A lot of public debate about economics deals in caricature, particularly of capitalism. Critics of markets tend to argue that it is fundamentally unjust and based primarily on greed.
Some beneficiaries of capitalism tend to sheepishly agree with the injustice of the system but either shrug their shoulders because they feel they can’t change it or support it anyway because they like the prosperity that comes through the market system.
Brent Waters takes a significantly different approach. He writes,
This is, in fact, why I am pro-markets and anti-socialism. No economic system is perfect because they all involve imperfect, sinful humans. The free market economic system will not prevent all human suffering; however, it has proven to be a better tool to alleviating human suffering than various attempts at socialism.
Waters argues his thesis in two parts. The first five chapters of the volume outline the necessity of exchange and the place of Christians to argue for market systems. His first chapter summaries some of the historical arguments about wealth and poverty. Chapter Two defines what Waters means by markets and argues for the good in competition and cooperation that are necessary for a market economic system. In the third chapter, the author addresses the topic of creative destruction, the relationship of markets to governance, and an argument that markets represent the best means for improving human flourishing on a broad scale. Chapter Four makes a case for the good of affluence as a pathway to flourishing. The fifth chapter, which closes out the first part of the book, makes the case that affluence is the best means of eradicating poverty on a wide scale.
Part Two of Just Capitalism builds on the general affirmation of free markets, as offered in the first part, but critiques the failures in most current forms of capitalism. The upshot of the last five chapters is that free markets without virtuous people engaged in exchange are no less evil than socialism. In Chapter Six, Waters argues that exchange is necessary for human flourishing, but it must be oriented toward that end rather than simply focusing on increasing one’s economic status. The seventh chapter shows that for markets to achieve their purpose, they must function within the context of a civil society with the purpose of sharing the goods of creation. Chapter Eight offers some provisional thoughts on possible relationships between a free, civil society that enables exchange with political orderings that prevent abuse. The ninth chapter fleshes out the concepts of freedom and justice, making an implicit case about the differences between positive and negative rights and their relationship with justice. Chapter Ten functions as a conclusion, where Waters draws together the threads of his earlier arguments to further emphasize the good that global capitalism can do to alleviate poverty.
Analysis and Conclusion
Waters is clearly not arguing that every instance of capitalism is good. Neither is he arguing that the present instantiation of global capitalism has no flaws. Many contemporary critics of global capitalism assume that the abuses that arise within existing markets are necessarily a feature and not a bug of the system. On the other hand, some proponents for markets insufficiently critique the sin that is evidenced in current markets and often make a similar assumption that some of the worst aspects of global capitalism are a necessary evil.
This book challenges assumptions on both sides. Economic systems are not inherently unjust or just. However, Waters carefully argues that free markets have a higher probability in resulting in just outcomes due to the self-corrective nature of the market system. At the same time, simply accepting capitalism without working to morally form the members of the market will lead to exclusion of potential market contributors due to social injustices. Waters’ book explains that markets can be good, but we have to work at keeping them moral.
This is the best moral case for the free market economic system that I have seen. There are points where one can disagree with Waters, but he realistically examines the benefits and risks of capitalism, showing that in the balance global capitalism is the best means of alleviating poverty.
Note: I received a gratis copy of this volume from the publisher with no expectation of a positive review. The above link is an affiliate link.