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A Reformed Approach to Economics: Christian Reconstructionism

he impact upon economic thought of the Protestant Reformation was seen across Western Europe, in England, and in North America in the sixteenth and seventeenth centuries. In particular, Christians Tguided by the teaching of the Reformer John Calvin approached their work, their finances, and their participation in civil life from a perspective they understood to be explicitly grounded in the law of God. They sought guidance in Biblical law regarding questions such as interest-taking on loans and the proper amount to pay for the laborer’s wages. The first generation of New England Puritans went so far as to make law binding upon their communities in these areas as well as in non- economic matters. In recent years, some Christian thinkers in the Reformed tradition have advocated a similar approach to social and economic questions, utilizing the appellation of “Christian Reconstructionism.” Moving beyond pub- lished works in the 1960s which were essentially critiques of modern , politics, and education, the Reconstructionist writer Rousas John Rushdoony produced The Institutes of Biblical Law in 1973. The Insti- tutes extensively examined the Ten Commandments as the expression of God’s law. Much in the vein of the New England Puritans, Rushdoony’s work sought to develop the implications of Biblical law for modern eco- nomic and political institutions. Following Rushdoony’s lead, other Reconstructionist writers in the past twenty years have generated a series of published materials advocating the application of Biblical law to a myriad of social questions. The teachings of Christian Reconstructionism have been increasingly AUTHOR influential in recent years for evangelicals advocating social policy in vari- Edd S. Noell is ous mainline denominations and independent churches. They have also Associate Professor induced a fairly strong and at times quite critical reaction both within and of Economics at outside the Reformed community; among the sobriquets given to Recon- Westmont College. structionists are “triumphalists” and “the liberation theologians of the right.”

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This survey begins with an examina- …the , as the infallibly inspired tion of the methodology and key doctrines revelation of God to sinful man, Reconstructionists of Christian Reconstructionism. In the next stands before us as that light in terms have sought to of which all the facts of the created section, the Reconstructionist critique of fashion a modern economic methodology is as- universe must be interpreted. All of finite existence, natural and redemp- sessed. Some examples of Reconstruction– uniquely Bibli- tive, functions in relation to one all- cal economic ist economic policy as derived from Bibli– inclusive plan that is in the mind of cal law are then outlined. Following that God. Whatever insight man is to have epistemology. section, an evaluation of the Reconstruc– into this pattern of the activity of God tionist approach to economics is presented. he must attain by looking at all his The study concludes with an anno- objects of research in the light of tated bibliography which covers many of Scripture (The Defense of the Faith, the works of Christian Reconstructionists p. 107). pertaining to economics, as well as se- Furthermore, Van Til contended that any lected other Biblical and theological Christian apologetic that conceded a studies. There are over 100 published measure of autonomy to non-Christian books and journal volumes devoted to man in any area of life, however slight, Christian Reconstructionism. Representa- was heretical. tive Reconstructionist writers include Taking their cue from Van Til’s Rushdoony, , , apologetic method, Reconstructionists Gary DeMar, and . Of this have sought to fashion a uniquely Biblical group, North is the one who has written economic epistemology. North writes that the most on and economics (at “the first principle of Christian economics” least 35 books, and numerous journal is its dependence on Biblical revelation as articles), and thus his works will draw a a normative standard (Unconditional large portion of the focus of this survey. Surrender, p. 147). Reconstructionists insist that there are fundamental principles I. Methodology and Principle which are either explicitly stated in Doctrines Scripture or can be derived from the Bible Arguing that the Scriptures provide for numerous specific areas of life. Thus, the only sufficient starting point in the Scripture teaches that God as Creator is the defense of the faith, Reconstructionist owner and governor of all creation. The writers turn to the apologetic methodology orderly creation reflects an orderly, developed by the Reformed theologian sovereign God. Men and women, created . Van Til advocated a in God’s image, have been given the task presuppositionalist approach to of subduing the earth and ruling over it. , declaring that it is impossible This is expressed in Genesis 1:26-28, the to prove the validity of Christianity to dominion covenant.1 As stewards of the unbelievers. Rather, as part of regenera- earth, we are to act as God’s appointed tion, the converted person comes to contractors. The Bible supplies the blue- presuppose certain truths, including the prints for our actions.2 validity and authority of Scripture. The The notion of the dominion covenant Bible attests to its own truth. In turn, the supplies a second key element of Recon– truth of the Bible is the Christian’s starting structionist economics. The specific tasks place in regard to every concern of life. It involved in fulfilling the mandate of the is the master lens by which the believer dominion covenant are found in the rest of must perceive all the datum of created life. Scripture. Reconstructionists seek to expli– In one of his primary works on apologetics, cate this Biblical teaching in their writings. Van Til wrote that The Reconstructionist emphasis on the

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fundamental doctrines of the authority of binding on Christians today. 4 Reconstruc– Reconstructionist Scripture in every area of life and on the tionists who espouse theonomic postmil– writers [make] dominion covenant reflects the influence lennialism assert that worldwide victory an extensive of the theological precepts of Calvin.3 One for the gospel will result in adherence by critique of the example is found in Calvin’s development all nations to the standards found in of the implications of the dominion cove– Biblical law.5 methodology nant for man’s work. For Calvin, man’s life Christian Reconstructionists are fond of modern in its entirety is understood as a response of contrasting their position with that of economists. to the calling of God. Calvin sought to dispensationalism. Dispensationalists counter the medieval notion that a calling contend that only Old Testament laws applied only to special areas, so-called repeated in the New Testament are “holy orders,” for which a special conse- binding today. Reconstructionists assert, cration was needed. By way of contrast, however, that unless an Old Testament Calvin stated in the Institutes of the Chris- law is specifically abrogated, it is still tian that whether one labors in an obligatory. The New Testament has obscure job or as a magistrate, one’s work abrogated the ceremonial elements of the must be regarded as true service to God: Mosaic law (such as animal sacrifices) “no task will be so sordid and base, pro- since they were fulfilled in the life and vided you obey your calling in it, that it ministry of Jesus Christ. The civil elements will not shine and be reckoned very pre– of the law are still binding today for cious in God’s sight” (Book 3, 10, 6, p. 725). Christians; indeed, they are binding as In a related way Calvin placed great God’s law for all nations.6 stress upon the worthiness of labor. Labor was given to man in the garden before his II. Critique of Modern Economic fall. Though now it involves toil and strug– Methodology gle, it is still part of the Lord’s mandate for Reconstructionist writers have utilized those made in His image. Calvin could not Van Til’s presuppositional apologetic as view work as payment for sin; instead, he the basis for an extensive critique of the understood work to be a divine vocation methodology of modern economists. Per– to which man is called. He opened up a haps North overstates the case, but he has way to see many varieties of occupations surely caught the essence of the modern as callings to which men are particularly economists’ perspective on their own appointed by God and by which they may discipline: “The autonomy of economics as worship Him. Reconstructionists follow a science from ‘metaphysics,’ namely any Calvin in seeing man’s task as fulfilling the revelation from God, is the hallmark of all dominion covenant through devotion to contemporary economic practice” (“Eco– God’s particular calling. nomics,”p. 78). Lionel Robbins supplies a Reconstructionists understand this good illustration of this viewpoint: task in terms of bringing the whole world The economist is not concerned with under the rule of God’s law. This under- ends as such. He is concerned with standing is derived from two other prin- the way in which the attainment of ciple doctrines associated with Reconstruc- ends is limited. The ends may be tionism: its postmillennial eschatology and noble or they may be base. They may its theonomic approach to ethics. Post- be ‘material’ or ‘immaterial’—if ends millennialism contends that prior to the can be so described. But if the attain– Second Coming of Christ, his kingdom ment of one set of ends involves the sacrifice of others, then it has an will be manifested in a worldwide conver- economic aspect (p. 25). sion to Christianity. The theonomic doctrine affirms that every detail of God’s Since the economist is entirely a techni- law as given through Moses is explicitly cian, North notes that he “may only advise

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men in terms of their stated ends.” North basis. Coase argues for the economic effi– points out the logical conclusion of this ciency of dealing with a negative external- Non-Christian neutrality: ity such as environmental pollution on the defenses of I suppose the economist in Nazi basis of established and enforceable pro– the market Germany or the Soviet Union in the perty rights. The initial arrangement of invariably fail. 1930’s would not have questioned property rights is not pertinent to the the national ends of liquidation or establishment of the social costs of the ex– mass imprisonment; he only would ternal damage to the environment. North have examined the technical contends that Christians guided by Scrip– question concerning the least tural imperatives cannot focus on efficiency expensive way of accomplishing alone and ignore the issue of the initiation these ends (“Economics,” p. 80). of the violation of property rights; this is a The autonomy of economics from ethical matter of “judical equity” (The Coase ends may lead to some perilous conse- Theorem, p. 45), which Coase is unwilling quences. to consider. Coase’s work is thus Among those economists that are an example of the epistemological concerned with the role of reason in the crisis of modern economics: grounded social sciences, and who generally support in the hypothetically value-neutral the free market process of allocating epistemology of modern economics, resources, there are essentially two groups. its conclusions are neither morally On the one hand, the Chicago School neutral nor consistent with the ideal wants economic theory to prove itself by of private property (The Coase its performance in making falsifiable Theorem, p. xvi). predictions. Its approach to the discipline North seems to be more sympathetic is empirical and inductivist. The Austrian to Austrian economics. He applauds F.A. School, on the other hand, focuses on Hayek’s concept of purposeful action purposeful human action. It is character- within a legal framework supportive of ized by an a priori deductivist economics. market processes (Dominion Covenant, p. North offers a substantive critique of 342). Hayek also affirms the need for both schools. The Chicago School induc– morality as the foundation of the market tivism, in rejecting the significance of the system. But he cannot supply the basis for validity of starting-point assumptions in the moral foundation from his own economic analysis, loses rationality in its system. Hayek can only proclaim his faith economic methodology. North argues that that market processes evolve in a way that only the Christian doctrine of divine crea- best serves man. Reconstructionists tion, with its emphasis on a system by contend that Christian economics alone which to comprehend facts (a system due has both the source of rationality and a to the counsel of God), can prevent econom– moral foundation. Non-Christian defenses ics from falling into pure irrationalism. of the market invariably fail: Moreover, North affirms that the Without the presupposition of the Chicago School approach to economic dominion covenant, and the reve- epistemology flounders in attempting to lation of God’s design for eco- evaluate the private and social costs asso– nomic institutions and relationships, ciated with policy actions. Chicago School there can be no logical, consistent, theorists desire to ground this evaluation reliable, self-attesting science of on the untenable basis of interpersonal economics, whether deductivist or comparisons of utility. In addition, North inductivist (logical or empirical) has recently pointed out the difficulties in (Dominion Covenant, p. 355). the attempt by Ronald Coase to establish North has made a significant contribution his theorem on social cost on a value-free to modern Christian social philosophy by

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emphasizing the drawbacks of non- system evolved out of the choices made by ...Reconstruc- Christian appproaches to economics. merchants and consumers regarding the tionists under- Outside of the Reconstructionist literature, desirability of using these metals (first as stand Biblical one searches in vain for more than a ingots, and later as coins) for exchange. law to be coher- handful of thoughtful, Biblically-based The decision was not mandated by gov- critiques of non-Christian economic ernmental officials. As North observes, ent, intelligible methodology. “The state only affirmed what the market and apposite had created. It collected taxes in gold and for economic III. Economic Applications of Biblical silver. It thereby acknowledged the value matters... Law which market forces has inputed to gold To understand Reconstructionist and silver. But the state didn’t create economics we must consider the law given money” (Honest Money, p. 22). North by God to Israel. The Ten Commandments recognizes that “the state’s decision about declared at Mount Sinai are the fundamen- what to tax clearly had an influence on the tal elements of the Mosaic Law. Rushdoony kind of money people accepted, but that has carefully argued that the case laws of decision was tied to the existing kind of the Old Testament are specific examples of money that was already being used by the applications of the Ten Commandments people” (Honest Money, p. 24). (Institutes of Biblical Law, pp. 10-12).7 Thus As money, gold and silver were the commandments prohibiting theft and measured in shekels and talents. These were false witness (Exodus 20:15,16) have some both units of weight and monetary units. specific case law applications found in the North notes that “standards of weight Pentateuch which apply to economics. made it possible for people to test the full These include the regulations of scales and weight (precious metal content)…” (Honest measures and multiple indebtedness. Money, p. 34) of the gold and silver ingots. I will consider several examples of the This was significant because Israel was Christian Reconstructionist application of told by Yahweh that sellers were to be the Mosaic Law to our modern economy. honest in their dealings: They include the elimination of fractional You shall do no injustice in judg– reserve banking and the promotion of ment, in measurement of length, monetary stability through the abolition of weight, or volume. You shall have the governmental monopoly over the just balances, just weights, a just money supply. Also discussed are the ephah, a just hin. I am the Lord your Reconstructionist approach to the law of God, who brought you out of the Jubilee and its application to questions of land of Egypt (Leviticus 19:35-36). the distribution of wealth and . It Later in Israel’s history, the author of should be emphasized that Reconstruc- Proverbs affirmed that “A false balance is tionists understand Biblical law to be an abomination to the Lord, but a just coherent, intelligible and apposite for weight is his delight” (11:1). In the Old economic matters; it is not opaque, nor too Testament balances referred to scales. complex for modern application.8 Weights, ephah, and hin were forms of measurement. The party defining the Monetary Economics weights is not named in these passages. Christian Reconstructionists have Much like the widespread use of gold and addressed the question of the proper silver, certain weights and measures had monetary system for an economy. North simply come to be standard. Sellers were stresses the role of private decision- to have accurate balances and weights making in regard to the medium of according to the commonly accepted exchange in ancient Israel. Gold and silver standards. North argues that since honest coins served as the monetary units. This scales were basic to just commerce, the

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regulation of scales was basic to the would be fraudulent. It would be the ministry of justice. equivalent of tampering with the scales Reconstructionists Injustice was perpetrated by misrepre- (Honest Money, p. 33). are unequivocal sentation of the value of an Israelite North points to the statement of Isaiah in calling for household’s purchase or the worth of a to Israel, given in prophetic judgment: the dismantling farmer’s grain as sold to a wholesaler. This “Your silver has become dross, your wine practice was facilitated by the decline of mixed with water” (Isaiah 1:22). The of the welfare barter and the rise of money as a medium prophet was condemning the spiritual state. of exchange. North observes that “When condition of the people, who “were people started bringing metals to the corrupt in their hearts” (Honest Money, p. marketplace, it became easier for sellers to 39). Isaiah pictures this by pointing to the use dishonest scales” (Honest Money, p. use of dross. Dross was cheapened metal, 30). Thus fraud in weights was essentially which in ancient economies was found to fraudulent money. be mixed with the silver or gold in an The poor in particular were victimized ingot. It would be added in to the gold by dishonest balances. They were least before it was shaped into coins. Obviously able to protect themselves and they one could produce many more “gold” suffered the most from the consequences coins this way. of dishonest measures, as the prophet This practice marked the beginning of Amos affirmed. In Amos 8:4-6 we read inflation. Buyers and sellers were passing Hear this, you who trample the dross-filled silver or gold coins as if they needy, to do away with the humble were of the standard quality. More and of the land, saying, ‘When will the more of these coins would flood the mar- new moon be over so that we may ket, and prices in the economy would rise. buygrain, and the sabbath, that we North points out that in 1965 the U.S. may open the wheat market, to make monetary authorities formally substituted the bushel smaller and the shekel silvery plated copper coins in place of bigger, and to cheat with dishonest silver currency. North argues that then the scales, so as to buy the helpless for silver became “entirely dross” (Honest money and the needy for a pair of sandals, and that we may sell the Money, p. 42). refuse of the wheat?’ In general, the phenomenon of cur- rency debasement stems from the state’s God declares he will bring judgment on monopoly power over the production of Israel for this practice. money. This problem extends as well to The Biblical injunction for a consistent the power of the federal government to monetary standard raises some important issue fiat money. With no limits on the questions. One of the functions given to issuance of paper money, the purchasing our central bank in the Federal Reserve power of the dollar suffers tremendously. Act is “to furnish an elastic currency.” The result is an economy suffering Reconstructionists ask, is this consistent through inflation. with the Biblical notion of unchangeable Reconstructionists have discussed the weights and measures? gold standard as a remedy to the problem Furthermore, Reconstructionists of the state having the power to print question the practice of currency debase- unlimited amounts of paper money. Such ment in relation to the creation of money. a provision might involve requiring “the In ancient Israel, coins were fashioned out state to define its official currency in terms of gold and silver ingots. An ingot would of weight and fineness of gold, and then to contain a specific quanitity of gold or buy and sell gold at this defined price” silver of a known fineness. To tamper with (Honest Money, p. 107). In North’s view this either the weight or the fineness of the coin approach opens the door for state control

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over the money supply. He declares that tions. First of all, “there would be no state North argues “A traditional gold standard is better than or Federal charters for banks. The state- that multiple a fiat (unbacked) money standard, but it granted monopoly of money creation indebtedness transfers too much sovereignty to the would end…Only one legal rule would state.” What would be preferable would be restrict banking: no fractional reserves” violates to “have the state policing private issuers (Honest Money, p. 108). North discusses an Biblical law. of gold and warehouse receipts to gold, example in which reserve requirements and then to collect its taxes in a specified are increased by 5% annually, and notes form of private currency” (Honest Money, the deflation and its consequences which p. 107). According to this policy, private would ensue (Honest Money, p. 128). individuals will freely determine which Second, deposits made in banks would form or forms of money become most be made for one of two types of accounts. acceptable. One account would hold funds for which A second criticism of modern mon- there would be no interest paid, but upon etary systems focuses on fractional reserve which the depositor could write checks. banking. Banks make loans based on Banks might profit by charging a fee for reserves which are only a fraction of the this privilege (Honest Money, p. 108). The bank’s deposits. Fractional reserve bank- other depository account would serve as ing facilitates the practice of multiple the basis for loans, which could be made indebtedness on the part of banks. for “a specified period at an agreed-upon North argues that multiple indebted- rate of interest” (Honest Money, p. 108).9 ness violates Biblical law. In Exodus 22:26- North adds that “There would be no 27 there is a requirement laid upon the provision for early withdrawal by the lender to return items needed for survival depositor,” thus preventing violation of (such as a cloak which functioned as the law against multiple indebtedness, for covering for the evening) which have “Two people cannot write checks on the served as the borrower’s collateral. North same deposit, depositor and borrower” observes that borrowers could potentially (p. 108). In this way utilize the garment as collateral with other Every transaction would be time- lenders unless the original lender kept the specific. There would be no long- item during daylight hours. This would term loans without long-term lenders. prohibit the creation of multiple loans This would protect the banking based upon a solitary item of collateral; system from bank runs. It would also thus, “…by permitting the lender to protect the community from money demand half a day’s collateral, Biblical law being created by fractional reserve reduces the temptation on the part of bankers (Honest Money, p. 109). borrowers to commit fraud” (Tools of Government regulation of banking Dominion, p. 739). would still be relevant for imposing Of course, in contemporary banking penalties for those who “tamper with the systems, depository institutions create a scales” (Honest Money, p. 103). North multiple of new loans and deposits based explains that “Government bank examin- on initial deposits into the banking system. ers would check the banks in the same North affirms that this violates the Biblical way that they check scales of retail sellers. injunction against multiple indebtedness. They would see to it that every loan had a It is possible to consider then some of corresponding deposit” (Honest Money, p. the guidelines for a monetary system 109). In this way the monetary system which follows Reconstructionist principles would be protected from multiple indebt- in regard to the medium of exchange, edness. deposits and loans. We can sketch the North and other Reconstructionists basic outlines following North’s sugges- contend that the laws stipulating no false

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balances and prohibiting multiple indebt- not a coercive agency of wealth edness are still binding as righteous redistribution (Moses and Pharaoh, ...Jubilee law is standards upon which modern monetary p. 214). an example of systems should be based. They have not Reconstructionists desire a transformation an Old Testa- been abrogated by the New Testament. of the state’s role in modern microeco- nomic and macroeconomic policy. Further ment law which Additional Applications of the Law examples of structural changes based on Reconstructionists Christian Reconstructionism finds these principles (beyond those discussed claim did not other significant applications of Biblical in relation to the monetary system) include have poverty law in regard to private property, pollu- the implementation of a proportional tion, debt, labor, economic growth, taxes, income tax system, and elimination of alleviation as and charity. In general, they argue that governmental transfer payment arrange- its primary these applications not only are compatible ments which serve as redistributive me- intention. with capitalism but provide the necessary chanisms (North, The Sinai Strategy, pp. structural foundations of a capitalist 171-176). system. This is particularly true with Reconstructionists are unequivocal in regard to the legal aspects of a market- calling for the dismantling of the welfare based economic system. North states that state and the administration of aid to the Specific aspects of the legal system, poor through private means. North argues such as the honoring of private that provisions for widows, the fatherless, contracts, the respect for private and strangers are morally mandated by property, the non-discriminatory Biblical law: nature of the tax system, and the To protect these groups, Biblical law restriction of civil government to imposes morally mandatory forms the preservation of order, primarily of giving on the part of neighbors. by preserving public peace and But there is no civil sanction attached preventing private fraud and to the moral obligation. Biblical civil coercion, have made it possible for law does not compel people to do capitalism to flourish. All of these good things for others; it imposes aspects are basic to Biblical law sanctions on those who do evil (Moses and Pharaoh, p. 214). things to others. Biblical civil law North then goes on to list four principles is therefore a barrier to the creation of Biblical law derived from the case-law of a state-funded, state-mandated applications which are integral to the welfare system (Tools of Dominion, stability and preservation of a capitalist p. 686). economy: Reconstructionists and others sympa- First, the concept of the covenant thetic to their position have challenged the between God and man undergirds Church to rethink its position on welfare the right of private contract. Second, and offered provocative examples of the commandment against theft is private eleemosynary actions by Christians basic to the extension of the rights of (cf. Grant, Bringing in the Sheaves). private property. Third, the tithe, as Non-Reconstructionist Christian a fixed pecentage of a man’s income, thinkers have utilized the Old Testament preserves the non-discriminatory as a source of appeal for wealth redistribu- nature of taxation. Fourth, the en- forcement of honest weights and tion by the state. Ron Sider, for example, measures is indicative of the Bible’s sees the law of Jubilee which returned land view of the civil government as in Israel to its original owners every fifty essentially a restraining institution, years as a model for structural change not a positive, initiating force in needed in modern capitalist economies. economic development, and certainly Sider contends that if Christians would

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model this principle, secular governments regarding the Reconstructionist her- Reconstructionist would likely follow the example (pp. 110- meneutic which call for further evaluation. writings have 112). There would be a dramatic improve- drawn a lot ment in the alleviation of poverty. IV. Evaluation of critical Interestingly, the Jubilee law is an Several observations can be made example of an Old Testament law which regarding the approach to economics comments in Reconstructionists claim did not have found in Christian Reconstructionism. Christian poverty alleviation as its primary intention Reconstructionist writings have drawn a circles, some of and is no longer binding according to the lot of critical comments in Christian circles, which are not New Testament. Chilton writes that some of which are not substantiated by a Shocking as it may seem, the law of careful reading of Reconstructionist works. substantiated the Jubilee was not a Poor Law. That One simplistic criticism of North’s ap- by a careful is, its primary intent and function proach is that he has baptized Austrian reading of had nothing to do with the allevi– thought (or Chicago-school economics) ation of poverty. Certainly, it did Reconstructionist and presented it as “Christian Economics.” affect the status of certain poor One is tempted to make this claim because works. people. But that was only incidental of the many similarities to Austrian policy to its true purpose (p. 94). found in the reconstructionist literature: Reconstructionists argue that the primary the call for privatization of money, the purpose of the law was to preserve the limitation of government activity in ownership of land in the hands of the relation to the economy, and more broadly families of the twelve tribes of Israel and speaking, a general endorsement of free- not outside their hands in the ownership market capitalism. Such a criticism ignores of Gentile resident aliens. Its function also North’s extensive philosophical critique of was to “keep the nation politically and Ludwig von Mises’ value-free economics, economically decentralized.” This was Hayek’s arguments on the rule of law, done by prohibiting “the consolidation of Coase’s epistemology in relation to his rural land by the Levites or the king” famous theorem, and so on. In his critique, (North, Tools of Dominion, p. 229). North makes a valuable contribution With regard to the second claim, toward the formation of a Christian North contends that the Jubilee law, along approach to economics by distinguishing with the laws dealing with foreign slavery, Christian economic epistemology from has been fulfilled by the minstry of Jesus libertarian defenses of capitalism which Christ, as indicated in Luke 4:16-21. North purport to be methodologically neutral or writes that “This means…that the Old value-free. Testament’s ten-generation slave system The alternative position Reconstruc– for foreigners has been legally abolished. It tionists set forth accepts the modern eco- also means that the land tenure laws of nomic notion of the self-interested nature ancient Israel are legally abolished” (Tools of man, yet rejects the methodological of Dominion, p. 718). Now the ownership of distinction between facts and values. Most the Kingdom of God has been transferred modern economists believe that values are to the Gentiles; it is no longer “uniquely not subject to analysis. North argues that connected to the land of Palestine…The “The uniqueness of Christian economics is Jubilee’s land-release system is therefore that the Christian economist has specific, no longer judicially relevant in history, concrete Biblical revelation concerning the except as a type of Christ’s redemptive limits of economic theory and practice” work in history” (Tools of Dominion, p. (Introduction to Christian Economics, p. vii). 229). North does not discuss the possible North could go further in his critique of economic relevance of Jubilee for us today, the role of the fact-value distinction in and that raises some interesting questions economics. What are the limits of eco-

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nomic theory according to Biblical values? In regard to Isaiah 1:22, Vickers To what extent does the under-girding acknowledges that currency debasement ...Reconstruc- principle of rational self-interest in modern was a form of exploitation and theft. But tionists often economic analysis become idolatrous (e.g., he writes that North makes an error in recognize only in the form of economic imperialism)? understanding this passage, for North the other Re- What are the limitations of analysis based claims, according to Vickers, that “because on this principle? Can we reduce all of life money in Isaiah’s time was frequently in formed ap- to rational self-interested behavior? The the form of metallic ingots changing hands proaches and Reconstructionists could make a powerful by weight, money should therefore always Anabaptist contribution to dialogue among Christian and only be of this form” (p. 245). Vickers approaches as economists on these questions. argues that the issue is not which form of Reconstructionists have stimulated the money will maintain its value, but rather remotely legiti- thinking of Christian economists regarding the justice by which the monetary system mate models... the applicability of Biblical law to modern is directed. We have a fallen economic economies. They have done so in the system which tends naturally to instabil- framework of an argument which consid- ity. The issue is, how are growth and ers the Christian approach to economics stability to be best maintained? (p. 243). essentially to be the Reconstructionist Thus Vickers believes that our concern approach. North and the other Reconstruc- should be with what determines the need tionists often recognize only the other for a money supply adequate for the Reformed approaches and Anabaptist economy to perform at a satisfactory level. approaches as remotely legitimate models, We should give monetary policymakers and do not consider even these models discretion to supply the proper amount of consistently Biblical. They tend to ignore money to ensure full employment and or dismiss Lutheran and Roman Catholic economic growth. works on economics. In general, this Vickers’ central contention is that the tendency seems to be part of a broader fall of man into sin has affected every area weakness of hubris and condescension of economic life. The presence of sin which is manifested at times in the tone of means economic disharmony. The invis- Reconstructionist writings. Economists ible hand of individual economic interest may be taken aback by the sharp, at times cannot be counted on to bring about vitriolic language aimed by Reconstruc- society’s best interest. We must have tionist writers such as North and Chilton government inter–vention to remedy towards other Christian economists and market actions where they fail. Govern- theologians as well as unbelievers.10 ment direction, if used wisely, can insure Reconstructinists have interacted with greater economic stability. other economists within the Reformed My sense is that Vickers has pointed camp on issues of monetary economics. out one significant way in which the For example, another economist who is a Reconstructionist approach does not fully Reformed Christian, Douglas Vickers, has consider the implications of the fall for criticized the Reconstructionist approach market failure, especially at the macro– for focusing on the form money takes. economic level. Reconstructionists should Vickers says the issue should be its func- consider more carefully how economic tional efficiency. He agrees with North’s policy could be shaped to deal with contention that inflation is immoral, but unemployment, as well as inflation. disagrees with the claim that “‘unbacked Nonetheless, one could still argue that paper money’ is immoral” (p. 241). Infla- Vickers has misinterpreted the monetary tion is not due to paper money or a frac- policy reforms of the Reconstructionists. tional reserve banking system. This is the case made by Ian Hodge in his response to Vickers’ defense of Keynesian

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economics (Baptized Inflation). Hodge as Christians? With regard to the laws that ...Reconstruc- points out that are no longer binding, are they still tionists must The idea is not to search for an economically relevant in some sense? engage the economic good with fixed value, Other Christian economists also focus andselect only this as money… on the applicability of the Mosaic law to larger debate Rather, the idea is to find a com- modern economies. They see the among Chris- modity which governments and Christian’s obligation today being to tian economists bankers will find difficult and “grasp the spirit or purposes of Biblical expensive to counterfeit (p. 170). over the propri- instructions” and then to “seek to fulfill Hodge and North essentially contend those purposes today, and not necessarily ety of either that there is no insurance that government to lift the exact institutions of the Scrip- a thematic or policymakers will act in society’s best tures out for contemporary implementa- specific exegeti- interest. We have no reason to expect that tion” (Mason, p. 13, n. 21). To cite one cal approach the concentration of power in the policy– example in regard to property, consider maker’s hands (the Federal Reserve and that the laws governing land in the Old to applying Congress) will improve on the workings of Testament reflect the family-centered Scripture to the market. Government monopoly has nature of ownership, a principle North economic produced more economic instability as recognizes (Introduction to Christian issues. compared to periods when control over Economics, p. 214). The Old Testament the money supply was determined by the scholar Christopher J.H. Wright has market. Economic instability in the twenti- published two important works develop- eth century has resulted from policy ing this theme not only regarding the land, blunders by policymakers, not market but also Israel’s covenant relationship to failure. In short, Reconstructionists wisely God and among the Israelites themselves point out the pitfalls of government failure (1984, 1990). Yet Wright argues from the in attempts to implement macroeconomic standpoint of seeking to implement the policy to promote full employment. “principles which have universal validity” In sum, I believe there are several undergirding the ancient Israelite institu- critical questions that Reconstructionism tions, not the specific institutions them- must address. They must more carefully selves. Some Christian economists, utiliz- delineate the Old Testament laws that are ing this same position, still find economic abolished by the New Testament and the relevance in the Jubilee principle. Mason exegetical basis for their position in this makes a cogent argument for its applica- regard. They must consider more exten- tion today: sively the issue of the context of the The two clear functions that the ancient agrarian economy of Israel in unique institution of Jubilee in which the Mosaic law was given. There is Lev. 25 (the land return) achieves more work to be done to convince fellow are: (1) to restore a privately-owned Christian economists of some of the productive base to those Israelite specific exegetical conclusions they reach families who had been forced by (in regard to monetary reform as well as circumstances to sell their land; and other policy applications). Indeed, Recon– (2) as a result of this for productive structionists must engage the larger debate property to become less concen– trated in ownership (p. 14). among Christian economists over the propriety of either a thematic or specific Mason’s paper on the relation of Jubilee to exegetical approach to applying Scripture the issue of human capital is a fine ex- to economic issues. And finally, there is ample of wrestling with the economic the core issue of the nature of our relation relevance of the Old Testament laws for to the Mosaic law today: in what sense is it today. binding in full detail, or instructive for us

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Even if one does not accept the key in Christian Ethics. A critique principles of Reconstructionism regarding and interaction with Bahnsen’s thesis the Mosaic law, there are still great ben- is found in Barker and Godfrey, eds., efits for Christian economists in attempt- Theonomy: A Reformed Critique. ing to grasp the underlying purposes of Recently there has been a counter- the economic institutions of Israel and response by theonomists in Gary contemplating their application today. We North, ed., Theonomy: An Informed should consider that Moses declared to Response. Israel, “What great nation is there that has 5 Some theonomists are amillennial in statutes and judgments as righteous as this their eschatology and do not share the whole law which I am setting before you Reconstructionist optimism regarding today?” (Deuteronomy 4:8). Christian the future submission of all the nations economists would find great value in to Biblical law prior to the Second pondering the righteous purposes of the Coming of Christ. laws given by the Creator and their 6 Bahnsen highlights Biblical support application to His creation. for the proposition that Gentile nations are judged for their disobedience to the prescriptions of the law given to ENDNOTES Israel (Theonomy in Christian Ethics, pp. 356-359, 363-364). 1 Some Reconstructionist thinkers notes that God judged pagan nations contend there is a basic five-part through the prophets for violations of structure to all Biblical covenants: economic aspects of the case law, Transcendence/immanence, author- including trade in slaves (Amos 1:6; cf. ity/hierarchy, ethics/dominion, Exodus 21:16; Deuteronomy 24:7) and judgment/sanctions, and inheritance/ abuse of loan pledges (Habakkuk 2:6; continuity. North argues this Biblical cf. Exodus 22:25-27; Deuteronomy covenant model, exemplified in the 24:6,10-13) (“Church Sanctions in the Pentateuch, is a crucial element in Epistle to the Hebrews,” in Theonomy: Reconstructionist thinking. North An Informed Response, p. 181, n. 45). applies this model to the first three 7 James Jordan has explicated the law of chapters of Genesis in The Dominion the covenant as given in Exodus 21-23 Covenant and to the Ten Command- utilizing Rushdoony’s argument in ments in The Sinai Strategy. The Law of the Covenant. 2 This is the basis for the 10-volume 8 North states that Biblical law as given Biblical Blueprints series which Gary to Israel was “not so complex that only North has edited (and authored 4 of lawyers in specialized areas could the volumes). grasp its principles. The case laws, 3 As noted by Roland Hoksbergen in his such as the prohibition on muzzling article on the Kuyperian tradition of the ox as he treaded out the corn, economics in the Fall 1992 Bulletin, brought the general principles down Calvin’s influence upon nineteenth- into concrete, familiar terminology” century Dutch Reformed theology was (Free Market Capitalism, p. 38). manifested in the writings of Abraham 9 Reconstructionists note that the Old Kuyper, who in turn was an important Testament forbids lenders from source for both Herman Dooyeweerd making interest-bearing loans to and Van Til. fellow believers who are poverty- 4 The fullest statement and defense of stricken (Exodus 22:25; Leviticus this thesis is found in Bahnsen’s 25:35a, 36-37). But the Scriptures do

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not condemn all lending at interest. Reconstructionists point to Deuter– ANNOTATED BIBLIOGRAPHY onomy 23:19-20, which allows lending at interest to those outside of the Bahnsen, Greg. Theonomy in Christian covenant community. Ethics. Nutley, New Jersey: The Craig 10 One writer who is in essential agree– Press, [1977] 1979. ment with the Reconstructionist The renowned defense of the theono- position has lamented this aspect of my thesis which has stirred much their approach; he has exhorted Recon– debate in the Reformed community. structionists to repentance in this area, Barker, William S. and Godfrey, W. Robert, and to present their case with Biblical eds. Theonomy: A Reformed Critique. humility and gentleness (cf. Wilson, Grand Rapids, Michigan: Zondervan, Law and Love ). North acknowledges 1990. that critics are disturbed by Recon– An evaluation of the theonomic structionist “arrogance” but derides position written largely by faculty this claim by stating that “arrogant” is members of Westminster Theological their code word for “confident belief Seminary (East and West). Some of the in things we disagree with” (Domin– essays offer a constructive critique of ion Covenant, p. xxvi). The validity of Christian Reconstructionism. this response is questionable, given Calvin, John. Institutes of the Christian that there has been constructive Religion. John McNeill, ed., Ford Lewis criticism from others who uphold the Battles, trans. : The authority of Biblical law for today and Westminster Press, 1960. are concerned that their position is Chilton, David. Productive Christians in a undermined by certain Reconstruc– Age of Guilt-Manipulators. Tyler, Texas: tionist tactics. Wilson believes that Institute for Christian Economics, …unless there is repentance, [1981] 1982. the worthy emphasis on ethics A response to Sider’s Rich Christians found in the Reconstructionist which attempts a point-by-point movement is doomed in the refutation of the Sider thesis and a long run. And why doomed? defense of capitalism from a Biblical Because the law of God cannot perspective. be kept by people who think Grant, George. Bringing in the Sheaves: that arrogant boasting is a Transforming Poverty into Productivity. virtue. Sooner or later, some Atlanta, Georgia: , other aspect of God’s law will 1985. also be set on its head and A valuable discussion of Biblical ignored (Law and Love, p. 10; charity and presentation of a strategy emphasis in the original). and tactics for Christian actions in the private sector to deal with poverty. Hodge, Ian. Baptized Inflation: A Critique of “Christian” Keynesianism. Tyler, Texas: Institute for Christian Economics, 1986. A critique of Vickers’ Christian approach to macroeconomics which focuses on the Biblical material dealing with monetary economics and applies it to modern Keynesian theory and

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policy. other Christian perspectives on the Jordan, James. The Law of the Covenant: An role of markets and the state. Exposition of Exodus 21-23. Tyler, Texas: _____. The Dominion Covenant: Genesis. 2nd Institute for Christian Economics, ed. Tyler, Texas: Institute for Christian 1984. Economics, [1982] 1987. An extensive commentary on the case The opening volume in North’s multi- laws of the Book of the Covenant volume economic commentary on the which have been applied by Christian Bible. Contains several valuable essays Reconstructionists to economics. in the appendices on the influence of Mason, John. “Jubilee, Human Capital, evolutionary thought in economics. and the Underclass.” _____. Moses and Pharaoh: Dominion Unpublished paper delivered at the Religion Versus Power Religion. Tyler, December 1987 session of the Asso– Texas: Institute for Christian Econom– ciation of Christian Economists in ics, 1985. Chicago. An economic commentary on Exodus North, Gary. An Introduction to Christian 1-18 which offers a detailed study of Economics. Nutley, New Jersey: The the conflict between Moses and Craig Press, 1974. Pharaoh and its implications for A collection of North’s early essays on economic planning, economic growth monetary theory, price-wage controls, and related issues. tariffs, taxes, and economic growth, _____. Honest Money: The Biblical Blueprint utilizing Biblical presuppositions. for Money and Banking. Nashville, _____. “Economics: From Reason to Tennessee: Thomas Nelson, 1986. Intuition” in Foundations of Christian Volume 5 in the Biblical Blueprints Scholarship. Gary North, ed. Vallecito, Series. Offers a Biblical critique of California: Ross House Books, 1976. fractional reserve banking and A collection of essays, mainly by governmental control over the money Reconstructionists, which seek to supply, as well as a program of apply the implications of Van Til’s monetary reform. apologetic to numerous disciplines, _____. The Sinai Strategy: Economics and the including history, political science, Ten Commandments. Tyler, Texas: sociology, and economics. Institute for Christian Economics, _____. Unconditional Surrender: God’s 1986. Program for Victory . Tyler, Texas: An economic commentary on the Ten Geneva Press, 1981. Commandments setting forth the case Sets forth the Reconstructionist for Biblical law rather than “natural approach to the nature of God, man, law” as the true and necessary foun– law, and divine institutions, empha– dation of capitalism. sizing the theonomic _____. Tools of Dominion: The Case Laws of postmillennial elements Exodus. Tyler, Texas: Institute for of Reconstructionism. Christian Economics, 1990. _____. “Free Market Capitalism” in Wealth A massive (over 1200 pages) economic & Poverty: Four Christian Views of commentary on Exodus 21-35 which Economics. Robert Clouse, ed. Downers includes a presentation of a Biblical Grove, Illinois: InterVarsity Press, theology of slavery, and a discussion 1984. Provides a basic Reconstructionist defense of the Biblical basis for capital- ism. The remainder of the book includes North’s interaction with three

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of the economics of crime, pollution, private sector and greater governmen– bribery, usury, and the Sabbath. tal action to combat structural evil. _____. The Coase Theorem: A Study in Van Til, Cornelius. The Defense of the Faith. Economic Epistemology. Tyler, Texas: Phillipsburg, New Jersey: Presbyterian Institute for Christian Economics, and Reformed, [1954] 1967. 1992. A primary statement of the presuppo- A critique of Coase’s approach to sitional apologetics relied upon by social cost and discussion of the Reconstructionists. It demonstrates the Biblical material on the economics of epistemological bankruptcy of non- externalities. Christian thought. _____, ed.Theonomy: An Informed Response. Vickers, Douglas. Economics and Man: Tyler, Texas: Institute for Christian Prelude to a Christian Critique. Nutley, Economics, 1991. New Jersey: The Craig Press, 1976. A response to the Westminster A presentation of a Christian approach critique in Barker (ed.). Defends the to macroeconomic theory and policy, necessity of upholding Biblical civil written from a Reformed perspective, law as binding on modern govern- but which is nonetheless quite critical ments. of Christian Reconstructionist eco- _____ and DeMar, Gary. Christian Recon– nomics. struction: What It Is, What It Isn’t. Wilson, Doug. Law and Love: Constructive Tyler, Texas: Institute for Christian Criticism for Reconstructionists. Economics, 1991. Moscow, Idaho: Ransom Press, n.d. An overview of the central tenets of A short booklet which makes three the movement which also contains objections to Reconstructionist writ- responses to questions and criticisms ings, i.e. in regard to tone, humility, of the Reconstructionist teaching and and exegetical method, and offers polemical style. Biblical counsel in each of these areas. Robbins, Lionel. An Essay on the Nature and Wright, Christopher J.H. An Eye for An Eye: Significance of Economic Science. 2nd ed. The Place of Old Testament Ethics Today. London: Macmillan and Co., 1945. Downers Grove, Illinois: InterVarsity Rushdoony, Rousas John. The Institutes of Press, 1984. Biblical Law. Nutley, New Jersey: The A helpful discussion of the Old Craig Press, [1973] 1977. Testament’s ethical framework with The seminal work in Christian Recon– applications to various social issues. structionism. Develops the legal and _____. God’s People in God’s Land: Family, policy implications in politics, eco– Land, and Property in the Old Testament. nomics, and related disciplines of the Grand Rapids, Michigan: Eerdmans, Ten Commandments and the corre– 1990. sponding case laws of the Old Testa– An exegetical presentation of the ment. nature of ancient Israel’s social Sider, Ronald J. Rich Christians in an Age of structure and its linkage to the theol– Hunger. Downers Grove, Illinois: ogy of the Old Testament. n InterVarsity Press, 1977; 3rd edition— Dallas: Word Publishing, 1990. Sets forth a Christian perspective on world poverty which calls for greater involvement by Christians in the

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