Here will be CST on Economic Issues
Role of the Free Market
The free market is an institution of social importance because of its capacity to guarantee effective results in the production of goods and services. Historically, it has shown itself able to initiate and sustain economic development over long periods. There are good reasons to hold that, in many circumstances, “the free market is the most efficient instrument for utilizing resources and effectively responding to needs”. A truly competitive market is an effective instrument for attaining important objectives of justice: moderating the excessive profits of individual businesses, responding to consumers' demands, bringing about a more efficient use and conservation of resources, rewarding entrepreneurship and innovation, making information available so that it is really possible to compare and purchase products in an atmosphere of healthy competition. -- CSDC, 347
The free market cannot be judged apart from the ends that it seeks to accomplish and from the values that it transmits on a societal level. Indeed, the market cannot find in itself the principles for its legitimization; it belongs to the consciences of individuals and to public responsibility to establish a just relationship between means and ends. The individual profit of an economic enterprise, although legitimate, must never become the sole objective. Together with this objective there is another, equally fundamental but of a higher order: social usefulness, which must be brought about not in contrast to but in keeping with the logic of the market. When the free market carries out the important functions mentioned above it becomes a service to the common good and to integral human development. The inversion of the relationship between means and ends, however, can make it degenerate into an inhuman and alienating institution, with uncontrollable repercussions. -- CSDC, 348
The idea that the market alone can be entrusted with the task of supplying every category of goods cannot be shared, because such an idea is based on a reductionist vision of the person and society. Faced with the concrete “risk of an ‘idolatry' of the market”, the Church's social doctrine underlines its limits, which are easily seen in its proven inability to satisfy important human needs, which require goods that “by their nature are not and cannot be mere commodities” -- CSDC, 349
The market takes on a significant social function in contemporary society, therefore it is important to identify its most positive potentials and to create the conditions that allow them to be put concretely into effect. Market operators must be effectively free to compare, evaluate and choose from among various options. Freedom in the economic sector, however, must be regulated by appropriate legal norms so that it will be placed at the service of integral human freedom. “Economic freedom is only one element of human freedom. When it becomes autonomous, when man is seen more as a producer or consumer of goods than as a subject who produces and consumes in order to live, then economic freedom loses its necessary relationship to the human person and ends up by alienating and oppressing him”. -- CSDC, 350
International Trade
Trade represents a fundamental component of international economic relations, making a decisive contribution to the specialization in certain types of production and to the economic growth of different countries. Today more than ever, international trade — if properly oriented — promotes development and can create new employment possibilities and provide useful resources. The Church's social doctrine has time and again called attention to aberrations in the system of international trade, which often, owing to protectionist policies, discriminates against products coming from poorer countries and hinders the growth of industrial activity in and the transfer of technology to these countries. The continuing deterioration in terms of the exchange of raw materials and the widening of the gap between rich and poor countries has prompted the social Magisterium to point out the importance of ethical criteria that should form the basis of international economic relations: the pursuit of the common good and the universal destination of goods; equity in trade relationships; and attention to the rights and needs of the poor in policies concerning trade and international cooperation. Otherwise, “the poor nations remain ever poor while the rich ones become still richer”. -- CSDC, 364
