Capitalism is a system built on private ownership, voluntary exchange, and freedom under law. It allows people to use their skills and creativity to serve one another through trade, rather than through force or state control.1 Many who defend it see it not only as an economic model, but as a moral and social framework that honors free human action and responsibility before God.
What Are the Moral Foundations of Capitalism?
Joseph Sunde argues that economic freedom honors human dignity and “the creative capacity of the human person.”2 He believes capitalism should be upheld not only because it creates prosperity, but because it allows people to make real moral choices. When individuals are free to create, produce, and exchange, they learn to take responsibility for their lives and the welfare of others. Sunde points out that freedom by itself must be joined with virtue, sound institutions, and moral discipline. Without that, free markets lose their moral direction and fail to promote human flourishing.3
How Did Christian Thought Shape Capitalism?
Michael Novak traces the roots of modern capitalism to the medieval church.4 Long before the Enlightenment, monasteries such as the Cistercians practiced organized management, used technology to improve labor, and developed early forms of corporate enterprise. The church’s systems of law and education created the order in which trade and investment could grow. Novak explains that this framework provided what later economists would call “human capital” — knowledge, discipline, and trust that made sustained progress possible.5
He also links the Christian view of the person to capitalism’s moral core. Scripture teaches that every person is made in God’s image (Genesis 1:27), entrusted with creativity and stewardship over creation (Genesis 2:15). These ideas led to a culture that respected work, discovery, and enterprise. Novak wrote that capitalism should remain guided by caritas — love — because honesty, trust, and cooperation are essential for any economic system to thrive.6
What Does Freedom Require?
Economist Alex Tokarev describes capitalism as “freedom under the Law.”7 He contrasts it with socialism, which depends on coercion and central planning. In capitalism, people have the freedom to use their skills and property as they choose, but they also bear the results of those choices — success or failure. Tokarev connects this to the biblical truth that God allows people to choose freely, even when they choose wrongly, because forced obedience is not genuine righteousness (Deuteronomy 30:19).8
Tokarev warns against turning charity into a government program. When giving is compelled by law rather than chosen in love, it loses moral value. He points instead to the call of Scripture: “Each one must give as he has decided in his heart, not reluctantly or under compulsion” (2 Corinthians 9:7). In his view, economic systems that rely on forced redistribution weaken both generosity and character, while voluntary giving reflects true obedience to God’s command to love one’s neighbor.9
How Does Capitalism Encourage Human Flourishing?
Sunde, Novak, and Tokarev each see capitalism as more than a means to produce wealth. It is a moral structure that allows freedom, responsibility, and creativity to serve a higher purpose. Economic freedom lets people use their gifts to benefit others. The traditions of law and trust nurtured within Christian culture helped make that freedom sustainable. When guided by virtue and love, capitalism can promote not only prosperity but also the moral growth of communities and individuals.10
References
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Joseph Sunde, “Why Capitalism Is Worth Conserving,” Religion & Liberty Online, May 26, 2021, https://rlo.acton.org/archives/120668-why-capitalism-is-worth-conserving.html.
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Michael Novak, “How Christianity Created Capitalism,” Religion & Liberty 10, no. 3 (July 20, 2010), https://www.acton.org/pub/religion-liberty/volume-10-number-3/how-christianity-created-capitalism.
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Alex Tokarev, “A Christian Defense of Capitalism,” Libertarian Christians (blog), June 10, 2017, https://libertarianchristians.com/2017/06/10/christian-defense-capitalism/.