Negotiable

Yes, Virginia, even Charlotte, NC lacks immunity from the current economic correction. I’m not talking about embattled Bank of America or Wachovia. Even our own little office, once figured impervious to the forces of reality, is staring possible job cuts in the face.

Employees were invited to make suggestions on a web bulletin board of how our organization might trim operational costs. Far and away the leading suggestion was simple: pay cuts. Employees are willing to take a cut in salary if in any way it would ensure their jobs being retained.

This vindicates a basic axiom of free market economics – and the vindicators aren’t even economists. They understand intuitively that during a downturn the cost of doing business is costly, and are willing to negotiate a lower price for their services in order to stay employed.

I don’t know if we will see pay cuts or eventual job cuts. What I do know is that our salaries have wiggle room. The most vulnerable victims, however, are those who earn minimum wages; because their pay is mandated by law, they cannot negotiate their way to a lower price for their services. That price is fixed at a rate beyond what many employers are willing and able to pay (if I had the means of drawing a simple supply and demand function here, the graphical illustration would make this clear as a bell).

For the umpteenth time: if the state would get out of the market’s way, living and breathing human beings could work out solutions that would benefit more people. Admittedly, not every job can be saved – some businesses are simply no longer competitive, or so malinvested that efficiency requires radical retooling. Some organized blocs of employees are simply unwilling (perhaps due to coercion) to accept lower pay.

But I know some who are.

Showing Up

A friend of mine who is an Orthodox priest keeps me on the email distribution list for his parish. This morning he sent this, which I thought was worth sharing:

A caring congregation is one that cares for one another and who actively seeks to help those in need. Currently we have three parishioners who are very ill. Are we reaching out to them as well as their families? Do we regularly pray for them? Have we visited them?

Visiting sick people who are at home or at the hospital is sometimes awkward. Very often we do not know what to say or we might be shy and do not want to go alone. This is very normal. However, if we take another person with us or if two couples want to go together, this will make the visit more enjoyable. Even Jesus sent out his disciples “two by two” to do ministry. Two people can share the burden, not just one! The actual visit does not have to be long. Many of my pastoral visits to the hospital are not more than a few minutes. The important thing is not the length of the time spent but that you showed up in the first place! Below is a short “how to” list regarding visiting someone at home or at the hospital.

1. Call ahead to make sure it is okay to visit. Sometimes people do not want to receive visitors. You can always say, “is there a better time to come?”
2. If you do not want to go alone on the visit ask someone else at Church; you can say, “I would like to visit Mrs. X, would you want to come along with me?” A good time to go is after Church on Sunday. That way you can leave Church and follow each other to the home or the hospital and then go right home afterwards.
3. Feel free to bring flowers, or candy, or even a small stuffed animal. People always like to receive small gifts; it brightens up their day. Stuffed animals are not just for children, adults like them too!
4. Don’t feel the need to talk only about “churchy things,” just talk about life. Most of my conversations are not specifically “churchy” in that respect. People just want to know that they are loved and people care about them.
5. You can say a prayer together, such as the Lord’s Prayer; nothing fancy, keep it simple.
6. As far as time is concerned usually you will know when the person is tired. You can say, “Well, we will have to go now, it was good seeing you. We are praying for you and we love you very much” or something to that effect. Again, it is not the length of time that matters, showing up is what is more important.

What “Stabilization” Could Look Like

Continuing the dialogue from yesterday, our office sales analyst conveyed his full agreement with government-sponsored bailouts, President Obama’s “stimulus” plan, and, if necessary, the nationalization of the banking industry (actually, with the FDIC and the Fed-backed fractional reserves, the banking system has been nationalized in some measure for decades).

Our friend believes that Obama is FDR to George W. Bush’s Hoover. He argues passionately that these measures, all taken by the benevolent State, will achieve a much needed “stabilization” of our economy.* “Oh, it will be stabilized, alright” I replied, “at a standard of living lower than either you or I have ever known. Plus, we’ll pass the debt on to our children and their children.”

This morning, Steve Saville of The Speculative Investor wrote,

Although we are anticipating another great depression we want to emphasise that we are NOT anticipating a replay of the 1930s. We are anticipating a drawn-out period of economic contraction, but the details will almost certainly differ markedly from previous depressions.

One of the most important differences between the coming -- actually, “current” is a more appropriate word since it has probably already begun -- great depression and the 1930-1945 episode is that today’s version is likely to be inflationary. An inflationary depression is potentially worse because the inflation (money-supply growth) leads to more mal-investment (more wasted savings) and higher living costs relative to incomes.

Another difference is that the government of today will provide a more extensive ‘safety net’ for people who fall on hard times. Paradoxically, this could lead to even greater economic weakness than occurred during the 1930s. The reason is that the government pays for the safety net with money that would otherwise have been used in productive endeavours.

On a related matter, the government could all but eliminate unemployment during a depression by giving every unemployed person a government job, which is effectively how the Soviet Union eliminated unemployment (that, and by sending millions of people to forced labour camps). Such a massive expansion of government is our greatest fear because it would make the depression permanent. (emphases added)

Now, Christians have nothing to fear – not even fear itself (2 Timothy 1:7, KJV). But part of the job (or mine, at least) is to remind folk that Caesar is no savior. Live faithfully, live frugally. And give no credence to the sirens of the State.

*Our friend forgets that under FDR the Great Depression persisted for twelve miserable years, with the unemployment rate hovering between 15-20% during the entire period. The nation was stabilized - in the doldrums.

Rainy Day Savings vs. Radio Ga Ga

Were it not for the up to the minute traffic reports I would not listen to Charlotte’s Morning News with Al Gardner on WBT (1100 AM). The program is a spring of insufferable government cheer-leading. This morning was no exception – a panic-stricken reporter stated that the rate of personal savings among U.S. households has reached its highest level in over a decade. “But,” the newsnik warned, “all that saving has a dark side. Until consumers begin spending again, the economy will continue to tank.”

Pure Keynesian hogwash.

We debate this topic in my office on a regular basis. Our sales analyst contends that the economy is in trouble because the public has, psychologically-speaking, “lost confidence.” People, he says, are irrationally cutting back “way too much” on spending. “People are going without because they are panicked.”

Going without? Is he serious?

Looking around, I observe enough rotundness to convince me that very few are “going without.” What is really happening is private citizens are taking stock of their incomes and expenses, factoring in the uncertainty of businesses correcting their productive capacities, and making the perfectly rational decision to forego luxury consumption. This proves one of the fundamental axioms of logical economic analysis: that human action is directed toward the future. Each person is asking, “How much money will I need to meet future needs?”

In the recent past, for example, the (central bank) credit-stimulated housing bubble deceived the public into thinking that real estate values would ascend unhindered into the starry heavens forever. They made purchases, borrowing against their home equities, based on contorted market signals. But now, a growing number of prudent citizens are finally putting hard-earned money back into sundry rainy day funds.

Present-day saving lays the groundwork for future economic growth. The public saves while businesses reassess and reallocate resources to more productive and profitable means. But the prudent are being forced to swim upstream. As the Federal Reserve, rather insidiously, drives interest rates toward zero in order to “stimulate” more borrowing, investors lose return on their savings.

Our sales analyst, like the voice on the airwaves, believes in the Keynesian (statist) stimulus-response dogma. The public are a bunch of lab rats in need of a good shocking towards more frivolous spending and debt. Put another way, what the junkie needs is another hit of smack.

The very behavior that got us into the present unpleasantness.

Personal Affection

If then you were raised up with Christ, seek those things which are above, where Christ is, sitting at the right hand of God. Set your mind on things above, not on things on the earth. – Colossians 3:1-2

It might appear that the throughts expressed here mind too much the perishing things of this present life. I admit to a rather morbid fixation on political corruption and its effect on the economy (in fairness to myself, it stems from economics being in my line of work). Yet, I am not convinced that the apostle Paul meant for believers to saunter through life ethereally-minded, oblivious to all that passes around us. We are, among many other things, to abhor evil, which requires some taking of stock. The secret to the Christian’s inner fortitude is found above, at God’s right hand. The joy of the Lord, as Ezra said, is our strength (Nehemiah 8:10).

My weekdays begin and end with the appointed scripture readings from the 1928 Book of Common Prayer. On Sunday evenings I enjoy listening to the on-line sermons by Ed Robinson of St. Joseph’s Anglican Church in Trussville, Alabama. It is marvelous to hear a minister in a tradition not known for expository Bible teaching since the days of Bishop J.C. Ryle, preaching verse-by-verse and stressing a closer walk with Christ.

During my lunch hour I listen to two podcasts. One from Tom Soroka, an Eastern Orthodox priest, is called “The Path.” I discovered Fr. Tom several months ago on Ancient Faith Radio and have been impressed by his heart for the Lord Jesus and clear exposition of the Word. The other program is an old stand-by, “Thru the Bible” with Dr. J. Vernon McGee. I have listened to Dr. McGee for some 20 years, and his Texas drawl is as comfortable as an old shoe. At the present time he is going through a study of the Song of Solomon, and I would impress upon the reader the great blessing and benefit of listening to this particular series of programs. Dr. McGee’s theme is the altogether loveliness of Jesus Christ as typified in this ancient Hebrew song. He is stressing a personal satisfaction in the person of Christ that can uphold the believer through every circumstance.

Personal affection toward the Lord has been a recurrent theme in devotions since my days with the Plymouth Brethren. A favorite book back then was J.G. Bellet’s The Moral Glory of the Lord Jesus Christ, concerning the Lord’s human perfections as prefigured in the meal offering (Leviticus ch. 2). As Dr. McGee would say, Jesus was not of “lumpy” character like the rest of us; his attributes were fine, withstanding the oven of earthly trials. One of the more memorable sections of Bellet’s book compares and contrasts the manner in which Jesus dealt with the grief shared by Martha and Mary at Lazarus’ tomb. Christ was (and still is) able to meet every need of soul, whatever its state.

Speaking of the offerings, it is a source of endless fascination to meditate upon each of the major Levitical sacrifices as they prefigure the endless merit of Christ’s death on the cross. The burnt offering speaks of Jesus offering his whole being as a sacrifice of sweet-smelling aroma exclusively to God (Ephesians 5:2; note that in Genesis 22, Abraham was prepared to sacrifice Isaac as a burnt offering). The peace offering, part of which was burned on the altar while the shoulder was eaten by the priests, depicts the communion believers share with God through Christ, in whom we obtain peace (Colossians 1:20). The sin and trespass offerings, of course, pertain to the propitiatory dimensions of the Lord’s substitution, having put to death sin at its root (Romans 6:6-11) and purging our actual sins committed (1 John 2:2). In every case the offerings were unblemished, speaking of the human perfection of the Lord.

This hardly scratches the surface of what the Lord Jesus means both to His Father and to us. “This is my beloved Son, in whom I am well-pleased,” and, “to you who believe, He is precious.”

Therefore, I must inquire: why in the devil would a large, evangelical church host a “patriotic” worship service, replete with fireworks, smoke, camouflage-clad soldiers repelling from the rafters, and military anthems? This actually happened in the metropolis where I work.

On another occasion when the brazenly statist “Battle Hymn of the Republic” was sung at a church service, I could only hang my head in silence.

Certainly we are to pray for government leaders, as well as for loved ones serving in the armed forces. God ordains earthly powers for specific ends (Romans 13:1-7). But let us not be confused: the State is competing with God for our affections. We should be keenly wary of that. And we have another king – Jesus.

A Good Answer

In response to a skeptic in a talkback thread who challenged his certainty of what “the Word” is, the Underground Pewster cites a pair of choice quotations, presented below:

“Q. How do we recognize the truths taught by the Holy Spirit?”

“A. We recognize truths to be taught by the Holy Spirit when they are in accord with the Scriptures.” (1979 BCP page 853)

“If there were any word of God beside the Scripture, we could never be certain of God’s word; and if we be uncertain of God’s word, the devil might bring in among us a new word, a new doctrine, a new faith, a new church, a new god, yea himself to be a god. If the Church and the Christian faith did not stay itself upon the Word of God certain, as upon a sure and strong foundation, no man could know whether he had a right faith, and whether he were in the true Church of Christ, or in the synagogue of Satan.”

- Archbishop Thomas Cranmer (1489-1556)