Capitalism or Socialism?

I wrote briefly on this subject at SMBI for my ethics class. First, some Robertson McQuilkin for you:

“The advocate of a free market economic system [capitalism] emphasizes freedom and the right to private property, while those who promote a controlled market economy for the welfare of all its citizens [socialism] emphasize justice, fairness, and equality. Capitalism is for freedom, socialism is for equality; neither economic freedom nor equality is very pronounced in Scripture.” (McQuilkin, An Introduction to Biblical Ethics, p. 395)

Here is part of my paper (edited slightly and not complete), referencing McQuilkin:

“He [McQuilkin] also quotes several Christian voices that are strongly for socialism and against capitalism on the grounds that it is antithetical to Christian values such as community, preference of others, and unselfishness.

“I believe that the important question for the believer is not what economic system is philosophically superior, because I don’t believe that can be substantiated clearly by Scripture. Rather, whatever system a person finds himself in, the question is how to live Godly within it.

“The problem with socialism in a practical sense is that as it is by definition a system of governance, and government is often controlled by the unbeliever and used to govern many who are unbelievers as well, it is easily corrupted by taking away personal freedoms for the “good” of the community, the concept of which is controlled by those unbelieving governors. Socialism would work in a Christian setting.

“While the premises of capitalism are more materialistic and less noble than socialism, it functions better because of the fact that it allows more personal freedom.”

Now, let me add a bit more.

Darrow Miller, in Discipling Nations, argues that capitalism is superior precisely because it takes man’s depravity into account, as over against socialism which assumes man’s goodness.

This reinforces my belief that socialism isn’t practical in a secular setting, though if man’s goodness could be safely assumed (a Christian community?), it would be the superior system of governance. Certainly, history has shown that capitalism has produced more wealth and long-term stability than socialism. Furthermore, it is possible to live within a capitalistic society and live a Godly life of community, preference for others, and unselfishness. In doing so, you will be going against the mainstream grain of the dog-eat-dog free market economy, but it is feasible - essential, really - that Christians in our country live in that manner.