Economics and Social Progress

Extract

Though the nature, characteristics and consequences of the economic system we call ‘capitalism’ are so well known as to be taken for granted, yet when we try to frame a definition of the system it is not at all easy. There exists a multitude of definitions of capitalism: the fact that many of these are incomplete or else falsified by subjective interpretations adds to the general confusion.

To begin with, we can say that capitalism is a system; that is to say, it is the realisation in the factual order of an economic doctrine. There is a considerable amount of evidence, both in theory and practice, in support of the position which maintains that the economic doctrine enshrined in capitalism has two essential characteristics. It is based upon private ownership of the means of production and of the goods produced: its raison d’etre, its end or objective, is profit.

This second element—the accumulation of money for its own sake as the sole objective—immediately puts capitalism in conflict with Christian moral teaching. Attempts have been made to explain away this opposition by attributing it to moral failings in individuals by saying it is the capitalist spirit and not capitalism itself which is bad. There will always be individuals who sin against God and against their neighbour by the sin of avarice: these individuals flourish in any economic regime: capitalism is good in itself and must not be blamed for their existence. Such an attitude is completely shattered by Horvath in his famous book on property.