Catholic Teaching on Economics
Encyclicals on Economics
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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.”
"If anyone fall, into that error so that he obstinately presumes to declare that it is not a sin to exercise usury, we decree that he must be punished as a heretic."
— The Council of Vienna (1311–1312) under Pope Clement V declared: