A modern market economy cannot function in isolation, market transactions occur inside a set of regulations, and a person must uphold these regulations in a position of authority. Along with its laws, the government upholds contracts, other agreements, and understandings between the various parties engaging in economic transactions. The government occasionally establishes guidelines that specify what a pound, mile, or bushel is. A government must also raise revenue through taxes, which have an impact on how people choose to spend their money.
Beyond these fundamental duties, on which almost everyone can agree, governments can take on a wide range of responsibilities, all the way up to directly owning and running every farm and industry in a country. The role of the government in the economy has been a source of debate for more than a century. Whether in democratic or non-democratic nations, those who supported the government playing a more significant role were unmistakably in the majority during a considerable portion of the 20th century. At one extreme were the Soviet Union, China, and other countries in the Communist bloc (Sowell, 2014). However, democratic nations like France, Britain, and India also enabled their governments to seize control of a few businesses and strictly regulate the decisions made in other fields that were permitted to remain privately held. This expanded role of the government has frequently been embraced by large segments of the political, intellectual, and even commercial sectors.
Despite the incredible range of activities that governments may perform, we can look at the fundamental responsibilities of government. Almost everyone can agree upon and explain why those responsibilities are crucial for allocating limited resources to other uses (Sowell, 2014). Government must create an optimal framework of law and order. Framework within which the populace can participate in whatever economic and other activities they choose while reaching such mutual concessions and agreements among themselves as they see appropriate. Additionally, several workouts have enormous costs or advantages that extend beyond the participants.
The government can accept these payments when the market fails and provide assistance. Similar to how people behave in businesses, homes, and other humanitarian organizations and activities, those who work for the government in various roles frequently react to the incentives placed in front of them (Sowell, 2014). Government is neither a monolith nor only the personification of the public interests (Sowell, 2014). Its incentives and limits must be considered to comprehend what it does, just as the marketplace’s incentives and circumstances must be considered to understand people who engage in market transactions.
There is no specific system of government or structure for the economy described in the Bible. Political, economic, and moral liberty are all supported by ideas found in the biblical worldview. Even though no system is perfect, market economies considerably increase human prosperity (Anthony, 2021). Therefore, it may be claimed that the Bible favors an economic system that balances efficiency and equality. Bible said, that people must let the established authority govern everyone. In Bible every authority comes from God, and He established the existing ones (Romans 13 (ESV), n.d.). For the sake of the Lord, submit to all human institutions, including the emperor in his role as ultimate leader and the governors he appoints to chastise evildoers and reward good deeds. Because doing good will enable people to silence the stupidity of fools, as is God’s will (Romans 13:1 (ESV), n.d.). From Bible position, people must live as free individuals who do not use their freedom to justify wrongdoing rather than as God’s servants.
References
Anthony, B. (2021). Biblical economic policy: A useful guide to a Christian perspective on economics. Dallas Baptist University.
Romans 13 (ESV). (n.d.). Bible Gateway. Web.
Romans 13:1 (ESV). (n.d.). Bible Gateway. Web.
Sowell, T. (2014). Basic economics (5th ed.). Basic Books.