This article presents some of Pope Benedict XVI’s thoughts on economic matters, drawing from his writings and speeches before and after his election to the Papacy. He has spoken on numerous occasions about Marxism, capitalism, and, more recently, globalization, which can be thought of as an extension of capitalism. While he is harshly critical of Marxism, his criticisms of capitalism are more moderate, though he maintains a number of reservations about it, and draws parallels between the two systems. In both Marxism and capitalism he sees an attempt to construct a social order on reason alone, and he contrasts this with a Catholic vision of the social order in which reason is united to virtue in the service of moral values. He is generally supportive of globalization, though he has expressed concern about its effects on families and on the poor, as well as its effects on inequality and monopoly power. (Ed. Note: It should be noted that this article was completed, and the current volume of the Review in production before Pope Benedict’s encyclical, Caritas in Veritate, was released.) For some time now the Catholic world has been anticipating a new encyclical on Catholic social teaching from Pope Benedict XVI. Throughout his career, both as pontiff and prior to election, when Joseph Ratzinger was head of the Congregation for the Doctrine of the Faith, Benedict has commented on economics and society. These comments are most often on capitalism, Marxism, and, more recently, on globalization and their relationship to the Catholic vision of the social order. This essay is an attempt to organize these remarks, to identify common themes among them, and to present them as a coherent whole, both to reflect on what Benedict has already said regarding economic issues and to offer a framework for interpreting the encyclical when it eventually is published. “Capitalism,” as Benedict uses the term, is founded in utilitarianism and classical liberalism. Capitalism can largely be characterized by the following propositions: it is possible to construct an ideal social order on reason alone, where reason takes the form of economic principles; reality is essentially material in nature; freedom means the ability to do as one wants; man’s welfare or happiness is understood to be the satisfaction of his wants, which increases the more his wants are satisfied; and businesses satisfy man’s wants in the market
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