Faith & Finance: Leo XIV and Catholic Social Teaching

By: DAVID HANNA, PORTFOLIO MANAGER, HEAD OF EQUITY PORTFOLIO MANAGEMENT

Nearly 150,000 people jammed St. Peter’s Square on May 8, 2025, hoping to see the new pope in person. Untold millions around the world waited and prayed. At approximately 6:15 PM white smoke curled from the Sistine Chapel chimney and, an hour later, Cardinal Robert Prevost stepped on the balcony of St. Peter’s Basilica, choosing the name Leo XIV.

The name is a bridge to Leo XIII (pope from 1878 to 1903). These two popes have many things in common. Leo XIII was praised for caring for those stricken with cholera in 1837. Leo XIV similarly attended those sick with covid, and waded through mud to help flood victims, sometimes riding on horseback to reach remote areas. They both also stood up to powerful leaders who were oppressing people. As Delegate Governor of Benevento, Leo XIII stood up to local criminal organizations and restored order. Leo XIV spoke out against both the Shining Path and Prime Minister Fujimori during the brutal “lost decade” in Peru. Both pastored those in extreme poverty and supported workers.

Their care for the lost, sick, and oppressed shows their recognition of the human dignity given to all by God. These are key themes in Catholic Social Teaching (CST), which Leo XIII formalized in 1891 with the publication of the encyclical Rerum Novarum. Leo XIV linked his current concerns to Leo XIII’s late 19^th century concerns, saying, “In our own day, the Church offers to everyone the treasury of her social teaching in response to another industrial revolution and to developments in the field of artificial intelligence that pose new challenges for the defense of human dignity, justice and labor."

His reference to the industrial revolution is timely. Then, tasks were automated in factories, causing job losses. For example, many artisans, textile workers, and shoemakers either lost their jobs or transitioned to repetitive factory roles. Artificial Intelligence could also lead to job losses and has already affected hiring and compensation in some vocations. Another concern is safety for minors. Pope Leo XIV addressed this potential, saying AI should function “as a tool for the good of human beings, not to diminish them, not to replace them.”

There are potential parallels with the Industrial Revolution. While new technologies and issues continually arise, CST provides principles for handling the challenges ahead. At the heart of CST is the dignity of the human person. At Knights of Columbus Asset Advisors, we invest using these guidelines. The principles of CST are timeless, but new applications regularly arise and require ongoing discernment. We are excited that our new Pope is committed to leading through the challenges ahead.

Sources:

The Life and Life-Work of Pope Leo XIII, James Joseph McGovern, 1903.

Leo XIV: Portrait of the First American Pope, Matthew Bunson, 2025, EWTN Publishing.

A missionary pope: What Pope Leo XIV’s years in Peru tell us about how he’ll lead the church - America Magazine

Address of Pope Leo XIV to members of the International Inter-Parliamentary Union, June