Distributism

Distributism is an economic theory asserting that the world's productive assets should be widely owned rather than concentrated. Developed in the late 19th and early 20th centuries, distributism was based upon Catholic social teaching principles, especially Pope Leo XIII's teachings in his encyclical Rerum novarum (1891) and Pope Pius XI in Quadragesimo anno (1931). It has influenced Anglo Christian Democratic movements, and has been recognized as one of many influences on the social market economy. Distributism views laissez-faire capitalism and state socialism as equally flawed and exploitative. Instead, it favours small independent craftsmen and producers; or, if that is not possible, economic mechanisms such as cooperatives and member-owned mutual organisations as well as small to medium enterprises and large-scale competition law reform such as antitrust regulations. Christian democratic political parties such as the American Solidarity Party have advocated distributism alongside social market economy in their economic policies and party platform. According to distributists, the right to property is a fundamental right, and the means of production should be spread as widely as possible rather than being centralised under the control of the state (statocracy), a few individuals (plutocracy), or corporations (corporatocracy). Therefore, distributism advocates a society marked by widespread property ownership. Cooperative economist Race Mathews argues that such a system is key to creating a just social order. Distributism has often been described in opposition to both laissez-faire capitalism and state socialism which distributists see as equally flawed and exploitative. Furthermore, some distributists argue that state capitalism and state socialism are the logical conclusion of capitalism as capitalism's concentrated powers eventually capture the state. Thomas Storck argues: "Both socialism and capitalism are products of the European Enlightenment and are thus modernising and anti-traditional forces.