Well said.
This is why Pope Emeritus Benedict XVI has stated:
firstthings.com/article/2006/01/europe-and-its-discontents
EUROPE AND ITS DISCONTENTS
by Pope Benedict XVI
January 2006
But in Europe, in the nineteenth century, the two models were joined by a third, socialism, which quickly split into two different branches, one totalitarian and the other democratic. Democratic socialism managed to fit within the two existing models as a welcome counterweight. It also managed to appeal to various denominations. In England it [Democratic Socialism] became the political party of the Catholics . In many respects, democratic socialism was and is close to Catholic social doctrine and has in any case made a remarkable contribution to the formation of a social consciousness.
The pope emeritus knew very well what he said here. He was speaking about the ‘Democratic socialism’ of then British Labour, not just ‘social democracy’. And he understood that it was the traditional political party of English Catholics and recognised its closeness ‘in many respects’ to Catholic social doctrine.
The common distinction between “socialism” as ‘state ownership of the means of production’ (in a system without any private property or enterprise) and “capitalism” as ‘private ownership of the means of production’ (in which private individuals and companies own capital goods) is much too crude and binary, in my honest opinion.
It obscures the historical process by which we arrived at the ideological compromise underpinning ‘social market’ economics and ‘social democracy’ (with generously public funded welfare states, multi-level collective bargaining, a large unionised workforce etc.).
For the men and women who pioneered this socioeconomic order in postwar Europe, from the 1950s onwards (many of them Christian Democrats inspired by Catholic Social Teaching, which was the official political philosophy of the CDU in Germany), they were adamant about the fact that they were charting a middle path inspired by elements of both models but rejecting the deficiencies of both as well, that retained a ‘market economy’ (and a very vibrant pro-free trade one at that) but with strong socialised elements and state intervention to level the playing field / provide social balance and counteract the excesses of capitalism.
In West Germany, for example, the ‘Christian Democratic Union’ (Angela Merkel’s party today) led by the devout Catholic Chancellor Konrad Adenauer, came up with the “Ahlen Program” of social market economics which was adopted in February 1947.
It explicitly called for a “socialist economic order”:
GHDI - Document
The capitalist economic system has served neither the state’s nor the German people’s vital interests…
The content and goal of this new social and economic order can no longer be the capitalistic pursuit of power and profit; it must lie in the welfare of our people. A socialist economic order must provide the German people with an economic and social framework that accords with the rights and dignity of the individual, serves the intellectual and material development of our nation, and secures peace both at home and abroad.
The economy must unlock the productive forces of both the individual and the community. The starting point of all economic activity is the recognition of the individual. Personal freedom in the economic sphere is closely related to freedom in the political sphere. Efforts to shape and guide the economy must not deprive individuals of their personal freedom."
The German CDU’s “Ahlen Program,” for instance, also states that:
“Legally acquired property that is not used in a politically abusive manner must be respected within the framework of general laws” (ibid., 4), later further clarifying that: “
In industry, commerce and skilled trades, private entrepreneurship must be preserved and further promoted” (ibid.).
Pope St. John Paul II stated in
Laborem Exercens that he supported “
socialisation versus collectivisation”:
Laborem Exercens (14 September 1981) | John Paul II
The above principle, as it was then stated and as it is still taught by the Church, diverges radically from the programme of collectivism as proclaimed by Marxism. At the same time it differs from the programme of capitalism …
From this point of view, therefore, in consideration of human labour and of common access to the goods meant for man, one cannot exclude the socialization, in suitable conditions, of certain means of production …
The many proposals put forward by experts in Catholic social teaching and by the highest Magisterium of the Church take on special significance: proposals for joint ownership of the means of work, sharing by the workers in the management and/or profits of businesses…