Social Constructions and Cultural Contradictions: A Look at a Christian Perspective on Economics

Christian Economics and the New Christian RightThe economic perspective that I label "Christian economics" is predicated on two things. One is the inerrant Bible and the other is the neoclassical economic paradigm. The former is cited to support the latter, in particular the economic theory's assumptions and implications concerning a capitalistic free-market economy, individual freedom and limited government. The particular position I will address is promulgated by the Contemporary Economics and Business Association (CEBA), head-quartered at Liberty University in Lynchburg, Virginia. The CEBA may be seen as a branch of the political movement often known as the New Christian Right. The following passage provides a succinct introduction to this position.The most potent justifications for the orientation to economic growth and material success within American culture have been those that imbue this orientation with broader religious meaning....American conservative ideology captures the libertarian emphasis on material progress and individual success, but envelopes these within an appeal to divine providence, transcendent values, and collective social bonds. In this way, contemporary American conservatism affirms both God and capitalism. (Himmelstein 22-23, emphasis added)The CEBA in fact seems to find God in capitalism and its supporting market theory, the neoclassical paradigm.The neoclassical economic paradigm presents an ideal image of market behavior where each economic actor has equal power and perfect knowledge, resulting in individual behavior that is rational and optimizing; actors in an economic market are always maximizing their utility or profit while minimizing their cost. Further, economic actors are assumed voluntarily and independently to enter the market about which they have full knowledge, each individual market transaction being viewed independently from any other. These assumptions combine to result not only in the maximization of individual satisfaction, whether profit or utility, but also in the best, most efficient solution to the economic problem (i.e., scarce resources combined with unlimited wants) for society--"the great good for the greatest number." This is an economically optimal, allocatively efficient solution in which no one can be made any better off without anyone else being made worse off. In the competitive market economy of neoclassical economics, prices efficiently ration goods and services, and distributive justice is thereby achieved in the private sector with the resulting distribution of economic resources.One function the neoclassical economic paradigm performs for Christian economists is that of a bridge between God and capitalism. Interestingly however, when Christian economists cite Scripture to legitimize the tenets of neoclassical economics, they never mention the story of Judas. Judas is an example of an economic man enjoying independent freedom of choice, of self-interested behavior that these proponents of Christian economics at least theoretically laud. The story goes: "Then one of the twelve, called Judas Iscariot, went to the chief priests, and said to them, 'What will you give me, and I will deliver him to you?' And they covenanted with him for thirty pieces of silver. And from that time he sought opportunity to betray him" (Matthew 26:14-16).The neoclassical economic paradigm celebrates this ever-optimizing individual whose behavior, by definition, insures the "just" distribution of economic resources. According to its assumptions, economic actors should follow their Internal subjective motivations concerning their own actions. Actions follow logically, rationally and consistently from values. But tautological problems plague the neoclassical paradigm because it cannot differentiate among behaviors. Behavior is accepted as evidence of values and results in utility maximization. So, since all behavior is maximizing, whatever the individual economic actor does will promote the most efficient solution to the economic problem. …