During the industrialization and urbanization of the 1950’s the Church began to compete with the Communists for mass support by supporting a democratic, socially responsible form of capitalism guaranteeing workers’ rights and promoting agrarian reform.
In many countries Christian Democratic Parties were formed that advocated a “middle way” between the right-wing death squads determined to preserve the status quo and Communist guerillas bent on overthrowing the gov’t
In the 1960’s and 70’s the Church increased its commitments to social justice, and while it criticized capitalism for its inequalities, it did not condemn the system itself.