#194 Thankful for Private Property

11/22/23 • 10 min

The Pilgrims tried socialism and it failed. Then private property led to so much prosperity that they hosted the first Thanksgiving. If you have enough to eat this Thanksgiving, you should be thankful for the private property system that produced the food. We live in the most prosperous, fruitful time in human history. Let’s take a brief look at how we got here. In October of 1621, Plymouth Colony governor William Bradford called a three-day festival, inviting the ninety Indians to join the 50 Pilgrims. This feast, which included times of thanks to God as well as athletic competitions and food and fellowship, is commonly celebrated as the first Thanksgiving festival in America. So, if you celebrate it with football games and food with your neighbors, you are re-enacting this cherished Christian tradition, but who were these Pilgrims, and how did they get here? Fight or Flight That’s the basic idea from psychology that our minds are built to either change ideas we disagree with, or run from them. It’s a pretty big discussion among Christians in the United States today. Or, at least, it SHOULD be. I delve into the question in podcast #72 titled Two Worlds. Being in the world, but not of the world is becoming more difficult in post modernity. The Pilgrims response was flight, as explained by David Barton at WallBuilders: The Pilgrims are well known today for their association with the first Thanksgiving festival. The Pilgrims were Separatists — a set of Protestants who felt that they would be unable to reform the Church of England and therefore they chose “flight” over “fight.” They went to Holland and then eventually to America. But the other group who came later, were Puritans. They were “fighters” who believed they could reform the Church of England. It turned out that they were wrong, and following severe persecution, some 20,000 followed the Pilgrims to America. The Pilgrims had obtained a land grant for Virginia and set sail in the Mayflower on September 6, 1620. But after a rough ocean crossing, they landed 200 miles north of Virginia in what became known as Massachusetts. On November 11, 1620, they finally dropped anchor and came ashore. Grateful or Entitled Of the hundreds of books and articles I’ve read and the hundreds of speeches I’ve heard, the one that makes the most impact on today’s subject is a little five-minute video by Dennis Prager, titled The Key to Unhappiness. He says there are two groups of people: Those who are grateful and those who are entitled. The grateful will always be happy, the entitled will never be happy. And here’s the strange part: Dennis is a Jew, who does not believe Jesus died for him. Think about it: A Jew is telling a Christian that HE should be grateful. Kinda backward, isn’t it? I’m the one who should be telling HIM to be grateful. Jesus had to die for your sins because there’s no such thing as a free lunch. Somebody had to pay. And it wasn’t you. That’s why Christians are grateful, and why we celebrate Thanksgiving. We have a lot to be grateful for. You’re welcome to feel sorry for atheists during this season. They have no one to be grateful TO. I don’t know how you can be grateful FOR, without being grateful TO. Oh, then the non-believer has to suffer through Christmas, and not celebrate the birth of Christ. You know, for all we complain about the difficulty of being a Christian, this time of year, it’s quite a blessing. Our grandkids sometimes tell each other, “You get what you get, and you don’t throw a fit.” Actually, that’s a pretty good Christian economic philosophy. Be happy for what you have. After all, being happy is not having what you want, it’s wanting what you have. In our book Biblical Economic Policy, Sergiy Saydometov and I mention this concept as one of the Ten Commandments of Economics, which we borrowed from the list by Moses. It’s #4 for us, and it’s called “Don’t Covet.” If you Don’t Work

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Who is Getting Shanghaied in Trade?

Trade with China makes Americans richer, but China is likely using the profits from their exports to build a military that the US will fight someday. In the 19th century, if a sailor got too drunk in a port city, he might wake up the next day on a ship steaming toward Shanghai. The noun became a verb, and he had been “Shanghaied,” but in the current US-China trade relationship, who is getting Shanghaied? Trade with China makes us richer, but they might be using those profits to build a military that we will fight someday. I’ve often said, you won’t find a one-armed economist because we will always say, “On the other hand.” Trade with China reflects this conflict. Trade makes us richer, but it also makes China richer. What do we do? I think it would be difficult to find a scripture that encouraged market discrimination against a people group, just because they are from another country. That’s where Christianity and Economics support each other. They BOTH call for open markets and trade, among all people groups and all countries. Trade is Good Of course, trade is good. The entire Adam Smith economic legacy might be neatly tied up in a two-step process: First, increase production via specialization, then trade your surplus. Trade is Good is one of the Ten Commandments of Economics that I found with my co-author Sergiy Saydometov, when we wrote the book titled Biblical Economic Policy. If we didn’t trade, we would be very poor. I’m pretty good at giving economics lectures and writing, I’m an average farmer, a lousy tailor, and even a worse auto mechanic. I couldn’t make a car if my life depended on it. Instead, I specialize in writing and speaking, and I trade for food, clothes, and cars. That little economic system works at the national level too. This is still Adam Smith territory: he noticed that the French were better at making wine, but the Scots were better at making Whiskey. That’s why some wines, like Champagne and Bordeaux, are named for the region where they are made. I’ll presume you know why they call it “Scotch Whiskey.” In the first nine months of this year, China exported to us $210 billion more in goods than we exported to them. That’s the FRONT part of the equation that they explain to you on CNN and Fox News. The back part of the equation is a little more complex, so you only find that in the Wall Street Journal and The Economist. That’s where you find this Chinese businessman holding a million US dollars and trying to exchange it for something. He ends up buying a shopping mall in Cincinnati, or a wheat farm in Kansas because that’s where the US dollar is honored. That back side of the equation is where you hear people complain “The Chinese will own the US someday.” That’s chicken little economics. I heard the same thing about the Japanese in the 1990’s. If the Chinese buy $210 billion worth of real estate in the US every year, there really is not even an ESTIMATE of how long it would take them to own a meaningful percentage of US assets. Recently, there have been reports that they are buying land near military installations. That’s concerning. Trading Avoids War There’s something called the Golden Arches theory of Conflict Prevention that goes something like this “No two countries that both have a McDonald's have ever fought a war against each other.” It was first proposed by Thomas Friedman in a New York Times column, then became part of his book titled The Lexus and the Olive Tree, which I read years ago. Maybe it was disproven by the UK’s struggle with Argentina over the Falklands, and the current Russian war on Ukraine, but the concept is still valid. Trading avoids war. Part of the reason that Imperial Japan attacked the US was because the US stopped trading oil and steel with them. OK, the US had good reason. They were responding to Japan’s atrocious treatment of the Chinese, just across the Japanese border. That’s interesting to think about: My podcast today,

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#195 From God to Government

Adam and Eve ate the apple because they wanted to be God. That desire has not gone away, and recently, we are seeing even more evidence of it. Our society is moving from “God to Government” and the implications don’t look great. Worldview Christian Worldview to secular worldview The Christian Worldview says God created a perfect world, fallen humans have messed it up, and we find redemption through Jesus Christ. Support for abortion provides ample evidence that many people don’t believe humans are created by God; I will cite many examples of the denial of the fallen nature in the next few statements. If we’re not fallen, who needs a savior for redemption? Fallen to not fallen The defund the police movement was based in the assumption that humans are not fallen. If you just leave them alone, peace will break out. This is not a theoretical belief system. It’s been proven over and over again, that if you reduce punishments, crime increases, as it is in America today. From serving God to being “god” In the book The Rise & Triumph of the Modern Self Carl Trueman explains why people believe they are “A woman trapped in a man’s body,” or the opposite. The supposition is objectively false, but the concept of expressive individualism has led folks to believe they can do it. Maybe it’s the best evidence for the departure from the Christian Worldview, because people don’t believe they were created by God, so they can create themselves. Frightening. Economics Supply side to demand side Keynesians believe that during an economic downturn, the economy should be stimulated by shifting the demand curve out. The measure of that effort is called the Philips curve, and it has been shown to work in the short run, but not in the long run. In the long run, you end up with employment returning to its natural rate, but with the added debt that was accumulated to shift the demand curve. When shown this, John Maynard Keynes agreed, and responded, “In the long run, we’re all dead.” What a selfish thing to say. In about twenty years, I might be dead, but my Dallas Baptist University sophomores will be in the middle of their careers, struggling to pay off the debt our country has accumulated. I’ve told them many times, that they will look back on the years from 2019-2023 and ask why the national debt moved from $20 to $30 trillion in just four years. Free market capitalism to socialism This is the most dangerous movement in economics. The title “Free Market Capitalism” reveals its intent in the title, because it calls for free exchange of goods and services. Socialism is based in power, where producers and consumers are coerced to exchange goods in a way the government wants them to. From private investment to government crowding out To help my sophomores at Dallas Baptist University do well on their weekly quiz, I ask if we should smoke cigarettes. The obvious answer is “no.” “So we should nix cigs!” is exclaim, which helps them remember the equation for Gross Domestic Product: Y = C + I + G + NX. In the last quarterly GDP report, Consumption and Government Spending were up. Investment was down. That means we have a good short-term economy, but a bad long-term economy, because there is not enough investment being made. Governance Biden’s Sphere Sovereignty to Economic humanism Biden’s Sphere Sovereignty is the title of my podcast #111. I caught him admitting that government could not solve some specific problem, so I took the opportunity to make it the title of a podcast. Economic Humanism is the title of my podcast #21, which explains how humans think they can do just about anything. After eating the apple, Adam and Eve found it didn’t work that way. US Revolution to the French Revolution In his book Last Call for Liberty, Os Guinness explains the difference in the US revolution, which defended religious freedom, and the French revolution, which deposed religion.