America's Economic Woes
by Jim Josephsen

 

You have built houses of cut stone but you shall not live in them.” Is this just the ramblings of some ancient bearded old prophet or a sober warning to a nation extant in “the last days?”  This sure sounds like a reality becoming more prevalent throughout the United States of America.

 

What was a boom industry, prominent across America, relentless in growth, as recent as a year ago, the American housing market is slumping at a disturbing rate. Daily, the news reports more foreclosures, greater home devaluation; home owners on the edge, one catastrophe away from losing house and home. The stories are staggering, gut-wrenching. Retired couples, even first time home owners, putting their hopes and dreams in the four walls of security and comfort now have nothing.

 

This is just the beginning of economic woes quelling the life of the wealthiest nation on the face of the earth. Every market and business is affected by the disturbances beleaguering America’s economy. Prominent institutions like Citibank, Merrill Lynch, Ford Motor Corp, GM, Home Depot, many of the Fortune 500 companies, the Mom and Pop businesses of the Midwest, even the colossal United States government, are revealing a fiscal reality which is in grave, serious trouble. 

 

Sensible market investments, the portfolios owned by hard working, middle-class, patriotic Americans, baby boomers, hoping to see the joys of retirement, have dropped more than the gains that were realized in all of 2007; many profits have been eradicated. In many instances, recovery to break even will be years away. Brokers and Market Funds Managers scratch their heads; uncertain what to do; reacting to the whims of men and institutions.

 

Four months into 2008; each week brings additional news of further uncertainty and downturn within the US economy, all of which is adversely affecting global markets. American Businesses once firmly established, having survived previous downturns, recessions and economic bumps in the road are now collapsing. Bankruptcies, mergers, hostile takeovers are ever mounting.  Aloha Airlines, with over sixty years of service has filed bankruptcy, terminating over 3000 employees. Another, ATA filed bankruptcy, terminating over 2200 employees. The recent merger of Northwest and Delta Airlines is the only hope in avoiding outright bankruptcy and the demise of once strong companies within the airline industry.

 

Financial giants like Citigroup and Merrill Lynch, both forced to borrow billions of dollars from outside, Middle-East Arab investors, reveal yet more weaknesses in the US economy. Another giant in its industry, Bear Sterns was forced to come under the supervision of the Federal Reserve, signing a merger agreement with JP Morgan Chase under which Chase would assume the counterparty risk and exercise management control. This type of move was unheard of, illogical, just one or two years ago.

 

The economy has taken a serious change of course that is sending chills down the spines of leading economists, government officials and the average wage earner. With real GDP up a respectable 4.9% in the 3rd quarter of 2007, real GDP recorded a meager and disconcerting 0.6% in the 4th quarter, 2007. Other factors like personal income, personal spending, personal savings, cost of living, inflationary pressures, inventory levels, the US International Investments Position, International Economic Accounts, and International Trade have all reflected numbers that have the economists worried.  Just why is all this happening? Long term and painful recession talk is all that can be heard among the leading economists.

 

Rising costs in health care, health insurance, home and liability, automobile insurance, normal every day staples, fuel, food supplies, grains, paper products, raw materials, metals; the list goes on. All these necessities are costing the consumer more; are troublesome for elected officials down to the single mom barely making ends meet. When the economy goes south, real spending is eroded; ancillary economic targets are affected; such as federal and local tax revenues, personal savings, entertainment, travel, vacations, home improvements, infrastructure maintenance and employment. Many economists are using the term, the “Perfect Storm” in describing just what is happening to the American economy.

 

Not without culpability, the United States government is borrowing from overseas in order to finance its ever growing social agendas, welfare mentality and legislated spending; pork barrel projects and spendthrift ways. The result of excessive borrowing from foreign nations, such as many Arab States, Asian nations, Europe, China, is a growing trade deficit and a weakening dollar.

 

There is no debate; the current US economic downturn is adversely affecting the economies of the world. Global recession is well within the minds of our trading partners; Europe, China, Japan, among other nations. Yet, these nations are guilty of many of the same economic deficiencies and corrupt practices as is the US. As required, market and fiscal corrections will be made, some naturally, some by force of governments, both at home and abroad, with results, some favorable, others distressing. The economy will chug along, but attitudes and spending behaviors will not change until forced to.

 

Instead of considering the cause and effect of the troubles we face, asking why is all this happening, is there something I am doing wrong; the average American, with his head in the sand, plods along, hoping his job stays in tack, hoping her next check will cover the bills, hoping the government will correct the situation, hoping, hoping.

 

Perhaps a look into the very Word of God will provide logical insight as to the economic realities we now face. The economy is now answering to years of patterned fiscal behavior, most of it poor, irresponsible, avarice in nature, characterized as unrighteousness. “To every purpose there is time and judgment, therefore the misery of man is great upon him” (Ecclesiastes 8:6).

 

As of now, God does not have to intervene in man’s behavior to bring judgment upon the lifestyles and ways which man chooses to live. God simply allows the natural consequences of man’s chosen behaviors to develop to their logical ends, of their own accord. God has given fair warning regarding attitudes and behavior when it comes to individual fiscal practices and national fiscal policies. If God’s laws and His principles of sound fiscal behavior are broken, the natural results will be tragic for man and for a nation. Disobedience to God’s perfect laws of fiscal behavior will produce misery and despair.

 

America’s collective sins, its collective disobedience toward God’s Laws automatically results in lives filled with misery, emptiness, ruin and despair. Likewise, America’s collective breaking of God’s laws regarding sound fiscal policy is now producing these same tragic results. America’s economic behavior, as practiced by consumer and businesses alike, is unacceptable to God Almighty and His Word reveals where we have gone wrong.

 

As the partridge that hatches eggs which it has not laid, so is he who makes a fortune, but unjustly; in the midst of his days it will forsake him and in the end he will be a fool” (Jeremiah 17:11).

 

Consider Proverbs 13:11; “Wealth obtained by vanity shall diminish: but he that gathers by labor shall increase.”  Wealth, unstable and uncertain, such as found in the stock markets or chased after by unscrupulous businesses across our land (seeking quick short term gains) never lasts long. Consider the vain, empty and self satisfying business practices which the now infamous, nation-wide predatory sub-prime lenders have chased over the past ten years. The results of their corruption are now clearly manifest in the collapsing housing and mortgage industries. The practice of providing loans to those who are unqualified, under-qualified, those who are at greatest risk of defaulting on their loans has repercussions the costs of which are incalculable.

Many of these predatory lenders full well knew the risks and consequences of enticing the less qualified borrowers. And many of the transactions took place over the internet, removing the face to face aspect so necessary in faithful, successful financial arrangements. And now bailouts are not even helping the mortgage lenders, let alone those who borrow. Many of our financial institutions abuse the poor, purposely. Just consider the practice of interest rates, usury. Notice what the Word of God speaks of those that would abuse the weaknesses and ignorance of the poor; not only in housing but in business transactions at large.

Forasmuch therefore as your treading is upon the poor and you take from him burdens of wheat: ye have built houses of hewn stone, but you shall not dwell in them; you have planted pleasant vineyards but you shall not drink the wine of them. For I know your many transgressions and your mighty sins: they afflict the just, they take a bribe and they turn aside the poor in the gate from their right” (Amos 5:11-12).

When God commands “you shall not oppress the poor” He says so for a reason. Notice more of what the Word of God has to say: “He that oppresses the poor to increase his riches, and he that gives to the rich, shall surely come to want … Rob not the poor, because he is poor: neither oppress the afflicted in the gate: For the LORD will plead their cause, and spoil the soul of those that spoiled them” (Proverbs 22:16, 22-23).

            Notice: “The people of the land have used oppression, and exercised robbery, and have vexed the poor and needy: yea, they have oppressed the stranger wrongfully” (Ezekiel 22:29).  God will execute judgment against any person, business or nation and its government that practices and allows the unethical and sinful fiscal practices of keeping the poor, poor while lining the pockets of the rich.

 “There land is full of silver and gold; neither is there any end of their treasures; their land is full of horses, there is no end to their chariots. Their land also is full of idols; they worship the works of their own hands, which their own fingers have made(Isaiah 2:7-8).

Analyze consumer behavior within America. Consider Americans’ spending habits. Consider marketing techniques; consider advertising. Consider the obscene costs of entertainment and personal pleasure pursuits which Americans grovel to in their lust to consume, to pursue; to have. Consider Business practices in their drive for greater profit, manipulating the American consumer by exploiting the human appetite of greed and carnality, cashing in on the psychology of lust, taking advantage of consumer ignorance. Advertising cries out, have more, bigger, better, now! To what end?

 

            And how do the vast majority of Americans acquire their desires? Credit; borrowing against their future; taking equity out of their homes. And many mortgage and refinance institutions have enticed the America home owner to practice behavior which is illogical and harmful, lustful.

 

America’s debt load is frightful. The US government is running a budget deficit of over $1.8 billion per day. The US national debt is over $9 trillion dollars. The total US consumer debt is 2.46 trillion dollars.  The numbers are staggering. The economic woes we now face are the result of the life styles, the fiscal practices and spending behaviors which are unacceptable to God. But will we as a nation cry out to God with a desire to repent, asking His forgiveness?

 

The average American’s cry is loud and clear, “I can’t handle it anymore.” Millions are crying to their elected officials; “get me out of this economic mess.”  And the government to the rescue – really!

 

In early January President Bush proposed a temporary, broad based tax relief package of about $150 billion. After Congressional deliberation, an economic stimulus package was legislated. Additional federal intervention has since been enacted. Will governmental intervention; will federal funds rate adjustments correct the woes beset the American economy?  Will giving the Federal Reserve greater power over US Banks and Financial Insurers get us out of the economic woes we now face?

 

Our economic reality reveals America is buried in debt. Americans have spent beyond their means and we as a nation are over our heads in debt. Our fiscal practices, both personally and governmental, federal, state and municipal have shaken the confidence of all US markets.

 

 Exacerbating our economic woes is the absurdity of our State and Federal governments cowering to environmentalist and special interest groups who handcuff our nation’s ability to be self-sufficient. As a nation we are unable to utilize the land and natural resources God has blessed this nation (on this side of the Atlantic) with.

 

 Rather than looking to the government for help, Americans need to look to the only source of hope and redemption. We need to call out to God Almighty for help. We need to look at the logical laws of God dealing with fiscal practices. One practical law of God which is breached constantly by Americans is thou shalt not covet. What does covetousness have to do with the economic malaise we are now in?

 

To a great degree America, with its Capitalistic, free market-driven business practices, its consumerism and economic philosophy, is driven by greed and covetousness. Compassion and benevolence take a back seat in business practices at large. Bottom line is all that matters. Additionally, the consumer’s pursuit for instant satisfaction in the acquiring of things, for immediate gratification has caught up to America and our bills are now due. But Americans can’t pay them; it is clearly evident. Foreclosures, bankruptcies, delinquencies are putting an untold drag on the economy. The results of these realities are decreased tax revenue, decreased profits and job loss and an economy sinking deeper into despair.

 

Covetousness, the desire for that which is not lawfully ones own, the desire for that which one can’t afford or be responsible for, is equated with idolatry (Colossians 3:5). Not only will ones lust for possessions, for material fulfillment, for self-gratification result in personal sin, it can result in spiritual rejection, which could very well keep a person out of the Kingdom of God (Ephesians 5:5). Lust and covetousness will destroy lives and ultimately, if practiced by an entire nation will result is economic ruin and national collapse.

 

The Bible clearly defines the characteristics of people who will be alive in the time of the end, just before the return of Jesus Christ. How similar those characteristics are to what is prevalent today. “Lovers of money, covetous, without self-control, lovers of pleasures more than lovers of God.”

 

The pursuit of pleasures while turning your back on God results in misery and despair. Notice the consequences of a nation whose citizens pursued their own pleasures and material comforts while disregarding God. “Consider your ways. You have planted much but you have harvested little. You eat but you never have enough. You drink but never have your fill. You put on clothes but are not warm. You earn wages, only to put them in a purse with holes in it” (Haggai 1:5-6).

                   

            Jesus Christ warns, “beware of covetousness” (Luke 12:15). He stated a man’s life consisted not in the abundance of things he possesses. One has to be careful not to build up treasures on earth while neglecting to be rich toward God. The first way to build wealth toward God is to obey Him and keep His commandments. When one obeys God’s laws of fiscal success, peace and stability naturally results. We only see misery in our land, the result of disobedience toward God and His Laws

 

            If the behavior and characteristics of America is directed toward pleasing and obeying God first, economic collapse would not occur and global economies would look up to and respect the United States. The USA is destroying itself by practicing a life of disobedience toward God.

 

            The Bible is filled with admonitions, laws and practical guidance, all of which when followed produces good living, successful life, happy homes, prosperity and freedom from anxiety when hard times occur. When God’s laws are broken, the result is suffering, distress, turmoil, misery and death. When God’s laws of proper fiscal behavior are broken, the results for the individual, for business and for the nation will always and only be economic turmoil, distress and ruin, such as we in the United States of America and the world are only now beginning to see.

          

to the top    to Volume 11, Number 1    to current 21st Century Watch        What's New        homepage