Since the truth of God's Word transcends all human ideology, when we
view economics from a Biblical perspective, it does not come down to
communism verses capitalism or even a matter of supply and demand,
instead it is a matter of human action. And human action, defined as
"purposeful behavior aimed at bringing about a more desirable state of
affairs," will inevitably involve moral choices (see "Human Action" by
Ludwig Von Mises). It is in regard to these moral choices that the
Bible relates to the field of economics. Therefore, while the Bible
does not deal directly with economic theory, it does provide certain
basic principles, and a moral foundation that is basic to all
legitimate economic activity.
THE RIGHT TO PROPERTY
By driving Adam out of the Garden of Eden, and
telling him that in the future he would have to work for a living, God,
in effect, gave Adam and his descendants the fruit of their labor to
live by (Genesis 3:17-19). Moreover, since the very concept of working
for a living assumes the right of the worker to keep the fruit of his
labor, that God-given right is basic to a sound economy (Exodus 20:15).
In order to understand how vital the right to
property is to the economy, try to picture life in a country where
thieves have a free hand and theft is never punished. In such an
environment, one business after another would be bankrupted due to
theft. In order to survive some businesses would begin to cheat the
hired help, and hold back wages whenever possible (Leviticus 19:13).
Other business would take advantage of the poverty and unemployment
resulting from theft, to offer the lowest possible wage (Malachi 3:5).
At the same time, few people would chose to go into business, or even
try to get ahead, because any evidence of prosperity would only attract
the attention of thieves. In such a state of affairs, the entire nation
would soon be reduced to poverty.
Going one step further, try to visualize life in a
nation where theft by individuals is condemned and punished, but where
rulers use the law to rob the people. If a man is wealthy he might be
falsely accused of a crime and his property confiscated. If he builds a
successful business it might be "nationalized." No matter how hard he
works he is only allowed to keep enough of his wages to provide him
with the basic necessities (from each according to his ability, to each
according to his need). If he tries to start a business he is required
to pay stiff fees. If he gives someone a job his taxes go up. If he
lays someone off he pays an unemployment tax. If he purchases equipment
he pays tax on it. If he buys raw materials he pays tax on them. If he
forms those raw materials into products he pays more tax. If he sells
those products he is taxed again. If he improves his place of business
taxes go up. If he makes a profit he pays a stiff capital gains tax.
And if he dies his heirs must pay an inheritance tax. In short the
harder a man works the more he has taken away from him. Isn't it clear
that such oppression will drain the economy and reduce the standard of
living just as surely as open theft?
At this point someone is sure to point out that the
Bible tells us to pay our taxes. However, the Bible also tells us to
turn the other cheek, yet that fact does not make it right for people
to go around slapping us in the face. If rulers provide us a service by
protecting our life, liberty and property then they must be paid for
that service. In fact taxes are simply the bill for that service.
Nevertheless, the Bible also makes it plain that rulers are not to over
charge us for their services. Nor are they to abuse the power to tax,
either to make themselves rich or to appear as benefactors at our
expense. [Luke 22:25,26, Matthew 17:24-27, Exodus 20:15, Leviticus
19:11, 1 Timothy 1:1,2, Romans 13:1-6.]
THE RIGHT TO LIFE AND LIBERTY
Our right to life and liberty is as important to a
sound economy as our right to property. In fact, since life and liberty
are something we possess, in a certain sense they could be regarded as
our property. At any rate, by condemning murder and manstealing God has
given us the right to life and liberty (Exodus 21:16, 1 Timothy 1:10).
Moreover, even though the Law of Moses did not forbid slavery in every
circumstance, it was strictly limited and believers were to be restored
to liberty after a period of indenture (Exodus 21:2, Leviticus 25:10).
In order to understand how our right to life and
liberty relates to the economy, try to visualize a nation where life
and liberty are not protected. Since everyone would live in constant
fear of being killed or enslaved, each person would become a law unto
himself. Because the future would be uncertain, people would live for
the present. At the same time, no one would pay good wages because
slaves could he made to work for nothing. As a result, honest work
would be soon despised as the role of slaves, while idleness and
self-indulgence would be exalted as the highest good.
Therefore, in order for the economy of any nation to
prosper, the law must protect the life, liberty, and property of all
citizens, and the people, in turn, must respect the law (Proverbs
14:34, Ecclesiastes 8:11). At the same time, a division of power is
needed so that rulers who abuse their office can be brought to justice
(Romans 13:1, 1 Peter 2:14, Philippians 2:10). Beyond that, the
government should not interfere in the lives of the people, but should
leave them alone, allowing them the freedom to lead quiet and peaceable
lives in all godliness and honesty (1 Timothy 1:9, 1 Timothy 2:2).
THE PURSUIT OF HAPPINESS
A system of government that respects and secures our
God-given right to life, liberty and property will not automatically
produce prosperity. Instead, it will provide people with an opportunity
to improve their lot in life, coupled with the security they need to
enjoy the fruits of their labor. Moreover, while people from different
cultural backgrounds may use that opportunity differently, a Christian
should view such opportunity as an opportunity to serve (Philippians
2:5-7).
As Christians we should never view business as
simply a way of getting someone else's money, nor should we view profit
as something to be gotten by charging more for a product than it is
worth (Exodus 20:17, Amos 8:5). If God has given us a job, He has given
us a way of serving others, and honesty requires us to give equal value
for value received. For example: If God has called you to be a banker
then He has called you to help others financially. If He has called you
to be a baker, He has called you to serve others by preparing food for
them. If you are a carpenter, you serve others by helping them build
and repair things. If you are a plumber, you serve by fixing pipes. If
you are a storekeeper, you serve by making goods available (1
Corinthians 10:31). Moreover, if someone decides to pay for your
service they should not do so because they were tricked or had no
choice, but because it is to their advantage to earn the money needed
to hire you, rather than doing the work themselves. Therefore, from the
Christian perspective everyone profits from a business transaction, and
that honest and honorable approach to enterprise is fundamental to our
economy.
The importance of this Christian approach can be
seen more clearly when it is contrasted with the approach taken in most
of the world until just a few years ago. Instead of viewing wealth as
the increase, which comes with God's blessing (such as the increase of
Abraham's flocks), the non-Christian world tended to equate wealth with
money. Moreover, since the amount of money is fixed it was usually
assumed that gain must come at the expense of someone else. Therefore,
in order to make a gain the aim was not to give value for value
received, but to give less than what is received in order to profit at
someone else's expense. That is essentially why the orient was long
equated with shoddy merchandise, a reputation which it has only
recently overcome by emulating western values.
CONCLUSION
Such economic values as pride in workmanship, the
importance of a good reputation, honesty in advertising, and guaranteed
customer satisfaction are rooted in God's Word. The blessing those
values have bestowed upon our society illustrates the wisdom behind
them. However, greed all too often blinds people to what is best for
them in the long run. A storeowner may jack up prices just because he
has little competition, yet alienate his customers, so they are glad to
give their business to someone else. A Company may offer shoddy
merchandise, with little thought to the importance of building a
reputation for quality, yet lose repeat sales along with customer
confidence. In regard to such short sightedness, Francios Chateaubriant
had this to say:
"There are two consequences in history:
one immediate and instantaneously recognized; the other distant and
unperceived at first. These consequences often contradict each other;
the former come from our short run wisdom, the latter from long-run
wisdom. The providential event appears after the human event. Behind
men rises God. Deny as much as you wish the supreme wisdom, do not
believe in its action, dispute over words, call what the common man
calls providence "the force of circumstances" or "reason" but look at
the end of an accomplished fact and you will see that it has always
produced the opposite of what was expected when it has not been founded
from the first on morality and justice." (quoted from "What Is Seen And
What Is Not Seen" by Fredric Bastiat)
For further reading I recommend:
"The Law" by Fredric Bastiat
"What Is Seen And What Is Not Seen" by Fredric Bastiat
"The Wild Wheel" by Garet Garrett
"Economics In One Lesson" by Henry Hazlitt
"Basic Economics" by Clarence B. Carson
"Human Action" by Ludwig Von Mises
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