Home
/
RELIGION & LIBERTY ONLINE
/
Capitalism, cronyism, and socialism
Capitalism, cronyism, and socialism
Jan 20, 2026 10:39 AM

“Having a heart for the poor isn’t hard. Having a mind for the poor…that’s the challenge.” –Poverty, Inc.

This quote from the documentary Poverty, Inc. highlights the reason why so many people are willing to give their money to foreign aid, without necessarily understanding its harmful effects. This quote can also shed some light on the recent embrace of socialism by many millennials.

When young people look at the rate of poverty in the U.S. and see that we are not doing as well as some other developed countries, it is easy for them to place this blame on what they believe is “capitalism.” If capitalism has caused the U.S. to experience this poverty then it logically follows that people today, especially millennials, would embrace socialism instead of capitalism.

Given that I am a millennial myself, this makes sense to me. It’s clear that we care about these causes and that we are willing to give our time and money. That’s the easy part. We have a heart for the poor. The challenge is having a mind for the poor.

Having a mind for the poor may seem like a challenge, but it’s certainly not impossible. It all begins with a basic understanding of economics. It is not capitalism that makes people poor, but the crony capitalism that creates a two-tiered society. Socialism does not help the poor, but bination of moral principles and free-market capitalism does. Sam Gregg recently highlightedhow free-markets revived West Germany’s stagnant socialist economy in 1948.

Up until recent political movements, this was rarely debated among the different sides of the political spectrum, especially among the major political parties. Many understood that the power of the free-market was the leading tool used in alleviating poverty.

Economics does not change because of current political and social movements. All that changes is the way that people understand economics. What was once understood as free-market capitalism became horribly mistaken for a big government that chooses winners and losers in the economy. Crony capitalism and free-market capitalism are now grouped together as simply “capitalism” and capitalism has e public enemy number one for millennials and other “social justice warriors.”

Last January, the hashtag #resistcapitalism trended throughout the world on Twitter. Do the people who belong to this movement truly understand what capitalism is?

Socialist/Communist/Anti-capitalist history is heroic! A fight for humanity and for this planet! #ResistCapitalism /KGnEyLScGK

— TayGo (@taygogo) January 8, 2016

This tweet using the hashtag #resistcaptialism, claims that “Socialist/Communist/Anti-capitalist history is heroic!” I can’t think of one situation when socialism munism was “heroic.”

There is something genuinely appealing about belonging to a movement that claims to be for the underdog and against the establishment. It’s appealing to belong to the camp that claims to care for the less fortunate and is actually talking about these issues. This is why a previously unknown senator from Vermont was able to start a movement that quickly attracted millions of followers. Everything about his “democratic socialism” sounds good but none of it makes any economic sense at all.

When college students are asked what they like about Bernie Sanders, one student replies with “I like socialism!” I wonder if she truly knows what socialism is. Or does she know of all the harm that socialism has caused? One phrase that I often hear from millennials is “I don’t know the economics of socialism, but look, it’s working in all of the Nordic countries.”

How can people who know practically nothing about economics and claim to want to help the poor be so quick to embrace an economic system that is responsible for the death of millions of people?

Murray Rothbard once said, “It is no crime to be ignorant of economics… but it is totally irresponsible to have a loud vociferous opinion on economic subjects while remaining in this state of ignorance.”

We cannot let the ignorance of economics blind us to the most effective ways of bringing about poverty alleviation. Instead, we should use what we know about economics to approach the issue of poverty in a way that has proven to be successful. Before we can begin to talk about helping the poor, not only in our country but all across the world, we need to educate ourselves on the differences between capitalism, cronyism, and socialism. We need to educate ourselves on what works and what doesn’t.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Samuel Gregg: Socialism and Solidarity
On Public Discourse, Acton Research Director Samuel Gregg observes in a new piece that “while moral beliefs have an important impact upon economic life, the manner in which they are given institutional expression also matters. This is illustrated by the different ways in which people’s responsibilities to those in need—what might be called the good of solidarity—are given political and economic form.” Excerpt: … the rather modest welfare and labor-market reforms presently being implemented in Spain, Greece and France have...
Loss of Institutional Faith
In this mentary I say that part of the reason less money is being given to local churches is that it is reflective of a broader trend of distrust towards institutions. Commentary magazine’s blog contentions has some more recent data confirming this overall shift. The post summarizes the December issue of AEI’s “Political Report” (PDF), which focuses especially on trust in the government. It finds that “contemporary criticisms of the federal government are broad and deep” and that, for instance,...
The Morality of GM Food
Steve Connor in The Independent (HT: RealClearReligion) speculates about some happenings at the Vatican with regard to genetically-modified (GM) food. It’s important to note, as is the case in this article, that things that happen in mittees and study groups at the Vatican do not by default have some kind of papal endorsement. To wit: A leaked document from a group of scientists linked to Rome has set a hare running about the possible endorsement of GM technology by the...
‘What May I Expect from My Church?’
Madeleine L’Engle, in a 1986 essay, “What May I Expect from My Church?” And that is what I want my church to speak out about: the Gospel, the Good News. Then I will be given criteria to use in thinking about such issues as abortion, euthanasia, genetic manipulation. It is impossible to listen tot he Gospel week after week and turn my back on the social issues confronting me today. But what I hope for is guidance, not legislation. L’Engle...
Christian Giving Begins with the Local Church
In today’s Acton Commentary I argue that “Christian Giving Begins with the Local Church.” I note some statistics that show that American Christians are increasingly looking beyond their local congregations and churches as outlets for their charitable giving, in spite of the fact that giving to religiously affiliated and religiously focused charities is increasing. What es down to, I think, is that in large part Christians don’t trust their local congregations to spend the money in a way that is...
Why the Nativity?
Increasingly the Nativity tends to be associated with the political, as the crèche and other overtly religious symbols are banished from the public square by public pressure or the courts. To some municates a baby savior with so little power he can’t even defeat the secular legal authorities who seek his removal. If God is out there, “He must be pretty weak,” could be mon refrain today. Likewise in some churches the Nativity is seen as an activity for the...
Re: The Politics of Hunger
Jordan’s post on hunger raises a timely question, on a day when First Lady Michelle Obama was on hand to watch the president sign the $4.5 billion “Healthy, Hunger-Free Kids Act” at a Washington elementary school. Despite the media coverage and White House spin that points to this in part as a hunger fighting piece of legislation, the measure is really about obesity. Because in America, the real problem with food is superabundance and waste, not scarcity and hunger. As...
The Politics of Hunger
In an otherwise fine piece focusing on innovative techniques used by food banks to increase efficiency, while at the same time improving service and the recognition of the dignity of those they serve, Bread for the World president David Beckmann uses the opportunity to throw a dose of pessimism into the mix. “We can’t food-bank our way to the end of hunger,” said Beckmann, co-recipient of the 2010 World Food Prize. “Christian people need to change the politics of hunger...
Religion & Liberty: Acton 20th Year Issue with John Armstrong
Over the years Religion & Liberty piled a lot of interview gems and first class content for our readers. The new issue, now available online, highlights some of that content, with new material as well. This double issue is an Acton 20th Anniversary tribute with an interview with John Armstrong as well as a collection from some of our best interviews. Regarding piled collection, the responses selected represent a range of timeless truths of the Gospel, the importance of human...
In the ‘pressure cooker’
Video: Hundreds of protesters clashed with riot police across central Athens on Wednesday, smashing cars and hurling gasoline bombs during a nationwide labour protest against the government’s latest austerity measures. The former Development Minister Costis Hatzidakis was attacked by protesters outside a luxury hotel. He was escorted, bleeding from the scene as his attackers yelled “thieves” at him. Source: Russia Today In the Greek daily Kathimerini, Alexis Papachelas writes: There are no easy answers and, to make matters worse, we...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved