Righteous Capitalism Read online

  Greed and Flattery

  A boss who praises you, but pays terribly may be giving all that he or she can. The market demands that we all must accept the wages that a business can afford. But, the sweet talk of greedy people is not to be trusted. And, the praises of a CEO sound hollow if he or she takes home more before lunch on the first day of work than the average worker makes all year.

  Flattery is hollow and meaningless without actions to back it up. Some corporate leaders speak of love and fuzzy feelings of teamwork, but are in reality greedy for unjust gain.[47] The gold watch after decades of loyal service is a hollow reward if the boss has taken a grossly selfish portion of the profits.

  Greed and Guise

  We all put on a disguise to some extent, but greedy people may be among the most adept at it. They may look good on the outside but it’s just an act. Unrighteous capitalism is disguised as doing good.

  The vile and selfish trading practices of monopolies masquerade as a free-market but are in fact corporate protectionism, crony capitalism. The façade fools simple people, but thinkers can see that within they are full of greedy corruption.[48]

  Greed and Short-sightedness

  Greed is a short-sighted approach to life. Businesses that take short-cuts eventually lose community trust and those companies do not last. Avarice destroys an industry’s long term prospects.

  Honesty is for the long haul, for businesses that want to last.

  The saying, “he who dies with the most toys wins” is for losers who define human life by material things. Possessions do not define our lives. Real wealth is defined by those things which last an eternity.[49]

  Greed and other Evils

  Greed is among a list of society’s worst evils. It accompanies adultery, murder, theft, deceit,[50] maliciousness,[51] extortion,[52] lasciviousness,[53] immorality,[54] quarreling and dishonest gain.[55] Greed is one of the great evils of our age.

  Because of greed, unrighteous capitalism destroys both society and the individuals involved. Unrighteous capitalism is not long-term capitalism, but short-sighted capitalism that ignores the damaging consequences of corruption.

  Unrighteous Capitalism and Extortion

  When the organized crime squeezes money out of legitimate businesses, they can go to jail. But, when large corporations crush small business with excessive fees or unaffordable discounts, governments do little or nothing. Extortion is normal business practice in a corrupt market place. Ancient Roman soldiers were known for it[56] and only the manner of corruption has changed since. When companies overcharge customers there is little or no difference.

  Another form of extortion results from monopolies. Not all monopolies are wrong. God has a monopoly on everything, but it is not an oppressive monopoly. Government, by its nature is a monopoly. The problem is not the fact of monopoly but the corruption that too often accompanies monopoly.

  In the hands of mere human beings, even righteous individuals, oppression goes along with power and money. Why do we think that religious Europe and New England were such oppressive places? Even the most righteous of us is blind to our own sins, our use of oppression and extortion. We need to be careful to avoid them.

  We are taught to charge “what the market will bear” rather than do what is right. Yet, there is a difference for the righteous capitalist. There are many forms of unrighteous capitalism. What principles make for righteous capitalism? Let’s look at that in the second half of the book.

  Unrighteous Capitalism Destroys

  Any business or nation that is built by bloodshed, violent injustice and bribery is building in its own destruction. Shoe merchants, copper miners, explosives manufacturers, steel companies and tool makers all tend to love war, because then they can make huge profits selling to the government. But our young men and women on the front lines pay the price. They pay with their lives and they pay with destroyed emotions and their families pay dearly as well. If we have to go to war, let’s make sure that it is really necessary and for self-defense rather than motivated by profit.

  But, bloodshed is not just on the battlefields. Blood is figuratively-speaking in the streets of our nations as our markets engage in commercial warfare. Indirectly, many businesses cause blood to be shed either by selling cancer-causing products like cigarettes or by paying such low wages that people are forced to resort to self-destructive means of making a living, like selling drugs or turning to prostitution.

  Violent injustice is in our prisons which are filled overwhelmingly with the poor. Although some white collar crime is punished, most of our prisons are filled with criminals charged with far less costly crimes.

  Bribery is rampant in our culture. A comedian once suggested that perhaps we should insist that our politicians dress like race car drivers, wearing the logos of those who contributed to their campaigns and whose lobbying they listen to.

  Poor people find it almost impossible to get an audience with legislators, but the wealthy can much more easily. They own Washington and Berlin and Canberra and the poor have no voice except to strike. Striking is a destructive plea for help, when no other means seems to avail. When the poor cry in pain, few hear their voices, and the wealthy often ignore them, but when the rich are challenged their cry is heard everywhere.

  The ancient prophet Micah’s warned that a nation or business built by destroying lives, by bribery and injustice will be plowed as a field.[57]

  Righteous Capitalism

  The Caux Round Table (Moral Capitalism at Work) is a good resource for a moral point of view.[58] The Caux Round Table’s Pegasus Monthly Newsletter is an excellent resource. In this book I argue for a higher standard than fickle human morality, an absolute morality from a greater source. I reason from a viewpoint of the theology behind morality and how it might apply to righteous capitalism.

  To what level of unrighteous capitalism has America sunk? Do we need to rescue America from the clutches of today’s robber barons and return it to the democracy of Thomas Jefferson, a vision of egalitarian capitalism without the cronies?[59] Even Bill Gates, whose company was sometimes accused of trying to monopolize an industry, said that capitalism must do good things.[60] Some believe that the left hates the rich, but is that the truth? Is it not that they hate the predators, unjustified privilege, unfairness and crony capitalism?[61]

  If Winslow Jones pioneered the hedge fund, George Doriot prepared modern venture capitalism, and Victor Prosner initiated hostile takeovers, now disguised under the name “private equity,” could these three be described as the fathers of the instability of modern financial capitalism, of today’s unrighteous capitalism? Are these three systems among the main drivers of today’s super-rich as some believe?[62] Is this really what we could call a form of capitalism that benefits the country as a whole?

  What is righteous capitalism? Is it not the using of goods and services for the improvement of the whole of society, not just a single company or individual?

  The Great Principle of Righteous Capitalism

  The greatest commandment of righteous capitalism is an antique one:

  Thou shalt love the Lord thy God with all thy heart, and with all thy soul, and with all thy mind… Thou shalt love thy neighbour as thyself.[63]

  The second half of that commandment is called the Golden Rule and it is a principle found in every major religion since ancient Babylon and the Code of Hammurabi. The Lex talionis (an eye for an eye) is a principle of reciprocity (fairness). May I suggest that the Golden Rule also applies to business and is therefore a standard of righteous capitalism? That great principle essentially includes the love of God. We cannot claim to love God unless we treat God in our neighbors with love.[64]

  May I suggest that the so called “gold rule” is the standard of unrighteous capitalism? The one who has the gold rules, or as some like it, the one with the gold makes the rules. Unrighteous capitalism is essentially selfish.

  Does not selfish capitalism ask, “Am I my brother’s keeper?”[65] Does not unselfi
sh capitalism answer, “Love your neighbor as yourself”?[66]

  The Greatest Commandment must be the most important principle in sustainable and honorable capitalism, love God and neighbor.[67] How does this work in business? Let’s look at some examples.

  Righteous Capitalism and Giving

  Solomon advised the wealthy to give generously. Wealth given away may seem to be lost, like casting bread upon water. But there is a universal principle involved here. That bread seemingly cast away will return even though it may seem to be lost forever. Our goal ought to be to spread material blessings around to as many people as possible. We never know! This could be the day we die and what better day to die than a day when we gave selflessly.

  We easily excuse our actions, saying we don’t have time or don’t trust that the money will be well-used. But what better use of our money could there be than giving freely? Wealth deceives us that it is profit for us, but money is no real profit unless it is given away. Philanthropy is where the real profit lies.

  Our real job on earth is not creating profits for our companies and ourselves, but to be a blessing to others. We have good work to do. Take a lesson from the rain cloud. It is no good unless it empties itself. Let’s not be tired of giving, because in God's time, we will reap abundantly.[68]

  Giving and the Causes of Poverty

  One of the first topics of conversation, when speaking of giving, is the sweeping false accusation often leveled against the poor of laziness. It is a lie foisted upon us by those who wish to find an excuse not to give. There are many causes of poverty and slothfulness is one of the least.

  Even if laziness were the main cause of poverty, which it is not, God does not give us the privilege of hard-heartedness towards the poor.[69] Half of Americans will experience poverty at some time in their lives. Declining unions have led to reductions in everyone’s wages. Now, in the early part of the 21st century, a quarter of Americans earn poverty-level incomes.

  People without a high school diploma are 3 to 5 times more likely to be poor than college graduates. Fathers leaving their families make it 3 to 4 times more likely for those same families to be poor. Only about a third of disabled people are able to find work. Women experiencing domestic abuse are twice as likely to be unemployed.

  Women, minorities, children, immigrants, the disabled and female-headed households face far greater poverty rates than the rest of us. Loss of job, declining wages, poor education, fathers leaving, having children and disability are major causes of poverty. Slothfulness is a cause in only a small minority of cases. Our job is to feed the hungry.[70]

  Poverty may also be caused by overpopulation, inadequate distribution methods, rising costs, inadequate education, unemployment and under-employment, crime and unjust incarceration, environmental degradation, foolish financial decisions, excessive medical expenses, sickness, mergers and acquisitions, hostile takeovers, greed, the cost and devastation of war, natural disasters, industrial changes, recessions, discrimination, pregnancy out of wedlock, immigrant status, gang presence and a host of other things.

  Laziness is also a motive for those who seek quick riches such as robbery, drug smuggling, scams, usurious interest rates and similar legal or illegal get-rich-quick schemes. Righteous capitalists understand that honest work not lazy covetousness is the way to true success. They do not engage in legal or illegal swindles. They also consider the poor who most often suffer not because of laziness but causes like those mentioned above, and they are extravagant in their giving.[71]

  Giving and Wealth Addiction

  A popular message implies that it is easy for a rich Christian to enter heaven. Jesus said just the opposite.[72] False teachings imply that wealth is always God's blessing and poverty his curse, but that ignores wealth gotten by dishonest means and poverty through no fault of the poor. Was Jesus a sinner because he died on the cross? Such thinking is illogical but popular.

  It has been said that it is hard for a wealthy person to enter heaven? Why is it such a battle? "The wealthy are generally held captive by their wealth."[73] Whether we are rich or poor we may be blessed or not. The blessings of heaven are independent of our financial status here on earth. The greatest blessings of all are spiritual. It is impossible for rich or poor to enter heaven, except for the greatest miracle of all time, divine grace: "where humanity is helpless, God can."[74]

  Who is the most popular Christian outside of the Bible? We may think of famous theologians or reformers but the most popular is Nicholas of Myra, who was loved by many in his time and those who read his story today. The fiction surrounding him has grown to the point that he is the second most important Christmas character after Jesus.

  Why is he so popular? He read the story where Jesus suggested that one rich young man sell everything giving the money to the poor.[75] Though he was very wealthy, Nicholas spent his life giving it away and touched the lives of thousands. He saved many from financial ruin, helped out in disasters, defended people in court from false charges, provided food during famines, saved children from slavery, travelers from murder and prayed and saved sailors from shipwreck. The real Saint Nicholas is loved because he made crooked roads straight and rough ways smooth.[76] Shall we?

  Wealth can become an addiction just like alcoholism. If a person cannot handle the responsibility, then perhaps giving it up altogether is the only viable alternative. Perhaps it is the final step on the road to perfection. After all Jesus’ words were that the rich young man only lacked one thing and what better legacy could there be than giving it all away.

  What would be our society’s greatest addictions? When we speak of addiction, we may think of alcohol or drugs, but those are not our world’s greatest addictions. Our economy relies upon creating addictions to sell products. Could it be that two of our greatest addictions are unhealthy foods and materialism?

  Advertising deceives us that material goods make an abundant life and politics deceives us that our salvation begins with a materialistic solution to our nation’s woes. We are constantly fed the lie that materialism and degenerate foods will create the abundant life. Yet, almost every wise sage in history has warned against greedy materialism because that is not life.[77] There is a way that we might have truly rich and satisfying lives, but most people will ignore it.[78] Crafting righteous capitalism, the only kind that produces a full life, begins in the sheepfold of a house of faith.

  Giving to Employees

  Who is your role model? Is it the Good Shepherd or a hired hand?[79] All church pastors read the words which challenge them about false leaders and say to themselves, “I hope that is not me.” Yet all leaders, managers, CEO’s, generals, politicians, all except the one, are mere hirelings. We must face the fact that we are being described here and seek to become real leaders. And what is real leadership? The cross tells us what real leadership is, self-sacrifice.

  Even Jesus’ disciples ran away during difficult times. Business owners often compare themselves by how big their companies are, how long they have been in business, how many dollars they have made or other such egotistical measures. But, success as a leader is not measured by such silly standards but by standing firm when the wolf attacks. A great corporate shepherd is one willing to die for his or her people.

  A great business leader is that person that is first of all a great shepherd of the company, willing to die for the employees. That means that the company CEO or the small business owner is the first to take a pay cut, the first to stand up for the jobs and the pay rates given to the employees, before the union can, before the first whimper of complaint from the line can be heard.

  Of course, that also must be balanced. Overly generous companies cannot survive competition. Greed also applies to unions that are sometimes willing destroy companies for a pay raise. They can kill the goose that lays the golden egg. However, before CEO’s complain about union wages, they must first look at what they take out of the company in salary and benefits. Is it is grossly gluttonous or just and fair?
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  Giving is the Job Description of the Rich

  Paul the Apostle had a word of advice for the rich. It is simple but profound. Don’t be proud or full of yourself.[80]

  That is a hard job when people are flattering you all day long. It is hard for Hollywood celebrities. It is hard for bosses surrounded by the fawning flattery of those dependent upon them for their pay checks. Saint Paul also said not to trust in riches. Riches can be here today, gone tomorrow. Wall Street can crash overnight. Real estate bubbles can burst leaving us with larger debts than property is worth.

  Fortunes can be lost in war as hostile armies destroy everything that has been built over a lifetime. Just ask anyone who lived in Europe during World War II.

  I once met a woman whose family had to just walk away from everything they owned in the German colonies of Eastern Europe. The family farm was lost forever. They marched west with nothing but the clothes on their backs and their daughter was born on the side of the road as they made their journey to safety in the west.

  Paul then charged the wealthy to be rich in good works, ever ready to distribute help and extravagantly generous.[81]

  If it is more blessed to give than to get[82] then surely the wealthy have the opportunity, indeed the responsibility to experience one of the greatest blessings that life has to offer, the opportunity to give so much to so many.