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

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