John Paul II asked in Centesimus annus whether capitalism should be the model sought by failed socialist countries. "If by ‘capitalism' is meant an economic system which recognises the fundamental and positive role of business, the market, private property and the resulting responsibility for the means of production, as well as free human creativity in the economic sector, then the answer is certainly in the affirmative, even though it would perhaps be more appropriate to speak of a ‘business economy', ‘market economy' or simply ‘free economy'."

Perhaps the phrase "free economy" is preferable to "capitalism" as it moves the focus on to the individual and his basic humanity and away from political and economic structures. A free economy should not be valued just for the prosperity it brings. A free economy, being the opposite of the socialist economy criticised by the Popes, actually has inherent virtues that a government-directed economy lacks. In a free economy, economic resources are allocated peacefully, by mutual agreement. This is not to say that destructive conflict and competition do not occur due to fallen human nature in a market economy, but the process of mutual contracting ensures that this is not inherent within the system.

A socialist economy, on the other hand, involves allocating a fixed set of resources in a system that is beset by conflict, as we see in many ways, such as in the fight for the fixed number of places at state schools each year. Markets also harness self-interest for the common good. The free economy allows people to meet their own needs while, at the same time, serving the needs of others. It is, of course, possible for self-interest to become disordered and turned into selfishness. In the business economy, the pursuit of self can do much damage. But the damage is more limited than if the selfish take their place in government and use powers of coercion to achieve their objectives in a centrally planned economy. I would rather a selfish, greedy person worked in a manufacturing or service business than as finance minister of an underdeveloped country or as chief of the secret police. Ultimately, a business must be mindful of the "other" it seeks to serve or it will go out of business. Like any worthy undertaking, it can be corrupted but, like sex, alcohol or food, we should not regard it as inherently corrupted.