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Posts Tagged ‘economy’

I was having a conversation about the economy last week, and my friend was talking about how to thrive in a recession.  And I recommended thrift.  Which made me think.  Thrift and Thrive have very similar spellings.  Are they related?

Thrift – c.1300, “fact or condition of thriving,” also “prosperity, savings,” from M.E. thriven “to thrive” (see thrive), possibly infl. by O.N.þrift, variant of þrif “prosperity,” from þrifask “to thrive.” Sense of “habit of saving, economy” first recorded 1550s

Spendthrift – c.1600, from spendthrift in sense of “savings, profits, wealth.” Replaced earlier scattergood (1570s) and spend-all (1550s).

Prodigal – mid-15c., back formation from prodigiality (mid-14c.), from O.Fr. prodigalite (13c.), from L.L. prodigalitatem (nom. prodigalitas) “wastefulness,” from L. prodigus “wasteful,” from prodigere “drive away, waste,” from pro- “forth” + agere “to drive” (see act). First ref. is to prodigial son, from Vulgate L. filius prodigus (Luke xv.11-32).

(see also the American Heritage Definition #2 of Prodigal: Giving or given in abundance; lavish or profuse)

Profuse – early 15c., from L. profusus “spread out, lavish, extravagant,” lit. “poured forth,” prop. pp. of profundere “pour forth,” from pro-“forth” + fundere “to pour” (see found (2)).

Wastrel – “spendthrift, idler,” 1847, from waste (v.) with pejorative suffix (cf. mongrel, scoundrel, doggerel).

Thrive – c.1200, from O.N. þrifask “to thrive,” originally “grasp to oneself,” probably from O.N. þrifa “to clutch, grasp, grip” (cf. Swed.trifvas, Dan. trives “to thrive, flourish”), of unknown origin.

Prosper – mid-15c., from O.Fr. prosperer (14c.), from L. prosperare “cause to succeed, render happy,” from prosperus “favorable, fortunate, prosperous,” perhaps lit. “agreeable to one’s wishes,” from Old L. pro spere “according to expectation,” from pro “for” + abl. of spes “hope,” from PIE base *spei- “to flourish, succeed.”

Flourish – c.1300, “to blossom, grow,” from O.Fr. floriss-, stem of florir, from L. florere “to bloom, blossom, flower,” from flos “a flower” (seeflora). Metaphoric sense of “thrive” is mid-14c. Meaning “to brandish (a weapon)” first attested late 14c. Related: Flourished;flourishing. The noun meaning “literary or rhetorical embellishment” is from c.1600.

To God be all glory,

Lisa of Longbourn

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Proverbs 22:7, “The rich ruleth over the poor, and the borrower is servant to the lender.”

 

The Bible is fairly clear that debt is a bad idea.  The Jews were allowed to loan money to each other, and even to take a deposit – but they could not charge interest.  Only outsiders were to be a source of profit to the Jews.  Proverbs teaches that giving to the poor is much better than lending to them; it is compared to lending to God, who will “repay” the generous man. 

 

Proverbs 19:17, “He that hath pity upon the poor lendeth unto the LORD; and that which he hath given will he pay him again.”

 

Luke 6:35, “But love ye your enemies, and do good, and lend, hoping for nothing again; and your reward shall be great, and ye shall be the children of the Highest: for he is kind unto the unthankful and to the evil.”

 

With this in mind, I have chosen to be neither slave nor master, borrowing nor lending.  I don’t have a credit card, bought my car with cash, and prepay my auto insurance every year.  The most money I owe is paying my share of our family cell phone plan each month, and I try to never get even a day behind.  As a result I have a no credit rating, but I defy an economy built on spending tomorrow’s dollar.  Isn’t it rather foolish of them to base trust on the fact that people are NOT responsible enough to save money ahead of time? 

 

I don’t want to lend money, either.  But living in modern America, to have any sort of normal life one must have a bank.  Banks are institutions that take my money and your money and loan it to others in order to profit from the interest.  The banking crisis of 2008 was precipitated by a ratio of loans to interest received that was too disproportionate to maintain a profit.  The expenses of banks were not being paid by the interest on loans because too many loans were “bad.”  Payments were not being made.  Banks can’t reinvest foreclosed property immediately.  Their funds became tied up, invested in non-liquid assets.  And this is not a bad thing except that they had been too greedy, and left insufficient cash in hand to meet the demands of their customers.  Some of their customers were the depositors, some the borrowers (small businesses were a big concern; apparently they function on future dollars almost exclusively), and many bank clients are paradoxically both.  That this is bad for the economy as a whole is becoming more and more evident. 

 

The practice of profiting from loans (associated with shady characters for centuries) to people in need is hurting individuals as well.  Obviously to give an interest-free loan, or even a “hand up” gift in hard times would be much preferable financially.  Traditionally this would be done relationally, by capable friends who would be able to assess the legitimacy of the need and the efficacy of the gift.  To those not in need loans ought to be less available.  Politically and economically the Levitical law on charging interest to foreigners corresponded to the idea of duties (benefiting the people directly, rather than the government).  To participate in the God -directed and –blessed economy of Israel, a Gentile could borrow money from a Jew, but the Jew was allowed to charge him for this privilege, taking the form of interest.  (This is as covered in the law; it is plausible that Jews could charge other things like duties or rent for market space.)  I suppose that business loans resemble this category, but it is not sound business to rely so heavily on borrowed cash. 

 

Here is where I would like to introduce the concept of investment.  What is commonly considered investment today is more accurately called “speculation.”  It is a risk, calculated or wild – a gamble.  Either a bank is taking a risk on a loan, betting that the interest yield will be profitable and that the debtor will not take off with the money; or an individual or institution is throwing money into stocks hoping the value of the stocks will go up, and that they can sell at a higher price in the future.  Investment is different.  Investment relies on dividends for profit.  Dividends are a share of the profits less than the total profits divided by all the “shares” of stockholders, so that some of the profits may be reinvested in the company for continuing productivity, like farmers not selling all of their produce, but saving some for seed and planting a portion of it the next season.  Sound investing is to give (as in not expecting or requiring the money to be returned) a sum to a company that one believes will be making profits long enough that dividends will meet or exceed the amount of the investment.  This happens over time. 

 

Another type of investment is in assets, which ought to appreciate through supply and demand.  This property ought to have inherent worth by reason of usefulness.  A few common kinds of investment are land, houses, and gold.  A person may also invest in a service, like education, which makes his skills greater and his labor more valuable.  Investing this way does not always require the sale of the investment to profit.  There can be “dividends” on this as well: rent money from rental property, use of a house or farmland, or application of the skills acquired through education. 

 

I understand how the sale of stock arose, and how useful it is.  I’m not opposed to that being an option.  It should not, however, be the common practice of banks, investment companies, or sound long-term investors.  There would be two reasons to sell stock: 1) You can no longer afford the investment.  Liquidity is more essential to you than long-term profit.  2) Your share in the company is losing value in a way that makes you think that no profit will ever proceed from it again.  In this instance, to sell is to take advantage of another investor, profiting from selling them an asset worth nothing.  Like loaning money or running a casino, it is preying on the risky ambitions of foolish men.  It ought to be legal in a free market, but it is not moral. 

 

All this to say that the ideal bank for me would be one that does not loan money, nor speculate in stocks.  Picture a community of people.  Many of them have money to spare, which they wish to store in a safe but accessible location.  They get together and store their money in a bank.  This bank is managed by a man who guards their cash and processes transactions: deposits, withdrawals, checks, debit cards, transfers.  To pay for his services, the depositors allow him to use a portion of the total money in the bank to invest.  At least a portion of the dividends, if not all of them, would pay for the building, the administrative fees, and the banker’s salary.  The investments ought to be diverse, and published to the depositors for review.  If there was sufficient concern that the investments were imprudent, the depositors could attempt to advise their banker or transfer their money to a more trusted banker.  Depositors would understand that not all of their money would necessarily be available for withdrawal or transfer at once, but at a contractual set period after such a request is made.  As always, more deposits are an insurance against a misjudged investment or a large withdrawal.  If the investments are consistently successful enough, a bank may offer its own dividends to all of its clients, or to those whose deposits are large enough (this is done today through “interest-bearing” checking accounts). 

 

This is slightly simplified.  A larger bank would obviously employ more than one investment manager, for example.  I don’t know all the laws involved.  Many banks, I believe, were begun by one wealthy man (or a few partners) who put up his own money to ensure both initial liquidity and sufficient funds to participate in the market at a profitable level.  In fact the whole idea is similar to a trust, in which multiple parties get together in order to make investments too large for their individual capital.  (If I wanted to invest in gold, I am pretty sure the smallest portions I can buy in a portfolio situation are ounces, so if I don’t have enough extra cash to buy one ounce, I cannot invest in gold.  But if my brother and I pool our investment money, we could afford the ounce and participate in that market.)  Trusts are strictly regulated by contracts defining shares, inheritance, selling out, and management. 

 

I don’t think owning stock in a company should be restricted to corporations or investment firms or banks, nor should it take an expert to understand the buying and selling of stocks.  There is a place for the investment firm that lets investors manage their own portfolios as well as for an investment bank such as the one I describe.  If a client is benefiting from the bank-like services of an investment firm, it is fair enough to let those employed by that company control the investments made, even if in the form of creating a list of acceptable investments or advising on investments (veto power), for the security of their business and thus the continued availability of the demanded services. 

 

My idea here is not brand new.  Think of what banks are called.  You can still find some today called such and such “bank and trust,” or “investment bank.”  I want a bank that does not loan money, and one that does not speculate in stocks.  Do you know of any? 

 

To God be all glory,

Lisa of Longbourn

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Autumn’s Eve Pigfest

 

Sunday night, the day before Autumn, I hosted my second ever pigfest.  We held a potluck autumnal feast that looked fantastic laid out on the table.  And by the end of the night we had discovered that it tasted fantastic as well. 

 

Our discussion went like this (remember devil’s advocacy may be adopted at any time): 

 

Proposition 1: Slavery is biblically acceptable. 

What is slavery?  What is the slavery in the Bible?  Does the Bible accept slavery, or merely regulate it; is there a difference?  Is there slavery today?  How does debt come in?  Are there advantages to slavery (especially indentured servitude) to an economy, a society, or an individual slave?  What makes slavery unacceptable?  What role should the church play in a society that utilizes slavery?  In history, has the church been successful in enforcing the Bible’s limits to slavery? 

 

Proposition 2: Unmarried adults should be allowed to adopt children. 

How is this worse than unmarried people working in orphanages?  Isn’t it better for a child to have one loving parent than none at all?  What are the legal implications when this is allowed?  Is this a selfish decision?  Does a one-parent household enable the parent to spend time with children, or are they raised essentially in an orphanage anyway, by being left to daycare?  If true religion is caring for widows and orphans, should single people be excluded?  How does having children as a single person affect other responsibilities or callings?  Is an unmarried woman less likely to get married if she has a child through adoption?  What about an unmarried father? 

 

Proposition 3: Cohabitation before marriage is the prudent thing to do. 

If everybody does it, how can it be bad?  Shouldn’t you test out a marriage before you make a lifetime commitment?  Are those advocating cohabitation in successful relationships or marriages?  Are they good people?  What is a Christian’s witness if he/she lives with their partner before marriage?  Many people applaud those who wait until engagement for cohabitation; is there any validity to that?  How long a cohabitation is advocated?  Does cohabitation actually sabotage the relationship, whereas starting with commitment (marriage) would enable the relationship to thrive and function?  Is marriage too big a hassle to interrupt a romance?  How should a pastor react to a couple who has been cohabiting?  Should he marry them ASAP or encourage them to repent?  Ought he to refuse to marry a couple living in sin?  Are they still living in sin after a wedding if they have not repented?  What role does a pastor have in a marriage?  Is it endorsement, witness, mere formality?  What about the law?  What makes a marriage? 

 

Proposition 4: We (the US government) should kick out illegal immigrants. 

Where would we kick them?  What would prevent them from coming right back?  Who will pay for deportation?  (It was suggested that the immigrants themselves should be forced to pay, if they can.)  Would this be good for the US economy?  Would it be tolerable for the US economy?  Has the population of illegal immigrants already hurt our economy (for example in the housing crisis)?  How does the lack of border enforcement reflect on our laws?  Are illegal immigrants typically otherwise law-abiding citizens?  What about language issues?  Isn’t America a melting pot?  Shouldn’t new immigrants be expected to assimilate just like immigrants from decades and centuries past?  Could we allow illegal immigrants to remain in the US if they followed a procedure for attaining legal status and citizenship?  Is there a risk to national security?  Since the waiting list for legally entering the US is so long, couldn’t we change that to make it easier to legally immigrate?  Why do we have limits on immigration?  Do other countries limit immigration?  Do they deport illegals?  Is it illegal to be in our country or illegal to get into our country?  Wouldn’t annexing Mexico solve our problem?  Would Mexico welcome that? 

 

Proposition 5: There are some situations in which extreme violence is justified. 

Who decides?  Is self defense the only situation?  What about defending others?  Defending innocents?  What about violent interference with the murder of unborn children?  Does defense only cover defense from murder, or can it be defense from torture or rape?  What about capital punishment?  Is it ever right to take a life?  Is it right to do nothing when lives are at risk – do I have the right to refuse to take a life or use violence if myself or other “innocent” bystanders are at risk of death?  Can I take an innocent life in order to save other lives?  Suppose a two year old is intentionally aiming a gun and pulling a trigger; should extreme violence be used against him?  Why is the Mosaic law so confusing: day or night, inside the threshold or outside, defending life, defending property…?  Does extreme violence refer only to violence leading to death, or to torture, etc.? 

 

Proposition 6: Reading books written in other languages and other eras should be done to encourage independent thought. 

Is independent thought desired?  Can translated works count?  How is that different from traveling to other parts of the world?  Does reading sufficiently immerse you in the culture to widen your perspective?  (It was pointed out that language is often imbedded in culture.  Language is formed to express a certain way of looking at the world, like the difference in description when emphasis is on texture rather than color.)  In what ways does your thought become independent?  Is this practicable?  What about those who don’t read?  Do movies count?  Foreign films with English subtitles? 

 

Proposition 7 (which was interrupted before actually beginning by the coming of 9 PM and the need to go home): Idealism ought to be valued over pragmatism. 

What on earth is idealism and pragmatism?  Do they always contradict?  Is it ultimately possible for them to contradict?  Which ideal? 

 

Some of my favorite things:  People were willing to play devil’s advocate.  The time before the debate enabled a lot of people to meet each other (and one family’s tire to be changed).  There was a lot of participation.  Pigfest format keeps a debate from wearing out the disinterested.  Everyone fit in my house.  One of my friends brought her two infant daughters.  It rained just as the party started, with the sun still shining.  Cleaning up wasn’t too hard.  People had a good time.  I’m able to remember the discussion half a week later. 

 

Things I’ll do differently next time (Nov. 1):  Have more chairs.  Don’t aim for a main meal, but do lots of snacks instead.  Pray by myself ahead of time about my attitude and perspective.  Think more about proposition ideas I might offer and how to present them in the most discuss-able way possible.  Review the rules before we start. 

 

Considerations:  Maybe prescreen propositions.  Increase time from 15 to 20 minutes.  Enlist a new (louder, more aggressive) moderator. 

 

To God be all glory,

Lisa of Longbourn

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