How the Federal Reserve Oversteps Biblical Principles - Essay Sample

Introduction

Conflicts between religious principles and established government policies have occasionally arisen in the history of the United States. The Obamacare Act is an example of a recent policy that earned the disapproval of Christians (Renaud, 2018). The 2008 economic crisis also raised several questions on various government economic policies and responsibilities, especially among Christians. In such instances, Christians feel that the policies contradict the moral principles established in the Bible. Established by the U.S. Congress in 1913, the Federal Reserve is the country's central bank and one of the most influential financial institutions in the world. It is charged with ensuring that the country's financial and monetary system is flexible, stable, and safe (D'arista, 2016). Though the country turns to the institution in times of economic woes, it is ironically seen as the cause of the woes by some members of the public. It is considered an ethical disaster by some quarters (Ritenour).

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Conflict with Biblical Principles

To understand the functioning of the Federal Reserve from a Christian perspective, this paper will take into account ethics and economics. References to various Biblical teachings will also be made. From an economic point of view, some of the policies adopted by the Federal Reserve such as the inflationary policies can lead to government inflation, monopolization of the process of producing money, as well as other grave economic consequences. The policies also violate the ethic of private property, as stated in Christianity. Therefore, the policies adopted by the Federal Reserve are not only economically disastrous but also unethical. The relationship between property rights and monetary inflation forms the base of the ethics of inflation (Ritenour). Since monopolization of the money production process and monetary inflation violate the principle of private property, as stated earlier, inflation is an immoral economic policy.

To further understand the moral problems associated with inflation, this paper will discuss the debasement of metallic currency. Debasement can be described as an act of using unjust scales through the issuance of money said to contain a specific weight of silver or gold, when it contains less of it in real sense. This practice has persisted since the rulers of ancient times debased metallic money (Ritenour). It is a direct contradiction of the teachings of Leviticus 19:35 and Proverbs 11:1, which speak against the use of false measures and weights. The act, therefore, is seen as theft and an abomination to God by Christians.

Inflation also leads to a redistribution of wealth. Those who receive the new money first have their wealth increased while those who receive it later, or receive none at all, have their wealth taken away. The redistribution occurs as a result of monopolization of the money production process and the exploitation of the monopoly to raise money supply. The Federal Reserve is the government-created monopoly. Taking wealth from some people and transferring it to others with no respect for the voluntary transfer of private property amounts to theft (Ritenour). Theft is a clear violation of one of the Ten Commandments, as stated in Exodus 20:15.

Conclusion

This study has shown that various policies adopted by the Federal Reserve are in direct violation of different biblical principles. Inflation, debasement of the currency, and redistribution of wealth through the government-created monopoly violate ethic of private law as well as other economic laws found in the Bible. Resultantly, conflicts exist between these policies and Christian beliefs.

References

BIBLIOGRAPHY D'arista, J. W. (2016). The Evolution of US Finance: v. 1: Federal Reserve Monetary Policy, 1915-35. Routledge.

Renaud, M. (2018, April 12). Three Reasons White Evangelicals Hate Obamacare. Retrieved from University of Chicago: https://divinity.uchicago.edu/sightings/three-reasons-white-evangelicals-hate-obamacare

Ritenour, S. (n.d.). The Federal Reserve: An Economic and Ethical Disaster. Retrieved from Institute for Principle Studies: https://principlestudies.org/essays/the-federal-reserve-an-economic-and-ethical-disaster/