Does the Spirit of Capitalism Encourage Faith in the Markets?
Let’s be honest. The relationship between faith and economics can get pretty messy, and opinions can vary wildly. Just look at any discussion around the U.S. Presidential elections, and you’ll see what I mean.
In this blog, we’ll explore Karl Polanyi’s world to learn how he stumbled upon the big idea that became the backbone of his famous book, The Great Transformation. We’ll also discuss an interesting critique from economist and Nobel Prize winner Friedrich Hayek. Then, we’ll sprinkle insights from Jason Swan Clark’s Evangelicalism and Capitalism, exploring how these ideas connect and clash.
Karl Polanyi led quite an affluent life, soaking up all kinds of experiences and cultures from around the world. He even served in World War I as a cavalry officer. After that, he became an attorney and a political leader. This gave him a unique perspective on how economics, politics, and society relate.[1] “He confronted Nazism, fascism and all forms of dictatorship arguing against the self-regulating market economy (capitalism).”[2] He believed that capitalism “Requires that human beings and the natural environment be turned into pure commodities, which assures the destruction of both society and the natural environment.”[3] This tension turned into the spark for his big ideas, which he shaped into social-economic theories that came to life in his groundbreaking book, The Great Transformation.
Friedrich Hayek, one of Polanyi’s biggest critics, had a similar upbringing but took a totally different worldview. He was all about championing liberal capitalist societies as the supreme economic model, arguing that they should run with as little regulation as possible for peak efficiency. Opposite Polanyi’s view, Hayek felt that a self-regulating market economy would fend off unfavorable forces that lead to totalitarian regimes such as fascism, Nazism, and communism.[4] His utopian perspective caused him to associate freedom with capitalism. Hayek advocated “That they not only generate economic prosperity, efficiency, and growth but also that they guarantee a higher level of individual freedom. This line of rhetoric was frequently employed during the Cold War, especially in the Reagan-Thatcher era of the 1980s.”[5] You can still hear this same buzz in today’s political campaign speeches, echoing like a catchy tune that just won’t go away.
So where does faith come into this picture? In Evangelicalism and Capitalism, author Jason Clark “Dissects how the theological tenets of evangelicalism, such as personal responsibility, individualism, and hard work, align with capitalist values. Because of their similarities, Christians have interpreted evangelicalism as a theological endorsement of capitalism, especially as it relates to free markets and economic growth.”[6]
Specifically, Clark takes issue with “How Evangelicals have acted in response to the forces at work within the development of Capitalism in terms of co-creation, co-option, and resistance.”[7] He utilizes the concept of “pathogeneses,” which involves the messy fallout when evangelicalism and capitalism start getting a little too intertwined. One of his big critiques? The way faith has been turned into a product, with spiritual practices now influenced by market trends setting aside the core Christian values we hold dear.
I have mixed feelings about the success of a free market economy. In many ways, there are notable examples of people rising out of poverty and entrepreneurship; however, it’s no secret the wealth gap is certainly getting wider in today’s market. Still, I find Dr. Clark’s approach refreshing because it focuses on repairing and reclaiming the transformative potential of evangelicalism. He proposes reimagining what it means to be evangelical, one that prioritizes community, justice, and the common good. This aligns well with Polanyi’s vision of an economy that values human dignity over mere profit.
Both authors encourage us to revisit our assumptions about capitalism. Do they match up with our Christian values, words, and actions? If not, it might be time to rethink what’s fueling our economic choices. Perhaps greed and power? Polanyi suggests we weave our economic activities back into our social lives, while Clark champions practices that foster solidarity, justice, and healing. Together, their ideas open the door to a more fair and harmonious world where faith and economics can be nicely woven together. What a dream state!
[1] “Karl Polanyi | Austrian Economist, Sociologist, Philosopher | Britannica.” Last modified October 21, 2024. Accessed October 23, 2024. https://www.britannica.com/biography/Karl-Polanyi.
[2] Filip, Birsen. “Polanyi and Hayek on Freedom, the State, and Economics.” International Journal of Political Economy 41, no. 4 (2012): 69–87. Accessed October 24, 2024. P.71-72. https://www.jstor.org/stable/23408611.
[3] Ibid.pxxv
[4] Ibid p.71
[5] Block, Fred. “Introduction in Karl Polanyi’s Great Transformation.” Auburn University. Last modified 2001. Accessed October 24, 2024. https://www.coursehero.com/file/53469458/Block-Introduction-in-Karl-Polanyis-Great-Transformationpdf/.
[6] Eckert, Jennifer. “Faith and Fortune: Navigating the Crossroads of Evangelicalism and Capitalism,” n.d. Accessed October 24, 2024. https://blogs.georgefox.edu/dlgp/faith-and-fortune-navigating-the-crossroads-of-evangelicalism-and-capitalism/.
[7] Clark, Jason. “Evangelicalism and Capitalism: A Reparative Account and Diagnosis of Pathogeneses in the Relationship.” Faculty Publications – Portland Seminary (June 1, 2018). https://digitalcommons.georgefox.edu/gfes/132.
About the Author
Jennifer Eckert
Fundraising director, people connector, believer in second chances, fights poverty, supports justice reform, lives a life integrated with Matthew 25.11 responses to “Does the Spirit of Capitalism Encourage Faith in the Markets?”
Leave a Reply
You must be logged in to post a comment.
Great post Jennifer! I appreciate your clear insights and connections. With a text as challenging as this what you’ve done here is exceptional. Thank you!
Where is one place you could see faith and economics working together to create this ‘dream state’ you envision?
Thank you, Ryan. I feel the church can and should do more to emphasize ethical behavior, which has been lost in the last few decades. Promoting honesty, integrity, and altruism in business would help strengthen community relationships and government trust.
Hi Jennifer, I appreciate you highlighting Friedrich Hayek and comparing it with Karl Polanyi. It’s just another reminder of how complicated economics can become! You also mentioned this. This week re-emphasized (for me) the importance of seeking wisdom and remaining aware of our Christian response to capitalism. In what ways have you observed faith being turned into a product, especially in the United States?
Thank you, Elysse, for your question and praying over my weekend workshop. I am of the generation that remembers the fall of Jim and Tammy Faye Bakker, Jimmy Swaggart, and others. My great-grandmother always had her television set turned on CBN. She was pretty limited in her income, yet she faithfully sent money to them. Taking advantage of senior citizens (prosperity gospel) is a big area where the church has used capitalism to its benefit.
While I’m glad to know my Great-Grandma trusted Jesus to care for her needs (and He did always provide for her), what some of those faith leaders did was plain wrong.
Jennifer,
I appreciate your post. It is amazing how we have commodified religion. I think of hearing Skye Jethani in one of his Holy Post podcasts (sorry, it would take hours for me to remember which one) about how he was invited to speak at a Christian convention that had lots of vendors selling things to allow your church service to be more like a production and also books and curriculum for your next church wide transformative series. I believe Skye spoke a message discounting the need for any of these things to transform the church. He was never invited back.
In your ministry context of working with prisons, how have you seen the commodification of the prison system? What is one thing you would like to change to stop or prevent this commodification?
Great question, Jeff. You asked how prison is commodified. My immediate response is the system of private prisons that are managed by corporations. States pay them a certain per diem for every person incarcerated, so they are incentivized to keep prison beds full.
I have been opposed to private prisons for many years; however, I recently went to one in Arizona that houses the overflow of incarcerated Hawaiian men. It was shocking to see how clean the facility was. The menu offered quality food, and the prison had a budget line item to fund restorative programs. None of those are true for state-run prisons across the U.S. In fact, state prisons do not have a single line item in their budgets for programs. Rather, they rely 100 percent on churches and non-profits to provide those services. The state merely focuses on warehousing people – a cot and three squares.
Hi Jennifer, thank you for your post.
In your opinion, how does the alignment of evangelical values with capitalist ideals influence contemporary debates about the free market?
Hi Shela, I believe that evangelicals can bring their beliefs about social issues, such as family values and poverty alleviation, into economic discussions.
Their views can shape policies that align free-market principles with initiatives aimed at social justice, such as community development programs.
Jennifer,
Good job on getting a grip on this challenging book. How might you see capitalism and Evangelicalism cross paths in the prison systems?
Jennifer, As I read your conclusion, I wondered how a “more fair and harmonious world where faith and economics [are] nicely woven together” would affect your NPO?
Hi Jennifer, How do you think that dream state might look if faith if our lives matched up with our faith, values and character?