A Review of and Recommendations Arising From Pope Francis’s “Considerations for an Ethical Discernment Regarding Some Aspects of the Present Economic-Financial System”
Brad Seferian
Abstract: This paper first describes the Catholic Church’s view of the responsibility of an economy to the common good based on Pope Francis’s “Considerations for an Ethical Discernment Regarding Some Aspects of the Present Economic-Financial System.” It discusses how Catholic teachings relate to Aquinas’s understanding of economics. Finally, the paper uses a cost benefit methodology as a practical and ethical solution to economic issues presented by the Pontiff.
The Catholic View of Economics and Finance
Pope Francis seeks to fill the moral void in economics and finance. The pontiff confronts modern shortcomings of the global financial and economic system, and provides insight on how to address these market failures. What’s truly striking about this document is the use of logic, Christian teachings, and virtue ethics to navigate problems that are deeply rooted on a global scale. In a system where people look inward to solve problems, Pope Francis uses ethical reasoning to look at bigger picture issues. To understand the meaning of Pope Francis’ call for action, and develop a framework for what an economic system should look like to the ethical actor, this paper does the following:
- Introduce the Church’s basic view of society and the responsibility of an economy to the common good
- Discuss how Catholic teachings relate to Aquinas’s understanding of economics
- Use cost benefit analysis methodology as an practical and ethical solution to issues presented by His Holiness
The term “utility” is introduced almost universally in basic microeconomics classes. For the purposes of this article two concepts under utility theory require explanation. The first is the principle that each individual consumer is A) a rational consumer B) a self-interested utility maximizer. These criteria provide the basis for an economy that functions through individual interests powered by the individual need to maximize utility. An indifference curve graphs individual preferences by mapping desired quantity of different goods that correspond to a certain level of utility. Utility theory relies on the assumption that within an economic market, individuals seek to maximize their own happiness through consumption of market goods.
Pope Francis sees this vision of economic relations as fundamentally problematic. The underlying principle of capitalism is that private control of trade and industry can be used to create profit for the individual. However, Pope Francis finds the idea of looking at an economy solely through a monetary lens as too narrow. By limiting individuals to their market preferences (utility) and choices as a consumer of goods, we neglect to account for the human part of the “human relations” side of any economy. In his own words, “Every economic system is legitimate if it thrives not merely through the quantitative development of exchange but rather by its capacity to promote the development of the entire person and of every person” (10)
The development of the entire person is a concept unfamiliar to business students, as the curriculum of standard business schools demonstrate. The Catholic Church believes that a strong economy is only possible through authentic development of everyperson. This sort of development comes from love for community, the integral good, and truth.
The importance of the Church’s theological interpretation cannot be disregarded. The ideas that resonate with millions of Christians worldwide must have gained merit through their practical and ethical value. Saint Thomas Aquinas, whose work has been studied for centuries, puts forward a set of ethics that underpins what the Pope prescribes for our modern financial issues. We can draw a parallel to Aquinas’ theories and how they relate to the “Oeconomicae et pucuniariae quaestiones”.
