” Catholic social doctrine is not a surrogate for capitalism. In fact, although decisively condemning ‘socialism,’ the church, since Leo XIII’s Rerum Novarum, has always distanced itself from capitalistic ideology, holding it responsible for grave social injustices (cf. Rerum Novarum)”- Blessed John Paul II.
While wages stagnate and poverty increases, corporate profits soar. On the “upside down economy”, from The American Prospect:
“…profits are increasing because corporations are getting by with fewer workers than they employed before the crash of 2008, and they’re paying those workers less. Wages and compensation (that is, wages plus benefits) now make up the smallest shares of GDP that they have in 50 years, and their decline has proceeded without interruption since 2001. According to a report from JP Morgan Chase’s Chief Investment Office, two-thirds of the increase in corporate profits between the end of the dot-com bust and the collapse of 2008 is directly attributable to the decline in the wages they paid their employees. As the share going to profits has continued to increase since that report appeared, and the share going to wages has kept on decreasing, the centrality of wage suppression to profit maximization has continued to grow.”
Read it all here.