Unfortunately, free enterprise is one of those malleable terms which vary according to the user. For example, businessmen usually are referring to freedom from government intervention in the conduct of their businesses when they speak of free enterprise. Ordinary secular economists who speak of it are probably thinking of the smoothly working, self-righting system envisioned by 19th-century classical economists who built upon the foundation laid by Adam Smith in The Wealth of Nations. Socialist critics of the American economy, normally preferring the terms "capitalism" or "monopoly capitalism" to free enterprise, focus on the "horrors" which spring from the ownership of private property, such as alienation, exploitation, racial and sexual oppression, and inequitable distributions of income.
Other examples of the use of this term could be given, but there is one sense in which "free enterprise" has distinct theological implications, and it is here that Christians must exercise care. We know that the heart's desire of unregenerate man is to be free of the restrictions placed upon him by the existence of a sovereign Creator God. A popular modern manifestation of this is the libertarian ideology. Libertarians today openly espouse a philosophy of freedom from every restraint. Their guiding principle is that men should be free to do anything they wish as long as others are not harmed by their actions. This really boils down to complete lawlessness, since the determination of what constitutes "harm" varies from person to person.
The libertarian philosophy as it applies to economics is forcefully presented in a tract entitled The Incredible Bread Machine. "The Incredible Bread Machine," a film based on the book, is shown in free enterprise seminars and economics classes throughout this country.
A philosophy which begins with the autonomy of man as a fundamental principle is atheistic at bottom. Libertarians cannot consistently speak of moral standards which he could not impose on anyone else. The libertarian notion of free enterprise is thus freedom from every restraint in the economic sphere. This is in conflict with biblical principles which serve to define economic relationships. There are general principles such as man's stewardship of the creation and responsibility for acknowledging God's existence and rule. And there are numerous specific principles defining economic relationships of many kinds. For example, employers are to pay adequate wages (Deut. 25:4, Mal. 3:5), weights and measures are to be kept honest (Prov. 25:45), lenders must be reasonable about the collateral they require from borrowers (Ex. 22:26-27), and so on. It is clear that persons wishing to honor God come under a number of restraints not acknowledged by the unregenerate. Therefore, Christians cannot agree with "free enterprise" that refers to freedom from God-ordained moral and ethical restraints.
Perhaps the problem lies with the contemporary passion to escape from reality. We are daily exhorted to "buy one, get one free." "Freedom" is hawked in connection with everything from automobiles to yoga. "Liberation" is sought by organized interest groups of every conceivable persuasion. But for the Christian, the condition for personal freedom is defined in concrete terms. In a verse which is used out of context more often than not, Jesus said:
And ye shall know the truth, and the truth shall make you free (John 8:32).
Heretical cults love this verse and use it to lead into their version of the "truth." But Jesus was very specific about the truth to which He referred, because in this same context (John 8:36) and in other places He equated Himself with this "truth" that brings freedom. So, knowing Him is the key to freedom. Since it is also true that "he that loseth his life for my sake shall find it" (Matt. 10:39), genuine freedom is only to be found in being bondservants of Him who is "the way, the truth and the life" (John 14:6).
What about free enterprise as envisioned by non-libertarian businessmen, farmers, various kinds of economists, and ordinary citizens? Regardless of the meaning imputed to free enterprise by individuals or organized groups, we cannot accept explicit or implied suggestions of freedom from biblical standards. For example, while we agree with the socialist that the existence of racial and sexual oppression is a curse, we cannot agree with his humanistic assumption that ownership of private property is the root cause of the problem, since the protection of property rights is a dominant feature of the Mosaic Law. To abolish private property in order to rid ourselves of various kinds of oppression would be to use evil means in an attempt to achieve results, which is condemned in Scripture (see Romans 3:8). Perhaps a better example is the distinction which can be made between pure food and drug laws and legislation imposing general wage-price controls. The first is biblically consistent and would not harm legitimate businesses, while the second is inconsistent and harmful to businesses and consumers.
It is now possible to answer the question of whether free enterprise is biblical. Obviously, the answer is "It depends on what you mean by 'free enterprise'." We acknowledge and gratefully accept the paradoxical truth that economic enterprise is most truly "free" when it is conducted in accordance with the standards imposed in God's word. Economic exchange under Scripture is truly free enterprise; economic exchange in accordance with the logic of fallen man is not.
Biblical Economics Today Vol. 1, No, 1 (February/March, 1978)
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