By John E. Stapleford, Professor of Economic Development, Eastern University
Robert Richards cuts to the chase in the very beginning of his book.Scripture, he asserts, makes no explicit case for any worldly system, but a case for capitalism can be made within the doctrines of Christianity.And, "of the world's two dominant economic systems, capitalism and socialism, only capitalism is in accord with the tenets of Christianity."Richards sticks by his guns though almost 500 pages of discussion.
The book begins with a short introduction.Chapter II establishes that God created the world and gave humans stewardship responsibility. All human beings possess an intrinsic dignity that includes the privilege of work.Similarly, all have sinned and fallen short of the glory of God.Chapter III asserts that capitalism encourages creation through entrepreneurship and limits the influence of sinfulness through the actions of a rigorous, unbiased market system."…(T)he profit motive and the price system have saved more lives, brought more people out of poverty, cured more illnesses, educated more people, and assured the political freedom of more people than all of the churches in the world combined." (p 54)
If we seek first the kingdom of God explains Chapter IV, our needs will be met.Private ownership of property is affirmed through Scripture and, together with the price system, is the key to good stewardship of resources.In Chapter V, using extensive quotes from the Old and New Testaments, Richards establishes that prosperity, the abundant life, is God's desire for us.While materialism is a sin, work and the division of labor is central to God's plan of creation, the efficient use of resources, and active charity.
Chapter VI cites Scripture that emphasizes the dangers of material possessions and wealth, most particularly idolatry, envy, and a sense of self-sufficiency.Due to its overwhelming economic success, the capitalist system has made the dangers of wealth more widespread than at any time in history.Disparities in wealth generate envy that is played upon by power hungry politicians.Socialism is, in fact, an economic system based on envy and covetousness.
The obligations that accompany the blessing of wealth, states Chapter VII, are to tithe and to give generously for the purpose of glorifying God.This establishes what Richards terms "The Circular Flow of Prosperity."Giving simply allows God to continue to fill the barns to overflowing (Prv 3:9,10; Mal 3:7).Christianity and capitalism are positive sum games, in contrast to the coercive zero sum games of socialism.In Chapter VIII Richards extols capitalism for encouraging voluntary as opposed to coerced giving.Through satisfying consumer demand, capitalism creates the jobs and wages that lift persons out of poverty and generates the wealth that can support social services to the poor through both taxes and voluntary contributions.Self-interest is recognized as a God-given human trait that leads persons to seek the gift of salvation.
In Chapter IX we are told that Christianity does not need capitalism to flourish.However, many values of Christianity, such as a future orientation, individual liberty, egalitarianism (free markets are neutral), trust, and respect for the individual are conducive to the flourishing of capitalism.
In Chapter X Richards cites and briefly discusses what he terms the seven brilliant outcomes of capitalism.They are:
1)Capitalism has most readily empowered the poor.
2)In a capitalistic society economic power is diffused.
3)Capitalism has led to enlightened stewardship of God's creation (e.g., private corporations' use of sustained yield forestry).
4)Capitalism has fostered political stability.
5)Capitalism has set free and stimulated economic creativity.
6)Capitalism has generated a high level of non-economic goods (e.g., museums, orchestras, universities, hospitals).
7)The ultimate outcome of capitalism in the context of Christianity will be world peace.
Richards expounds further on the final outcome in Chapter XI."(C)apitalism," says Richards, "views the world as one global marketplace and invites all people to participate regardless of race, creed, nationality, color, sex, religion, etc."The law of comparative advantage guarantees every country a place at the table, and most Third-World poverty is a result of internal, not external factors.The development success stories (e.g., Taiwan, South Korea) are countries that have integrated into the Western economies and welcomed foreign investment.And it is private firms, not governments, that have facilitated international connectiveness.
In his conclusion, Chapter XII, Richards reiterates that "the tenets of capitalism are in accord with the tenets of Christianity" (p 401) and that "communism enslaves, socialism debilitates, and democratic capitalism liberates." (p 397)The following chapter (XIII)considers the implications of the conclusions for laypersons and for clergy.Laypersons are encouraged to rejoice at their vocations as capitalists, to recognize God's ownership of everything, to practice genuine generosity, and to not compartmentalize their Christian selves from their vocational selves.Clergy are admonished to learn economics and to intensify their missionary work among the affluent.The book ends with a brief chapter of reflections, 27 pages of end notes, 12 appendices (many consisting of useful compilations of Scripture references on economic topics), and a very comprehensive bibliography.
God and Business is exhaustive and exhausting.The author presents relevant Scripture and commentary from scholars on a wide range of economic issues.Scripture is, however, quoted, not cited, and together with the commentary from scholars comprises almost two-thirds of the text.While the Scripture and commentary are relevant, they are often repetitive and can leave the reader with the sense of wading through rather than revelation.
The book is written for the lay person.Theological terminology is generally avoided.The economics presented is basic (e.g., opportunity cost, consumer surplus, rent control, comparative advantage) and is clearly and thoroughly explained—both in the text and in appendices.There are a few minor technical flaws.For instance, it is claimed a number of times that in order to maximize profits capitalists seek lower prices.This flies in the face of price inelastic demand.Also, the author states that by definition we will never eradicate poverty because "in our society 'poverty' is a relative term."In fact poverty in the U.S. is an absolute measure and, as critics point out, has not kept pace with median income.
The author is an advocate of democratic capitalism.The scholars he quotes tend to have a similar bias, e.g., P.T. Bauer, George Gilder, F.A. Hayek, Irving Kristol, Michael Novak (extensively), Robert A. Sirico, and Thomas Sowell.His enthusiasm and advocacy for capitalism does, at times, slip into hyperbole."There is no group on the face of the earth," says Richards, "including all of the government and church workers combined, that does as much for the world's sick, poor and downtrodden as the capitalists." (p 259)Yet he does acknowledge that much of the cooperation found in business and institutions "is nothing more than superficial friendliness practiced in order to further individual ambition." (p 393)
Although the value of the book as a resource would be enhanced by an index, the book is well researched and represents a significant effort on the part of the author.It is a noteworthy compilation of Scripture pertaining to economic issues.And the author's desire to demonstrate that capitalism is an economic system through which we can practice our Christian principles is accomplished.