LCN Article
Socialism, Capitalism, and the Kingdom of God

September / October 2021

Wallace G. Smith

For those in God’s Church, it can be all too easy to take a side in the ideological conflicts of those who want to rule today’s world. We watch the news, listen to the debates, read the thoughts of commentators and pundits, and combine these with the philosophies we grew up with, the ideas we learned in school, and our natural sense of patriotism—and the temptation to involve ourselves can become very intense.

But, as the Fall Holy Days remind us, the systems of this world, the philosophies of men, and the ideologies of the world’s movements are all passing away. They will be replaced by the Kingdom of God, where Jesus Christ and His glorified saints will rule this world by implementing God’s laws, principles, and ways. The fallacies of the world’s passionately held beliefs and dogmas will be exposed, and ideals that seemed so wise in man’s eyes will be seen for what they are: distractions and counterfeits.

As this Holy Day season turns our minds to Christ’s return, the removal of Satan, and the establishment of Christ’s millennial rule, let’s dive into one of today’s most contentious arguments—the debate between socialism and capitalism. Let’s take time to see these approaches for what they are, examine them in the light of history and God’s word, and remind ourselves that the Eternal calls us not to defend any human philosophy, but to advance His ideas, laws, and approach—the approach He will implement under the Messiah’s rulership.

A Look at Socialism

“Socialism” used to be associated in the United States with failed regimes and dictatorships. Yet, in the U.S. presidential elections of 2016 and 2020, Senator Bernie Sanders was for a time considered a front-runner, despite calling himself a “democratic socialist.” Clearly, times have changed.

But facts don’t change, so let’s take an unbiased look: What is socialism? While even socialists themselves disagree on many details, socialism is essentially an economic and political approach to structuring society that advocates public ownership of a country’s means of production and public administration of the distribution of goods. In this approach, the vehicle for determining public ownership and administration is usually the state or government.

A phrase popularized by communist philosopher Karl Marx encapsulates the principle driving many socialists, although it did not originate with him: From each according to his ability, and to each according to his need. Such sentiment reminds many of the attitude of God’s Church in its earliest days: “Now all who believed were together, and had all things in common, and sold their possessions and goods, and divided them among all, as anyone had need” (Acts 2:44–45).

In Marx’s view, capitalist ownership of the means of production is inherently oppressive, and human “progress” moves toward a state of communism—in which no one owns anything at all and there are no classes of man, no need for money, and no need even for structures of government. Marxism views today’s socialist nations as very early experimenters on the road toward pure communism—and, indeed, the historical slide from socialism to Marx and communism only adds to the unease of those concerned about a nation’s adopting any socialist policies, economic or otherwise.

Some believe the New Testament Church was socialist or communist—but that is a gross misunderstanding of verses taken out of context. Various passages make plain that early believers did retain private property and that their sharing was totally voluntary, motivated by temporary circumstances (e.g., the fact that most new converts had only intended to be in Jerusalem for the Pentecost season, without the means to stay for a longer period than planned). Yet it is easy to see that the apparent outward concern and focus of socialism might be appealing to those who feel that it is a less selfish, more compassionate approach to economics.

Evidence from History

But while theory may sound good when described by an economics professor, what results does it produce in real life? When we look at the history of nations that have adopted large-scale socialism as their economic model, are the lives of their people better for it? In fact, one of the most powerful objections to socialism is the history of nations associated with it. Nations such as Venezuela, Cuba, Cambodia, and the former Soviet Union each sought to fully embrace socialism, and the tragedies that unfolded among their peoples—sometimes slowly, other times swiftly and horrifically—stand as warning signs for all who would move their nations in those directions.

As they first begin, socialist movements are often lauded by public intellectuals and academics as introducing a “better” system. Then, as tales of starvation, deprivation, and dictatorial abuses begin to mount, these are ignored or dismissed as exaggerations by those same intellectuals. (See Dr. Douglas Winnail’s July 2021 Tomorrow’s World article, “What’s Behind the War on History?,” for more insight.) Eventually, the evidence of suffering, horror, and economic collapse grows too vast to ignore, and the narrative switches to how such states failed to really implement socialism or how the socialist policies would have worked if the government officials had not been corrupt.

That is one unavoidable characteristic of socialism as an economic system: Since it places such vast powers in the hands of “the people” collectively, which usually—of necessity—means the hands of state and government officials, it is dangerously vulnerable to governmental corruption. King David warned in Psalm 146:3, “Do not put your trust in princes,” and socialism concentrates vast power in the hands of a nation’s “princes.”

Aside from leadership, what of the individuals themselves, producing the goods of the society? There, human nature rears its selfish head, as well. Socialism takes the results of a society’s labor and distributes not according to individuals’ work, skill, and talent, but according to perceived needs. Thus, many individuals must work harder than they normally would to satisfy their own needs, since they must also provide for the needs of individuals they may never even meet.

This is quite contrary to human nature, and the results are predictable. For instance, in Plymouth—one of the Americas’ first European colonies—a form of communal work and ownership was practiced at first. William Bradford, the colony’s first governor, wrote that the initial attempt to build the colony by removing private property and establish common, communal ownership “was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. For the young men, that were most able and fit for labour and service, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense.” Bradford later notes that the young men were not alone—none were motivated to work for others as passionately as they would for themselves and their own families. It was not until the communal arrangement was abandoned in favor of private ownership that the colony began to succeed.

A Look at Capitalism

So, let us briefly examine the system many see as the very opposite of socialism. Capitalism is an approach to economics in which the means of production and capital goods produced are privately owned, and the distribution of those goods is determined by competition in a free market. In unrestricted capitalism, individuals are free to pursue their own interests and to own private property, without regard to supposed social needs. People are free to decide how best to use the resources they own to create products or services for which others may be willing to trade goods or give money. The profits of their efforts can be passed to their heirs, with no imposed obligation toward neighbor.

Eighteenth-century Scottish philosopher Adam Smith—whom many consider the “father of capitalism”—observed, “It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest.” That is, The butcher provides you meat not out of his concern for your well-being, but out of his self-interest, seeking to benefit himself and his family by providing you that service. Smith noted, “By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.” That is, Allow every individual to freely work for his own self-interest, and the indirect result will be even better for society as a whole than if the same individuals had been purposefully trying to benefit society directly.

Competition is key in capitalism. Those who provide goods compete to outperform others who provide similar goods—by making prices lower, products better, or both. As they do, they attract more customers who benefit from lower prices or better products, and competitors either learn to do better themselves or move on to a more profitable market for them, such as by developing new products or services to satisfy a currently unmet need.

We should note that God’s blessings on Israel—specifically, those on Manasseh (Genesis 48)—make it difficult to assess just now much of America’s success is connected to its politics and economics, and how much is God’s favor despite those factors. The U.S. is great not because of the wisdom of its “Founding Fathers” or policymakers, but due to the blessings bestowed on Abraham’s descendants! Yet no one can deny that capitalism has greatly increased the standard of living of many around the world.

Mixed Results

However, the fruit of capitalism is not all good. Here, let me offer full disclosure: As an American, I appreciate all that is available to me in my country, and I strive not to take it for granted. I sit here in a coffee shop on a Sunday afternoon working on this article on my laptop, keeping an eye on my cellphone for an expected text from my wife, and listening to some nice “work music” on my earphones; capitalism has provided many conveniences and pleasures for which I am grateful.

But just as socialism promises one outcome yet often delivers another, so too does capitalism. What theoretically should be a self-regulating economic system—in which goods and services are competitively priced for the betterment of everyone involved—often becomes a monopolistic system, or even turns into what is sometimes called “crony capitalism” in which powerful social or political forces strive to retain economic power for themselves instead of allowing a truly free market.

And life is not easy for some in a capitalist-leaning environment. Capitalism depends on competition and the unleashing of self-interest. Of course, friendly and fair competition, when commenced for fun or pleasure, is enjoyable. And self-interest is not completely the same as selfishness—after all, God promised “a land flowing with milk and honey” to ancient Israel as motivation, and Paul notes that “no one ever hated his own flesh, but nourishes and cherishes it” (Ephesians 5:29).

But while self-interest and selfishness are not identical, it is an easy slide from one to the other. And making competition a fundamental element by which livelihoods are sustained and wealth is accrued turns human civilization into something like that of the animals, where nature “red in tooth and claw” rules the day. For instance, how many of the most popular products of capitalism are crafted in “sweat shops” under horrific conditions? Do we want to know? Certainly, a producer can seek a more ethical—and more expensive—approach to producing his goods, but that doesn’t mean his competitor will. And when the economy is fundamentally driven by competition, winning becomes everything.

Beyond economic concerns, where does capitalism take a culture? When we are living in a world ruled by “the lust of the flesh, the lust of the eyes, and the pride of life” (1 John 2:16), it should not be a surprise to see cultures that embrace capitalism growing corrupted and debased. And in capitalism’s reliance on self-interest, students of the Bible should see reflected the days of the judges of Israel, when “everyone did what was right in his own eyes” (Judges 21:25). Is that brutal, every-man-for-himself world the world we desire?

And those who fear allowing politicians too much control over their lives should consider the potential impact of allowing corporate CEOs to have such control. We are beginning to see this kind of influence, as in the “deplatforming” of individuals and organizations from social media sites. “That’s because of the influence of politicians!” cries the pure-capitalist. Yet what does the pure-socialist decry concerning faulty politics? “That’s because of the influence of corporate money!” Do you see a theme emerging?

Boundaries and Limits

We certainly see many elements of God’s way reflected in the principles of capitalism. “You shall not steal” (Exodus 20:15) is rooted in the reality of personal, private property, and the commandment against coveting includes not coveting “anything that is your neighbor’s” (v. 17). Private property passed from parents to children in God’s economy (e.g., Deuteronomy 21:15–17; Proverbs 13:22; Proverbs 19:14)—quite the opposite of the socialist ideal. Private possessions are described prophetically as existing in the future Millennium, as well, during which we are told that each man will sit under his vine and his fig tree (Micah 4:4).

These private possessions are not gifts from a state government, distributed based on forced confiscation and centrally assessed needs. Rather, so long as they are wielded in a godly fashion, the Eternal honors individual industriousness and skills (e.g., Proverbs 10:4; 13:4; 14:23) as tools for building wealth and gaining property. The Creator not only praises one’s willingness to work and earn, but also condemns being unwilling to work when one is able to do so, declaring through Paul, “For even when we were with you, we commanded you this: If anyone will not work, neither shall he eat” (2 Thessalonians 3:10). To those who “will not work” the Apostle says that “we command and exhort through our Lord Jesus Christ that they work in quietness and eat their own bread” (v. 12).

Yet the sovereign God also establishes boundaries to such ambitions and self-interests, enforces limits to the accumulation of wealth and property, and centralizes authority over capital and the means of production to a degree that pure capitalism would not abide. Once Jesus Christ is enthroned and His servants glorified alongside Him, the “State” will be the Kingdom of God and its Omnipotent Ruler, Jesus Christ, and it will impose controls over the economy that will be enforced with divine power for the good of all.

For example, we see in the laws of God that owners of fields will not be able to do all they wish with what they grow: “When you reap the harvest of your land, you shall not wholly reap the corners of your field when you reap, nor shall you gather any gleaning from your harvest. You shall leave them for the poor and for the stranger: I am the Lord your God” (Leviticus 23:22). Jesus will have no qualms about His “government interference” in “private business”—He very much plans to enforce God’s laws and ensure opportunity is given to those who have none. In fact, every third year and sixth in cycles of seven, God’s law requires a tenth of all produce, livestock, and income to be given to the “State” for distribution to the poor and needy (Deuteronomy 26:12–15).

There will be no arguments of, “Just let me keep it and I can turn it into even more!” There will be obedience and blessings, or there will be disobedience and curses.

God’s Law Resolves Economic Injustice

God’s word also recognizes the realities of economic abuse that socialism seeks to address. Under Christ’s reign, those who employ others will be commanded, “You shall not cheat your neighbor, nor rob him. The wages of him who is hired shall not remain with you all night until morning” (Leviticus 19:13). Christ’s principle that “the laborer is worthy of his wages” (Luke 10:7) will be implemented fairly and justly; people will be paid fully and fairly for the work they perform.

What of the disabled or impoverished workers who cannot provide for themselves or their families in a purely capitalist environment? God will command in the Millennium that some situations are off-limits for seeking profit, such as when a brother or neighbor is in dire straits: “If one of your brethren becomes poor, and falls into poverty among you, then you shall help him, like a stranger or a sojourner, that he may live with you. Take no usury or interest from him; but fear your God, that your brother may live with you. You shall not lend him your money for usury, nor lend him your food at a profit” (Leviticus 25:35–37).

So, too, does God condemn those driven by greed to collect all the property and possessions they can. Even today He says to us in prophecy, “Woe to those who join house to house; they add field to field, till there is no place where they may dwell alone in the midst of the land!” (Isaiah 5:8). In fact, God created laws that prevent the permanent accumulation of additional land and homes, as in Leviticus 25:23–31, which requires those who buy land to let it be redeemed and reminds Israel that all fields and homes in unwalled cities revert to their original owners every 50 years.

In the Millennium, mankind will learn the truth it does not now recognize: Private ownership is, in reality, a stewardship, for it is God Almighty who owns all things. He declared to ancient Israel that “all the earth is Mine” (Exodus 19:5). Moses emphasized to the people in Deuteronomy 10, “Indeed heaven and the highest heavens belong to the Lord your God, also the earth with all that is in it” (v. 14). All the earth “and all its fullness” belongs to Him (Psalm 50:10–12). “‘The silver is Mine, and the gold is Mine,’ says the Lord of hosts” (Haggai 2:8).

Ultimately, no land or property is truly “privately owned,” nor is it the common property of all the people; it is God’s land and God’s property, and every human being will be held responsible for doing what pleases the Creator.

And that Creator will accomplish something Karl Marx or Adam Smith couldn’t. The Ever-Living One is the true engineer of the heart and mind! He will replace the human “heart of stone” with a “heart of flesh” and place His Spirit within those who accept it (Ezekiel 36:26–27). The tendencies toward corruption and selfishness that have plagued socialism and capitalism will be solved in ways human economists and policymakers never could: By transforming humanity from within.

The Only Perspective That Matters

Which humanly devised system ensures that the “good” succeed and the “bad” fail? Which one guarantees that the “powerful” are unable to unjustly benefit at the expense of the “weak”? Which one is able to balance human failings against themselves in a system of checks and balances so as to prevent societal rot and decay? None.

As followers of Jesus Christ, we must understand that God is not sending Him to earth to “globalize” any human philosophy. The millennial world we celebrate and meditate on during the Feast of Tabernacles will come about because Christ will finally set aside all of mankind’s ideas and implement God’s ideas. “For who has known the mind of the Lord?” Paul asks in Romans 11:34. “Or who has become His counselor?”

Tomorrow’s world will not be a “perfected version” of today’s world. It will be a radically different world. Jesus Christ will not have worked for millennia—sacrificing Himself for our sins, living His life within us to reproduce His own faith and righteousness, and guiding His Church for 2,000 years—just to return and set up a civilization based on “cleaned-up” human philosophies. He will institute the reign of heaven on earth! He will institute “just ordinances and true laws” (Nehemiah 9:13) and commandments that are “holy and just and good” (Romans 7:12). Christ longs not to enshrine the “pure” ideals of Karl Marx or Adam Smith, but the laws of the living God.

We must not let the spirit of this world infest us with a “passion” for the tools, philosophies, and systems of this world, for they will all pass away to make room for the way of God at Jesus Christ’s return (1 John 2:16–17). Let us not be champions of any broken, incomplete philosophy of this world. Let us rather be champions of the righteous reign of Christ to come, focusing our hearts and minds on His perfect laws, ways, and paths; then, when He does return, we will be able to join Him in teaching them to all of humanity.