In the
previous posting on this subject we noted that, having defined the State’s
role in the economy in rather broad terms, we still needed to come up with the
principles that should guide all
participants in the market if we want to have a justly structured
economic order. One thing to keep in
mind, of course, is that (as Daniel Webster said) “Power naturally and
necessarily follows property.” If we
want common human dignity respected, we cannot vest controlling power —
property — in the State or anywhere other than every child, woman, and man.
 |
| Webster: Power follows property. |
Getting down to specifics,
since we’re looking at economic matters and the proper role of the State, we look
at what the interfaith Center for Economic and Social Justice (CESJ) has
proposed to address this issue. That is a
“Capital Homestead Act” (that might be called an
“Economic Empowerment” or “Economic Democracy” Act outside the U.S.).
The idea is that
by making it possible for everyone (at least in theory) to become an owner of
capital, “the rest of us” will be empowered, and there will no longer be any
need for the State (socialism), a private sector élite (capitalism), or some weird combination of the two (the
Servile State) to try and take care of people (for their own good, of course).
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| Kelso: universal capital ownership. |
Expanded capital
ownership would enable every person (even those who cannot work) to realize the
ultimate vision of Louis Kelso of equal access to capital ownership and private property as a fundamental human right. This is consistent with the natural law triad
of life, liberty, and private property.
Key to the
“expanded ownership revolution” are the three principles of
economic justice. Kelso and Aristotleian philosopher Mortimer J. Adler articulated these as interconnected systems
principles in Chapter 5 of the book they co-authored, The
Capitalist Manifesto. CESJ later
refined and integrated these principles into the social doctrine of Pius XI as
analyzed by CESJ co-founder Father William Ferree.
Like the three
legs of a tripod, the three principles of economic justice operate together, providing the framework for
a just and stable economic order. Like a
tripod, if even one principle is missing or violated, the structure
collapses. As refined by CESJ, the three essential principles of economic
justice are:
·
Participative
Justice. This principle defines how
one makes input to the economic process in order to make a living. It requires
equal opportunity in gaining access to private property (control over, and enjoyment of the income
from productive assets) as well as equality of opportunity to engage in
productive work. Participative justice does not guarantee equal results, but requires
that every person be guaranteed by society’s institutions the equal human right to make a productive
contribution to the economy, both through one’s labor (as a worker) and through
one’s productive capital (as an owner).
This principle rejects monopolies, special privileges, and other social
barriers to economic self-reliance and personal freedom.
 |
| Aristotle: the classical form of justice. |
·
Distributive
Justice. “The most classical form”
of distributive justice (Compendium
of the Social Doctrine of the Church, § 201.), the out-take principle,
is based on the exchange or market value of one’s economic contributions. This is the principle that all people have a
right to receive a proportionate, market-determined share of the value of the
marketable goods and services they produce with their labor contributions, their
capital contributions,
or both. This respects human dignity by
making every producer’s and consumer’s economic vote count.
·
Social
Justice. As the feedback and corrective principle,
social justice governs participative and distributive justice, enabling both to operate
properly. Within an economic system,
social justice restores balance between overall production
and consumption. It rebalances
participative justice and distributive justice when the system violates either
essential principle. Social justice includes a concept of limitation that discourages
personal greed and prevents monopolies and barriers to participation.
 |
| Pius XI: social justice, not socialism. |
In general,
social justice embodies the principles of solidarity and subsidiarity: every person has a moral
responsibility to organize with others to correct organizations, institutions, laws, and the social order
itself at every level whenever the principles of participative or distributive justice are violated or are not operating
properly. The application of social
justice to the common good of specific economic
institutions brings those institutions into conformity with the demands of the
common good of all society.
Of course,
knowing the principles is not the same as knowing how to apply them. We still need to look at guidelines to apply
these principles of economic justice, which is what we will do in the next
posting on this subject.
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