03 August 2009

BWSC: Joseph: A Prophet Becomes an Economist (Dr. Jeff Roach on Biblical Economics)

Economics is also know as "dismal science". Literally it means "House Law", "Management of a household". What is economics? It is the efficient allocation of scarce resources in a market place. It is a study of the markets.



What does a healthy marketplace have?

A. Right incentive structure.

B. Free flow of good information.

C. Minimal impediments to bargain.

D. Appropriate role for government (i.e. property rights and contract enforcer)



A healthy market place has individuals who are:

Loving participants

Honest; not bearing false witness; do and say the same thing

Not respector of persons

Respectful of others' property; not stealing



Joseph:



Why Joseph of all people? He probably had a similar background, and his personal qualities are worth emulating.



Joseph implements the proper role for collateral. (Genesis 47:13-25) In a similar situation in the US during 2001-2006, there was not enough considerations of risks, and that is why we are in this mess today.



Joseph dealt with the 'credit crisis' via temporary control of property He also instituted a 20% flat tax. This was the collateral (something to help offset risks) that he used.



Applications:



Some of Joseph's personal qualities that we can emulate are:

Respect for what was not his; differed to God, and took no glory for himself.



Professional qualities:

Served his master well; delayed present consumption for future consumption



No comments:

Post a Comment