a take on the recent statement by the vatican regarding the global economy

Today the Vatican weighed in on the crisis in the global economy.

Pontifical Council for Justice and Peace


TOWARDS REFORMING THE INTERNATIONAL FINANCIAL AND MONETARY SYSTEMS IN THE CONTEXT OF GLOBAL PUBLIC AUTHORITY

Vatican City

2011

Here are some of my thoughts after speed reading the document:

• the Church continues to emphasize that the economy will remain unstable as long as technological growth (the growth of how to do things, the growth of information) outpaces ethical growth - the knowledge of what is good for man.  There is a difference between what man can and ought to do, and when this is violated, instability results.
• the principles of subsidiarity (the larger serving the smaller) and solidarity (looking out for an interest larger than our own) are continually violated in the world economy.  Man is too often seen as a means to an economic end, and decisions are taken away from the smaller man by the larger economy, and man too often looks after his own interest and ignores the common good.  These violations can be made by individuals, national economies, and international alliances.
• if the principles of solidarity and subsidiarity can be agreed upon and respected, it would be possible to build an international body that looks after the world economy can be erected, and such a body is needed because economic possibilities in the international economy are growing much more quickly than actual wealth.  Such a body will only be possible however if it is able to convince member nationas that the body itself will live by the principle of subsidiarity, the larger serving the smaller
• true wealth in the end is a spiritual good, not a material good.  the economy is at the service of the spiritual good of man, not vice versa

After reading a few economic experts who disagree with the statement by the Holy See, here are some more thoughts

• because this document is not about faith and morals, and is issued by a Pontifical Council not the Holy Father, it is not morally binding, but is meant to be a discussion peace before the upcoming G20 summit
• economists have faulted national banks and their monetary policies for much of the current crisis, and some have little hope that an international central bank would know what to do to regulate the international economy; furthermore, few developed nations have any cash whatsoever to contribute to such a bank
• many economists say the economic problems come from those with wealth being able to take extraordinary risks, unreasonable ones, without in the end having to suffer the consequences of bad decisions; bad economic decisions fall disproportionately on the poor, and that is one of the reasons the Vatican is issuing this statement