The economy has been one of the most important and often controversial topics in the teaching of the Church’s Social Doctrine. Since the publication of the encyclical “Rerum Novarum” in 1891, the Church has sought a balance between defending private property and the need for a just distribution of wealth. In the contemporary world, where inequality and extreme poverty remain persistent problems, the Church continues proposing an economic vision grounded in the common good, solidarity, and each person’s dignity. This chapter explores how the Church addresses distributive justice, human work, and business responsibility, and analyzes the challenges posed by the current global economic system.
3.22.1 The Church’s Social Doctrine and Economic Justice
The Church’s concern for economic justice originates in the fundamental principle that the economic order must always be subordinate to the well-being of the human person. Pope Leo XIII’s first social encyclical, “Rerum Novarum”, responded to the exploitative conditions workers endured during the Industrial Revolution. In this document, Leo XIII defended workers’ rights to a just wage, dignified working conditions, and forming trade unions to defend their rights. At the same time, he rejected socialism as a solution, arguing that abolishing private property would not resolve injustice but aggravate it.
Pope Pius XI, in his encyclical “Quadragesimo Anno” (1931), developed the concept of subsidiarity, which holds that decisions must be made at the lowest level closest to people, allowing local communities to resolve their own problems whenever possible. Subsidiarity is complemented by the principle of solidarity, emphasizing that human beings have a responsibility to support one another and create social and economic structures promoting the common good.
The Church’s teaching on distributive justice centers on the idea that the economic system must redistribute wealth so that every person has access to the goods necessary for a dignified life. The Church holds that the right to private property is not absolute, but must remain subordinate to the universal destination of goods: the idea that God created the world so that everyone might enjoy its fruits.
Pope John Paul II, in his encyclical “Centesimus Annus” (1991), argued that the market economy, when appropriately regulated, can be an effective instrument for promoting individual initiative and the common good, but warned that uncontrolled capitalism tends to generate inequalities and marginalize the weakest. John Paul II insisted that the economy’s goal cannot simply be capital accumulation, but must be the integral development of every person.
3.22.2 Pope Francis and Criticism of the Global Economic System
Pope Francis has been one of the most outspoken critics of the current global economic order. Since the beginning of his pontificate, he has repeatedly spoken of the need for an “economy of care”, in which people matter more than money. In his encyclical “Laudato Si’” (2015), Francis denounces consumerism and the “throwaway culture” treating people and the planet as mere resources to exploit.
In his apostolic exhortation “Evangelii Gaudium” (2013), Francis uses forceful language to condemn an economic system that “kills” and generates exclusion and inequality. According to Francis, the problem is not simply the corruption or greed of a few, but a structurally unjust system placing economic profit above human well-being. For Francis, a market governed solely by the laws of supply and demand, without considering the common good, creates an environment where the poor and weak are sacrificed on the altar of economic growth.
Pope Francis has called for an “inclusive economy” whose aim is not simply maximizing profit, but promoting integral human development. This economy must be grounded in solidarity, distributive justice, and care for the environment. In 2020, Francis launched the initiative known as the Economy of Francesco, a project bringing together young economists and entrepreneurs worldwide to rethink and redesign the global economic system according to Gospel principles.
3.22.3 The Church and Human Work: The Right to Dignified Work
Work has been one of the most important subjects in the Church’s social teaching. In his encyclical “Laborem Exercens” (1981), Pope John Paul II emphasized that work is not merely a means of subsistence, but a fundamental dimension of human existence. Work allows people to participate in God’s creative work and gives them a sense of purpose and dignity. According to John Paul II, work must be organized in ways that respect personal dignity and promote the common good.
The Church has defended the right to a just wage, safe working conditions, and workers’ association. Where workers are exploited or structural unemployment is high, the Church has called on governments and businesses to adopt economic policies promoting dignified work and ensuring every person has the opportunity to contribute to society.
With the arrival of automation and artificial intelligence, work is changing radically, and many fear that millions of jobs could disappear. The Church has warned that technological progress must not lead to the dehumanization of work or the creation of a new class of excluded people. In his message for the 2020 World Day of Work, Pope Francis called for an approach placing workers’ well-being above profit maximization and ensuring that technological development does not come at the expense of human dignity.
3.22.4 The Role of Business and Corporate Social Responsibility
The Church has insisted that businesses bear a moral responsibility extending beyond generating profits. In its document “The Vocation of the Business Leader” (2012), the Pontifical Council for Justice and Peace describes a business as a community of people whose purpose is creating value for society. Businesses, the document says, must seek a balance among economic efficiency, workers’ well-being, and their impact on the community.
Pope Francis has spoken of the need for an “economy of care”, in which businesses care not only for their shareholders, but also for their workers, customers, and the wider community. In “Laudato Si’”, Francis calls on businesses to adopt sustainable production practices, promote social justice, and reduce their carbon footprint. Corporate social responsibility must not be a mere slogan, but a real practice transforming how businesses operate and create value.
3.22.5 Toward an Economy Serving Life: The Future of the Church’s Economic Ethics
The future of the Church’s economic ethics will depend on its ability to influence global economic policy and propose alternative models promoting a more just distribution of wealth. The Church will continue advocating structural change placing the human person at the center of the economy and promoting a globalization of solidarity rather than a globalization of indifference.
In Pope Francis’s words: “Money must serve, not rule”. The Church’s challenge will be how to put this vision into practice in a world where capital and markets often determine policies and the poor remain excluded.