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Morgan Guyton

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Rick Warren's Economic Principles

Posted: 04/30/2012 12:39 pm

America's most famous megachurch pastor Rick Warren has gotten backlash in the Prospect, Daily Kos, Huffington Post, and other places in response to an interview with ABC's Jake Tapper because of his views on President Obama's campaign for economic "fairness" in tax policy and how the government should help the poor. For what it's worth, Warren gives 90 percent of his income away to charity and his church does a lot of ministries with the poor in their community. There's no question that Warren is committed to helping the poor, though he disagrees with liberals as to who should help the poor and how. The question is whether Warren's ideological presumptions square with reality and Biblical principles. Here is the excerpt of his interview that has gotten so many people fired up:

Well, certainly the Bible says we are to care about the poor. There's over 2,000 versus in the Bible about the poor. And God says that those who care about the poor, God will care about them and God will bless them. But there's a fundamental question on the meaning of "fairness." Does fairness mean everybody makes the same amount of money? Or does fairness mean everybody gets the opportunity to make the same amount of money? I do not believe in wealth redistribution, I believe in wealth creation... The only way to get people out of poverty is J-O-B-S. Create jobs. To create wealth, not to subsidize wealth. When you subsidize people, you create the dependency. You -- you rob them of dignity. There are a lot of negative things that happen to us. Rather, we should be focusing on wealth creation and job creation, in my opinion...

First, regarding the question of "fairness," Warren draws a distinction between whether fairness means that everyone gets paid the same or has the same opportunity. This seems like a reasonable distinction to make, and it would be fair if President Obama were pushing for garbage collectors to get paid the same thing that nuclear physicists make. But actually what Obama calls "fairness" is for people who make most of their income through capital gains to pay the same tax rate as people whose income is all salary. Because the long-term capital gains rate is 15 percent and the highest income tax rate is 35 percent, the wealthiest people who make most of their money passively through investments end up paying much lower tax rates than middle-class people who earn most of their money through wages.

The justification for having a lower capital gains rate has typically been to assert that lower taxes on the wealthy create more jobs. This has been the gospel truth for 30 years in the ideological movement started by Ronald Reagan, but it wasn't the assumption when Republican Dwight Eisenhower was president in the 1950s. He presided over a top margin tax rate of 90 percent (mind-boggling, in the height of McCarthy-era anti-Communism), and the economy actually greatly expanded under Eisenhower. The Dow Jones more than doubled from 288 to 634. It was an era in which jobs were created by public infrastructure projects such as the interstate highway system. The middle class has never been stronger than it was in the 1950s.

Next, Rick Warren writes that he's in favor of "wealth creation and job creation," inferring a causal relation between them, again the assumption being that the more money rich people have, the more jobs they will create. The economic "recovery," however, has demonstrated a pretty obvious rupture of the connection between wealth creation and job creation. I'm no economist, but the Dow Jones reached 14,164 in Oct. 2007, before the crash, and it has since rebounded to the low 13,000s. So to the degree that a stock market industrial average can reflect this, our economy's wealth has almost been recovered. But the jobs have not returned. 3.6 million jobs have been added to the economy since early 2010 in contrast to 8.8 million jobs that were lost in the recession and 4.7 million new entrants to the labor force, which amounts to about 10 million more people out of work than were out of work before the recession.

Thus our economy is now very obviously creating wealth without creating jobs. If Obama were a dictator presiding over a state-run economy, it would be reasonable to blame him for the failure of the recovery to regenerate jobs, but his policies have not stopped the regeneration of wealth that's supposed to automatically result in new jobs. So it doesn't seem unreasonable for him to ask whether low capital gains tax rates are really benefiting the overall economy when they seem to be creating wealth without jobs. Perhaps Eisenhower had a better approach.

Next I wanted to look at Rick Warren's assertion that government shouldn't "subsidize" poor people and "create dependency." I agree with this basic principle as heartily as I agree that garbage collectors and nuclear physicists shouldn't get the same salary: people shouldn't get blank checks for sitting around being lazy. It's reasonable in the abstract. The question is whether this is an accurate assessment of what government programs actually do or a recycled talking point from the time before Clinton's welfare reform did away with blank checks for the poor.

I'm not sure how offering free health coverage through Medicaid to poor children creates dependency. What about Head Start, the free preschool program for poor kids who can't afford paid preschool? That seems like it's more about equalizing opportunities than giving blank checks. I ran an unemployment support group last year at my church in which a woman was collecting government unemployment benefits. She had to file weekly reports showing that she had applied for at least three jobs in order to stay qualified. It seemed to me like it was geared toward keeping people motivated rather than creating dependency. I suppose someone could argue that food stamps subsidize poor people, but I've never known anybody who has used them who didn't also have a job that was simply insufficient to pay all their living expenses.

Finally, I want to consider Rick Warren's opposition to "wealth redistribution." It seems like a completely un-American concept, since private property is so integral to our notion of freedom. How can it possibly be right for the government to take what I've earned and give it to someone else? Here's the problem: it's totally Biblical, that is if we take seriously the same Old Testament book that's so important to social conservatives on a different issue -- Leviticus. In Leviticus 25, God calls for the Israelites to have a year of jubilee every 50 years in which all property that has been sold would be returned to its original owner (vv. 25-28) and people whose poverty had forced them to sell themselves into slavery would be set free (vv. 39-40). Every family would then start over with their property having been reset to equal levels. The foundation for these commands is verse 23 in which God claims sole proprietorship over the land of Israel: "The land must not be sold permanently, because the land is mine and you reside in my land as foreigners and strangers."

If we followed Leviticus 25's prescriptions for wealth redistribution, it would basically amount to having an estate tax of 100 percent imposed on the population every 50 years with everyone given back the same amount of wealth afterward to start from scratch. In other words, it would be "fairness" in precisely the form to which Rick Warren objects. Since we live in a completely different historical context than Leviticus, it's reasonable to say that some of its commandments can no longer be feasibly applied today, but we should at least retain the spirit of them. If all property belongs to God and we are all His tenants and stewards in everything, how should this shape our attitude about whether we should be taxed a lower percentage of our passively received investment profit than other people pay for the wages they earn?

Many bloggers have unfairly cast Rick Warren as being opposed to helping the poor. It's pretty clear from the ministries of his church and his personal philanthropy that Warren believes in doing things on the grassroots level to help the poor. He just doesn't think it's the federal government's role. That's a fine debate to have, as long as Warren conforms his abstract ideological principles to the economic realities that are manifesting themselves around us today. And it might be time for Warren to spend "forty days in the word" of Leviticus 25.

 
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chatnuptime1
The Wolf's Den.
09:40 PM on 05/01/2012
That a nation so rich with resources, talents and productivity has poverty in escalating numbers is a discrace. How can we say we trust in God when we fail each other in this way? How can we say bless America while engaging in genocide of the American Indians at our start, condone slavery and Jim Crow laws, sexim and hatred and social inequtiy? How can we expect to be a city on a hill with the hope that others will follow our example if we are in fact needing to hide our little heads in shame and darkness for having persistently ignored on a capital level and on a personal level the needs and rights and common good of our citizens and neighbors? Wilst thou assume you have peace and security when thou are beating the drums of war and lighting the fires of carnage? If you want to get rid of poverty let go of your lusts for wealth. If you want to get rid of violence get rid of your hate, If you want peace.. stop making weapons. If you want mercy stop being judgmental. Then and only then will the peace of Heaven bless this nation and its enhabitence. When you do these things.----3
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chatnuptime1
The Wolf's Den.
09:39 PM on 05/01/2012
Message; Will you choke on a knat over your exposed belongings on the other side rather then unload a camel at the eye of the needle? Jesus laid out the reason for persistant poverty. Our priorities are not right. He also stated the only way we can see heaven realized is if we serve the poor, disinfranchized, imprisoned, and widowed, fatherless and otherwise afflicted. There is no getting around it. We cannot legislate our way into the kingdom by picking knats. We have to unload our selfish hearts and share our substance, with each other for our own good and survival. Till we do that the Gate of heaven will remain shut in our own cases. If you did not do this to the least of these my brothers you did not do them to me. He said. The message of the Gospel to society and inidividually is simple Serve your God by serving your fellow man. This is the clean and acceptable relgion in Gods eyes. The poor amoung us is a chance to change our blighted selfish hearts into ones that heaven can smile on. ----2
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chatnuptime1
The Wolf's Den.
09:39 PM on 05/01/2012
Jesus said we will have the poor with us always. An interesting prediction given he knew human ways. He understood the dynamics of what make for poverty both on a large scale and small. He counciled a rich man to give his many belongings to the poor and follow me always knowing that this rich man would leave him grief stricken because his heart could not let go of his wealth. And asked the poignent question to the observers. What good is all your wealth on earth if you lose your soul?

A camel can get thrue the eye of the needle but before he can he has to be unpacked of all your worldly goods and knelt down and crawled thru the narrow opening big enough for a man to get thru sideways. Not a comfortable fit to be sure, nor an easy squeeze. The eye he refered to was a passage way door in the walls west side of Jeruselem that people could enter into the city after the great doors of the city were closed for the night. This passage is narrow and painstaking to get thru and you have to leave your bulky goods on the outside unprotected to get yourself and your camel thru. ----1
researcher
researcher
12:54 AM on 05/01/2012
Unchecked capitalism will create two things and they are not in alignment with any justice or spiritual fairness: the poor and on going wars.

The bible states many things. when Jesus stated it is easier for a camel to go through the eye of a needle than for a rich man to get into heaven he was not kidding.

With the christian teachings of either a heaven or a hell, this teaching of Jesus makes no sense. if one comes to have knowledge about the levels or dimensions beyond this physical world than it is really good spiritual teachings. ie the many mansions teachings of Jesus.
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Jay Patel
12:40 PM on 05/01/2012
researcher,

Why don't the heavens or hells make sense? Aside from Christianity, many other spiritual traditions have spoken of spiritual realms far more vast and different than this particular material universe.
I agree with you completely about the unchecked capitalism. That is precisely what we have now. In fact its not capitalism at all, it is institutionalized oligarchy parading as capitalism.
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chatnuptime1
The Wolf's Den.
10:11 PM on 05/01/2012
Ironically enough the teaching of heaven and hell is very lightly touched upon where Jesus is concerned. Exaggerated to the nines where the Churches are concerned thru the ages. Let thine will be done on earth as it is in heaven experesses it very nicely. Because if we follow that God's will in heaven should be paramount on earth by earthly subjects it needs be that earthly subjects must utilize Godly standard of justice, love, peace, long suffering, kindness to make it happen here. The reverse is also true. Hell is not a place as much as a condition for failing the first.
newshound620
Still here
12:00 AM on 05/01/2012
Don't forget that Rick Warren is the one who put forth in his book that "God" put us all on this earth for "his" entertainment--for "his" pleasure. How does Warren reconcile poor people, devastation and starvation with his god's "entertainment?" He can't. Rick Warren knows nothing more than the rest of us. And he has no direct connection to any deity (because there isn't any). If he gives his wealth to the poor and broken, then that's what he should do, because Christianity, like the other religions, owes a lot to humanity while pretending otherwise.
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Steve McSwain
Author; speaker; spiritual teacher
07:12 PM on 04/30/2012
This may be the best, as well as easiest to understand, article on the ongoing debate about wealth redistribution - it's a long article but, if you will patiently wade your way through it, you'll be glad you did. Thanks for a great article and for bringing such clarity to a subject that gets so convoluted by the political cliches.
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chatnuptime1
The Wolf's Den.
10:02 PM on 05/01/2012
Capitalism ideally is like a school yard teeter totter. You have two kids. presumably of roughly equal weight pushing on and off the ground going up and comming down. Redistribution of wealth. At the middle of this teeter totter is a medium sized middle class called the fulcrum. That supports the beam that the kids are playing on. Lest it be to small this full crum will snap the beam called our economy. By the tugging wait of the rich and poor on the other side. The game is played by each excerting their powers of back and forth while the full crum acts as a stablizer to keep the game going. Even distribution of weight on either side of the spectrim keeps the game fun. If the poor are to fat .. ie.. to many the middle class slide into to poverty and the light weight wealth is suddendly suspended in the air indefinately as is the case now. 1% of the top wealth is staying there in the air not comming down. but the distribution of the balancer (fulcrum) is getting narrower. threatening the stabilty of the capital beam (economy) adding to the ponderous weight of the poverty side of the equasion. Now the game is barely playable and the tools are obsolete.

We need to bring manufacturing back to the United States and bring back high paying jobs to broaden the middle fulcrum and lighten the poverty so that the teeter totter of the works .
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Morgan Guyton
United Methodist Pastor, Blogger
05:16 PM on 05/10/2012
That's a good illustration. Thanks!