The Covenantal Structure of Christian Economics

Book Review (Part 4), by Andrew McColl, 3/3/2015

  1. Why isn’t macroeconomics equally ultimate to microeconomics? The Christian economist should reply that they are equally ultimate covenantally, meaning judicially. The law of God and the historical sanctions of God are equally ultimate, according to the Mosaic law. That is to say, judicially they are ultimate. But economics is more about individual motivation than judicial structure. With respect to motivation, because of the nature of eternal sanctions, methodological individualism has greater motivational power, and therefore greater methodological power, than holism or collectivism. This is why Jesus constantly referred in His parables to individual motivation. Several of them were what I call pocketbook parables. They had to do with money (p.15, 16).

Good economics is neither difficult to understand, nor complicated. It does come back to individuals living in the fear of the Lord. Jesus’ “pocketbook parables” were centred on individuals, and how they handled responsibility and possessions. The economic health of nations is dependent on the wisdom and responsibility of individuals; it cannot be imposed by government from above, which is dictatorship and tyranny.

This should also teach us this: good economic policy should begin with individual choices. Thus individuals as people made in the image of God are actually more important than nations, and should be respected as such.

The socialist doesn’t believe that. He says, “You have to break eggs to get omelettes,” a very revealing statement.

“The Aryan,” Hitler wrote in Mein Kampf, “willingly subordinates his own ego to the community and, if the hour demands, even sacrifices it.”  “The fascist conception of life,” Mussolini wrote in Fascism: Doctrines and Institutions, “stresses the importance of the State and accepts the individual only in so far as his interests coincide with the State.” [1]

[1] Thomas Di Lorenzo, “Fascialism: The New American System,” (www.lewrockwell.com), 11/6/2009.