“Thank God someone understands,” summed up one Connecticut-based business executive who wishes to remain anonymous. Here are the highlights. Delivering the keynote at a two-day Global Foundation meeting held in Rome on January 17, 2016, George Cardinal Pell, the Australian prelate who now serves as the Vatican’s first and current Secretariat for the Economy (established by Pope Francis in 2014), spoke clearly in praise of free markets.
“Market economics have brought unprecedented prosperity and represent, despite their many faults and deficiencies, an extraordinary human achievement,” Cardinal Pell said.
“Migration patterns demonstrate that migrants and refugees realize that democratic societies with free economies offer better prospects for them and their children,” he added, pointing out that this is true even amid daunting differences in incomes among various nations and various citizens within a nation.
The cardinal underscored the need for a moral compass in economics, echoing the writings of several popes and many philosophers through the ages. He made the point by culling a number of modern examples of what he called “the Achilles heel of modern capitalism,” and in the last third of his talk, by bringing Catholic social teaching to bear on economic issues of the day. Brilliantly done!
Catholic Business Journal notes that this point is often overlooked, namely that the field of economics itself does not provide a moral compass. This moral compass is the same moral compass that guides all human behavior and it established by looking at the nature of the human person (Aristotle and St. Thomas) which takes place in another discipline—theology, and also in philosophy.
As DeToqueville observed nearly two centuries ago in his study of the American “experiment,” it is only when individuals—whether they be farmers, bankers, managers, employees or corporate C-level executives or politicians—abide by the common moral compass in their financial and economic decisions, policies and actions that a nation’s (or a global) economy will prosper in the fullest way possible.
This the beauty of our Catholic faith, as the Cardinal fleshes out in the latter third of his talk. It is the beauty of Christ’s teachings, which order us to focus on the common good and not on profit alone.
Christ and his teachings truly give light to all things, including to the world of business, finance and economics. To the extent Catholic business professionals and executives recognize this and strive to live it, we do our part to change the world for Christ, in our business.
Back to Cardinal Pell’s keynote. After highlighting a few examples of staggering and inappropriately conceived income absurdities that are based on exaggerated incentives, the Cardinal suggests some solutions.
Business not regulators must lead the way
Again underscoring the benefits of a free market economic system, Cardinal Pell said “If we are to truly mobilize the global economy, in a sustainable fashion, it will require business, not regulators, to take a leading role.”
Biblical examples
“I like to quote Maggie Thatcher,” Cardinal Pell added, “who pointed out that if the Good Samaritan had been without capital he could not have paid for the care of the man who was beaten and robbed on the road to Jericho. It was also useful that the innkeeper trusted him sufficiently to accept his promise to cover any extra costs when he returned (Lk 10:25-37).”
“Even more usefully,” the prelate continued, “the parable of the talents shows that Jesus understood that money should be used profitably to produce income. The man with one talent who was condemned had not wasted his money or thrown it away. He was condemned for burying it and not generating a proper return.”
After referencing the early monastic entrepreneurship and business models, and the writings of numerous Popes on Catholic social teachings and its need for having the good of the human person at the heart of any economic system, Cardinal Pell speaks clearly about what Pope Francis has said (but which has not been properly reported).
Clarifying Francis
“We are all aware of Pope Francis’ commitment to social justice, his option for the poor and those on the peripheries and his condemnations of exploitation, abuse and consumerism,” Cardinal Pell said.
“What is not so widely known is that Pope Francis himself in Laudato Si’ and in his address
to the U.S. Congress in September, has made specific and favorable reference to the role of
business.
“To the U.S. Congress, the Pope said:
“It goes without saying that part of this great effort is the creation and distribution of wealth. The right use of natural resources, the proper application of technology and the harnessing of the spirit of enterprise are essential elements of an economy which seeks to be modern, inclusive and sustainable.”
“His Holiness went on in Washington to quote from Laudato Si’:
“Business is a noble vocation, directed to producing wealth and improving the world. It can be a fruitful source of prosperity for the area in which it operates, especially if it sees the creation of jobs as an essential part of its service to the common good.” (Laudato Si’, 129)
Highlighting where to focus for improvement, Cardinal Pell included the following:
- Young Entrepreneurs. “We should work to encourage among our young men and women the emergence of effective entrepreneurs who will contribute to sustainable growth, especially through job creation.”
- Education of Women. ”the empowerment of women..enabling and encouraging the full potential for women in the economy…and..for their roles as wives and mothers of tomorrow’s generations and as primary educators…”
- Young Men and the Family. “young men…who also need to be reminded of “the vital role of families in building healthy societies…the beauty and consolation of lasting marriages especially in our Western communities ravaged by family collapse.”
- Anti-slavery. “I am pleased to confirm that the Vatican itself will commit to slavery-proofing its own supply chains…”
Conclusion
“When human capital declines, social fragmentation with its economic consequences can only increase,” Cardinal Pell underscored.
Concluding, the Cardinal again spoke about the need to clarify “some of the basic ethical principles that underpin the relationship between businesses and the good society.”
Adding, “Every society needs to find purpose, trust and hope and inspire people to be good, industrious and honest.”
The full talk by Cardinal Pell, is not long and is well-worth reading.
As an aside, Cardinal Pell’s talk captures the core modus operandi of Catholic Business Journal, and the direction in which the journal is refining and upgrading its own focus. More on that later.
For now, please read Cardinal Pell’s full talk here: http://media.wix.com/ugd/4e807f_efdf0281e0b04d17abd5974c3c618625.pdf