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Economics

Why family businesses still matter (and why the Church should care)

I grew up with dirt under my fingernails and the sound of machinery in my ears.

My grandparents’ farm sat on the arable land; our house was tucked into the wooded corner next door. Spring meant climbing onto my grandfather’s tractor while he disc’d the field, then four boys with a pipe planter each, dropping seed by hand, row after row.

We were working the same ground my family had farmed for five generations, learning to fix the pump when it failed and to weed, then weed again. The harvest fed us and brought in a little extra cash, but the real yield was teamwork, patience, diligence, and a sense of responsibility for land that fed our own people.

My father’s piano tuning/software business taught the same lessons with different tools. We learned to refurbish old computers, solder battery packs, fold brochures, pack shipments, and we learned to run a lathe and mill to fabricate specialty tools, where precision mattered because it could mean the difference between a salable part or wasted time and material. The wage was modest; the education was not.

None of that looked glamorous. It was just what our family did to survive. But those long days in the field and in the shop gave us children real work to do in a family economy where the stakes were tangible.

Children need to learn that their contribution isn’t busywork but real help that is needed and valued. If we slacked off, we harvested less; if we cut corners, customers noticed. The consequences showed up in food on the table and the ability to keep the lights on.

On the good days, when we’d done especially well, the reward was just as concrete: we might be chosen to pick raspberries – a rare treat for any eight‐year‐old who could mind the thorns.

Where I live, those conditions are becoming rare as family businesses are thinning out. And when they do, the church is losing not only jobs and independent income, but one of the most natural training grounds for Deuteronomy‐6‐shaped discipleship.

How we got here

The family that works together…. This is a picture, back in the day, of the author’s father out logging with his own father and grandfather – three generations.

In my case, the farm and the shop were simply how our family made it. We were German‐Irish by blood, but living in the Dutch‐Reformed belt of West Michigan meant our views on work, worship, and family life ended up much the same.

From the 1930s to the 1950s, many Reformed immigrants landed in a bind. Industrial jobs were tied to unions whose class‐warfare ethos and loyalty oaths a confessional Christian could not accept in light of Christ’s command not to swear oaths beyond a simple yes or no (Matthew 5:34, 37).

So men did what they had to do: they started small construction crews, repair shops, trucking companies, print shops, and farms – not glamorous or easy, but theirs, and answerable only to Christ and His church.

Two and three generations later, those necessity businesses have grown into a dense ecosystem of family firms that roof our churches, pour their foundations, insure their buildings, employ their young people, and help fund the Christian schools scattered across our denominations – an ecosystem we have largely taken for granted.

But it won’t continue, at least not automatically.

Family businesses today are being squeezed from three sides.

Economically, many smaller outfits live in the shadow of consolidation. Regulations, insurance costs, and succession planning all get more complex as the founder ages. In some sectors, the only viable “exit strategy” is to sell to a larger competitor or investor – or, in the case of farms, to sell rich soil for development instead of fields.

Culturally, we have quietly absorbed the assumption that “success” means leaving the shop behind. We push sons and daughters toward university and white‐collar professions as the default measure of maturity. Staying in dad’s plumbing company or grandpa’s trucking business is too often presented as “settling.”

Ecclesiastically, we sometimes thin out the link between fathers, work, and children. A man may run a firm by day, then spend his evenings on church and school responsibilities – good things in themselves – while his kids mostly see him tired and absent.

In that environment, the business becomes just a source of income and perhaps a donor to the school, not a shared life. The next generation experiences it as background noise rather than as the place where they belong and are needed.

Deuteronomy 6 and the economy of the home

Deuteronomy 6 is one of those passages we know so well we stop seeing it.

“Hear, O Israel: The Lord our God, the Lord is one. Love the Lord your God with all your heart and with all your soul and with all your strength. These commandments that I give you today are to be on your hearts” (Deut. 6:4-6, NIV).

So far, so familiar. But notice where the text goes next:

“Impress them on your children. Talk about them when you sit at home and when you walk along the road, when you lie down and when you get up” (Deut. 6:7, NIV).

Brothers get ‘er done: Aaron (right) and his oldest brother Nate (left) using their new CNC machine to begin building new piano keyboards.

The picture is not of a family scattering to separate spheres every morning and reconvening briefly at night. It is of a household whose work, meals, travel, and rest are woven together enough that the commands of God can be explained “on the way” without scheduling a special event. When the Lord warns Israel about forgetting Him, He does so in economic terms:

“when you eat and are satisfied, when you build fine houses and settle down... then your heart will become proud and you will forget the Lord your God” (Deut. 8:12–14, NIV).

Climbing the corporate ladder might give us nicer things, but it is hard to impress much of anything on our children if we aren’t there to do it. A family business can better allow us to mix vocation, wealth, and worship. Parents are able to disciple their children in the middle of their actual labor – plowing, harvesting, buying, selling, paying wages, and resting on the seventh day.

Family businesses, at their best, have been one of the most natural ways for that kind of life to happen in a modern economy.

In the farm and shop I grew up in, we didn’t schedule a seminar on honesty; we watched my father explain to a customer why a job would cost more than he’d first estimated. We didn’t need a lecture on Sabbath; we saw machines sit idle on Sunday even if the weather was perfect. In many Reformed communities, the stories are similar. Children stand next to their father on a jobsite and see how he handles an unreasonable client. They hear their parents talk at the supper table about whether to take on a contract that will overload the crew and crowd out worship.

That is Deuteronomy 6 discipleship: not just catechism questions at the table, but a whole economy lived under the Lordship of Christ, with children close enough to see it.

When our work is hidden from our children – behind factory walls, office towers, and a firewall of “confidentiality” – we don’t just lose an apprenticeship. We lose one of God’s ordinary means for teaching the next generation what it looks like to love Him with heart, soul, and strength in the real world.

Inheritance is more than money

It’s tempting to think of succession almost entirely in financial terms. A business is an asset. It can be passed on, sold, or wound down.

All of that matters. But if we think only in those categories, we miss the deeper covenant issue.

The fruit of their labors: The family farm roughly 20 years ago – in front of the stacked pumpkins are Aaron’s grandparents Larry and Janic, with his father.

On our five‐generation farm, we never inherited a corporation with a boardroom. What we inherited was a way of being in the world:

• You get up when the work needs you, not when you feel like it.
• You tell the truth about your work, even if it costs you.
• You remember that the land and the tools are the Lord’s first, yours second.

Similarly, in my father’s piano business, we didn’t learn a brand so much as a posture:

• Take difficult jobs seriously.
• Serve people who can’t quite afford you with the same care as those who can.
• Build something that will outlast your own two hands.

For many in Dutch‐Reformed circles, the inheritance has similar contours. A grandfather who refused a union oath starts a small firm. His children grow it. His grandchildren now run companies that sponsor the local Christian school and employ young people in the congregation.

Selling such a firm when there is no successor, the burden is crushing, or health demands a change, is not automatically wrong. But to treat the business only as a commodity, with no conversation about whether God might be calling a son, daughter, or son‐in‐law to shoulder the responsibility, is to miss the covenant dimension.

Inheritance, biblically, is not just “what you get when dad dies.” It is the whole package of land, vocation, name, and reputation that one generation entrusts to the next. It is the field where you teach your children to drop seed at the right depth and the shop where you let them solder their first shaky connections.

If we have sons and daughters who could, in principle, step into that inheritance – on the shop floor, in the office, or by reshaping the business for a new age – have we spoken to them about it as a calling question, not just a career option?

Why the Church should care

At this point someone might object: “Isn’t this just nostalgia? Not everyone can or should work in a family business. Many faithful Christians are employees, teachers, nurses, civil servants.”

That’s true. Scripture honors all honest work done as unto the Lord. Not every household will own land or a company. Not every child should take over dad’s trade.

But we should be honest about what we lose when family enterprises quietly disappear or become indistinguishable from any other professionalized asset.

We lose visible catechism in work. Children learn less from lectures on diligence than from watching their parents do good work under pressure. When work is invisible, that formation weakens.

We lose natural apprenticeship for the non‐academic. In many of our churches, there are young men and women whose gifts lie in their hands, eyes, and instincts rather than in essays and exams. Family businesses are often the first place those gifts are noticed, valued, and harnessed for the kingdom.

We lose a dense network of employers who “get” covenant life. When Christian schools rely on tuition flexibility and bosses who understand a young person might need time off for a cadet camp or a profession‐of‐faith class, they are often leaning on owners shaped by our own churches. If those owners sell to distant corporations, the culture changes, even if the logo stays the same.

This is not an argument that every elder must cut back on evenings or every father must start a company. It is a plea to recognize that in God’s providence, our churches and schools stand on the shoulders of men who, rather than yielding to certain pressures, built businesses that now sustain us. If that ecosystem decays, the fallout will be spiritual long before it is merely financial.

Where do we go from here?

What might it look like to take this seriously without turning it into a new law? A few modest proposals.

For business owners:

  • Bring your children in intentionally – not as free labor to exploit, but as sons and daughters to form. Give them real responsibilities at age‐appropriate levels and show them how their contribution matters.
  • Narrate your decisions. When you refuse a dubious deal, honor a warranty that technically expired, or decline work that would compromise Lord’s Day worship, explain why and tie it to the character of the God you serve.
  • Talk about succession as calling. If there is a realistic path for a child or in‐law to carry the business forward, invite them into that discernment early. If there isn’t, be honest about that too, and help them see how the skills and instincts they learned can bless the broader church.

For churches and schools:

  • See ordinary vocation as God does. Pray by name, from the pulpit, for tradesmen, small business owners, and farmers as you do for missionaries and office‐bearers, knowing that we all need God’s grace and support in every one of our endeavors.
  • Encourage apprenticeship. When a young person is drifting, consider whether what they need is not another program but a place at someone’s side from 7–3, five days a week.
  • Be realistic about meeting loads. If a father steps back from a board so he can spend one more evening a week in the shop with his teenagers, that can be a wise, praiseworthy choice – but it shouldn’t be beyond gentle questioning. Some men need encouragement to make family a priority; others need encouragement not to neglect the church. Wise elders will help discern which is which, so that neither the household nor the congregation is quietly sacrificed.

None of this is a guarantee that every family business will survive, or that every child will embrace the inheritance offered. In a fallen world, some shops will close and some children will walk away. God’s kingdom is bigger than our particular enterprises.

But Deuteronomy 6 will not be repealed. Until Christ returns, God will continue to call parents to teach their children when they sit, walk, lie down, and rise. The question before us is not whether we can recreate the 1950s, but whether we will steward the structures He has already given – farms, shops, firms, and offices – as places where that kind of life is even possible.

When a family business dies, it is not only a sign that comes down and a building that goes dark. A small ecosystem of covenant life dies with it: a place where children could see faith, work, risk, generosity, and repentance played out in real time. We won’t all reopen shops. We won’t all farm five‐generation land. But we can all fight, in our own callings, to keep work, wealth, and worship from drifting apart – and where God has given our communities family businesses with deep roots and wide branches, we can at least pause before we cut them down and ask whether the next generation might yet learn to climb them.

Aaron Reyburn grew up on a multigenerational family farm and now serves as shop foreman in a three generation piano service and rebuilding shop. He also enjoys writing, and owns a small Christian publishing house, Reyburn Press. The picture at the very top is of Aaron and his dad, while receiving training at the Steinway and Sons Piano Factory in New York, to further their education in the industry. Those are piano rims drying after being pressed into shape.

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Economics

Let's not be the squeaky wheel

Fewer people are using VIA Rail, more trains are behind schedule, and the Crown corporation continues to bleed money by the millions: that’s what Canada’s Auditor General found when he took a close look at the passenger service this spring. In 2014 VIA had revenues of $280 million, but spent $597 million in operating costs, plus another $82 million in capital projects (putting down tracks, etc.). That works out to a loss of $399 million, all of it covered by the government. So what did taxpayers get for their money? Well, an economy ticket for a four-day trip from Vancouver to Toronto is roughly $500, but the true cost is $1,100, with the government chipping in the difference of $600.  Even with government subsidies of $55 million for the Vancouver-Toronto route, VIA Rail can’t compete on speed or price. In comparison an economy ticket for a flight on WestJet for the same route can be had for $300 and will take five hours. A bus ticket for a three-day Vancouver-Toronto trip is as little as $250. Government intrusion into the marketplace has left us with a business that is slower, more expensive, and costs hundreds of millions of Canadian tax dollars each year. Why, then, does VIA Rail still exist? Because every time they cut service on unprofitable routes, ticket buyers – those who get the bulk of their ticket price paid for by taxpayers – protest. And these squeaky wheels continue to get greased. What’s the takeaway for us? Let’s not be that sort of squeaky wheel. We can make use of VIA’s service for as long as they exists – we don’t need to feel guilty about taking advantage of their subsidized ticket prices. Why? Because so long as their trains are going to keep running whether profitable or not, our ticket purchases will amount to a small decrease in VIA’s overall losses. However, if VIA proposes cutting a money-losing route – even our favorite route – then we must not squeak! It’s one thing to make use of wasteful government services, and quite another to demand the government continue providing these services. On what biblical basis can we argue that others should be required to subsidize our scenic train trips? This originally appeared in the July/Aug 2016 issue under the title "Government train can't beat WestJet plane... or Greyhound bus."...

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Economics

Tariffs are terrible economics: why Canada shouldn’t hit back

Free trade – free of barriers and restrictions – has, traditionally, been pretty exclusive to the Right side of the political spectrum. But now, with President Trump implementing tariffs on steel and threatening tariffs on Canada and Mexico, we’re even hearing the Left talk about the harms that tariffs could cause. And not just to Canada and Mexico, but to American consumers too. As the far-left stalwart Alexandria Ocasio-Cortez (aka AOC) noted on X, “Remember: *WE* pay the tariffs….Trump is all about making inflation WORSE for working class Americans, not better.” But what is she talking about when she says Americans pay the tariffs it charges? Think of it this way. Imagine two towns located right next to each other – Town A and Town B – and each has a car mechanic. These mechanics are full-service: they go right to your house to do the repairs. The only difference between the two is that the car mechanic in Town A – let’s call him Arnold – is way cheaper, so not only do all the folks in Town A use Arnold, so do most of the folks in Town B. That, understandably, makes the mechanic in town B – we’ll him Bill – quite unhappy, as it really hurts his business. So Bill demands that his town put in a tariff of sorts. He wants a 25% surcharge on any “out of town” car mechanics. He argues that this surcharge will be incredibly beneficial – applying it to Arnold for the work he does in Town B will help fund Town B’s government. It will also help protect Town B’s homegrown car repair businesses – Bill’s – by making his prices seem more competitive. And, Bill notes, if he gets more business, the government will benefit from the taxes he’ll pay. Bill pitches his tariff/surcharge as a win/win all the way around. But Bill is forgetting someone – several someones, in fact. The surcharge will make Arnold’s prices higher. Any Town B clients who do continue to use him will now be paying 25% more. And any clients he loses to Bill will be impacted too, having to pay Bill’s higher prices for their car repairs, taking a bigger chunk out of their household budget than ever before. In other words, Bill is staying in business at the expense of the car repair consumers in his own town. That’s not win/win at all – that’s a win for Bill, at the cost of everyone else in town. This is what AOC meant when she said that Americans will pay the tariffs they charge. Canada rightly fears American tariffs on the energy and goods they produce. Those tariffs could hurt our producers badly. But hitting back at American tariffs with our own tariffs on US goods is only going to compound the pain. It might benefit some of our producers – whoever makes the goods that compete with imported American goods – but that benefit will come at the expense of Canadian consumers overall by making them pay more. Just like Town B’s car repair “tariff” hurt Town B’s citizens. Is there an explicitly biblical perspective to be brought here? Well, what about Leviticus 19:15? “Do not pervert justice; do not show partiality to the poor or favoritism to the great, but judge your neighbor fairly.” God equates justice and impartiality, which prompts a question: should a government take actions that benefit some of its citizens – some producers – at the expense of other citizens, the consumers and producers who use those goods? Isn’t that partiality? God also speaks to this in His Golden Rule (Matt. 7:12). “Do unto others as you would like done unto you,” applied to the economic realm would mean that car mechanic Bill wouldn’t argue for his surcharge because he wouldn’t want that same surcharge applied to everything he buys. If Town A has cheap car parts, or groceries, or gasoline, he’d love to be able to benefit. The fact is, tariffs always hurt consumers, so no matter what the US does, let’s not let tariffs beget more tariffs. Instead of putting up trade barriers, there are actually interprovincial trade barriers that we could greatly benefit from taking down, as Pierre Poilievre has been highlighting recently. In  the video below Remy highlights one of the ills caused by tariffs – fewer choices and higher costs. ...

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Adult non-fiction, Book Reviews, Economics

No Free Lunch: Six economic lies you’ve been taught and probably believe

by Caleb Fuller 20021 / 138 pages Every now and again I’ll hand out a book to any nephews or nieces willing to give it a go. And with Caleb Fuller’s No Free Lunch, I’ve found the next book I’m going to pitch to them. While Fuller addresses six lies, there is one truth he’s trying to present: that every opportunity you pursue, comes at a cost. What cost? The time and money you put into it – and here’s the important part – which can’t then be spent on other opportunities. This “opportunity cost” could be known as the “you-can’t-have-your-cake-and-eat-it-too principle” or, as the book title puts it, “there’s no free lunch.” So, then, when a government jobs program funds summer work for students, what we see is all the students getting jobs. But what we don’t see is the opportunity cost to this program – we don’t see all the other jobs that companies might have started on their own – and maybe full-time even – had the government not taxed them to fund their summer jobs program. Fuller shows how much damage is done by the well-meaning, but economically ignorant, and highlights how there is on many issues a consensus among economists on both the Left and Right, that politicians on the Left will simply defy. My only disappointment with this punchy book is that this Christian professor never makes plain why the Left fails, and the free market works. He never mentions how the foundation for the free market – private property rights – is simply obedience to God’s command, “Do not steal” (Ex. 20:15). In fact, God is not mentioned in the whole book. For a more explicitly Christian economics book sharing this same great name, check out David Bahnsen's No Free Lunch....

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Adult non-fiction, Book Reviews, Economics

Christian Economics in One Lesson

by Gary North 2015 / 268 pages Henry Hazlitt’s Economics in One Lesson is what its title suggests, just one economic lesson explained in the first chapter – that we focus on the obvious impact of a government program, and don’t consider what otherwise might have happened with those dollars. It’s the seen vs. the unseen. That one lesson is then repeatedly applied to different situations in the 24 chapters that follow. In chapter 4, it is applied to public work projects: when the government builds a new sports stadium we can see the job created by its construction. What’s unseen is all the jobs that might have been created by businesses if they hadn’t had to pay the taxes to build that stadium. Overall, Hazlitt is making a general argument for less government and more economic freedom, but is making it on the basis of practicality: that a free market approach will make us all, overall, more prosperous (download the book for free). Effectiveness is the fruit, not the goal In his Christian Economics in One Lesson, Gary North makes his argument for free market economics on a very different basis: obedience. He also thinks the free market is the most effective way of making us all richer, but he sees that, not as a goal, but as a side effect – the fruit – of being obedient to God’s commands do not covet, and do not to steal. As his title suggests, he is riffing off of Hazlitt, and his chapters are a reworking of each of Hazlitt's. Economics is sometimes treated as a being simply about the math, about some sort of neutral accounting, pitting the different economic systems against each other to find out which creates the greatest benefit for society. Both socialists and capitalists could even agree that economics is about dealing with the problem of scarcity – there is only so much to go around, so how do we make the most of it? But North is arguing that economics is really a matter of ethics, and applying God's guidance on money, work, property, and covetousness to the real world. Then the better way is the way that obeys God’s commands. Now, like Hazlitt, North thinks the best system is the free market, and not the sort of so-called capitalism that involves getting government contracts and special favors. None of that crony "capitalism." This is, instead, a free market where people make exchanges voluntarily, and consequently, both sides benefit. No temptation to tweak But even as Hazlitt and North both hold to the free market system, it is significant that they got there very different ways. Hazlitt got there because the free market works – it is the most prosperous of all systems, doing more to raise people out of poverty than any other economic system before it. North arrives there because the free market is what results when we are obedient to God, respecting our neighbor's property and pushing back against our own covetousness. So, both support the free market. But for those like Hazlitt who arrived there for practical reasons, there will always be the temptation to tweak, and in doing so, to succumb to socialism. If capitalism works best, who's to say if capitalism plus just a smidge of socialism might not be better? Maybe just 5%? Or 10? How can we know unless we try? But there isn't the same temptation to tinker for Christians who choose the free market for its alignment with God's Word. We won't want to be 5% or 10% less obedient. And it is worth noting it is no coincidence that the economic system that most aligns with God's Word is also the one that best raises people out of poverty. That's simply God's love – He knows what is best for us, and when we obey, especially when we do so on a societal level, it goes better for us. Conclusion North's insight – that economics is about ethics, not efficiency; it is about obedience, and not prosperity – is a brilliant one, and worth the reinforcement that comes in the repeated applications that follow. If this isn’t the most important book I read last year, it is certainly in contention… and it can be downloaded for free here....

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Adult non-fiction, Book Reviews, Economics

Economics in One Lesson

by Henry Hazlitt 1946 / 193 pages Universal basic income, a four-day work week, and government-funded daycare are just a few big-ticket proposals that are gaining momentum nationally, and even within our own church circles. All these proposals boil down to getting more while doing less. Promises have been made that middle and lower class families will not have to pay a cent more in taxes but the wealthy 1% will do all the heavy lifting.  In Economics in One Lesson, Henry Hazlitt argues that all these policies can’t deliver what they promise. He argues that many of these proposals only focus on a special interest group in the present and fail to consider how the proposal will affect the general populace both now and in the future.  For example, when a government announces a multitude of public “make-work” projects, at first glance these projects seem like a good idea, or at least seem like they couldn’t do any harm. The citizens get: An employment opportunity  Tangible infrastructure But Hazlitt warns that although these benefits look attractive, there are many indirect consequences that are not considered.  First, someone must pay for these employment opportunities. For every dollar spent on a public work project, a dollar will be taken away from a taxpaying citizen. Not only are the citizens as a whole worse off, there is now less money for them to create new jobs. Second, now that the infrastructure exists it is easy to assume that without that piece of infrastructure the country would be worse off – having a bridge would seem obviously better than not having a bridge. But in reality, one thing has been created instead of others. Instead of the government-built bridge there could’ve been citizen-built houses, or cars, or dresses and coats. All of these items are unrealized because the bridge is now standing. Although Hazlitt wrote this over 70 years ago, many of the issues he deals with are just as relevant as ever. We should be wary of governmental promises to ease our daily tasks. Our sinful nature yearns for an easy life; that is why these promises are so alluring to us. However, as Christians we are not called to an easy life. That does not mean that we should always seek out the hard way, but we shouldn’t become entangled in false promises of an easy way. To get Economics in One Lesson as a free pdf book, click here....

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Economics, Science - Environment

Thinking on the margin, or why some pollution is better than none

Another economic principle Christian teens (& adults) need to know ***** An important aspect of economics is counting the costs of an action or purchase, and, on the flipside, also evaluating the benefit that could result. With these two concepts, cost and benefit, we can understand how people make their decisions. When the benefit of taking an action is greater than the cost, people will take that action. For example, if buying a soda would bring you $3 worth of enjoyment, but it only costs $1, then you’ll choose to buy the soda. And afterwards, if you’ve had your fill of soda, you might hardly enjoy another soda, and perhaps value it at just a quarter. So of course you then won’t buy it for $1. What is “marginal thinking"? This example illustrates the meaning of the concept of marginality. When economists use the term “marginal benefit,” they are referring to the benefit added by the last unit purchased – in this case the last soda. Another example: when you decide whether to work for another hour, you don’t consider the cost and benefit of all the hours you already worked. Instead, you consider the cost and benefit associated with the final (or marginal) hour under consideration. So when you “think marginal," then think about the cost and benefit of “one more unit.” And whether people realize it or not, we all engage in marginal thinking. Imagine you’re deciding to buy an ice cream cone. Let’s say a single scoop cone costs $2, and every additional scoop costs 50 cents. When deciding whether to buy a single scoop you have to compare how much benefit you get from the single cone to the cost of the cone ($2). So long as you value the single scoop cone at more than $2 you buy it. When the marginal benefit of an action is greater than the cost, people will do that action. What about the second scoop? Well, each scoop is 50 cents, so you’ll choose to buy the second scoop if you enjoy it at a value more than 50 cents. You’ll keep purchasing more scoops but at some point, another scoop just won’t be worth another 50 cents to you, so you’ll stop. Why does it matter? So hopefully you understand marginal thinking, because now we have to consider why it matters. Marginal thinking is valuable in all sorts of applications. For students, marginal thinking can help you prioritize your studying. I always tell my students that, if their goal is a good GPA, they shouldn’t spend much time trying to improve their grade from a 96% to a 98%. Why? First, both grades are an “A” so the marginal benefit to your GPA is nothing. Also, once your grade is already high, it’s much more difficult to move it up. Therefore, the cost is high and the marginal benefit is low. Most students would be better off dedicating their time to working on a class where they have a 79% since the cost is lower – just a little more study could boost them up a letter grade – and the marginal benefit is higher. In Luke 16, Jesus tells the story of a man who manages the money of a rich man. The manager is going to be fired because of his wasteful practices. When he discovers this, he forgives the debtors of his master to make friends before he’s fired. Jesus tells us in Luke 16:8a, “The master commended the dishonest manager because he had acted shrewdly.” In 16:9 He goes on to give the meaning of the parable, “I tell you, use worldly wealth to gain friends for yourselves, so that when it is gone, you will be welcomed into eternal dwellings.” The point of the parable is not that we should be dishonest in our dealings. Instead, it’s that we should use our resources shrewdly for the Kingdom. Christians are called to be good stewards of the resources we are given, which includes our time. As the studying example above illustrates, effective use of time requires the ability to consider the relevant costs and benefits of a given decision. There’s a “good” amount of pollution and crime? Marginal thinking is also valuable when it comes to thinking about policy. Economists have a pithy saying: the efficient amount of anything is not zero. It’s tempting to believe bad things should be eliminated completely. For example, many people would likely support the phrase, “politicians should eliminate pollution.” But imagine what it would mean to eliminate the very last “units” of pollution. Almost every vehicle, either personal or those used for transporting goods and services, relies on some form of pollution to operate. If we had zero pollution, our grocery stores would receive zero food deliveries because we wouldn’t have semi-trucks, and they would receive zero visits from us, because we wouldn’t have cars.  Elimination of all pollution, at least at this point, would result in most of humanity returning to subsistence conditions – the cost is too high, and thus that is a “purchase” we shouldn’t make. Of course, some pollution should be eliminated. If a factory is dumping toxic waste into a public river, the cost of allowing the pollution to continue is very high. As strange as it might sound, the efficient amount of crime is also not zero. Imagine how much money and how many resources would need to be spent to ensure zero crime. We’d need a police officer on every street corner 24/7. Think of how high your taxes would need to be to support those pensions! Surely taxpayers have other priorities with higher marginal benefits than preventing some minor traffic violation. No Nirvana naivete This sort of logic can be summarized neatly by saying economics as a field is inherently opposed to the Nirvana fallacy. The Nirvana fallacy is the mistake that is made when people compare the real world to an unrealistically ideal alternative. We would all like to get a grade of 100% in every class and live in a world without crime or pollution. But these are unrealistic desires for this world. A solid understanding of marginal analysis complements the Christian understanding of our fallen world. When politicians offer us a vision of a world where all bad is eliminated, a clear understanding of marginal analysis provides us with an argument for why such a world is out of reach. Economists Armen Alchian and William Allen rightly summarize this in the foreword of their book Universal Economics. They say: “since the discouraging fiasco in the Garden of Eden, all the world has been a place conspicuous in its scarcity of resources, contributing heavily to an abundance of various sorrows and sins. People have had to adjust and adapt to limitations of what is available to satisfy unlimited desires.” In sum, marginal thinking helps us better understand the nature of our own decisions. When applied properly, this way of thinking provides a more sober view of the important decisions we make in our personal lives and in the public square. Peter Jacobsen is an Assistant Professor of Economics at Ottawa University and the Gwartney Professor of Economic Education and Research at the Gwartney Institute. He has previously written for both the Foundation for Economic Education and the Institute for Faith, Work, and Economics....

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Economics

THERE'S NO FREE LUNCH – an economic principle Christian teens (& adults) need to know

Small revolutions in schooling are occurring across the world. From homeschooling to microschools, many parents find themselves wanting more for their children in terms of education. Resources are available for independent schooling now more than ever, but some subjects remain difficult to tackle. My own field of economics remains elusive for many educators. Part of the difficulty is that many people don’t know what economics actually is. Many think economics is just composed of principles budgeting and investment. This view of economics and finance being the same is common, but it’s wrong. Instead, economics considers how people interact in a world where there are limited means but unlimited desires. The study of this interaction and the rules that govern it is of fundamental importance for anyone who wants to understand human flourishing, politics, or any topic of social importance. My high school economics teacher used to say, “everything goes back to economics.” Math and science, for example, are the tools people use to accomplish their goals. But the reasons they use these tools are economic. And I can’t think of a better starting point for understanding economics than the concept of opportunity cost. What is an “Opportunity Cost”? One of the most famous phrases in economics is, “there ain't no such thing as a free lunch.” This phrase is meant to illustrate the always present role of opportunity costs. Whenever you make any decision to do anything at all, you’re essentially choosing between two possibilities – your best option and your second-best option. Consider an example. Molly has three offers of how to spend her Saturday evening. She can study for her college algebra final exam, she can babysit for 3 hours at a rate of $15 per hour, or she can hang out with her friends. Let’s say her favorite option is to study, her second favorite is babysitting, and her third pick would be having out with friends. Since studying is Molly’s most urgent desire, she decides to allocate her time that way. But what did she give up? You might be tempted to say she sacrificed $45 and time with friends, but that isn’t really the case. After all, Molly couldn’t have babysat and spent time with friends. So even if she hadn’t studied, she would still have only been able to do one of these other options, so in a very real sense that’s the only option she was sacrificing. In this case, her second favorite option would have been to earn $45 babysitting. So, the “opportunity cost” of Molly’s studying is $45. To say it again, the opportunity cost is the option you value second highest and sacrificed when you decide to pursue your first choice. In this light, we can see every action has a cost. Time spent resting could be time learning or fixing up the house. Another hour of overtime at work is one less hour at home with family. Every time you say yes to one opportunity, that prevents you from accepting another. There is no free lunch. Why does it matter? The concept of opportunity cost is important for people to understand for several reasons. First, opportunity cost helps us understand some of the hard-to-see downsides of certain policies. Consider the income tax. If a government increases the income tax from 25% to 40% this has major ramifications for someone deciding whether they want to work an extra week during the summer for $1,500. With a 25% tax rate, the person takes home $1,125, while at 40%, the person only takes home only $900. Now let’s say this person values their relaxation time as being worth about $1,000 a week to them. Then this tax policy will make a big difference. The opportunity cost of working this week will be the equivalent of what this fellow valued for his time off: the opportunity cost for working would be $1,000. Now with a 30% tax rate, that extra paycheck is worth more to the person than the extra week off ($1,125 is greater than $1,000). But with a 40% tax rate, suddenly the relaxation is worth more ($1,000 is greater than $900)! So, by understanding the concept of opportunity cost, we can also understand that higher income taxes will mean people will work less. Even free comes with a cost Opportunity cost has practical usefulness too. Why is it that sometimes deals sound too good to be true? It’s because implicitly, we all have some understanding of opportunity cost. If a person offers to give you a free car, his opportunity cost is, at minimum, keeping the car for himself. Why would he give it away rather than keep it? Is it possible he is getting something from you? Something having a price of zero dollars is not the same as something being free. When my local ice cream shop offers “free” ice cream, I know there’s going to be a line going out the door. When I take into account the fact that my time is valuable, I realize waiting half an hour in line for free ice cream could have a higher cost than paying the regular $3 but without waiting. To learn more… If you’re interested in learning more about opportunity cost and how it applies in the world, I highly recommend reading Economics in One Lesson. Author Henry Hazlitt does an excellent job of applying the logic of opportunity cost, and the book will only cost you your time (as it is a free download at fee.org/resources/economics-in-one-lesson). And trust me when I say, it’s worth the opportunity cost. Peter Jacobsen is an Assistant Professor of Economics at Ottawa University and the Gwartney Professor of Economic Education and Research at the Gwartney Institute. He has previously written for both the Foundation for Economic Education and the Institute for Faith, Works, and Economics....

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Economics

The hidden tax of inflation

Prices are on the rise in many countries around the world. Price increases are measured by a statistic called inflation, which expresses the percent prices have increased on average over some period of time. Canada saw its highest rate of inflation in over a decade in July when the annual pace of inflation hit 3.7%. Compared to the U.S., though, Canada is in a relatively good spot. The Consumer Price Index (CPI), which measures inflation by comparing a fixed group of goods over time, rose to 5.4% for the month of July. This ties with June’s numbers for being the largest rate of price increase since 2008. An alternative measure of inflation, the Personal Consumption Expenditures Index, reached its highest rate in 30 years. Economists have mixed feelings about how long inflation will last, but one thing is clear. Prices are on the rise, and you’ve likely noticed your money isn’t stretching as far as it used to. So why is this happening now? Well, Nobel-price-winning economist Milton Friedman famously commented, “inflation is always and everywhere a monetary phenomenon.” In other words, if you want to see why prices are rising, follow the money. Money-printing mania When a central bank prints more currency and puts it into circulation, those who get first access to the money are in for an unexpected payday. So, what will they do with this new money? Well, some of it will be saved, but some will be spent. Suddenly the newly printed money in your pocket might let you buy something you’ve had your eyes on for a while. The store then generates more revenue which can go to investors or paying new workers. So, spending increases, and this might not sound so bad so far. But this is when the problems began. As that new money goes into the pockets of new workers or investors, they spend some of it too. But, as demand increases while this new money circulates, prices begin to rise. There are more dollars in the economy, but the same amount of stuff. So, the value of dollars decreases relative to the value of goods and services. Money loses some of its value, and prices rise to reflect the money’s lower value. When the central bank prints money, it creates this process whereby money loses its value. This is exactly what’s happening around the world. In Canada, a common measure of the quantity of money in circulation shows an increase from $1.8 trillion at the beginning of 2020 to $2.2 trillion today. That’s approximately a 22% increase in the quantity of Canadian dollars in circulation in less than two years! As you might expect from the higher rate of inflation, the increase in the supply of US dollars has been even more alarming. The supply of US dollars has increased by 32% in the same period. Nearly one-fourth of all U.S. dollars in circulation today were printed since January 2020. This money printing, unprecedented in recent history, was in a large part to prop up economies being damaged by COVID-19 lockdowns. However, we’re beginning to feel the effects of this temporary solution, and Christians should recognize the consequences of money-printing. Inflation hurts savers… especially among the poor The problem isn’t simply that, after a period of having more money, consumers now have to face higher prices. Remember, the first person to receive new dollars is able to benefit from spending them. However, as the money circulates more, prices begin to rise. This means not everyone gets the benefit from this newly printed money. And this new money comes at a cost. As prices rise, the money in people’s savings account loses value too. In this way, inflation acts as a tax on savings. By taking future purchasing power from the thrifty, government can print money and give it to private banks to lend to businesses today. Inflation hurts savers. There are a few work-arounds to this problem. There are financial tools which help savers to shield the value of their money from the degradation to inflation, but, unfortunately, these tools and methods are costly to learn about and utilize. As such, we should expect inflation to be especially deleterious to poor and middle-class savers who don’t have time to focus on protecting their wealth since their weeks are consumed by making enough wealth to survive until the next paycheck. The problems don’t end there. While some have the luxury of a job where pay can be re-negotiated easily, this is not true for everyone. Many jobs involve contracts wherein workers agree to a specified wage rate for a definite period. In this case, not only is the savings account of these workers losing value due to inflation, but the weekly paycheck they receive will also be hurt. If you receive the same paycheck every two weeks, but the paycheck can buy you fewer goods and services due to price increases, you’re worse off. Economists call this a decline in the real wage. Why would the government inflate? So what is the benefit to government lowering the purchasing power of citizens? Well, there are a couple of benefits to government. First, a government can lower its debt burden. Governments often finance spending by selling government bonds. These bonds are promises to pay back the purchaser with interest. When inflation strikes, prices and nominal wages rise. As a result, the amount of tax revenue the government collects increases. This makes it easier to pay back debt which remains stagnant as prices and incomes rise. Second, remember that the “new” money maintains high value before it circulates widely. As a result, government can appease special interest groups in the financial industry by putting the newly printed money into banks first. The new money in banks provides access for large corporations to take the high-powered money out as loans for new projects. Be wary of the inflation tax Christians should be especially wary of the tax imposed via inflation for two major reasons. First, inflation disproportionately impacts the poor. When prices on everyday goods like groceries, energy, and transportation rise, this disproportionately hurts the poor. While 5% more expensive food is a relatively small increase for a millionaire, food can easily make up a huge percentage of monthly pay. Someone living paycheck-to-paycheck can’t afford a rise in prices. Further, the wealthy often receive income through financial assets like stocks. Stock prices also tend to increase during times of inflation, so the income of the rich stays relatively stable. The poor, often locked into prior wage agreements, don’t see their incomes rise immediately with inflation. Second, inflationary policies encourage behavior the Bible explicitly calls foolish. Proverbs 21:20 (ESV) tells us, “precious treasure and oil are in a wise man's dwelling, but a foolish man devours it.” This verse is descriptive. A fool consumes all of his wealth, whereas a wise man saves it in his dwelling. However, remember that inflation destroys the value of savings. If someone was keeping $1,000 in savings, and a grocery store trip costs $200 before inflation, and $250 after inflation, the saver goes from being able to afford five trips to being able to afford four. If instead, the consumer had used the $1,000 to buy a new flatscreen TV, inflation would not have had any effect. This example illustrates an important point. Because inflation taxes savers, it discourages frugality and encourages consumerism. Why save for tomorrow if money-printing is going to make savings worthless? Unfortunately, monetary policy is hardly, if ever, discussed on political debate stages let alone Christian churches. However, if we believe our role as Christians in democracy involves looking out for the poor among us, we should watch out for policies which seem tailor-made to harm their interests. Peter Jacobsen is an Assistant Professor of Economics at Ottawa University and the Gwartney Professor of Economic Education and Research at the Gwartney Institute. He has previously written for both the Foundation for Economic Education and the Institute for Faith, Works, and Economics. References https://fred.stlouisfed.org/series/M2SL https://ycharts.com/indicators/canada_m2_money_supply...

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Economics

What does a Reformed entrepreneur look like?

What is it about Reformed Christians that has so many wired to be entrepreneurs? Think about all the landscape professionals and nursery operators in Ontario, the construction companies and dairy farms in BC, and the myriad cabinet shops in southwestern Australia! Very different businesses, but every company began with the dream of an individual or team that saw a need in the marketplace for their expertise: “We can do this better than others, and we can provide for our families and employees by sharing our expertise with the public, and charging the right prices for what we do.” That concept might sound mundane to some, but it’s incredibly invigorating and challenging to an entrepreneur! But what should we as Reformed Christians look like as entrepreneurs and employers? And how can we use God’s Word to guide us as leaders in the workplace? How can we be effective witnesses for the Lord, and conscientious stewards of what He provides for us? Be willing to take on responsibility Along with the excitement of starting something new, the Christian entrepreneur will also face many hurdles and pressures. When you work for someone else, you are rarely confronted with the realities of making sure there are enough funds in the bank to make payroll, or worrying that your biggest account won’t pay their bill on time so that you can send out checks to your vendors and partners. Especially early in a company’s life, the owners have many decisions to make and can feel like they are the only one worried about whether or not their enterprise will survive. These pressures multiply when the owners hire their first employee: we have to recruit the right people with the right skills so the company can grow; we need to file reams of paperwork with multiple government agencies; we need to choose and purchase benefit packages we might never have thought about. Despite the additional pressures, entrepreneurs who have a team can be many times more effective than when they are on their own. Be ambitious Throughout the Scriptures, the Lord commands His people to be hard-working, diligent, and industrious, not so that they would become rich, but because He wants us to use for His glory the gifts He has given us. In Matthew 24, the Lord Jesus praises the work of the two servants who managed well the funds their master entrusted to them. The master is furious with the servant who just buried his treasure in the ground: “You wicked and slothful servant!” And he commands that this “worthless” man be cast into the outer darkness. We do not know specifically what the two righteous servants did with the money they received (the first “traded with them,” and the second “made two talents more,”) but we do know that they were commended for their diligence. “Well done, good and faithful servant!” While some in today’s culture may look askance at profit-making, the Bible never condemns this basic tenet of capitalism that makes a free market function. Use your growing influence to aid and not exploit As they worked hard, and aimed for a return on their investments, God’s people were also to deal righteously with their servants and laborers. In Deuteronomy 24:15, the Lord through Moses instructs landowners: “You shall not oppress a hired worker who is poor and needy, whether he is one of your brothers, or one of the sojourners who are in your land within your towns. You shall give him his wages on the same day, before the sun sets (for he is poor and counts on it), lest he cry against you to the Lord, and you be guilty of sin…” The Lord is angered when profits are made by those who mistreat or cheat their employees. In James 5, those who have “hoarded wealth” are warned that “the wages you failed to pay the workers who mowed your fields are crying out against you… The cries of the harvesters have reached the ears of the Lord Almighty.” Pay others as you would like to be paid In a recent issue of Reformed Perspective, Peter Jacobsen wrote about the negative effects of minimum wage policies – unintended consequences such as higher unemployment among the young and less skilled, and even intentionally evil consequences such as economic punishment of recent immigrants willing to work for lower wages than native-born employees. Jacobsen cited the writings of economist Thomas Sowell, a black American economist who delights in using real data to debunk “woke,” generally accepted theories about socialism, communism, racism, and more. Christian business leaders need wisdom to discern what is best for their employees, for the health of their company, and for their customers. Since we are commanded to be righteous and generous in how we treat our fellow workers, hopefully a hike in a mandated minimum wage does not have a significant impact on our businesses, since we are likely being far more generous with most of our workforce. Create opportunities for others to be fruitful Not only must we never withhold the wages earned by employees, we are also not to be so focused on profit that we leave no opportunities for others to profit from our enterprise. After instructing about paying wages on the same day as earned, Moses commands that farmers should leave enough crops in their fields for others to glean: “When you reap your harvest in your field and forget a sheaf in the field, you shall not go back to get it. It shall be for the sojourner, the fatherless, and the widow, that the Lord your God may bless you in all the work of your hands” (Deut. 24:19). King David’s great-grandmother benefited from this generosity to the poor! Are there ways that we in our modern workplaces can put in place similar policies that would help our neighbors, and our brothers and sisters? In my hometown, a local company owns and maintains a scenic, rural retreat and training center that it makes available for no cost to Christian organizations. This same company has hired a part-time chaplain to be available for their employees as they need a listening ear, and invites other local employers to avail themselves of this minister’s services. Another company nearby hires mentally disabled employees for janitorial work. Might the floors be cleaner and the windows sparkle more if a contract service were used? Possibly. But what a joy to be able to provide work and routine for those who otherwise might not have such opportunities. Seize the charitable opportunities that come with business success The principle of tithing and charitable giving also has a place in this discussion. Christians are expected to be generous with what the Lord has given. In 2 Corinthians 9, Paul reminds his readers “Whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” And in 1 Corinthians 16, Paul writes “On the first day of every week, each one of you should set aside a sum of money in keeping with your income” (NIV). The phrase “in keeping with your income” (or “as he may prosper” in the ESV) is telling: business owners often enjoy seasons of prosperity beyond what a typical wage earner may experience, and should be known for their generosity to causes that benefit their church community, and their neighbors’ well being.  May the Lord continue to bless the businesses in our church communities, and give wisdom to those entrusted to run them for his glory. Marty VanDriel is the CEO of a manufacturing company in Ferndale, Washington. Comments, feedback, and also suggestions for future topics dealing with business, employment, and finance are more than welcome at [email protected]....

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Economics

The impact of saying, “I’m so busy”

How many times have you asked someone “How are you doing?” and they respond with “Busy!”? In that response, they did not actually answer your caring inquiry and they unknowingly sabotaged their credibility as a leader.  Further, in their hurriedness, they potentially hijacked an opportunity to bless.  As Christ-following leaders, here’s why I suggest we do well to remove this response from our repertoire… and learn better ways.  Let me explain. We’re all busy. That comes with the position of being any sort of leader. However, even as deliberate leaders are often busy, they are not hurried.  Jesus himself was very busy, but not hurried.  I would suggest that responding with, “I’m so busy” does three things: Reveals our leadership Drains our credibility Limits the God-story 1. It reveals our leadership Newsflash: We are not a “hero” by being busier than others. Being busy is not a badge of honor. Our culture has hoisted the notion of "busyness" onto such a pedestal that many have simply learned to respond this way merely as a status symbol. In the past, I would work ridiculous hours – and be sure to let others know (subtly of course to maintain my “martyr syndrome”).  I burned the candle at both ends with noble church and community work.  I would even brag about my lack of sleep that week, or not attending my family’s vacation because “I have so much to do.”  Worse yet, I thought less of others who didn’t.  I viewed them as lazy or irresponsible.  I was unaware and delusional, arrogant, and prideful.  I wore my hurriedness as a badge of honor. Not only was it destructively sad, but it was also poor thinking.  More yet, it was weak theology, because I didn’t have my identity in Jesus.  My sense of worth came from what I did and accomplished… and what it took to get there.  I would even show up to public functions late and rushed, hoping guests would think, “Man, that guy sure works hard. Look at all his obligations and responsibilities. He’s so industrious… such a servant-heart.” Does that mean all who respond with “I’m so busy” are like I was?  Of course not…  but an addict can easily spot another addict. It doesn’t have to be this way.  Hang around effective leaders for a while and you’ll notice an inner calm and resolve, despite being in the press. A Christ-following leader rests in the unresolved.  They offer a vulnerable, gracious, or inquisitive response… despite being busy. 2. It drains my credibility Rather than being a badge of honor, responding with “I’m so busy” can actually convey: I’m not helping others grow: Show me someone who keeps telling everyone they're busy, and you often see a leader who needs to grow in investing in others.  Effective leaders know how to build, enable, and inspire people to accomplish something bigger and better than they could do on their own.  They look for smarter ways. I'm disorganized: In a lot of cases, a frantic pace is simply a lack of organization and healthy habits. I don't have clarity of what matters most: Without clarity of purpose, and focusing on what’s most important, it's easy to get lured into the frenzy of putting out fires because “I’m so” It might look like hard work, but in many cases, it's just squandered energy. I can’t say no: Enough said. 3. It limits the God-story Starting conversations about how busy you are is a great way to miss an opportunity to witness and bless others.  Why?  Unknowingly, you put up a wall with someone who cared enough to genuinely see how you’re doing.  We’ve also stunted the opportunity to share deeper reflections about where God is at work in your life.   We’ve limited others to see His beauty in the middle of trial or challenge. Ultimately, by saying, “Oh, I’m so busy”, others don’t get to be blessed by the work God is doing in this challenging season of life you’re in. Deliberate application  So, what might be a better way to respond when someone asks, “Hey, how are you doing?” Be thoughtfully deliberate.  Because being real opens meaningful conversation.  Maybe something like, “I’m doing well. Life’s a bit challenging right now, but it is well with my soul. Pressed but not crushed. You know, God is really showing me… Be vulnerable and curious. Because vulnerability builds trust and invites in a God-story.  “I’m actually in a season of struggle right now. Doing well, but feel stretched too thin. How do you manage to juggle all your roles these days? …Could we pray together?” Be a hope dispenser.  Because everyone needs encouragement in their busyness.   “Yes, well I’m really enjoying where God has me right now. What that looks like is…” This one of a ten-part series, “Moving from Hurried to Purposeful” that Darren Bosch has written for DeliberateU, a Christian business leaders mentorship group. ...

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Economics, Science - Environment

Manure into mattresses – we can "create" resources

Economist Julian Simon's key insight is that man's creativity – his brainpower – is a resource that creates other resources. So while some view a rising population as a threat to limited resources ("We're going to run out of oil!") Simon viewed a growing population as a growing resource base. Our brains, when properly applied, could in a reflection of God's own creativity, turn nothing (or next to it) into quite something. For example, when copper – a key element in our phone lines – started getting very expensive, this motivated some smart chaps to develop a much cheaper alternative: sand! That's what our telephone lines are today: Sand (silicon) + Human Creativity = Fiber optic cables Making sand into something is amazing enough, but a much more impressive example of "resource creation" is the way some farmers have turned poop into bedding (or if you prefer alliteration, manure into mattresses). It is quite a story! Rising prices prompts creative thinking Down where I live, in the Northern Washington/Southern BC area, some dairy farmers used to use sawdust as a cheap bedding material for their cows. The cows could sleep in it, poop on it, and the farmer could then come along, clean it out, and put a new layer down. Sawdust clumped together, making it easy to scoop away, but perhaps its most attractive quality was its cheapness. Sawdust used to be viewed as a waste product from the lumber industry – they couldn't give it away and would even bury it. But then creative farmers created a market for this castoff. Or to put it in more mathematical terms: Sawdust + Human Creativity = Cow bedding Some time later, other creative folks started to see more ways that sawdust could be used, including as fuel. Because it originated as a lumber waste product it was cheaper than many other fuel options. So some greenhouses owners figured out a way to use it to heat their buildings, and started to outbid the farmers. This result was this waste product – nothing more than garbage before human brainpower got involved – had so increased in value that farmers could no longer afford it. They needed to find a cheaper option for their bedding! And then it happened. Some ingenious dairy farmer, probably sitting out on his tractor staring out across his manure lagoon, started thinking about the possibilities in all this poop. The result was a separation system that used the undigested fibers found in cow manure. This is fed into a rotating drying drum, where high heat kills the germs, and the output is fibrous bedding material for the farmer's cows. Poop + Human Creativity = Cow bedding Manure has been turned into mattresses! Conclusion Julian Simon was an atheist, so he didn't understand why we have this capacity – why we have a mysterious, awesome ability to use our brains to create something out of nothing. But Simon did recognize Man was more than his mouth; he understood that Man wasn't best understood as a consumer of scarce resources, but that instead Man has an ability (and Christians would add, a calling) to be a producer of plenty. So, in this limited way, Simon has a more accurate understanding of Man than any of his critics. So where does our creative capacity come from? It is a reflection of God's creative Genius. We can't create ex nihilo – out of nothing – like God does, but when we take what was once useless, and put it to productive use, we show ourselves to be His image-bearers....

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