As consumers, business owners or managers we should regard the exercise of economic freedom, which is a crucial aspect of our God-given dignity, as an aspect of the exercise of true freedom to seek and to do what is right. The opposite of a free economy in which individuals and families are subservient to decisions made by the state undermines that dignity.

The present Pope has tended to approach this subject in a way rather different from his predecessor. But what is notable is his scepticism that socialism can achieve what its proponents promise. This arises from his observation of so many unrealised expectations. But it also arises from his basic humility. And there is an interesting parallel here with how many economists think. Economists should understand the implications of the limitations on human knowledge for political and economic policymaking. The argument is really quite straightforward. Humans lack the knowledge to plan the economy centrally and achieve outcomes that ensure that goods and services are produced that meet needs and demands. The collapse of the communist economies was, of course, the great manifestation of that but it applies on a smaller scale too. This particular critique should resonate with Christians, who should surely be aware of the limitations of the human mind and human planning to try to improve and perfect society.

But a free economy goes beyond a free market. Sadly, many institutions of a free economy have been crowded-out by the state. The family is increasingly falling victim to this crowding out process. This has happened as the state has taken primary responsibility for health, education, arts and culture, social insurance, pensions and the regulation of financial markets. All of these were mainly provided, a few generations ago, by a mixture of profit-seeking companies, mutual associations, foundations, charities and professional and community associations. The free economy can be a richer and deeper institution than it is currently, and the opportunities for mutuality and solidarity could be much more profound, enriching and effective.