A Different Kind of Revolution

We have everything, nobody's happy.

Great sermon title, even better commentary!

An Efficient Marketplace

This hit me right between the eyes:

I have a friend who is an attorney with a deep knowledge of the national economic crisis. He made two interesting comments:

He first said that “liquidity” is not the real problem in the market right now—it is that no one knows what anything is worth. So much stuff of questionable value is hidden on balance sheets that buyers no longer know if something is worth what it is trading for, less, or more. So no one really knows how bad things are and cannot put an efficient, valid price on things. In other words, blindness about value. That destroys the logic of the “free market” because efficiency is based on “transparency” of value.

Second, he said that as a result of the first problem of blindness about value, it is difficult to know if persons you are selling to can meet their commitments to you. In other words—blindness about the solvency of parties in the market. That also kills an “efficient” market because it destroys the needed trust that makes the market work.

In spiritual traditions of all kinds, blindness is an old theme—-people who corruptly set out to blind others end up blind themselves. We ignore that wisdom at our peril. Morality, once again, is proven to be fundamental to an efficient marketplace.

Source: N. Gordon Cosby, Conversation with a friend, September 28, 2008

An Economy of Enough

This morning's chapel service here at Luther was led by ELCA Presiding Bishop Mark Hanson. This was a treat. Even if you're not a "church geek" like Anne or me, I would encourage you to take a few minutes to watch/or listen to his sermon. It was thought provoking, convicting and inspirational. I am grateful that God has provided the catholic church with leaders such as Bishop Hanson.

Following worship, Bishop Hanson further addressed the gathered faculty, staff, students and community members about the role of the church in public life. At the conclusion of his talk, he took a few questions and one retired pastor stood up and asked about the church's response to the current fiscal crisis and proposed $700 billion bailout being debated in congress. I think Bishop Hanson stumbled a bit. He complained about the lack of an "economist's perspective" on the situation. It made me wonder why he wasn't prepared to address this question with a specific response.

After spending the rest of the afternoon studying Greek and the Pentateuch, I found my way home to my computer and, as I'm prone to do of late, checked my facebook account. My good friend Becca is involved with the Church of the Saviour in Washington D.C. and just this morning she posted a white paper published by Ulrich Duchrow, a systematic theologian from Germany who has ties to her church. Professor Duchrow makes a very strong argument for an appropriately biblical reaction to the current economic crisis. I would commend his comments to anyone that cares to give it a few moments of thought.

The Financial Crisis in Biblical and Theological Perspective
By Ulrich Duchrow

This was the reaction I shared with Becca:

Now I know what I want to be when I grow up - a theological economist!

I especially appreciated Duchrow's reference of the Exodus/Manna story. I think it is a wonderful reference for how we are to live in communion with God and with each other. I think the traditional interpretation of this text is that God will always give us enough to sustain us. I appreciate the perspective that no matter how much we receive, God will somehow level the playing field so that what we receive is no greater than what our neighbor receives. For me, economic theory revolves around equilibrium and economic forces will endeavor to seek such balance at all times. Unfortunately, equilibrium does not necessarily mean equality. The current fiscal crisis is case in point.

I had occasion to listen to ELCA Presiding Bishop Mark Hanson address the Luther Seminary community this morning. When asked directly about his response to the current fiscal crisis and proposed $700 billion bailout, he stumbled citing the lack of an “economist’s perspective” on the situation. It appears that Bishop Hanson would be well served to consult the work of Professor Duchrow and his proposed strategies for establishing an “economy of enough.” I think I’ll forward this to him.

I did.