Ethical Standards
Catholicism has originated regulations for followers within the economic system. The economic system was created by God with means to provide an understanding that the purpose of work is to develop character and give the people opportunity to serve others. It is also important to understand that God is our provider. God uses our jobs and employers as a channel to give us our income. Catholicism teaches that humans must keep moral standards and understand the limitations of our participation in the economic market. Catholic teaching states that it is or vocation to provide aid for those who are lacking basic necessities for survival. Catholicism accepts individual incentive and profit, however, it is important that profits gained are used for the good of humanity. Society must strive for the ultimate equality, where the whole population possesses the basic needs of life.
Catholicism preaches 4 main values with regard to the Economic system:
Economic Initiative
Economic Initiative - "In other words, to be self employed, to start a business, and to expand one's business"
In order to support human dignity, in these modern times, our ethics must also be translated to this day in age. The structure of society should avoid limiting the right of economic initiative. The right of economic initiative allows one to strive towards their intentions of pursuing entrepreneurship. However, Catholicism condemns the practices of big organizations such as Wal-Mart. Wal-Mart offers great competitive prices that might satisfy customers but at the same time affect local small businesses.
In order to support human dignity, in these modern times, our ethics must also be translated to this day in age. The structure of society should avoid limiting the right of economic initiative. The right of economic initiative allows one to strive towards their intentions of pursuing entrepreneurship. However, Catholicism condemns the practices of big organizations such as Wal-Mart. Wal-Mart offers great competitive prices that might satisfy customers but at the same time affect local small businesses.
Free Markets
Free Markets - "The free market is the most efficient system for the distribution of resources and their transformation by human creativity. Capitalism is essentially compatible with the principles of justice, peace and charity in Catholic social teaching.
Catholicism believes in achieving the ultimate free market. Catholic principles believe that competition are key elements of economic systems. Catholic teachings state that the free market is the most efficient system for the distribution of resources and their transformation by human innovation. Catholics believe that applying principle's of the church's social teaching is a matter of prudential judgement, where meticulous analyses and approaches must be made, including market-based problems.
Private Property
Private Property - "Catholic Church has always defended citizens’ right to private property. In fact, the Church teaches that the right to possess private property is derived from nature, not from man; and the State has the right to control its use in the interests of the public good alone, but by no means to absorb it altogether..."
"In his use of things man should regard the external goods he legitimately owns not merely as exclusive to himself but common to others also, in the sense that they can benefit others as well as himself."188 The ownership of any property makes its holder a steward of Providence, with the task of making it fruitful and communicating its benefits to others, first of all his family." -
Catholic Principles state that all citizens have the right to own and purchase private property. However, this does not mean that one cannot simply become infatuated with material goods. Catholicism preaches that the reason individuals are allowed to own private property is to serve others with it, and thus we cannot hoard or waste it. Catholic teaching states that man should not consider material possessions as his own but for the common good. For example, a private property owner must have good intentions along with personal profit. This can be done through starting a hospital or creating jobs for the unemployed.
"In his use of things man should regard the external goods he legitimately owns not merely as exclusive to himself but common to others also, in the sense that they can benefit others as well as himself."188 The ownership of any property makes its holder a steward of Providence, with the task of making it fruitful and communicating its benefits to others, first of all his family." -
Catholic Principles state that all citizens have the right to own and purchase private property. However, this does not mean that one cannot simply become infatuated with material goods. Catholicism preaches that the reason individuals are allowed to own private property is to serve others with it, and thus we cannot hoard or waste it. Catholic teaching states that man should not consider material possessions as his own but for the common good. For example, a private property owner must have good intentions along with personal profit. This can be done through starting a hospital or creating jobs for the unemployed.
Wealth Distribution
Income Equality - “Between persons of equal income there is no social distinction except the distinction of merit. Money is nothing: character, conduct, and capacity are everything. There would be great people and ordinary people and little people, but the great would always be those who had done great things, and never the idiots whose mothers had spoiled them and whose fathers had left them a hundred thousand a year; and the little would be persons of small minds and mean characters, and not poor persons who had never had a chance. "
The Catholic Social Principle of Economic Initiative, Free Markets, and Private Property are all intertwined to emphasize the importance of equality. Although, we as humans are given the right to pursue profits and own private property, it must not be done in excess that there are individuals that are being left behind. No individual should suffer from the economic greed of another. However, this does not mean that everyone should have a fixed income. It just means that no individual should not lack the basic necessities of life. Past all of our rights in the economic system, it is important to remember that the conditions of living for everyone must be at a specific standard, where no one is lacking the resources for basic survival.
The Catholic Social Principle of Economic Initiative, Free Markets, and Private Property are all intertwined to emphasize the importance of equality. Although, we as humans are given the right to pursue profits and own private property, it must not be done in excess that there are individuals that are being left behind. No individual should suffer from the economic greed of another. However, this does not mean that everyone should have a fixed income. It just means that no individual should not lack the basic necessities of life. Past all of our rights in the economic system, it is important to remember that the conditions of living for everyone must be at a specific standard, where no one is lacking the resources for basic survival.