I’m not normally one to post my thoughts on political and economic issues. Although I do have opinions about these matters, most of the time I think they aren’t worth much because these issues are generally far more complex than my little pea brain can make sense of.  But, because I have been asked so often lately about what I think about the economy, here goes!

I have increasingly been coming to the conclusion that the United States is not really coming out of its economic woes, and may be in for a good deal worse decline than we have seen to date. Unemployment has remained high, foreclosures on houses continue to increase, banks continue to fail or are taken over by the FDIC, money for loans to businesses remain difficult to acquire and, most of all our governmental decisions have continued to, in my view, be unwise. We are not reducing spending – and we now have incredibly high budget deficits, and our debt continues to grow. The Federal government is not renewing a number of tax cuts – which means tax increases in the not too distant future, and tax increases are not only already here but most assuredly are ready to dramatically increase even further. Most States seem to be following the same patterns – refusing to cut expenses and raising taxes (with some notable exceptions and here).

Today in USA Today we read about disturbing trends in the economic transitions in the private and government sectors:

Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of this year, a USA TODAY analysis of government data finds.

At the same time, government-provided benefits — from Social Security, unemployment insurance, food stamps and other programs — rose to a record high during the first three months of 2010.

But most of all, I am convinced that the financial implications of the Health Care reform will exacerbate all of these unwise patterns, with unforeseen (to supporters) consequences that will be both surprising and destructive. At the same time that we are moving more self-consciously into the welfare state mentality, European nations are coming to grips with the consequences of their welfare policies over the last 50-60 years. Michael Weissenstein, in an online article, “Fiscal crises threaten Europe’s generous benefits,” provides interesting details of the problems for Europeans. He writes:

The system known as the European welfare state was built after World War II as the keystone of a shared prosperity meant to prevent future conflict. Generous lifelong benefits have since become a defining feature of modern Europe.

Now the welfare state – cherished by many Europeans as an alternative to what they see as dog-eat-dog American capitalism – is coming under its most serious threat in decades: Europe’s sovereign debt crisis.

The financial impact of the Health Care reform has not really been felt by the American economy at all yet. When we compound the existing problems we are facing with the undoubtedly heavier burden that will be imposed on the economy by the massively increased taxes, fees, charges and “investments” – I foresee a very different and oppressive economic world than we now see.

The Christian Response: Faith and Singing

Now, of course we can hope to see a repeal of the new Health Care Law. Rasmussen reports that 63% Favor Repeal of National Health Care Plan. No doubt that this would be a good thing.

But, as in the days of Habakkuk (which I encourage all who trust the Lord to read and understand), God’s judgments in the world are confusing and sometimes frustrating. Our response must the same as it was for the faithful Israelites of old: “The righteous will live by faith” (Hab. 2:4; Rom. 1:17; Gal. 3:11; Heb. 10:38). Yes – God brings His judgments in history, and yes the righteous will suffer at times along with the wicked. But the righteous will find life on the other side of judgment if he remains steadfast in faith. Those who trust in themselves, in political leaders, in social programs and international agreements will not either understand what God is doing, and more likely, will neither praise Him for it nor trust Him through it.

Habakkuk came to understand that he must not only trust God in faith, but he also found in this truth a cause to sing (Hab. 3:16-19). When God calls us to worship each Lord’s Day – we sing His praises. In doing so He, by His Word and Spirit, gives us the faith and understanding to trust Him during troubling times.

Here are my Bible lessons on the book of Habakkuk

Tags: Economics, Habakkuk, Politics