ABSTRACT
From politics to economics: the opening sentence of Leo XIII's encyclical on "The Condition of Labor" reflects a tide in the ideas of the French, the British and the Americans since the term "political economy" first appeared in 1615. Economic systems must be assessed in the light of moral philosophy, social philosophy, and natural law. There is a clear asymmetry in Leo XIII's address to economic issues. The capitalists are correct in principle; but they must reform their institutional practices. Compared to 1891 or 1931, for example, the German social market economy of 1984 is far closer to the principles Leo XIII and Pius XI laid down. There are two contributions Pius XI made in Quadragesimo Anno. The first was the introduction of the term "social justice" as the foundational term of Catholic social thought. The second was the sketch of the "corporative ideal", by which Pius XI, following Heinrich Pesch, hoped to overcome the so-called division between social classes.
