In the comment boxes below TS writes:
The problem with my view of capitalism, which must be in error if in conflict with church teaching, is that I see the good of the owner and the worker as typically mutually enriching.
And I don't think that view or its reality is in conflict with Church teaching. However, I don't think this situation is the norm-at least in businesses owned by investors (as opposed to privately owned or family-owned businesses). Today it is common for companies to lay workers off, not as a last resort to stay in business, but for all sorts of reasons-including to increase profit (note, I didn't say to make a profit, but to increase...) The workers employed are asked to do double the work with no extra compensation.
The dollar is almighty and the workers are tools to make it. And slavery, it is. The whole economy is set up to encourage consumerism, debt and thus bondage to the economy as it exists.
A household living wage may exist for professionals who shun the latest fads, but doesn't exist for the blue collar worker. Finally, the economy as presently encountered in this country is not set up in service of the worker or the common good, but in the service of investors.
While I recommend most highly Pope Leo XIII's Rerum noverum, I will quote below from more contemporary pontiffs.
From Paul VI's Populorum Progressio:
26. But it is unfortunate that on these new conditions of society a system has been constructed which considers profit as the key motive for economic progress, competition as the supreme law of economics, and private ownership of the means of production as an absolute right that has no limits and carries no corresponding social obligation. This unchecked liberalism leads to dictatorship rightly denounced by Pius XI as producing "the international imperialism of money". One cannot condemn such abuses too strongly by solemnly recalling once again that the economy is at the service of man. But if it is true that a type of capitalism has been the source of excessive suffering, injustices and fratricidal conflicts whose effects still persist, it would also be wrong to attribute to industrialization itself evils that belong to the woeful system which accompanied it. On the contrary one must recognize in all justice the irreplaceable contribution made by the organization of labor and of industry to what development has accomplished. (emphasis added by me.)
And from John Paul II's Centisimus Annus:
In other cases the land is still the central element in the economic process, but those who cultivate it are excluded from ownership and are reduced to a state of quasi-servitude. In these cases, it is still possible today, as in the days of Rerum novarum, to speak of inhuman exploitation. In spite of the great changes which have taken place in the more advanced societies, the human inadequacies of capitalism and the resulting domination of things over people are far from disappearing. In fact, for the poor, to the lack of material goods has been added a lack of knowledge and training which prevents them from escaping their state of humiliating subjection.
The Church acknowledges the legitimate role of profit as an indication that a business is functioning well. When a firm makes a profit, this means that productive factors have been properly employed and corresponding human needs have been duly satisfied. But profitability is not the only indicator of a firm's condition. It is possible for the financial accounts to be in order, and yet for the people — who make up the firm's most valuable asset — to be humiliated and their dignity offended. Besides being morally inadmissible, this will eventually have negative repercussions on the firm's economic efficiency. In fact, the purpose of a business firm is not simply to make a profit, but is to be found in its very existence as a community of persons who in various ways are endeavouring to satisfy their basic needs, and who form a particular group at the service of the whole of society. Profit is a regulator of the life of a business, but it is not the only one; other human and moral factors must also be considered which, in the long term, are at least equally important for the life of a business. (emphasis added by me)
Oremus pro invicem!