Profits and an ‘economy of mutuality’
Acton Institute Powerblog

Profits and an ‘economy of mutuality’

profit“Money is often seen as intrinsically bad or perhaps a necessary evil in the world,” says Tom Nelson. “However, we must not forget the important role money plays in wealth creation and in facilitating the efficient exchange of goods and services.”

Money and the trade it makes possible further the common good and greatly enhance our ability to love our neighbors — both local and global. Christian philosopher Dallas Willard reminded us, “Business is an amazingly effective means of delivering God’s love to the world by loving, serving and providing for one another.”

The idea of profit can, at first blush, seem problematic, but upon closer reflection, we can see the importance of profit within an economic system.

When property rights are well-defined and contracts are consistently enforced, profits perform important functions within modern economies. Profits provide rewards for technological innovation and resource efficiency in delivering goods and services. In this sense, profits are important incentives for promoting research and development, enabling enterprises to discover superior products and better ways to meet the needs of people.

Read more . . .

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).