What is the theological basis for distributism?

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Distributism

Distributism is an alternative to the capitalism/socialism dichotomy. As John Médaille describes it (The Distributist Review, An Introduction to Distributism):

Its key tenet is that ownership of the means of production [capital] should be as widespread as possible rather than being concentrated in the hands of a few owners (Capitalism) or in the hands of state bureaucrats (Socialism).

Distributism takes its name from distributive justice:

The virtue that regulates those actions which involve the rights that an individual may claim from society. According to distributive justice, the state has three basic duties: to distribute the common burdens and privileges equitably; to make it possible for each citizen to exercise natural and acquired rights without undue hindrance; to foster mutual relations among the citizens for living together peacefully. Inequitable imposition of taxes, for example, would be a violation of distributive justice.

cf. St. Thomas Aquinas, Summa Theologica II-II q. 61 a. 1 on distributive & commutative justice


Doctrinal bases of Distributism

Private Property

It is a defined dogma that Jesus and the apostles possessed private property:
Pope John XXII Cum inter nonnullos 13 Nov. 1323 on the poverty of Christ (Denzinger 494):

[…] to affirm persistently that our Redeemer and Lord Jesus Christ and His apostles did not possess anything either in particular or even in common […] we […] declare […] shall henceforth be branded as erroneous and heretical, since it expressly contradicts Sacred Scripture, which in many passages asserts that they did have some possessions […]

And they had rights to the use, selling, or donating of said property:

Moreover, […] to affirm persistently that the right to use these same possessions which Sacred Scripture testifies that they had was by no means appropriate to our aforesaid Redeemer and His apostles, and that they did not have the right to sell or to donate them or to acquire others by means of them, which, nevertheless, Sacred Scripture testifies that they did […] is wicked, contrary to Sacred Scripture, and to Catholic doctrine about the use, actions, or deeds on the part of our Redeemer, the Son of God, we declare […] worthily branded as erroneous and heretical.

source

Condemnation of Capitalism and Socialism

For example, in Pope Pius XI, Quadragesimo anno (1931), discussing "the 'capitalist' economic regime" (§103):

  1. In the first place, it is obvious that not only is wealth concentrated in our times but an immense power and despotic economic dictatorship is consolidated in the hands of a few, who often are not owners but only the trustees and managing directors of invested funds which they administer according to their own arbitrary will and pleasure.
  1. One section of Socialism has undergone almost the same change that the capitalistic economic system, as We have explained above, has undergone. It has sunk into Communism. Communism teaches and seeks two objectives: Unrelenting class warfare and absolute extermination of private ownership. […]

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