Bubbles and Bumps

Scripture treats the economics of business like it treats other institutions formed by mankind, important but secondary to the personal development of the individual.  Society is important, even vital, to world community, but also secondary to the development of the individual.  Freedom and liberty belong to the consideration if the individual means to take responsibility for self to self, to society, and to God.  This is so important that God permits his own human creation to make decision for or against the creator.  There is something of mystery in it.  We may not have quite grasped the importance of the self to the self, so we may make ill-advised decisions, waste our limited time span, violate our space and parents so projecting our ideas and conducts haphazardly.  This page is using economics as illustration of the concepts that lead to ups and downs for the individual, for families, and eventually for nations.  We might just as well use education, meant for the improvement of the individual in person and society, but geared in the common mind for furnishing wealth, perhaps power or control, even for pride and human success.  Economics may be used to serve uncomplimentary purposes.  When it does it is seen as greed, or excess in control and selfishness.  Sometimes it sinks to illegality and immorality.  This may become so common that economies are warped and the object of negative evaluation, even though investment is found necessary.

During the period of the revolution of the American Colonies, a few men of substance met together on Wall Street and determined to develop an investment institution.  The concepts were not totally new.  In Europe the business of banking had held some of the features that the first American investors developed.  That banking was largely influenced by royalty, but the American experiment would relate to the commoner who might like to invest and earn dividends on money invested.  The methods of the wealthy were carried to the citizen who, with a bit of excess, would try business by risking proxy – investing in the ideas and work of others.  The process worked well, as long as the ideals were kept.  Gradually there were introduced various concepts related to banking, to some risk, and various procedures that might undermine ideals.

Our concern here is to look at the significance of the general public and investor who, against knowledge, continue to feed human greed so to threaten the value of the system to a burgeoning and distracted society.  In the ideal the standard has been to evaluate collateral (property and projections), and lend on the basis of expectation that the project will succeed.  The biblical concept relates to human need and service.  On this basis many Christians, both as individuals, and church groups of individuals in concert invest for purpose that lifts mankind.  Having reviewed various church programs, either as a single church or as a denomination, I am impressed at the quality of those programs.  Many millions of dollars gained from investment dividends are dedicated to mission needs, to charity, to day schools and colleges, to building programs, and the like.  Members and friends have left legacies of property to churches to invest.  The reviews of investment programs of evangelical churches and denominations have been remarkable in avoiding securities that advance poor practices in personal and public habits.  Some investment houses are openly opposed to industries related to the negatives in society.  Even secular companies have programs that evade such matters as gambling, liquor, or areas like sex trades and marginal businesses.  They may also tend to avoid the bubbles that lead to loss and disruption.  During recent decades the bubbles of industry (automotive is one); of inflation of property (homes and land); of creative technology (computers, phones) have led to excesses which flourish for a time, then drive down the market in saturation and competition.  The public generates the fury, and money changers play it out.  In all this there are many persons who use investment programs to serve God, and some services engage in a way that makes it possible to save, to provide for ministries and retirement.  There is something satisfying in using investment programs in self-planning to faith in future Christian programming.  My participation in the services of denominational programs rescued me when secular investments diminished or failed.  It is an excellent illustration of having your cake and eating it too – interest earning and delayed gifting.