Some Moral Implications of Capitalism

My view of motivation in life is that all of a person's actions are driven by that person's belief system. Every human, whether a devout worshipper of a deity or an atheist, is religious, because there are certain fundamental things which every person simply assumes without proof, and that is the essence of belief. Thus it is that a person's true religion will be revealed in his or her business dealings.

I am a Christian, believing in God Who created and maintains the universe (and thus by logical extension He is not a part of His universe), and Who gave to mankind a set of definitions of right and wrong contained in the Bible. God will, at some future date, judge both the righteousness and the accomplishments (two separate charges) of every person who has ever lived. The Bible assures me of the conditions for my righteousness, and instructs me as to the proper way to attain my accomplishments. For these reasons the arguments which follow may be uncomfortable for many people who do not hold the same beliefs; I can say that because they are at times uncomfortable for me as well.

The Bible begins with a story that is an allegory with respect to human nature. People had been given instruction as to what constitutes proper behavior. They had been given work to do, and were permitted to enjoy their labor and the fruits of their labor, with one restriction -- the property rights of their Creator must be respected. The desire to take what was not rightfully theirs lead to perversion of their assigned task and dissatisfaction with their gain.

That story of the Beginning is a summation of all of human economic history.

God chose one family, that of Jacob the grandson of Abraham, to hold the instructions for morally correct economic activity. Because the members of that family have more often than not followed the instructions, they have tended to prosper financially, and that prosperity has incited jealousy and persecution throughout history. Anyone wishing to know the secrets of economic propriety has only to read the Torah.

At the root level, the instructions teach that God Who created the universe is the ultimate owner and King of His creation. People are both citizens and employees of Project Earth, and the goal of the enterprise is to maximize both the size of the company workforce and its production, using the provided resources. The competition (The Adversary), on the other hand, works to thwart that goal.

Every person born is provided with some capital; each has a function within the company, and each is given, at some time and at some level, abilities, skills, and/or material goods, to invest in the project. I am of the persuasion that the gifts of The Almighty allow the individual to use the given abilities to develop skills to maximize the capital.

Because the capital is a distribution in trust from The Almighty, absolute human ownership of the capital does not exist. Each human is a steward of some portion, small or large, of the capital intended for the operation of the enterprise. Further, the hoarding of capital, whether the withdrawal of land from the production of food, the failure to use a medium of exchange to encourage work by others, or the restriction of the use of new ideas so as to prevent the profiting by others, is a breech of stewardship, thwarting the goals of Project Earth.

Capital is popularly seen as only money, but labor and ideas are equally important kinds of capital. How that capital is utilized within the micro-economic setting, whether through a free-market system or through a planned-market system, will determine its effectiveness because at the core of human nature is dissatisfaction with what we have been given (in trust) coupled with desire for that we lack. Further, the person's view as to the origin of that capital will influence his perceptions respecting ownership, stewardship, and disposition of that capital.

Maximizing the size of the company workforce and its production (which involves employee working conditions) is a basic goal of the project, so treatment of the employees is a critical concern of the owner. Thus rules were formulated -- don't steal reputations, or money, or spouses, or anything God gave to another employee for any reason. In this is seen the importance to the owner of individual workers, and the need to protect and take care of them. It is also the reason for lower, middle, and upper management, positions which God assigns and uses to govern various branches of the company (nations and kingdoms). Politics is thus a subset of economics, and war is destructive to both.

Profit is the result of attaining the goals of the company. The amount of profit is not necessarily significant to a particular work-shift since the company is a long-term operation, but profit is the goal. Jesus told several parables to illustrate that concept. Profit will result in people having more satisfying lives. Therefore, employees of Project Earth who do not invest in the company in some way (again, amount is not the critical factor) will be condemned for that failure. Extending this concept to monetary investment has encountered some resistance among those who fancy themselves morally pure, since the love of money is the root of all evil.

Profit from the loaning of capital is not wrong in itself, but when it impacts the welfare of the employees, particularly through mortgage interest on their homes, clothing, or food, it endangers the goals of the company. For this reason banking is one of those shadow activities with questionable morality. Usury involves the loaning of capital coupled with holding collateral hostage (a mortgage situation). It is described by the Bible as being evil. The collection of interest on money is not intrinsically evil, and may be legitimate where business lending is needed, but no collateral may be held. The antidote to personal mortgage lending is charitable giving; in the words of Jesus, lending without expecting to be repaid.

Investment is quite different from usury in that the purchaser of a share of an enterprise has no anticipation of a repayment except through sharing the increased profits (or losses, as that may be) of the company. If a business venture is formed through selling 1 share of stock to each of 100 investors, each investor is owner of a 1/100 share of the entire business, with the right to collectively dictate how the business is to be run, and to collect 1/100 of the business profits set aside to be paid to the owners (dividends). No individual shareholder can hold the company assets hostage as collateral. If, through the collective decisions of the shareholders, the business fails, they have no recourse, since it can be argued that the failure was a result of inattention by the shareholders to properly control the management of the work at hand. It can also be argued that the minority shareholders are not necessarily responsible for either the success or failure of the business when there is one stakeholder who controls a majority interest.

In the case of Project Earth, God is the majority shareholder, and He delights in profit-sharing with His employees. For that reason He distributes, as He sees fit, the dividends which each employee then is able to plow back into the enterprise. Dissatisfaction with the type and quantity of capital gain distributed by the King is a symptom of rebellion, but the desire to emulate the King, by donating capital to those who might in some way have less, is encouraged and rewarded by Him, often through a grant of a more diverse and profitable form of capital.

You cannot give to others that which you do not have. Profit from the investment of capital is the engine behind charitable giving. However, reliance on charitable giving to meet the needs of those who lack essentials will rarely bring about the satisfaction the recipients would prefer. If the recipients of such charity fail to find a suitable investment venue in turn, their gift will merely extend their misery. Coveting what another person has is evil, whether the covetous person has little or much. Those who have are expected (but not obligated) to share with those who have not; God will judge the adequacy of their donation. Those who receive a gift are expected to be satisfied with what the donor shares; God will judge the level of their thankfulness. Jesus implied that equality of opportunity is not the same as equality of participation; opportunity would be provided regardless the amount of capital a person would start with. Equality of results is not guaranteed.

What is the function of upper management (the government) in all this? It is to provide oversight of the conditions under which the size of the company, the amount of production, and the level of profit, can be maximized. While the ability to govern is a form of capital, management is not ownership; when management attempts to judge the actions of the shareholders, particularly with regard to disposition of the profits, it risks being replaced by new management more conducive to the desires of the owners. Management which reduces production by starving the enterprise of workers (either through reduction in actual numbers or by discouragement of inflows of new investment capital) and/or resources (by refusing to make them available) is being subversive and will be judged accordingly.

Applying these concepts to individual action leads to the conclusion that surplus capital should be invested in gainful enterprises whenever possible in order that it might be multiplied and ultimately used to provide for those whom God might direct to the individual for assistance. Again, you cannot give to others that which you do not have, and failure to invest carries greater condemnation than investing and failing.