Monday, December 31, 2012

Economy: A Basic Introduction to Property

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As we look at what the new business opportunities for 2013 will be, everyone that I know has been assessing what happened in 2012.  We can traverse several hundred different combinations of core business fundamentals from the ability to raise cash and shifts in sales numbers to the great uncertainties of political, monetary and even judicial policy.  Most often this is all summed up in: How did the economy affect business in 2012 and what can we look for in the economy for 2013?  Everyone is focused on ‘the market’ and generalize ‘economy.’
In my opinion, the greatest question has not been asked in 50 years:  What is happening to personal property and Liberties for the sake of economy and security?  In this posting I’ll focus on Property.

Many may chuckle at this fundamental question but it has its roots not only in what the Founders of this Republic set as a baseline and it is a very significant Biblical principle that reaches into the essence of how and why business can establish ownership, capital and gains its ability to function.  No, I’m not proposing to go through the entire historical list economic theorist from Adam Smith to the present. Nor am I going to take you into the exhaustive works that give credence to Biblical principles of business economics.  As you may know most, if not the entire historical list of economist would never approach the subject of business or economy from a direct Biblical point of view.  They all used fundamental observations, mathematics and their own best guesses – hence “economic theory.” Their work has value yet it does not look at the core Principles that Christian businesses can understand as God’s economic truths

The real issue is that government in general has shifted from one of its first responsibilities - Protecting Property - to confiscating it through regulation and taxation.  As James Madison said:
"Government is instituted to protect property of every sort.... This being the end of government, that alone is not a just government, ... nor is property secure under it, where the property which a man has in his personal safety and personal liberty is violated by arbitrary seizures of one class of citizens for the service of the rest."

Property is also critical to the economy as noted by Ludwig von Mises in his book “Socialism” written in 1951:
"If history could prove and teach us anything, it would be the private ownership of the means of production as a necessary requisite of civilization and material well-being. All civilizations have up to now been based on private property. Only nations committed to the principle of private property have risen above penury and produced science, art, and literature. There is no experience to show that any other social system could provide mankind with any of the achievements of civilization."

We need to understand a generalized Biblical perspective on ‘Property’ that begins with comments by Dr. Gary North, a true Biblical Economist, in his analysis of Exodus:
“God’s claim is comprehensive. He possesses absolute property rights to every atom of the universe. He created it, and He owns it. He, unlike man, does not operate in terms of a definition of ownership that requires the right and ability of an owner to disown the property at his discretion. His ownership is original. No other being is absolutely sovereign, so therefore no other being can claim original, uncontested rights to any aspect of the creation. No other being owns any economic asset that he did not receive from God.”[1] 

I have to confess, that I believe that many Christian businesspersons and business/economic/political leaders in particular are either not fully aware of or forget this First Principle of “Property Ownership.” Continuing with how God has given ‘Dominion’ and demands ‘Stewardship’ through, especially, those who are called His People:
“All property is held by means of a transfer of rights from God to the new owner. It is held in terms of a covenant…
“…To challenge the legitimacy of God’s delegated sovereignty of private ownership of the means of production is to challenge the doctrine of the original sovereignty of God.  Socialism is therefore an innately demonic and evil doctrine.”[2]
So let’s really take leap off the cliff of faith with the idea that the Eighth and Tenth Commandments address Property Rights as well.  We expect that those in business and who set policy for the success of business in a culture would have an inherent view of these two fundamentals of society: Not to steal and Not to Covet.  Yet much of the States and Federal policies violate the essence of these Commandments. Here are a couple points with what Dr. North enlightens us in this regard:
Considering the 8th Commandment – “The eighth commandment protects private property. This is a fundamental aspect of dominion. The third commandment prohibits using the Lord’s name in vain. This commandment prohibits any interference with another man’s tools of dominion (his capital goods), and it also protects the fruits of his labor, consumer goods. Just as a deceiver deliberately misuses God’s name in order to gain people’s trust, so does a thief appropriate wealth that was produced by the owner, or bought by the owner, or lawfully inherited by the owner… Both the deceiver and the thief seek to escape the limits God has placed on them. Both seek power without covenantal faithfulness to the laws of God.[3]
Considering the 10th Commandment – “Coveting another person’s goods is to covet the inheritance he will leave to his children. This also prohibits a premature coveting of parents’ wealth by the children. Coveting is the first step to theft (eighth commandment)… Coveting is a denial of the ninth commandment, too: an implicit assertion of the illegitimacy of the present legal order which establishes the owner’s rights to his property and his children’s legal rights of inheritance. Evil men are tempted to misuse the courts to achieve their goals… In effect, the covetous person regards himself as the true heir to his neighbor’s patrimony. He wishes to dispossess the lawful heirs. He plots against history—the history which led to his neighbor’s position and goods—in the name of his own autonomy.”[4]

With the tip of the iceberg being noted about a Biblical and historic view of ‘Property’ to this point, we have to consider what is happening in real time with public policy, from the federal government in particular, such as: EPA regulations, taxation, union activity, mandatory nationalized healthcare and other legislation that are an affront to the common sense of good business operating principles but are a very strong affront to Biblical business processes. But, you retort, I didn’t know that there are identifiable principles and practices in the Bible for business operations!
Over the course of 2013, we will continue to unfold more of what these ‘Principles’ and ‘practices’ are so that those who want to understand that God owns all resources in creation and does reveal truths for action, will have these resources made available to them as the business environment continues to be directed by those that don’t understand what God has to say about Kingdom Principles for Business.


[1] Authority and Dominion: Volume I, Part 1, Original Ownership (Ex. 9:2930), pg. 120
[2] Ibid, pg. 122
[3] Authority and Dominion: Volume II, Part 2, Preface, pg. xxv
[4] Authority and Dominion: Volume II, Part 2, Preface, pg. xxvi

Thursday, December 13, 2012

Labor, Liberty and Modern Slavery


We are hearing the crowd of strong union supporters gathered in Michigan yelling that, “we are what democracy is all about.” And then you see violence break out.  This is because these minions are acting according to the definition of actions that occur in a democracy – violent anarchy.  They have lost the reality of the Truth – The United States is a Constitutional Republic. 

The concepts of Labor and Liberty are deeply and Biblically inter-related and for me to present a perspective, a Biblical perspective, will require more than the five hundred to a thousand words that a blog should be managed at.  With that and because I live by the Axiom of Ecclesiastes 1:9 & 10 –
9.  The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.
10.  Is there any thing whereof it may be said, See, this is new? it hath been already of old time, which was before us.
I will defer shortly to an article written in 1978 and published again in 1987 that summarizes what I would have written here in detail.  When one studies the history of economics, which is mostly humanistic in its philosophical perspective, one sees that even those sympathetic to socialism were wary of Unions and the destructive results they could have to a business, the economy and even the government.

The first area to address in this discussion is that of a persons talents and associated ability to engage in labor - is a ‘gift’ from God and is granted as ones personal property such that each individual is responsible for the sovereign use of this gifting.  The reality that mankind, for the most part, does not recognize that we are not the final authority in the universe and that we are to be stewards over our talents, resources as well as the rest of the world as God’s agents on earth.  As representative agents we have the rights to that which is granted by Grace.  No other person has a right to take what is rightfully ours. Only by some agreeable means of negotiated exchange can the ownership of property be transferred from one person to another.  Hence, what we produce or what we develop as a business owner is the property of the individual or business.  If the businessperson needs other skilled individuals to participate in the production of a product or service then they must find an agreeable exchange for the skills to accomplish the businesses objective.

In essence, the two parties contract for the mutual benefit of accomplishing the businesses objective but that does not mean that the value of that contract is in any manner equal.  The reality is that the businessperson is taking the risk to establish the business, commit to and invest the capital, bring forth the intellectual property ideas and ensures that all the underlying cost are covered, etc.  For this risk they should be and must be compensated at the highest percentage of the income from the product or service otherwise they have no incentive to take all the risk.  On the other hand, the person that is contracted to contribute their skill to the product or service can always go somewhere else and engage again in a contract with a competitor or another business that would contract for their skills.

Yet as we will see in the article linked here, “The Morals and Economics of Labor Unions” the modern unions act, especially from the leadership management perspective, as a coercive collection of class warfare bigots.  The union members are modern day slaves by virtue of mandatory dues and threats of job loss and the companies that are unionized are slaves to the threat of strikes or other retaliations in the market.  The statistics are compelling and overwhelming as to the transition of useful trade guilds, both public and private sector, into political Thugs that negatively affect the overall economy.

The legislative actions being taken in states like Michigan are not removing the opportunity of true negotiations for those that want to be represented in a group like a union.  The legislation is returning the ‘freedom’ of individuals to be removed from the modern day slavery of coercion and regaining their right of association and contracting for the skills they bring to a free market, even as employees of the public as a ‘public servant’.

Well, I confess that there have been great minds that have come before me who can articulate what I’ve studied in a very affective way.  So I will ask pastors, church leaders and yes, congregants to read the article by the Rev. Francis Mahaffy written in 1978 and published again in the 1987 ‘s - ‘Bible Economics Today’ Vol. X, No. 6 .  Rev. Mahaffy knew his economic history and related it effectively to what every Christian should and Must understand regarding labor unions even in the 21st Century.  Please read the pdf available at http://www.garynorth.com/freebooks/docs/2976_43e.htm

Sunday, December 9, 2012

What Happened Along the Way?

Amazing things happen when one sets out to focus on the Father's perspective on how to live a complete Kingdom life in the present.  I began the journey to bring a self study of Kingdom Principles to Business and discern something about Biblical Economics.  It continues to be obvious to me that although one says they are a believer in the Living King Jesus, the idea of His Sovereignty in business dealings more often than not, rarely reflected in how a business actually operates.

Based on the premise that I initiated in the opening blog posting, I have journeyed to find out who has approached these topics before and if they did so from the perspective of the First Principles of historic Biblical truth.  Well, it has been exactly three years since I did the first post and what I learned is amazing.  Absolutely for a fact Ecclesiastes 1:9 & 10 says it all very well, "
9. The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.
10. Is there any thing whereof it may be said, See, this is new? it hath been already of old time, which was before us.
Our only problem is that we do not seek what has been said and remember those truths that God has fully and simply revealed in His Word and through those who searched the truths before us.

All of this being said, I have found one of the best studies on Biblical Economics that my several years of research has lead me through.  I highly recommend Dr. Gary North and his full series on this vast study of Biblical truths and how it relates to the core Principles that we business leaders need to evaluate and take to heart if - we desire to live Kingdom Principles in all we do.

Does God give insight as to how we should run our businesses?  You bet he does!  To the extent that the book I wrote "Life Lesson's Learned in Small and Medium Business" is being rewritten to include sections I learned from our Puritan Founders:
  • Foundational Biblical View of Business Ethics
  • Fair Wages - The Employee - trading personal property of work for an agreed wage
  • Responsibility of the Boss
  • Business Frugality
  • Rational use of Time and Resources
  • Systematic Accounting
  • Personal Responsibility - tied to Business Ethics
  • and a Future oriented View of the world.
I believe that there has been so much humanism and political correctness weaved into every organizational endeavor that those that have a Kingdom orientation are going to have to stand taller, speak louder and hold to Foundational Principles at all cost.  Oh... that's what happened... Counting the cost to hold to Principles?  But... but... I may lose my position in a fortune 500 company; I may lose a customer; I may not get that contract.. I may not... suffer the cost to stand on Kingdom Principles.

It is a possibility that this may not be a popular blog or the additional sections in the book will flop, but in this three year journey I have become determined that I will stand and fight for Kingdom Principles according to the Grace of God and be a person that will do what He has given us to do "Have Dominion".

I do hope that you will join me as we find out what else happened along the way.




Sunday, December 20, 2009

Why Start this Blog

I have been having this sense for a long time; that I needed to chime in on the realities of what affects the totality of our lives.  In considering all the activities in life, business is one of the primary activities of negotiating the transfer of goods and services between individuals and groups.  From this premise, the next important aspects that needs to be understood is what defines moral law.   In the scope of human history, the most resounding and longest lasting quantifier of moral law is in the Pentateuch (Torah).  In the full analysis, the combination of the whole Old Testament establishes much of how to establish and manage commerce.

Then, for those of us who are followers of Jesus of Nazareth, we now have the compilation of Kingdom influence in mankind which is extensibe from the personal interaction with a King to those aspects of all of life including business.  Think about this for a moment; Jesus was raised in the family business, that of a carpenter.  He fully understood commerce, customer service, pricing and financial management.  He did not expound on these particulars in his ministry years except that every principle that he spoke of in his teachings transend every aspect of life.  He cleary understood the Old Testatment teachings which set the foundation for how he conducted his life, including his business life prior to his final three years of ministry.

Therefore, since Jesus is the King of Kings, that means he manages a Kingdom.  We will discuss this more in this blog in due time.  For the moment, consider that He was presenent and involved in the revelation of the Old Testament so He developed the principles by which the Sons of Abraham would live and conduct every aspect of life, including business.  Knowing this, Jesus conducted His business affairs from a Kingdom perspective.

I will continue to develop the fundamental of Kingdom Principles For Business that deal with all that affects business activities including government policy and what is now considered economics.  I personally make every effort to live by these principles and hope that this discussion helps me to learn more and challenges you to gain greater understanding of these life principles.