Roundtable Discussion
Is modern day capitalism consistent with what the bible teaches about money and business?
Let’s start out with Webster’s definition of Capitalism:
Capitalism is an economic system where private individuals or organizations own and control the means of production, and where the free market determines prices and the distribution of goods.
Webster’s Dictionary
Sounds pretty good so far.
#1 Private ownership was embraced in the bible by allotting land in Israel to families. Read Numbers 26:53 “the land should be divided for inheritance based on population”
#2 Free markets are also in the bible as an extension of the free-will of man. “For this is what the Lord Almighty, the God of Israel, says: Houses, fields and vineyards will again be bought in this land.” Jermiah 32:15
However, there were numerous prohibitions tempering this freedom by God. For example, the allotment and inheritance of land was made in proportion to need. It was followed by the concept of Jubilee (returning land to original inheritors, no matter the pledge or debt). Similarly, there was the freedom to lend money, but not to charge interest. Plus, there was a requirement to forgive debts every seven years. Also not to work the land every seven years. No buying and selling of goods within the walls of Jerusalem on the Sabbath. Etc.
Now, let’s take a look at some of the writings of the “Father of Capitalism”, Adam Smith.
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest
Adam Smith
Adam Smith points out here and in his writings that self-interest is what provides for our families – not the benevolence of man (nor the benevolence of God – note connection with Deism below).
Now, lets look at what the bible says about this :
Let nothing be done through selfish ambition or conceit, but in lowliness of mind let each esteem others better than himself. Let each of you look out not only for his own interests, but also for the interests of others.
Philippians 2:3-4
And whatever you do, whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father through him.
Colossians 3:17
The one who is unwilling to work shall not eat
2 Thessalonians 3:10
Seek first the Kingdom of God and righteousness, and all this (dinner, drink, clothes, needs, etc.) shall be added unto you
Matthew 6:33
Which begs the question: what is true work?
My food is to do the will of the Father
John 4:34
Not exactly the same as what Adam Smith suggests. Note the important differences. Its not all about self-interest leading to our provision. Its about trusting God for provision, loving others, working with diligence as unto God, and for God. Where there is need, let us pray and ask for help and wisdom, not trying to scramble, scrape, or horde money, income, profit and gain as though God never assured us.
Not that I speak in regard to need, for I have learned… to be content: I know how to be abased, and I know how to abound… I have learned both to be full and to be hungry, both to abound and to suffer need. I can do all things through Christ who strengthens me.
Philippians 4:11-13
I will be with you always, even unto the end of this age
Matthew 28:20
Every individual… intends only his own gain, and he is… led by an invisible hand to promote an end which was no part of his intention.
Adam Smith, Wealth of Nations (1776)
Mmm, who or what is this invisible hand??
We need to put things into context. Adam Smith was part of the Scottish Enlightenment. Which was connected to the French Revolution and Deism.
In the… Age of Enlightenment or Age of Reason, deism emerged as a theological position that attempted to define the natural world and man’s relationship to God through the application of Enlightenment ideals such as reason, rationality, and order.
The Influence and Legacy of Deism in Eighteenth Century America, Piland
To understand what those movements stood for, we can look to Voltaire, an 18th century French philosopher who believed god was uninvolved in the day-to-day affairs of men, as he was only the “clockmaker of the universe”, leaving men to their own interests. This type of thinking leads down a slippery slope to another enlightenment philosopher’s ideas…
Descartes 1637
Milton Friedman, Nobel Prize Economics, University of Chicago
Fast forward to the 20th century, and we have Milton Friedman, a modern day Adam Smith adherent (that’s an Adam Smith tie he’s wearing).
Here are some relevant Friedman quotes:
The business of business is business
Milton Friedman
A corporation is an artificial person and in this sense may have artificial responsibilities, but ‘business’ as a whole cannot be said to have [social] responsibilities, even in this vague sense.
Milton Friedman
Here’s the thing: If a corporation is an artificial person, shareholders are also artificial people – or perhaps better said, nameless faceless people who have no soul – no regard for fellow man. Real people can therefore “hide” behind the shareholder “strawman”.
Famous NYT Article: A Friedman doctrine‐- The Social Responsibility of Business Is to Increase Its Profits
There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.
Capitalism and Freedom, Milton Friedman 1965
But what of deceptive advertising? Hidden fees? The ol’ bait and switch? The free trip, if we can sell you a condo. There are many such deceptive things permitted “within the rules of the game” today.
Yet, even if we give Friedman the benefit of the doubt here: Is the only requirement of God to commit no fraud or deception? These scriptures contravail such claims:
“Do not oppress the poor because he is poor” – Proverbs 22:22
“And if you sell anything to your neighbor or buy from your neighbor’s hand, you shall not oppress one another.” – Numbers 25:14
“If you lend money to the poor among you, you are not to act as a creditor to him; you shall not charge him interest” – Exodus 22:25
“Do not charge a fellow Israelite interest, whether on money or food or anything else that may earn interest.” – Deuteronomy 23:19
“If a wicked man gives back what they took in pledge for a loan… they will not die.” – Ezekiel 33:15
“When you reap the harvest of your land, do not reap to the very edges of your field. Leave them for the poor and for the foreigners.” – Leviticus 23:22
So, in effect Adam Smith’s philosophies, evolved into the Friedman doctrine, which essentially has created a wall of separation between faith and business – and therefor a moral vacuum, since “corporations are not people” and shareholders are a abstraction, rather than personal reality.
Capitalism looks similar to God’s principles of free-will of man, land ownership, and freedom. But is this, especially in its modern day interpretation, really the same as God’s covenants with men? Or, is it more a like a close cousin?
Perhaps like a butterfly compared with a moth? Both start off as caterpillars, but…
This moral vacuum rationalization of hiding behind corporations, shareholders and profits, echoes of the stories told in the Bible of the Pharisees, who had a form of Godliness, but Jesus labeled them hypocrites and white washed tombs. Their hearts were far from God. They were also identified as lovers of money. Everything looked fine on the outside, but the inside was filthy dirty.
“Woe to you, scribes and Pharisees, hypocrites! For you cleanse the outside of the cup and dish, but inside they are full of extortion and self-indulgence.” – Matthew 23:25
5 Points of how Capitalism differs from God’s Economy
Capitalism embraces Capital as King. The bible says Jesus is King.Publicly traded corporations have taken Christianity and Judaism out of the board room and any official business. HR enforces such policies.Capitalism is a structure where capital and shareholders demand a return, without need for personal regard or accountability to human impact – rich or poor, healthy or sick.Capitalism has been sometimes described as “survival of the fittest”. Wall Street is like that. But did God ever say that men were to behave like animals?Modern capitalism has depersonalized business. It hides behind “shareholders” and “returns”. It strictly enforces debt “covenants” through litigation. Etc.Free-market capitalism is the best path to prosperity
Larry Kudlow
Remember the Lord your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers
Moses
No one can serve two masters: Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and money
Jesus
Choose this day whom you will serve
Joshua
Resources
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