Why free market capitalism is the most Christian economic system The integrity of any economic system begins with its view of human nature. Free market capitalism—as described by Adam Smith in his classic 1776 treatise “The Wealth of Nations”—recognizes that human beings are naturally self-interested. But in order to do well by the free market, a person is required to produce a good or service for the benefit of others. Serve the customer well, and you may be rewarded with more customers and more wealth. Thus the free market accounts for original sin by assuming that men are selfish, and it turns that selfishness into a motivation for serving others. In contrast, communism and socialism have a much rosier view of human nature, which is why they fail. Karl Marx believed that human beings could achieve selflessness if only they abolished private property and put all property ownership in the State. With nothing to covet, Marx believed human beings would no longer be covetous. His recipe for the perfect society was, “From each according to his ability, to each according to his need.” In the former Soviet Union, the result was widespread corruption, low productivity, and long lines for everything from bread to shoes to cars to healthcare. Nobody could get ahead, so nobody bothered to try. Eventually, it collapsed; and seeing the fate of its neighbor, Red China plugged into the economies of the West. Similarly, socialists believe that a perfectly just and equal society can be achieved by having Government run the economy. Why? Because Government doesn’t need to make a profit. Without the need to make a profit, socialists believe that Government can be selfless. And if Government is selfless, then a perfectly just and equal society can be achieved by making most or all money into public money and then letting Government decide where and how to spend it. Yet in Greece, public employees ran the Government for their benefit instead of the common good. Now they’re hoping the Germans will pay for their profligacy and save them from bankruptcy. Countless other nations, states, and cities are not far behind Greece. Christ said in John 15:20, “A servant is not greater than his master.” Government is made up of human beings. Accordingly, no Government is perfect because men aren’t perfect. The founding fathers knew this, which is why they created a limited form of government with checks and balances. They didn’t trust government with power because they didn’t trust men with power. Likewise, no economic system is perfect because human beings aren’t perfect. Even free market capitalism must be tempered by charity, compassion, and the rule of law. We close with the classic “two cows” definitions of governments: -Communism: You have two cows. You give them to the Government, and the Government then gives you some milk. -Socialism: You have two cows. The government takes one and gives it to your neighbor. -Fascism: You have two cows. You give them to the Government, and the Government then sells you some milk. -Nazism: You have two cows. The Government takes both and shoots you. -Capitalism: You have two cows. You sell one and buy a bull.
Posted on: Thu, 26 Sep 2013 00:33:08 +0000
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