Biblical Economics 101

The global economy is in trouble. Our own country, as well as European countries such as Greece and Italy, are faced with crippling debt.

No one seems to have an answer. Perhaps it time to look for some ‘divine guidance’ and examine what the Bible recommends regarding money and its use. Obviously, because of the great differences in the culture of the ancient societies and our own, specifics actions can’t be found. However, powerful financial strategies which transcend cultures can be found and do apply even today.

Depending upon the context money and wealth in the Bible are spoken of as both a blessing from God (The blessings of the Lord brings wealth. Prov.10:22) but also a curse when they become one’s god (No man can serve two Masters. Either he will hate the one and love the other, or he will be devoted to one and despise the other. You cannot serve both God and money. Lk.16:13).

So what principals do we find in Scripture?

1. Avoid Debt: “The rich rule over the poor, and the borrower is servant to the lender.” Prov.22:7.

A Huff Post article published Nov.12, 2011 stated that China is the largest  foreign holder of U.S. debt owning $1.2 trillion of U.S. treasury debt. The Chinese paper, 3Xinhua News stated; “China, the largest creditor of the world’s sole superpower, has every right to demand the U.S. address its structural debt problem...”. Xinhua lso demanded that America tighten its belt and confront its, “addiction to debts” in the wake of Standard’s and Poor’s decision to downgrade the U.S. credit rating.”

Debt is a form of slavery in that it robs one of the freedom to use our income as we wish and often limits opportunities we would otherwise have taken. It may come as a shock to many but there was a time not long ago when there were no credit cards or they were very rare and we all survived. People budgeted and saved for what they wanted. The saw the American dream as an opportunity not a right and worked and saved towards it.

2. Pay off any debt: “Let no debt remain outstanding...” Rom.13:8. “Do not withhold good from those who deserve it, when it is in your power to act. Do not say to your neighbor, “Come back later; I’ll give it tomorrow - when you have it now with you.”

A recent financial post on, ‘Out of your rut’, stated: “Paying off debt can be more effective than saving for retirement...The unexpected bonus is that once your debts are paid, not only will your living expenses be lower but you’ll also free up money to for saving and retirement...The key is to establish a debt free position as a lifestyle...”. Whether an individual or country, getting out of debt means sacrifices and one must be willing to accept them. If one must use a credit card for convenience, paying it off monthly is a must.

3. Live within your means: “I have learned to be content in whatever circumstances I am.” Phil.4:11; “If we have food and covering, with these we shall be content.” 1 Tim. 6:8

Whether we speak of the individual or a country, living beyond one’s means leads to ruin. While the Bible encourages us to be content within our means, society strives to create discontentment within us. Every commercial tries to convince us that it would be better to have this product, from cars to toilet paper, and that it alone would bring contentment-until the next commercial.

As author George Fooshee once said, “People buy things they do not need with money they do not have to impress people they do not even like.” There is another Proverb, 24:27 which reads, “Finish your outdoor work and get your fields ready; after that, build your house.” In other words, make sure you have the resources first before extending yourself in buying a home. Too many people don’t own their home, the home owns them.

4. Work hard: “Lazy hands make a man poor, but diligent hands bring wealth.” Prov.10:4;  “Go to the ant, you sluggard: consider its ways and be wise.” Prov.6:6

Unemployment rates are high and many people are suffering. They have been pounding the pavement (or surfing the internet) diligently seeking a job. But many are not. They would rather sit and complain about how tough things are and collect unemployment insurance. They won’t work because the job opening is not what they want or does not pay enough. Nearly all my adult life I worked two jobs to provide for my family. They were not glamorous and it was not easy, but I took what I could get and did it. It was honest work and paid the bills. The Bible speaks harshly against the lazy.

5. Save to give: “The wise man saves for the future, but the foolish man spends whatever he gets.” Prov.21:20; “A generous man will prosper; he who refreshes others will himself be refreshed.” Prov.11:25.

Few things speak to our attitude towards money as what we do with it once we have it. Saving for that “rainy day” or the unexpected, or the planned retirement is essential. But in order to save one must exercise self-discipline, denying an expenditure today so will will have something to spend tomorrow.

The big difference between Capitalism and what’s called the ‘Protestant work ethic” lies not in getting wealth but in its use. Capitalism says ‘spend’ and calls one to live beyond their means. The Protestant work ethic says, you have learned to be content, so save, stay within your means and use the money for the good, like caring for your family, giving to the poor, helping the disadvantaged and truly needy. Upon retiring, Andrew Carnegie donated $350 million to charity. He wrote, “This, then, is held to be the duty of the man of wealth: ...to consider all surplus revenues which come to him simply as trust funds, which he  is called upon to administer...to produce the most beneficial results for the community.”

6. Be honest: “The Lord abhors dishonest scales, but accurate weights are his delight.” Prov.11:1; “The man of integrity walks securely, but he who takes crooked paths will be found out.” Prov.10:9

Beware dishonest gain. From the mega-million Ponzi schemes, to the laborer working of the books, its both illegal and immoral. A 2005 Wall Street journal article on the “underground economy” stated; “If the IRS could collect all the taxes it says that it is owed from the underground economy in a given year, then the current budget deficit would disappear overnight.” Romans 13:7 reads; “Give everyone what you owe him: if you owe taxes, pay taxes; if revenue, then revenue...”  Employers should provide an ‘honest days pay” for employees who give, “an honest days work.”

(Maybe we should just fire all the hot-shot economists and hire John & Jane Doe's who have a credit rating above 800. At least they understand fiscal responsibility and can handle a budget.)

These are but some of the economic principals of the Bible. As you can see they are up-to-date relevant and we would all be better off by following their instruction. But one other thing we should keep in mind as Proverbs 11:4 reminds us: “Wealth is worthless in the day of wrath, but righteousness delivers from death.” That is why Jesus told his disciples: “So do not worry, saying, ‘What shall we eat?” or “What shall we wear?” For the pagans run after all these things, and your heavenly Father knows you need them. But seek first his kingdom and his righteousness and all these things will be given to you as well.” Mt. 6:31-33