Papal Encyclical — On the Fraternity and Social Friendship

This letter is chiefly about reconciling "liberty, equality, and fraternity," as the basis for a liberal society that recognizes traditional views on this complex issue.

While the pope does not mean it explicitly, the basis of his view is that "the world is a family," which is a quote from the Upanishads.

While it largely about ethics and politics (political theory), economics is also prominent.

162. The biggest issue is employment. The truly “popular” thing – since it promotes the good of the people – is to provide everyone with the opportunity to nurture the seeds that God has planted in each of us: our talents, our initiative and our innate resources. This is the finest help we can give to the poor, the best path to a life of dignity. Hence my insistence that, “helping the poor financially must always be a provisional solution in the face of pressing needs. The broader objective should always be to allow them a dignified life through work”.[136] Since production systems may change, political systems must keep working to structure society in such a way that everyone has a chance to contribute his or her own talents and efforts. For “there is no poverty worse than that which takes away work and the dignity of work”.[137] In a genuinely developed society, work is an essential dimension of social life, for it is not only a means of earning one’s daily bread, but also of personal growth, the building of healthy relationships, self-expression and the exchange of gifts. Work gives us a sense of shared responsibility for the development of the world, and ultimately, for our life as a people.

168. The marketplace, by itself, cannot resolve every problem, however much we are asked to believe this dogma of neoliberal faith. Whatever the challenge, this impoverished and repetitive school of thought always offers the same recipes. Neoliberalism simply reproduces itself by resorting to the magic theories of “spillover” or “trickle” – without using the name – as the only solution to societal problems. There is little appreciation of the fact that the alleged “spillover” does not resolve the inequality that gives rise to new forms of violence threatening the fabric of society. It is imperative to have a proactive economic policy directed at “promoting an economy that favours productive diversity and business creativity”[140] and makes it possible for jobs to be created and not cut. Financial speculation fundamentally aimed at quick profit continues to wreak havoc. Indeed, “without internal forms of solidarity and mutual trust, the market cannot completely fulfil its proper economic function. And today this trust has ceased to exist”.[141] The story did not end the way it was meant to, and the dogmatic formulae of prevailing economic theory proved not to be infallible. The fragility of world systems in the face of the pandemic has demonstrated that not everything can be resolved by market freedom. It has also shown that, in addition to recovering a sound political life that is not subject to the dictates of finance, “we must put human dignity back at the centre and on that pillar build the alternative social structures we need”.[142]
169. In some closed and monochrome economic approaches, for example, there seems to be no place for popular movements that unite the unemployed, temporary and informal workers and many others who do not easily find a place in existing structures. Yet those movements manage various forms of popular economy and of community production. What is needed is a model of social, political and economic participation “that can include popular movements and invigorate local, national and international governing structures with that torrent of moral energy that springs from including the excluded in the building of a common destiny”, while also ensuring that “these experiences of solidarity which grow up from below, from the subsoil of the planet – can come together, be more coordinated, keep on meeting one another”.[143] This, however, must happen in a way that will not betray their distinctive way of acting as “sowers of change, promoters of a process involving millions of actions, great and small, creatively intertwined like words in a poem”.[144] In that sense, such movements are “social poets” that, in their own way, work, propose, promote and liberate. They help make possible an integral human development that goes beyond “the idea of social policies being a policy for the poor, but never with the poor and never of the poor, much less part of a project that reunites peoples”.[145] They may be troublesome, and certain “theorists” may find it hard to classify them, yet we must find the courage to acknowledge that, without them, “democracy atrophies, turns into a mere word, a formality; it loses its representative character and becomes disembodied, since it leaves out the people in their daily struggle for dignity, in the building of their future”.[146]

170. I would once more observe that “the financial crisis of 2007-08 provided an opportunity to develop a new economy, more attentive to ethical principles, and new ways of regulating speculative financial practices and virtual wealth. But the response to the crisis did not include rethinking the outdated criteria which continue to rule the world”.[147] Indeed, it appears that the actual strategies developed worldwide in the wake of the crisis fostered greater individualism, less integration and increased freedom for the truly powerful, who always find a way to escape unscathed....

ENCYCLICAL LETTER
FRATELLI TUTTI [Brothers All*]
OF THE HOLY FATHER
FRANCIS
ON THE FRATERNITY AND SOCIAL FRIENDSHIP

*from St. Francis of Assisi, Admonitions.

See also

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.

Reuters
Pope says free market, 'trickle-down' policies fail society
Philip Pullella