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Baltimore Catholic Campaign For Human Development

Msgr. William F. Burke
(410) 235-5136


Economic Justice for All
Pastoral Letter on Catholic Social Teaching and the U.S. Economy

U. S. Catholic Bishops, 1986
A Pastoral Message


Brothers and Sisters in Christ:

Why We Write

Principal Themes of the Pastoral Letter

A Call to Conversion and Action

Chapter I - The Church and the Future of the U.S. Economy

A. The U.S. Economy Today: Memory and Hope
B. Urgent Problems of Today
C. The Need for Moral Vision

Chapter II - The Christian Vision of Economic Life

A. Biblical Perspectives
     1. Created in God's Image
     2. A People of Covenant
     3. The Reign of God and Justice
     4. Called to be Disciples in Community
     5. Poverty, Riches, and the Challenge of Discipleship
     6. A Community of Hope
     7. A Living Tradition
B. Ethical Norms for Economic Life
     1. The Responsibilities of Social Living
          a. Love and Solidarity
          b. Justice and Participation
          c. Overcoming Marginalization and Powerlessness
     2. Human Rights: The Minimum Conditions for Life in Community
     3. Moral Priorities for the Nation
C. Working for Greater Justice: Persons and Institutions
     1. Working People and Labor Unions
     2. Owners and Managers
     3. Citizens and Government
D. Christian Hope and the Courage to Act

Chapter III - Selected Economic Policy Issues

A. Employment
     1. The Scope and Effects of Unemployment
     2. Unemployment in a Changing Economy
     3. Guidelines for Action
          a. General Economic Policies
          b. Targeted Employment Programs
          c. Examining New Strategies
B. Poverty
     1. The Characteristics of Poverty
          a. Children of Poverty
          b. Women and Poverty
          c. Racial Minorities and Poverty
     2. Economic Inequality
     3. Guidelines for Action
     4. Conclusion
C. Food and Agriculture
     1. U.S. Agriculture -- Past and Present
     2. Guidelines for Action
     3. Policies and Actions
     4. Solidarity in the Farm Community
     5. Conclusion
D. The U.S. Economy and the Developing Nations: Complexity, Challenge, and Choices
     1. The Complexity of Economic Relations in an Interdependent World
     2. The Challenge of Catholic Social Teaching
     3. The Role of the United States in the Global Economy: Constructive Choices
     4. U.S. Responsibility for Reform in the International Economic System
E. Conclusion

Chapter IV - A New American Experiment: Partnership for the Public Good

A. Cooperation within Firms and Industries
B. Local and Regional Cooperation
C. Partnership in the Development of National Policies
D. Cooperation at the International Level

Chapter V - A Commitment to the Future

A. The Christian Vocation in the World Today
     1. Conversion
     2. Worship and Prayer
     3. Call to Holiness in the World
     4. Leisure
B. Challenges to the Church
     1. Education
     2. Supporting the Family
     3. The Church As Economic Actor
C. The Road Ahead
D. Commitment to a Kingdom of Love and Justice

Endnotes from Chapter One
Endnotes from Chapter Two
Endnotes from Chapter Three
Endnotes from Chapter Four
Endnotes from Chapter Five


Brothers and Sisters in Christ:

1. We are believers called to follow Our Lord Jesus Christ and proclaim his Gospel in the midst of a complex and powerful economy. This reality poses both opportunities and responsibilities for Catholics in the United States. Our faith calls us to measure this economy, not by what it produces but also by how it touches human life and whether it protects or undermines the dignity of the human person. Economic decisions have human consequences and moral content; they help or hurt people, strengthen or weaken family life, advance or diminish the quality of justice in our land.

2. This is why we have written Economic Justice for All: A Pastoral Letter on Catholic Social Teaching and the U.S. Economy. This letter is a personal invitation to Catholics to use the resources of our faith, the strength of our economy, and the opportunities of our democracy to shape a society that better protects the dignity and basic rights of our sisters and brothers, both in this land and around the world.

3. This pastoral letter has been a work of careful inquiry, wide consultation, and prayerful discernment. The letter has been greatly enriched by this process of listening and refinement. We offer this introductory pastoral message to Catholics in the United States seeking to live their faith in the marketplace -- in homes, offices, factories, and schools; on farms and ranches; in boardrooms and union halls; in service agencies and legislative chambers. We seek to explain why we wrote the pastoral letter, to introduce its major themes, and to share our hopes for the dialogue and action it might generate.

Why We Write

4. We write to share our teaching, to raise questions, to challenge one another to live our faith in the world. We write as heirs of the biblical prophets who summon us "to do right, and to love goodness, and to walk humbly with your God" (Mi. 6:8). We write as followers of Jesus who told us in the Sermon on the Mount: "Blessed are the poor in spirit .... Blessed are the meek .... Blessed are they who hunger and thirst for righteousness .... You are the salt of the earth .... You are the light of the world" (Mt 5:1-6, 13-14). These words challenge us not only as believers but also as consumers, citizens, workers, and owners. In the parable of the Last Judgment, Jesus said, "For I was hungry and you gave me food, I was thirsty and you gave me drink .... As often as you did it for one of my least brothers, you did it for me" (Mt. 25:35-40). The challenge for us is to discover in our own place and time what it means to be "poor in spirit" and "the salt of the earth" and what it means to serve "the least among us" and to "hunger and thirst for righteousness."

5. Followers of Christ must avoid a tragic separation between faith and everyday life. They can neither shirk their earthly duties nor, as the Second Vatican Council declared, "immerse [them]selves in earthly activities as if these latter were utterly foreign to religion, and religion were nothing more than the fulfillment of acts of worship and the observance of a few moral obligations" (Pastoral Constitution on the Church in the Modern World, no. 43).

6. Economic life raises important social and moral questions for each of us and for the society as a whole. Like family life, economic life is one of the chief areas where we live out our faith, love our neighbor, confront temptation, fulfill God's creative design, and achieve holiness. Our economic activity in factory, field, office, or shop feeds our families -- or feeds our anxieties. It exercises our talents -- or wastes them. It raises our hopes -- or crushes them. IT brings us into cooperation with others -- or sets us at odds. The Second Vatican Council instructs us "to preach the message of Christ in such a way that the light of the Gospel will shine on all activities of the faithful" (Pastoral Constitution, no. 43). In this case, we are trying to look at economic life through the eyes of faith, applying traditional church teaching to the U.S. economy.

7. In our letter, we write as pastors, not public officials. We speak as moral teachers, not economic technicians. We seek not to make some political or ideological point but to lift up the human and ethical dimensions of economic life, aspects too often neglected in public discussion. We bring to this task a dual heritage of Catholic social teaching and traditional American values.

8. As Catholics, we are heirs of a long tradition of thought and action on the moral dimensions of economic activity. The life and words of Jesus and the teaching of his Church call us to serve those in need and to work actively for social and economic justice. As a community of believers, we know that our faith is tested by the quality of justice among us, that we can best measure our life together by how the poor and the vulnerable are treated. This is not a new concern for us. It is as old as the Hebrew prophets, as compelling as the Sermon on the Mount, and as current as the powerful voice of Pope John Paul II defending the dignity of the human person.

9. As Americans, we are grateful for the gift of freedom and committed to the dream of "liberty and justice for all." This nation, blessed with extraordinary resources, has provided an unprecedented standard of living for millions of people. We are proud of the strength, productivity, and creativity of our economy, but we also remember those who have been left behind in our progress. We believe that we honor our history best by working for the day when all our sisters and brothers share adequately in the American dream.

10. As bishops, in proclaiming the Gospel for these times we also manage institutions, balance budgets, meet payrolls. In this we see the human face of our economy. We feel the hurts and hopes of our people. We feel the pain of our sisters and brothers who are poor, unemployed, homeless, living on the edge. The poor and vulnerable are on our doorsteps, in our parishes, in our service agencies, and in our shelters. We see too much hunger and injustice, too much suffering and despair, both in our country and around the world.

11. As pastors, we also see the decency, generosity, and vulnerability of our people. We see the struggles of ordinary families to make ends meet and to provide a better future for their children. We know the desire of managers, professionals, and business people to shape what they do by what they believe. It is the faith, good will, and generosity of our people that gives us hope as we write this letter.

Principal Themes of the Pastoral Letter

12. The pastoral letter is not a blueprint for the American economy. It does not embrace any particular theory of how the economy works, nor does it attempt to resolve disputes between different schools of economic thought. Instead, our letter turns to Scripture and to the social teaching of the Church. There, we discover what our economic life must serve, what standards it must meet. Let us examine some of these basic moral principles.

13. Every economic decision and institution must be judged in light of whether it protects or undermines the dignity of the human person. The pastoral letter begins with the human person. We believe the person is sacred -- the clearest reflection of God among us. Human dignity comes from God, not from nationality, race, sex, economic status, or any human accomplishment. We judge any economic system by what it does for and to people and by how it permits all to participate in it. The economy should serve people, not the other way around.

14. Human dignity can be realized and protected only in community. In our teaching, the human person is not only sacred but social. How we organize our society -- in economics and politics, in law and policy -- directly affects human dignity and the capacity of individuals to grow in community. The obligation to "love our neighbor" has an individual dimension, but it also requires a broader social commitment to the common good. We have many partial ways to measure and debate the health of our economy: Gross National Product, per capita income, stock market prices, and so forth. The Christian vision of economic life looks beyond them all and asks, Does economic life enhance or threaten our life together as a community?

15. All people have a right to participate in the economic life of society. Basic justice demands that people be assured a minimum level of participation in the economy. It is wrong for a person or a group to be excluded unfairly or to be unable to participate or contribute to the economy. For example, people who are both able and willing, but cannot get a job are deprived of the participation that is so vital to human development. For, it is through employment that most individuals and families meet their material needs, exercise their talents, and have an opportunity to contribute to the larger community. Such participation has a special significance in our tradition because we believe that it is a means by which we join in carrying forward God's creative activity.

16. All members of society have a special obligation to the poor and vulnerable. From the Scriptures and church teaching, we learn that the justice of a society is tested by the treatment of the poor. The justice that was the sign of God's covenant with Israel was measured by how the poor and unprotected -- the widow, the orphan, and the stranger -- were treated. The kingdom that Jesus proclaimed in his word and ministry excludes no one. Throughout Israel's history and in early Christianity, the poor are agents of God's transforming power. "The Spirit of the Lord is upon me, therefore he has anointed me. He has sent me to bring glad tidings to the poor" (Lk. 4:18). This was Jesus' first public utterance. Jesus takes the side of those most in need. In the Last Judgment, so dramatically described in St. Matthew's Gospel, we are told that we will be judged according to how we respond to the hungry, the thirsty, the naked, the stranger. As followers of Christ, we are challenged to make a fundamental "option for the poor" -- to speak for the voiceless, to defend the defenseless, to assess life styles, policies, and social institutions in terms of their impact on the poor. This "option for the poor" does not mean pitting one group against another, but rather, strengthening the whole community by assisting those who are the most vulnerable. As Christians, we are called to respond to the needs of all our brothers and sisters, but those with the greatest needs require the greatest response.

17. Human rights are the minimum conditions for life in community. In Catholic teaching, human rights include not only civil and political rights but also economic rights. As Pope John XXIII declared, "all people have a right to life, food, clothing, shelter, rest, medical care, education, and employment." These means that when people are without a chance to earn a living, and must go hungry and homeless, they are being denied basic rights. Society must ensure that these rights are protected. In this way, we will ensure that the minimum conditions of economic justice are met for all our sisters and brothers.

18. Society as a whole, acting through public and private institutions, has the moral responsibility to enhance human dignity and protect human rights. In addition to the clear responsibility of private institutions, government has an essential responsibility in this area. This does not mean that government has the primary or exclusive role, but it does have a positive moral responsibility in safeguarding human rights and ensuring that the minimum conditions of human dignity are met for all. In a democracy, government is a means by which we can act together to protect what is important to us and to promote our common values.

19. These six moral principles are not the only ones presented in the pastoral letter, but they give an overview of the moral vision that we are trying to share. This vision of economic life cannot exist in a vacuum; it must be translated into concrete measures. Our pastoral letter spells out some specific applications of Catholic moral principles. We call for a new national commitment to full employment. We say it is a social and moral scandal that one of every seven Americans is poor, and we call for concerted efforts to eradicate poverty. The fulfillment of the basic needs of the poor is of the highest priority. We urge that all economic policies be evaluated in light of their impact on the life and stability of the family. We support measures to halt the loss of family farms and to resist the growing concentration in the ownership of agricultural resources. We specify ways in which the United States can do far more to relieve the plight of poor nations and assist in their development. We also reaffirm church teaching on the rights of workers, collective bargaining, private property, subsidiarity, and equal opportunity.

20. We believe that the recommendations in our letter are reasonable and balanced. In analyzing the economy, we reject ideological extremes and start from the fact that ours is a "mixed" economy, the product of a long history of reform and adjustment. We know that some of our specific recommendations are controversial. As bishops, we do not claim to make these prudential judgments with the same kind of authority that marks our declarations of principle. But, we feel obliged to teach by example how Christians can undertake concrete analysis and make specific judgments on economic issues. The Church's teachings cannot be left at the level of appealing generalities.

21. In the pastoral letter, we suggest that the time has come for a "New American Experiment" -- to implement economic rights, to broaden the sharing of economic power, and to make economic decisions more accountable to the common good. This experiment can create new structures of economic partnership and participation within firms at the regional level, for the whole nation, and across borders.

22. Of course, there are many aspects of the economy the letter does not touch, and there are basic questions it leaves to further exploration. There are also many specific points on which men and women of good will may disagree. We look for a fruitful exchange among differing viewpoints. We pray only that all will take to heart the urgency of our concerns; that together we will test our views by the Gospel and the Church's teaching; and that we will listen to other voices in a spirit of mutual respect and open dialogue.

A Call to Conversion and Action

23. We should not be surprised if we find Catholic social teaching to be demanding. The Gospel is demanding. We are always in need of conversion, of a change of heart. We are richly blessed, and as St. Paul assures us, we are destined for glory. yet, it is also true that we are sinners; that we are not always wise or loving or just; that, for all our amazing possibilities, we are incompletely born, wary of life, and hemmed in by fears and empty routines. We are unable to entrust ourselves fully to the living God, and so we seek substituted forms of security in material things, in power, in indifference, in popularity, in pleasure. The Scriptures warn us that these things can become forms of idolatry. We know that, at times, in order to remain truly a community of Jesus' disciples, we will have to say "no" to certain aspects of our culture, to certain trends and ways of acting that are opposed to a life of faith, love and justice. 23Changes in our hearts lead naturally to a desire to change how we act. With what care, human kindness, and justice do I conduct myself at work? How will my economic decisions to buy, sell, invest, divest, hire, or fire serve human dignity and the common good? In what career can I best exercise my talents so as to fill the world with the Spirit of Christ? How do my economic choices contribute to the strength of my family and community, to the values of my children, to a sensitivity to those in need? In this consumer society, how can I develop a healthy detachment from things and avoid the temptation to assess who I am by what I have? How do I strike a balance between labor and leisure that enlarges my capacity for friendships, for family life, for community? What government policies should I support to attain the well-being of all, especially the poor and vulnerable?

24. The answers to such questions are not always clear -- or easy to live out. But, conversion is a lifelong process. And, it is not undertaken alone. It occurs with the support of the whole believing community, through baptism, common prayer, and our daily efforts, large and small, on behalf of justice. As a Church, we must be people after God's own heart, bonded by the Spirit, sustaining one another in love, setting our hearts on God's kingdom, committing ourselves to solidarity with those who suffer, working for peace and justice, acting as a sign of Christ's love and justice in the world. 24The Church cannot redeem the world from the deadening effects of sin and injustice unless it is working to remove sin and injustice in its own life and institutions. All of us must help the Church to practice in its own life what it preaches to others about economic justice and cooperation.

25. The challenge of this pastoral letter is not merely to think differently, but also to act differently. A renewal of economic life depends on the conscious choices and commitments of individual believers who practice their faith in the world. The road to holiness for most of us lies in our secular vocations. We need a spirituality that calls forth and supports lay initiative and witness not just in our churches but also in business, in the labor movement, in the professions, in education, and in public life. Our faith is not just a weekend obligation, a mystery to be celebrated around the altar on Sunday. It is a pervasive reality to be practiced every day in homes, offices, factories, schools, and businesses across our land. We cannot separate what we believe from how we act in the marketplace and the broader community, for this is where we make our primary contribution to the pursuit of economic justice.

26. We ask each of you to read the pastoral letter, to study it, to pray about it, and match it with your own experience. We ask you to join with us in service to those in need. Let us reach out personally to the hungry and the homeless, to the poor and the powerless, and to the troubled and the vulnerable. In serving them, we serve Christ. Our service efforts cannot substitute for just and compassionate public policies, but they can help us practice what we preach about human life and human dignity.

27. The pursuit of economic justice takes believers into the public arena, testing the policies of government by the principles of our teaching. We ask you to become more informed and active citizens, using your voices and votes to speak for the voiceless, to defend the poor and the vulnerable and to advance the common good. We are called to shape a constituency of conscience, measuring every policy by how it touches the least, the lost, and the left-out among us. This letter calls us to conversion and common action, to new forms of stewardship, service, and citizenship.

28. The completion of a letter such as this is but the beginning of a long process of education, discussion and action. By faith and baptism, we are fashioned into new creatures, filled with the Holy Spirit and with a love that compels us to seek out a new profound relationship with God, with the human family, and with all created things. Jesus has entered our history as God's anointed son who announces coming of God's kingdom, a kingdom of justice and peace and freedom. And, what Jesus proclaims, he embodies in his actions. His ministry reveals that the reign of God is something more powerful than evil, injustice, and the hardness of hearts. Through his crucifixion and resurrection, he reveals that God's love is ultimately victorious over all suffering, all horror, all meaninglessness, and even over the mystery of death. Thus, we proclaim words of hope and assurance to all who suffer and are in need.

29. We believe that the Christian view of live, including economic life, can transform the lives of individuals, families, schools, and our whole culture. We believe that with your prayers, reflection, service and action, our economy can be shaped so that human dignity prospers and the human person is served. This is the unfinished work of our nation. This is the challenge of our faith.


Chapter I - The Church and the Future of the U.S. Economy

1. Every perspective on economic life that is human, moral, and Christian must be shaped by three questions: What does the economy do for people? What does it do to people? And how do people participate in it? The economy is a human reality: men and women working together to develop and care for the whole of God's creation. All this work must serve the material and spiritual well-being of people. It influences what people hope for themselves and their loved ones. It affects the way they act together in society. It influences their very faith in God [1].

2. The Second Vatican Council declared that "the joys and hopes, the griefs and anxieties of the people of this age, especially those who are poor or in any way afflicted, these too are the joys and hopes, the griefs and anxieties of the followers of Christ" [2]. There are many signs of hope in U.S. economic life today:

3. These signs of hope are not the whole story. There have been failures -- some of them massive and ugly:

4. And beyond our own shores, the reality of 800 million people living in absolute poverty and 450 million malnourished or facing starvation casts an ominous shadow over all these hopes and problems at home.

5. Anyone who sees all this will understand our concern as pastors and bishops. People shape the economy and in turn are shaped by it. Economic arrangements can be sources of fulfillment, of hope, of community -- or of frustration, isolation, and even despair. They teach values -- or vices -- and day by day help mold our characters. They affect the quality of people's lives; at the extreme even determining whether people live or die. Serious economic choices go beyond purely technical issues to fundamental questions of value and human purpose [3]. We believe that in facing these questions the Christian religious and moral tradition can make an important contribution.

A. The U.S. Economy Today: Memory and Hope

6. The United States is among the most economically powerful nations on earth. In its short history the U.S. economy has grown to provide an unprecedented standard of living for most of its people. The nation has created productive work for millions of immigrants and enabled them to broaden their freedoms, improve their families' quality of life, and contribute to the building of a great nation. Those who came to this country from other lands often understood their new lives in the light of biblical faith. They though of themselves as entering a promised land of political freedom and economic opportunity. The United States is a land of vast natural resources and fertile soil. It has encouraged citizens to undertake bold ventures. Through hard work, self-sacrifice, and cooperation, families have flourished; towns, cities and a powerful nation have been created.

7. But we should recall this history with sober humility. The American experiment in social, political, and economic life has involved serious conflict and suffering. our nation was born in the face of injustice to native Americans, and its independence was paid for with the blood of revolution. Slavery stained the commercial life of the land through its first two hundred and fifty years and was ended only by a violent civil war. The establishment of women's suffrage, the protection of industrial workers, the elimination of child labor, the response to the Great Depression of the 1930s, and the civil rights movement of the 1960s all involved a sustained struggle to transform the political and economic institutions of the nation.

8. The U.S. value system emphasizes economic freedom. It also recognizes that the market is limited by fundamental human rights. Some things are never to be bought or sold [4]. This conviction has prompted positive steps to modify the operation of the market when it harms vulnerable members of society. Labor unions help workers resist exploitation. Through their government, the people of the United States have provided support for education, access to food, unemployment compensation, security in old age, and protection of the environment. The market system contributes to the success of the U.S. economy, but so do many efforts to forge economic institutions and public policies that enable all to share in the riches of the nation. The country's economy has been build through a creative struggle; entrepreneurs, business people, workers, unions, consumers, and government have all played essential roles.

9. The task of the United States today is as demanding as that faced by our forebears. Abraham Lincoln's words at Gettysburg are a reminder that complacency today would be a betrayal of our nation's history: "It is for us, the living, rather to be dedicated here to the unfinished work ... they have thus far nobly advanced" [5]. There is unfinished business in the American experiment in freedom and justice for all.

B. Urgent Problems of Today

10. The preeminent role of the United States in an increasingly interdependent global economy is a central sign of our times [6]. The United States is still the world's economic giant. Decisions made here have immediate effects in other countries; decisions made abroad have immediate consequences for steelworkers in Pittsburgh, oil company employees in Houston, and farmers in Iowa. U.S. economic growth is vitally dependent on resources from other countries and on their purchases of our goods and services. Many jobs in U.S. industry and agriculture depend on our ability to export manufactured goods and food.

11. In some industries the mobility of capital and technology makes wages the main variable in the cost of production. Overseas competitors with the same technology but with wage rates as low as one-tenth of ours put enormous pressure on U.S. firms to cut wages, relocate abroad, or close. U.S. workers and their communities should not be expected to bear these burdens alone.

12. All people on this globe share a common ecological environment that is under increasing pressure. Depletion of soil, water and other natural resources endangers the future. Pollution of air and water threatens the delicate balance of the biosphere on which future generations will depend [7]. The resources of the earth have been created by God for the benefit of all, and we who are alive today hold them in trust. This is a challenge to develop a new ecological ethic, that will help shape a future that is both just and sustainable.

13. In short, nations separated by geography, culture, and ideology are linked in a complex commercial, financial, technological, and environmental network. These links have two direct consequences. First, they create hope for a new form of community among peoples, one build on dignity, solidarity and justice. Second, this rising global awareness calls for greater attention to the stark inequities across countries in the standards of living and control of resources. We must not look at the welfare of U.S. citizens as the only good to be sought. Nor may we overlook the disparities of power in the relationships between this nation and the developing countries. The United States is the major supplier of food to other countries, a major source of arms sales to developing nations, and a powerful influence in multilateral institutions such as the International Monetary Fund, the World Bank, and the United Nations. What Americans see as a growing interdependence is regarded by many in the less developed countries as a pattern of domination and dependence.

14. Within this larger international setting, there are also a number of challenges to the domestic economy that call for creativity and courage. The promise of the "American dream" -- freedom for all persons to develop their God-given talents to the full -- remains unfulfilled for millions in the United States today.

15. Several areas of U.S. economic life demand special attention. Unemployment is the most basic. Despite the large number of new jobs the U.S. economy has generated in the past decade, approximately 8 million people seeking work in this country are unable to find it, and many more are so discouraged they have stopped looking [8]. Over the past two decades the nation has come to tolerate an increasing level of unemployment. The 6 to 7 percent rate deemed acceptable today would have been intolerable twenty years ago. Among the unemployed are a disproportionate number of blacks, Hispanics, young people, or women who are the sole support of their families [9]. Some cities and states have many more unemployed persons than others as a result of economic forces that have little to do with people's desire to work. Unemployment is a tragedy no matter whom it strikes, but the tragedy is compounded by the unequal and unfair way it is distributed in our society.

16. Harsh poverty plagues our country despite its great wealth. More than 33 million Americans are poor; by any reasonable standard another 20-30 million are needy. Poverty is increasing in the United States, not decreasing [10]. For a people who believe in "progress," this should be cause for alarm. These burdens fall most heavily on blacks, Hispanics, and Native Americans. Even more disturbing is the large increase in the number of women and children living in poverty. Today children are the largest single group among the nation's poor. This tragic fact seriously threatens the nation's future. That so many people are poor in a nation as rich as ours is a social and moral scandal that we cannot ignore.

17. Many working people and middle-class Americans live dangerously close to poverty. A rising number of families must rely on the wages of two or even three members just to get by. From 1968 to 1978 nearly a quarter of the U.S. population was in poverty part of the time and received welfare benefits in at least one year [11]. The loss of a job, illness, or the breakup of a marriage may be all it takes to push people into poverty.

18. The lack of a mutually supportive relation between family life and economic life is one of the most serious problems facing the United States today [12]. The economic and cultural strength of the nation is directly linked to the stability and health of its families [13]. When families thrive, spouses contribute to the common good through their work at home, in the community, and in their jobs; and children develop a sense of their own worth and of their responsibility to serve others. When families are weak or break down entirely, the dignity of parents and children is threatened. High cultural and economic costs are inflicted on society at large.

19. The precarious economic situation of so many people and so many families calls for examination of U.S. economic arrangements. Christian conviction and the American promise of liberty and justice for all give the poor and the vulnerable a special claim on the nation's concern. They also challenge all members of the Church to help build a more just society.

20. The investment of human creativity and material resources in the production of the weapons of war makes these economic problems even more difficult to solve. Defense Department expenditures in the United States are almost $300 billion per year. The rivalry and mutual fear between superpowers divert into projects that threaten death, minds, and money that could better human life. Developing countries engage in arms races that they can ill afford, often with the encouragement of the superpowers. Some of the poorest countries of the world use scarce resources to buy planes, guns and other weapons when they lack the food, education and healthcare their people need. Defense policies must be evaluated and assessed, in light of their real contribution to freedom, justice and peace for the citizens of our own and other nations. We have developed a perspective on these multiple moral concerns in our 1983 pastoral letter, The Challenge of Peace: God's Promise and Our Response [14]. When weapons or strategies make questionable contributions to security, peace, and justice and will also be very expensive, spending priorities should be redirected to more pressing social needs [15].

21. Many other social and economic challenges require careful analysis: the movement of many industries from the Snowbelt to the Sunbelt, the federal deficit and interest rates, corporate mergers and takeovers, the effects of new technologies such as robotics and information systems in U.S. industry, immigration policy, growing international traffic in drugs, and the trade imbalance. All of these issues do not provide a complete portrait of the economy. Rather they are symptoms of more fundamental currents shaping U.S. economic life today: the struggle to find meaning and value in human work, efforts to support individual freedom in the context of renewed social cooperation, the urgent need to create equitable forms of global interdependence in a world now marked by extreme inequality. These deeper currents are cultural and moral in content. They show that the long-range challenges facing the nation call for sustained reflection on the values that guide economic choices and are embodied in economic institutions. Such explicit reflection on the ethical content of economic choices and policies most become an integral part of the way Christians relate religious belief to the realities of everyday life. In this way, the "split between the faith which many profess and their daily lives" [16], which Vatican II counted among the more serious errors of the modern age, will begin to be bridged.

C. The Need for Moral Vision

22. Sustaining a common culture and a common commitment to moral values is not easy in our world. Modern economic life is based on a division of labor into specialized jobs and professions. Since the industrial revolution, people have had to define themselves and their work ever more narrowly to find a niche in the economy. The benefits of this are evident in the satisfaction many people derive from contributing their specialized skills to society. But the costs are social fragmentation, a decline in seeing how one's work serves the whole community, and an increased emphasis on personal goals and private interests [17]. This is vividly clear in discussions of economic justice. Here it is often difficult to find a common ground among people with different backgrounds and concerns. One of our chief hopes in writing this letter is to encourage and contribute to the development of this common ground [18].

23. Strengthening common moral vision is essential if the economy is to serve all people more fairly. Many middle-class Americans feel themselves in the grip of economic demands and cultural pressures that go far beyond the individual family's capacity to cope. Without constructive guidance in making decisions with serious moral implications, men and women who hold positions of responsibility in corporations or government find their duties exacting a heavy price. We want these reflections to help them contribute to a more just economy.

24. The quality of the national discussion about our economic future will affect the poor most of all, in this country and throughout the world. The life and dignity of millions of men, women and children hang in the balance. Decisions must be judged in light of what they do for the poor, what they do to the poor, and what they enable the poor to do for themselves. The fundamental moral criterion for all economic decisions, policies, and institutions is this: They must be at the service of all people, especially the poor.

25. This letter is based on a long tradition of Catholic social thought, rooted in the Bible and developed over the past century by the popes and the Second Vatican Council in response to modern economic conditions. This tradition insists that human dignity, realized in community with others and with the whole of God's creation is the norm against which every social institution must be measured [19].

26. This teaching has a rich history. It is also dynamic and growing [20]. Pope Paul VI insisted that all Christian communities have the responsibility "to analyze with objectivity the situation which is proper to their own country, to shed on it the light of the Gospel's unalterable words and to draw principles of reflection, norms of judgment, and directives for action from the social teaching of the Church" [21]. Therefore, we build on the past work of our own bishops' conference, including the 1919 Program of Social Reconstruction and other pastoral letters [22]. In addition many people from Catholic, Protestant, and Jewish communities, in academic, business or political life and from many different economic backgrounds have also provided guidance. We want to make the legacy of Christian social thought a living, gorging resource that can inspire hope and help shape the future.

27. We write then, first of all to provide guidance for members of our own Church as they seek to form their consciences about economic matters. No one may claim the name of Christian and be comfortable in the face of hunger, homelessness, insecurity, and injustice found in this country and the world. At the same time, we want to add our voice to the public debate about the directions in which the U.S. economy should be moving. We seek the cooperation and support of those who do not share our faith or tradition. The common bond of humanity that links all persons is the source of our belief that the country can attain a renewed moral vision. The questions are basic and the answers are often elusive; they challenge us to serious and sustained attention to economic justice.


Chapter II - The Christian Vision of Economic Life

28. The basis for all that the Church believes about the moral dimensions of economic life is its vision of the transcendent worth -- the sacredness -- of human beings. The dignity of the human person, realized in community with others, is the criterion against which all aspects of economic life must be measured [1]. All human beings, therefore, are ends to be served by the institutions that make up the economy, not means to be exploited for more narrowly defined goals. Human personhood must be respected with a reverence that is religious. When we deal with each other, we should do so with the sense of awe that arises in the presence of something holy and sacred. For that is what human beings are: we are created in the image of God (Gn 1:27). Similarly, all economic institutions must support the bonds of community and solidarity that are essential to the dignity of person.s Wherever our economic arrangements fail to conform to the demands of human dignity lived in community, they must be questioned and transformed. These convictions have a biblical basis. They are also supported by a long tradition of theological and philosophical reflection and through the reasoned analysis of human experience by contemporary men and women.

29. In presenting the Christian moral vision, we turn first to the Scriptures for guidance. Though our comments are necessarily selective, we hope that pastors and other church members will become personally engaged with the biblical texts. The Scriptures contain many passages that speak directly of economic life. We must also attend to the Bible's deeper vision of God, of the purpose of creation, and of the dignity of human life in society. Along with other churches and ecclesial communities who are "strengthened by the grace of Baptism and the hearing of God's Word," we strive to become faithful hearers and doers of the word [2]. We also claim the Hebrew Scriptures as common heritage with our Jewish brothers and sisters, and we join with them in the quest for an economic life worthy of the divine revelation we share.

A. Biblical Perspectives

30. The fundamental conviction of our faith is that human life is fulfilled in the knowledge and love of the living God in communion with others. The Sacred Scriptures offer guidance so that men and women may enter into full communion with God and with each other, and witness to God's saving acts. We discover there is a God who is creator of heaven and earth, and of the human family. Though our first parents reject the God who created them, God does not abandon them, but from Abraham and Sarah forms a people of promise. When this people is enslaved in an alien land, God delivers them and makes a covenant with them in which they are summoned to be faithful to the torah or sacred teaching. The focal points of Israel's faith -- creation, covenant, and community -- provide a foundation for reflection on issues of economic and social justice.

1. Created in God's Image

31. After the exile, when Israel combined its traditions into a written torah, it prefaced its history as a people with the story of the creation of all peoples and of the whole world by the same God who created them as a nation (Gn 1-11). God is the creator of heaven and earth (Gn 14:19-22; Is 40:28; 45:18); creation proclaims God's glory (Ps 89:6-12) and is "very good" (Gn 1:31). Fruitful harvests, bountiful flocks, a loving family are God's blessings on those who heed God's word. Such is the joyful refrain that echoes throughout the Bible. One legacy of this theology of creation is the conviction that no dimension of human creation lies beyond God's care and concern. God is present to creation, and creative engagement with God's handiwork is itself reverence for God.

32. At the summit of creation stands the creation of man and woman, made in God's image (Gn 1:26-27). As such every human being possesses an inalienable dignity that stamps human existence prior to any division into races or nations and prior to human labor and human achievement (Gn 4-11). Men and women are also to share in the creative activity of God. They are to be fruitful, to care for the earth (Gn 2:15), and to have "dominion" over it (Gn 1:28), which means they are "to govern the world in holiness and justice and to render judgment in integrity of heart" (Wis 9:3). Creation is a gift; women and men are to be faithful stewards in caring for the earth. They can justly consider that by their labor they are unfolding the Creator's work [3].

33. The narratives of Genesis 1-11 also portray the origin of the strife and suffering that mar the world. Though created to enjoy intimacy with God and the fruits of the earth, Adam and Eve disrupted God's design by trying to live independently of God through a denial of their status as creatures. They turned away from God and gave to God's creation the obedience due to God alone. For this reason the prime sin in so much of the biblical tradition is idolatry: service of the creature rather than of the creator (Rom 1:25), and the attempt to overturn creation by making Do in human likeness. The Bible castigates not only the worship of idols, but also manifestations of idolatry, such as the quest for unrestrained power and the desire for great wealth (Is 40:12-20; 44:1-20; Wis 13:1-14:31; Col 3:5, "the greed that is idolatry"). The sin of our first parents had other consequences as well. Alienation from God pits brother against brother (Gn 4:8-16), in a cycle of war and vengeance (Gn 4:22-23). Sin and evil abound, and the primeval history culminates with another assault on the heavens, this time ending in a babble of tongues scattered over the face of the earth (Gn 11:1-0). Sin simultaneously alienates human beings from God and shatters the solidarity of the human community. Yet this reign of sin is not the final word. The primeval history is followed by the call of Abraham, a man of faith, who was to be the bearer of the promise to many nations (Gn 12:1-4). Throughout the Bible we find this struggle between sin and repentance. God's judgment on evil is followed by God's seeking out a sinful people.

34. The biblical vision of creation has provided one of the most enduring legacies of Church teaching. To stand before God as the creator is to respect God's creation, both the world of nature and of human history. From the patristic period to the present, the church has affirmed that misuse of the world's resources or appropriation of them by a minority of the world's population betrays the gift of creation since "whatever belongs to god belongs to all" [4].

2. A People of Covenant

35. When the people of Israel, our forerunners in faith, gathered in thanksgiving to renew their covenant (Jos 24:1-15), they recalled the gracious deeds of God (Dt 6:20-25; 26:5-11). When they lived as aliens in a strange land and experienced oppression and slavery, they cried out. The Lord, the God of their ancestors, heard their cries, knew their afflictions, and came to deliver them (Ex 3:7-8). By leading them out of Egypt, God created a people that was to be the Lord's very own (Jer 24:7; Hos 2:25). They were to imitate God by treating the alien and the slave in their midst as God had treated them (Ex 22:20-22; Jer 34:8-14).

36. In the midst of this saving history stands the covenant at Sinai (Ex 19-24). It begins with an account of what God has done for the people (Ex 19:1-6; cf Jos 24:1-13) and includes from God's side a promise of steadfast love (hesed) and faithfulness ('emeth, Ex 34:5-7). The people are summoned to ratify this covenant by faithfully worshiping God alone and by directing their lives according to God's will, which was made explicit in Israel's great legal codes such as the Decalogue (Ex 20:1-17) and the Book of the Covenant (Ex 20:22-23:33). Far from being an arbitrary restriction on the life of the people, these codes made life in community possible [5]. The specific laws of the covenant protect human life and property, demand respect for parents and the spouses and children of one's neighbor, and manifest a special concern for the vulnerable members of the community: widows, orphans, the poor, and strangers in the land. Laws such as that for the Sabbath year when the land was left fallow (Ex 23:11; Lv 25:1-7) and for the year of release of debts (Dt 15:1-11) summoned people to respect the land as God's gift and reminded Israel that as a people freed by God from bondage they were to be concerned for the poor and oppressed in their midst. Every fiftieth year a jubilee was proclaimed as a year of "liberty throughout the land" and property was to be restored to its original owners (LV 25:8-17, cf Is 61:1-2; Lk 4:18-19)[6]. The codes of Israel reflect the norms of the covenant: reciprocal responsibility, mercy, and truthfulness. They embody a life in freedom from oppression: worship of the One God, rejection of idolatry, mutual respect among people, care and protection for every member of the social body. Being free and being a co-responsible community are God's intentions for us.

37. When the people turn away from the living God to serve idols and no longer heed the commands of the covenant, God sends prophets to recall his saving deeds and to summon them to return to the one who betrothed them "in right and in justice, in love and in mercy" (Hos 2:21). The substance of prophetic faith is proclaimed by Micah: "to do justice, and to love kindness, and to walk humbly with your God" (Mi 6:8, RSV). Biblical faith in general, and prophetic faith especially, insist that fidelity to the covenant joins obedience to God with reverence and concern for the neighbor. The biblical terms which best summarize this double dimension of Israel's faith are sedaqah, justice (also translated as righteousness), and mishpat (right judgment or justice embodied in a concrete act or deed). The biblical understanding of justice gives a fundamental perspective to our reflections on social and economic justice [7].

38. God is described as a "God of justice" (Is 30:18) who loves justice (Is 61:8, cf. Ps 11:7; 33:5; 37:28: 99:4) and delights in it (Jer 9:23). God demands justice from the whole people (Dt 16:20) and executes justice for the needy (Ps 140:13). Central to the biblical presentation of justice is that the justice of a community is measured by its treatment of the powerless in society, most often described as the widow, the orphan, the poor, and the stranger (non-Israelite) in the land. The Law, the Prophets, and the Wisdom literature of the Old Testament all show deep concern for the proper treatment of such people [8]. What these groups of people have in common is their vulnerability and lack of power. They are often alone and have no protector or advocate. Therefore, it is God who hears their cries (Ps 109:21; 113:7), and the king who is God's anointed is commanded to have special concern for them.

39. Justice has many nuances [9]. Fundamentally, it suggests a sense of what is right or of what should happen. For example, paths are just when they bring you to your destination (Gn 24:48; Ps 23:3), and laws are just when they create harmony within the community, as Isaiah says: "Justice will bring about peace; right will produce calm and security" (Is 32:17). God is "just" by acting as God should, coming to the people's aid and summoning them to conversion when they stray. People are summoned to be "just," that is, to be in a proper relation to God, by observing God's laws which form them into a faithful community. Biblical justice is more comprehensive than subsequent philosophical definitions. It is not concerned with a strict definition of rights and duties, but with the rightness of the human condition before God and within society. Nor is justice opposed to love; rather, it is both a manifestation of love and a condition for love to grow [10]. Because God loves Israel, he rescues them from oppression and summons them to be a people that "does justice" and loves kindness. The quest for justice arises from loving gratitude for the saving acts of God and manifests itself in wholehearted love of God and neighbor.

40. These perspectives provide the foundation for a biblical vision of economic justice. Every human person is created as an image of God, and the denial of dignity to a person is a blot on this image. Creation is a gift to all men and women, not to be appropriated for the benefit of a few; its beauty is an object of joy and reverence. The same God who came to the aid of an oppressed people and formed them into a covenant community continues to hear the cries of the oppressed and to create communities which are responsive to God's word. God's love and life are present when people can live in a community of faith and hope. These cardinal points of faith of Israel also furnish the religious context for understanding the saving action of God in the life and teachings of Jesus.

3. The Reign of God and Justice

41. Jesus enters human history as God's anointed son who announces the nearness of the reign of God (Mk 1:9-14). This proclamation summons us to acknowledge God as creator and covenant partner and challenges us to seek ways in which God's revelation of the dignity and destiny of all creation might become incarnate in history. It is not simply the promise of the future victory of God over sin and evil, but that this victory has already begun -- in the life and teaching of Jesus.

42. What Jesus proclaims by word, he enacts in his ministry. He resists temptations of power and prestige, follows his Father's will, and teaches us to pray that it be accomplished on earth. He warns against attempts to "lay up treasures on earth" (Mt 6:19) and exhorts his followers not to be anxious about material goods but rather to seek first God's reign and God's justice (Mt 6:25-33). His mighty works symbolize that the reign of God is more powerful than evil, sickness, and the hardness of the human heart. He offers God's loving mercy to sinners (Mk 2:17), takes up the cause of those who suffered religious and social discrimination (Lk 7:36-50; 15:1-2), and attacks the use of religion to avoid the demands of charity and justice (Mk 7:9-13; Mt 23:23).

43. When asked what was the greatest commandment, Jesus quoted the age-old Jewish affirmation of faith that God alone is One and to be loved with the whole heart, mind, and soul (Dt 6:4-5) and immediately adds: "You shall love your neighbor as yourself" (Lv 19:18, Mk 12:28-34). This dual command of love that is at the basis of all Christian morality is illustrated in the Gospel of Luke by the parable of a Samaritan who interrupts his journey to come to the aid of a dying man (Lk 10:29-37). Unlike the other wayfarers who look on the man and pass by, the Samaritan "was moved with compassion at the sight"; he stops, tends the wounded man, and takes him to a place of safety. In this parable compassion is the bridge between mere seeing and action: love is made real through effective action [11].

44. Near the end of his life, Jesus offers a vivid picture of the last judgment (Mt 25:31-46). All the nations of the world will be assembled and will be divided into those blessed who are welcomed into God's kingdom or those cursed who are sent to eternal punishment. The blessed are those who fed the hungry, gave drink to the thirsty, welcomed the stranger, clothed the naked, and visited the sick and imprisoned; the cursed are those who neglected these works of mercy and love. Neither the blessed nor the cursed are astounded that they are judged by the Son of Man, nor that the judgment is rendered according to the works of charity. The shock comes when they find that in neglecting the poor, the outcast, and the oppressed, they were rejecting Jesus himself. Jesus who came as "Emmanuel" (God with us, Mt 1:23) and who promises to be with his people until the end of the age (Mt 28:20) is hidden in those most in need; to reject them is to reject God made manifest in history.

4. Called to be Disciples in Community

45. Jesus summoned his first followers to a change of heart and to take on the yoke of God's reign (Mk 1:14-15; Mt 11:29). They are to be the nucleus of the community which will continue the work of proclaiming and building God's kingdom through the centuries. As Jesus called the first disciples in the midst of their everyday occupations of fishing and tax collecting; so he again calls people in every age in the home, in the workplace, and in the marketplace.

46. The Church is, as Pope John Paul II reminded us, "a community of disciples" in which "we must see first and foremost Christ saying to each member of the community: follow me" [12]. To be a Christian is to join with others in responding to this personal call and in learning the meaning of Christ's life. It is to be sustained by that loving intimacy with the Father that Jesus experienced in his work, in his prayer, and in his suffering.

47. Discipleship involves imitating the pattern of Jesus' life by openness to God's will in the service of others (Mk 10:42-45). Disciples are also called to follow him on the way of the cross, and to heed his call that those who lose their lives for the sake of the Gospel will save them (Mk 8:34-35). Jesus' death is an example of that greater love which lays down one's life for others (cf. Jn 15:12-18). It is a model for those who suffer persecution for the sake of justice (Mt 5:10). The death of Jesus was not the end of his power and presence, for he was raised up by the power of God. Nor did it mark the end of the disciples' union with him. After Jesus had appeared to them and when they received the gift of the Spirit (Acts 2:1-12), they became apostles of the good news to the ends of the earth. In the face of poverty and persecution they transformed human lives and formed communities which became signs of the power and presence of God. Sharing in this same resurrection faith, contemporary followers of Christ can face the struggles and challenges that await those who bring the gospel vision to bear on our complex economic and social world.

5. Poverty, Riches, and the Challenge of Discipleship

48. The pattern of Christian life as presented in the Gospel of Luke has special relevance today. In her Magnificat, Mary rejoices in a God who scatters the proud, brings down the mighty, and raises up the poor and lowly (Lk 1:51-53). The first public utterance of Jesus is "The Spirit of the Lord is upon me, because he has anointed me to preach good news to the poor" (Lk 4:18 cf. Is 61:1-2). Jesus adds to the blessing on the poor a warning, "Woe to you who are rich, for you have received your consolation" (Lk 6:24). He warns his followers against greed and reliance on abundant possessions and underscores this by the parable of the man whose life is snatched away at the very moment he tries to secure his wealth (Lk 12:13-21). In Luke along, Jesus tells the parable of the rich man who does not see the poor and suffering Lazarus at his gate (Lk 16:19-31). When the rich man finally "sees" Lazarus, it is from the place of torment and the opportunity for conversion has passed. Pope John Paul II has often recalled this parable to warn the prosperous not to be blind to the great poverty that exists beside great wealth [13].

49. Jesus, especially in Luke, lives as a poor man, like the prophets takes the side of the poor, and warns of the dangers of wealth [14]. The terms used for the poor, while primarily describing lack of material goods, also suggest dependence and powerlessness. The poor are also an exiled and oppressed people whom God will rescue (Is 51:21-23) as well as a faithful remnant who will take refuge in God (Zep 3:12-13). Throughout the Bible, material poverty is a misfortune and a cause of sadness. A constant biblical refrain is that the poor must be cared for and protected and that when they are exploited, God hears their cries (Prv 22:22-23). Conversely, even though the goods of the earth are to be enjoyed and people are to thank God for material blessings, wealth is a constant danger. The rich are wise in their own eyes (Prv 28:11), and are prone to apostasy and idolatry (Am 5:4-13; Is 2:6-8), as well as to violence and oppression (Jas 2:6-7) [15]. Since they are neither blinded by wealth nor make it into an idol, the poor can be open to God's presence; throughout Israel's history and in early Christianity the poor are agents of God's transforming power.

50. The poor are often related to the lowly (Mt 5:3, 5) to whom God reveals what was hidden from the wise (Mt 11:25-30). When Jesus calls the poor "blessed", he is not praising their condition of poverty, but their openness to God. When he states that the reign of God is theirs, he voices God's special concern for them, and promises that they are to be the beneficiaries of God's mercy, and justice. When he summons disciples to leave all and follow him, he is calling them to share his own radical trust in the Father and his freedom from care and anxiety (cf. Mt 6:25-34). The practice of evangelical poverty in the Church has always been a living witness to the power of that trust and to the joy that comes with that freedom.

51. Early Christianity saw the poor as an object of God's special love, but it neither canonized material poverty nor accepted deprivation as an inevitable fact of life. Though few early Christians possessed wealth or power (1 Cor 1:26-28; Jas 2:5), their communities had well-off members (Acts 16:14; 18:8). Jesus' concern for the poor was continued in different forms in the early Church. The early community at Jerusalem distributed its possessions so that "there was no needy person among them," and held "all things in common" -- a phrase that suggests not only shared material possessions, but more fundamentally, friendship and mutual concern among all its members (Acts 4:32-34; 2:44). While recognizing the dangers of wealth, the early Church proposed the proper use of possessions to alleviate need and suffering, rather than universal dispossession. Beginning in the first century, and throughout history, Christian communities have developed varied structures to support and sustain the weak and powerless in societies that were often brutally unconcerned about human suffering.

52. Such perspectives provide a basis today for what is called the "preferential option for the poor" [16]. Though the Gospels and in the New Testament as a whole the offer of salvation is extended to all peoples, Jesus takes the side of the most in need, physically and spiritually. The example of Jesus poses a number of challenges to the contemporary Church. It imposes a prophetic mandate to speak for those who have no one to speak for them, to be a defender of the defenseless, who in biblical terms are the poor. It also demands a compassionate vision that enables the Church to see things from the side of the poor and powerless and to assess lifestyle, policies, and social institutions in terms of their impact on the poor. It summons the Church also to be an instrument in assisting people to experience the liberating power of God in their own lives so that they may respond to the Gospel in freedom and in dignity. Finally, and most radially, it calls for an emptying of self, both individually and corporately, that allows the Church to experience the power of God in the midst of poverty and powerlessness.

6. A Community of Hope

53. The biblical vision of creation, covenant, and community, as well as the summons to discipleship, unfolds under the tension between promise and fulfillment. The whole Bible is spanned by narratives of the first creation (Gn 1-3) and the vision of a restored creation at the end of history (Rv 21:1-4). Just as creation tells us that God's desire was one of wholeness and unity between God and the human family and within this family itself, the images of a new creation give hope that enmity and hatred will cease and justice and peace will reign (Is 11:4-6; 25:1-8). Human life unfolds "between the times," the time of the first creation and that of a restored creation (Rom 8:18-25). Although the ultimate realization of God's plan lies in the future, Christians in union with all people of good will are summed to shape history in the image of God's creative design, and in response to the reign of God proclaimed and embodied by Jesus.

54. A Christian is a member of a new community, "God's own people" (1 Pt 2:9-10), who, like the people of Exodus, owes its existence to the gracious gift of God and is summoned to respond to God's will made manifest in the life and teaching of Jesus. A Christian walks in the newness of life (Rom 6:4), and is "a new creation; the old has passed away, the new has come" (2 Cor 5:17). This new creation in Christ proclaims that God's creative love is constantly at work, offers sinners forgiveness, and reconciles a broken world. Our action on behalf of justice in our world proceeds from the conviction that, despite the power of injustice and violence, life has been fundamentally changed by the entry of the Word made flesh into human history.

55. Christian communities that commit themselves to solidarity with those suffering and to confrontation with those attitudes and ways of acting which institutionalize injustice, will themselves experience the power and presence of Christ. They will embody in their lives the values of the new creation while they labor under the old. The quest for economic and social justice will always combine hope and realism, and must be renewed by every generation. It involves diagnosing those situations that continue to alienate the world from God's creative love as well as presenting hopeful alternatives that arise from living in a renewed creation. This quest arises from faith and is sustained by hope as it seeks to speak to a broken world of God's justice and loving kindness.

7. A Living Tradition

56. Our reflection on U.S. economic life today must be rooted in this biblical vision of the kingdom and discipleship, but it must also be shaped by the rich and complex tradition of Catholic life and thought. Throughout its history, the Christian community has listened to the words of Scripture and sought to enact them in the midst of daily life in very different historical and cultural contexts.

57. In the first centuries, when Christians were a minority in a hostile society, they cared for one another through generous almsgiving. In the patristic era, the church fathers repeatedly stressed that the goods of the earth were created by God for the benefit of every person without exception, and that all have special duties toward those in need. The monasteries of the Middle Ages were centers of prayer, learning, and education. They contributed greatly to the cultural and economic life of the towns and cities that sprang up around them. In the twelfth century the new mendicant orders dedicated themselves to following Christ in poverty and to the proclamation of the good news to the poor.

58. These same religious communities also nurtured some of the greatest theologians of the Church's tradition, thinkers who synthesized the call of Christ with the philosophical learning Greek, Roman, Jewish, and Arab worlds. Thomas Aquinas and the other scholastics devoted rigorous intellectual energy to clarifying the meaning of both personal virtue and justice in society. In more recent centuries Christians began to build a large network of hospitals, orphanages, and schools, to serve the poor and society at large. And beginning with Leo XIII's Rerum Novarum, down to the writings and speeches of John Paul II, the popes have more systematically addressed the rapid change of modern society in a series of social encyclicals. These teachings of the modern popes and of the Second Vatican Council are especially significant for efforts to respond to the problems facing society today [17].

59. We also have much to learn from the strong emphasis in Protestant traditions on the vocation of lay people in the world and from ecumenical efforts to develop an economic ethic that addresses newly emergent problems. And in a special way our fellow Catholics in developing countries have much to teach us about the Christian response to an ever more interdependent world.

60. Christians today are called by God to carry on this tradition through active love of neighbor, a love that responds to the special challenges of this moment in human history. The world is wounded by sin and injustice, in need of conversion and of the transformation that comes when persons enter more deeply into the mystery of the death and Resurrection of Christ. The concerns of this pastoral letter are not at all peripheral to the central mystery at the heart of the Church [18]. They are integral to the proclamation of the Gospel and part of the vocation of every Christian today [19].

B. Ethical Norms for Economic Life

61. These biblical and theological themes shape the overall Christian perspective on economic ethics. This perspective is also subscribed to by many who do not share Christian religious convictions. Human understanding and religious belief are complementary, not contradictory. For human beings are created in God's image, and their dignity is manifest in the ability to reason and understand, in their freedom to shape their own lives and the life of their communities, and in the capacity for love and friendship. In proposing ethical norms, therefore, we appeal both to Christians and to all in our pluralist society to show that respect and reverence owed to the the dignity of every person. Intelligent reflection on the social and economic realities of today is also indispensable in the effort to respond to economic circumstances never envisioned in biblical times. Therefore, we now want to propose an ethical framework that can guide economic life today in ways that are both faithful to the Gospel and shaped by human experience and reason.

62. First we outline the duties all people have to each other and to the whole community: love of neighbor, the basic requirements of justice, and the special obligation to those who are poor or vulnerable. Corresponding to these duties are the *human rights* of every person; the obligation to protect the dignity of all demands respect for these rights. Finally these duties and rights entail several priorities that should guide the economic choices of individuals, communities, and the nation as a whole.

1. The Responsibilities of Social Living

63. Human life is life in community. Catholic social teaching proposes several complementary perspectives that show how moral responsibilities and duties in the economic sphere are rooted in this call to community.

a. Love and Solidarity

64. The commandments to love god with all one's heart and to love one's neighbor as oneself are the heart and soul of christian morality. Jesus offers himself as the model of this all-inclusive love: ... love one another as I have loved you" (Jn 15:12). These commands point out the path toward true human fulfillment and happiness. They are not arbitrary restrictions on human freedom. Only active love of God and neighbor makes the fullness of community happen. Christians look forward in hope to a true communion among all persons with each other and with God. The Spirit of Christ labors in history to build up the bonds of solidarity among all persons until that day on which their union is brought to perfection in the Kingdom of God [20]. Indeed Christian theological reflection on the very reality of God as a trinitarian unity of persons -- Father, Son, and Holy Spirit -- shows that being a person means being united to other persons in mutual love" [20].

65. What the Bible and Christian tradition teach, human wisdom confirms. Centuries before Christ, the Greeks and Romans spoke of the human person as a "social animal" made for friendship, community, and public life. These insights show that human beings achieve self-realization not in isolation, but in interaction with others [22].

66. The virtues of citizenship are an expression of Christian love more crucial in today's interdependent world than ever before. These virtues grow out of a lively sense of one's dependence on the commonweal and obligations to it. This civic commitment must also guide the economic institutions of society. In the absence of a vital sense of citizenship among the businesses, corporations, labor unions, and other groups that shape economic life, society as a whole is endangered. Solidarity is another name for this social friendship and civic commitment that make human moral and economic life possible.

67. The Christian tradition recognizes, of course, that the fullness of love and community will be achieved only when God's work in Christ comes to completion in the kingdom of God. This kingdom has been inaugurated among us, but God's redeeming and transforming work is not yet complete. Within history, knowledge of how to achieve the goal of social unity is limited. Human sin continues to wound the lives of both individuals and larger social bodies and places obstacles in the path toward greater social solidarity. If efforts to protect human dignity are to be effective, they must take these limits on knowledge and love into account. Nevertheless, sober realism should not be confused with resigned or cynical pessimism. It is a challenge to develop a courageous hope that can sustain efforts that will sometimes be arduous and protracted.

b. Justice and Participation

68. Biblical justice is the goal we strive for. This rich biblical understanding portrays a just society as one marked by the fullness of love, compassion, holiness, and peace. On their path through history, however, sinful human beings need more specific guidance on how to move toward the realization of this great vision of God's Kingdom. This guidance is contained in the norms of basic or minimal justice. These norms state the minimum levels of mutual care and respect that all persons owe to each other in an imperfect world [23]. Catholic social teaching, like must philosophical reflection, distinguishes three dimensions of basic justice: commutative justice, distributive justice, and social justice [24].

69. Commutative justice calls for fundamental fairness in all agreements and exchanges between individuals or private social groups. It demands respect for the equal human dignity of all persons in economic transactions, contracts, or promises. For example, workers owe their employers diligent work in exchange for their wages. Employers are obligated to treat their employees as persons, paying them fair wages in exchange for the work done and establishing conditions and patterns of work that are truly human [25].

70. Distributive justice requires that the allocation of income, wealth, and power in society be evaluated in light of its effects on persons whose basic material needs are unmet. The Second Vatican Council stated: "The right to have a share of earthly goods sufficient for oneself and one's family belongs to everyone. The fathers and doctors of the Church held this view, teaching that we are obliged to come to the relief of the poor and to do so not merely out of our superfluous goods" [26]. Minimum material resources are an absolute necessity for human life. If persons are to be recognized as members of the human community, then the community has an obligation to help fulfill these basic needs unless an absolute scarcity of resources makes this strictly impossible. No such scarcity exists in the United States today.

71. Justice also has implications for the way the larger social, economic, and political institutions of society are organized. Social justice implies that persons have an obligation to be active and productive participants in the life of society and that society has a duty to enable them to participate in this way. This form of justice can also be called "contributive," for it stresses the duty of all who are able to help create the goods, services, and other nonmaterial or spiritual values necessary for the welfare of the whole community. In the words of Pius XI, "It is of the very essence of social justice to demand from each individual all that is necessary for the common good" [27]. Productivity is essential if the community is to have the resources to serve the well-being of all. Productivity, however, cannot be measured solely by its output in goods and services. Patterns of production must also be measured in light of their impact on the fulfillment of basic needs, employment levels, patterns of discrimination, environmental quality, and sense of community.

72. The meaning of social justice also includes a duty to organize economic and social institutions so that people can contribute to society in ways that respect their freedom and the dignity of their labor. Work should enable the working person to become "more a human being," more capable of acting intelligently, freely, and in ways that lead to self-realization [28].

73. Economic conditions that leave large numbers of able people unemployed, underemployed, or employed in dehumanizing conditions fail to meet the converging demands of these three forms of basic justice. Work with adequate pay for all who seek it is the primary means of achieving basic justice in our society. Discrimination in job opportunities or income levels on the basis of race, sex, or other arbitrary standards can never be justified [29]. It is a scandal that such discrimination continues in the United States today. Where the effects of past discrimination persist, society has an obligation to take positive steps to overcome the legacy of injustice. Judiciously administered affirmative action programs in education and employment can be important expressions of the drive for solidarity and participation that is at the heart of true justice. Social harm calls for social relief.

74. Basic justice also calls for the establishment of a floor of material well-being on which all can stand. This is a duty of the whole of society and it creates particular obligations for those with greater resources. This duty calls into question extreme inequalities of income and consumption when so many lack basic necessities. Catholic social teaching does not maintain that a flat, arithmetical equality of income and wealth is a demand of justice, but it does challenge economic arrangements that leave large numbers of people impoverished. Further, it sees extreme inequality as a threat to the solidarity of the human community, for great disparities lead to deep social divisions and conflict [30].

75. This means that all of us must examine our way of living in the light of the needs of the poor. Christian faith and the norms of justice impose distinct limits on what we consume and how we view material goods. The great wealth of the United States can easily blind us to the poverty that exists in this nation and the destitution of hundreds of millions of people in other parts of the world. Americans are challenged today as never before to develop the inner freedom to resist the temptation constantly to seek more. Only in this way will the nation avoid what Paul VI called "the most evident form of moral underdevelopment," namely greed [31].

76. These duties call not only for individual charitable giving but also for a more systematic approach by businesses, labor unions, and the many other groups that shape economic life -- as well as government. The concentration of privilege that exists today results far more from institutional relationships distribute power and wealth inequitably than from differences in talent or lack of desire to work. These institutional patterns must be examined and revised if we are to meet the demands of basic justice. For example, a system of taxation based on assessment according to ability to pay [32] is a prime necessity for the fulfillment of these social obligations.

c. Overcoming Marginalization and Powerlessness

77. These fundamental duties can be summarized this way: basic justice demands the establishment of minimum levels of participation in the life of the human community for all persons. The ultimate injustice is for a person or group to be treated actively or abandoned passively as if they were nonmembers of the human race. To treat people this way is effectively to say they simply do not count as human beings. This can take many forms, all of which can be described as varieties of marginalization, or exclusion from social life [33]. This exclusion can occur in the political sphere: restriction of free speech, concentration of power in the hands of a few, or outright repression by the state. It can also take economic forms that are equally harmful. Within the United States, individuals, families, and local communities fall victim to a downward cycle of poverty generated by economic forces they are powerless to influence. The poor, the disabled, and the unemployed too often are simply left behind. This pattern is even more severe beyond our borders in the least-developed countries. Whole nations are prevented from fully participating in the international economic order because they lack the power to change their disadvantaged position. Many people within the less developed countries are excluded from sharing in the meager resources available in their homelands by unjust elites and unjust governments. These patterns of exclusion are created by free human beings. In this sense they can be called forms of social sin [34]. Acquiescence in them or the failure to correct them when it is possible to do so is a sinful dereliction of Christian duty.

78. Recent Catholic social thought regards the task of overcoming these patterns of exclusion and powerlessness as a most basic demand of justice. Stated positively, justice demands that social institutions be ordered in a way that guarantees all persons the ability to participate actively in the economic, political, and cultural life of society [35]. The level of participation may be legitimately greater for some persons than for others, but there is a basic level of access that must be made available for all. Such participation is an essential expression of the social nature of human beings and of their communitarian vocation.

2. Human Rights: The Minimum Conditions for Life in Community

79. Catholic social teaching spells out the basic demands of justice in greater detail in the human rights of every person. These fundamental rights are prerequisites for a dignified life in community. The Bible vigorously affirms the sacredness of every person as a creature formed in the image and likeness of God. The biblical emphasis on covenant and community also shows that human dignity can only be realized and protected in solidarity with others. In Catholic social thought, therefore, respect for human rights and a strong sense of both personal and community responsibility are linked, not opposed. Vatican II described the common good as "the sum of those conditions of social life which allow social groups and their individual members relatively thorough and ready access to their own fulfillment" [36]. These conditions include the right to fulfillment of material needs, a guarantee of fundamental freedoms, and the protection of relationships that are essential to participation in the life of society [37]. These rights are bestowed on human beings by God and grounded in the nature and dignity of human persons. They are not created by society. Indeed society has a duty to secure and protect them [38].

80. The full range of human rights has been systematically outlined by John XXIII in his encyclical Peace on Earth (Pacem in Terris). His discussion echoes the United Nations Universal Declaration of Human Rights and implies that internationally accepted human rights standards are strongly supported by Catholic teaching. These rights include the civil and political rights to freedom of speech, worship, and assembly. A number of human rights also concern human welfare and are of a specifically economic nature. First among these are the rights to life, food, clothing, shelter, rest, medical care, and basic education. These are indispensable to the protection of human dignity. In order to ensure these necessities, all persons have a right to earn a living, which for most people in our economy is through remunerative employment. All persons also have a right to security in the event of sickness, unemployment, and old age. Participation in the life of the community calls for the protection of this same right to employment, as well as the right to healthful working conditions, to wages, and other benefits sufficient to provide individuals and their families with a standard of living in keeping with human dignity, and to the possibility of property ownership [39]. These fundamental personal rights -- civil and political as well as social and economic -- state the minimum conditions for social institutions that respect human dignity, social solidarity, and justice. They are all essential to human dignity and to the integral development of both individuals and society, and are thus moral issues [40]. Any denial of these rights harms persons and wounds the human community. Their serious and sustained denial violates individuals and destroys solidarity among persons.

81. Social and economic rights call for a mode of implementation different from that required to secure civil and political rights. Freedom of worship and of speech imply immunity from interference on the part of both other persons and the government. The rights to education, employment, and social security, for example, are empowerments that call for positive action by individuals and society at large.

82. However, both kinds of rights call for positive action to create social and political institutions that enable all persons to become active members of society. Civil and political rights allow persons to participate freely in the public life of the community, for example, through free speech, assembly, and the vote. In democratic countries these rights have been secured through a long and vigorous history of creating the institutions of constitutional government. In seeking to secure the full range of social and economic rights today, a similar effort to shape new economic arrangements will be necessary.

83. The first step in such an effort is the development of a new cultural consensus that the basic economic conditions of human welfare are essential to human dignity and are due persons by right. Second, the securing of these rights will make demands on all members of society, on all private sector institutions, and on government. A concerted effort on all levels in our society is needed to meet these basic demands of justice and solidarity. Indeed political democracy and a commitment to secure economic rights are mutually reinforcing.

84. Securing economic rights for all will be an arduous task. There are a number of precedents in the U.S. history, however, which show that the work has already begun [41]. The country needs a serious dialogue about the appropriate levels of private and public sector involvement that are needed to move forward. There is certainly room for diversity of opinion in the Church and in U.S. society on *how* to protect the human dignity and economic rights of all our brothers and sisters [42]. In our view, however, there can be no legitimate disagreement on the basic moral objectives.

3. Moral Priorities for the Nation

85. The common good demands justice for all, the protection of the human rights for all [43]. Making cultural and economic institutions more supportive of the freedom, power, and security of individuals and families must be a central, long-range objective for the nation. Every person has a duty to contribute to building up the commonweal. All have a responsibility to develop their talents through education. Adults must contribute to society through their individual vocations and talents. parents are called to guide their children to the maturity of Christian adulthood and responsible citizenship. Everyone has special duties toward the poor and marginalized. Living up to these responsibilities, however, is often made difficult by the social and economic patterns of society. Schools and educational policies both public and and private often serve the privileged exceedingly well, while the children of the poor are effectively abandoned as second-class citizens. Great stresses are created in family life by the way wok is organized and scheduled, and by the social and cultural values communicated on TV. Many in the lower middle class are barely getting by and fear becoming victims of economic forces over which they have no control.

86. The obligation to provide justice for all means that the poor have the single most urgent economic claim on the conscience of the nation. Poverty can take many forms, spiritual as well as material. All people face struggles of the spirit as they ask deep questions about their purpose in life. Many have serious problems in marriage and family life at some time in their lives, and all of us face the certain reality of sickness and death. The Gospel of Christ proclaims that God's love is stronger than all these forms of diminishment. material deprivation, however, seriously compounds such sufferings of the spirit and heart. To see a loved one sick is bad enough, but to have no possibility of obtaining health care is worse. To face family problems, such as death of a spouse or a divorce, can be devastating, but to have these lead to the loss of one's home and end with living on the streets is something no one should have to endure in a country as rich as ours. In developing countries these human problems are even more greatly intensified by extreme material deprivation. This form of human suffering can be reduced if our own country, so rich in resources, chooses to increase its assistance.

87. As individuals and as a nation, therefore, we are called to make a fundamental "option for the poor" [44]. The obligation to evaluate social and economic activity from the viewpoint of the poor and the powerless arises from the radical command to love one's neighbor as one's self. Those who are marginalized and whose rights are denied have privileged claims if society is to provide justice for all. This obligation is deeply rooted in Christian belief. As Paul VI stated:

"In teaching us charity, the Gospel instructs us in the preferential respect due to the poor and the special situation they have in society: the more fortunate should renounce some of their rights so as to place their goods more generously at the service of others" [45].

John Paul II has described this special obligation to the poor as "a call to have a special openness with the small and the weak, those that suffer and weep, those that are humiliated and left on the margin of society, so as to help them win their dignity as human persons and children of God" [46].

88. The primary purpose of this special commitment to the poor is to enable them to become active participants in the life of society. It is to enable all persons to share in and contribute to the common good [47]. The "option for the poor," therefore, is not an adversarial slogan that pits one group or class against another. Rather it states that the deprivation and powerlessness of the poor wounds the whole community. The extent of their suffering is a measure of how far we are from being a true community of persons. These wounds will be healed only by greater solidarity with the poor and among the poor themselves.

89. In summary, the norms of love, basic justice, and human rights imply that personal decisions, social policies, and economic institutions should be governed by several key priorities. These priorities do not specify everything that must be considered in economic decision making. They do indicate the most fundamental and urgent objectives.

90. a. The fulfillment of the basic needs of the poor is of the highest priority. Personal decisions, policies of private and public bodies, and power relationships must be all evaluated by their effects on those who lack the minimum necessities of nutrition, housing, education, and health care. In particular, this principle recognizes that meeting fundamental human needs must come before the fulfillment of desires for luxury consumer goods, for profits not conducive to the common good, and for unnecessary military hardware.

91. b. Increasing active participation in economic life by those who are presently excluded or vulnerable is a high social priority. The human dignity of all is realized when people gain the power to work together to improve their lives, strengthen their families, and contribute to society. Basic justice calls for more than providing help to the poor and other vulnerable members of society. It recognizes the priority of policies and programs that support family life and enhance economic participation through employment and widespread ownership of property. It challenges privileged economic power in favor of the well-being of all. It points to the need to improve the present situation of those unjustly discriminated against in the past. And it has very important implications for both the domestic and the international distribution of power.

92. c. The investment of wealth, talent, and human energy should be specially directed to benefit those who are poor or economically insecure. Achieving a more just economy in the United States and the world depends in part on increasing economic resources and productivity. In addition, the ways these resources are invested and managed must be scrutinized in light of their effects on non-monetary values. Investment and management decisions have crucial moral dimensions: they create jobs or eliminate them; they can push vulnerable families over the edge into poverty or give them new hope for the future; they help or hinder the building of a more equitable society. They can have either positive or negative influence on the fairness of the global economy. Therefore, this priority presents a strong moral challenge to policies that put large amounts of talent and capital into the production of luxury consumer goods and military technology while failing to invest sufficiently in education, health, the basic infrastructure of our society and economic sectors that produce urgently needed jobs, goods and services.

93. d. Economic and social policies as well as organization of the work world should be continually evaluated in light of their impact on the strength and stability of family life. The long-range future of this nation is intimately linked with the well-being of families, for the family is the most basic form of human community [48]. Efficiency and competition in the marketplace must be moderated by greater concern for the way work schedules and compensation support or threaten the bonds between spouses and between parents and children. Health, education and social service programs should be scrutinized in light of how well they ensure both individual dignity and family integrity.

94. These priorities are not policies. They are norms that should guide the economic choices of all and shape economic institutions. They can help the United States move forward to fulfill the duties of justice and protect economic rights. They were strongly affirmed as implications of Catholic social teaching by Pope John Paul II during his visit to Canada in 1984: "The needs of the poor take priority over the desires of the rich; the rights of workers over the maximization of profits; the preservation of the environment over uncontrolled industrial expansion; the production to meet social needs over production for military purposes" [49]. There will undoubtedly be disputes about the concrete applications of these priorities in our complex world. We do not seek to foreclose discussion about them. However, we believe that an effort to move in the direction they indicate is urgently needed.

95. The economic challenge of today has many parallels with the political challenge that confronted the founders of our nation. In order to create a new form of political democracy they were compelled to develop ways of thinking and political institutions that had never existed before. Their efforts were arduous and their goals imperfectly realized, but they launched an experiment in the protection of civil and political rights that has prospered through the efforts of those who came after them. We believe the time has come for a similar experiment in securing economic rights: the creation of an order that guarantees the minimum conditions of human dignity in the economic sphere for every person. By drawing on the resources of the Catholic moral-religious tradition, we hope to make a contribution through this letter to such a new "American Experiment": a new venture to secure economic justice for all.

C. Working for Greater Justice: Persons and Institutions

96. The economy of this nation has been built by the labor of human hands and minds. Its future will be forged by the ways persons direct all this work toward greater justice. The economy in not a machine that operates according to its own inexorable laws, and persons are not mere objects tossed about by economic forces. Pope John Paul II has stated that "human work is a key, probably the essential key, to the whole social question" [50]. The Pope's understanding of work includes virtually all forms of productive human activity: agriculture, entrepreneurship, industry, the care of children, the sustaining of family life, politics, medical care, and scientific research. Leisure, prayer, celebration, and the arts are also central to the realization of human dignity and to the development of a rich cultural life. It is in their daily work, however, that persons become the subjects and creators of the economic life of the nation [51]. Thus, it is primarily through their daily labor that people make their most important contributions to economic justice.

97. All work has a threefold moral significance. First, it is a principle way that people exercise the distinctive human capacity for self-expression and self-realization. Second, it is the ordinary way for human beings to fulfill their material needs. Finally, work enables people to contribute to the well-being of the larger community. Work is not only for one's self. It is for one's family, for the nation, and indeed for the benefit of the entire human family [52].

98. These three moral concerns should be visible in the work of all, no matter what their role in the economy: blue collar workers, managers, homemakers, politicians, and others. They should also govern the activities of the many different, overlapping communities and institutions that make up society: families, neighborhoods, small businesses, giant corporations, trade unions, the various levels of government, international organizations, and a host of other human associations including communities of faith.

99. Catholic social teaching calls for respect for the full richness of social life. The need for vital contributions from different human associations -- ranging in size from the family to government -- has been classically expressed in Catholic social teaching in the "principle of subsidiarity":

"Just as it is gravely wrong to take from individuals what they can accomplish by their own initiative and industry and give it to the community, so also it is an injustice and at the same time a grave evil and disturbance of right order to assign a greater and higher association what lesser and subordinate organizations can do. For every social activity ought of its very nature to furnish help (subsidium) to the members of the body social, and never destroy and absorb them" [53].

100. This principle guarantees institutional pluralism. It provides space for freedom, initiative, and creativity on the part of many social agents. At the same time, it insists that all these agents should work in ways that help build up the social body. Therefore, in all their activities these groups should be working in ways that express their distinctive capacities for action, that help meet human needs, and that make true contributions to the common good of the human community. The task of creating a more just U.S. economy is a vocation of all and depends on strengthening the virtues of public service and responsible citizenship in personal life and on all levels of institutional life [54].

101. Without attempting to describe the tasks of all the different groups that make up society, we want to point to the specific rights and duties of some of the persons and institutions whose work for justice will be particularly important to the future of the United States economy. These rights and duties are among the concrete implications of the principle of subsidiarity. Further implications will be discussed in Chapter IV of this letter.

1. Working People and Labor Unions

102. Though John Paul II's understanding of work is a very inclusive one, it fully applies to those customarily called "workers" or "labor" in the United States. Labor has a great dignity, so great that all who are able to work are obligated to do so. The duty to work derives both from God's command and from a responsibility to one's own humanity and to the common good [55]. The virtue of industriousness is also an expression of a person's dignity and solidarity with others. All working people are called to contribute to the common good by seeking excellence in production and service.

103. Because work is this important, people have a right to employment. In return for their labor, workers have a right to wages and other benefits sufficient to sustain life in dignity. As Pope Leo XIII stated, every working person has "the right of securing things to sustain life" [56]. The way power is distributed in a free market economy frequently gives employers greater bargaining power than employees in the negotiation of labor contracts. Such unequal power may press workers into a choice between an inadequate wage or no wage at all. But justice, not charity, demands certain minimum wage guarantees. The provision of wages and other benefits sufficient to support a family in dignity is a basic necessity to prevent this exploitation of workers. The dignity of workers also requires adequate health care, security for old age or disability, unemployment compensation, healthful working conditions, weekly rest, periodic holidays for recreation and leisure, and reasonable security against arbitrary dismissal [57]. These provisions are all essential if workers are to be treated as persons rather than simply a "factor of production."

104. The Church fully supports the right of workers to form unions or other associations to secure their rights to fair wages and working conditions. This is a specific application of the more general right to associate. In the words of Pope John Paul II, "The experience of history teaches that organizations of this type are an indispensable element of social life, especially in modern industrial societies" [58]. Unions may also legitimately resort to strikes where this is the only available means to the justice owed to workers [59]. No one may deny the right to organize without attacking human dignity itself. Therefore, we firmly oppose organized efforts, such as those regrettably now seen in this country, to break existing unions and prevent workers from organizing. Migrant agricultural workers today are particularly in need of the protection, including the right to organize and bargain collectively. U.S. labor law reform is needed to meet these problems as well as to provide more timely and effective remedies for unfair labor practices.

105. Denial of the right to organize has been pursued ruthlessly in many countries beyond our borders. We vehemently oppose violations of the freedom to associate, wherever they occur, for they are an intolerable attack on social solidarity.

106. Along with the rights of workers and unions go a number of important responsibilities. Individual workers have obligations to their employers, and trade unions also have duties to society as a whole. Union management in particular carries a strong responsibility for the good name of the entire union movement. Workers must use their collective power to contribute to the well-being of the whole community and should avoid pressing demands whose fulfillment would damage the common good and the rights of more vulnerable members of society [60]. It should be noted, however, that wages paid to workers are but one of the factors affecting the competitiveness of industries. Thus, it is unfair to expect unions to make concessions if managers and shareholders do not make at least equal sacrifices.

107. Many U.S. union have exercised leadership in the struggle for justice for minorities and women. Racial and sexual discrimination, however, have blotted the record of some unions. Organized labor has a responsibility to work positively toward eliminating the injustice this discrimination has caused.

108. Perhaps the greatest challenge facing United States workers and unions today is that of developing a new vision of their role in the United States economy of the future. The labor movement in the United States stands at a crucial moment. The dynamism of the unions that led to their rapid growth in the middle decades of this century has been replaced by a decrease in the percentage of U.S. workers who are organized. American workers are under heave pressures today that threaten their jobs. The restrictions on the right to organize in many countries abroad make labor costs lower there, threaten American workers and their jobs, and lead to the exploitation of workers in these countries. In these difficult circumstances, guaranteeing the rights of U.S. workers calls for imaginative vision and creative new steps, not reactive or simply defensive strategies. For example, organized labor can play a very important role in helping provide the education and training needed to help keep workers employable. Unions can also help both their own members and workers in developing countries by increasing their international efforts. A vital labor movement will be one that looks to the future with a deepened sense of global interdependence.

109. There are many signs that these challenges are being discussed by creative labor leaders today. Deeper and broader discussions of this sort are needed. This does not mean that only organized labor faces these new problems. All other sectors and institutions in the U.S. economy need similar vision and imagination. Indeed new forms of cooperation among labor, management, government, and other social groups are essential, and will be discussed in Chapter VI of this letter.

2. Owners and Managers

110. The economy's success in fulfilling the demands of justice will depend on how its vast resources and wealth are managed. Property owners, managers, and investors of financial capital must all contribute to creating a more just society. Securing economic justice depends heavily on the leadership of men and women in business and on the wise investment by private enterprises. Pope John Paul II has pointed out, "The degree of well-being which society today enjoys would be unthinkable without the dynamic figure of the business person, whose function consists of organizing human labor and the means of production so as to give rise to the goods and services necessary for the prosperity and progress of the community" [61]. The freedom of entrepreneurship, business, and finance should be protected, but the accountability of this freedom to the common good and the norms of justice must be assured.

111. Persons in management face many hard choices each day, choices on which the well-being of many others depends. Commitment to the public good and not simply the private good of their firms is at the heart of what it means to call their work a vocation and simply a career or a job. We believe that the norms and priorities discussed in this letter can be of help as they pursue their important tasks. The duties of individuals in the business world, however, do not exhaust the ethical dimensions of business and finance. The size of a firm or bank is in many cases an indicator of relative power. Large corporations and large financial institutions have considerable power to help shape economic institutions within the United States and throughout the world. With this power goes responsibility and the need for those who manage it to be held to moral and institutional accountability.

112. Business and finance have the duty to be faithful trustees of the resources at their disposal. No one can ever own capital resources absolutely or control their use without regard for others and society as a whole [62]. This applies first of all to land and natural resources. Short-term profits reaped at the cost of depletion of natural resources or the pollution of the environment violate this trust.

113. Resources created by human industry are also held in trust. Owners and managers have not created this capital on their own. They have benefited from the work of many others and from the local communities that support their endeavors [63]. They are accountable to these workers and communities when making decisions. For example, reinvestment in technological innovation is often considered crucial for the long-term viability of a firm. The use of financial resources solely in pursuit of short-term profits can stunt the production of needed goods and services; a broader vision of managerial responsibility is needed.

114. The Catholic tradition has long defended the right to private ownership of productive property [64]. This right is an important element in a just economic policy. It enlarges our capacity for creativity and initiative [65]. Small and medium-sized farms, businesses, and entrepreneurial enterprises are among the most creative and efficient sectors of our economy. They should be highly valued by the people of the United States, as are land ownership and home ownership. Widespread distribution of property can help avoid excessive concentration of economic and political power. For these reasons ownership should be made possible for a broad sector of our population [66].

115. The common good may sometimes demand that the right to own be limited by public involvement in the planning or ownership of certain sectors of the economy. Support of private ownership does not mean that anyone has the right to unlimited accumulation of wealth. "Private property does not constitute for anyone an absolute or unconditional right. No one is justified in keeping for his exclusive use what he does not need, when others lack necessities" [67]. Pope John Paul II has referred to limits placed on ownership by the duty to serve the common good as a "social mortgage" on private property [68]. For example, these limits are the basis of society's exercise of eminent domain over privately owned land needed for roads or other essential public goods. The Church's teaching opposes collectivist and statist economic approaches. But it also rejects the notion that a free market automatically produces justice. Therefore, as Pope John Paul II has argued, "One cannot exclude the socialization, in suitable conditions, of certain means of production" [69]. The determination of when such conditions exist must be made on a case by case basis in light of the demands of the common good.

116. United States business and financial enterprises can also help determine the justice or injustice of the world economy. They are not all-powerful, but their real power is unquestionable. Transnational corporations and financial institutions can make positive contributions to development and global solidarity. Pope John Paul II has pointed out, however, that the desire to maximize profits and reduce cost of natural resources and labor has often tempted these transnational enterprises to behavior that increases inequality and decreases the stability of the international order [70]. By collaborating with those national governments that serve their citizens justly and with intergovernmental agencies, these corporations can contribute to overcoming the desperate plight of many persons throughout the world.

117. Business people, managers, investors, and financiers follow a vital Christian vocation when they act responsibly and seek the common good. We encourage and support a renewed sense of vocation in the business community. We also recognize that the way business people serve society is governed and limited by the incentives which flow from tax policies, and availability of credit, and other public policies.

118. Businesses have a right to an institutional framework that does not penalize enterprises that act responsibly. Governments must provide regulations and a system of taxation which encourage firms to preserve the environment, employ disadvantaged workers, and create jobs in depressed areas. Managers and stockholders should not be torn between their responsibilities to their organizations and their responsibilities toward society as a whole.

3. Citizens and Government

119. In addition to rights and duties related to specific roles in the economy, everyone has obligations based simply on membership in the social community. By fulfilling these duties, we create a true commonwealth. Volunteering time, talent, and money to work for greater justice is a fundamental expression of Christian love and social solidarity. All who have more than they need must come to the aid of the poor. People with professional or technical skills needed to enhance the lives of others have a duty to share them. And the poor have similar obligations: to work together as individuals and families to build up their communities by acts of social solidarity and justice. These voluntary efforts to overcome injustice are part of the Christian vocation.

120. Every citizen also has the responsibility to work to secure justice and human rights through an organized social response. In the words of Pius XI, "Charity will never be true charity unless it takes justice into account ... Let no one attempt with small gifts of charity to exempt himself from the great duties imposed by justice" [71]. The guaranteeing of basic justice for all is not an optional expression of largesse but an inescapable duty for the whole of society.

121. The traditional distinction between society and the state in Catholic social teaching provides the basic framework for such organized public efforts. The Church opposes all statist and totalitarian approaches to socioeconomic questions. Social life is richer than governmental power can encompass. All groups that compose society have responsibilities to respond to the demands of justice. We have just outlined some of the duties of labor unions and business and financial enterprises. These must be supplemented by initiatives by local community groups, professional associations, educational institutions, churches, and synagogues. All the groups that give life to this society have important roles to play in pursuit of economic justice.

122. For this reason, it is all the more significant that the teachings of the Church insist that government has a moral function: protecting human rights and securing basic justice for all members of the commonwealth [72]. Society as a whole and in all its diversity is responsible for building up the common good. But it is the government's role to guarantee the minimum conditions that make this rich social activity possible, namely, human rights and justice [73]. This obligation also falls on individual citizens as they choose their representatives and participate in shaping public opinion.

123. More specifically, it is the responsibility of all citizens, acting through their government, to assist and empower the poor, the disadvantaged, the handicapped, and the unemployed. Government should assume a positive role in generating employment and establishing fair labor practices, in guaranteeing the provision and maintenance of the economy's infrastructure, such as roads, bridges, harbors, public means of communication, and transport. It should regulate trade and commerce in the interest of fairness [74]. Government may levy the taxes necessary to meet these responsibilities, and citizens have a moral obligation to pay those taxes. The way society responds to the needs of the poor through its public policies is the litmus test of its justice or injustice. The political debate about these policies is the indispensable forum for dealing with the conflicts and tradeoffs that will always be present in the pursuit of a more just economy.

124. The primary norm for determining the scope and limits of governmental intervention is the "principle of subsidiarity" cited above. This principle states that, in order to protect basic justice, government should undertake only those initiatives which exceed the capacities of individuals or private groups acting independently. Government should not replace or destroy smaller communities and individual initiative. Rather it should help them contribute more effectively to social well-being and supplement their activity when the demands of justice exceed their capacities. These does not mean, however, that the government that governs least, governs best. Rather it defines good government intervention as that which truly "helps" other social groups contribute to the common good by directing, urging, restraining, and regulating economic activity as "the occasion requires and necessity demands" [75]. This calls for cooperation and consensus building among the diverse agents in our economic life, including government. The precise form of government involvement in this process cannot be determined from abstract. It will depend on an assessment of specific needs and the most effective ways to address them.

D. Christian Hope and the Courage to Act

125. The Christian vision is based on the conviction that God has destined the human race and all creation for "a kingdom of truth and life, of holiness and grace, of justice, love and peace" [76]. This conviction gives Christians strong hope as they face the economic struggles of the world today. This hope is not a naive optimism that imagines that simple formulas for creating a fully just society are ready at hand. The Church's experience through history and in nations throughout the world to