Of course the EME should have disqualified himself from that service, but since he did not, the parish priest is responsible for fixing the situation.
There are two aspects here: Economic and Political, but these are related. To many "conservatives" today, these aspects have no significant effect to our social and moral lives. I disagree, and I understand a few people like Chesterton and Belloc, who lived towards the beginning of last century also disagree.
America was founded not just to free man from the Crown, but also to free him from him the Church. It is the worlds first truly secular state. (The founders did say a few prayers, but if you look at their lives, most of them had no faith. They would have been atheist, had it not been too unpopular at their time.) In the founders credit however, they recognized that without a notion of right and wrong, the state would disintegrate. Being secular, they did not have recourse to religion. Hence, they settled on a system of what I term as "mechanized morality" encoded in the legal framework.
This does affect social life. You will hence find people talking about a certain action being "legal" or not, instead of "moral". Morality loses its meaning in the minds of people, because nothing in the real world is based on it. The Church may make various attempts at remedying this problem of promiscuity among our unmarried laity, but until morals play some role in regular life, I think it would be a failure.
In this regard I like the Muslim world. Despite all the criticism of the barbarity of Sharia Law, it is more natural to man than the secular state that we have today. At the minimum they have the ability to prohibit problems like Gay Marriage, something that a secular state is powerless to prohibit.
Capitalism does have its own problems that affect this social question, but from your post, I assumed that you had problems with only the political part.