Economic Parables -- Post 2

An interview with the author of Economic Parables:

Author David Cowan states, “The debate about the economy is more out of control than the economy itself. This talking down of the market is creating a self-fulfilling prophecy.“There is an illusion that the economy will look after us. It is not a function of the economy to do this. Ever since God sent Adam into the garden and told him, ‘Life’s gonna be tough!’, we have had to find ways to negotiate conflicting wants and needs in the world. This is what the economy does. We need to use the good times - as a country, as households and as individuals - to prepare for the bad times. We have lost the habit of our grand-parents of doing this, which is why we have such a mess today. In downturns we can get economically punished, but remember that in the alternatives of Socialism and Communism, and in high tax regimes, we get punished ALL the time.”

Below, Cowan addresses questions that many of us are asking about the current economic situation:

Who is responsible for this mess?

We all are. The current crisis has to be put into perspective. In some ways, we have become a spoiled society, only happy in the good times and unprepared for the bad times. Unlike our parents and grandparents, we only think of things getting better, but this is unrealistic. The economy has its own rules of gravity, what goes up will come down. We didn’t hear complaints when it was easy to get loans, without backing it up with any assets, but now the markets have gone against us we don’t want to take responsibility.

Will the bail-out work?

The bail-out will have to work. Not because it is wise, sadly, but because that is what the loudest voices are baying for. On the plus side, there is an opportunity for government to make money and return a profit to the America taxpayer a year or two down the line. This was done back in the 1930s, the Home Owners’ Loan Corporation, and again in the 1980s with the Resolution Trust Corporation in the Savings & Loans bank failures. On the negative side, there is the possibility the profit could just get squandered by various lobbied interests and government bureaucracy.

Is this is all the fault of bankers?

It’s easy to attack the fat cats of Wall Street, and they deserve a lot of criticism. But what about the big pay-outs to sports stars, movie stars, celebrities and others? Isn’t it the case that we have a culture of greed? This is a tough thing to say, which is why you won’t hear the politicians say it, but we all share the blame. There is a gambling mentality in our economic behavior. We’ve all - not just the banks but all of us - been putting our chips on red and now the market has gone black we look for someone to blame. Too many of us, on Wall Street and Main Street, have been managing our desires unwisely.

Is this proof that Capitalism doesn’t work?

This is not the time to question the future of Capitalism. It is not a question of whether Capitalism works or not. It is not a time to go back to the tired old debates of the last century about Capitalism. The alternatives like Socialism and Communism caused oppression, and they were unsuccessful. We still believe in democracy, even when elected leaders have become dictators. Equally, we still have to believe in Capitalism, even when we see irresponsible leadership in the market.

What is the way forward?

This is the question to ask: what kind of market do we want? The answer should not be a kind of European Socialist-lite. It should be about robust Capitalism, made robust by effective regulation, increased individual responsibility by all, and greater accountability of financial institutions and businesses so that managers actually know what is going on in their organizations.

What should we do as individuals?

What is happening right now is a bleak message to us all; we know that. But there is a bleaker message when we do not listen to Jesus when he says in the parable “You can’t take it with you”. If you are hurting right now from this economic crisis, you have to ask yourself what you have left, and you should see indeed there is much left, for there is the love of Jesus in your life. Just like the economy, this is an opportunity for you show Him that you can go through the bad times with him, not just the good times.

What questions should I ask of myself?

Many people, as they find their material life difficult, will also find they have nothing left in the spiritual bank, because they have based their life on material things. If we base our life on the parables, we learn that Jesus tells us to use our worldly wealth wisely, so this is a time to ask, did we do that? Did we do that economically? And more importantly, did we do that spiritually?

I’m surviving, what should I do?

The faithful who have managed both their economical and spiritual wealth wisely, this is a time for you to reach out into your community and see how you can help people in trouble. Help people with debt counseling, and give people spiritual counseling. When 9/11 and New Orleans happened we knew we had to reach out. This is an economic storm we are in, we need the same approach, money doesn’t make it different.

Economic Parables - Post 1

This week we'll look at a new book, Economic Parables -- The Monetary Teachings of Jesus Christ by David Cowan.

BACK COVER TEXT:

Ever wondered how to pay the next bill? Felt the world is unfair in economic rewards? Been indecisive about investing wisely? These types of fiscal questions are addressed from a Christian viewpoint in Economic Parables.

Using his vast experience in the financial world as well as church ministry, the author invites you to listen directly to the words of Jesus and reflect on a number of "economic parables" to understand life in an increasingly globalized economy. Some of the answers you'll find will be surprising, in part, because Jesus was a more sophisticated economist than he is given credit for. His words will shed light on many modern economic problems and decisions we may not think to go to the Bible about.

By taking this journey through the "economic parables," your response to finances and the global marketplace will be enriched from a balanced biblical approach. Each chapter contains a parable and reflection, followed by questions making this book ideal for group or personal Bible study.

ABOUT THE AUTHOR:
David Cowan is a pastor, speaker, writer, and theologian. He holds a Bachelor of Theology and Master of Theology, both from the University of Oxford, and a Diploma in Ministry from Westfield House, Cambridge. For over twenty years, he worked as a journalist, editor, and bank executive in Europe and North America for organizations such as Financial Times, Euromoney, and the World Bank Group in Washington DC. He has written for the Washington Times, Financial Times, The Times of London, The Middle East and has been interviewed by major print, television, and radio media, including CNBC, Bloomberg TV, Wall Street Journal, Financial Times, and BBC Radio. He lives in Cluny, France, with his wife and two children.

PURPOSE:
In the Preface, David explains how his unique experiences as both a theologian and journalist in the finance industry position him to view both the Bible and world financial issues in a different light.

He states his hope that the book will spark debate within the Christian community about our responsibilities and responses it world economic issues.

TABLE OF CONTENTS:

1. To His Disciples He Explained Everything
2. Can we Use Worldly Wealth? The Parable of the Dishonest Manager
3. Do We Let Wealth Choke the Word? The Parable of the Sower
4. Do We Envy Our Neighbor? The Parable of the Workers in the Vineyard
5. Can We Invest Wisely? The Parable of the Ten Minas
6. How Should We Manage Our Debts? The Parable of the Unmerciful Servant
7. The Things We Have, Whose Are They? The Parable of the Rich Fool
8. How Productive Are We? The Parable of the Tenants
9. Can We Forgive Debts? The Parable of the Two Debtors
10. Are We Storing Treasure on Earth? The Parables of the Hidden Treasure and the Pearl
11. How Much Do We Give? The Parable of the Pharisee and the Tax Collector
12. What Can We Do To Help Others? The Rich Man and Lazarus
13. How Charitable Are We? The Parable of the Great Banquet
14. How Much Do We Need to Live On? The Parable of the Lost Coin
15. The Gospel in an Economic World in Need of Faith

LAYOUT OF THE BOOK:
The first chapter provide key background for understanding the link between our economy and the life of submission to God's will that we are called live. Many times Christians ignore the world economy by thinking it doesn't have implications on theology or is based on the 'root of all evil'. But as we understand the implications of a global economy on our personal lives, we struggle with our ability to integrate our 'Christian' lives and with our financial dealings with income, debt, giving, and wealth.

Starting with Chapter 2, the format includes an introduction, the text of a parable taken from the NIV Bible, a Reflection, Other Biblical Texts to Study, and Things to Think About.

The next post will look more closely at a few of Cowan's assertions and will include an interview with the author.

The Total Money Makeover - Part 1

Before I begin reviewing this book, I want to be totally upfront. Doug and I are certified as financial counselors through Dave Ramsey's organization, and we have led Dave's Financial Peace University classes at our church for nearly 4 years. We selected Dave Ramsey's program over others because of the breadth and depth of the topics he covers. That said, we vehemently agree with approximately 95% of his recommendations...others we promote with a bit of reality and personal experience that offers a reasonable alternative.

Who is Dave Ramsey?
According to the bio in the back of his book, Dave is the best-selling author of More Than Enough and the enormously successful Financial Peace. His radio program, The Dave Ramsey Show, is heard on more than 300 radio stations throughout the U. S. and transmits Ramsey's inimitable financial advice to more than 3 million listeners each week. Many national corporations as well as hundreds of thousands of individuals have benefited from Ramsey's Financial Peace University program and his many LIVE events.

In the introduction to the book, Dave tells us that his book is NOT:
- Sophisticated or complicated,
- Something that has never been said,
- Going to mislead you on investment returns,
- written by someone with no academic credentials
- politically correct
- wrong
- the same as his other books,
- getting any complaints or criticisms from people who follow it.

Dave shares his financial background with us. He has a degree in finance and licenses in real estate, insurance, and investments. But he feels that his most important qualification to teach about money is that he has "done stupid with zeroes on the end!" He knows what it is like to be "scared and scarred" by poor financial decisions and to face potential divorce because of financial stress. He and his wife used the principles spelled out in the book to recover from the brink of bankruptcy to a position of personal wealth. He has been there and he has learned how to not only survive, but thrive.

Dave promises that if we "will follow the guidelines of his proven system of sacrifice and discipline, we can be debt-free, begin saving, and give as we've never given before. We will build wealth. He also promises that it is totally up to us...this is no magic formula."

A Look at the Contents:

1. The Total Money Makeover Challenge
2. Denial: I'm Not THAT Out of Shape
3. Debt Myths: Debt is (Not) a Tool
4. Money Myths: The (Non) Secrets of the Rich
5. Two More Hurdles: Ignorance and Keeping Up with the Joneses
6. Save $1,000 Fast: Walk Before You Run
7. The Debt Snowball: Lose Weight Fast, Really
8. Finish the Emergency Fund: Kick Murphy Out
9. Maximize Retirement Investing: Be Financially Healthy for Life
10. College Funding: Make Sure the Kids Are Fit Too
11. Pay Off the Home Mortgage: Be Ultrafit
12. Build Wealth Like Crazy: Arnold Schwarzedollar, Mr. Universe of Money
13. Live Like No One Else
Budgeting Forms

Book Layout:
The book is written in relatively large print (great for those of us whose arms aren't long enough to hold books so we can read them!) with lots of white space. There are a lot of personal success stories interspersed in each chapter that are both inspiring and tangible. There are meaningful sidebars and good use of highlighting to focus your attention. In the back, Dave has included simple financial forms for your use.

January -- Financial Focus

This year my blog is taking a fresh focus. Each month we will look at a different critical life topic by looking at Biblical principles and new books which address the topic.

In January we'll look at personal finance, and area of crisis for many people. In our town alone, there are currently almost 700 homes going through foreclosure. That is more homes in foreclosure than are available for sale through normal means! This tragedy has a lot of causes and often no easy fix. The Bible has lots to say about the issue -- in fact God spends more time dealing with our finances than any other topic in the Bible!

I think it's important for each of us to look at our attitudes and behaviors regarding money. Whose is it, how much say do we have in how we spend it, and why won't things be better if we just have more of it?

First we'll look at one of my favorite books, however it's not a new one, Dave Ramsey's

The Total Money Makeover -- a Proven Plan for Financial Fitness

. Next we'll see what David Cowan has to say in

Economic Parables, The Monetary Teachings of Jesus Christ

. We'll end the month with

Surviving Financial Meltdown -- Confident Decisions in an Uncertain World

by Ron Blue and Jeremy White. We may look at a few more books, too, depending on availability.

I hope you'll join me on this quest for linkage between Biblical principles and current Christian teaching!