The Christian Case for Capitalism

During every economic crisis, capitalism undergoes sever scrutiny, if not outright assault. The latest withering of the markets forced most people, to one degree or another, to consider whether capitalism is ultimately the best foundation upon which to build our economy. Many Christians, especially in light of various disquieting displays of greed in the public and private sectors, now struggle to adequately answer this question. Sadly, many of these same Christians have blindly aligned themselves with the views of the anti-capitalists that all but dominate the major headlines. Can Christians reconcile their faith with pro-capitalism views? Though many answer "no," they are wrong. One can build a solid Christian case for capitalism.

It's true that the Bible does not explicitly endorse capitalism or any other economic system. In many cases it seems that the Bible specifically condemns capitalism. Opponents of free-market capitalism successfully trot out various biblical warnings about desiring wealth (e.g. the camel and the eye of the needle, Jesus and the temple moneychangers, etc.). Yet these are grossly invalid interpretations of God's feelings about capitalism. For one, they do not speak to God's feelings about acquiring wealth, but to his feelings about desiring wealth and placing too much emphasis upon it. We must remember that many of the Old Testament figures were very wealthy men and God frequently promised to bless them with even more. Thus, he could not have had a problem with wealth in general.

Capitalism's Christian critics often overlook another important point: capitalism best embodies and rewards many of the values and traits that God loves to see in his people, while other systems stifle them. For example, man was created in the image of God (imago dei). Therefore, man, like God, is a creative being. Capitalism, more than any other system, enables and encourages man to create to his fullest potential, often glorifying God in the process.

Al Mohler, president of Southern Baptist Theological Seminary, suggests that Christians should look at the economy as a test of their values.* If we compare those character traits that are valued in the Bible to those valued and rewarded under capitalism, we find that they are remarkably similar. For example, God encourages and rewards honest labor, investment, and thrift. Capitalism rewards these, too. The Bible approves of wealth gained through industriousness and self-control, traits important for success under capitalism.

There are instances, moreover, in which the Bible condones generating wealth. The most famous instance, perhaps, is the parable of the talents. The hardworking, responsible, and creative servants not only received their master's praise, but they were given more! The lazy servant, on the other hand, is expelled from his master's presence and he loses what little he had. While support for capitalism was not the intention of the parable, Jesus used an example that resonated with the people, implicitly suggesting that some form of capitalism was both practiced and applauded.

On the contrary, character traits valued in the Bible, like honesty, industry, and self-control, get you nowhere under an economic system like socialism. If you disagree, spend a little time enveloped in the history of the Soviet Union or China under communism. First, socialism leaves little incentive for people to be creative. Under socialism, workers are told what to do and how and when to do it. Second, those who rose to power under socialist systems were often greedy, conniving, and manipulative.

"Ah," you say, "there's the rub." We have ample evidence that capitalism leads to the same practices. Those rich "Wall Street" executives demonstrated clearly their greedy and conniving ways, right? It must be conceded that capitalism does not safeguard against moral corruption, a point we have seen all too clearly as of late. But to work effectively-to not result in economic crises-capitalism requires and thrives under good moral character. People still got rich when housing prices were dictated by the market, when bad loans and toxic assets were not encouraged, when people's honesty was not clouded by their greed. As soon as the love of money (note, not money itself) became the overriding factor when making decisions, the system began to fall apart.

How we ever thought that capitalism could guarantee good moral character is beyond me. After all, capitalism is a system that came about in a sinful world. It had no chance to be perfect. Thus, capitalism does not corrupt us; we corrupt capitalism. Yet listen to many of today's talking heads and the problem is not humanity, it is capitalism. How ridiculous! If a drunk driver hits and kills a woman, do we blame the car?

It's obvious that capitalism requires good moral character, but it's less obvious that it promotes good moral character. A company's honesty, the sense of trust it builds with its consumers, is rewarded by the consumer. A company that pays closer attention to the needs of its consumers is rewarded more handsomely than one that does not. A company that takes steps to give back to the community is rewarded, in turn, by its consumers. Under socialism, none of this is rewarded. In fact, none of these steps are necessary. There is no competition. If one place sells cars, and you need a car, you will buy it from that one place, regardless of quality, the company's honesty, or its attentiveness to your needs.

Anti-capitalists have hit upon a remarkably effective marketing scheme: pretend that capitalism engenders greed and is sustained through more greed, then show how greedy capitalists have ruined the lives of others. Take Wal-Mart, for example. I can't recount how many stories I have seen in the last decade about the evil Wal-Mart destroying small businesses by undercutting them with cheaper foreign goods, putting a handful of people out of work, and sending our jobs overseas. Never mind that Wal-Mart makes most products affordable to low-income families. Never mind that it employs thousands of people across the country. Never mind that it also employs thousands more across the globe, alleviating the poverty of many, many, people. (By the way, doesn't this qualify as that "helping the poor" business mentioned in the Bible?) Never mind that Wal-Mart's founders, like so many of those "greedy" businessmen, give millions of dollars away through private philanthropy.

These things don't matter, unless you forget that God has nothing against acquiring wealth. Hoarding wealth, dishonestly acquiring wealth, seeking wealth to the detriment of one's relationship with God? Yes, He has a problem with that. Using your God-given talents to earn what someone is willing to pay you? No. Don't be silly.

We incorrectly assume that more wealth for me means less wealth for you. This is true only if we view the economy as a static pie in which the expansion of slice's size means the contraction of another's. Under socialism (toward which, by the way, America is now running) the static pie image is a reality. There is no incentive to be creative under such a system. There are few, if any, outlets for entrepreneurs. There is no innovation. Thus wealth does not grow; it stagnates, and the term "redistribution" makes sense.

Under free-market capitalism, however, the pie is, for the most part, always expanding. A bigger piece for you, then, might mean a bigger piece for me as I or other companies with which I'm involved benefit from your services.

We must not forget that while the Bible does not endorse capitalism, it does not condemn it, either. If God is against an ever-expanding economy and free markets, he never says so in the Bible. Besides, the more wealth I have, the more I can give back to God by furthering the Church's mission, or by helping the poor. God wants his children to take pride in their work and acknowledge the blessings that he gives them because of their work. Wealth is a blessing that he gives us through our creative talents. Limiting our abilities to use our talents in the workplace, places us in the role of the wicked, lazy servant. And we all know how God feels about that.

*Al Mohler, "A Christian View of the Economic Crisis," Sept. 24, 2008, www.albertmohler.com/blog