In his first address to the College of Cardinals, Leo XIV explained his choice of name was inspired by “Pope Leo XIII [who] in his historic Encyclical Rerum Novarum addressed the social question in the context of the first great industrial revolution.”
I knew of Rerum Novarum as the foundation of Catholic Social Teaching, and I had accepted the common claim that it rejects both socialism and capitalism. But there was a certain dissatisfaction about this understanding, a sense that I must have been missing something. As the daughter of Cuban exiles, I could not fathom how the Church could reject these two systems to the same degree when one had lifted millions out of poverty while the other had slaughtered millions in the name of equality.
So, now that Leo XIV had given this encyclical a place of honor in his new pontificate, I stopped relying on secondhand interpretations and read it for myself.
What Does Rerum Novarum Really Say?
As I read it, disbelief gave way to outrage. How misled I had been! This was no evenhanded critique of socialism on the one hand and capitalism on the other! It was a strong condemnation of socialism backed by a vigorous, principled defense of private property and the family. And, even more radically for our day, it was an explanation of why socialism hurts the poor rather than helps them. Leo never once promotes government redistribution of wealth as a general policy, but he does say—several times!—that only when private property is held sacred (yes, sacred) can we truly help the needy.
I could hardly think of a more provocative statement these days, certain to make most modern social justice warriors uncomfortable.
And it seems others feel the same. The opening paragraph of the Wikipedia entry on Rerum Novarum (RN) contains what I now know are multiple misrepresentations:
It supports the rights of labor to form trade unions [true], and rejects both socialism and capitalism [false] while affirming the right to private property [true, though vastly understated] and to a living wage [misleading, given how the term is used today].
Does RN champion the right to form unions governed by Christian morality? Absolutely, and with good reason.
Does it critique the treatment of workers as means to an end, inhumane working conditions, defrauding workers of their wages, and other practices where the rich and powerful treat workers as slaves? Yes, strongly. But capitalism hardly has a monopoly on these—it’s got nothing on atheistic Communism. And as the horrors of Communism began to be made known two generations after Leo XIII wrote RN, the Church has left absolutely no doubt that Communism is evil and irreconcilable with Christianity.
What Is a “Living Wage”?
One point from the Wikipedia entry is especially salient today: the “living wage” claim. Does RN argue that workers have the right to a living wage? Yes, though it does not use that term. Here is how RN expresses the idea (emphasis added):
Let the working man and the employer make free agreements, and in particular let them agree freely as to the wages; nevertheless, there underlies a dictate of natural justice more imperious and ancient than any bargain between man and man, namely, that wages should support a frugal and well-behaved wage-earner…. If a workman’s wages be sufficient to enable him comfortably to support himself, his wife, and his children, he will find it easy, if he be a sensible man, to practice thrift, and he will not fail, by cutting down expenses, to put by some little savings and thus secure a modest source of income. Nature itself would urge him to this. We have seen that this great labor question cannot be solved save by assuming as a principle that private ownership must be held sacred and inviolable. The law, therefore, should favor ownership, and its policy should be to induce as many as possible of the people to become owners. Many excellent results will follow from this; and, first of all, property will certainly become more equitably divided…
Do you believe the average Wikipedia reader thinks this is what “living wage” means? Sadly, the term is often used by those aiming to stoke division and envy, and nothing will put that fire out more quickly than realizing Catholic Social Teaching emphasizes property ownership as a natural right, requires wages to reflect the individual’s situation, and places demands on how employees spend their earnings. And that, Leo XIII argues, is how you get a more equitable distribution of property. Equity!