Exalting the City of Man

An intellectual defense of civilization's "last, best hope"

"Democratic capitalism is neither the Kingdom of God nor without sin. Yet all other known systems of political economy are worse." So writes Michael Novak, a Roman Catholic intellectual and socialist turned neoconservative, in a spirited (and spiritual) new defense. Reflecting on the "new order" in America that European-influenced moral philosophers have long ignored, Novak argues that democracy and a free economy are the natural embodiment of the ideals of liberty and individual worth that are the foundation of the Judeo-Christian tradition. "Such hope as we have for alleviating poverty and for removing oppressive tyranny—perhaps our last, best hope—lies in this much despised system," he writes in The Spirit of Democratic Capitalism (Simon & Schuster; 433 pages; $17.50).

Democratic capitalism embodies three elements: a free-market economy, a political system based on individual rights, and a moral pluralism that respects different cultural goals and beliefs. Such social philosophers as Max Weber (The Protestant Ethic and the Spirit of Capitalism) and Daniel Bell (The Cultural Contradictions of Capitalism) have contended that these elements are often in conflict, and that a liberal society must balance the competing forces of democracy, economic freedom and social justice. Not so, answers Novak. Capitalism and democracy complement one another. They are inevitable outgrowths of the same moral tradition, and it is no accident that they tend to go hand in hand in the real world. He writes: "Political democracy is compatible in practice only with a market economy. In turn, both systems nourish and are best nourished by a pluralistic liberal culture."

In the 20th century, socialism as a visionary ideal has appealed to such diverse religious thinkers as Protestant Theologian Paul Tillich and the Catholic clergy who advocate a quasi-Marxist "liberation theology" in Latin America. "Any serious Christian must be a socialist," Tillich once said. Yet those who are hostile to capitalism, Novak writes, tend to compare its flaws in practice with a utopian vision of socialism, ignoring the reality that socialism in practice tends to be economically incoherent and politically repressive. Democratic socialism is a doomed dream because it ignores the "necessary connection between economic liberty and political liberty." A democratic system that respects individual rights, argues Novak, "is bound to be drawn to an economic system" that allows individuals to produce and trade freely.

Against those theologians who argue that democracy tends to fall prey to moral relativism by not exalting a unified vision of "the good," Novak responds that pluralism, which is the respect for each individual's own personal goals, allows mankind to realize a greater moral vision. Against those who argue that capitalism is based on selfish materialism, he responds that it tends to expand the wealth of all citizens by providing incentives for productivity. The marriage of pluralism and productivity best realizes the Christian ideal of caritas, or the compassionate love of fellow human beings.