Rudy linked to an opinion by Jonah Goldberg on National Review Online, “The Spoiled Children of Capitalism.” “Leaving religion out of it, no idea has given more to humanity,” than capitalism, argues Goldberg. It has generated more wealth for more people than any economic system prior to it or since its inception and has given rise to innovations in health and sanitation that benefit all of humanity. Capitalism does produce goods and material wealth, but these are fringe benefits, Goldberg says. The real wealth that nations hold is more intangible, “the stuff in our heads, our hearts, and our books,” which “accounts for 82 percent of [the U. S.’] wealth.” Goldberg thus takes issue with the critics within capitalism that arise whenever markets take a downturn. He calls them the spoiled children of capitalism. These voices levy complaints that capitalism focuses too much on the individual and not on the group. Goldberg counters by naming some of the failures of socialism—inefficiency and infighting—and saying overall, capitalism has done more for humanity than the economic systems that state their primary goal is for developing community.

I think the opinion offers a helpful defense of capitalism. I appreciate his argument that a nation’s wealth is not only in terms of material goods. If the focus is merely on building more factories that produce products we want to consume, well then we don’t necessarily need a market economy to bring that about. I wish, however, Goldberg would give more attention to critics of capitalism that claim it has an atomizing effect on societies. Many of these concerns do not come from spoiled brats, but from considerate minds who have real questions about how capitalism shapes “the stuff in our heads, our hearts, and our books.” There is a feedback loop between our character and the systems we create. Yes, our values shape the market; we would do well to remember that the market returns the favor.

In a recent interview on the radio show, Speaking of Faith: The Business of Doing Good, Jonathan Greenblatt, co-founder of Ethos Water, discusses shifting capitalism away from the theories of economist and Nobel Laureate Milton Friedman, which have dominated capitalistic thought for the past fifty years. According to the program, Friedman was a strong proponent of the idea that the private sector can do a much better job than government at solving problems. (We certainly have seen great innovations come from the private sector to alleviate numerous problems around the world. Greenblatt agrees that governmental aid cannot be the only model for addressing global poverty. He sees much room and hope for an amalgamation of philanthropy, business innovation, and aid.) Greenblatt goes on to say, however, that Friedman saw, “that the purpose of a corporation is to generate profit for its shareholders.” Friedman argued, “the world runs on individuals pursuing their separate interests.” If that is not the definition of atomization, I don’t know what is, and I’m concerned that Friedman’s theories have dominated capitalistic thinking for so long.

How is the Christian to look at the data before us? In Philippians 2.4, Paul writes, “Let each of you look not to your own interests, but to the interests of others.” Friedman likely describes our natural instinct, that is, it does not take training to be selfish. Paul, on the other hand, gives us a vision of the world how God wants it and that vision demands character formation. Are Christianity and capitalism diametrically opposed to each other? I do not think so, but I may not say the same of Christianity and Friedmanism. Capitalism, if rightly focused on God and God’s purposes, can likely be a force of community, or social capital. While Greenblatt does not discuss any sort of a Christian basis for his understanding of economics, he does argue that our values should shape how markets and business operate. His vision is based in what he calls “pragmatic idealism.” With regard to Friedman’s understanding of shareholders and their inherent selfishness, Greenblatt says:

The challenge or the opportunity of today is that shareholders’ interests have changed, and they no longer think only about the bottom line. They realize that the bottom line needs to be considered on a more contextual basis. And so businesses that win in the marketplace will be those that deliver great products and services, make no mistake. They have to achieve profits and succeed in their categories, but at the same time you can drive social good in a way that creates a tighter, richer, and more enduring value proposition for everyone.

Goldberg is right to defend capitalism against those who see it as a failed system—I would not want to give up many of the innovations that have arisen because of it. Those that thoughtfully criticize capitalism for exploiting our selfish nature also have a legitimate argument. The criticisms of capitalism as it is now may be a matter of degree rather than kind. I would be curious to hear both Goldberg and capitalism’s critics respond to Greenblatt’s socially responsible business models and theories.