THE WEALTH OF NATIONS & Adam Smith's Invisible Hand

Hear this, you who trample upon the needy, and bring the poor of the land to an end, saying, "When will the new moon be over, that we may sell grain?  And the sabbath, that we may offer wheat for sale, that we may make the ephah small and the shekel great, and deal deceitfully with false balances, that we may buy the poor for silver and the needy for a pair of sandals, and sell the refuse of the wheat?" (Amos 8:4-6).

Seventeen seventy-six was a good year.  Some of history's greatest literature was published that year, including, The Wealth of Nations by Adam Smith.  One of Smith's beliefs about economics was that there is an invisible hand that guides economics as human beings go about their everyday taskes of meeting their needs, living up to their responsibilities and fulfilling their desires.  Because of the "invisible hand" the free-market economy should always be sound.   For the most part, I agree with Smith; the economy will take care of itself if people are honest, compassionate and industrious.  It's just that sin is the problem, entering in to corrupt the whole economic system.  Nevertheless, there is an invisible hand that is relentless in bringing about the purposes of God; violations of God's economic laws are eventually met with stern punishment.

Some have suggested that the power of government can regulate the economy so that there will be no corruption in the economy.  Truth is, however, that sin is in the institutions of government too so that government is corrupt.  Who will police the police?  Who will regulate the regulators?  Who will judge the judges?  There is no less corruption in government than there is in private business world.  Our founders understood this well and thus provided for checks and balances and separation of powers in the Constitution.

I am blessed with a locally owned bank to provide financing for my agricultural operations.  The bank is doing well in these tough economic times and my loan officer shared with me the reason why, 'A bank is only as good and successful as the people in the community.'  His testimony reinforces my belief that, way more than any other factor, the wealth of a nation is the character of its people--natural resources have little to do with it.  Trustworthy, compassionate and industrious people are the greatest wealth to any nation!!!

Grace&Peace;
Tom