Chapter 27: Capitalization

Christian Economics: Teacher’s Edition
A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous (Proverbs 13:22).
AnalysisPoint five of the biblical covenant is succession. It asks: ‘Does this outfit have a future?’
This verse is clear: a good man leaves an inheritance to his grandchildren. We are not told how a good man is supposed to accumulate capital in order to leave it to his grandchildren, but there is no question that this is a moral responsibility. We must therefore begin any discussion of capital with a moral premise: Christian economics is not value-free economics.
In an economy in which there is exclusive state ownership of capital, meaning the tools of production, there is no way that a man can accumulate capital to leave to his grandchildren. He cannot legally own capital. He surely cannot bequeath what he does not own. This verse is therefore a powerful denial of all forms of socialism. This is not apparent on the initial reading, but the conclusion is inescapable. There is no possibility under socialism of an inter-generational transfer of wealth within a family. Capital is not owned by families. It is owned by the state. Therefore, a good man cannot fulfill his responsibilities to God and to his heirs under socialism. This leads to an inescapable theological conclusion. Socialism is inherently immoral.
The focus of this verse is inheritable wealth. Wealth can come in many forms. It can be in the form of consumer goods. They can be sold for money. They can also free up money for investing, since the heir will not have to spend money to buy something equivalent. In most cases, however, inheritable wealth is in the form of either money or readily marketable assets.
This verse deals with family wealth. The section of Deuteronomy 28 that deals with positive national sanctions includes capital in the form of lending, i.e., money.
The Lord will open to you his good treasury, the heavens, to give the rain to your land in its season and to bless all the work of your hands. And you shall lend to many nations, but you shall not borrow. And the Lord will make you the head and not the tail, and you shall only go up and not down, if you obey the commandments of the Lord your God, which I command you today, being careful to do them (vv. 12 – 13).

This post was published at Gary North on July 01, 2017.