Pope Francis opposes capitalism:

"Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world," Francis wrote in the papal statement. "This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacra­lized workings of the prevailing economic system."

Greg Mankiw defends capitalism:

A few reactions:

First, throughout history, free-market capitalism has been a great driver of economic growth, and as my colleague Ben Friedman has written, economic growth has been a great driver of a more moral society.

Second, "trickle-down" is not a theory but a pejorative used by those on the left to describe a viewpoint they oppose. It is equivalent to those on the right referring to the "soak-the-rich" theories of the left. It is sad to see the pope using a pejorative, rather than encouraging an open-minded discussion of opposing perspectives.

And then sticks in the shiv:

Third, as far as I know, the pope did not address the tax-exempt status of the church. I would be eager to hear his views on that issue. Maybe he thinks the tax benefits the church receives do some good when they trickle down.

Glenn Reynolds points out that Pope Francis may not be familiar with real free markets:

I think the key factor here is that he's from crony-capitalism-capital Argentina, and that he has mistaken what goes on there for the operation of free markets.

This observation is likely correct, given some of the Pope's following remarks:

"This opinion, which has never been confirmed by the facts, expresses a crude and naive trust in the goodness of those wielding economic power and in the sacra­lized workings of the prevailing economic system."

"Meanwhile," he added, "the excluded are still waiting."

In free markets no one is excluded. When people are excluded it is almost always the result of government action, justified as being "for the good of the people".

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