Module 4 Study Guide Introduction

In the previous module, we learned the importance of work to a person, family, and
society. Considered as the “key to the social question”, work is a fundamental dimension
of our existence. God, to whom we were created into his image and likeness, mandated
us to ‘subdue’ and ‘dominate’ the ‘earth’. It is through work that we earn our daily bread,
contribute to the continual advancement of science and technology, and elevate the
cultural and moral level of our society. Further, work can only be considered as such
when it conforms to the God’s moral order. Perhaps the most important lesson we
learned in module 3 is the emphasis on the workers/laborers, the subjects of work, as
opposed to the objective sense of work, where laborers/workers are seen as a sort of
‘merchandise’ and are equated with the material factors of production. The concept of
the subjective sense empowers workers/laborers to assert their rights by uniting
themselves and entering into a bargaining agreement with their employers. Finally, it is
by seeing work in the context of our faith – sharing in God’s creative power, we develop
the spirituality of work.
Module 4 will explain to us the biblical foundation of economic life, the moral
connotations of the economy, private and business initiatives, the goal of economic
institutions and globalization.
Something to reflect on, a discussion forum, a quiz, an assignment, and module
feedback follow after the discussion of the five key concepts.
Learning Objectives
At the end of the module, the students will be able to:

1. Explain the Christian perspective on economic life

2. Demonstrate understanding of the basic principles of economic life

3. Evaluate the effects of globalization in our country’s economy

4. Engage into any economic activity

Key Concepts

The module covers the following topics:

• Biblical Aspects
• Morality and the Economy
• Private Initiative and Business Initiative
• Economic Institutions at the Service of Man
• Globalization
TOPIC 1: Biblical Aspects

KEY CONCEPTS: The topic discusses the biblical foundation of economic life which
includes Man, poverty, and riches and Wealth exists to be shared. The Old Testament
presents two attitudes towards economic goods and riches. One is the attitude of
appreciation that sees the availability of material goods as necessary for life. The other,
economic goods and riches are not in themselves good as long as they are used
according to their ultimate purpose. Jesus in in the New Testament upholds and clarifies
these attitudes when he established the Kingdom of God where there is justice,
brotherhood, solidarity, and sharing. The biblical concept of economic activity assumes
a grateful response to our call – ‘to till the land’. With material progress, economic
activity fulfills its purpose when it serves people and society.

Learning ACTIVITY 1

Read 1: Biblical Aspects (read CCCD nos. 323-329). Abundance, not wealth or
luxury, is sometimes seen as a blessing from God. But the misuse of it is condemned.
The poor and the marginalized receive a particular attention from God. Faith in God
makes it possible to have a correct understanding of social development brought
about by economic activity.

TOPIC 2: Morality and the Economy

KEY CONCEPTS: The Church recognizes and respects the principles of economics but
insists that there are moral connotations of the economy. On the one hand, the laws of
economics determine the limits of what productive human effort cannot, and of what it
can attain in the economic field and by what it means. On the other hand, moral law
sees economic life ordained by God to the supreme purpose, that is, to serve the
individual and social nature of things and of all people. Moreover, justice, charity, and
solidarity demand economic efficiency that promotes the integral development of all
people. (CCSD nos. 330-334).
“If economic activity is to have a moral character, it must be directed to all men and to all
peoples. Everyone has the right to participate in economic life and the duty to contribute,
each according to his own capacity, to the progress of his own country and to that of the
entire human family” (CCSD no. 333).
 Learning ACTIVITY 1

Read 1: Morality and the Economy (read CCCD nos. 330-335). The transcendent
worth and sacredness of the human person is the basis of the moral dimension of
economic life. The Church articulates the moral dimension of economic life by
outlining some basic principles of economic life for policymakers to use in evaluating
the current economic situation of the country and for us citizens to reflect on the
implications of these.

TOPIC 3: Private Initiative and Business Initiative

KEY CONCEPTS: The discussion on private initiative and private initiative includes
business and its goals and the role of business owners and management. Economic
initiative is a basic economic right of everyone to use his/her talents to contribute to the
abundance that will benefit all, and to harvest the just fruits of his[/her] labor. It is an act that
should be given ample freedom because it shows the creative and the social nature of human
beings. The government, however, is morally obliged to regulate any economic activity to
ensure compatibility between the pursuit of common good and the type of economic activity
undertaken (CCSD no.336).

Learning ACTIVITY 1

Read 1: Private Initiative and Business Initiative (read CCSD nos. 336-345).
Businesses are meant to serve the common good of society through the production of
useful goods and services according to the economic criteria without neglecting the
concrete development of the person and society.

TOPIC 4: Economic Institutions at the Service of Man

KEY CONCEPTS: The discussion includes the role of the free market; action of the
government; role of intermediate bodies; and savings and consumer goods. The free
market is an efficient instrument “for attaining important objectives of justice, moderating
the excessive profits of individual businesses, responding to consumers demands,
bringing about a more efficient use and conservation of resources, rewarding
entrepreneurship and innovation, making information available so that it is really
possible to compare and purchase products in an atmosphere of healthy competition”
(CCSD no. 347). In the free market, the government must adopt suitable legislation and
at the same time direct economic and social policies to prevent any abuse in the various
market activities (CCSD no. 352). Considering that the government does not have an
exclusive competence over the socio-economic system, it has to collaborate with the
civil society/non-profit organizations that have the capability in attaining the common
good. And the task of the consumers is to decide whether to put their money into
consumer goods or savings (CCSD no. 358).

Learning ACTIVITY 1

Read 1: Economic Institutions at the Service of Man (read CCSD nos. 346-360). The
utilization of resources, that is, of all those goods and services to which economic
subjects — producers and consumers in the private and public spheres — attribute
value because of their inherent usefulness in the areas of production and
consumption is one of the higher priority issues in economics.

TOPIC 5: Globalization

KEY CONCEPTS: Globalization is a process that progressively integrates national

economies at the level of the exchange of goods and services of financial transactions.
It gives rise to new hopes while at the same time poses troubling questions. Connected
with the new dimensions of commercial and financial relations are its risks. (CCSD nos.
361-362).

Learning ACTIVITY 1

Read 1: Globalization (read CCSD nos. 361-367). “Looking after the common good
means making use of the new opportunities for the redistribution of wealth among the
different areas of the planet, to the benefit of the underprivileged that until now have been
excluded or cast to the sidelines of social and economic progress. ‘The challenge, in short, is
to ensure a globalization in solidarity, a globalization without marginalization’. This
technological progress itself risks being unfairly distributed among countries. In fact,
technological innovations can penetrate and spread within a specific community only if the
potential beneficiaries have a minimum level of knowledge and financial resources. It is
evident that, because of the great disparities between countries regarding access to technical
and scientific knowledge and to the most recent products of technology, the process of
globalization ends up increasing rather than decreasing the inequalities between countries in
terms of economic and social development. Given the nature of the current dynamics, the
free circulation of capital is not of itself sufficient to close the gap between developing
countries and the more advanced countries” (CCSD no
363).
Summary

Our economic activity is based on work. It is through work that we earn a living and
allow us to access the goods of the earth. This therefore makes our rightful claim – that
work is a right. Just as employers have an obligation to pay a just wage, so also,
employees have a duty to work reasonably for our wages. If the economic activity is
meant to serve the common good of all, then it is important to consider the fundamental
moral criterion for all economic decisions, policies, and institutions.

References

Catholic Parliamentary Office. (n.d.) Catholic Social Teaching: Economic Justice.

Accessed: https://www.rcpolitics.org/RC%20Politics%20-
%20Catholic%20Social%20Teaching%20-%20Economic%20Justice.html

Collin, Mike. (2016 May 6). Reinventing America: Pros and Cons of Globalization.
Accessed: https://www.forbes.com/sites/mikecollins/2015/05/06/the-pros-and-cons-
ofglobalization/?sh=6441f286ccce

Libreria Editrice Vaticana. (2004). Compendium of the Church Social Doctrine:

Economic Life. Accessed:
https://www.vatican.va/roman_curia/pontifical_councils/justpeace/documents/rc_pc_just
peace_doc_20060526_compendio-dott-soc_en.html#CHAPTER%20SEVEN

Emery, Jonathan. (n.d.) Economic Life? Catholic Social Teaching! Episode 9 Socially
Sourced. (Video). YouTube. https://www.youtube.com/watch?v=6unzpwNVGNA&t=1s