On Thursday of last week, the Vatican — yes, the head of the Catholic church — penned a relatively scathing indictment of the world’s economic system. In short, the 15-page diatribe explained “The markets know neither how to make the assumptions that allow their smooth running — social coexistence, honesty, trust, safety and security, laws, and so on — nor how to correct those effects and forces that are harmful to human society — inequality, asymmetries, environmental damage, social insecurity, and fraud.”

Ouch.

And yet, if we as a society are being completely honest with ourselves, we know he’s not wrong. One only has to look at the fact that the richest 1% of the people on the planet control more than half of the world’s wealth to see at least a symptom of the problem. Though many of the wealthiest people in the world have generously shared some of their stash, all too often it’s shared inequitably as well, directed only to people and groups they can politically or socially align with.

Nevertheless, while no one can argue we’re living in a world that’s inequitable to the point of being brutal for the most impoverished, the global financial system in and of itself isn’t solely to blame.

Oversimplification?

First and foremost, in his defense the essay wasn’t written by Pope Francis alone. It looks to be, if anything, a group effort from several Vatican leaders.

Second (and this is a very close second) it must be appreciated that the comments were written to make a point rather than explore the pros and cons of capitalism. To that end it’s been successful, if only to prod a meaningful discussion.

Here’s the other side of that discussion.

Yep, since the subprime meltdown of 2008 that became a global contagion, the world has returned to (as the document put it) “heights of myopic egoism, limited by an inadequate framework that, excluding the common good, also excludes from its horizons the concern to create and spread wealth, and to eliminate the inequality so pronounced today.”

The same thing happened after the world was humbled by the dot-com meltdown of 2000. It also happened — albeit to a smaller degree — in 1990. And briefly in October of 1987. And in 1980. Capitalism is a cyclical beast, and we’re continually humbled by it when we’re most sure we’ll never be humbled by it again.

It must also be acknowledged, however, that it was capitalism, perhaps even rampant greed, that brought us out of those recessions. And, barring a truly socialist/communist global community that does away with money altogether, it’s greed or desire for “more” that will drag us out of future recessions that will most certainly happen.

Be that as it may, the Vatican’s commentary also glosses over a couple of key realities.

One of them is the fact that taxes on corporate profits and taxes on the income of employees that work for those for-profit companies generate the bulk of government tax revenue. Governments, by the way, are the world’s most prolific wealth redistributors. Lawrence J. McQuillan and Hayeon Carol Park explained it plainly earlier this year, opining “Wealth must first be created before it can be given to others. Capitalism is the greatest wealth creator the world has ever seen, lifting billions of people out of abject poverty.”

That’s a tough but palatable reality. The next one is even tougher and less palatable, though is by no means untrue. Angus Deaton notes “If poverty is not a result of lack of resources or opportunities, but of poor institutions, poor government, and toxic politics, giving money to poor countries — particularly giving money to the governments of poor countries — is likely to perpetuate and prolong poverty, not eliminate it.”

That’s Princeton economics professor Angus Deaton, by the way… the 2015 Nobel laureate in economics, who specializes in economic inequality.

And there’s the rub. At some point we as a collection of individuals must take at least partial responsibility for our circumstances. To thrive going forward may require unlikely alliances that cross unusual geographic boundaries, relocation of large numbers of people, and perhaps even the abandonment of a way of life that’s existed for years. But, if that’s what it takes, then that’s what it takes.

It’s not happened yet because in many regards, it’s often easier to do nothing, and change nothing. Other times, doing something is a practical impossibility. We as a global society may want to remove those barriers and burdens, so someone who wants more can earn it for themselves rather than simply give them help while they’re down.

The Last Word

This isn’t intended to be a blistering rebuttal of Pope Francis’ message. Indeed, it should be reiterated that in most regards, he’s absolutely right even if his assessment blaringly lacks a specific alternative system. And, like the Vatican’s essay, the message above is lopsided for the express purpose of illustrating the merits and benefits of capitalism. The truth that matters is somewhere in between.

But more than that, a real solution to the problem he’s describing is far more complicated yet far more compelling than most anyone might imagine.

For starters, the elimination of poverty may begin with the establishment of business enterprises large and small in parts of the world not exactly known for being capitalistic. It may also mean taking large swaths of people out of areas where jobs are scarce and where schools underperform, taking them to areas where work is available and quality education is available. It may even more radical ideas like capping CEO paychecks at a limited multiple of a company’s lowest-paid worker.

And yes, it may also mean we reconsider how tolerant the free world is going to be of countries that are less free and more oppressive in a way that facilitates poverty.

Capitalism in and of itself can’t do that though. Capitalism, greed or whatever else you want to call it is only a reflection of any given society’s morals and standards at any given time.

If we want the game to change, we have to change how the players — all the players — see the game and recognize more stuff and greater wealth isn’t actually making us any happier. Ironically, the Vatican’s message could have been considerably more powerful if it had pointed out the recent Gallup poll indicating that people in the U.S., where capitalism and consumerism are thriving, are less happy than they were in the wake of the subprime mortgage meltdown. Maybe that will serve as a much-needed wake-up call about our priorities.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley.