Author Archive | David Kotter

Does the Bible Endorse American Capitalism or Favor Communist Central Planning?

The Bible does not endorse American-style Capitalism, nor did the early church practice Communist central planning in the early chapters of Acts. You will not find Adam Smith prophetically foretold in the Scriptures, nor any allusion to Karl Marx. Republican Party economics is not a required part of Christianity.

Yet, the Bible contains clear economic principles and the early church grew in an environment of buying, selling, borrowing, and hiring. In essence, an economy of free markets and entrepreneurship follows from the commands given by God, though sin has marred the business practices that we experience today. Free markets only require recognition of property rights and the freedom to trade with other people. Further, comparative advantage (people are gifted in different ways) and subjective valuation (people prefer different things) mean that both parties can profit from any voluntary transaction. This mutual benefit from trading is at the heart of free markets and over the past two centuries has lifted the vast majority of people in the world out of abject poverty.

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