Capitalism is an economic system which has defined the growth and freedom for not only America but countries around the world. Several other systems have risen to challenge its achievement. Most have failed and capitalism continues to transform countries around the globe. A portion of the world’s population praises its success but another large portion laments its limitations. Many people from the rising generation believe it fails to support the poor and needy and only enriches a few. For the Church of Jesus Christ of Latter-day Saints, caring for the poor and needy is a core value that was taught by Jesus Christ. Could it be capitalism is a failed system and that if we’re put on trail the Church would do away with it? Is the system or individuals to blame? Would the Church support capitalism as the best economic system for our day? Latter-day prophets and apostles have addressed these issues and enlightened our understanding on the subject.
First, let’s define capitalism as free enterprise, free markets, and the right to ownership with minimal government involvement. Alternately, communism is defined as Marxist communism where property is publicly owned and each person works and is paid according to their abilities and needs as determined by the state. Both at each ends of the spectrum in regards to individual or public choice and ownership.
In scriptural history when people divided into ranks and classes according to wealth and learning it would often raise their hearts in pride and hinder the growth of the Church. In times when the Church was strong it references great unity, equality, and harmony among the members. The Church in it’s early days attempted alternate economic systems such as United Order, a Christian communalism, modeled after the New Testament church which had “all things in common.” Property was retained, but all things gained in excess of their needs was voluntarily given back to the Church for distribution. These early attempts failed but less intensive cooperative programs implemented in Utah were more successful.
It is considered that capitalism negatively affects the Church by causing economic inequality and disparity, originating the belief that such a system could not exist when members are unified. Some commentators believe these people must have had some kind of Christian communism. President Brigham Young had a different perspective as to what the scriptural references of people having “all things in common” and “no poor among them” signified and when practiced in United Order.
“How could you ever get a people equal with regard to their possessions? They never can be, no more than they can be in the appearance of their faces. We are equal in the interest of eternal things, in our God, not aside from him. Who owns all the elements with which we are commanded and permitted to operate? The Lord, and we are stewards over them. Let this people equalize their means, and it would be one of the greatest injuries that could be done to them. This is not what the Lord meant when He said: ‘Be ye of one heart and of one mind.’ He meant that we must be one in observing His word and in carrying out His council, and not to divide our worldly substance so that a temporary equality might be made among the rich and the poor” (1).
He also went on to describe a situation where eager saints were selling their possessions and luxuries to help the poor.
“I told them that would not help [the poor]. My advice was for them to keep their jewelry and valuables, and to set the poor to work – setting out orchards, splitting rails, digging ditches, making fences, or anything useful, and so enable them to buy meal and flour and the necessaries of life” (1).
His philosophy was to make it possible for people to earn their own living, not be given it through a means of distribution by charity, socialism, or communism. He was against any compelled equality or inequality. Ownership should be determined by individual wisdom, experience, and performance. After receiving gain an individual should put his property and possessions to good use for the progress of others and the gospel.
This philosophy for a proper economic system is in agreement with free enterprise capitalism as well as with United Order. Capitalism gives every individual the ability and freedom to exercise their talents and skills for their gain, which is according to President Brigham Young, a fulfillment of a divine responsibility and stewardship. Though, some make their gain at the expense others. Elder Stephen L. Richards commented, “I admit that there are instances, altogether too many, where this comes about. But this is not the true concept of capitalism. The capitalistic system in its inner essence, is little, if anything, more than a man’s free right to work, to choose his work, and enjoy the rewards of his efforts” (10).
Capitalism’s core principle is individual choice and ownership, it does not enforce moral ideals. Individuals who work the capitalistic method are the ones who incorporate values and morals into the process. Less sensitive individuals often ill treat their workers and may show concern for their well being only if that concern will contribute to bottom line. Good individuals can make the system humane and fruitful. Without them, capitalism can be very cruel. Elder Richards further explains this situation:
“It is not the capitalistic system itself that makes some men rich and some men poor. The men themselves do that, again with some exceptions. The system merely offers the opportunities. There are, of course, abuses within it, as there must always be when humanity is involved. It does not guarantee that all men will be rich, and it is worthy of note that all systems which do, usually succeed only in making all poor. To eradicate the abuses within the system is almost as difficult as to reform humanity. But who would advocate killing humanity because they are slow to reform?” (10).
In his general conference talk “The Gospel of Work” Elder Stephen L. Richards outlines the essentials of work behavior and the benefits of improved performance. Most of all his counsels and praises of good work apply to the capitalistic system, of which he shows full support. In the following quote he gives a visual comparison of those who fail to perform well by utilizing their resources:
“I often note that on one side of a fence is an area of stunted crop growth, weeds, barren patches, and unproductive desolation, while on the other side of the fence with nothing but a dimension line between, with the same potential soil, equal water rights, the same air, the same sun, the same climate, lies a field—a field beautiful beyond description with the abundant productivity which nature yields to the skilled husbandman. I see fat cattle and lean, good homes and poor ones. This doctrine of work lies at the very foundation of the capitalistic system. In my estimation, it is a most precious thing, and it is indispensable to the liberty and freedom of which America boasts. I for one do not want to lose it” (10).
As outlined by Elder Richards people are given the agency to do what they wish with their means. They can get to work and see the fruits of their efforts or put in the minimal exertion that will let them just get by. Capitalism is structured with the goal that each person will be rewarded for their diligence. From this application it appears to perform in line with eternal principles. There may be some exceptions or abuses as described by Elder Richards but the system at heart is to provide everyone a fair and equal opportunity to gain their earned results.
Some members have rejected the idea of capitalism claiming communism to be most like United Order. In response, the Church vigorously opposed the rise of communism. In a first presidency statement in 1936 it declared that:
“communism is treasonable to our free institutions [and] being thus hostile to loyal American citizenship and incompatible with true Church membership…But Communism is not a political party nor a political plan under the Constitution; it is a system of government that is the opposite of our Constitutional government, and it would be necessary to destroy our government before Communism could be set up in the United States. The safety of our divinely inspired Constitutional government and the welfare of our Church imperatively demand that Communism shall have no place in America” (4).
In addition, the church issued the following additional statement in 1942:
“Communism and all other similar isms bear no relationship whatever to the United Order. They are merely the clumsy counterfeits which Satan always devises of the Gospel plan … The United Order leaves every man free to choose his own religion as his conscience directs. Communism destroys man’s God-given free agency; the United Order glorifies it. Latter-day Saints cannot be true to their faith and lend aid, encouragement, or sympathy to any of these false philosophies” (11).
Two ends exist in the economic spectrum. The “left” includes communistic or socialistic systems and the “right” includes free-enterprise or capitalistic systems. As demonstrated by the First Presidency the Church passionately rejects “leftist” economic ideals. Therefore, gravitating the Church’s stance strongly to “right” or capitalistic systems. President David O. McKay backs this position by making the following comment on what freedoms are endangered by communism:
“Its avowed purpose is to destroy belief in God and free enterprise. . . . The fostering of full economic freedom lies at the base of our liberties. Only in perpetuating economic freedom can our social, political, and religious liberties be preserved” (8).
Any economic system must support our current Constitution as detailed by the first presidency. Our founding fathers created a Constitutional government that would support capitalism. If we support our governmental structure and guaranteed freedoms than we should be equally willing to embrace the resulting economic structure. As members we should recognize that the First Presidency itself has made an official declaration against a potent economic system that attempted to overthrow the liberties enjoyed under capitalism.
President Ezra Taft Benson also reemphasized the warning against communism. He alerted that communism is Satan’s tool to implement the same evil plan he had in the pre-existence which plots to eliminate man’s agency. It entices equality through a compulsory system. It is not to be confused nor compared to the Church’s doctrine of united order. Capitalism is the most comparable to united order and is considered to be a sort of religiously oriented capitalism (7). According to Church leaders the influence and practice of free enterprise is encouraged and even considered to be a fulfillment of priesthood responsibilities. President Benson counseled that “each priesthood holder should use his influence in the community to resist the erosion…in our political and economic life” and that “he should join responsible local groups interested in promoting freedom and free competitive enterprise” (2). According to President Benson actively encouraging the influence of free enterprise will benefit our communities and our standing as church members.
Not only have modern day prophets demonstrated support for capitalism but have praised its achievements. President Benson believes strongly that it is the reason for our current success and prosperity:
“Under our system there has been released great creative capacity, because we are free, unrestricted. We have achieved a standard of living unequalled anywhere in the world…because we have had a system which is superior – a system which was wisely provided by the Founding Fathers. We must protect and safeguard that system – the free enterprise system” (3).
The blessings we enjoy of comfortable lives filled with opportunity and potential is due largely to our economic system. Is it any wonder why the Church was established in this nation? It can flourish under capitalism and bless the lives of many others. President David O. McKay further shows his gratitude for this blessing: “I am thankful for this country which has given more persons opportunity to raise themselves under an individualistic, capitalistic, free enterprise system from menial to commanding positions than any other nation in the world, past or present” (3).
Lastly, another test of Church support is evident in its application to divine principles. The Savor commanded that we care for the poor and love one another. Even with its weaknesses, our free enterprise system has accomplished in terms of human welfare that which no other economic or social system has even approached (9). Applying to the principle of neighbor-love it aspires to allow every man to obtain a better means of living which indirectly and directly helps others in the process. In comparison J. Reuben Clark said “communism has always meant the reduction of all men near the lowest level, instead of the raising of all men to near the highest level” (9). Allowing men his divine right to liberty and choice, accepting the consequences or benefits of that action, is guaranteed under this system. Also, John Taylor mentioned the divine right to ownership. He said, “one great principle which has existed among men from the beginning of creation until now, is a desire, planted within them by the Almighty, to possess property – lands, houses, farms, etc….As I said before, this principle is correct” (9).
From better understanding the principles of agency and guidance provided modern day prophets it is encouraged to view capitalism as an effective and acceptable system which will provide people with freedom and opportunity. Its practices are most applicable and preparatory to United Order. The presidents and apostles of the Church in these latter-days fully support and encourage the correct and beneficial use of capitalism. As quoted from leaders of the church this system has and will continue to be the best economic system for this day above all other practiced structures. Though people may abuse it, there are no reasonable grounds for its removal. Just because one chooses badly doesn’t mean everyone’s right to choose must be denied. We voted in the pre-mortal life to have agency and liberty, capitalism retains those freedoms.
WORKS CITED
(1) Huff, Kent W. Brigham Young’s United Order. Springville: Bonneville Books, 1986.
(2) “Benson, Elder Ezra Taft,” Conference Report, October 1961, 69-75 http://gospelink.com/library/doc?book_doc_id=222907
(3) Cannon, Donald Q. Latter-day Prophets and the United States Constitution. Salt Lake City: Bookcraft, 1991.
(4) Clark, J. Reuben Jr. & Grant, Heber J. & McKay, David O, The First Presidency. “Leaders Cite Threat (5) To Home, Nation And Church.” Deseret Evening News 3 July 1936
(6) Hancock, Ralph C. Just and Holy Principles – Ladder-day Saint Readings on America and the Constitution. United States of America: Simon & Schuster Custom Publishing, 1998
(7) Horowitz, Jerome. The Elders of Israel and the Constitution. Salt Lake City: Parliament Publishers, 1970.
(8) McKay, David O. Gospel Ideals. Salt Lake City: The Deseret News Press, 1953.
(9) Newquist, Jerreld L. Prophets, Principles and National Survival. Salt Lake City: Publishers Press, 1967.
(10) Richards, Stephen L. Where is Wisdom? Logan : Utah State Agricultural College, 1948. http://gospelink.com/library/doc?doc_id=213385
(11) Clark, J. Reuben, “Message of the First Presidency,” 112th Annual General Conference, 6 April 1942.
