Christian Word: May God's grace be with you
  Is Our Economic System Compatible With Christianity?
05-11-2009   

 


One could write a great deal on this topic, but we have to be very concise in a short article. Moreover, we have to begin with a few definitions. We define a Christian as one who puts Christ first in his life and whose teachings are one's fundamental principles. Those who are not active members of the Body of Christ are not included.


What Is a Capitalist?
In strict economic terms a capitalist is one who owns capital. Capital is different to money and finance. Capital is a good which is used to produce other goods and services, and it therefore takes the form of tools, equipment, factories, etc. A capitalist is also defined as someone who can "wait", i.e. someone who has income or financial resources greater than is needed to finance current consumption. Workers, for example, cannot "wait" because their income is needed to finance their weekly, monthly, or yearly consumption.


Labour and Capital
Capitalists produce things, so they have to be able to wait. This is primarily because products and services cannot be produced immediately;  time is needed for the process of production that creates them. Capitalists generally operate within a market framework and a large part of their power comes precisely from the ability to wait. It is clear that the weakness in labour's position is that workers cannot wait. This is clear when industrial dispute occur and either workers go on strike or capitalists impose a lockout. Capitalists can almost always wait-out the workers.


Capitalists and Markets.
There is another important factor to consider. This is related to markets and how they operate, and concerns the behaviour of capitalists within a competitive market environment.


The behaviour of a capitalist is determined by the market he operates in. The overriding object for him is to survive, and this depends on profits. Profits are the means by which he secures his ability to wait in future periods.


Profit depends on a variety of factors but the main ones are efficient production and creating a market advantage. The latter depends on out-performing and out-thinking competitors. That means producing a product or service of a given quality at a relatively low price.


This brings us to the real crux of the question we are considering. The more competitive a market is, the more difficult it is to out-perform ones competitors. Consequently long term survival is more difficult and each competitor will be forced into using the most efficient form of technology and cheapest labour, wherever the latter might be found


Capitalists dislike this kind of situation because it constantly threatens their long-term survival. But dealing with such conditions of uncertainty is what making profit is supposed to be all about in a market system. Yet capitalists have, and will always will try to reduce uncertainty. Although they always espouse the benefits of the market system, they nonetheless try to get we of their competitors. A strange paradox you might think, but a common reality.


Eliminating Christianity In The Market.
Setting out to deliberately eliminate competitors from the market inevitably and unavoidably eliminate Christian ethics in the market environment. Eliminating competitors hardly constitute loving one's neighbour, and yet historically entrepreneurs have used every means, legal and illegal, to destroy competitors. Remember: competitors and the workers they employ our people.


The first person to present an analysis of the (then very new) market economy was the Scottish lawyer Adam Smith, who wrote The Wealth Of Nations in 1776. He coined the well-known phrase about the "iron hand" of the market to indicate its self-regulating nature, but also that that works essentially on the principle of selfishness. Another non-Christian principle.


Even this very brief analysis indicate that market capitalism is intrinsically opposed to the teachings of Jesus. He defined several principles which are incompatible with market capitalism. There are many scriptures one could quote but one will suffice: Luke 6.27 -- 36 but just repeating verse 3.1: "Do to other people what you would have them do to you". My book "The Path To Freedom" discusses this whole question at length and this passage is supported by many others.


We do not have to be an entrepreneur owning vast amounts of capital to become a culpable part of the system. As employees we also operate within a market system -- the labour market, and we primarily progress by advancing our own interests at the expense of others. Sometimes we do to others what we would not wish them to do to us.


The Consequences?
Even from this very cursory examination it is evident that market capitalism is a system which is incompatible with the basic principles of Christianity. It even contorts major Christian festivals to its own ends. Simply consider Christmas and Easter. Both have become almost entirely devoid of their essential messages.


The market system certainly delivers the goods. It has produced far greater increases in material standards of living than has ever been known before. But the spiritual price has been immense. So what are the consequences and implication for you and me as Christian?


Author:AK Whitehead.Web Site:http://www.christianword.co.uk
All this material copyright but may be used if this is included
Almost 30 years experience in UK and USA in healing, teaching, counselling. Has written numerous articles and several books (available on above web site). Has worked in many other jobs e.g. boatbuilding, lecturing, management.

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