Subscribe now

Christians rightly oppose that which engenders greed and creates an insatiable appetite for more. Critics of capitalism believe that because businesses are always pursuing profit by trying to please consumers, both producers and consumers are always wanting more and more in an endless cycle of materialistic hedonism. They say this creates an unhealthy economy.

Yet at its heart, capitalism is about creating new and innovative ways of using scarce resources for human flourishing. The very term “capital” denotes the use, not depletion, of resources. It is unfortunate that our modern Western economy is labeled “capitalism” because there are large parts of it that depend on the demand for more. In fact, the dominant economic theory most at play is Keynesianism, which is a consumerist vision of the economy. It is inaccurately named “capitalism.”

What critics of capitalism often ignore is the significantly better outcomes for human flourishing that have resulted over the past 200 years. Yes, some people are materialistic, but that isn’t a guaranteed outcome. Capitalism has created a space for humans to flourish materially, and many are now ready to think about and ponder deeper spiritual realities.

Subscribe now

The most popular misunderstanding about free markets results from a misunderstanding of the term competition, probably because we use it in sports where there are winners and losers in a zero-sum game. Yet not all sports are zero-sum (some competitions have various tiers of “winners”), and the free market is especially not a zero-sum game.

A better way to think about competition is that it drives people to pursue the best interests of their customers in ways that rival other businesses. That is, good businesses compete in how much better they can serve customers, and customers reward the businesses that serve them better. This is not a situation of conflict, nor is it an either/or outcome. Even the “lesser” of the two businesses can still win a different customer base. And in reality, most of us want bad businesses to fail so owners can appropriate their resources to more productive uses for society.

In reality, free competition in the market aids in creating a more vibrant and dynamic economy where the needs of everyone are met to a greater degree. When the state is involved, it doesn’t create healthy competition; rather, it sows discord and breeds conflict because it causes businesses to compete for attention, favors, and special privileges. This kind of competition is a destructive force in an economy.

Subscribe now

Many Christians argue against the pursuit of profit, citing Paul’s admonition in 1 Timothy 6:10 that “the love of money is a root of all kinds of evil.” Libertarian Christians concur that the pursuit of money as an end in itself is sinful and damaging to oneself and to others. Anything good and useful that is made ultimate is a form of idolatry. It is not wrong to seek more money because you possess very little and need to make ends meet, or because you wish to provide meaningful work for others. Money used as a tool is wise stewardship. Money as an end-in-itself is where we go astray.

Economic profit-seeking and “the love of money” are not the same concept. In an economic sense, pursuing profit is another way of saying we are utilizing scarce resources to create value for ourselves and others. This does not guarantee good results, but the profit-and-loss system signals to humans that resources are being used properly, not abused.

Pursuing profit is what everyone does every day when they choose to go to work, because both parties agree that they are better off by making the trade. This includes labor. Therefore, every time we go to work, we are engaging in an exchange resulting in us profiting off of the work. From manual laborers to high-level managerial work, everybody seeks an income which covers their expenses, plus some. What is done with that “plus some” is up to each person to decide. Charity, reinvestment, savings, spending—all these are options each individual must decide is right for them (see Question 49).