Roundtable Discussion:
Comparing Types of Economy

We discuss the differences between Capitalism and Socialism, and then examine Biblical Economy as it differs from both according to scripture. We also get into the prejudices of each and how each has become woven into a type of “sacred cow” system politically in the US in the form of Conservative Republican Crony Capitalism vs. Progressive Democratic Socialism (which is like Socialism riding the back of Crony Capitalism’s profits), which each has its partial truths, but then gets it twisted together with sin/falsehoods, especially the greed, fear and idolatry of money.

Abbreviated and Paraphrased History of 3 economic models:

Capitalism

  • Adam Smith generally considered the “Father of Capitalism”, though the term came later. He wrote about the “Invisible Hand” in and free market theory in Theory of Moral Sentiments 1759 and the Wealth of Nations in 1776 which focused on free markets (laissez-faire vs. planned economy) and unqualified benefits of “the self-interest”.
  • He identified with the Age of Enlightenment 1700-1800s through mentor David Hume and others, where reason supplanted concepts of being under “superstition of the gods”, adopting the philosophy of Descartes “I think therefore I am”.
  • Karl Marx birthed the term Capitalism in 1867 (see below)
  • John Maynard Keynes comments on the volatility and irrationality of free markets using the term “Animal Spirits” in his 1936 work The General Theory of Employment, Interest, and Money, which describes the business cycle in a free market economy.
  • Milton Friedman NYT article 1970 publishes the “Friedman Doctrine” further refining what modern capitalism is in its purest form
  • Effectively separates corporate action “a corporation is not a person” from individual moral responsibility. There is no moral responsibility beyond “profit” as long as it is made “within the rules” (presumably of current law).

Socialism

  • Marxism does not have a basis for law, only a critic of law at the time, which was common law
  • Karl Marx and Friedrich Engles published the Communist Manifesto 1848, The Condition of the Working Class in England 1848, and Das Kapital 1867, highlighting injustices in the industrial revolution and exploitation of workers to justify an alternative economy
  • Lenin implements Marxist ideas into Communism of the Soviet Union. China, Vietnam and other nations followed. Soviet Union collapses in 1989.
  • Progressive movement forms in USA under Woodrow Wilson 1900s, FDR 1930s growing the role of government and the taxes to support it, moving towards socialism

Biblical Economy

“Stand at the crossroads and look; ask for the ancient paths, ask where the good way is, and walk in it, and you will find rest for your souls.” – Jeremiah 6:16

  • Edenic Covenant (or Adamic Law) – Sabbath, permission (Tree of Life) and prohibition (Tree of Knowledge), etc.
  • Noahic Covenant / Noahide laws (seven laws) – including no idolatry, courts of justice
  • Abrahamic Covenant
  • Mosaic laws – range of law including economic, moral and ethical; the power to produce wealth is to confirm covenant that God made with his people (Exodus 8)
  • New Covenant in Jesus’ blood – sermon on the mount focusing on the heart, even before the act