Introduction
Some aspects of government economic policy go beyond biblical principles. Biblical principles date back to the founding fathers, remain essential, and serve as an ethical and moral foundation in public life and the economy. The biblical principles are justice, ethics, honesty, and caution toward wealth. Over the years, economic strategies have smothered moral and biblical principles.
The Federal Reserve System, formed by the Federal Reserve Act of 1913, is the nation’s central bank. It provides the country with a more secure, adaptable, and stable monetary and financial system (Board of Governors of the Federal Reserve System). Twelve Federal Reserve Banks and 24 branches operate one of the largest and most powerful systems in the United States. Its primary function is to protect the economy by monitoring long-term interest rates, increasing employment opportunities, and stabilizing prices (Winther, 2009).
Government Exceeding Biblical Principles
Both economically and morally, monetary inflation is terrible. It is only possible to ever improve society by expanding the money supply. Inflation raises prices and does not allow for more production. This method also stimulates economic growth but increases debt (Winther, 2009). The Bible teaches people to pay and not owe a debt.
“Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law (New International Version Bible, Romans 13:8). Increasing the money supply benefits some people at the expense of others by redistributing wealth (Winther, 2009). Fairness in an economic society challenges the biblical principles of honesty and ethics.
The Federal Reserve manipulates the interest rate to coerce consumer spending. Rates were at the lowest level a couple of years ago, and the real estate market was booming. This year, rates are at the highest level in several years, and the real estate market has reached a standstill (Better Markets, 2022). The leaders must lead the country with the Bible verses, “Do nothing out of selfish ambition or vain conceit. “Rather, in humility, value others above yourselves, not looking to your own interests but each of you to the interests of the others” (New International Version Bible, Philippians 2:3-4).
On numerous levels, the Fed’s monetary policy and inflation violate the fundamental rights of privately owned property, which it does not consider an ethical economic policy. The government’s handling of currency supply within the Federal Reserve is an economic and moral disaster. At our peril, we continue to break the laws of economics and ethics established by God (Winther, 2009).
Even though the Federal Reserve System is undermining biblical principles, the central bank is working to stimulate the efficient operation of the United States economy and public trust. Furthermore, the 1999 Banking Act permitted the merger of securities, insurance, and banking institutions; the US banking sector has changed dramatically, allowing banks to combine retail and investment banking activities.
Leading to Accountability
People who serve the public have a moral responsibility to make ethical choices. During the COVID-19 pandemic, several senior Federal Reserve officials made multimillion-dollar trades and profited while many Americans were dying and losing jobs (Better Markets, 2022). Fortunately, the media discovered insider trading, and people were held accountable, leading to more transparency. Better Markets, a non-profit and non-partisan organization, has led the movement for openness, leadership, and accountability since the Wall Street Journal first exposed the abhorrent behavior that broke the law and the public trust, if not Fed policy (Better Markets, 2022).
The Federal Reserve provides a safe, flexible, and stable monetary and financial system. The Federal Reserve System made a logical and moral decision during the mortgage meltdown several years ago. The Federal Reserve System bought out banks and insurance companies when they became insolvent, which was in the people’s best interest and public trust. The decision was more about saving the people’s hard-earned money than the insolvent banks.
Conclusion
The Federal Reserve has good and bad points, just as other agencies and organizations, and some can be too large and powerful. It has a massive responsibility to manage the country’s money and regulate the financial industry. By officers influencing with moral and biblical values and making the right decisions, the changes will flow to the lower tiers of the organization and improve public trust. Change begins at the top with God’s law.
References
Better Markets. (2022). Everything you need to know about the federal reserve trading scandal: Better markets. Web.
Board of Governors of the Federal Reserve System (n.d.). Structure of the Federal Reserve System. Federal Reserve. Web.
New International Version Bible. (n.d.) Biblica. Web.
Winther, M. (2009). The federal reserve: An economic and ethical disaster. Institute for Principle Studies. Web.