“The State can encourage citizens and businesses to promote the common good by enacting an economic policy that fosters the participation of all citizens in the activities of production.”
“With a view to the common good, it is necessary to pursue always and with untiring determination the goal of a proper equilibrium between private freedom and public action, understood both as direct intervention in economic matters and as activity supportive of economic development.”

“Tax revenues and public spending take on crucial economic importance for every civil and political community. The goal to be sought is public financing that is itself capable of becoming an instrument of development and solidarity.”
“Public spending is directed to the common good when certain fundamental principles are observed: the payment of taxes as part of the duty of solidarity; a reasonable and fair application of taxes; precision and integrity in administering and distributing public resources.”

“The social-economic system must be marked by the twofold presence of public and private activity, including private non-profit activity. In this way sundry decision-making and activity-planning centres come to take shape.”

“Private non-profit organizations have their own specific role to play in the economic sphere. These organizations are marked by the fearless attempt to unite efficiency in production with solidarity.”

“Consumers, who in many cases have a broad range of buying power well above the mere subsistence level, exercise significant influence over economic realities by their free decisions regarding whether to put their money into consumer goods or savings.”

“Purchasing power must be used in the context of the moral demands of justice and solidarity, and in that of precise social responsibilities.”