Mistaking the Virtue of Self Interest.

• Author: Carden, Art

Better Capitalism: Jesus, Adam Smith, Ayn Rand, and MLK Jr. on Moving from Plantation to Partnership Economics

By Paul E. Knowlton and Aaron E. Hedges 278 pp.; Cascade Books, 2021

Appraisals of market economics by lawyers and businessmen are common. Appraisals by lawyers and businessmen who have also studied theology are considerably rarer. Better Capitalism is written by business attorney Paul Knowlton and former CEO Aaron Hedges, both of whom hold master's degrees in divinity, and their book evaluates capitalism from the perspective of Christian ethics.

The book has a lot to recommend it. It brings the "real Adam Smith"--the moral philosopher and economist for whom The Theory of Moral Sentiments and The Wealth of Nations were part of a unified inquiry--into the conversation on faith, economics, and business ethics. Their discussion of Ayn Rand is striking, and I agree with them that, despite her atheism, she had a profound understanding of what it means for people to be created in God's image. They encourage readers to dig into what thinkers like Smith, Rand, and Milton Friedman actually said and wrote as opposed to what is attributed to them. The authors invite their readers into a conversation, proposing action steps at the end of each chapter and asking readers to email them if they have better ideas. Better Capitalism is a sincere search for a better world.

It is also a frustrating book, as the authors seem to misunderstand some important economic ideas and arguments. For instance, I disagree with their reading of Friedman's classic essay, "The Social Responsibility of Business Is to Increase Its Profits." They attribute to him a view that he repudiates explicitly, claiming that his reliance on society's institutions and norms to serve as ethical guardrails is weak sauce. Their warning that he overlooks firms' inclination to increase their profits by working to rig government policy in their favor ignores Friedman's repeated excoriations of people who do most of their "business" in Washington or state capitals. I'm not familiar with anywhere in Friedman's work where he holds up Atlas Shrugged villain Orren Boyle, who grew fat on subsidies and special privileges, as a model businessperson. As Friedman pointed out repeatedly, everyone in business believes in unrestricted free trade and competition in every industry but their own, which must be regulated, protected, and supervised as a matter of national security or whatever.

Muddled thinking / This book, and the broader discussion to which it...