Monday, June 22, 2015

Pope Francis’s Incoherent Economics

By Peter Johnson

The first pope to grace the cover of Rolling Stone magazine released his highly anticipated treatise on the environment, exhorting us to take better care of “Mother Earth.” The 184-page document has further cemented Pope Francis’ status as a darling of hip 20- and 30-somethings who are already predisposed to blindly accept radical environmentalism.
As a recovering radical environmentalist myself, I was particularly attuned to the way that Pope Francis’ encyclical, Laudato Si, conflated the issue of environmental stewardship with the issues of poverty in much the same way my trainers in the Peace Corps taught me to approach my work as a beekeeping teacher in rural Paraguay. Take, for example, this passage, which explores rural environmental challenges:
In order to continue providing employment, it is imperative to promote an economy which favours productive diversity and business creativity. For example, there is a great variety of small-scale food production systems which feed the greater part of the world’s peoples, using a modest amount of land and producing less waste, be it in small agricultural parcels, in orchards and gardens, hunting and wild harvesting or local fishing. Economies of scale, especially in the agricultural sector, end up forcing smallholders to sell their land or to abandon their traditional crops. Their attempts to move to other, more diversified, means of production prove fruitless because of the difficulty of linkage with regional and global markets, or because the infrastructure for sales and transport is geared to larger businesses. Civil authorities have the right and duty to adopt clear and firm measures in support of small producers and differentiated production. To ensure economic freedom from which all can effectively benefit, restraints occasionally have to be imposed on those possessing greater resources and financial power. To claim economic freedom while real conditions bar many people from actual access to it, and while possibilities for employment continue to shrink, is to practise a doublespeak which brings politics into disrepute. Business is a noble vocation, directed to producing wealth and improving our world. It can be a fruitful source of prosperity for the areas in which it operates, especially if it sees the creation of jobs as an essential part of its service to the common good.
While I don’t doubt for a moment that Pope Francis sincerely wants to help the poor, I think it would be difficult for even the most erudite Catholic scholars to find a coherent message in a passage like this.
For example, he praises business as a “noble vocation” while summarily disparaging “economies of scale.” While he recognizes that poor people need to be connected to the larger economy to rise out of poverty, he also encourages “civil authorities” to constrain those in the larger economy who actually have the capital to invest in new enterprises.
This vacillation between upholding the merits of enterprise and disparaging profits runs throughout the encyclical. If I could sum up his view on commerce in one sentence it would be this: Business is okay, as long as you don’t make too much money.
Of course this encyclical does not make it clear what “too much money” is; nor is there any acknowledgement that enormously wealthy people tend to be the ones with the capacity to invest in large enterprises that provide the sort of broad job creation he says is an “essential part” of the common good.

1 comment:

  1. I remember a story of a professor from the US going to the Soviet Union and giving a slide presentation about the days depicted in "The Grapes of Wrath". What surprised the audience was that these farmers were DRIVING away from their farms in cars they owned, loaded to the breaking point with their possessions.