A STUDY BY
GARY RAY BRANSCOME
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.
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
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
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
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 be 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
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
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.
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
“Dividing The Wealth” by Howard E. Kershner
"Economics In One Lesson" by Henry Hazlitt
"Basic
Economics" by Clarence B. Carson
"Human Action"
by Ludwig Von Mises