Saturday, 22 August 2009

  • Capitalism: The Christian Advantage?

    Let's start out with one of Jesus' parables, The Talents from the Gospel of Saint Matthew.

    13 “Therefore stay alert, because you do not know the day or the hour. 14 For it is like a man going on a journey, who summoned his slaves and entrusted his property to them. 15 To one he gave five talents, to another two, and to another one, each according to his ability. Then he went on his journey. 16 The one who had received five talents went off right away and put his money to work and gained five more. 17 In the same way, the one who had two gained two more. 18 But the one who had received one talent went out and dug a hole in the ground and hid his master’s money in it. 19 After a long time, the master of those slaves came and settled his accounts with them. 20 The one who had received the five talents came and brought five more, saying, ‘Sir, you entrusted me with five talents. See, I have gained five more.’ 21 His master answered, ‘Well done, good and faithful slave! You have been faithful in a few things. I will put you in charge of many things. Enter into the joy of your master.’ 22 The one with the two talents also came and said, ‘Sir, you entrusted two talents to me. See, I have gained two more.’ 23 His master answered, ‘Well done, good and faithful slave! You have been faithful with a few things. I will put you in charge of many things. Enter into the joy of your master.’ 24 Then the one who had received the one talent came and said, ‘Sir, I knew that you were a hard man, harvesting where you did not sow, and gathering where you did not scatter seed, 25 so I was afraid, and I went and hid your talent in the ground. See, you have what is yours.’ 26 But his master answered, ‘Evil and lazy slave! So you knew that I harvest where I didn’t sow and gather where I didn’t scatter? 27 Then you should have deposited my money with the bankers, and on my return I would have received my money back with interest! 28 Therefore take the talent from him and give it to the one who has ten. 29 For the one who has will be given more, and he will have more than enough. But the one who does not have, even what he has will be taken from him. 30 And throw that worthless slave into the outer darkness, where there will be weeping and gnashing of teeth’” (Matthew 25:13-30).

    My purpose here is not to use Scripture to justify an economic system but to show that a basic idea behind capitalism was well known even in the ancient Greco-Roman world.  That idea is that in a free market economy money goes to work for its owner and multiplies itself making the owner more prosperous.  Money works 24 hours a day, multiplying itself even when the owner is not working.

    Consequently, capitalism has the power to generate enough wealth to liberate the individual from ever having to work under the domination of another or for that matter from ever having to work again.

    The growth of money in a free market system is actually wealth being created out of nothing.  That is what defines creation.  The power of creation is a Godly power.  And since man was created in the image of God (Genesis 1:26) and given dominion "over all the earth," man has dominion over wealth too.

    With our God-given nature to exercise dominion over our lives and our wealth it is our birth right to design and create the life of our dreams.  Capitalism allows that to happen in a very practical way.  Given time and wise investments every human being can be liberated from the drudgery of having to work for a living.  Instead, possessing limitless wealth, the human being can choose to work for the Master multiplying his wealth (a metaphor for working in a ministry full time). 

    The wealth of the Master is actually the Kingdom of Heaven.  And we see from the parable that the stewards of the talents were putting money to work according to the will of the Master.  This is another Christian advantage.  In a Christian culture working for one's self interest actually benefits others and brings the Kingdom of Heaven into the world because we are living according to the will of the Master.

    With all the riches and liberty that capitalism can bring to mankind how is it possible for it to be so poorly understood and vilified?

    Do you agree? Is capitalism a "Christian advantage?"

Comments (113)

  • SirNickDon@xanga

    Does this mean that a Sabbath-observing Christian should pull their money out of their portfolio over the weekend, since creation is something we should be refraining from on the day of rest?

  • SirNickDon@xanga

    But in seriousness, I think that "all the riches and liberty" that capitalism brings is the object of a type of faith in the free market, not an observable reality.  Capitalism is an economic system that brings both freedom and unfreedom, both wealth and poverty, much like any other economic system.  It may be preferable to all other options, but I don't think Christians can participate in the free market wholesale and feel morally justified doing so. 

    There is a distinctly Christian way to purchase, produce and consume things within a "free market."

  • fallingraindrop@xanga

    @SirNickDon@xanga - Jesus said that the sabbath was made for man (Mark 2:27).


    Therefore money may continue working, even on the sabbath!

  • fallingraindrop@xanga

    @SirNickDon@xanga - Capitalism is an economic system that brings both freedom and unfreedom, both wealth and poverty, much like any other economic system. 


    What other economic system are you referring too?  Capitalism generates so much wealth that scarcity need not ever be a problem again.  In fact if you look at almost any book on economics you will find the word "scarcity" the definition of "economics".  Even after almost four centuries of capitalism the textbooks haven't even caught up with it.


    Understanding the priniciples of economics is like understanding the principles of science.  They are morally neutral.  Physical principles define physical reality.  Those who defy natural principles end up having a hard time of it.


    Capitalism eliminates scarcity.  So why is there still scarcity?  Knowing the answer to that questions is "The Christian Advantage".

  • SirNickDon@xanga

    @fallingraindrop@xanga - For instance, mercantilism.  Or, feudalism.  I'm a big fan of gift economies, like what many of the Pac NW tribes utilized, but still they create both freedoms and unfreedoms. 

    I absolutely agree that the principles of economic systems are morally neutral.  That means that they can be used for good or bad ends, which is why Christian participation in them (including capitalism) will has to be selective and discerning.  Capitalism isn't good or bad, it's just neutral.  Many proponents of capitalism act like my buying a new car is a morally praiseworthy act, because "all boats benefit from a rising tide," and so on.

    Scarcity exists because people hoard.  That is why the top ten percent of Americans own more than the remaining ninety percent combined. 

  • fallingraindrop@xanga

    @SirNickDon@xanga - For instance, mercantilism.  Or, feudalism.


    Mercantilism and feudalism do not generate wealth or create wealth.  They merely distribute limited resources to the top rung of the economic ladder.


    But because capitalism actually creates wealth all members of a capitalist economy can become outrageously rich. 


    Consequently, scarcity becomes a moral issue not an economic one.  That's why I wrote this article.  Since capitalism eliminates scarcity why does scarcity still exist?


    And why do far too many Christians focus on scarcity which should not exist instead of focusing on generating wealth in order to help the poor?  Also, by generating sufficient wealth working is no longer necessary and the Christian can then go into full time ministry.

  • Demetrios_of_Phaleron@xanga

    @fallingraindrop@xanga - "Since capitalism eliminates scarcity, why does it still exist?"  That's akin to saying "This magic amulet drives away all insects, so why are there mosquitoes swarming around it?"  Obviously, the continued existence of inequality proves that capitalism does *not* magically eliminate scarcity - which is unsurprising, since economics is a social science, not a physical science, and doesn't operate according to fixed laws.

  • subSacred@xanga

    Most economic systems can be used for good or bad. It is man's innate sinfulness and greed that gives capitalism a bad image. Working for one's self interest can benefit others, but doesn't have to if we don't want it to...and there are many people who don't want it to. There are obviously many other huge kinks in capitalism, or else there would not be so many people trapped in cycles of poverty or waiting in unemployment lines. The Church in Acts demonstrated a form of socialism, yet socialism has been proven to have the potential of being very disastrous. From a Christian perspective, the best economic system is to work hard, be wise with investments, and generously care for those who have less. Capitalism certainly has some of the best advantages that allow for this, but people do not always use it in this manner. 

  • SirNickDon@xanga

    @fallingraindrop@xanga - The idea that capitalism creates wealth is a religious notion, and is misguided.  How could any system create wealth?  Wealth is things and/or the potential to attain things, and there are only so many things to go around.  Capitalism (or mercantilism or any other system) can't produce more things; there is a finite production capacity. 

  • fallingraindrop@xanga

    @Demetrios_of_Phaleron@xanga - Obviously, the continued existence of inequality proves that capitalism does *not* magically eliminate scarcity - which is unsurprising, since economics is a social science, not a physical science, and doesn't operate according to fixed laws.


    Begging your pardon but that is not correct.  If a person working at McDonalds saved a little of his money for 40 years he would retire a millionaire.  The principle of money compounding in value over time works for the rich and the poor alike.


    A major purpose of getting educated is to be able to gain access to better, higher paying jobs.  That necessarily means the time necessary to become independently wealthy becomes far less than the McDonalds worker.


    And just think, if the first generation of a family becomes rich, all future generations will start our rich and may be in full time ministry from cradle to grave.


    That sounds like the Kingdom of Heaven on earth.

  • fallingraindrop@xanga

    @SirNickDon@xanga -  The idea that capitalism creates wealth is a religious notion, and is misguided.  How could any system create wealth? 


    That's what capitalism does.  It creates wealth.  The pie always gets bigger and bigger.  Capitalism is not a religious notion.  The principles of capitalism work for anyone regardless of their religious beliefs.


    Religion only works for those who have faith in God.  Faith in God is outside the realm of economics though economic metaphors may used just as Jesus used them in his Parable of the Talents.

  • SirNickDon@xanga

    @fallingraindrop@xanga - Give me an example of capitalism creating wealth.  We may be discussing two different things.  

  • too_pretty_to_die@xanga

    in my opinion, capitalism is only as good as the people at the top (like most systems of... well, anything).  i've become less and less of a fan of it over time.  in this job market, my upcoming four-year degree is going to be worthless.  i would have done better to go to community college and get an AS.  

  • fallingraindrop@xanga

    @too_pretty_to_die@xanga - capitalism is only as good as the people at the top


    Then why not work to become a person at the top?  Capitalism is the only system that permits that no matter who you are or where you come from.


    Capitalism is still subject to economic cycles.  But for those who understand the principles of capitalism it is still possible to become filthy rich in an economic downturn. 


    The present situation in the United States economy was caused not from capitalism but from an unholy alliance between government, banking and real estate interests.  The crimes of governments that have grown into tyrannies is another topic altogether.

  • too_pretty_to_die@xanga

    @fallingraindrop@xanga - because i'm not really interested in getting to the top.  i chose my career field because i'd enjoy it, not because i'd make a ton of money.  all i'm concerned about is being able to live comfortably.  i don't want to be rich for the sake of being rich.  people like that just seem selfish and disgusting to me.

  • soy_esteban@xanga

    @fallingraindrop@xanga - I think I asked you this before and didn't get a response: Why is getting rich so important?

  • fallingraindrop@xanga

    @soy_esteban@xanga - I think I asked you this before and didn't get a response: Why is getting rich so important?


    If you read the Parable of the Talents, Jesus makes a point that the people who were the best stewards were the ones who put their resources to work and multiplied them. So it isn't that getting rich need be important.  What is important is being a good steward of those resources that come under our influence.


    In a capitalistic economy like the US almost every citizen is insanely wealthy by historical standards.  Therefore it is our obligation to be good stewards to what was so graciously given to us. 


    It is our duty to increase, multiply and be fruitful.  That is a directive from God himself.

  • fallingraindrop@xanga

    @too_pretty_to_die@xanga - because i'm not really interested in getting to the top.



    Excellent point.  But you can still save and invest money.  And like the characters in Jesus' parable you put your money to work for you.  The capitalist principle involved here is to have your money go to work so you don't have to.



    In time, your money will multiply until you find yourself independently wealthy.  All the while you were enjoying the profession of your choice.



    Isn't that great?!  Isn't that just magnificently hopeful?!

  • fallingraindrop@xanga

    @SirNickDon@xanga - How so?  What is the pie?  What makes it bigger?



    The pie is the amount of wealth possessed by and circulating in, an economy.



    The reason capitalism works is because it is based on the notion that wealth comes from providing goods and services to those who need or want them.  This is different than fighting over the possession and distribution of limited tangible resources like land or gold.



    That makes capitalism Godly.  It is based not on possessing but on creating, giving and serving.  The more a person creates, gives and serves the richer he gets.



    Creativity comes from the human mind and in essense is materially nothing.   Taking an idea to provide goods and services and making it a reality is the act of creation.  Creation is Godly.  Creation is what God does.  The more we can act like God the better we will all be. 


    Capitalism allows any human being to minister to those in need in a Godly (re creative) way.

  • fallingraindrop@xanga

    @Demetrios_of_Phaleron@xanga - Obviously, the continued existence of inequality proves that capitalism does [i]not[/i] magically make eliminate scarcity 


    The notion that inequality is somehow wrong is a Marxist-communist notion.  The universe as created has diversity as a reality.


    We should all be equal under the law vis a vis our basic human rights, but that we should all somehow be economically equal simply defies what is possible.


    There are great philosophical problems with the Marxist-communist notion of equality.  For example, who determines the level or standard at which we start making things equal?  As with most Marxist ideas the need for an absurdly tyrannical power to make standards work is explicit.


    Such tyranny is antithetical to Christian morality.

  • WasaiWarrior@xanga

    @fallingraindrop@xanga - Technically, capitalism is predicated on the concept of (relatively) free markets, which operate (largely) on economic theory, of which one of the most fundamental principles is scarcity of resources.  Also technically, wealth is a relative term that is assigned based (significantly) on speculation.  The increase in wealth that you speak of can be an artifact of many things, some of which add value (e.g. investment of goods and services) and some of which are not (inflation, false market expectations).  Even the concept of interest exists only to compensate/compete with the opportunity cost of not investing that money elsewhere (in other words, it is NOT that the money comes out of nothing; in fact, the whole term "capitalism" itself assumes that you have some initial capital to invest with!)  I guess my point is that even capitalism, though operating with the goal of increasing wealth, depends on competition, which itself depends on the concept of competition, a decidedly foreign concept to the Garden of Eden (and, presumably, the kingdom of God).

    Consider the parable of the unmerciful servant (Matthew 18), where the master forgives an incredible amount of debt; not a very economic or capitalistic solution.  Or consider the parable of the lost sheep, where a shepherd leaves 99 secure investments in dubious condition to secure one more. So while I do agree that we are Biblically charged to be wise and productive with our finances, I don't think capitalism is as directly correlated as you imply.

  • ChrisRusso@xanga

    "Consequently, capitalism has the power to generate enough wealth to
    liberate the individual from ever having to work under the domination
    of another..."

    Except in the parable that you're drawing this from, even the servant who multiplies his ten talents remained a servant.  Our goal as a Christian is not necessarily to be free from servitude--in fact we are bondservants of Jesus, etc. 

    You also mention being free from ever having to work again.  A tantalizing concept, to be sure, yet not one that is our lot as fallen humans.  See the curse given to Adam after the fall, especially regarding thorns and thistles.  Our bread comes by sweat--if not ours, then by someone else's. There is always work for wealth.

    While wealth can be multiplied by a wise investor, my concern is that you are placing far too much emphasis on it.  Remember that Christians profess to follow the teachings of a homeless rabbi.  Remember, too, the words of Solomon: "Better a poor man whose walk is blameless than a rich man whose ways are perverse."  The love of money can lead one into all kinds of error--we are to use wealth but be careful that wealth has no power over us.

    It's also worth considering that, as much as this parable seems to be a capitalist example, the early church as described in Acts 2 equally resembles communism.  Is Scripture contradictory in its financial advice?  Hardly.  Because in neither case is this financial advice.  The multiplication of wealth mentioned in this parable is not the point of this parable, just as the communal living of the early church is not the point of that description of the early church.  Don't look for monetary theory where it wasn't intended.

  • ChrisRusso@xanga

    @WasaiWarrior@xanga - Hah--I like your answer better than mine.  Nicely said.

  • fallingraindrop@xanga

    @WasaiWarrior@xanga -  Technically, capitalism is predicated on the concept of (relatively) free markets, which operate (largely) on economic theory, of which one of the most fundamental principles is scarcity of resources. 


    That notion of scarcity is wrong.  Simple observation of our modern economy puts the lie to that.  Our economy is now information driven.  Information can be multiplied infinitely and thus is not scarce.  Therefore shortage is a matter of injustice and morality not economics.


    The number of ideas in the human mind are also infinite. And those infinite number of ideas can be turned into reality.  That is creation.  Creation is abundance.  Capitalism is based on creativity and so by its very nature brings limitless abundance.


    Technology, defined as "doing something better" is infinite also.  There is no shortage of land, resources or wealth because the human mind was designed to always find a way to "do something better".


    I find it strange that Marxism, a philosophy of death, distruction and catastrophic failure has so possessed the thinking of our most educated people.  Case in point, your concept of competition.  Without competition everything wastes away.  Competition is good because it powers improvement.  Human beings are naturally competitive.


    Remember, there is no utopia in this world.  But we can maximize our creativity and productivity.  Capitalism is a necessary and glorious part of that picture.

  • ChrisRusso@xanga

    @fallingraindrop@xanga - "Then why not work to become a person at the top?"

    Because our mission here is to be servants to the people on the bottom. It's strongly hinted in Scripture that we should be giving our wealth away with both hands, rather than gathering it for ourselves.

    'Then [Jesus] said to them, "Watch out! Be on your guard against all kinds
    of greed; a man's life does not consist in the abundance of his
    possessions." And he told them this parable: "The ground of a certain rich man produced a good crop. He thought to himself, 'What shall I do? I have no place to store my crops.' Then
    he said, 'This is what I'll do. I will tear down my barns and build
    bigger ones, and there I will store all my grain and my goods. And I'll say to myself, "You have plenty of good things laid up for many years. Take life easy; eat, drink and be merry."' But
    God said to him, 'You fool! This very night your life will be demanded
    from you. Then who will get what you have prepared for yourself?'"'

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