Is Economic Crisis Rooted
in America's Moral Failures
(And the Implications on the Presidential Race)
By Randy Brinson
Chairman, Christian Coalition of Alabama
Over the last several weeks, the subprime mortgage crisis, initially thought to be limited to the financial sectors, has now rippled through the entire financial market, with massive losses on Wall Street and affecting the portfolio value of nearly every American and threatening
the economic health of both Europe and Asian
economies, which are so dependent on the spending of
the American consumer.
As we look deeper into the causes of the present crisis
and the previous tech bubble of the late 1990's, we have
to look no further than the narcissism of the American
consumer and business alike. The acceptance of moral
relativism among the American public has fueled an increasing competition for material wealth, no matter the cost. The increasing costs of basic services, such as food, health care, education, and gasoline, along with the stagnation of wages, has led to a widening gap between the have's and the have-not's in America. Caught in the crossfire, middle class families have taken on increasing debt in order to finance better homes in better neighborhoods, better schools, and finance college education. As a result, these families became immersed in a cycle of debt that they could no longer afford, leading to a record number of foreclosures. Unfortunately, this journey for materialism evolved into an insatiable desire to have more at any cost, never satisfying or reaching any lasting contentment. This is conflict with the Biblical principles regarding materialism. In fact, Jesus pleaded with the people of his day to "lay up your treasures in heaven, not in earth, where dust and rust doth corrupt". Unfortunately, too many evangelicals have been caught up in this same behavior, in total disregard to Biblical teachings.
Likewise, lower income families, lacking many of the basic skills to compete in this global economy, have been pushed further into economic despair as they also spend frivolously instead of delaying gratification, causing similar debt obligations that they cannot repay. The moral implications for those caught in the lower income brackets also had significant economic consequences. Lack of moral restrain in the area of sexual promiscuity has led to an increase in single parent homes and out of wedlock pregnancies. Lacking basic education, these households were permanently mired in low paying jobs. In contrast, even in minority households, those with both parents in the home, the incidence of poverty was below 14%. While democrats continue to rail against the poverty in our country, we must realize that if you have a car, home, I-Pod, I-Phone, and X-Box, it is unlikely that you are suffering in poverty. Instead, those have-nots, must dedicate themselves to improve their Go d given talents to make themselves more marketable for our evolving economy.
Those in the upper income brackets are most at fault for creating the economic mess we find ourselves in today. Businesses and professionals, due to their easy access to credit, have been the most indulgent. We have rationalized cheating and gouging each other, whether it is consumer or business related. Men and women cheat on each other, leading to a rampant increase in divorce. This breakup of the American family has led to an increase in single women households, with different addresses and expenses, burdening the economic situation of these households. Women, forced reluctantly into the workplace, find themselves in lower paying jobs, while having to finance a new family and household. Meanwhile, businesses fail to abide by moral codes in the conduct of their business. They regularly sell a product that is defective, but fail to back it up, import products for the American consumer from overseas that are of inferior quality to American products but charge the same to the consumers, and use sexually explicit advertising to entice consumers to make unnecessary purchases. Businesses are referred to as shrewd if they can produce a profit regardless of the means of obtaining the profit.
In order to finance this opulence, banks make risky loans and then sell them to brokers who then sell them again to unsuspecting investors, all the knowing the borrower has no capacity to pay the loan. The social consequences are also significant in that neighborhoods decline as the upward social climb to escape the declining areas of their cities and the associated social problems. Meanwhile, developers buy land, get inflated appraisals, and as business cycles turn sour, they go bankrupt, leaving investors holding the bag. These types of business dealings are just as immoral as those who take on personal debt, and represent stealing as much as someone holding up a bank.
Enough said, what can we do to stop the madness? Democratic candidates rightly point out that business excesses have contributed to the economic crisis and want to punish businesses. But they also want to give more food stamps and tax rebates, which will further increase unnecessary spending and debt. Republican candidates are also partially correct to point to the credit excesses and want to lower the cost of doing business by targeting tax credits for American business to promote jobs and spending. The real problem is excessive consumption and we must enhance savings rather than encourage ruthless spending and worsening debt and make sure any economic relief come in the form of savings incentives.
Most of all, we have to elect leaders, particularly our president, that has a moral compass and a Biblical understanding and moral code based on his relationship with the God of this universe. Experience, whether in government or business, will be inconsequential unless we have leadership to guide our nation with a deep moral conviction and the character of those convictions.
I call on all Christians today to examine which candidate reflects our Christian faith, convictions, and character and support that candidate in order to reverse the economic quagmire we find ourselves in. We can make a difference with our vote.
