Catholic Teaching on Economics

Encyclicals on Economics

  • Rerum Novarum ("On the Condition of Labor")

    Pope Leo XIII, 1891

    Why it matters: This is the foundational social encyclical that launched modern Catholic social teaching.

    Key themes:

    Rights and dignity of workers

    Right to private property

    Opposition to socialism and unregulated capitalism

    The role of the Church and state in social and economic matters

    Famous quote:
    “It is surely undeniable that, when a man engages in remunerative labor, the impelling reason and motive of his work is to obtain property, and thereafter to hold it as his very own.”

  • Quadragesimo Anno ("In the 40th Year")

    Pope Pius XI, 1931

    Why it matters: Written 40 years after Rerum Novarum, during the Great Depression, it expands on Leo XIII’s ideas.

    Key themes:

    Critique of both socialism and monopolistic capitalism

    The principle of subsidiarity (problems should be dealt with at the lowest competent level)

    Call for social and economic order based on solidarity and justice

    Famous quote:
    “Just as the unity of human society cannot be built upon class conflict, so the proper ordering of economic life cannot be left to free competition alone.”

  • Centesimus Annus ("The Hundredth Year")

    Pope John Paul II, 1991

    Why it matters: Issued 100 years after Rerum Novarum, it reflects on the fall of communism and modern capitalism.

    Key themes:

    Endorsement of a market economy with moral limits

    Strong support for human dignity, solidarity, and the role of the family

    Economic freedom must be tied to truth and virtue

    Famous quote:
    “The free market is the most efficient instrument for utilizing resources and effectively responding to needs... but it must be circumscribed within a strong juridical framework.”