Updated: 3/11/20
But seek first his kingdom and his righteousness and all these things will be given to you (Matthew 6:33).Jesus made it clear in Matthew 6 that there is an irreconcilable conflict between the kingdom of God and the kingdom of mammon, which can also be translated as the kingdom of wealth. “No one can serve two masters, for either he will hate the one and love the other, or else he will be devoted to one and despise the other. You cannot serve God and wealth” (Matthew 6:24). It is an either/or decision. [North, Matthew, ch. 14]
Humanistic economics, beginning with the British mercantilists in the late seventeenth century, developed economic theory in terms of the pursuit of wealth. Their concern was the expansion of national wealth, which really meant the development of a large gold hoard owned by the state. They saw national wealth in terms of an expansion of wealth controlled by the state. Adam Smith approached economic theory from a different standpoint. He denied the effectiveness of state intervention in improving a national economy. He saw free trade in the broadest sense as the source of national wealth. But he was still concerned with the theoretical principles of the development of wealth. He said so in his title: An Inquiry into the Nature and Causes of the Wealth of Nations (1776). This was not true of his other book, The Theory of Moral Sentiments (1759). That book has had zero influence in the development of economic theory. Therefore, Christian economists must make a self-conscious break with the tradition of Adam Smith. Smith’s vision was a vision of mammon. This is why humanistic economics must be reconstructed in terms of biblical principles. That is what my work has been about for over half a century.
In Part 3, I discussed 31 major applications of humanistic economic theory. I discussed them from the point of view of the presuppositions and methodologies of biblical scholarship, as I understand them. These 31 chapters represent a reconstruction of economic theory. So do the chapters in Volume 2 of this book: Teacher’s Edition.
In Part 4, I discuss seven issues that have long been ignored by humanistic economists. They are issues that are perceived by humanists as exclusively Christian, and therefore not relevant to the development of universal economic theory. They are peculiarities of Christian economic thinking. Economists would be willing to acknowledge that these issues may be relevant to Christians as personal moral guidelines, but they do not believe that these issues are universal in human affairs. They do not believe that all societies are governed by a sovereign God who has announced certain laws of ethics that are binding on all humanity. They do not believe in such a God.
The seven topics that I have selected are basic to a correct understanding of Christian economics. Some of these topics are familiar to most Christians: kingdoms in conflict, the Lord’s day, the tithe, and charity. Others are less familiar: contentment, the calling, and the bride price. I present them here because all of them are part of the body of Christian economic theory. But they are also important for Christians in their understanding of their personal obligations in a world that is governed by God’s laws. Honoring these principles is basic to long-term success, both individualistically and corporately in the sense of God’s kingdom. God’s kingdom has multiple institutions, and these principles apply to all of these institutions. These institutions are basic to all of society, but humanistic social theorists do not discuss theoretical cause-and-effect in these institutions in terms of the Bible’s revelation of cause-and-effect in history. Humanists assert that they are investigating such matters from a completely neutral standpoint, but they are not. There is no such thing as epistemological and ethical neutrality when discussing God’s revelation of causation in human affairs. I have explained why in Part 1.
The seven topics that I cover in this section do have applications in every society. Each society will handle these issues in a different way. But you will not find societies that do not deal with these topics in both theory and practice. For example, we find no society that does not have holidays of some sort. They may not recognize one day in seven as being a rest day, but they acknowledge the principle that mankind needs rest on a regular basis. Modern society, at least in the West, asserts that there are two days of rest per week. In every society we find systems of charity. We find ways of dealing with discontent. Humanistic economic theory does not discuss these issues as separate categories. Economists do not believe that these categories should be considered as theoretically binding in the way that the law of supply and demand is binding. They do not believe that the success or failure of societies are in any way determined by laws governing these topics. They do not believe in such laws. They are willing to discuss the economic outcomes of the various ways that various societies honor these topics, but they believe that the laws of economic analysis govern the outcomes of these practices. They do not see these practices as possessing authority equal to the categories of humanistic economic theory. They do not believe that there is a right way or the wrong way to honor these requirements. They do not believe that economic success and failure are determined by the ways in which societies honor these requirements. They do not see them as requirements.
Christians should regard these seven topics as integral to any understanding of Christian economics as a separate academic inquiry. They should not regard these topics as peripheral to economic theory. That is because these topics are not peripheral to economic practice. If God requires something, Christians would be wise to develop a theoretical understanding of why God requires something, and why obedience to God’s requirement has predictable outcomes: positive sanctions. Economic theory is a theory of cause-and-effect in history, and effects are sanctions. If there were no sanctions, there would be no such thing as social theory. If there were no explicitly biblical sanctions, there would be no such thing as Christian social theory. Economic theory has the most explicitly developed theory of cause-and-effect in social theory. So, Christian economic theory must deal with cause-and-effect in history. Part 4 is about causation.
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The full manuscript is posted here: https://www.garynorth.com/public/department196.cfm
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