Pope Francis says the free market and 'trickle-down' policies have failed society

The pope's latest encyclical, the most authoritative form of papal writing, takes aim at tax breaks and other incentives for big business and the wealthy.

Pope Francis delivers his blessing during the Angelus noon prayer.

A file photo of Pope Francis delivering his blessing during the Angelus noon prayer. Source: AAP

The COVID-19 pandemic is the latest crisis to prove that market forces alone and “trickle-down” economic policies had failed to produce the social benefits their proponents claim, Pope Francis says.

In an encyclical on the theme of human fraternity, published on Sunday, the pope also said private property cannot be considered an absolute right in all cases where some lived extravagantly while others had nothing.

Called “Fratelli Tutti” (Brothers All), the encyclical’s title prompted criticism for not using inclusive language after it was announced last month.
Free copies of the Vatican newspaper L'Osservatore Romano with the front page about Pope Francis' encyclical "All Brothers" are distributed by volunteers.
Free copies of the Vatican newspaper L'Osservatore Romano with the front page about Pope Francis' encyclical "All Brothers" are distributed by volunteers. Source: IPA Milestone
In Italian, Fratelli means brothers but it is also used to mean brothers and sisters. The Vatican said it was taken from the “Admonitions”, or guidelines, written by St Francis of Assisi in the 13th century to his followers, and could not be changed.

The pope says in the first line of the 86-page encyclical that St Francis had “addressed his brothers and sisters” that way. In the document, he uses the term “men and women” 15 times and speaks several times about defending the rights and dignity of women.

Encyclicals are the most authoritative form of papal writing but they are not infallible.

The encyclical, which the pope signed in Assisi on Saturday, covers topics such as fraternity, immigration, the rich-poor gap, economic and social injustices, healthcare imbalances, and the widening political polarisation in many countries.
People pose with the paper in Peter's Square at the Vatican.
People pose with the paper in Peter's Square at the Vatican. Source: AAP
Archbishop of Brisbane, Mark Coleridge, said the pope's new encyclical was "not just for believers but for the entire human family". 

“The Holy Father speaks of ideologies that seek to divide rather than unite, policies that value certain people over others and economic systems that prioritise profit over people and the planet,” he said in a statement on Sunday.

The pope took direct aim at trickle-down economics, the theory favoured by conservatives that tax breaks and other incentives for big business and the wealthy eventually will benefit the rest of society through investment and job creation.

“There were those who would have had us believe that freedom of the market was sufficient to keep everything secure [after the pandemic hit],” he wrote.

The pope denounced “this dogma of neo-liberal faith” that resorts to “the magic theories of ‘spillover’ or ‘trickle’ ... as the only solution to societal problems”. A good economic policy, he said, “makes it possible for jobs to be created and not cut”.
Copies of L'Osservatore Romano with the Pope Francis encyclical are distributed by volunteers.
Copies of L'Osservatore Romano with the Pope Francis encyclical are distributed by volunteers. Source: AAP
The 2007-2008 financial crisis was a missed opportunity for change, instead of producing “increased freedom for the truly powerful, who always find a way to escape unscathed”. Society must confront “the destructive effects of the empire of money”.

He also repeated past calls for redistribution of wealth to help the poorest and for fairer access to natural resources by all.

“The right to private property can only be considered a secondary natural right, derived from the principle of the universal destination of created goods,” he said.

A Vatican official said the pope was referring to those with massive wealth.
The pope wrote that the belief of early Christians - “that if one person lacks what is necessary to live with dignity, it is because another person is detaining it” - was still valid.

Those with much must “administer it for the good of all” and rich nations are obliged to share wealth with poor ones. But he said he was “certainly not proposing an authoritarian and abstract universalism”.

Some ultra-traditionalist Catholics have accused the pope of secretly backing a perceived plot for a “One-World Government,” a debunked conspiracy theory.

Without naming countries or people, the pope condemned politicians who “seek popularity by appealing to the basest and most selfish inclinations” or who enact policies of “hatred and fear towards other nations”.
Addressing racism, a key issue in the United States following the Black Lives Matter movement, the pope said: “Racism is a virus that quickly mutates and, instead of disappearing, goes into hiding, and lurks in waiting.”

He repeated calls for the abolition of nuclear weapons and the death penalty, positions which have been assailed by conservative Catholics, particularly in the United States.



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4 min read
Published 5 October 2020 9:40am
Updated 5 October 2020 9:50am
Source: Reuters, SBS


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