Economics 101


There are only three ways the United States Government can get money. It can borrow it, tax for it, or print it. In reverse order:

1. Printing is really a tax on all the people that cheapens the money. This can been done a little at a time and prices will gradually increase. But people catch on after a while and they push for cost of living increases and such, so that the inflation does not work. If massive printing takes place financial institutions are destroyed including government banks. People pay off old debts in cheap money which will not buy anything. The open market disappears, black markets proliferate, liberty as lost as the secret police intrude into everything. Modern nations do not inflate primarily by printing but by easy credit and marginal reserve banking. The result is the same, but saves paper and ink.

2. Taxing is not politically valid, for the people will not stand for it, nor can it survive economically. If the rich are taxed, the money goes into hiding, off shore, in foreign investments, in long term investments in gold or silver, etc. The rich have ways. Most taxes on the rich are paid for by the lower classes because the rich just pass the taxes on through in the cost of goods and services. Business men must count them in the cost of doing business and pass them through to their customers. A little wiggle room can be achieved by lying to the people, promising tax relief until after the election and then reneging on the promises. The government has a couple years until the next election. Jobs and industry move overseas, and people blame the "evil" businessmen for taking their jobs overseas, because the people are too ignorant to see that it was government taxation that sent the jobs overseas.

3. Borrowing is even more destructive. The lending market always responds to supply and demand. If the demand for money exceeds the supply, the price of money [interest] goes up. This increases government budgets as the rates go up and up as they did in the Carter administration. This also slows business, because they must stand in line behind the government in order to borrow money and they must pay a higher rate. The economy slows, only helped a little by government money poured into favored businesses and banks to keep the inefficient ones alive and working. These compete with an unfair advantage over those who are not favored, but efficient, so that the quality of goods and services decline. When the inevitable scandal occurs, instead of seeing the villain in government, the government proposes more rules and regulations and government supervisors to see that quality is maintained. Just like Freddie Mac and Fannie Mae. The results are boringly predictable.

Solution. The problem is the people, and the people must provide the solution. As long as the people make government their god and the president their savior, there is no hope. The cycle will continue and Babylon will be overwhelmed in debt, despair, and oppression. The people must cast their gods to the moles and bats and look to the God who created them to provide their daily bread and the necessities of their lives. They way they are to do this is described in Eph 4:28 "Let him that stole steal no more: but rather let him labor, working with his hands the thing which is good, that he may have to give to him that needeth."

The foundation of economic health is not living off the labor of others [as government does] but doing honest work and showing kindness to those around you. Simple, isn't it.

The Ninth Commandment: Part Two

Prepared for Sunday School. May 25, 2008
[Scroll down blog to Wednesday, May 14, for Part One]

The Ninth Commandment is simple: “Thou Shalt Not Bear False Witness Against Thy Neighbor.”

The HC gives the meaning this way:
Q112: What does the ninth Commandment require?
A112: That I bear false witness against no one,[1] twist no one's words,[2] be no backbiter or slanderer,[3] join in condemning no one unheard and rashly; [4] but that on pain of God's heavy wrath I avoid all lying and deceit [5] as the very works of the devil;[6] and that in matters of judgment and justice and in all other affairs I love, speak honestly and confess the truth; [7] also, insofar as I can, defend and promote my neighbor's good name.[8]

1 and 2: See Lesson for May 11.

3. Be no backbiter or slanderer: "And even as they did not like to retain God in their knowledge, God gave them over to a reprobate mind, to do those things which are not convenient; 29 Being filled with all unrighteousness, fornication, wickedness, covetousness, maliciousness; full of envy, murder, debate, deceit, malignity; whisperers, 30 Backbiters, haters of God, despiteful, proud, boasters, inventors of evil things, disobedient to parents," (Ro 1:28-30)

4. Join in condemning no one unheard or rashly: "Judge not, that ye be not judged. 2 For with what judgment ye judge, ye shall be judged: and with what measure ye mete, it shall be measured to you again." (Mt 7:1-2) "Judge not, and ye shall not be judged: condemn not, and ye shall not be condemned: forgive, and ye shall be forgiven:" (Lu 6:37)

5. but that on pain of God's heavy wrath I avoid all lying and deceit: "Ye are of your father the devil, and the lusts of your father ye will do. He was a murderer from the beginning, and abode not in the truth, because there is no truth in him. When he speaketh a lie, he speaketh of his own: for he is a liar, and the father of it." (Joh 8:44 av)

6. as the very works of the devil; "Lying lips are abomination to the LORD: but they that deal truly are his delight." (Pr 12:22) "A righteous man hateth lying: but a wicked man is loathsome, and cometh to shame." (Pr 13:5)

7. and that in matters of judgment and justice and in all other affairs I love, speak honestly and confess the truth; “Rejoiceth not in iniquity, but rejoiceth in the truth;” (1Co 13:6); “Wherefore putting away lying, speak every man truth with his neighbour: for we are members one of another.” (Eph 4:25)

8. also, insofar as I can, defend and promote my neighbor's good name. “And above all things have fervent charity among yourselves: for charity shall cover the multitude of sins.” (1Pe 4:8)

On this last verse Calvin writes:

“And above all things. He commends charity or love as the first thing, for it is the bond of perfection. And he bids it to be fervent, or intense, or vehement, which is the same thing; for whosoever is immoderately fervent in self-love, loves others coldly. And he commends it on account of its fruit, because it buries innumerable sins, than which nothing is more desirable. But the sentence is taken from Solomon, whose words are found in Proverbs 10:12 “Hatred discovers reproaches, but love covers a multitude of sins.” What Solomon meant is sufficiently clear, for the two clauses contain things which are set in contrast the one with the other. As then he says in the first clause that hatred is the cause why men traduce and defame one another, and spread whatever is reproachful and dishonorable; so it follows that a contrary effect is ascribed to love, that is, that men who love one another, kindly and courteously forgive one another; hence it comes that, willingly burying each other’s vices, one seeks to preserve the honor of another. Thus Peter confirms his exhortation, that nothing is more necessary than to cherish mutual love. For who is there that has not many faults? Therefore all stand in need of forgiveness, and there is no one who does not wish to be forgiven. This singular benefit love brings to us when it exists among us, so that innumerable evils are covered in oblivion. On the other hand, where loose reins are given to hatred, men by mutual biting and tearing must necessarily consume one another, as Paul says (Galatians 5:15.)

“And it ought to be noticed that Solomon does not say that only a few sins are covered, but a multitude of sins, according to what Christ declares, when he bids us to forgive our brethren seventy times seven, Matthew 18:22.) But the more sins love covers, the more evident appears its usefulness for the wellbeing of mankind. This is the plain meaning of the words. It hence appears how absurd are the Papists, who seek to elicit from this passage their own satisfactions, as though almsgiving and other duties of charity were a sort of a compensation to God for blotting out their sins. It is enough to point out by the way their gross ignorance, for in a matter so clear it would be superfluous to add many words.” --Calvin on 1Peter 4:8

“The discretion of a man deferreth his anger; and it is his glory to pass over a transgression.” (Pr 19:11)
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“Judge not according to the appearance, but judge righteous judgment.” (Joh 7:24)
“Doth our law judge any man, before it hear him, and know what he doeth?” (Joh 7:51)
“For even hereunto were ye called: because Christ also suffered for us, leaving us an example, that ye should follow his steps:” (1Pe 2:21)
“Who, when he was reviled, reviled not again; when he suffered, he threatened not; but committed himself to him that judgeth righteously:” (1Pe 2:23)
“Let your speech be alway with grace, seasoned with salt, that ye may know how ye ought to answer every man.” (Col 4:6)
“Not rendering evil for evil, or railing for railing: but contrariwise blessing; knowing that ye are thereunto called, that ye should inherit a blessing.” (1Pe 3:9)

“8 The wise in heart will receive commandments: but a prating fool shall fall.
9 He that walketh uprightly walketh surely: but he that perverteth his ways shall be known.
10 He that winketh with the eye causeth sorrow: but a prating fool shall fall.
11 The mouth of a righteous man is a well of life: but violence covereth the mouth of the wicked. 12 Hatred stirreth up strifes: but love covereth all sins.” (Pr 10:8-12)

“13 In the lips of him that hath understanding wisdom is found: but a rod is for the back of him that is void of understanding.
14 Wise men lay up knowledge: but the mouth of the foolish is near destruction.” (Pr 10:13-14)

“For in many things we offend all. If any man offend not in word, the same is a perfect man, and able also to bridle the whole body.” (Jas 3:2)

“34 O generation of vipers, how can ye, being evil, speak good things? for out of the abundance of the heart the mouth speaketh. 35 A good man out of the good treasure of the heart bringeth forth good things: and an evil man out of the evil treasure bringeth forth evil things. 36 But I say unto you, That every idle word that men shall speak, they shall give account thereof in the day of judgment. 37 For by thy words thou shalt be justified, and by thy words thou shalt be condemned.” (Mt 12:34-37)

Please click here for a discussion by Ursinus on the meaning of the 112th Question in the Heidelberg Catechism.

Wonderful quote, worthy of one named after the great reformer!

If a man is called to be a street sweeper, he should sweep streets even as Michelangelo painted, or Beethoven composed music or Shakespeare wrote poetry. He should sweep streets so well that all the hosts of heaven and earth will pause to say, here lived a great street sweeper who did his job well.- Martin Luther King, Jr.
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It is too bad that so many of our black brothers today have listened to other voices and would say, "Who wants to be like one o' them white folks?" But they should pause a moment and listen to their best friends like Bill Cosby.

Good and Profitable


"This is a faithful saying, and these things I will that thou affirm constantly, that they which have believed in God might be careful to maintain good works. These things are good and profitable unto men." (Tit 3:8 AV)

It is a good and faithful minister that constantly reminds his congregation to maintain good works.

When this is done and the appeal is to thankfulness and the love of God, the minister is not preaching works righteousness. Instead, he is being obedient to his call.

This is so transparently good, that only a certain defensive blindness could miss it. It is good for a congregation to have love for each other. It is good for them to protect the reputation, the property, the life, and the joy of other members of the congregation. Just as a person must drive on the right side of the road in America in order to show his love for his neighbor and not imperil life, property, and happiness, so a Christian must maintain good works if he is to be a blessing to his brothers and sisters in the church.

Often churches and communities are dominated by bullies that do not maintain good works. They lord it over others in the congregation by the force of their personality and sometimes by a pretended piety. They intimidate others and impose their will on their churches and their families and friends by bullying tactics--by fear, guilt, and such. They use many different tactics for the rebellious heart is very fertile in such things. Even children are very innovative when they seek methods to circumvent the will of their parents.

The constitutions of the church are designed to protect in biblical ways the rights of all; not only the rights of the members of the church, but the rights of its officers and leaders. If every member of the church is allowed to carry on guerella warfare against the officers of the church, the duty of the officers to obey the scripture quoted above is impaired or obliterated. This is so transparently true that the only reason someone would dissent would be in order to overthrow legitimate government and impose their will on others, contrary to the covenant of the church. In such cases the whole church will suffer.