Pope Francis is wrong about the “fragility” of global capitalism during the pandemic

WSJ editorial.

"On Sunday Pope Francis released his encyclical Fratelli Tutti (“All Brothers”), meant to point a world reeling from Covid-19 in a more hopeful direction. Though ranging from war and nationalism to immigration and social dialogue based on “insult,” the document repeats his earlier indictments of capitalism. In particular he scores “those who would have had us believe that freedom of the market was sufficient to keep everything secure” after the pandemic hit.

The true answer to what ails us, he writes, is openness and dialogue. So in that spirit we would suggest that while the pope has many wise things to say, we’ve never met any market liberals who believe what Pope Francis attributes to them. Certainly Adam Smith—a professor of moral philosophy—did not believe the “dogma” that markets can “resolve every problem.” As Smith understood, the market depends on a rules-based legal order and the cultivation of virtues such as hard work, thrift, enterprise, and even what he saw as the religious virtue of benevolence.

In the wake of Covid-19, Pope Francis writes that the “fragility” of global capitalism has made the world more fragmented and unable to deal with the pandemic. But is that really true?

The pope rightly praises the doctors, nurses and other essential workers who have performed selflessly during this pandemic. But the market also plays a vital role. Less than a year after the coronavirus was detected and its genome deciphered, scientists responding in part to market incentives have dramatically improved therapies and are getting closer to a vaccine. Private companies are already making the vaccines in advance and will distribute them across the world faster than any government program could.

The pope released Fratelli Tutti at a moment when the Vatican finds itself in the headlines over a new scandal. The allegation is that a senior Vatican official, Cardinal Giovanni Angelo Becciu, stole Vatican funds to wire to Australia to bribe individuals to help frame Cardinal George Pell on sexual abuse charges. His alleged goal was to derail Cardinal Pell’s investigation into suspicious financial activities at the Vatican. Cardinal Becciu denies wrongdoing but was recently fired.

Perhaps this scandal in his own house might lead Pope Francis to reflect that if he’s ever to end the Vatican’s corruption and clean up its finances, he could use more of the transparency and accountability that a free market demands and helps impose.

The overarching message from Pope Francis is to encourage a culture of fraternal solidarity, among individuals as well as across borders and cultures. Yet he never appears to consider how the voluntary nature of market exchange might contribute to that goal because it roots economic success in anticipating and satisfying the needs of others. This isn’t the love of neighbor commanded by the Gospel. But it’s surely not as far removed from the Scriptures as Pope Francis asserts."