This article originally appeared on The New Theological Movement written by Reginaldus on July 29, 2010 Anno Domini. Re-posted with permission.
18th Sunday in Ordinary Time, Luke 12:13-21
The rich man of this Sunday’s Gospel is blessed with a bountiful harvest. Rather than thanking God for this gift, he hoards the grain in his barns – his heart is possessed by his possessions. At the moment of death, the Lord calls him a fool, for he was not rich in what matters to God.
The Fathers of the Church, and St. Thomas Aquinas following them, see in this parable a strong teaching of social justice. Their teachings have in turn been integrated into the Social Doctrine of the Church. Here we will consider St. Thomas’ exposition of the doctrine as well as several important quotations from the Church Fathers.?
The common destination of all goods and right to private property
We must first affirm that man has a right to own private property. All men have a natural right to make use of material goods. According to positive human law, men also have a right to private property – this is necessary for the good order of society and the proper care of the goods themselves, it also serves as a means of restraining greed and inciting toward generosity (a man can give alms only if he has some property of his own).
However, it is equally clear in the Church’s Tradition, as expressed by the Fathers of the Church and magisterial teachings, that the right to private property is subordinate to the universal destination of all goods. That is, the right to private property cannot be extended to the point of depriving others of the basic material necessities of life. Every man has the right to the material necessities of life – when he is deprived of these, while another has excess wealth, a grave injustice has occurred.
Despite their obvious potential advantages, employee owned businesses tend to be rare. In 2004, there were an estimated 300 worker owned cooperatives in the United States. If that sounds impressive, consider that in 2001, there were over 18.3 million nonfarm proprietorships in the U.S. Nor is the situation much different overseas. The Mondragon Cooperative Corporation is typically cited as an example of a successful worker cooperative, and it is indeed quite successful . . . for a co-op. Compared to other types of businesses, however, Mondragon performs well, but not stellar. It is the seventh largest corporation in Spain, and despite being a conglomeration of more than a 100 different companies, it accounts for less than 4% of the GDP of the Basque region of Spain where it is located. When one considers that Mondragon is in all likelihood the most successful worker cooperative on the planet, the idea that the co-op’s success proves the viability of worker cooperatives generally begins to seem doubtful.
There’s nothing legally preventing people from choosing to start a workers-owned cooperative rather than some other form of business, and in fact cooperatives receive more favorable tax treatment than do standard business corporations. Why then, aren’t they more common? The question has actually inspired a fair amount of research, which has identified at least four obstacles to the success of worker owned businesses.
Everyone here at the American Catholic hoped that you all have had a happy Labor Day weekend.
The principle of Subsidiarity states that government should undertake only those initiatives which exceed the capacity of individuals or private groups acting independently.
Pope Leo XIII developed the principle in his AD 1891 encyclical Rerum Novarum. The principle was further developed by Pope Pius XI in his AD 1931 encyclial Quadragesimo Anno.
To learn more about Subsidiarity click here.
To read Pope Leo XIII’s encyclical Rerum Novarum click here.
To read Pope Pius XI‘s encyclical Quadragesimo Anno click here.
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