Many Catholics are aware of the Church’s condemnation of socialism. But are there also issues with capitalism? While popes have praised many values often associated with capitalism, they have also warned against extreme forms of the system that undermine human rights.
Here are some problems with capitalism that we see in our world today.
Capitalism, like socialism, can lead to a concentration of power.
G.K. Chesterton famously remarked that, historically, the problem with capitalism is there are “too few capitalists.” As a result, power is taken from families and put in the hands of a small number in charge.
We see these problems when a few big businesses dominate certain industries. Not only is competition weakened, but these corporations end up having more political power and money and can more easily exploit their workforce.
Extreme forms of capitalism may ultimately lead to socialism.
When capitalism gets out of hand, the government has to enact regulations. That’s fine as long as these genuinely protect the legitimate rights of businesses, their workers, and their customers.
When big business continually undermines the rights of workers and the public at large, people more readily embrace extreme government intervention, as socialist and communist societies demonstrate.