Vince Deagler

i’m back and continuing what i started yesterday.  you may want to read yesterdays blog.  as i was wrapping up my thoughts, i mentioned something has to give.  our ecomy is based on consumption.  to allow for optimal consumption we have credit.  but the use of credit may, often does, result in debt (another word for slavery).  and debt eventually takes its toll.  this is exactly what has happened in this crisis.

now i do not want to get bogged down in detail or politics, but our sad tale of woe begins with a departure from biblical principles.  remember the parable of the talents?  it demonstrates there is inequality of circumstance in our world.  jesus does not correct this, or even speak against it.  it is the norm.  what that means practically is not everyone will have the same standard of living.  there will be have’s, there will be have not’s, and there will be everything in between.  each person is responsible before god to manage the resource he has entrusted to them for him.  but remember, our economy is based on consumption, consumption is necessary and encouraged.  in fact, much of our cultural status, position, identity is based in our net worth, possessions, etc.  so what easily happens is what did happen.  consumers, encouraged to consume and enabled to consume through easy credit, consumed.  why not, it is what consumers do.  but shouldn’t they consume responsibly?  just because credit is available, just because there are houses, cars, rv’s, boats, home improvement projects, furniture, lavish vacations, etc. doesn’t mean i must participate.  no, i should manage my resources for god not self interest.  unfortunately too many people bought into easy credit and consumption without enough thought to their ability to repay. 

i do not want to minimize the role our gov’t played in this by insisting that affordable housing be provided to people who could not afford the housing necessitating the creation of the sub-prime loan.  nor do i want to minimize the role of mortgage companies, banks, and investment firms who manufactured these sub-prime loans, marketed them without any sense of responsibility because in their mind the homes that served as security would always rise in value, and then bundled them and sold them as AAA+ mortgage backed securities to unsuspecting investors.  what this did in the market was bring more buyers into the market (demand) which created a shortage in available, affordable homes (supply) , and prices were driven up at an alarming rate.  my own home tripled in value in roughly 6-7 years.  but it was all smoke and mirrors.  many buyers (demand) should not have been in the market.  but they were.  and when the reality that their debt exceeded their ability to repay began to surface, the whole housing market collapsed.  but i have very little control over the gov’t, over banks and mortgage companies, over investment firms.  but i do have control of me, and you do have control of you.

so, if i live within my means.  and you live within your means.  (this may mean a 1 talent life, please realize not everyone will have a 5 talent life) we are doing what we can do to have a healthy economy.  this is why this crisis has been so painful for so many people.  if you are used to living a 5 talent lifestyle when you really ought to be living a 2 or 1 talent life, the adjustment can be difficult.  too many were doing exactly that enabled by easy credit, the housing bubble, and a consumer mindset.  if we will get out of this mess we must learn to live within our means.  but this is where our culture and biblical wisdom collide.  remember, our ecomy is built on consumption.  it demands we consume.  if we live within our means, as we should, as many are now learning to do, the economy by necessity will shrink from what it was when we were collectively living beyond our means.  it has to.  hence lay-offs.  if we are not gonna buy all this stuff, why make it.  it may be painful, but when it all washes out, we will have a real economy instead of a bubble economy.  this is where our fearless leaders in gov’t really have me spooked.  they are politicians 1st.  as one commentator often says when asked what do politicians do???  they run for re-election.  that means gov’t handouts, bailouts, etc. to garner votes.  you’ve heard it, the economy has contracted by a bizzillion dollars therefore gov’t must step in and fill that bizzillion dollar hole.  now, stay with me.  do we have a bizzilliondollars?  no.  then where will we get it?  there are only 2 sources, we either print it which devalues all otherdollars in circulation (this is what is called inflation), or we must get it through taxation. now, stay with me.  when we tax the productive sectors of our culture whether as individuals or businesses at least 2 things happen.  one, they have less to be productive with, so you get less productivity.  this flies in ther face of what jesus teaches in the parable of the talents.  the persons given 5 and 2 talents were productive and rewarded for their productivity.  the person who received 1 talent, wasted his talent, did nothing with it, and as such it was taken away from him and given to the one with 10 talents.  jesus seems to say we are to reward the productive and take away from the irresponsible.  unfortuneately our gov’t does the opposite.  the second thing that happens is you take bizzillions of dollars out of the economy.  isn’t that what you were trying to fix in the stimulos?  this is why when it comes to politics you often here the phrase…kick the can down the road.  the politicians who make the decisions today will not be around in the tomorrows to deal with the unintended consequence of their actions…and i think they know it.  but again, i have little say over that.  but i have all the say over me.  as do you when it comes to you.

so, for now, what can we do?  live within your means.  avoid the trap of credit.  recognize how dangerous debt is.  do the best with what you have.  be happy with who you are because it is who you are, not because of where you live, what you drive, what you wear, whether or not you have the newest, latest, hottest thing to come down the pike.  this may sound blasphemous.  let me give you a hint, if you have committed your life to christ, if your following him, well for me all this is just normal.  so if your struggling with this financial crisis, it may be time to check out what jesus has to offer.  he really can lead you through this disaster.  i know, he has done that for me.  so, if you need some help.  check him out.  if i can help you in some way, drop me a line.  blessings.  vince