Pages

Wednesday, September 29, 2010

God Economics: Is God a Capitalist?

The question we would like to consider today: Is God a Capitalist? Let's see. A working definition (from Wiki) says Capitalism is: "....an economic system in which the means of production are privately owned; supply, demand, price, distribution and investments are determined mainly by private decisions in the free market, rather than by the state through central economic planning or through democratic planning; profit is distributed to owners who invest in businesses and wages are paid to workers employed by businesses." The short answer is: Yes.

The longer answer comes from personal experience. You see, I had ten oak trees in the yard of my old house. Not as many as some of my neighbors, but enough to create a fair amount of work for me every fall. Besides having to deal with leaves, I wound up with piles of acorns. Every spring thousands of little trees would begin to sprout-their new greenery looking very much like poison oak. Squirrels loved my yeard. I have since found out that acorns contain high quality protein and are a favorite of deer as well. Bugs of various kinds will also devour them and microscopic creatures supervise their final demise.

Why am I talking about oak trees? Because they are profit-making entities. Oh, they do not have to balance their books every year. Their 'profits' are measured in the wealth of nutrition they create and disseminate to creatures great and small in the forest. If we take a look at the above definition we will find elements of capitalism, the trees are not owned by anyone, or regulated by any agency, yet their fruit is distributed around by the actions of animals. Squirrels, for example make off with acorns and bury them, some of which become trees, others will be eaten or simply decay. The fallen leaves ultimately become part of the soil too. This is part of a natural free market system that works remarkably well.

Nature was designed to work that way. A quick look at the first chapter of Genesis will uncover phrases like, 'trees bearing fruit', 'grass bearing fruit', along with descriptie terms like the waters 'swarm (or teem) with living creatures'. God sums up His creative acts with a command: "Be fruitful and multiply." And they do. Every living thing in this world produces far more than it needs to survive. The excess of that process, (profit) is beneficial to other creatures in the ecosystem. God did not make anything with just enough resources to reproduce and that's it. He places His own stamp of approval on His Creation: "God saw that it was good."

Who was put in charge of this activity? No one. Each living thing belongs to itself and simply does what it was designed to do. This is a great model for the highest form of life - us. When people are allowed to be free and live, they create and exchange things of value.

There are a couple of lessons that our current politicians would do well to learn. The most important is that profits are good things. The reason is because rich business people do not stuff their mattresses with money. (Well, some are doing that right now.) What happens to the profits? They are turned around and used to build nice homes, buy good cars and start new enterprises. Many people benefit from these expendetures. Rather than criticizing the rich as many liberal/progressive types do, they should be happy. The more rich people the better! Why don't we try and make everyone rich? Wouldn't that be cool. The other factor is that governments cannot and do not create things of value or jobs. Rather they restrict economic growth by taxation and excessive regulation. Studies show that every 1% increase in taxation reduces economic growth by 2-3%. The most obvious way to stimulate the economy would be a reduction in taxes. This is the exact opposite of what they have done in the last couple of years. And our country is soon going to be hit with not one, but two tax increases that will affect every American.

Unfortunately this wrong headed approach seems to be the norm in national politics. It would be far better to have representatives who understand these two simple truths and will take the steps necessary to engender growth rather than hinder it.