Highlands Reformed Church

Rev. Brian M. AbshireEconomics before the Fall
Economics is inherently and implicitly a part of God’s plan for dominion. Even if the Fall had not occurred there still would have been some sort of economic system. Time and energy are limited for we are finite creatures. Therefore, even in a perfect world, where men did not have to labor to support themselves, still, aesthetic, scientific and artistic endeavors would have required rationing time and energy. Since even in a perfect world, no man could do everything, there would have to have been cooperation. Men need other men’s help to plow fields, mine minerals, fashion objects, build homes, temples, etc. And therefore there would have to be some sort of organization of labor and skills.

Furthermore, even if one assumed that people worked freely, without the need for pay, simply for the joy of working, there would have had to be some sort of accounting procedures. Say you want to build a house. You need wood, stone, glass, concrete, steel, etc. Someone has to either mine or manufacture those items. And there are certain jobs that even in a perfect world are dirty and less desirable than others. But people might be motivated to take them on, if there was some reward. Furthermore, even in a perfect world, different people have different skills. It is unlikely that all men would be able to do all things equally well. The nature of God is unity in diversity. There are three members of the godhead, equal in power and glory, but distinct in function and calling. Therefore, we would expect even in a perfect world that God would give different people different gifts and callings. Thus some people would most likely be able to do SOME tasks better than others; i.e., some would be better carpenters, weavers, miners, etc.

So therefore, it is very likely that there would be a “DIVISION OF LABOR” where some men worked at some jobs, developing the skills, abilities and talents necessary to accomplish their goals while other men worked at different jobs. And because a man’s time and talents are limited, while he is working at one job, he does not have the time and energy to do ANOTHER job. Hence, it appears likely that there would have been some sort of trading: i.e., “You give me ten tons of steel ore, and I’ll give you back a ton of refined steel.” Or, “you gather the fruit and vegetables I need to eat, and I’ll weave you a nice rug.” Or “I am good at making pots and you are good at making furniture, let’s swap.”

Hence even in a perfect world there would have to have been some men working at acquiring raw materials, some men able to fashion those materials into goods and services, and likely, some men who were able to market those goods and services (even in a perfect world, there needs to be some sort of distribution system where needs and assets are brought together). Furthermore, there would have had to have been some sort of accounting system once the community got much larger than just a few hundred people, just to keep track of who owed what to whom and when was payment due (even perfect men might not necessarily have perfect memories). And of course, the simplest accounting procedure is money. Money is simply a token that can be exchanged for goods and services. It is a reminder that you worked at a job that someone else needed doing, and as a result, he promised to help provide you with things that you need. Since the Genesis accounts mentions specifically that gold and precious stones were abundant around the Garden, it is not unreasonable to assume that these would have been appreciated not only for their aesthetic beauty, but also their durability as a medium of exchange.

Furthermore, inherent within the dominion mandate is the concept of “private property.” If man is to have dominion, it means to have control. Even in a perfect world without sinful selfishness; there can still be conflict; i.e., legitimate differences of goals and expectations. Someone has to decide what assets will be used in what way to accomplish SOME goals at the expense of others. Say for example there is an open field that would be well suited to become a luxurious garden. One man wants to plant flowers, another man wants to plant bushes and shrubs. Who decides? Sure, a compromise might be in order, but what if the nature of time, energy and resources is such that no compromise is possible? One man must give in to another? Hence the concept of private property is that as men moved OUT from the Garden, and tilled new soil, extending the Garden over the earth, the ones who settled first in a particular area would have priority over others who came later. In the same way, as men built cities and houses, even caring, compassionate and sharing individuals would have rights to the houses they built, the fields they plowed, the live-stock herds they managed (assuming that dairy products were lawful to consume, and wool lawfully gathered for cloth). Sure, godly men would have WANTED to share with others, but the principle of private ownership would still apply. If I GIVE you something that I made, I am implicitly stating that I own it and am transferring that ownership to you.

Therefore, in the Garden, before sin ever entered the world and corrupted men’s nature, it is reasonable to conclude that all the essential elements of a comprehensive economic system were innately inherent within the very nature of Creation; i.e., private property, procurement, production, marketing and some sort of accounting system. Thus we can arrive at a definition of “economics” as the organizing and exchange of skills, labor and raw materials to produce goods and services needed (or desired) by others. A “Biblical” economic system is therefore one whose mechanism, methods, priorities and goals are based on God’s unchanging principles. It cannot simply be a re-hash of pagan principles that has a few Scriptures verses attached here and there. To the contrary, it must be based on certain universal moral principles inherent in the character and nature of God.

Wealth Power and the Goal of Economics
Now that sin HAS entered the world, Men are now twisted towards evil and hence our economic systems are often fraught with covetousness, greed, envy, deception, etc., and the Law regulates all these factors. Since the Fall, the search for wealth, in and of itself is the quest for power; power denied us by the curse on the earth. Wealth is desirable because it gives us power over the environment and other men. The old adage “wealth won’t buy happiness” is true, but it sure will make misery more comfortable. Wealth allows you to protect yourself from the elements, eat better food, give your kids a better education, make your leisure time more enjoyable, etc. Furthermore, since wealth IS power (the more wealth you own, the more control you have over limited resources that others want), wealth provides wicked men a semblance of divinity; i.e., men want to be as “God” and wealth is a means of giving them that illusion.

Hence, ungodly men seek wealth to mitigate the effects of the Fall. All the Biblical warnings about the dangers of wealth need to be understood in the context that wicked men will attempt to use the labor of others for their own selfish ends to gain power and subsidize their rebellion against God. This is perhaps why Jesus said that rich men would find it so hard to enter the kingdom of Heaven and the Apostle Paul warns that the love of money is the root of all sorts of evil. Wicked men use wealth to insulate themselves from the worst effects of the curse, and therefore their hardened hearts are seldom broken so they can be brought to repentance.

Thus Christian economics begins FIRST by recognizing that God is Lord of Creation and the source of all wealth and prosperity. All that we have comes from His hands and we are stewards under His lawful reign. Therefore our primary goal is to glorify God in all our actions, including our economic ones. If we succeed in this, everything else falls into place. The Law and Proverbs both promise the godly man, who walks in humility towards God and obeys His precepts, material prosperity. There is no reason not to take God at face value on this. “Job” situations are “special” circumstances (much like New Testament saints living under oppressive, ungodly governments). Normally speaking, with exceptions duly noted, men, who work hard, develop their callings, give good service and do their labor as unto the Lord, will prosper. Granted, by taking short cuts, being deceptive, etc., a man MAY increase his short-term gains at the expense of his eternal state. But God also promises that such men will simply lay up their wealth for the righteous. We do not NEED wealth as a hedge against the Fall, for in Christ, all Heaven and earth are being renewed and we are to inherit it. God will take care of us, as long as we walk in His will.

Secondly, the Apostle Paul says, “If we have food and clothing, with these we will be content.” Thus Biblical economics does not seek wealth as an end in and of itself. We are to be content regardless of our situation. Instead the Christian ought to seek to be faithful to God and see wealth and prosperity come as a by-product. Happiness does not come by seeking it; it comes from being at peace with God and your fellow man. Men, who seek happiness, never find it. Therefore, we are to be content with food and covering (cf. Matt 7:24ff). Most secular economics are based on greed, envy and guilt (see R. J. Rushdoony’s fundamental work “Politics of Guilt and Pity” for an analysis of how ungodly men attempt to use economic motives for gaining ungodly power over others). Now, granted, a man who is skilled, and works diligently, tithes, helps the poor, spends wisely, saves for emergencies, etc., will most likely prosper with more than food or covering; but his contentment is independent of his economic status. Our orientation must always be the glory of God, not simply the acquisition of wealth.

Thirdly, if economics is about providing needed goods and services, and if the goal of Biblical economics is to glorify God, then it is not unreasonable to conclude that ultimately, economics is critical and central to the dominion mandate. Whoever controls the means of production in a society also controls the wealth of that society, and therefore the power of a society. If God promises to bless the faithful as they labor unto Him, then wealth and power will flow to Christians over time. Therefore Christian economics must be self-consciously dedicated to extending the reign of Christ over every area of life. Eventually, the glory of God will fill the earth, and Christians will own everything.

However, an old maxim is that “when you’re up to your neck in alligators, it’s hard to remember that your original intention was to drain the swamp.” Right now we live in unrighteous times filled with wickedness. Many Christians are struggling simply to provide a roof over their heads, feed and clothe their children and give them a decent Christian education. Hence, the goal of economic dominion may seem far removed from our day-to-day experience. Most of us today must work for other people, who use our time, energy, skills, life-experience, etc., for THEIR ends, not God’s. But time is on our side. We can improve the economic situation of each generation so that over many generations, like compound interest, we can see increasing freedom from the present economic system and we have God’s promise that wealth and power will, eventually flow to us. Think about this, a thousand years ago most our ancestors were little better than slaves. The worked from dawn till dusk, scrabbling to make a living, dying of old age in their forties. They lost most of their children to disease. But the with growth of the Kingdom, and the Puritan work ethic, over many, many generations we have achieved increasing wealth and economic freedom. And with that freedom, also comes greater opportunity to use our talents more directly for the advancement of the Kingdom.

Application: Some Practical Principles of Biblical Economics
First, private property is inherent within the dominion mandate (Gen 1:26ff). When a man works, he has an inalienable right to the fruit of his labor. Property is his to do with as he pleases under God. Marxist, socialists and some “Christian” humanists attempt to use guilt, pity, etc., to deny the right of private property and therefore want to give everything to the State hoping that it will become like Robin Hood, stealing from the rich and giving to the poor.. But God never allows the state this power, specifically warns His people of this danger (cf. Exodus, 2 Sam 11:1ff). The Christian man is a self-governed man and therefore does not need a tyranny in the church or the state to organize his affairs. He can be trusted to be charitable, gracious and he alone has the right before God to determine how he will use the fruits of his labors. If the Christian rebels against God and uses his property unlawfully, then God will judge him.

Secondly, debt on the personal, institutional and the State level is bad (Rms 13:6) and Christians should attempt to develop economic systems as free from debt as possible. Debt leads to slavery ( ), eats up profits (since a considerable portion of wealth must go back to paying off the money lender) and impoverishes future generations. Greed, covetous and a short-term focus are often the motivation behind debt based economic systems and the primary reason why so many economic systems fail. Economies collapse because they spend more than they can raise by taxes. They are afraid of raising taxes because they know that it will destroy the economy but at the same time, they PROMISE goods and services to people in order to get their vote. So they print inflationary money, they steal a man’s inheritance from his children; they borrow from foreign banks and bring themselves in slavery to their lenders. Instead, a Christian economic system will only spend what revenue it has and will depend upon free men, self-governed under God’s Law to live responsible lives. Men, who work hard and have incentives to save, create a capital basis for economic expansion that benefits every area of society.

Thirdly, in line with this, God does not give the State the right to steal a man’s money, just because it is the State. Theft is theft, no matter who the thief is. Granted, we are commanded to pay our taxes, but even the most oppressive dynasty in Bible history, ancient Egypt, only taxed their people 20%. Yet EVERY modern nation does so at LEAST twice that rate. If God only demands 10% of our income, what right has the State to require more? Therefore, in a Biblical economic system, the State will be kept lean and mean by lowered taxation. That means that they cannot always fund the kinds of programs that many modern states do. But is that so bad? Every dollar that the State steals from a man is another dollar less he can spend on ways that seem good to him. He therefore has little incentive to invest in new business, or even spend his money on consumer items that create jobs for others, etc.

However, notice this, a man enslaved to sin, soon enslaves himself to others, whether dictator, the socialist state, etc. The unregenerate man WANTS wealth and power but does not want to work for it. Therefore, in a democracy, where men elect their rulers, wicked men will chose other wicked men to rule over them who will promise wealth and power without having to work for it. Hence, politicians often become economic prostitutes, selling themselves for votes, promising ungodly men things they cannot possibly deliver just to get elected. This is why politics is NEVER the answer to social problems. God is in control and rewards and punishes according to His divine sovereignty. The key to transforming the economic system is transforming the people first. Hence, we need to train up pastors and create churches that will preach and teach the life-transforming power of the gospel and teach men how to live responsible, self-governed lives under God. When this happens, God rolls back the effects of the curse, blesses our labors and gives us social, political and economic freedom.

Fourthly, the laborer is worthy of his hire (1 Cor 9:9) and Biblical economic systems will allow free men to sell their labor at the market rate. Scripture says that the employer must not “muzzle the ox” but it does not then allow the State to determine what a fair market rate is! This distinction is crucial. There are duties and responsibilities that God gives some spheres of life that He does not give to others. Just because a man fails in one area, does not give another sphere the responsibility or right to jump in. When they do, tyranny is always the result.

Therefore a Christian economic system should allow workers to earn a fair and just wage but NOT THROUGH LEGISLATION! If Christians simply paid their workers an equitable wage in the past, then labor unions and anti-economics legislation (such as the minimum wage) that now threaten our economy would never have achieved the power they now have over us. Minimum wage laws ALWAYS hurts the least skilled workers because they raise the lowest wage beyond the limit that their labor is profitable. Hence, employers have to scale back their operations, and fire the lowest paid workers. This throws more people onto the dole and increases the tax burden for everyone. Instead, get the government OUT of the market place.

Fifthly, following this, a Christian economic system should allow goods and services to find their own value in the market place. Based on number one, a man owns a thing and ought to be able to sell it at any price he wants. If his price is too high, then he’ll lose business to other men who will sell lower. If there are no others selling the same goods and services, then others will soon join in, again lowering the price.

We have got to get it in our minds that profit is good. It is a means of showing someone that he is offering genuine goods and services that are of value to others. As a man makes a profit, he has incentive and reason to re-invest in offering even better goods and services at even better prices. Hence, over time, the value goes up while the price goes down. But if we hate and fear profits, we remove incentive for men to make their goods and services more efficient. Value remains low while prices remain high, and it is the poor who are hurt the worst.

Jesus said that we would always have poor people. Some people make bad decisions; they MUST be allowed to learn from their mistakes. Some people have bad things happen to them; Christian charity must come help alleviate the pain. But the government MUST stay out of the process or they create huge, revenue devouring bureaucratic monstrosities that only siphon off capital that could be put to productive use elsewhere. Let profit be the reward for providing goods and services, and MORE people will start offering the same goods and services at better prices. Everyone benefits when profit is appreciated.

Sixthly, in line with this, the best way to manage the economy is to get out of its way and let men work at their callings. God delegates authority to three distinct spheres; Family, Church and State. Each sphere has limited authority. Therefore, none should try to do what God has not called them to do. Thus many of the actions we require of the State today are godless and sinful because God never said they should do those things.

Therefore, let the State stay OUT of the market. The temptation to use economic forces to please the electorate and buy votes is a serious one. But it ALWAYS leads to disaster in the long run because no bureaucratic institution has the wisdom to know what goods and services are needed in what quantity. EVERY managed economy in the world has collapsed due to government interference. It ought to be the goal of the civil magistrate to protect business from thieves and thus create a climate that rewards hard work, industry and thrift. In that situation, the godly will flourish, the poor will be given opportunities and everyone flourishes economically.

Seventhly, a Biblical economic system will not subsidize irresponsibility, sloth and laziness. Scripture is clear; if a man will not work, neither let him eat. Siphoning off profits through high taxation to provide charity only encourages the slothful man to act as a parasite. Let the State get OUT of the charity business and allow Christian men to live self-governed lives and THEY WILL provide all the charitable needs of the nation. Christians built ALL the original schools, hospitals, orphanages, workhouses etc., until the State took them over. As a result of State intervention, poverty has now become institutionalized. Men must be made to be responsible by allowing them the dignity to accept the consequences of their actions. By freeing up tax money, one encourages businesses to expand, create more jobs, lift wages and allow free men to live their lives without the interference of the bureaucrat. EVERYONE, but especially the poorest segments of society, benefits when the State does not have to steal money to provide charity.

Eighthly, a Biblical economic system will honor the Lord’s Day (Exodus 20:8ff). Granted, some types of economic activities MUST operate on Sunday (such as certain industries, power generation, emergency services, etc.) In our modern economies, sometimes Christians will have to work on the Lord’s Day (as happened during the early years in the Roman Empire). But God demands a day or rest, we need it and so do our employees. Resting in the Lord and requiring the same in the civil realm IS a legitimate function of government. By keeping the Lord’s Day holy, we are placing our trust in God, not our own efforts for our wealth and prosperity.

Ninthly, while we don’t work just for pleasure, the Lord has given a land of good things. Therefore there is nothing wrong with men spending a portion of their wealth on the good things that God gives (e.g., Ecc 9:9). Work is NOT the only thing in life. There must be time for fellowship, relaxation and lawful pleasures. Granted, we work for the advancement of the Kingdom and the glory of God, but that same God also gave His people at least three different festivals and celebrations every year and commanded that a tenth of our income be reserved to enjoy the blessings He gives. Now granted, today most people want to spend ALL their money of pleasure and relaxation, but while we refute this error, let’s not make one on the opposite side. Therefore “luxury” taxes are ungodly. Let men spend their wealth on what they will.

Finally, the Godly man must be charitable and gracious. God demanded a second tithe in the Old Testament Law to be used for charitable endeavors. Widows, orphans, the handicapped, and the worthy poor are all part of our responsibility before God. Since God was charitable towards us, we MUST be charitable towards others. Schools, hospitals, orphanages, work programs, etc., are all to be funded out of the “poor” tithe. If Christians fulfilled their duties here, the State would never have had the opportunity to create the welfare state that impoverishes the nation. Therefore, as stewards under God, we must extend charity. There is no specific penal sanction authorized in Scripture for a man who refuses to be charitable, but God Himself promises to bring His own divine sanctions against those who do not tithe as well as His promise of blessing to those who do (cf. Mal 3:7ff).

Conclusion
The most common Christian objection to a free-market economy is the situation in Acts wherein no one claimed personal property and shared everything in common. Hence the myth of “Christian” socialism was born that continues to plague us to this day (remember, Marxism is a Christian heresy).

However, most people do not understand the underlying sociological dynamic of the Christian church in Jerusalem immediately after the Ascension. Jesus had clearly predicted that the city would be destroyed and warned all Christians to flee. Therefore all property in Jerusalem was already condemned and would eventually be worth nothing. Furthermore, the early church in Jerusalem was swamped by Christian converts from all over the world who did not have jobs in the local economy but wanted to stay and be taught before taking the gospel back to their homes. Therefore there was a great need for personal charity.

In effect, the early church used “insider trading” to sell property to unbelievers that would soon be worthless, in order to financially support needy Christians. This is not exactly the altruistic picture usually presented! It is significant that when Anninias and Saphira were condemned, Peter explicitly confirms their right to private property and to use it as they would. They died because they LIED to God and the church by saying they gave ALL the money from the property, rather than just a portion of it. Hence, the New Testament CONFIRMS the right to private property and profit.

What kind of a nation do you want to build; one that encourages hard work, thrift, charity, self-reliance? Or would you prefer a managed economy where the State runs everything, but ends up economically destroying the nation? True Biblical government is self-government. And a true Biblical economy is where free men trade their goods and services without let or hindrance from church or state.