Pope Pius XI
After a few delays, Pope Benedict’s long-awaited third encyclical on economic and social issues is set to be signed tomorrow, June 29, and released to the public on July 6 or 7, according to Catholic News Agency.
We here at American Catholic have had our share of lively debates over the meaning and application of Catholic social doctrine. I anticipate that they will continue following the release of this encyclical. This is a historical event of great importance to Catholics all over the world. Like some of his predecessors, and particularly Pius XI, Pope Benedict will be addressing the world on social and economic matters in the midst of a world wide economic crisis.
It was the crisis itself that reportedly caused the delay in the completion of the encyclical, and as it would be reasonable to assume, it is now clear that much of it will deal directly with the breakdown of the financial system in particular, and with the phenomenon of globalization in general.
I’ve noticed a few posts dealing with the problems of taxation and government spending. With the social teaching of our Church clearly warns against the dangers of burdensome taxation, it nonetheless remains that tax rates have been cut dramatically in the last 30 years, even as government spending has increased. The losses of tax revenue were offset by a massive accumulation of debt, because a society such as ours requires a great deal of wealth to continue functioning.
I will be the one to point out, then, that far more perilous to the position of the working American family is the stagnation and overall decline of real wages – wages adjusted for inflation – during that same stretch of time. Both global pressures as well as corporate and government offensives against the social position of the American worker have contributed to a decline in real wages and have caused a build up of consumer debt that rivals the government’s debt.
We were told by endless propaganda no different in its shrillness and anxiousness that cutting taxes on the incomes of the wealthy, on dividends and capital gains, on estates and every other business venture, would create jobs and prosperity for all.
(Originally published at InsideCatholic.com)
It might surprise some to learn that the basic idea behind the “welfare state” did not originate with either Marxist revolutionaries or bleeding-heart liberals, but rather with a head of state usually identified with conservatism: Otto von Bismarck. Faced with a growing threat from the German socialist movement, in the 1880s Bismarck established four programs that were essentially the minimum of the socialist program: health insurance, accident insurance (or workmen’s compensation), disability insurance, and a retirement fund for the elderly. By implementing these programs, the German leader hoped to steal some of the thunder from the socialists and prevent a revolutionary uprising.
In the United States, a similar motivation guided the architects of the New Deal, Social Security, and other programs now grouped under the broad heading “welfare state.” One might never know, based on today’s heated political rhetoric, that the idea behind the welfare state was to prevent, not bring about, socialism. Yet since the 2008 campaign, welfare, along with regulation and redistribution, have become synonymous with “socialism” in America.
Catholics have been as divided over these issues as the nation at large, with nearly everyone interested in the political debate combing the social doctrines of the Church to support one theory at the expense of another. So where precisely does the Church stand on the issue of welfare?