economy

Money, Church, Jesus and me.

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There is a church which has assets of £8,700,000,000 at the start 2020, at the start of the pandemic.  The nation struggled and many were in financial despair.  What might Jesus have hoped that the church would do?

The church did not ‘hide their gold in the ground’, or put it in a deposit account earning perhaps 1% return. Instead it invested its assets and achieved a growth of 10.4% in the year.  Would Jesus have been happy with that stewardship of the money?

The church spent some of the money that they received, but at the end of 2020 the assets of the church had grown by £500,000,000 to £9,200,000,000.  Is God blessing that church with growth?

“You say, ‘I am rich; I have acquired wealth and do not need a thing.’ But you do not realize that you are wretched, pitiful, poor, blind and naked. I counsel you to buy from me gold refined in the fire, so you can become rich; and white clothes to wear, so you can cover your shameful nakedness; and salve to put on your eyes, so you can see.”

Over Christmas, a small church agreed to spend £1000 to make up food hampers for those on Free School Meals.  As a result, fifty families were blessed.  People were inspired to donate towards the cost of the parcels, which meant that it actually cost the church nothing.  Was God rewarding their generous spirit?

I saw a Facebook post recently that made me think:

It is so easy to criticize those who have more money than us.  But we could equally say:

There is a charity, set up by a Christian pastor, which buys and builds houses that are loaned to local churches to house and support vulnerable homeless people.  So far they have housed 1226 people.  They raise the money through people investing in their project rather than by donating money.  They offer a 5% financial return on investment so that investors have the twin benefit of knowing that a homeless person is being housed and loved, and getting an above average return on investment. (https://www.greenpastures.net/)   The charity is growing; does that make Jesus smile?

We may worry about money; it is natural.  Everything today is described by its economic value, or the cost to do it; phrases and a culture used to justified austerity.  In such an environment it is hard not to put a financial value on everything, and to be thrifty.  Consider another quote that I came across said:

“The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum. That gives people the sense that there’s free thinking going on, while all the time the presuppositions of the system are being reinforced by the limits put on the range of the debate.”  Noam Chomsky

That is today’s truth. Greed is now accepted as good in this country. People simply debate how much greed. But we don’t call it greed, we use phrases like ‘reserves’, ‘savings’, ‘retirement plan’ to avoid confronting whether we should be keeping our money to ourselves.  Jesus said:

“Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal.  But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal.  For where your treasure is, there your heart will be also.”

Dealing with money is not easy, but it is SO important.  It must not become our treasure, but it is certainly a tool.  It allows us to be a blessing to others in as little time as writing a cheque – and time is a stress for many. It blesses us to bless others, but if we agonise about the smallest financial decision then our worrying steals our time, our energy, and can lead to conflict!  We need to train ourselves to be instinctively generous.  We might reflect on these phrases of Jesus, remembering that he spoke them because he loves us; because they are good for us:

“Therefore I tell you, do not worry about your life, what you will eat or what you will drink, or about your body, what you will wear. Is not life more than food, and the body more than clothing?”

“Give to everyone who asks you, and if anyone takes what belongs to you, do not demand it back.”

“None of you can become my disciple if you do not give up all your possessions.”

And as St Paul wrote:

“Remember this: Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously. Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.  And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.”

A Christian way to stimulate the economy.

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Economic growth is seen as a good thing.  More economic activity generates more taxes and so allows the government more money to spend on healthcare, education, and welfare.  Society benefits from extra spend on these issues.

But forecasters say that economic growth is low and predicted values are reducing.  It is the government’s responsibility to try to improve economic growth.

The present chancellor also believes that it is beneficial for the government to ‘balance the books’.  In the 2016 budget the chancellor has said that it will be more difficult to ‘balance the books’ because ecomonic growth has slowed down.  He then goes on to propose tax reduction for the better off, and to reduce benefits to the poorest and most vulnerable. In proposing these policies, he is either ignoring or unaware of a fundamental principle:

If the poor have more money, they will spend it.  They need to buy the essentials – food, clothes, rent.  This puts money into the economy, which then grows.

If the rich have more money, they will save it.  They have no basic needs, and fear being poor in the future.  This removes money from the economy and growth slows.

If we follow the basic Christian principle of giving money to the poor, we stimulate the economy and things get better for everyone.  And you don’t have to be a Christian to do it.

The chancellor refuses to do this on our behalf, which makes it more difficult.  But if you have more money than you need, give some to the poor.

Here are some ways to do this:

  • If you are a landlord, charge less rent
  • Pay your taxes, and don’t look for tax loopholes
  • Leave bigger tips at restaurants,
  • Give to anyone who asks
  • Employ people instead of DIY, and pay a fair amount
  • Give to charities that help the poor and needy
  • Give to foodbanks
  • Financially support someone less well off than you are

Give it a try.  You will feel better for it, and it will make a difference.

Financial advice from Money Box Live, or Pope Francis?

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I was listening to the radio program Money Box Live last week. They were talking about pensions. It seems that if you delay taking your pension for a year then the amount of your pension increases by about 10% per year when you do take it. I guess this is a government scheme to reduce spending on pensions today at the cost of increasing it in future years, perhaps when there may be another government in power – but that’s not the point of this article. The thing that caught my attention was that they got a mathematician to describe the best time to take your pension.

The longer you delay, the higher the pension when you take it, but the less time you take it for. So if you know when you are going to die (which you can look up in statistical tables) the mathematician was working out a time at which the total amount of money you receive reaches a maximum.

All very logical and calculable, so why am I writing about it? Because it is a symptom of the cancerous thinking that underlies so many decisions today:
Our goal is to maximise the money we get, even if we only get it on the day before we die.

We forget that the more we have, even when we don’t need it, the less there is for others.

We don’t consider that the schemes we invest our money in minimise costs, such as the wages of the lowly paid, or maximise income, such lending our money at high rates of interest.

We ignore the fact that making decisions on the basis of maximising our income reinforces the extremely unfair financial systems that we have today, where the rich are getting richer and the poor are getting poorer.

It is not easy to turn down opportunities to make more, or spend less. It is natural to want to buy the cheapest milk, or trainers, or energy – but each decision has its consequence.
When we invest to minimise our tax bill, we are placing the burden of paying for our public services on others. We are encouraging our government to introduce ‘austerity’ measures – “sanctioning” benefit claimants if they miss an appointment (in effect, fining them 100% of their income). We place the burden of balancing the government’s books on the poor.

My mother died last year. She didn’t spend the pension she received, and her investments grew, and we were surprised at the amount of money that she left. I have to decide what to do with the money I inherited. Money Box Live would tell me to invest to maximise my income. But I agree with Pope Francis, I reject that basis for my decisions. How about you?

Austerity is Working?

/ Minimalist Christian / 7 Comments

“Austerity is Working” proclaims the headline in The Sunday Times.

Why does this make me angry?  Shouldn’t I be glad that this pain that we are ‘all’ going through is finally working?  After all, ‘we are all in this together’ so isn’t this encouragement to keep taking the treatment?

But what does ‘working’ mean?  Let’s look at some other headline news that I recall recently:

  • More people in work than ever before rely on state support to feed their families
  • Food banks opening and helping thousands (and bizarrely someone claimed that this was a sign of a civilized society, that a few good people try to make up for the ineptitude of the rich)
  • The “lost generation”: young people struggle to find work and purpose.

Is that what we mean by ‘working’?  Surely not.  Let’s look further:

  • 2500 bankers are going to get bonuses of over £1 million
  • 11% pay rise for MPs to take their salaries over £70thousand

If I were cynical I might think that the writer must be referring to the latter two examples.  But no, he is referring to the new god, “the economy”.  This “thing” that we have raised above basic humanity, above compassion, above “loving our neighbour as ourself”.

And who are the priests of this new god?  Not the small people.  Not those who suffered from losing all their savings in the banking crisis, or those whose money bailed out the banks.  Not those who have to pay the extra ‘bedroom tax’.  Not those who are now going to have to work to 66 or older just to feed themselves.  Not those who frequent the foodbanks and rely on state support.

The priesthood are the wealthy.

Compared to many, I am wealthy.  I could pay more tax and it would be no more than a minor inconvenience. But it makes me ashamed that we have a government who would rather tax the poor than risk offending the rich.  Why do we not have a government who would close the budget deficit through taxing the higher paid, or tackling obscene bonuses, and a rich class who would willingly support them?

I have not suffered at all in this economic crisis.  I continue not to suffer.  And neither do any of our MPs, or any of those who administer the economy.  Neither does Mr Johnson, who openly advocates greed as good.

I am ashamed, but helpless.  I cannot see any political party that would change things.  They all worship at the same altar.

I do what I can for those around me, and I’m sure you do to – but it’s not enough.  It’s time for a new politics.  It’s time for another Mandela, or Gandhi; time for a statesman not a politician.

The nation waits, but where is such a leader to be found?

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https://philhemsley.wordpress.com/2012/10/06/basic-economics/

https://philhemsley.wordpress.com/2013/12/27/austerity-is-working-ii/