ETHICS OF CONSUMPTION: A ROMAN CATHOLIC VIEW

ETHICS OF CONSUMPTION: A ROMAN CATHOLIC VIEW
Charles K. Wilber
University of Notre Dame
THE TRADITION OF CATHOLIC SOCIAL THOUGHT

The social encyclicals and pastoral letters-- from Pope LeoXIII's Rerum Novarum in 1891 through the U.S. Bishops' Economic Justice for All: Pastoral Letter on Catholic Social Teaching and the U.S. Economy to Pope John Paul II's Centesimus Annus-- that form the foundation of Catholic Social Thought (CST), are fundamentally moral documents not economic treatises. The tradition of CST is rooted in a commitment to certain fundamental values-- the right to human dignity, the need for human freedom and participation, the importance of community, and the nature of the common good. These values are drawn from the belief that each person is called to be a co-creator with God, participating in the redemption of the world and the furthering of the Kingdom. This requires social and human development where the religious and temporal aspects of life are not seperated and opposed to each other. .
As a result of these fundamental values two principles permeate Catholic Social Thought. The first is a special concern for the poor and powerless which leads to a criticism of political and economic structures that oppress them. The second is a concern for certain human rights against both the collectivist tendencies of the state and the neglect of the free market. .
Ever since Rerum Novarum, Catholic Social Thought has taught that both state socialism and free market capitalism violate these principles. State socialism denies the right of private property, excites the envy of the poor against the rich leading to class struggle instead of cooperation, and violates the proper order of society by the state usurping the role of individuals and intermediate social groups. [RN, para. 7-8; CA, para. 13-14] Free market capitalism denies the concept of the common good and the "social and public character of the right of property" [Quadragesimo Anno, para. 46], including the principle of the universal destination of the earth's goods [RN, para. 14; CA, para. 6]; and violates human dignity by treating labor merely as a commodity to be bought and sold in the marketplace. [RN, para. 31; QA, para. 83; CA, para. 33-35] Pope John Paul II summarizes the thrust of Catholic Social Thought when he says: "The individual today is often suffocated between two poles represented by the State and the marketplace. At times it seems as though he [she] exists only as a producer and consumer of goods, or as an object of State administration. People lose sight of the fact that life in society has neither the market nor the State as its final purpose, since life itself has a unique value which the State and the market must serve." [CA, para. 49] .
CST repudiates the position that the level of unemployment, the degree of poverty, the quantity of environmental destruction, and other such outcomes should be left to the dictates of the market. Emphasis on the common good means that the community has an obligation to ensure the right of employment to all persons [CA, para. 15], to help the disadvantaged overcome their poverty [CA, para. 19, 40], and to safeguard the environment. [CA, 37] .
Since the primary "signs of the times" that Pope John Paul II focuses on in Centesimus Annus (the latest statement of CST) is the collapse of Communism in Eastern Europe, he emphasizes the limits to the role of the state and the utility of markets in providing incentives for production. However, this is a highly qualified endorsement as when he says the efficiency of markets in fulfilling human needs is true only for those needs which are "'solvent', insofar as they are endowed with purchasing power, and for those resources which are 'marketable', insofar as they are capable of obtaining a satisfactory price. But there are many human needs which find no place on the market." [CA, para. 34] Thus, markets do not adequately fulfill the needs of those who have little income or provide for non-marketable goods such as a clean environment and participation in the workplace. He also registers his fears that unrestrained markets result in environmental destruction [CA, para. 37], promote a soulless consumerism [CA, para. 36], and destroy the human environment needed by a community of persons. [CA, para. 38] .
This brief review of CST shows that its focus from the beginning has been on the problem of poverty and marginalization of the disadvantaged, first in the industrial countries and then of the Third World. It is only in the last 25 years that concern about too much consumption by the rich rather than too little consumption by the poor has played a role in CST. .
THE ETHICS OF CONSUMPTION
While there are a number reasons to be concerned with the ethics of consumption, there are three that have become prominent in CST. First, while it is recognized that consumption spending helps people by creating jobs, excessive consumption by some individuals and nations while at the same time other individuals and nations suffer from want is considered morally unacceptable. Income spent on luxuries could have been made available to others for their necessities. Typical is Pope Paul VI's statement: "...the superfluous wealth of rich countries should be placed at the service of poor nations...Otherwise their continued greed will certainly call down upon them the judgment of God and the wrath of the poor..." [Populorum Progressio, para. 49] The problem of consumption spending to buy products produced under sweatshop conditions is recognized but usually treated under the heading of the rights of workers and the obligations of employers.
Second, excessive consumption which threatens the earth's environment is also considered morally unacceptable. Pope John Paul II recently stated: "Equally worrying is the ecological question which accompanies the problem of consumerism and which is closely connected to it. In his [or her] desire to have and to enjoy rather than to be and to grow, man [or woman] consumes the resources of the earth and his [or her] own life in an excessive and distorted way." [CA, para. 37]
Third, treating consumption as the primary goal of life-- that is, focusing on having instead of being-- is seen as detrimental to human dignity. It is this third concern that I will focus on in this paper. But first I want to compare CST to the mainstream economic theory that is dominant in our society.
In contrast to CST, economic theory is rooted in an individualist conception of society. Society is seen as a collection of individuals who have chosen to associate because it is mutually beneficial. The common good is simply the aggregate of the welfare of each individual. Individual liberty is the highest good, and, if individuals are left free to pursue their self-interest, the result will be the maximum material welfare.
Economic theory focuses on people as hedonists who want to maximize pleasure and minimize pain. It assumes that pleasure comes primarily from the consumption of goods and services; and that pain comes primarily from work and from parting with your income. Thus, given resource constraints, the goal of the economy should be to maximize the production of goods and services. In short, more is better.
In modern industrial economies such as ours, it is perfectly rational for people to accept a philosophy of consumerism. People have little opportunity to choose meaningful work because the nature of jobs is determined by competitive pressures. The demand for labor mobility disrupts a satisfying sense of community. And the enjoyment of nature is attenuated by urbanization and the degradation of nature resulting from industrial and consumption practices. Thus, the only thing left under the individual's control is consumption. And it is true that consumption can substitute, however inadequately, for the loss of meaningful work, community, and a decent environment. With enough income people can buy bottled water, place their children in private schools, buy a mountain cabin, and obtain the education necessary to get a more interesting job.
However, when people are surveyed about their views on what the economy should do, some surprising results emerge. For example, a study by Scitovsky found that the simple increase in the amount of consumption in the U.S. has not increased peoples' happiness. Richard Easterlin discovered that a crucial component of such an evaluation was the perception of one's relative situation. Thus it would seem to be exceptionally difficult for an economy to improve its performance, for every relative gain would imply a relative loss, or no net gain! This reality and the confusion in our society between growth, which we place as a preeminent goal, and affluence, which by all standards we have clearly obtained, suggests that one of the problems of our society is to deal with "the poverty of affluence."
The Catholic tradition condemns the materialist view of human welfare. In his 1968 encyclical, Populorum Progressio, Pope Paul VI wrote:
Increased possession is not the ultimate goal of nations or of individuals. All growth is ambivalent. It is essential if man [or woman] is to develop as a man [or woman], but in a way it imprisons man [or woman] if he [or she] considers it the supreme good, and it restricts his [or her] vision. Then we see hearts harden and minds close, and men [and women] no longer gather together in friendship but out of self-interest, which soon leads to oppositions and disunity. The exclusive pursuit of possessions thus becomes an obstacle to individual fulfillment and to man's [or woman's] true greatness. Both for nations and for individual men [or women], avarice is the most evident form of moral underdevelopment. [para. 19]
On the twentieth anniversary (1987) of Populorum Progressio, Pope John Paul II wrote in Sollicitudo Rei Socialis: "All of us experience first hand the sad effects of this blind submission to pure consumerism: in the first place a crass materialism, and at the same time a radical dissatisfaction because one quickly learns...that the more one possesses the more one wants, while deeper aspirations remain unsatisfied and perhaps even stifled." [Para. 28] In his latest encyclical-- Centesimus Annus-- marking the one hundredth anniversary of Rerum Novarum, Pope John Paul II writes: "It is not wrong to want to live better; what is wrong is a style of life which is presumed to be better when it is directed toward `having' rather than `being,' and which wants to have more, not in order to be more but in order to spend life in enjoyment as an end in itself." [para. 36]
CONSUMPTION AND HUMAN WELFARE: AN ALTERNATIVE
It is not sufficient to simply reject the neo-classical economics position that satisfying individual preferences, as expressed in the market, is the only measure of economic welfare. Alternatives must be proposed and developed. Let me sketch out one possible alternative.
Many working within the Roman Catholic tradition would argue that we must broaden our view of human welfare from that of a simple consumer of goods and services with consumer sovereignty as the goal. Instead, drawing upon cross-cultural studies which have attempted to find absolute needs or needs that are expressed in a variety of societies, three components of human welfare can be specified for an economy.
The first is what Denis Goulet calls "lifesustenance,"which corresponds generally to physiological needs or basic material goods.People need the basic goods that are necessary for life adequate food, water, housing, clothing, education, and health care-- and an economy is successful if it can provide them.
How can basic material goods be specified? One manner is to differentiate among three types of goods. The first are necessities such as food and water. Within some limits these needs can be specified. The second type of goods are "enhancement goods," which make life more vital, more interesting, more worth living. Examples might be music, various forms of entertainment, some household goods, and so on. The third level of goods involves what are commonly known as luxury goods. Driving a Cadillac instead of a Chevrolet, buying a marbletopped table instead of a wooden one, and walking on a llama rug instead of polyester are all instances of consuming luxury goods.
We can all agree that basic needs must be met. Most believe that enhancement goods are worthy of pursuit. There is less accord on luxury goods. Traditional economics in the U.S. has claimed that individual wants are unlimited and that luxury goods satisfy wants, as do basic goods. If individuals want Cadillacs and llama rugs, and if the economy can produce such luxuries, it ought to. A second component of human welfare is esteem and fellowship. An economy should provide a sense of worth, of dignity to its citizens. One's goods can be a measure of societal esteem, but surely there are other important elements. The institutions in which citizens work should support them physically and give them a sense of belonging and of contributing to an important undertaking. Society should have clubs, churches, or other entities which support the individual. If the family is the basic social and economic unit, as is the case in the U.S., the economy should provide support and encourage in families a sense of selfesteem that can help sustain them. Another term for this is fellowship; the economy should promote right relations among its participants, and to the extent it can, should keep life from being "nasty and brutish," while providing basic material goods to lengthen it.
For no society can function smoothly, without disruptive tensions, if there is no fellowship among its members. If people are alienated from one another and society is fractured into myriad selfinterested and selfcentered individuals or groups, society will not long survive. If no genuine concern for one's neighbors exists and if empathy for others disappears, then each small selfreliant entity (whether this be family, occupational group, or individual) will eventually withdraw unto itself and live at odds with others. No social system can prevail which endorses or engenders such selfcenteredness. Even if material economic wellbeing were at the heart of social success, surely fellowship would be the life blood that sustains the community, the cohesion that makes one individual feel a closeness and a unity of purpose with all others in that society, whether known personally or not. Consequently, a key component of human welfare, in addition to the satisfaction of people's material needs, is the growth of widely shared esteem that yields a lifegiving and lifesustaining fellowship.
This implies an element of equity among citizens. No modern society could provide esteem or fellowship which gave minimal income to most of the population, but fabulous wealth to a few families. Equity, of course, does not necessarily mean equality, but it does mean that there be some consensus regarding the justness of the distribution of wealth and income.
The third component of human welfare is freedom. However freedom is a difficult goal to specify clearly. It obviously does not mean that all individuals may do whatever they wish, for that would be anarchy and the death of society. At its weakest, an increase in freedom means that the range of options open to the individual or the group has increased, that there are more choices available. This has its physical side in choice of goods, but it can also operate in other spheres such as the political or religious.
There are three component parts to the goal of freedom. The first, and the one which is usually at the center of much economic theorizing in the United States, is the provision of consumer sovereignty. Individuals should be able to choose the goods that they wish to consume.
The second part is worker sovereignty. People must have a choice of jobs, jobs they find meaningful and that enhance their human capacities. There must be mechanisms for finding peoples' preferences on work and creating the types of jobs required. A variety of mechanisms could satisfy this need: labor mobility among jobs of widely different character, control by workers over their job situations, or provision of capital resources to laborers to allow them to establish their own undertakings. Whatever the mechanisms, this characteristic is important because work plays an important part in human development.[See LE
Third, a society must provide citizen sovereignty, a mechanism to aggregate peoples' preferences for community. What kind of community do people want? What kind of environment do they want? The concept of citizen sovereignty implies that a way to express preferences and to control communities is provided to the citizen. A number of mechanisms may be found which satisfy this requirement, in addition to the democratic voting procedures used in the U.S. One way of enhancing citizen sovereignty could be through strengthening local groups for citizen participation in decision making, e.g., parent-teacher organizations, zoning boards, and citizen review boards of police departments and other public agencies. Or perhaps local residents might participate in the operation of local industries in their areas, by electing representatives to firms' boards of directors to minimize the negative aspects of industrial production such as noise and pollution. The absence of real citizen sovereignty generates conflicts among groups in society. The reality of such conflict has been denied over the recent past, but is becoming a central element in local political debate. It can be either a destructive or a constructive force in charting the course of the economy.
In the light of traditional economists' claims about the importance of incentives for the operation of markets, is the treatment of human welfare in CST viable. It could be argued that this broadening of the concept of human welfare may be impossible because of: a) the way markets create a bifurcation of people as consumers/workers, coupled with the competitive pressures that force business firms to become ever more efficient; and b) the consumerism which is rooted in human greed and the workings of the business system.
Let me take the provision of meaningful work as an example. Because of competition one firm cannot improve working conditions, raise wages, or democratize the workplace if the result is an increase in production costs(The easy case is where improved working conditions are also more efficient and thus both workers and employers have an incentive to make the changes). Competition from other firms will keep the costs from being passed on in higher prices and, thus, profits will decline. The bifurcation of people into consumers/workers means that what they prefer as consumers-- lower prices-- makes what they prefer as workers-- better working conditions and wages, more meaningful work-- less obtainable. Reliance on the market as the primary decision making mechanism bifurcates the decision into separate areas. What people want as workers will not be ratified by those same people as consumers. Since competition is now worldwide, even a whole country faces difficulties in mandating workplace improvements that raise costs.
The problem is reinforced, first by the fact that millions of Americans live in poverty and consume too little not too much, and second by both human greed and the constant effort of business to promote consumption as the ultimate end of life. This creates constant pressure to reduce prices by reducing labor costs, undercutting attempts to improve the quality of work life.
Why do we accept this? The process, usually implicit, of teaching people that true happiness comes from consumption permeates our entire culture and begins at a very early age. Gintis and Weaver provide a vivid example from an old Sears Roebuck Christmas catalogue.
Sears advertised...a new doll named Shopping Sheryl. Sheryl comes equipped with a supermarket which has a rotating checkout counter, a ringing cash register, a motorized check-out stand, shelves, cart, and groceries. Sheryl is a vinyl doll which picks things up with her magnetized right hand and grasps with her left hand. We can visualize Sheryl in her supermarket, picking and grasping, picking and grasping.
This is really the final result of the evolutionary process. People have emerged from the muck and the ooze, overcome the hardships imposed by nature, built dwellings, invented agriculture, etc.-- so that our children can have Shopping Sheryl and learn early in life that the true purpose of life is consumption.
WHAT NEEDS TO BE DONE?
Can anything be done to reduce the emphasis on consumption and to increase the possibilities for meaningful work and the restoration of community? I am not optimistic but as a Christian and as an economist I would focus on two possibilities-- the inculcation of more appropriate moral values and the judicious use of financial incentives.
Moral Values. First, We need to develop habits of morally constrained behavior, reinforced by cultural practices, so that short-run rewards become less important. We need values that transcend the narrow self-interest of the economic model as the guide for individual behavior. Is it possible to rebuild a moral consensus wherein we re-learn habits of morally constrained behavior? Yes, this is a major point of CST, but economists must re-think their view of people as simply self-interested maximizers. They have made a major mistake in treating love, benevolence, and particularly public spirit as scarce resources that must be economized lest they be depleted. This is a faulty analogy because, unlike material factors of production, the supply of love, benevolence, and public spirit is not fixed or limited. As Hirschman says: "first of all, these are resources whose supply may well increase rather than decrease through use; second, these resources do not remain intact if they stay unused." These moral resources respond positively to practice, in a learning-by-doing manner, and negatively to non-practice. Obviously there are limits, if overused they become ineffective.
A good example is a comparison of the system of blood collection for medical purposes in the United States and in Great Britain. In the U.S. we gradually replaced donated blood with purchased blood. As the campaigns for donated blood declined, because purchased blood was sufficient, the amount of blood donated declined. In effect, our internalized benevolence towards those unknown to us, who need blood, began to atrophy from nonuse. In contrast, blood donations remained high in England where each citizen's obligation to others was constantly emphasized.
In his book, The Gift Relationship, Richard Titmuss questions the efficiency of market relationships based on purely monetary self-interest principles. Instead he hypothesizes that in some instances, such as blood giving, relying on internalized moral values (in this case, altruistic behavior) results in a more efficient supply and better quality of blood.
Titmus argues that the commercialization of blood giving produces a system with many shortcomings. A few of these shortcomings are the repression of expressions of altruism, increases in the danger of unethical behavior in certain areas of medicine, worsened relationships between doctor and patient, and shifts in the supply of blood from the rich to the poor. Furthermore, the commercialized blood market is bad even in terms of nonethical criteria.
In terms of economic efficiency it is highly wasteful of blood; shortages, chronic and acute, characterize the demand-and-supply position and make illusory the concept of equilibrium. It is administratively inefficient and results in more bureaucratization and much greater administrative, accounting, and computer overheads. In terms of price per unit of blood to the patient (or consumer), it is a system which is five to fifteen times more costly than voluntary systems in Britain. And, finally, in terms of quality, commercial markets are much more likely to distribute contaminated blood; the risks for the patient of disease and death are substantially greater. Freedom from disability is inseparable from altruism.
It is noteworthy that since the AIDS crisis started in the United States, physicians regularly recommend that patients scheduled for non-emergency surgery donate their own blood in advance.
The commercialization of certain activities that historically were perceived to be within the realm of altruism results in a conceptual transformation that inhibits the expression of this altruistic behavior. Contrary to the commonly held opinion that the creation of a market increases the area of individual choice, Titmuss argues that the creation of a market may inhibit the freedom to give or not to give.
The supply of blood provides a clear illustration of the problem. A person is not born with a set of ready-made values, rather the individual's values are socially constructed through his being a part of a family, a church, a school and a particular society. If these groups expect and urge people to give their blood as an obligation of being members of the group that obligation becomes internalized as a moral value. Blood drives held in schools, churches, and in Red Cross facilities reinforce that sense of obligation. As commercial blood increases, the need for blood drives declines. Thus, the traditional reinforcement of that sense of obligation declines with the result that the embodied moral value atrophies. In addition, the fact that you can sell your blood creates an opportunity cost of donating it free. Finally, there is an information problem. As blood drives decline it is rational for an individual to assume that there is no need for donated blood. The final outcome is that a typical person must overcome imperfect information, opportunity costs, and a lack of social approbation to be able to choose to donate blood.
This suggests that the type of policy recommended will have implications for the type of society that will develop. Inherent in the type of policy suggested is a preference as to the motivational attitudes that are appropriate and should be encouraged. The motivations on which the results are based are also important, that is, how we achieve these results needs to be addressed.
That the distribution of beliefs and behaviors at time tinfluences individual beliefs and behaviors at time t+1 is the single most basic finding of the voluminous research within sociology on the behavior of groups.
Beliefs and preference structures are important because they are the basis for individual motivation. An understanding of these also gives us a notion as to what are and what will encourage the continuation of certain valued feelings. When economists look to self-interest to solve social problems they are placing a higher value on and promoting their own beliefs about what is proper motivation.
Even though neo-classical economists are seldom interested in why people behave the way they do, society usually places a high value on motivations. This is readily evident if one looks at the legal system. Consider a situation in which a person shoots and kills someone else. The end result is the same but depending on the motivation the act may be judged to be murder,self-defense, or even just an accident.
In short, three conclusions can be derived from the issues raised by Titmuss. First, economic policies have a direct effect on both market outcomes and individual values. Second, economists should drop their narrow approach to human behavior and join the rest of society in giving attention to the effect that policies have upon values. How we achieve results is important. Finally, economists must recognize that the policy impact upon values exerts its own influence on future market activity. Thus, over time the type of values promoted by public action has significance even within the `efficiency' realm of traditional economic analysis
I don't want to leave the impression that ethically based behavior and self-interest are always mutually exclusive. Proximity to self-interest alone does not defile morality. Moral values are often necessary counterparts in a system based on self-interest. Not only is there a `vast amount of irregular and informal help given in times of need'; there is also a consistent dependence on moral values upon which market mechanisms rely. Without a basic trust and socialized morality the economy would be much more inefficient.
It is easy to forget one of Adam Smith's key insights. It is true he claimed that selfinterest leads to the common good if there is sufficient competition; but also, and more importantly, he claimed that this is true only if most people in society have internalized a general moral law as a guide for their behavior.
Peter Berger reminds us that `No society, modern or otherwise, can survive without what Durkheim called a `collective conscience,' that is without moral values that have general authority.' Fred Hirsch reintroduces the idea of moral law into economic analysis:
truth, trust, acceptance, restraint, obligation these are among the social virtues grounded in religious belief which...play a central role in the functioning of an individualistic, contractual economy....The point is that conventional, mutual standards of honesty and trust are public goods that are necessary inputs for much of economic output.
The point of this rather long section is that people are capable of changing their values. In fact a principal objective of publicly proclaimed laws and regulations is to stigmatize certain types of behavior and to reward others, thereby influencing individual values and behavior codes. While families, churches and schools play the most important role in shaping behavior and inculcating values, public laws have a role to play. For example, while law cannot make someone stop holding racist beliefs, it can punish certain types of racist behavior. With time that behavior, say refusing service in a restaurant, becomes delegitimized in public opinion.
Financial Incentives. The use of financial incentives to guide people's behavior is dear to an economist's heart. These range from the most general, such as a value-added tax on consumer goods, to highly targeted ones, such as excise taxes on luxury consumer goods or on the carbon content of goods.
However, extensive use of financial incentives will be very difficult if not impossible. Economic growth in the U.S. has been based on the value of individual consumption. The awesome power of modern advertising has spread the free market gospel the good life comes from increases in consumption of individually marketable goods and services. People are urged to believe they must have individual washers and dryers instead of laundromats, and private automobiles instead of public transportation. This phenomenon is particularly important when viewed in a worldwide context.
Large corporations have compounded the problem by competing through product innovation and differentiation resulting in an emphasis on stylistic and physical obsolescence. When goods are designed to be "thrownaway" after use, or to be used less than their physical capacity because of style changes, or constructed to fall apart sooner than necessary; the result is increased wastage of energy and natural resources and a need for people to continually buy more.
However, I am not completely without hope. Rising prices in the face of raw material shortages will force a reduction in some of these wasteful practices and coping with a worsening environment will leave fewer resources available for wasteful consumption. However, they will also create unemployment and a crisis in economic growth, not only in the U.S. but around the world, if we do not plan ahead. If we wait and do nothing until the crisis is upon us the adjustment will be painful indeed. Doing something in advance requires political action and, here, the record is not hopeful. President Carter tried to get a small tax increase on gasoline and was soundly defeated. His talk of limits was denounced as defeatist. President Clinton's idea of a carbon tax was a non-starter. Political courage has always been a rare commodity but appears to be in particularly short supply today.
This then is the challenge we face: how do we move from a consumption based economy to one that is also concerned about the quality of work and the importance of community without creating havoc in the world economy? The conservative majority pushes the idea of smaller government, tax cuts, and let people spend their money the way they want. This philosophy must be challenged with something other than the slightly milder version pushed by political liberals.
CATHOLIC SOCIAL THOUGHT DOCUMENTS
National Conference of Catholic Bishops,
Washington, D.C.
Pope Leo XIII. Rerum Novarum (On the Condition of Workers), May 15, 1891.
Pope Pius XI. Quadraesimo Anno (On Reconstructing the Social Order), May 15, 1931.
Second Vatican Council. Gaudium et Spes (Pastoral Constitution on the Church in the Modern World), December 7, 1965.
Pope Paul VI. Populorum Progressio (On Promoting the Development of Peoples), March 26, 1967.
Pope John Paul II. Laborem Exercens (On Human Work), September 14, 1981.
_________________. Sollicitudo Rei Socialis (On Social Concerns), December 30, 1987.
_________________. Centesimus Annus (100 Years After), May 1, 1991.
U.S. Catholic Bishops. Economic Justice for All: Pastoral Letter on Catholic Social Teaching and the U.S. Economy, November 18, 1986.
[Return to Recent Publications]