Grace Church-Burlington

“Ask five economists and you'll get five different answers (six if one went to Harvard).”                                                                                                                         Edgar R. Fiedler

                A recent Rasmussen Reports survey found that 53% of Americans believe capitalism is a better economic system than socialism. 20% said socialism is superior to capitalism and 27% said they did not know which system is better. Apparently, many Americans are fairly ignorant regarding economic systems. They have to be, because if they properly understood capitalism and the free enterprise system it encourages, they would realize that it is the vehicle that has given Americans the highest standard of living in the world. Capitalism is an economic system whereby wealth and means for creating wealth are privately controlled and owned. This economic vehicle is fueled by free enterprise in which an individual or individuals are free to create and operate businesses for profit with minimal governmental interference. In capitalism the government plays a relatively small role in providing goods and services, but does have the responsibility for upholding laws which protect rights to own property and for maintaining a stable currency.
                Socialism insists on state administration and/or ownership of goods and services. The end which justifies the means for the socialist is equality. The common thread running through all forms of socialism is the belief that capitalism unfairly concentrates power and wealth with only a few. As a result, socialism seeks to distribute, or rather redistribute, a society's wealth more “equally” to all its citizens.
                Though coined by the father of communism, Karl Marx, in 1875, the phrase, "From each according to his ability, to each according to his need," aptly sums up a socialistic worldview. According to socialist theory, every person will produce to the best of his or her ability and each person will receive from this production in accordance to his or her need, regardless of what they’ve produced. The State, of course, is arbiter of the distribution.
                Please understand that no economic system is perfect, and capitalism as well as socialism can both be exploited and misused. That said, I believe capitalism is inherently better than socialism. I would even go so far as to say that capitalism is more Biblical than socialism. Now I did not say that capitalism is Biblical. God’s Word does not contain a culturally transcendent economic model.
                When we’re looking at either theories of government or theories of economics, an important starting point is our view of human nature. This helps us analyze these theories and predict their possible success in society. That’s why we must go to the Scriptures to evaluate the very foundation of each economic theory.
                First, the Bible says that human beings are created in the image of God. This implies that we have both rationality and responsibility. Because we have rationality and volition, we can choose between various competing products and services. Furthermore, we can function within a market system in which people can exercise their power of choice. We can also assume that private property can exist within this system because of the Biblical concept of dominion. In Genesis 1:28, God says we are to subdue the earth and have dominion over the creation. Certainly one aspect of this is that humans can own property in which they can exercise their dominion. Since we have both volition and private property rights, we can then assume that we should have the freedom to exchange these private property rights in a free market where goods and services can be exchanged.
                The second part of human nature is also important. The Bible describes the fall of the world and the fall of mankind. We are fallen creatures with a sin nature. This sinfulness manifests itself in selfishness, greed, and exploitation. Thus, we need some protection in an economic system from the sinful effects of human interaction. Since the Bible teaches about the effects of sinful behavior on the world, we should be concerned about any system that would concentrate economic power and thereby unleash the ravages of sinful behavior on the society. Christians, therefore, should reject state-controlled or centrally controlled economies, which would concentrate power in the hands of a few sinful individuals. Instead, we should support an economic system that disperses power and helps protect us from greed and exploitation.
                Finally, we should also recognize that not only is human nature fallen, but the world is fallen. The world has become a place of decay and scarcity. In a fallen world, we have to be good managers of the limited resources that can be made available in a market economy. God has given us dominion over His creation, and we must be good stewards of the resources at our disposal.
                With capitalism's emphasis on the individual, a person must rely on self and/or God in order to have his or her needs met. Socialism sees the state as sovereign. Consequently, a person comes to rely on the state to have his or her needs met. There is something self-affirming, something that underscores dignity, when a person earns his or her own way. Not only does socialism undermine a person's reliance on self and God, it also undermines an individual's obligation to assist the poor. If the government is redistributing wealth to meet everyone's needs, why should anyone provide additional assistance?
                The free enterprise system has provided the greatest amount of freedom and personal responsibility. It has also delivered the most effective economic gains of any economic system ever devised. Historically, it has also been the friendliest to the Gospel and the Church of Jesus Christ. Is capitalism Christian? No, but its emphasis of the dignity of the individual and personal responsibility make it much more Biblical than socialism, which is something more American Christians need to realize.