An Introduction to Distributism
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Transcript of An Introduction to Distributism
An Introduction to Distributism
By Donald P. Goodman III / 10 October 2011
Catholic social teaching is as old as Catholicism; the Scriptures themselves teach the
basics of economic justice. Our Lord reminds us that the laborer is due a just wage for
his work,[1] for example; the Didache tells us that greed is wickedness,[2] and that
“advocates for the rich” shall be condemned.[3] Christian thinkers from St. Augustine
to St. Thomas Aquinas and beyond have dedicated themselves to political and economic
thinking in light of the Catholic faith.[4] However, formalized economic teaching from
the Magisterium is a relatively recent thing; its pioneering document was that of the
great Pope Blessed Leo XIII, Rerum novarum.
Rerum novarum has been received less than enthusiastically by modern economic
thinkers; some, even Catholics, argue that it was based on ignorance[5] or even that it
has since been changed.[6] Nevertheless, the correct attitude of the Catholic toward this
great encyclical was enunciated early on by Pope St. Pius X, in his own encyclical
Singulari quadam:
Therefore, in the first place, we proclaim that the duty of all Catholics is… to hold
firmly and to confess fearlessly the principles of Christian truth, handed down by the
Magisterium of the Catholic Church, especially those which Our most wise predecessor
explained in the encyclical letter Rerum novarum.[7]
This is binding teaching, to which the Catholic owes faithful acceptance. Rerum
novarum, and its daughter encyclicals from later popes, is the blueprint for Catholic
economic thought, the schematic to which all our bricks and mortar must conform.
Rerum novarum was unpopular in some circles because it identified deeply rooted flaws
in all the currently popular economic systems, particularly those called capitalism and
socialism. Against socialism, for example, Leo XIII unequivocally defended private
property[8]; against capitalism, however, he insisted that the state had the right and duty
to limit the use of private property.[9] Against socialism, he defended the legitimacy of
the wage contract[10]; against capitalism, he insisted that wages must be just, and that
the justice of a wage is not dependent merely upon the going market rate.[11] He
affirmed that the rights of individuals must be respected[12]; but he also held that the
government should make a special effort to protect wage-earners against the richer
classes.[13] The great pope also defended many other practices condemned by
capitalists, including the use of state authority to resolve labor disputes[14]; the
mandating by legal authority of Sunday rest[15]; the injustice of unrestrained
competition[16]; and the injustice of wage contracts, even if freely agreed to by the
worker, which do not allow “proper rest for soul and body”[17] or which are
insufficient to support a frugal and well-behaved wage-earner.”[18]
Pope Leo identified four primary problems with the prevailing economic situation: the
lack of workingmen‟s guilds; unrestrained competition; usury; and the concentration of
property into few hands.[19] All of these problems, though, really point to the last; the
lack of a reasonable alternative to the guilds, the unrestrained competition of our so-
called free market, and the usurious practices of our business all result in the
overconcentration of productive property into the hands of a few, wealthy capitalists.
This remains the defining characteristic of our current system.
At first, this assertion seems counterintuitive. As one prominent Distributist has pointed
out, “when we waltz into our local Wal-mart,” it appears that there is “a rich variety of
products provided by a vast number of firms, a situation which affords entrepreneurs
many opportunities to enter the market and workers many places to sell their labor.”[20]
But while our economy appears to be diverse in this way, in reality the producers‟ club
is quite rarified. Almost all beers, for example, are produced in factories owned by only
two companies, Anheuser-Busch InBev, which holds 50% of the American market,[21]
and SABMiller, which owns a tad less than 30%.[22] This takes up offerings like all the
various Bud brands, Coors, Miller, Molson, Beck‟s, Labatt‟s, Busch, Bass, Stella
Artois, and more (not to mention some Mexican beers owned by Grupo Modelo, of
which 50% is owned by InBev). This is only one example, and not even the most
egregious. Optical products|eyeglass and sunglass frames particularly are almost all
owned by Luxottica. You may buy some Ray-Bans, Chanels, or Oakley‟s; but they are
all owned by Luxottica. Lenscrafters? Luxottica. Sunglass Hut? Luxottica. Pearle
Vision? Luxottica. And so it goes. The media–even on the Internet–are owned and run
primarily by only eight companies: Google, Microsoft, Yahoo, News Corporation, NBC
Universal, Viacom, Time Warner, and Disney.[23] A whopping 93.5% of server
processor microchips are made by Intel; another 6.5% are made by AMD.[24] The list
goes on and on.
And such market concentration is a definite problem, as the Pope himself pointed out.
Indeed, the fact that “the hiring of labor and the conduct of trade are concentrated in the
hands of comparatively few” is a problem so severe that it has laid “upon the teeming
masses of the laboring poor a yoke little better than that of slavery itself.”[25] Nor is
this mere hyperbole; as the great Catholic historian Hilaire Belloc observed, wealth is
necessary to human existence, and “[t]herefore, to control the production of wealth is to
control human life itself.”[26] Capitalist society‟s tendency toward the ever-increasing
concentration of the means of producing wealth, then, is also a tendency toward the
control of life by the owning few, exercised on the non-owning many. This limits the
economic, and therefore political, significance of the bulk of the population while
giving the few owners of productive property a great deal of power over the state.
The great pope ended his encyclical with an appeal to Catholics throughout the world:
We have now laid before you… the means whereby this most arduous question must be
solved. Every one should put his hand to the work which falls to his share… Those who
rule the commonwealths should avail themselves of the laws and institutions of the
country; masters and wealthy owners must be mindful of their duty; the working class,
whose interests are at stake, should make every lawful and proper effort.[27]
And Catholics responded, attempting to imbue their societies, so corrupted by the
revolution, with the principles of a Catholic social order. They devised systems which
would apply those principles toward definite goals in particular societies. One such
system acquired the name “Distributism.”
Distributism attempts to resolve these problems by recourse to an ancient principle of
social interaction, distributive justice, the concept from which Distributism takes its
name. Justice in general is, of course, “the greatest of virtues, and „neither evening nor
morning star‟ is so wonderful.”[28] More specifically, distributive justice is that virtue
“according to which a ruler or steward gives to each one according to his own
worth.”[29] The importance Distributism places on distributive justice is supported by
Leo XIII himself, who taught that maintaining distributive justice toward all classes of
society is “the first and chief” of a ruler‟s duties.[30]
Distributism applies the principle of distributive justice to property, particularly to
productive property. Pope Leo taught us that “[t]he law… should favor ownership, and
its policy should be to induce as many as possible of the people to become owners,”[31]
noting that “[m]any excellent results will follow from this; and, first of all, property will
certainly become more equitably divided.”[32] It is clear, further, that Pope Leo is
speaking here of the distribution of productive property, not property simply, for he
continues by arguing that this policy would greatly increase production, and the only
type of property he specifically mentions is land, the epitome of the productive
asset.[33]
The just distribution of productive property defines Distributism; indeed, one of its
founding lights, Hilaire Belloc, defined what he called “the distributive state” in just
those terms.[34] While in a socialist society none are owners, and in a capitalist society
only a few are owners, in a Distributist society most are owners of productive property.
This is the defining characteristic of Distributism: the widescale distribution of
productive property throughout society, such that ownership of it is the norm, rather
than the exception. Such distribution is the best way of ensuring that the economic
rights of man are respected; that men can pursue their livelihoods with the greatest
possible independence; and that society can exist as a single harmonious whole, without
the vicissitudes of class hatreds and constant economic unrest which plague all of our
current systems.
An Introduction to Distributism II
By Donald P. Goodman III / 17 October 2011
The widespread distribution of productive property is the primary goal of Distributism;
however, other principles also inform Distributism‟s pursuit of this goal. The first of
these is the principle of subsidiarity. Pope Leo XIII speaks little about it; however, Pope
Pius XI, in a daughter encyclical Quadragesimo Anno, teaches it very clearly. The
principle of subsidiarity is the simple notion that
[J]ust as it is a crime to take away and hand over to the community those things which
can be done with proper struggle and industry by single men, so also it is an injury, a
grave fault, and a disruption of right order to summon to the larger and higher society
those things which can be done and excelled by smaller and lower communities.[35]
Put simply, subsidiarity dictates that whatever can be done by a smaller unit should not
be done by a larger one. This principle clearly leads to the greater distribution of
productive property. There is no reason for much of our production of wealth to be so
concentrated; Distributism would encourage this overconcentration to be remedied,
spreading ownership of productive property more broadly throughout the populace.
It‟s important to remember that this principle works both ways. Pius XI notes that “it is
rightly argued that certain types of goods must be reserved to the republic since they
bear such great power with them, [power] so great that it cannot be permitted to private
men by a sound republic.”[36] Nuclear power, an extensive train system, or
communications systems might fall into this category. Subsidiarity does not exclude
higher authorities from all functioning in society; it simply ensures that lower
authorities are not deprived of their rightful role. Distributists respect both sides of the
subsidiarity coin; they seek to trust to the state those industries which are so powerful
that they carry the potential to dominate the state, while at the same time ensuring that
productive property is kept in the smallest possible units, which means that it is as
widely distributed among families as possible.
It is true that modern industries are often not amenable to wide scale distribution in the
traditional sense; after all, an aircraft factory is not a shoemaker‟s shop. But this does
not mean that the workers in such factories cannot become owners. Despite our living in
a capitalist society, many workers have managed to gain a share in the productive
property which they work, and these workers have often been very successful. Spain‟s
Mondragon[37] and the many cooperatives in Italy‟s Emilia Romagna region[38] have
proven to the world that worker-owned cooperative production can be just as successful,
or even more successful, than the highly centralized production that has unfortunately
characterized the industrial age. These and other models of worker ownership can allow
productive property to be widely distributed throughout the citizenry even in industries
which necessarily require large and centralized works.
The other vital principle which forms Distributism‟s pursuit of widely distributed
productive property is solidarity. Solidarity is the recognition that a state is a single
whole that is possessed not only of many individual goods, but also a single common
good.[39] It recognizes the fundamental precept of traditional and Catholic social
thinking that the man “who by nature and not by mere accident is without a state, is
either a bad man or above humanity; he is… either a beast or a god.”[40] Leo XIII
taught that “[c]ivil society exists for the common good, and hence is concerned with the
interests of all in general, albeit with individual interests also in their due place and
degree.”[41] The organization entrusted with ensuring that particular goods are kept
within proper limits and directed toward the common good is the state.[42] Therefore,
keeping in mind the principle of subsidiarity, the state guides economic life, including
its subsidiary corporations (such as workingmen‟s associations[43]), toward the
common good, while individual corporations pursue their own particular goods within
that framework. This notion of many particular goods subordinated to and cooperating
toward a single common good is what we mean by solidarity.
Solidarity has many repercussions in economic thought. It means, for example, that
competition, though just within certain limits,[44] cannot serve as the basis for a just
economic order[45]; in other words, whatever benefit that businesses seek to obtain by
competition cannot come at the cost of the public good. Truly, this is anathema in an
age when corporations routinely justify their butchering of the national and even
international economies by their obligations to make profits for their shareholders, but it
is nevertheless the case. When we remember the singular nature of the state, and the fact
that we are all parts of a whole seeking our particular goods within a whole seeking its
common good, the proposition that competition is a valid defining principle for
economic interaction is clearly untenable.
Furthermore, what has traditionally been known as the preferential option for the poor
follows directly from the notion of solidarity. Leo XIII stated that “when there is
question of defending the rights of individuals, the poor and badly off have a claim to
especial consideration… wage-earners, since they mostly belong in the mass of the
needy, should be specially cared for and protected by the government.”[46] The Church
has always taught that “in protecting these rights of private citizens, [the state] must
have especially in mind those of the weak and the poor.”[47] The state is one, and all
parts of the state are parts of a whole working toward the same common good; it only
makes sense, then, that special care should be taken by the whole for those parts which
are least able to help themselves.
So how is a Distributist society to be established? That question is impossible to answer
generally. What works perfectly in Rochester may be a disaster in Rome, Italy; indeed,
what works perfectly in Rochester may be a disaster in Rome, New York. Means for
encouraging widespread ownership of productive property, always respectful of the
principles of subsidiarity and solidarity, will vary by place, condition, climate,
economy, culture, government, and innumerable other variables. Catholics need to
dedicate themselves to consideration of these measures in their own areas and
situations, tailoring them to specific conditions. One condition, however, will be the
same always and everywhere, a condition identified by Pope Leo well over a century
ago:
[S]ince religion alone, as We said at the beginning, can avail to destroy the evil at its
root, all men should rest persuaded that [the] main thing needful is to re-establish
Christian morals, apart from which all the plans and devices of the wisest will prove of
little avail.[48]
We cannot reclaim society for Christ unless we first reclaim ourselves. To that task, first
and foremost, distributists, like all men, must devote all their strength.
Notes
[1] St. Luke 10:7.
[2] Didache: The Teaching of the Twelve Apostles(Peter Kirby, trans.; 2001), available
at http://earlychristianwritings.com/text/didache-roberts.html.
[3] Id.
[4] A superb example of such thinking is St. Thomas Aquinas, De Regimine Principum;
vel De Regno, available at http://gorpub.freeshell.org/books.html#deregno.
[5] See, e.g., Dr. William Luckey, The Intellectual Origins of Modern Catholic Social
Teaching on Economics: An Extension of a Theme of Jes�us Huerta de Soto 9 (speech
given to the Austrian Scholars Conference at Auburn University, 23-25 March 2000)
(arguing that given research “which ought to have been available to [the pope],” “it is
hard to excuse Leo XIII”).
[6] See, e.g., id. at 1; see also Rev. Maciej Zieba, O. P., From Leo XIII’s Rerum
novarum to John Paul II’s Centesimus Annus 5:1 Journal of Markets & Morality 159
(Spring 2002) (arguing that part of Rerum novarum„s “tendency is brought to a halt and
partly turned around in the first two social encyclicals of John Paul II”).
[7] Pope St. Pius X, Singulari quadam (24 September 1912) (“[i]taque primo loco
edicimus catholicorum omnium ocium esse. . . tenerer miter proterique non timide
christian� veritatis principia, Ecclesi� catholic� magisterio tradita, ea pr�sertim qu�
Decessor Noster sapientissime in Encyclicis Literris Rerum novarum exposuit”). All
translations from the Latin in this work are the author‟s, unless otherwise noted.
[8] Leo XIII, Rerum novarum, no. 47 (teaching that “[t]he right to possess private
property is derived from nature, not from man”). All citations from Rerum novarum are
from the English translation available at http://www.vatican.va.
[9] Id. (teaching that “the State has the right to control its [private property's] use in the
interests of the public good”).
[10] Id. at no. 45.
[11] Id. at no. 20 (teaching that “before deciding whether wages [are] fair… wealthy
owners and all masters of labor should be mindful… that to exercise pressure upon the
indigent and destitute for the sake of gain, and to gather one‟s profit out of the need of
another, is condemned by all laws, human and divine”); see also nos. 43{45.
[12] Id. at no. 37.
[13] Id. (teaching that “[t]he richer class have many ways of shielding themselves,…
whereas the mass of the poor have no resources of their own… for this reason [ ] wage-
earners, since they mostly belong in the mass of the needy, should be specially cared for
and protected by the government”).
[14] Id. at no. 39.
[15] Id. at no. 41.
[16] Id. at no. 3.
[17] Id. at no. 42.
[18] Id. at no. 45.
[19] Id. at no. 3.
[20] John M�edaille, Neo-Feudalism and the Invisible Fist in The Distributist Review,
available at http://www.distributistreview.com/mag.
[21 Duane D. Stanford, InBev to Buy Anheuser-Busch, Gains Top Market Share in
Bloomberg (14 July 2008), available at http://\-www.\-bloomberg.\-com/\-apps/\-
news?pid=newsarchive\&sid=aDm1PPbwrdHc.
[22] Tom Daykin, InBev looks at SABMiller in JSOnline (May 29, 2008), available at
http://www.jsonline.com/business/29568214.html.
[23] Dmitry Krasny, And Then There were Eight: 25 Years of Media Mergers, from GE-
NBC in Mother Jones (March/April 2007).
[24] James Niccolai, Intel grabs server market share from AMD, says IDC in Network
World (19 August 2010), available at http://www.networkworld.com.
[25] Leo XIII, Rerum novarum, no. 3.
[26] Hilaire Belloc, The Servile State (The Liberty Fund, 1977).
[27] Id. at no. 62.
[28] Aristotle, Ethica Nicomachea in The Basic Works of Aristotle 1003 (Benjamin
Jowett trans., Richard McKeon ed., Random House 1941).
[29] St. Thomas Aquinas, Summa Theologica Ia, Q. 21, Art. 1 (“secundum quam aliquis
gubernator vel dispensator dat unicuique secundum suam dignitatem”).
[30] Leo XIII, Rerum novarum, no. 33.
[31] Id. at no. 46.
[32] Id. at no. 47.
[33] Id.
[34] Hilaire Belloc, The Servile State (The Liberty Fund 1977).
[35] Pius XI, Quadragesimo Anno, no. 79 (“sicut qu� a singularibus hominibus proprio
marte et propria industria possunt perci, nefas est eisdem eripere et communitati
demandare, ita qu� a minoribus et inferioribus communitatibus eci pr�starique
possunt, ea ad maiorem et altiorem societatem avocare iniuria est simulque grave
damnum ac recti ordinis perturbatio”.
[36] Pius XI, Quadragesimo Anno, no. 114 (“Etenim certa qu�dam bonorum genera rei
public� reservanda merito contenditur, cum tam magnum secum ferant potentatum,
quantus pravatis hominibus, salva re publica, permitti non possit”)
[37] See, e.g., Dr. Race Matthews, Mondrag�on and the Global Economic Meltdown in
The Distributist Review (6 June 2010), available at http://distributistreview.com/mag.
[38] See, e.g., John Restakis, The Lessons of Emilia Romagna (30 April 2005), available
at http://www.geo.coop/les/BolognaVisits Lessons ER.pdf.
[39] For a lengthier discussion of this, see the author‟s Individualism and the State (23
July 2010), available at http://distributistreview.com/mag.
[40] Aristotle, Politics 1131{32 (Benjamin Jowett trans.) in The Basic Works of
Aristotle (Richard McKeon ed., New York: 1941).
[41] Leo XIII, Rerum novarum, no. 51.
[42] Pius XI, Quadragesimo Anno, no. 49 (“[o]cia vero h�c singillatim denire, ubi id
necessitas postulaverit neque ipsa lex naturalis pr�stiterit, eorum est qui rei public�
pr�sunt”).
[43] Leo XIII, Rerum novarum, no. 49.
[44] Pius XI, Quadragesimo Anno, no. 88 (“[a]t liberum certamen, quamquam dum
certisnibus contineatur, �quum sit et sane utile”).
[45] Id. (“rei �conomic� rectus ordo non potest permitti libero virium certamini”).
[46] Leo XIII, Rerum novarum, no. 37.
[47] Pius XI, Quadragesimo Anno, no. 25 (“in ipsis protegendis privatorum iuribus,
pr�cipue inrmorum atque inopum rationem esse habendam”).