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Philip Booth-Catholic Social Teaching and the Market Economy-Institute of Economic Affairs (2007).pdf

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Catholic Social Teaching and the Market Economy Catholic Social Teaching and the Market Economy PHILIP BOOTH wi th contributions from samuel gregg rob e rt k e n n e dy d e n i s o’ b r i e n d e n n i s o’ k e e f f e anthony percy rob e rt a . s i r i c o thomas woods a n d r e w y u e n g e rt The Institute of Economic Affairs CONTENTS First published in Great Britain
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  Catholic Social Teaching and the Market Economy   Catholic Social Teaching and the Market Economy PHILIP BOOTH  with contributions from samuel greggrobert kennedydenis o’briendennis o’keeffeanthony percyrobert a. siricothomas woodsandrew yuengert The Institute of Economic Affairs  First published in Great Britain in 2007 by The Institute of Economic Affairs2 Lord North StreetWestminsterLondon sw1p  3 lb in association with Profile Books LtdThe mission of the Institute of Economic Affairs is to improve public understanding of the fundamental institutions of a free society, by analysing and expounding the role of markets in solving economic and social problems.Copyright © The Institute of Economic Affairs 2007The moral right of the authors has been asserted.All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the publisher of this book.A CIP catalogue record for this book is available from the British Library.Paperback ISBN 978 0 255 36581 9Hardback ISBN 978 0 255 36609 0Many IEA publications are translated into languages other than English or are reprinted. Permission to translate or to reprint should be sought from the Director General at the address above.Typeset in Stone by MacGuru Ltd info @ macguru.org.uk Printed and bound in Great Britain by Hobbs the Printers The authors  11  Foreword by John Kennedy  15  Acknowledgements  18  List of tables and figures  19  Preface by Leonard P. Liggio  21 1 Introduction: understanding Catholic Social Teaching in the light of economic reasoning  27  Philip Booth Understanding policy issues in the light of Catholic Social Teaching  29 Challenges to theologians and Christian politicians  30 The scope of Catholic Social Teaching and the market economy  30 Fundamental messages  31 The main themes  38 References  42 Annexe: a note on referencing  42  PART ONE: ECONOMIC WELFARE AND THE ROLE OF THE STATE2 Rethinking welfare, reviving charity: a Catholic alternative  47  Robert A. Sirico  Introduction  47 CONTENTS  The welfare issue  50 Bureaucracy does not help the poor  53 True Christian charity  56 Defining and dividing responsibilities: solidarity and subsidiarity  58 Conclusion  61 References  62 3 Aid, governance and development  63  Philip Booth Introduction  63 Catholic exhortations to the developed world to finance ‘aid’  64 Catholic Social Teaching: making the case for aid  68 Aid in theory and practice  75 Catholic Social Teaching tempered by realism – is there a way forward?  83 References  89 4 The unanswered questions of the just wage  91 Thomas E. Woods, Jr  The limits of the Church’s teaching authority  91 The minimum wage, the plight of the poor and Catholic conscience  96 The ‘market power’ argument  98 We cannot assume away the fact that it is the poor who will suffer from a minimum wage ...  100 Providing a living wage ... as soon as possible  103  Non-economic arguments and the just wage  104 Conclusion  108 References  109 5 Taxation and the size of the state  111  Philip Booth Introduction  111 Modern Catholic teaching on taxation and the role of the state: taxation for redistribution and welfare  112 Modern Catholic Social Teaching and the role of the state: the provision of legal institutions  122 Modern Catholic Social Teaching and the role of the state: the distinction between charity and taxation  123 Informing Catholic Social Teaching with economic theory: the burden of taxation  124 Informing Catholic Social Teaching with economic theory: public goods and externalities  133 Informing Catholic Social Teaching with economic theory: public choice economics  135 Conclusions: taxation and the role of the state  139 References  140  PART TWO: BUSINESS, THE CONSUMER AND CULTURE IN CHRISTIAN LIFE6 Free markets and the culture of consumption  145  Andrew Yuengert  Introduction  145 Papal encyclicals on consumerism  148 Consumerism and public policy  156 Conclusion  161 References  163
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