The economy of a society ought to function at highest level on the needs (life survival items) of persons, and some reasonable preferences (wants/desires). This means practicality fitting to mortal persons believing in orderly planning. It ought to grow out of a free society which, when rightly managed, encourages simplicity. Although preferred value thinking is not in favor of wealth for wealth’s sake, the monetary cost of labor and resources is evaluated in terms of money (acceptable tender or form of exchange). Savings are necessary to cover the security of individuals in the management of the ups and downs inevitable in faulty human functioning, change and aging indigenous to the human situation. Interest rates relate to borrowing reconciled with collateral, and treated as a possible threat to freedom. The compliment to a person or society would be to function without debt. Even with the simplicity concept fixed, the machinery to make the economy work in a concentrated non-rural society is complex so requires fine tuning to achieve purpose. Rural society was largely self-contained with management left to each single family, using some form of barter. A capitalist society works well if responsibly managed, with multiple persons joining to form corporations to produce what private persons cannot in light of cost. In all this the place of altruism (unselfishness) must be in adequate supply, and protection from greed found in some part of the economic program. Balance is presumed to be found in wages relating to work that serves society; savings relating to protection from vicissitudes of life; spending relating to earnings and resources; taxes relating to order and infra-structure; budgets, analysis, management of human nature (law); and, education relating to management and responsibility to action. All this is possible to accomplish.
During the decades I have followed several economics and business teachers, writers, consultants, and have been asked to consult in several businesses, churches, government agencies, schools and hospitals. I have learned from both experience and well accepted authorities that the biblical concept for money management has been also a recommended pattern in the secular business world. One of these persons, revered in the history of business management and economics was Peter Drucker, active into his nineties as a consultant and teacher. I was pleasantly occupied in reading from Forbes magazine the experience of columnist Rich Karlgaard in meeting Drucker on two occasions in Drucker’s modest office in Claremont, California. Once Drucker had his visitor seated he simply said: How may I assist you? The occasion for the article was to review the book by Bob Buford entitled: Drucker and Me. Before meeting with Drucker for assistance in his failing business Buford was instructed by Drucker to write a long letter about what he wanted to accomplish. Afterwards Drucker met with Buford, but did not talk about finances or operations but his life, dreams and hopes. With clarification of these, Buford followed the counsel. In about ten years he was more affluent than he ever imagined he would be. Born in Vienna, Drucker escaped Europe and the despotic leaders he saw in the Nazi programs. As the years went by he devoted his life to the work of non-profits. He believed that a vigorous nonprofit sector of churches, libraries and organizations such as The Salvation Army could do more than lift up human beings. They could be buffers between private interests and public governance. Drucker and Buford met together to work through the concept of a quest for significance. Buford, a Christian, had joined the thinking of Drucker. Out of the effort came much of the energy for the mega-church boom we see today. Rick Warren followed the pattern at Saddleback Church. At a meeting Drucker talked to eminent ministers – that divine purpose was the foundation of a healthy society. After the discussion Drucker bowed head, joined hands with others as Warren prayed. It strikes me that so few analysts have really analyzed the Drucker success related to theory.
P.S. – To gain an even more insightful understanding of Drucker’s mind, read his two novels, appearing currently in one volume. *Mark W. Lee, Sr. — 2016, 2020