Richards, Money, Greed, and God

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Jay W. Richards, Money, Greed, and God: Why Capitalism is the Solution and not the Problem. HarperOne, 2010.

Referenced in: Christian Perspectives on Economics and Public Policy

LifeandLeadership.com Summary

Richards is one of a group of authors such as Scott Rae, Ronald Nash, Michael Novak, Marvin Olasky, and others who possess a strong social conscience and also support capitalism and free-market economics. While not intended as a counter to other Christian authors on social justice such as Jim Wallis and Tony Campolo who are less affirming of capitalism, it does offer an alternative perspective.

For Christian readers, Richards provides what is perhaps the most definitive case for capitalism by an economist. It is the economists’ equivalent for the theological case made by Scott Rae and Austin Hill in The Virtues of Capitalism. Richards receives high reviews from other authorities on this subject such as Michael Novak and Robert Sirico, all of whom are associated with the Acton Institute.

In this volume, Richards acknowledges the problems associated with capitalism, listing the same issues mentioned by anti-capitalists. He identifies with many Christian who, like him, struggle “with the apparent conflict between Christ’s ample warnings about money and the rank materialism of American life.” (3) He relates his own journey from a brief infatuation with Marxism, which progressed to an embrace of democratic socialism, and which finally ended with his defending the practical and moral superiority of capitalism. He writes out of concern that many who criticize capitalism are ill-informed through media caricatures or preachers speaking from their ignorance. He quotes Rich Karlgaard, the Christian publisher of Forbes magazine, that listening to a minister preach on business “is like hearing a eunuch lecture on sex: He may have studied the topic, but really knows little about the mechanics.” (5) Fortunately there is a better basis for Christian conviction. One is the field of economics itself, which is founded on basic facts, and which is now aided by the results of twentieth century’s experiment with the dominant economic theories of the eighteenth and nineteenth centuries. As he says, “the results of that experiment are in.” Richards presents his own attempt to think through scripture, the basic principles of economics, and the lessons of history to dispel eight simple myths that are common in Christian thinking about economics. These eight myths are:

The Nirvana Myth – contrasting capitalism with an unrealizable ideal rather than with its live alternatives
The Piety Myth – focusing on our good intentions rather than on the unintended consequences of our actions
The Zero-Sum Game Myth – believing that trade requires a winner and a loser
The Materialist Myth – believing that wealth isn’t created, it’s simply transferred
The Greed Myth – believing that the essence of capitalism is greed
The Usury Myth – believing that working with money is inherently immoral or that charging interest on money is always exploitative
The Artsy Myth – confusing aesthetic judgments with economic arguments
The Freeze-Frame Myth – believing that things always stay the same – for example assuming that population trends will continue indefinitely, or treating a current “natural resource” as if it will always be needed.

In the process of exposing the myths, Richards also attempts a biblical assessment of economic systems, not simply by proof-texting, but by “taking the core truths of the faith and using them as a lens to cast new light on unexplored territory.” (7) He concludes that there is no contradiction between Christian ethics and capitalism. To the contrary he insists that “to prosper, a market economy needs not just competition,” but also other values that are congruent with Christianity, such as “the rule of the law and virtues like cooperation, stable families, self-sacrifice, a commitment to delayed gratification, and a willingness to risk based on a future hope.” (7) He also demonstrates that the real basis of capitalism is the creation of wealth, which, theologically speaking, is the result of Christians using the creative freedom stemming from their being made in the image of God. This wealth also is the only way to reduce poverty in the long run.

Richards provides an excellent addition to the body of literature that assesses economic systems as necessary for Christians to respond faithfully to the issues of our time. They also serve to balance the current debate among believers regarding capitalism vs. socialism.

Publisher’s Product Description

The good news about capitalism

Jay Richards presents a new approach to capitalism, revealing how it’s fully consistent with Jesus’s teachings and the Christian tradition—and our best bet for renewed economic vigor.

Money, Greed, and God exposes eight myths about capitalism—including the notion that capitalism is based on greed—and demonstrates that a good Christian can be a good capitalist.

Christianity generally sees capitalism as either bad because it causes much of the world’s suffering, or good because God wants you to prosper and be rich. But there is a large, growing audience of evangelical and mainline Christians who are deeply uneasy about how to follow Jesus’s mandate to care for the poor and the environment while living with the excesses of capitalism. Now, a noted Christian scholar argues that there is a middle view that reveals Christianity cannot only accommodate capitalism, but Christian theology can help explain why capitalism works. By highlighting the most common myths committed by Christians when thinking about economics, such as ‘capitalism is based on greed and over consumption’ or ‘if someone becomes rich that automatically means someone else will become poor,’ Money, Greed, and God equips readers to take practical steps in their own lives to conduct business, worship God, and serve others without falling into the ‘prosperity gospel’ trap.

About the Author

Jay W. Richards, Ph.D., is a senior fellow at the Discovery Institute and a contributing editor at The American magazine and the Enterprise Blog at the American Enterprise Institute. Richards has been featured in the New York Times and The Washington Post, and he has appeared on Larry King Live. He also has lectured on economic myths to members of the U.S. Congress.

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