The Lilly Project has got me thinking about capitalism, work and vocation, and hence during January I devoted some of my spare time to reading and research on these subjects. What I learned surprised me and will surprise and even shock many who may read this. I am going to do something I’m sure has never been done at Macalester before, something which will strike many as absolutely outrageous-I’m going to quote the pope. This is because in his 1991 encyclical letter Centesimus Annus John Paul II made the best case for capitalism and gave the best rationale for work that I could find. At the risk of over-simplifying, one could say that this encyclical falls into two parts: a critique of socialism and a recommendation for what he calls “new capitalism.”

John Paul distinguishes between Ideal (i.e. theoretical) Socialism and Real Socialism. In the words of one commentator, he considers Ideal Socialism “incorrigibly wrongheaded.” It is “not rescuable.” Moreover, Real Socialism has failed. The decisive factor that caused its failure was “the violation of the rights of workers.” Workers rose up against “the ideology which presumed to speak in their name.” The second factor was “the inefficiency of the economic system,” which was not the result of technical problems but flowed from the violation of rights already mentioned, namely “rights to private initiative, to ownership of property and to freedom in the economic sector.” To these factors the pope adds the misguided attempt by Marxists to understand humans on the basis of economics and class membership alone. Instead of eliminating alienation as was promised, “the historical experience of socialist countries has sadly demonstrated that collectivism does not do away with alienation but rather increases it, adding to it a lack of basic necessities and economic inefficiency.” Underlying everything was “the spiritual void brought about by atheism.”

In the late 19th century, as a result of industrialization and other changes in commerce, politics and ideology, workers suffered under “a yoke little better than that of slavery itself.” This is what impelled Leo XIII to write Rerum Novarum in which he supported the right of workers to organize and to receive a just wage. Marxism also proposed a solution; unfortunately the “remedy proved worse than the sickness.”

Historically, many Christians have viewed capitalism with suspicion if not outright disapproval. (Neither Judaism nor Islam has been as anti-business.) Paul Tillich labeled capitalism “demonic” and said, “Any serious Christian must be a socialist.” Earlier popes also condemned both socialism and capitalism and hoped for a third way. Centesimus Annus is thus a truly revolutionary document.

The rationale for supporting capitalism could be summarized as follows: God is a Creator and humans, being made in the image and likeness of God, are therefore called to be creators, i.e. to participate in the ongoing creative activity of God. Since the earth does not produce its fruit nor yield its riches (e.g. minerals) spontaneously, humans must exert effort to obtain these blessings. This is what work is and hence the transcendent dignity of work and workers and the pope’s contention that all humans are called to work. The ultimate goal of work is to provide a decent life for all members of the human race. Capitalism stimulates creativity and work. It also stimulates initiative, inventiveness, enterprise, diligence, the prudence needed to assess risks, practical wisdom, and other virtues. Capitalism is also the only known economic system that creates wealth. It is, in fact, the economic system that is most in harmony with the biblical understanding of human nature and human destiny.

The capitalism John Paul recommends is not, however, laissez-faire capitalism; it is not the capitalism of rugged individualism, monopolies, unbridled selfishness, or consumerism which he calls “primitive capitalism.” It is a new capitalism that is based on “solidarity,” or what the ancient Greeks called “civic friendship” and what previous popes called “social charity” and “a civilization of love.” The principle of solidarity calls for love and cooperation between rich and poor and urges them to see that “economic development is for the common good and in their common interest.” Solidarity is proposed as an alternative to class struggle and class hatred which “along with distrust and suspicion lay at the heart of socialism.”

In chapter 42 the crucial question comes: “can it perhaps be said that, after the failure of Communism, capitalism is the victorious social system, and that capitalism should be the goal of the countries now making efforts to rebuild their economy and society? Is this the model which ought to be proposed to the countries of the Third World which are searching for the path to true economic and civil progress?” John Paul’s answer is “Yes.” Thus, with the advent of “new capitalism” no religious person in business need have a guilty conscience, and a career as an investment banker or a financial analyst can be seen as a noble and morally serious calling.