Pope Francis Speaks Against Capitalism
Pope Francis issued a strong rebuke of market capitalism in the wake of the COVID-19 pandemic in an encyclical released October 3. The pope specifically criticized the “magic theories” of capitalism and the lack of cooperation between countries that have emerged during the coronavirus crisis.
Saying that “the marketplace, by itself, cannot solve every problem,” Francis advocated for a more socialist approach to society on a global scale. Amid one of the most challenging global crises in the last 100 years, the pope believes that the world’s free-market approach is what has led to millions of COVID-19 deaths around the world.
The pope also criticized other aspects of market economies, most notably the Reagan-era idea of “trickle-down economics,” saying that increased unemployment and poverty rates worldwide have only exposed the fact that the policy benefits only the wealthiest members of society. He also argued that the world squandered an opportunity during the Great Recession to enact social change, saying that this “increased freedom for the truly powerful, who always find a way to escape unscathed.”
Some prominent leaders have recently echoed similar sentiments to those of Pope Francis, including investor Warren Buffet. In an April interview with Yahoo Finance, Buffet said that “there’s no question that capitalism, as it gets more advanced, will widen the gap” between the wealthiest people in the world and those in poverty.
Both men have raised awareness toward the issue of increasing inequality stemming from capitalism in recent years, with the pope also calling on all Catholics to combat the “sickness.”
Others have argued that the pope’s criticisms are misguided, claiming that bureaucracy and government inefficiency, not capitalism, are to blame for the scope of the coronavirus pandemic.
Brad Polumbo of the Foundation for Economic Education challenged Francis’s claims by highlighting that the pandemic “started in Communist China” and has gone on to ravage all parts of the world, regardless of their economic system. He also lauded the private sector’s engagement during the pandemic, citing Amazon’s uninterrupted delivery of essential items and private companies switching to the production of personal protective equipment as two examples of unprecedented achievement.
Others have criticized the pope’s assertion that property rights are secondary to more basic human rights such as life and liberty, saying that property rights are essential to protect equality around the world. Alejandro Chafuen of Forbes contends that “only a free economy, with different degrees of government involvement, but with strong respect for a rule of law based on private property, can lead to true fraternity and a social friendship across borders.”
The pope’s criticisms of capitalism and free markets are only the latest in a string of progressive proclamations for the Catholic Church’s leader, who has been in charge of the Vatican since 2013. His latest comments will likely renew a debate seemingly settled in the Church, with Pope Francis’s predecessors largely having denounced socialism in favor of capitalism and a free-market society.