| What Marxism Shares with Christianity |
| Wednesday, 10 March 2010 17:50 | |
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Karl Marx was, among other things, often a perceptive observer of capitalism. He once admiringly referred to it as "a machine for destroying limits." By this he meant that our economic system had ways of innovating around what were thought to be barriers to increased trade or production or even longevity or better health. What I want to suggest is that our economic system is also a machine for destroying our moral limits. We read about the abuses of the environment or of workers from the left or the glorification of a nihilistic culture from the right. Are these aberrations or part of the systemic nature of 21st Century capitalism?
Consider that the archetypal business form of our time is the corporation: a legal "person" created for the purpose of doing business. As Joel Bakan points out in The Corporation, this "person" is created for the sole purpose of enriching its shareholders. Now, for those of us with pension plans invested in these "persons" this is actually quite a nice thing. Here's an entity with ample legal protection whose only task is to make more money for your retirement and mine. Of course the inverse of this is that the corporation does not have the other concerns that you or I or other actual persons might have - again it's sole concern is to make money. What would you or I call a person who was pathologically consumed with kind of drive? Bakan goes with the clinical definition, "psychopath." I'll refer you to Bakan if you want to quibble with that definition, but even if you aren't prepared to throw DSM-IV at the corporation, I think we could agree on something like "jerk". Now this particular jerk's motto is not so much "if it feels good, do it," but rather, "if it makes money, do it.
As Christians we seem fairly comfortable with a system that pools our impulse to greed and uses it to exploit others (and often ourselves). It becomes disconnected from us, we do not think of wealth accumulation as "greed" but as "sound financial planning" or "just business." Here's a thought experiment: what jobs would your pastor ask you to resign from because they are considered immoral? (Or, if you are a pastor reading this, what jobs would you challenge your congregants to resign from?) I can picture only an obstetrician-gynecologist who performed abortions or a sex-trade worker being challenged about their career choices. What we do at work otherwise seems to be a zone around which the church tends not to penetrate too deeply.
Now before you start raising the objection that calling our economic model psychopathic is some kind of leftist commie socialist critique, let me point out that the other side agrees. I'll refer you to no less than Milton Friedman who wrote thatthe only social responsibility of business is to increase profits. It is not enough, in Friedman's argument that corporations are singleminded about profits, it is rather that they ought to be singleminded about profits. In other words a corporation shouldbe a psychopath. While Marxism is explicit in its materialist atheism, the implicit message of capitalism - that increasing profits is the highest good - may well be implicitly atheist. Certainly notable atheist pro-capitalist Ayn Rand saw capitalism as more compatible with enlightenment rationalism than with religion or "mysticism" as she called it.
This existing order has, in our society, generally invoked two sets of intellectual responses - a left-wing one and a right-wing one - that Slavoj Žižek characterizes thusly:
“In short, the right-wing intellectual is a knave, a conformist who refers to the mere existence of the given order as an argument for it, and mocks the Left on account of its ‘utopian’ plans, which necessarily lead to catastrophe; while the left-wing intellectual is a fool, a court jester who publicly displays the lie of the existing order, but in a way which suspends the performative efficiency of his speech.” In other words the response on the right is to throw up one's hands and accept that this is the way things are while the response on the left is to point out what is wrong with the system while simultaneously participating in it. Lots of corporate publishing houses and film studios have done very well by the works of left-wing critics like Michael Moore or Naomi Klein or the aforementioned Joel Bakan.
The church has meanwhile been more likely in North America to join the camp of those that would throw up their hands and accept that this is the way it is. The other common response among some Christians has been the Wendell Berry sort of "back to the land" idea that gets pilloried here in a way that I think describes the impossibility of going backwards. I'll go along with Marx instead and agree that a lot of the limits demolished by capitalism have actually improved our lives. It has after all worked better for more people than either slavery or feudalism. But is capitalism then the final, perfected system? Are we accepting that we should pool our resources into legal fictions that act as psychopaths to enrich us? Here I would like to share something else that Žižek said about Marxism: When describing in what meaningful way he could still call himself a Marxist, Žižek said it was only in the sense that he believed that there was another system coming after capitalism. In other words, we are not at the end of history as Fukuyama suggested. Is this not also the belief of the church, that another age is coming? Is this not our great hope - however we might differ in the specifics from Žižek - that something is coming after this?
Whatever kingdom economics will look like, I imagine it will be quite different from what we have now. The Marxists are right, there is still another system coming.
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Comments
Rey, is that supposed to be constructive in some way?
Irrationality and non-sensicalness?
I have posted a reply to this post over at my blog. (It was too long for the comment section.)
http://politicsofthecrossresurrected.blogspot.com/2010/03/are-profit-making-corporations-sinners.html
What is a menial, uncreative job? Cleaning toilets? I pay my housekeeper over $20 an hour to clean my toilets. Is that exploitation? Is it unfair? Hardly. She comes back week after week. And at the end of each day, I thank her.
Don’t forget that we live in a fallen world (that was my first point to Dan). People won’t for you unless you pay them, and if you don’t make a profit then why would you bother investing and creating a business in the first place? If nobody creates businesses then nobody will hire anyone and, then, we will all have nothing to do except to go back all of us to subsistence farming and hunting and gathering, and we will return to dirt poor conditions with high infant mortality and low life expectancy.
You say that uninhibited growth is unhealthy. I agree. But the economy has to grow according to socialism, because there is an ever aging population to be supported by a shrinking number of workers. But may I suggest that economic growth is mostly necessary to feed this beast of growing government and deficits. That’s why Jean Chretien said to me when I immigrated to Canada, “Come and work and pay taxes!” Such view point is brazenly honest, saying that the government brings an ever increasing number of immigrants into Canada to increase the tax base.
Finally, I’d like to thank the business men and women in Canada for providing lots of Canadians with great jobs, often with benefits, and making Canada one of the best countries in the world to live in. I, for one, do not begrudge your profits. Certainly, our hockey teams (men’s and women’s) are the best!
That helped a little but I still think this view is problematic. For example, you posit that a corporation "is not accountable to God but to its creators." This is fundamentally flawed. There is no sphere of life over which God does not have authority. Therefore, there is no sphere of life that is not accountable to God. Would you apply this to the for-profit business world in general? Would suggest that the corporate world is not "accountable to God"? Whether or not a corporation is an "artificial person" with no soul is besides the point as far as I'm concerned. Here, I prefer what Bob Goudzwaard says about the business enterprise. Namely, that it is a community. It's a community made up of people that make decisions and, therefore, is entirely accountable to God.
Also, I'm not concerned with the differentiation you point out between corporations and charities. I'm more concerned with the actual praxis of corporations and our understanding of the role they are to play in society. To suggest that corporations exist primarily to make profit is, I would suggest, reflective more of the fallen nature of our world than the beauty of the reign of God. Granted, I'm not an economist or business type but if this is the case (that corporations exist primarily to make money for their "creators") then we begin to tread in very dangerous waters. We don't have to look far to see the damaging effect of this view on people and the earth.
To continually seek after profit is to be in a constant state of minimizing dis-utilities. The way this fleshes itself out is entirely problematic in terms of humanities call to be stewards because then the earth and labour (people) become dis-utilities. Of course, from a profit standpoint this is problematic because the earth has limited resources and labour is an expense. In an effort to maximize profit then, corporations pillage the earth and often treat workers unfairly (or give them menial, uncreative jobs).
You seem to equate stewardship with making more money. This, however, is not reflective of the Judeo-Christian understanding of stewardship.
Goudzwaard, who I referred to above, suggests that our ideals (idols?!) of uninhibited progress shape our economy. For some reason we seem to think that the best economy is an ever-growing economy. Perhaps this is unhealthy and again, not reflective of the call to be stewards of the earth. Let us look to a tree as a metaphor. A tree does not try and grow all the way up to the heavens! There is something within the tree (creational?) that limits its growth. The tree knows that its purpose is not to grow up as much as it can. Rather, the tree understands that its purpose is to *flourish* and bear fruit. Perhaps this is a helpful way of understanding our economy and the corporation. What if a good economy is not one that is ever expanding and ever growing but one that flourishes and bears fruit? You don't have to look far to see that this isn't exactly the state of our current world economy.
To suggest then that stewardship applies to people and not to corporations is, as far as I'm concerned, nonsensical. For corporations are communities *of* people that make decisions that effect life for many folks. I do, however, appreciate your example of milk money being used for charity as a breach of trust. It's sort of like if the creator of all things made us and sent us into the world to be stewards of creation and instead we became obsessed with maximizing profits and in so doing abused the earth and one another. A breach of trust indeed.
I think your question is excellent and I'll try to answer it faithfully.
A corporation is an “artificial person”. It can lawfully conduct business and own property. It does these things according to the purposes of its creators, the stockholders. But a corporation does not have a soul. It is not going to go to heaven or hell and therefore is not accountable to God but to its creators. If the creators of the corporation created it for the purpose of profit, then the managers of the corporation must pursue that goal. If they created it to do charitable work, it must do charitable work or be in violation of its created purpose.
As a Christian I invest in stocks with the understanding that the corporations were created to make money for the stockholders, not to do charitable work. When I give to a charitable organization, I do so with the understanding that the charitable organization will do charitable work and not try to make a profit, because that would be a breach of trust. Because I believe that I must be faithful steward over the time and the resources that God has given me, I try to make money through my investments and my work; and I give to charitable work because God calls us to be generous stewards.
Friedman’s point is a priori—he didn’t decide this, he’s just trying to remind people of why for-profit corporations exist. So the managers of the for-profit corporation must seek to fulfill its lucrative purpose or be in breach trust. Let’s say I give you money to buy me milk and you put it in the church offering—you’ve committed a breach of trust with my money and I will expect you to pay me back. If I give you money to put in the offering and you use it create a business and make money for yourself, then you are in breach of trust (e.g., if a pastor takes money from the church offering to start a private business on the side).
So the stewardship principle holds. It applies to people who were created by God. But it doesn’t apply to the corporation. Friedman basically makes all these points in the article Dan cited. I hope that helps.
"Friedman argument is based upon the a priori that corporations exist to make money for the stockholders, unless they were created to do non-profit work."
Should we just take Friedman at his word? Who's to say that Friedman has the authority to determine what a business enterprise ought to look like or be about. I think perhaps a more faithful (to the scriptures) understanding of the business enterprise is not "to make money for the stockholders" as you seem to suggest. Rather, the primary responsibility of the business enterprise is to be stewards. This is a fundamentally different understanding of the corporation but I think it's a hell of a lot more faithful to the scriptures than our current understanding and praxis.
"It is not enough, in Friedman's argument that corporations are singleminded about profits, it is rather that they ought to be singleminded about profits. In other words a corporation shouldbe a psychopath. "
Friedman argument is based upon the a priori that corporations exist to make money for the stockholders, unless they were created to do non-profit work. Making money is their goal and in good faith they must work towards that end. They are not created to sooth the social conscious of the CEO, to become his pet project for improving the world, or to become the efficient puppets of the state for implementing social policy; but to make a profit for the investors within the legal and ethical rules. Friedman was saying please don't confuse business with charity. I agree. If the principals turn a corporation into an instrument of socialism, then they would be acting in bad faith towards the investors and would be as guilty as Bernie Madoff. As an investor, I invest in corporations in the hope of getting a profit, not to lose money nor to save the world. If I want to help the world, then I give charitable gifts from the money I earn from work or investments. I would be rightly angered if the principals of one of the companies I had invested in decided that it was now not going to aim towards profits. That is not why I give them my investment dollars in the first place, and they better do what they promised to do.
It is not psychopathic to suggest that for-profit corporations exist for making profits. What is psychopathic is thinking that one could find insight from a man whose ideas have led to poverty and mass murder every time they've been tried. It is a bad tree. Don't expect to get good fruit from it.
Finally, what other jobs do you think pastors should recommend that people resign from? Please be specific.
Great blog.