I'm having a discussion with a friend about capitalism and I need to know what is wrong or right about capitalism from a Christian perspective. Also, who is a good definition of capitalism that is serious and not sarcastic? Any help would be appreciated.
2 comments:
I have not read WEALTH OF NATIONS yet, to my shame, but I understand Smith's argument somewhat like this...
Capitalism is rooted in human desire, an attempt to make the best economic system that not only factors in but attempts to account for human behavior. When profit and personal benefit coincide, the result should be a good work ethic and an ethical distribution of resources to those who most deserve it.
The criticisms can come in at several points here. Should we base our economic interactions on human desire, or on something else, like justice or resource management? Doesn't the profit motive make capitalism inherently self-obsessed, and the best participants will develop the worst habits and values? A selfless person can be capitalistic, but he/she will not be successful according to the standards of capitalism. Also, allowing inheritances and trust funds and retirement plans removes the supposed constraints of capitalism to ensure work ethic. As long as some people can obtain money and resources with little effort, the human desire of convenience will combine with the human desire of greed and cause inequality in distribution and treatment. Certain parts of the system become prioritized (think of the white collar/blue collar distinction), and work ethic and just distribution no longer matter.
I believe it is a reasonable theory that tried to account for human psychology but embraced a false optimism about man's self-restraint and personal development. Designing economics around ethics rather than ethics around economics should be an important and respected project, but instead it receives quite a bit of ridicule and dismissal.
I don't know what to say about the Christian response--I'll leave that to others...
I don't really have an answer for you, only a recommendation.
You should read some of the Catholic Social Teaching documents from the 20th century. They really start with Rerum Novarum in 1891, but that one deals more with socialism than capitalism.
Here is a good site that lists them:
http://www.justpeace.org/docu.htm
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