Morality of Money
I was chatting with Matt today at Quincy’s, and asked him what his view on Currency Trading was, as Matt tends to have unique perspectives. He was definitely opposed to it and likened it to stealing. I was slightly surprised by his take on this. I then asked him what he thought of playing cards, specifically Texas Hold’em, and his view was different, depending on whether there were large sums of money involved versus small sums of money.
The question put forth is this: Is currency trading morally acceptable? Or is it more like Matt’s position, that of stealing? An economic purist might say that currency trading isn’t very good for society because it doesn’t produce any good or service [utility], and, in this regard is much like gambling.
I begin my journey of discovering if currency trading is morally acceptably by looking up all that I can in the Catechism of the Catholic Church.
We must first start at the beginning by defining theft:
2408 The seventh commandment forbids theft, that is, usurping another’s property against the reasonable will of the owner. There is no theft if consent can be presumed or if refusal is contrary to reason and the universal destination of goods. This is the case in obvious and urgent necessity when the only way to provide for immediate, essential needs (food, shelter, clothing . . .) is to put at one’s disposal and use the property of others.
Currency Trading involves individuals and institutions that have all consented to the possibility of losing money based on their position.
Next we look at what the CCC says about gambling (as I veiw currency trading as informed/educated gambling, just like I view the stock market):
2413 Games of chance (card games, etc.) or wagers are not in themselves contrary to justice. They become morally unacceptable when they deprive someone of what is necessary to provide for his needs and those of others. The passion for gambling risks becoming an enslavement. Unfair wagers and cheating at games constitute grave matter, unless the damage inflicted is so slight that the one who suffers it cannot reasonably consider it significant.
So, it appears that currency trading is legitimit from a gambling perspective, as long as one doesn’t risk money that is required to provide for his needs and those of others. Likewise, as long as it doesn’t become an enslavement.
The following also supports the idea of currency trading as morally acceptable form of investment:
2429 Everyone has the right of economic initiative; everyone should make legitimate use of his talents to contribute to the abundance that will benefit all and to harvest the just fruits of his labor. He should seek to observe regulations issued by legitimate authority for the sake of the common good.
The following appear to act as warnings or appear opposed to currency trading:
2424 A theory that makes profit the exclusive norm and ultimate end of economic activity is morally unacceptable. The disordered desire for money cannot but produce perverse effects. It is one of the causes of the many conflicts which disturb the social order. A system that “subordinates the basic rights of individuals and of groups to the collective organization of production” is contrary to human dignity. Every practice that reduces persons to nothing more than a means of profit enslaves man, leads to idolizing money, and contributes to the spread of atheism. “You cannot serve God and mammon.”
2536 The tenth commandment forbids greed and the desire to amass earthly goods without limit. It forbids avarice arising from a passion for riches and their attendant power. It also forbids the desire to commit injustice by harming our neighbor in his temporal goods:
When the Law says, “You shall not covet,” these words mean that we should banish our desires for whatever does not belong to us. Our thirst for another’s goods is immense, infinite, never quenched. Thus it is written: “He who loves money never has money enough.”
The previous entries seem to indicate that currency trading goals, that of profit at a risk, may be disordered, and possibly immoral.
So, this begs the question: Is currency trading all about greed? There appear to be a number of pro and con entries in the Catechism that support both positions; however, I definitely disagree that its theft, as trading (see above) implies consent.
In my opinion, I believe currency trading to be morally adequate, as long as:
- The money being risked does not impact one’s daily necessities.
- The people involved are consenting to the risk involved.
- The ‘ends’ aren’t pure greed; i.e. the profit contributes to the betterment of society in some way, rather than purely to satisfy an individual’s quest for wealth and power.