As a Catholic and as a capitalist, Pope John Paul II's Centesimus Annus, more than any other document, has helped me to integrate my religious faith and my belief in free markets. And yet, nothing has challenged my thinking more on what it takes to pursue free enterprise within a moral context than this same document.
As George Weigel said in an interview with Religion and Liberty:
"Centesimus Annus is, with Leo XIII's Rerum Novarum (1891) and Pius XI's Quadragesimo Anno (1931), one of the three great texts of modern Catholic social teaching. But Centesimus Annus did more than recapitulate the teaching of John Paul II's predecessors; it also set the social doctrine of the Church on a new path by its endorsement of the 'free economy,' its empirical sensitivity on questions of economic development, and its insistence that a vibrant, publicly-assertive moral-cultural order is essential to the functioning of the free economy and the democratic political community. Catholics, and indeed everyone interested in the relationship between moral truth and the free society, will be wrestling with Centesimus Annus for at least a century."
Pope John Paul II recognized in Centesimus Annus the importance the entrepreneurial process in building a strong economy.
"A person who produces something other than for his own use generally does so in order that others may use it after they have paid a just price, mutually agreed upon through free bargaining. It is precisely the ability to foresee both the needs of others and the combinations of productive factors most adapted to satisfying those needs that constitutes another important source of wealth in modern society. Besides, many goods cannot be adequately produced through the work of an isolated individual; they require the cooperation of many people in working towards a common goal. Organizing such a productive effort, planning its duration in time, making sure that it corresponds in a positive way to the demands which it must satisfy, and taking the necessary risks -- all this too is a source of wealth in today's society. In this way, the role of disciplined and creative human work and, as an essential part of that work, initiative and entrepreneurial ability becomes increasingly evident and decisive."
However, Pope John Paul II threw a bright light on the false choice between a blind belief in free markets versus the notion that only government can effectively manage the economy for the common good. Pope John Paul II understood the power of freedom, including economic freedom, but also challenged us to understand the critical importance of a moral culture to give our freedoms meaning and purpose.
As I have written at this site time and time again, the more we keep government out of the details of business the better. Markets work. However, that is only part of the equation. To assure that the social contract of market capitalism survives requires prudent, just, and moral actions on the part of its stewards. Otherwise we are at risk of society backing out of this contract and ultimately we risk the loss of many of our freedoms. As William Simon describes it, we must focus on both "doing well and doing good."
Pope John Paul II has gone home. But, let us continue to pray that his legacy will last for many generations to come here on Earth.
