Just what does the Bible say about the rich … the poor … about wealth distribution … how things will be when Jesus Christ restores all things (Acts 3:21)? Quite a bit. In fact, as much as 40% of the Bible is said to deal with these and related topics. Most wonderfully, the Bible concerns itself primarily with the captives and the poor, whether in spirit or physically. In this 3-part series, our aim is to show just how wonderfully God has aligned the physical creation with his heavenly kingdom and work of salvation. Should His requirements of love, mercy and forgiveness not be practiced, the societies of mankind are designed to malfunction and self-destruct.

We will begin by first consulting the Bible for its perspectives on these topics. In Part II, we will then explore God’s ideal plan for economic justice on earth—a program that will be reinstituted in the Millennium period. Part III reflects upon the wonderful blessings of “cancellation” and “forgiveness.” As we will discover, these concepts are necessary for both eternal salvation and the blessed existence of mankind during his temporal, physical, existence on earth.

The Poor and the Rich

Every time we risk writing about Biblical perspectives on wealth and its distribution, we seem to invite incendiary responses. Quoting Robert E. Lucas, “Of the tendencies that are harmful to sound economics, the most seductive, and … the most poisonous, is to focus on questions of distribution.”1 We would agree. Even my background as a practitioner in the “Darwinian” world of the global investment industry, has not spared me from being accused a Marxist.

Therefore, let’s settle this point right at the outset. We are here more interested in the Bible’s view on these questions of wealth, the poor, forgiveness and God’s desired economy for mankind, not the secular theories of man. As it is, the field of economics and its myriad theories (which is a subject body that belongs to the humanities, not science) has yet to settle on a unanimous view. It should also be recognized that this field of “non-sciences” has had a terrible, terrible track record.

Moreover, populist views and policies on these matters tend to change with the times and zeitgeist. For example, in Americatoday, to speak of wealth redistribution from the rich to the poor would be economic heresy. According to the thinking in higher-echelon political circles, the rich must be protected. In short, aren’t they the ones that provide the capital that provides jobs and incomes for everyone else? Therefore, the right and privilege to achieve huge outsized after-tax incomes and wealth must be preserved. At least, that is the reasoning that is prevalent in the halls of power.

However, let’s get back to the Biblical view and put these things into proper focus. It is not so much that specific tenets of capitalist theories about wealth creation and distribution are dead wrong. It is that their implementation does not always emphasize fairness, compassion and love. Don’t believe it? If that were not the case, one would need to wonder why the Holy Spirit went to the trouble of inspiring the Bible. Its central message would be obviated.

As the Bible repeatedly shows, God chooses to observe the motives of the heart rather than the punctilious observance of ritual or theory. “For I desire mercy, not sacrifice, and acknowledgment of God rather than burnt offerings” (Hosea 6:6, see also Matthew 12:7, 9:13). Through Micah, God admonished the Jews, saying, “He has showed you, O man, what is good. And what does the LORD require of you? To act justly and to love mercy and to walk humbly with your God” (Micah 6:8).

The same message is found in the New Testament. Even the gospel cannot be operative without love and mercy. “If I speak in the tongues of men and of angels, but have not love, I am only a resounding gong or a clanging cymbal. If I have the gift of prophecy and can fathom all mysteries and all knowledge, and if I have a faith that can move mountains, but have not love, I am nothing. If I give all I possess to the poor and surrender my body to the flames, but have not love, I gain nothing” (1 Corinthians 13:1-3).

People may have great “head” knowledge of Scriptures or elegant economic theories about wealth creation and prosperity. However, it is all insignificant noise if its implementation (putting into practice) does not involve love. The two Royal Laws, which Christ said encompassed all the Law and the Prophets (Matthew 22:40), were best summarized by the law expert mentioned in Luke 10:27: “‘Love the Lord your God with all your heart and with all your soul and with all your strength and with all your mind’; and, ‘love your neighbor as yourself.’”

The very last days of the Church Era—the terrible times that Paul talks of—are described as being “without love,” “unforgiving,” instead characterized by the love of money and love of themselves (2 Timothy 3:2-3). That exactly describes the attitudes required to underpin an environment of economic oppression, high indebtedness and widening wealth skews. That day is here today. If anything (by at least some measures), these conditions are likely to get worse … and most certainly, much worse by the time the Tribulation unfolds.

The Bible Versus Political Polemics

Using such terms as “Marxism” or “Capitalism” is not helpful in discussing what the Bible actually says and mandates vis-à-vis wealth. Neither “ism” is supported in the Bible. (In fact, the Bible supports no “isms” of mankind.) Actually, the Scriptures and ancient wisdom precede these man-made theories by several millennia. To the extent that Karl Marx might have theorized some of the flaws of capitalism (as does the Bible), this did not qualify him as a godly man. Much to the contrary. His seminal failings were that he did not operate out of a spirit of love (more likely envy) nor a fear of God. Likewise, any rich person or proponent of capitalism would not be sinfully wrong, were they inspired by a sense of justice or love for fellow mankind. Without love and mercy, the ultimate consequence of even the best theory and doctrine will be destructive.

The essential points and attitudes to which we must orient ourselves in relation to wealth and physical possessions are found in the Bible. These were established long before Adam Smith or Karl Marx came along. To emphasize, Biblical “wealth theory” cannot be disassociated from love and justice, and has no union with concepts of “self-interest” (Adam Smith and later concepts of the “good” of capitalism or affluence); nor associations with “envy” nor covetousness; and more lately, the “good of greed.”

Why Are There Poor?

Wasn’t Abraham, the Biblical patriarch, wealthy? This observation is often made in the defense of the rich. It completely misses the point. To be “relatively” or “absolutely” wealthy is not a sin (though it is also true that very few are capable of justly managing wealth). The Bible does not condemn the state of being rich; it rather indicts the elite rich that oppress their fellow mankind and take no concern for the poor.

Without a doubt, there were numerous wealthy individuals mentioned in the Old Testament. But, what conclusions should we draw from this observation? First, we need to draw a distinction between those rich that were righteous and those that were not. We have already drawn attention to the critical differentiation—love, mercy and justice. However, let’s also consider some practical aspects. Who would not agree that it is impossible for everyone in the world to be as rich as Abraham, in relative terms. This is simply not physically possible. Nor does the Bible ever promise that everyone can be “rich” (as do today’s popular and widespread [false] Prosperity Gospel teachers).

The Bible draws a distinction between the state of being wealthy and that of “hoarding.” These are not one and the same concepts. It is a mathematically-supportable fact that hoarding must result in a wealth distribution skew … in other words, a relative division in wealth or standard of living. In fact, such is the very definition of hoarding. As outlined in James 5:1-6, wealth is described as having been “heaped” or “amassed,” which is implied by the Greek word saurizo. This is an important distinction, as it gives evidence of a wealth skew. Wealth cannot be heaped and concentrated without there being a lessening or deprivation of someone else’s relative wealth. The impulse for this effect may be unintentional, sin or conspiracy. At the very least, we must not forget the innate vulnerability of all human flesh. Everything else being equal, the “love of money” (1 Timothy 6:10), “the lust of the flesh” (1 John 2:16), and all mankind being born into sin testify to the corruptible bias of the world. Just who is uncorruptible?

It is no surprise therefore that almost the entire emphasis of the Bible in relation to the poor is to their defense. But why should this be? Just why is it necessary for the Bible to counsel special aid and care for the poor? While there are godly people mentioned in the Bible who were wealthy, just why is it that the “rich” attract so little favorable mention in the Scriptures? The answer: the same reason that mankind needs salvation and forgiveness of sins. Therefore, what the Bible does consistently concern itself with are the poor and the oppressed, both physically and in spirit.

Moses said to the Hebrews, “There should be no poor among you” (Deuteronomy 15:4), this being a command from God. Jesus said that he came to preach good news to the poor. (“The Spirit of the Lord is on me, because he has anointed me to preach good news to the poor. He has sent me to proclaim freedom for the prisoners and recovery of sight for the blind, to release the oppressed”—Luke 4:18.) He also said: “You will always have the poor among you” (John 12:8), pointing out the unfortunate state of a fallen world.

God’s Plan for Fair Dealing with Wealth

A thorough study of the economic principles within the God-given laws to the Israelites of the Sabbath and the Jubilee Year reveals the intended “wealth distribution” that God had planned upon earth. It is not unreasonable to take instruction from these commanded ordinances of the Israelites as, after all, they were called to be a light to the world (Isaiah 42:6, 49:6).

But aren’t ancient laws and principles irrelevant today? No. Consider that God himself will again reinstitute these two Sabbath ordinances in the Millennium period. Think of it: when Jesus Christ restores all things (Acts 3:21), the Sabbath and Jubilee years will be practiced by the entire earth. Civil leaders today would then do well if they sought to pursue the same principles behind these two ordinances. Then, just what are these principles? We next need to examine the Bible’s teachings about the Sabbath and Jubilee Years.

Of course, the Sabbath finds its original roots at Creation. God rested on the 7th day. The entire earth was to rest on this day. Ever since, all developed cultures—whether Asian, Western or otherwise—have operated on a seven-day, weekly cycle. Later, the Sabbath Law was given to the Hebrews. However, this occurred in several stages, as we will review in Part II.

As a brief foretaste, considered what God said through Moses, “At the end of every seven years you must cancel debts” (Deuteronomy 15:1). As such, we see that a seven-year debt cycle was instituted. There was no such thing as perpetual debt: every Sabbath Year, debts had to be laid flat. Anyone who could not pay back his debts by that time was forgiven this amount. We can imagine just how different our economies would be today were this same convention applied.

Points to Ponder—The Circaseptan Cycle

The seven-day cycle, ending with the day of rest, is evidenced by all of Creation. Here is an excerpt from an excellent article on this subject, written by Kenneth Westby, entitled “The Amazing 7-Day Cycle.”2

Now we discover that the beat all life is tuned to is seven.

How did seven come to be imbedded deep into the ancient genetic building blocks of life? Why is seven the key coordinating rhythm for life’s myriad complexities?

God did ‘wind up the clockwork’ leaving his fingerprints all over the clock. The new science of chronobiology has had some of science’s most impressive successes in seeing back to creation with its discovery of ‘primitive origins’ to the seven-day cycle found in human cells and other life forms.

God somehow coded into the infinite complexities of life a clock that ticks to the time of a seven-day rhythm. We humans have no control over these innate circaseptan rhythms and benefit best by simply living in sympathetic harmony with them. More importantly, the seven-day cycle in physical nature points beyond temporal reality to a far greater spiritual reality.

God, with masterful design, uses time itself and a seventh day rest to call his creation to pause and listen. He has a message which explains why we were created and for what special purpose. His words are so majestic, so exciting, so unbelievable, so beyond our mundane world that they could only be comprehended as coming from God himself. His message dispels ignorance, solves life’s grand mysteries, and offers a future too beautiful to be true.

His personal message introduces himself as our creator, he gives us dignity and a special relationship to himself by declaring we have been made in his image, he then offers to save us into an eternity with him—if we but follow him. He invites us to join him on his journey, to walk with him, to talk with him, to learn from him, to even rule with him. How could we refuse such an invitation?

The mystery of the seven-day cycle was never intended to be a mystery, but a call from the Creator to get in harmony, in sync, with him. It is high time we get in step with God.

In Part II and Part III, we will focus on God’s perfect plan for economic justice and the great gifts of “forgiveness” and “cancellation.”
1           Robert E. Lucas, “The Industrial Revolutions: Past and Future” (2004)
2           http://www.godward.org/archives/Special%20Articles/7-Day%20Cycle.htm

More and more economists, policymakers and investors are becoming ever more certain that the good times are here again. Not even the crises in Japan, the Middle East, Europe and China can quell the prevailing mood of resolute complacency. Apparently, the effects of the Global Financial Crisis (GFC) are long past. However, this couldn’t be further from the truth. The soothsayers are unable to discern cause from effect; artifice from reality; wisdom from folly. Time will judge today’s policymakers and opinion leaders.

The stark reality is really this: Conditions are not getting better, Actually, the long-term outlook is becoming darker. The Global Financial Crisis is not over; only shifting and morphing into new forms. An unprecedented mix of factors is playing out at present around the world (geopolitically, socially, economically and financially). Whether these factors may be disastrous or not, they surely do not warrant an attitude of complacency.

One key difference is that a “balance sheet depression” is unfolding inAmerica and several other countries … though admittedly in fits and spats. What is meant by this term is the phenomenon whereby falling asset values (i.e. residential and commercial real estate) and high debt levels collide, causing debt levels to be reduced (either through default or repayment). These are usually long-running adjustments requiring many years to complete at best, provided that governments and monetary authorities do not interfere in this essential process.

Just where do we see debt levels declining today? Actually, policymakers are doing their dastardly best to frustrate responsible debt loads. By slashing interest rates to near-zero levels they frustrate savers, making debt even cheaper (provided lenders are willing to lend and that the borrower’s credit rating qualifies). Secondly, governments have turned to massive and unprecedented borrowing, so to counteract the decline in consumer confidence and spending. All in all, seen in the aggregate, debt levels are not declining. Overall debt levels are still rising as increases in government and corporate borrowing are out-running the debt decline in the household sector. This is what is playing out in many nations (certainly the U.S., the UK and perhaps soon such nations as Spain and others).

In the meantime, the average household continues to be squeezed. Income growth remains low, unemployment extremely high, house prices are still falling, and the cost of living rising. After adjusting for the effects of inflation—this including the impact of rising food and energy prices—the average American household is now experiencing negative “real” income growth. And, even as property prices have declined by a third since 2006, property taxes have risen by 27%. Yet, Wall Street economists are more confident than ever since the GFC struck, that a “solid” recovery is underway. Financial markets have again become frothy, as financial speculation is being encouraged by policymakers who believe that a “wealth effect” will help to get economies rolling again.

The strangest spectre to observe—tempting rational people to apoplexy—is that apparently very few policymakers and economists seem to have learned any lessons over the past several years. The very same conditions that led to the big financial bubble burst in the first place—overpriced houses, mispriced asset-backed paper, speculative financial and commodity markets, carry-trade lending, high borrowing and debt levels … etc. — are now being promoted in the hope of reigniting the financial good times (i.e. bubble).

Do they really think that these policies will somehow not lead to yet another crisis? It certainly will. Of course, this is known, and therefore reveals the deep corruption at work. The intent is to perpetuate what is unsustainable (this evidencing dishonesty) for a while longer, pushing off the inevitable costs to others in the future. We can indeed expect a much bigger crisis … and possibly very soon! (No doubt, we will then experience the usual clamour for our books. But unfortunately, much too late!)

All of this folly reminds us of several Bible accounts. The coarsest is found in Proverbs 26:11: “As a dog returns to its vomit, so a fool repeats his folly.” In the Old Testament we read of Jeremiah who had long warned the people of Judah of the dire consequences to their excesses, idol worship, and sinful carousing. They instead chose complacency rather than fearing sin and God’s authority; to live it up and live according to their lusts. Eventually, God did allow the Israelites to be punished. Then the bad times hit. What was the response of the people? It was not remorse. Instead, they pined for what they still regarded as the former “good times.” They chose to blame Isaiah for depriving them of their former hedonism.

“We will not listen to the message you have spoken to us in the name of the LORD! We will certainly do everything we said we would: We will burn incense to the Queen of Heaven and will pour out drink offerings to her just as we and our fathers, our kings and our officials did in the towns of Judah and in the streets of Jerusalem. At that time we had plenty of food and were well off and suffered no harm. But ever since we stopped burning incense to the Queen of Heaven and pouring out drink offerings to her, we have had nothing and have been perishing by sword and famine” (Jeremiah 44:16-18).

According to the New Testament, the same type of response is to be expected again. We conclude that the basic character of human beings has not materially changed these last 3000 years. Despite the many travails that come about in the Tribulation period, on at least three occasions we read in Revelation that mankind still refuses to forfeit their idolatries. For example: The rest of mankind that were not killed by these plagues still did not repent of the work of their hands; they did not stop worshiping demons, and idols of gold, silver, bronze, stone and wood—idols that cannot see or hear or walk. Nor did they repent of their murders, their magic arts, their sexual immorality or their thefts”(Revelation 9:20-21).

Loosely interpreted, despite the punishments, people continued to prefer to hold on to their idolatries and lusts (i.e. financial, corrupt monetary systems, and otherwise). Moreover, once the hard times came about (these being a direct consequence of the prior excesses) rather than wanting to change their ways, they instead longed for bacchanalian revelry of former times.

Looking ahead, what is wrong with this picture? Would you need to be a highly-paid economist working on Wall Street to draw a correct conclusion?

• Food stamp usage in America continues to climb (with almost 50% more people qualifying for their use since the Fall of 2008).
• Long-term unemployment is at a record high.
• Sales in low-price stores such as Wal-mart are lagging … even declining on a same-store basis in some months. However, the sales of high-end retailers such as Saks and Macy’s are growing strongly.
• The U.S. labor market participation rate has declined sharply (by 2 percentage points). Does this normally occur in a recovery period?
• The sales of luxury goods manufacturers such Louis Vuitton, Burberry … etc. are strong and the auction prices of rare art never really having suffered a downturn.
• As mentioned, real income growth for the average U.S. household has turned negative in the past few months. The same is now true in theUK.
• Corporate profits are now higher (as a share of national income and partially at the expense of household incomes) than before the GFC began.
• The U.S. banking sector is now more concentrated than before (this being a major complication should bail-outs ever be required again).
• The FAO (Food and Agricultural Organization, a division of the United Nations) reports that food costs around the world have soared to all-time highs.
• Profits for the entire financial sector have returned to prior highs, and multi-billion dollar bonus payouts are at new highs.
• Many countries, including the U.S, are heading towards plutocracy (that meaning to be ruled and controlled by the rich). The top 1% of households now control over 44% of income … the highest since prior to the last Great Depression.

From these few facts, what should be the diagnosis? Why, of course, economic conditions are improving! But for whom?

The biggest death knell of all is this: With interest rates having plunged (and still remaining relatively low at this time) the cost of retirement has soared. This is a catastrophe that is rarely discussed in the public arena.

Were one to invest one’s pension in a 5-year treasury bond, you would today need a pension fund that is more than twice the size of 3 years ago to generate the same amount of income. (Please see Figure #1 inApril 2011 issue of Eternal Value Review) “Yes,” say the quantitatively-trained economists who know relatively little about causal economic theories, “but that is not inflation.” Of course it is. For the middle class household, a retirement next egg (whether a pension or other forms of savings) is the biggest purchase they will make in their lifetime. Now, to a large extent, the future purchasing power of retirement savings has been pillaged. Unfortunately, this fact has not yet sunk in with many people.

The second biggest household purchase is a home. The collapse of home values (combined with a senseless increase in mortgage debt) obliterated the net worth of a large number of households headed by members of the 45 to 64 year cohort. Overall, home net equity has plunged to an all-time low. (Please see Figure #2 in April 2011 issue of Eternal Value Review, this being the most disastrous event for America—and Israel—in our view.) These two wealth devastations for middle class America really amount to a sucker two-punch. What to do next?

History suggests that there are only a few outcomes possible. Over-indebtedness can be dealt with in one of three ways: 1. Default. 2. Massive inflation, thus shrinking the size of historical debts (though this leading to ultimate bust, as well); 3. Or the hard way—by saving and slowly paying down debts. However, if the situation is also marked by a condition of an extreme wealth distribution imbalance (as it most always is), much more volatile outcomes are likely. Indeed, as mentioned, wealth distribution today in many nations (also the U.S.) is the most extreme since the 1920s, if not at an all-time record. A thought for reflection is this: The bloody French Revolution was instigated by the very same conditions.

Finally, in dealing with these perplexities, we must not forget where to keep our focus.

“So I tell you this, and insist on it in the Lord, that you must no longer live as the Gentiles do, in the futility of their thinking. They are darkened in their understanding and separated from the life of God because of the ignorance that is in them due to the hardening of their hearts. Having lost all sensitivity, they have given themselves over to sensuality so as to indulge in every kind of impurity, with a continual lust for more” (Ephesians 4:17-19).