Capitalism and Christianity
Christianity
and the Capitalistic Free Market System
Introduction
Many
people debate whether Christianity supports socialism because of the apparent
selfless nature of sharing that it seems to support, or if Christianity is a
proponent for a free market economy. In this paper, I will provide some reasons
why I believe that Christianity supports a capitalistic, free market system.
There is
never a better place to start than from the beginning, so to start with a
foundational understanding I want to define Capitalism and the Free Market:
According to the Merriam Webster
dictionary, capitalism is defined as:
“A way of organizing an economy so that the things that are used to
make and transport products (such as land, oil, factories, ships, etc.) are
owned by individual people and companies rather than by the government: an
economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by
prices, production, and the distribution of goods that are determined mainly by
competition in a free market”
In summary, the concept of a capitalistic
free market means that the economy is most successful when business owners and
entrepreneurs are able to freely start and own their own businesses, compete
for that business and its success, and do so without much interference from the
government.
In order to demonstrate how Christian belief
supports this system, I will go through some main tenets of what comprises a
capitalistic system. The points I will cover are: working for profit, owning
property (private ownership), investment, and government involvement in the
running of the economic system. In addition to citing Christian economists who
have dedicated time and research to this topic, I will primarily support this
belief with passages from the Bible, since the foundation of Christian belief
comes solely from it.
Work for profit
In the beginning, God created the world, and
He created it perfectly. The Bible says that He created the world in 6 days and
that He rested on the 7th.
“By the seventh day God had finished the work He had
been doing; so on the seventh day He rested from all His work.” Gen 2:2
This was explicitly done as an example for
us. God did not need rest for Himself, but this timeline of a workweek followed
by a day of rest was a template for His creation to duplicate.
Once God created the first man, He instantly
gave the instructions to work and be productive. I found it interesting that
the first recorded interaction between God and Adam, was God placing Adam in the
Garden of Eden with the directive to work the land. We see this in the second
chapter of the Bible.
“Now no
shrub had yet appeared on the earth and no plant had yet sprung up, for the Lord God had not sent rain on
the earth and there was no one to work the ground, but streams
came up from the earth and watered the whole surface of the ground. Then
the Lord God formed a man from the dust of the ground and breathed into his
nostrils the breath of life, and the man became a living being…The Lord God took the man and put him in the Garden of Eden to work it and
take care of it.” Gen 2:5-7, 15
The Bible also chastises
the sluggard and discourages laziness. For example, in Proverbs 10:4 it says, “Lazy hands make for
poverty, but diligent hands bring wealth.” (It’s ok to profit
from your work). Also, in 2 Thessalonians 3:10 “The one who is unwilling to
work shall not eat.” And in Proverbs 20:4 “Sluggards do not plow in season; so at harvest time
they look but find nothing”.
Profits provide
motivation to avoid laziness. The more you work, the more you gain. In his book
“Economics in One Lesson”, Henry Hazlitt talks about this motivation. “If there
is no profit in making an article, it is a sign the labor and capital devoted
to its production are misdirected…one function of profits, in brief, is to
guide and channel the factors of production…in accordance with demand.”
Profit can be monetary,
or it can be anything we are willing to exchange for something else (e.g. time,
goods). Clearly, from the beginning we were intended to work, for our own well-being,
to maintain order, and to feed ourselves. Thus, from the moment of human
dominion on earth, we were working for profit.
Does the Bible support private ownership?
In ancient times, kings, temples and rulers
generally had control over mass areas of land. The Bible actually regulated
ownership by individuals and families. It is also fundamentally against debt
(see Ecclesiastes 5:5, Proverbs 22:7, Psalm 37:21, Numbers 30:2, Romans 13:8) and so God established what is
called the Year of Jubilee in which people who had sold their land to remain
free of, or to eliminate debt, would have it returned to them. This allowed
families, communities, and friends to help each other to remain financially
stable and also have the ability to keep land among families throughout
generations. The buyer was aware the land would not permanently be his, and so what
he was essentially buying was the profit, or crops, that the land would produce
in the number of years he had possession of it. When the Year of Jubilee came
around (every 50 years), he would return the land to the original owner who
would then retake responsibility for governing it. The process is laid out in
detail in Leviticus 25:8-34 and below I have included a segment of those
instructions.
“Count off seven sabbath years—seven times seven years—so that the
seven Sabbath years amount to a period of forty-nine years. ...
Consecrate the fiftieth year and proclaim liberty throughout
the land to all its inhabitants. It shall be a jubilee for you; each of you is
to return to your family property and to your own clan… In this Year of Jubilee
everyone is to return to their own property. “If you sell land to
any of your own people or buy land from them, do not take advantage of each
other. You
are to buy from your own people on the basis of the number of years since the
Jubilee. And they are to sell to you on the basis of the number of years left
for harvesting crops. When the years
are many, you are to increase the price, and when the years are few, you are to
decrease the price, because what is really being sold to you is the number of
crops...*
*(Notice above, this price adjustment discourages people who might
think they can rack up more debt carelessly as the Jubilee year
approaches. That would be foolish
because they will receive less money for the land the closer the year is.)
The land must not be sold permanently, because the land is mine and
you reside in my land as foreigners and strangers. Throughout the land that you hold as a possession,
you must provide for the redemption of the land…If one of your fellow Israelites becomes poor and sells
some of their property, their nearest relative is to come and redeem what they
have sold. 26 If, however, there is no one to redeem it for
them but later on they prosper and acquire sufficient means to redeem it
themselves, 27 they are to determine
the value for the years since they sold it and refund the balance to the one to
whom they sold it; they can then go back to their own property. 28 But if they do not acquire the means to repay,
what was sold will remain in the possession of the buyer until the Year of
Jubilee. It will be returned in the Jubilee, and they can then go back to their
property.
This
passage goes on to explain regulations in detail, including how to handle a
home built within a walled city versus in the country, passing land to
descendants and special rules for those within the tribe of Levi. This amount
of planning, regulation, and detail expresses strongly the value of land
ownership in the Bible.
If land
ownership is so important, and Christianity is fundamentally against
selfishness shouldn’t we all share equally and therefore support a socialistic
view? No. One of the most popular passages to cause confusion is in Acts.
“After they
prayed, the place where they were meeting was shaken. And they were all filled
with the Holy Spirit and spoke the word of God boldly. All the believers were
one in heart and mind. No one claimed that any of their possessions was their
own, but they shared everything they had. With great power the apostles
continued to testify to the resurrection of the Lord Jesus. And God’s grace was so powerfully at
work in them all that there were no needy persons among
them. For from time to
time those who owned
land or houses sold them, brought the money from the sales and
put it at the apostles’ feet, and it was distributed to anyone who had need. Joseph, a
Levite from Cyprus, whom the apostles called Barnabas (which means “son of
encouragement”) sold a field he owned and brought the money and put it at the
apostles’ feet.” Acts 4:31-36
Notice that this
is all done voluntarily by communities and individuals, due to changes of heart
prompted by their conversions and acceptance of the Holy Spirit. The church, or
leaders of the communities, did not dictate that everyone split what they own
equally amongst each other – rather, those who had the ability voluntarily helped those in need. I believe this is an
example not of socialism, where people are coerced into giving up their
resources, but of people freely working together in a free market system.
You must own
property in order to give it, and you must make a profit in order to share it.
This being the case then, capitalism is the most effective system to allow this
type of behavior to manifest itself, and would be in line with Scriptural
teachings.
Investment
Investment can be defined as sacrificing something
now, with the hopes of profiting from it later. Someone can invest time in
order to cook a good meal, or energy in order to stay in shape, but most
commonly in economics we think of investing money to earn interest from a bank,
or profit from a company we invest in or purchase stock from. Can this too be
Biblical?
While the specific principle of investment
is not widely discussed (although there are a few examples we will see) the
wise management of money is a prominent topic in the New Testament. In fact,
Jesus discussed money more than He even discussed Heaven. There are many
references to money management in general, and there are some references to
investment as well, e.g. Matthew 25: 14-27, (that not only supports the idea of
working for profit, but also the concept of investing what you have to earn
interest), Luke 19:11-26, and Ecclesiastes 11:1-3.
One of the most recognizable parables that
comes to mind when thinking of investing money for greater return in the future
is found in Luke 19:11-27.
“…A man of noble birth went to a
distant country to have himself appointed king and then to return. So
he called ten of his servants and gave them ten minas. ‘Put this
money to work,’ he said, ‘until I come back...He was made king…and returned
home. Then he sent for the servants to whom he had given the money, in order to
find out what they had gained with it. The first one came and said, ‘Sir, your
mina has earned ten more.’ ‘Well done, my good servant!’ his
master replied. ‘Because you have been trustworthy in a very small matter, take
charge of ten cities.’ The second came and said, ‘Sir, your mina has earned
five more.’ His master answered, ‘You take charge of five cities.’ Then another
servant came and said, ‘Sir, here is your mina; I have kept it laid away in a
piece of cloth. I was afraid of you, because you are a hard
man. You take out what you did not put in and reap what you did not sow.’ His
master replied, ‘I will judge you by your own words, you wicked servant! You
knew, did you, that I am a hard man, taking out what I did not put in, and
reaping what I did not sow? Why then didn’t you put my money on deposit, so that
when I came back, I could have collected it with interest?’ Then he said to
those standing by, ‘Take his mina away from him and give it to the one who has
ten minas.’…”
This parable demonstrates the value of
investing. The servant that was least risk-averse profited 10x what his master
had charged him with. Another was perhaps a little more conservative, and
earned 5x what his master has given him. The final servant had a high level of
risk aversion and instead of saving it in a bank, he kept it to himself. The moral
of this parable is to be wise with what you are given, and multiply it if you
can.
We see in Matthew a very similar parable that
ends with the statement, “Well then, you should have put my money on deposit
with the bankers, so that when I returned I would have received it back with
interest.” Matthew 25:27.
And also, Ecclesiastes 11:1-3 “Ship your grain across the sea;
after many days you may receive a return. Invest in seven
ventures, yes, in eight; you do not know what disaster may come upon
the land.” This passage is reminding us to be conscientious in diversifying our
investments, because you never know how they may succeed or fail.
In Gary North’s book “Christian Economics in
One Lesson”, he devotes a chapter to interest and rent. He delves into the
Greek translations and discusses how Christians are to use their talents (aka
human capital) to make the most of what is given to them. He states, “He [God] provides
us with capital, He expects us to increase it for the sake of His
kingdom...God’s people were assured that their position as interest-seeking
lenders was valid. What they were to avoid was becoming indebted foreigners.”
Government Involvement
Should the government be involved in the
economy? Absolutely! There are certain common goods that we all share and use.
One clear example is the military. Since the military is there to protect us
as an entire country, taxes must be had, and the Bible certainly supports
citizens paying their taxes. We can see this is Matthew 22:
“Then the Pharisees went out and
laid plans to trap him in his words. They sent their disciples
to him along with the Herodians. “Teacher,” they said, “we know that you are a
man of integrity and that you teach the way of God in accordance with the
truth. You aren’t swayed by others, because you pay no attention to who they
are. Tell us then, what is your opinion? Is it right to pay the
imperial tax to Caesar or not?” But Jesus, knowing their evil intent, said, “You hypocrites, why are you
trying to trap me? Show me the coin used for paying the tax.” They brought him a denarius, and
he asked them, “Whose image
is this? And whose inscription?” “Caesar’s,” they replied. Then he said to
them, “So give
back to Caesar what is Caesar’s, and to God what is God’s.” When they heard this, they were
amazed. So they left him and went away.” Matthew 22:15-22
This is a common passage used to demonstrate
the fact that Christians are not to be rebellious against government
authorities, and we are to remain lawful, tax paying citizens. Elsewhere in
scripture, we are told that God is in complete control of who is in political office
at any time:
“Let
everyone be subject to the governing authorities, for there is no authority
except that which God has established. The authorities that exist have been
established by God. 2 Consequently, whoever rebels against the
authority is rebelling against what God has instituted, and those who do
so will bring judgment on themselves. 3 For rulers hold no
terror for those who do right, but for those who do wrong. Do you want to be
free from fear of the one in authority? Then do what is right and you will be
commended. 4 For the one in authority is God’s servant for your
good. But if you do wrong, be afraid, for rulers do not bear the sword for no
reason. They are God’s
servants, agents of wrath to bring punishment on the wrongdoer. 5 Therefore,
it is necessary to submit to the authorities, not only because of possible
punishment but also as a matter of conscience. This is also why you pay taxes, for the authorities are
God’s servants, who give their full time to governing. 7 Give
to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then
revenue; if respect, then respect; if honor, then honor.” Romans 13:1-7
Beyond
our obligation to pay taxes, and submit to governmental authorities, this
particular passage brings up another point, and that is, what is the job of
government? Essentially, it is to protect its people, and punish wrongdoers.
This is an extremely simple concept and compared to how our government
functions today, may even be considered radical in its simplicity.
It
is my personal belief that it would be within Biblical principles and Christian
beliefs, to deregulate some of the things that our government provides. One
such example is welfare.
According
to scripture, it is Christians and the church who are to provide for and take
care of widows and orphans: “Religion that God our Father accepts
as pure and faultless is this: to look after orphans and widows in their
distress and to keep oneself from being polluted by the world.” James 1:27
And to the poor in our midst:
“If anyone is
poor among your fellow Israelites in any of the towns of the land the Lord your God is giving you, do not be hardhearted or tightfisted toward
them. 8 Rather, be openhanded and
freely lend them whatever they need. 9 Be
careful not to harbor this wicked thought: “The seventh year, the year for
canceling debts, is near,” so that you do not show ill will toward the needy
among your fellow Israelites and give them nothing. They may then appeal to the
Lord against you, and you will be found guilty of sin. 10 Give generously to them and do so without a
grudging heart; then because of this the Lord your God
will bless you in all your work and in everything you put your hand to. 11 There will always be poor people in the land.
Therefore I command you to be openhanded toward your fellow Israelites who are
poor and needy in your land.” Deuteronomy 15:7-11
As you can see, this scripture encourages
generosity, and where some may be tempted to abuse that generosity by taking
advantage of the 7th year of debt forgiveness (similar to the Year of Jubilee),
that is frowned upon in many scriptures. In addition to discouraging debt,
selfishness, and unwise financial management, the Bible says Christians are not
to concern themselves with others’ motives, but they are to do what they are
called to do, without wondering if the other person deserves it. God promises
then to bless those people.
These verses are also interesting because they
tell us that the poor will always be with us, with no command anywhere in scripture
to try and eliminate the poor completely. Many countries have focused on
eliminating the poor that live there by trying socialism and its counterparts
and they have all failed because they also eliminate the motivation that people
have to work harder so that they can profit more and provide for themselves a
better life. In a socialistic economy, when it’s harder to see great personal
success, the end result is that everyone stops working as hard. So in the end
socialism creates more poor, not less. In stark contrast, when capitalism is
instituted and Christian beliefs are allowed to thrive, then hard work and
generosity are abundant and the poor are often taken care of.
I would like to conclude with some thoughts
by Rev Robert Siraco. In his book “Defending the Free Market: the Moral Case
for a Free Economy”, he states,
“When civilizational
virtues are eroded from within, people lose the capacity to defend the good
things those habits enables previous generations to achieve…We have come to
believe that the government bureaucrat is a Good Samaritan…Can it be mere
coincidence that we are beset by decline just as the Judeo-Christian worldview
has retreated from the public square?...When the Judeo-Christian worldview is
replaced by a vaguely formed and only partially acknowledged philosophical
materialism, then all that matters is what we can get for ourselves today. What
is lost is a sense of history as a meaningful and linear thing, as something
moving toward a great consummation. When a person loses that, when a whole
people loses that, when the institutions that serve to organize and govern a
people lose that, the loss is severe and reverberating. When freedom is
divorced from faith, both freedom and faith suffer. Freedom becomes rudderless,
because truth gives freedom its direction…Freedom without a moral orientation
has no guiding star. On the other hand, when a people surrenders their freedom
to the government – the freedom to make moral, economic, religious, and social
choices and then take personal
responsibility for the consequences – virtue tends to waste away and faith
itself grows cold…The link between economic liberty and public morality is not
tenuous; it is clear and direct.”
Works Cited
·
The Bible (NIV)
·
“The Bible, Homeownership and
the Housing Crisis”, by Joshua Berman History News Network 2013 http://hnn.us/article/56906
·
“The Bible mandates free market
capitalism. It is anti-socialist” by Gary North
·
“Biblical Economics Today” by
Gary North
-
“Christian Economics in One Lesson – Interest and Rent” 1996 http://www.garynorth.com/freebooks/sidefrm2.htm
“Defending the Free Market: The
Moral case for a Free Economy” by Rev Robert Sirico, 2012