Inflation, Does God Offer Us Any Answers?

The decreasing value of money caused by the increasing price of products and labor is alive and well in the world today. It would be great if we could open our Bibles to the Concordance and review God’s perspective on a huge issue. Sorry, inflation is one of those words in common use that the Bible does not use. From the perspective of economics, inflation is an increase in overall prices and a corresponding decrease in the purchasing power of the money in circulation. And yes, our Bible does offer us God’s perspective on this economic phenomenon. Let’s look at three of the causes.

The Siege

An attack on Israel by the Aramians (Syrians), occurred during the reign of King Jehoram. This resulted in a period of extreme inflation. It involved the siege of the capital city in Samaria and led to a lack of goods and out-of-control inflation.

(2 Kings 6:24-25) ¹NIV New International Version Translations– Sometime later, Ben-Hadad king of Aram mobilized his entire army and marched up and laid siege to Samaria. There was a great famine in the city; the siege lasted so long that a donkey’s head sold for eighty shekels²about 2 pounds of silver and a quarter of a cab³about 1/4 pound or 1 cup of seed pods⁴ doves’ dung for five shekels⁵about 2 ounces.

Inflation was so bad that food and fuel became unaffordable. People, if they had money, were eating donkey heads and burning dove droppings to cook with. King Jehorham was ready to give up and surrender to Aram. He blamed the situation on God rather than on his poor leadership and sinfulness. You might think that this is too strange and doesn’t happen anymore. However, the siege of an economy can come through several methods. While wars are obvious, regulatory sieges are more subtle. The siege of an economy can also come from governmental regulations such as prohibitions on the use of fossil fuels, the forced shutdown of an economy due to Covid, the sudden expansion of a nation’s money supply, or even the rapid expansion of a nation’s population due to uncontrolled migration. Passing extremely disruptive laws and regulations often leave people, unemployed, hungry, and homeless. Sieges are artificial causes of inflation.

Global inflation is predicted to occur when God brings His final judgment to the earth. The third Horseman of the Apocalypse mentioned in Revelations brings war (Revelation 6:3–4). Jesus will return and open the third seal.

(Revelation 6:5–6) – “When the Lamb opened the third seal, I heard the third living creature say, “Come!” I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. Then I heard what sounded like a voice among the four living creatures, saying, “Two pounds of wheat for a day’s wages, and six pounds of barley for a day’s wages, and do not damage the oil and the wine!”

The reality of inflation is a reminder that wealth is fleeting “Cast but a glance at riches, and they are gone, for they will surely sprout wings and fly off to the sky like an eagle” (Proverbs 23:5). Haggai nails it, “You have planted much, but harvested little. You eat but never have enough. You drink but never have your fill. You put on clothes but are not warm. You earn wages, only to put them in a purse with holes in it” (Haggai 1:6). Sinful leaders exercise their power to control food, lifestyle, and wealth. How could this happen? Today, our nation purposely understates the inflation rate by excluding food and fuel costs from its rate of “core inflation.” They argue that food and fuel are too unstable to be used in any calculations. Yet one-third of our budget is on food and energy costs. Just a little sleight of hand going on here! Honesty is hard to find.

False Weights and Measures

Another element of inflation is theft and greed. It takes the form of price gouging, dishonest weights, and measures, and outright deceit.  The Bible repeatedly condemns dishonest gain: “Do not have two differing weights in your bag—one heavy, one light. Do not have two differing measures in your house—one large, one small. You must have accurate and honest weights and measures, so that you may live long in the land the Lord your God is giving you.” (Deuteronomy 25:13–15). Rigging the system, using two scales, whether for weight or justice, is just stealing from the people.

Our nation’s government and the Federal Reserve have been printing money for a long time. In the past, other governments (e.g., China, Japan, etc.) would buy our treasuries. Our debt was sold. Today, no one wants it! Who holds the debt now for our nation? You do along with your children and your children’s children! Nations today still insist on honest weights and measures but usually exempt themselves from that requirement. Micah 6:11 asks, “Shall I acquit someone with dishonest scales, with a bag of false weights?”  We live in a time when the government will prosecute someone dishonest in their business dealings but allow government leaders and the central bank to enact policies that devalue the currency. In other words, there are two scales of justice in their bag of tricks.

The Big Lie

Is inflation good for you and the economy? That is what some economists and politicians will tell you. Type in words like “inflation is good for you” or “inflation is good for the economy,” search the web and you will find the latest lies about inflation. Inflation is good for someone who is heavily in debt. They can pay back that debt in devalued dollars. The concept lacks accountability because there is never a budget or a plan to live within one’s means. And those who are holding the debt are paid back with a currency of lower value. This is akin to stealing someone’s savings. Remember, you are holding the nation’s debt!

(Jeremiah 6:10-11) – “To whom can I speak and give warning? Who will listen to me? Their ears are closed so they cannot hear. The word of the Lord is offensive to them; they find no pleasure in it. But I am full of the wrath of the Lord, and I cannot hold it in. Pour it out on the children in the street and on the young men gathered together; both husband and wife will be caught in it, and the old, those weighed down with years.”

Jeremiah is telling the people of Israel not to live beyond their means. He indicts the entire nation for its covetousness. Debt, whether personal or national, is dangerous. It is based on a belief that possessing something before one can actually able to afford it is a good thing. Good for the profiteers, but it enslaves the debtor to the creditor. The lie is that somehow, you can have it all now and pay for it later. When your credit card is maxed out, whether an individual or a nation, you have no freedom and become nothing more than a slave. Two years ago, Lostpine published a study called National Debt – National Shame[https://lostpine.com/home/shadows/national-debt-national-shame/]. Things have only gotten worse!

Conclusion

Inflation has been around for a long time. “Your silver has become dross, your choice wine is diluted with water.” (Isaiah 1:22). Inflation’s principal source comes from human-made events, all designed to gain power over people. Forced shortages, disruption of supplies, price gouging, and the all-popular deceptive packaging (right-sizing) lead to inflation. As a nation, why do we tolerate these things? To begin with, our trust should be in something more reliable.

(1 Timothy 6:17) – “Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.”

(Matthew 6:19–21) – “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where moths and vermin do not destroy, and where thieves do not break in and steal. 21 For where your treasure is, there your heart will be also.”

(Proverbs 11:28) – “Those who trust in their riches will fall, but the righteous will thrive like a green leaf.”

Today, you can destroy a nation without war by simply destroying the value of its currency. It is subtle but effective. The Bible has quite a bit to say about money and most of God’s warnings concern debt. “The rich rule over the poor, and the borrower is a slave to the lender” (Proverbs 22:7). By our nation continuing the process of facilitating debt, inflation is secretly confiscating our wealth, and we don’t even see it. So, how can we fix this? To begin, pay our debts. Next, appoint leaders that bring our nation’s spending policies within their means. Finally, “Honor the Lord with your wealth, with the first fruits of all your crops; then your barns will be filled to overflowing, and your vats will brim over with new wine.” (Proverbs 3:9-10).

 Contemplations

• Do you understand the idea that, to the borrower, inflation is good?
  • Ideas to Explore: Government borrows against your Social Security, Medicare, and Retirement funds. Inflation allows them to pay back (we hope) that debt with dollars worth less. In other words, the funds are yours, but you just lost money. What do you do to fully understand today’s economics?
• The Bible uses three examples, war, fraudulent statistics, and cheating (not exposing the real motives or truth). Are you concerned?
  • Ideas to Explore: The Internet and media are no longer reliable sources of information. Common sense and discipline are more important than ever today. What can you do to assure a government of sensible fiscal policy?
• Why do people tolerate inflation?
  • Ideas to Explore: Policies affect the necessities of life. They no longer must work for their money. Our educational system has failed to teach economics. Please add your ideas.
• Raising interest rates brings on job losses and foreclosures. How does this help inflation?
  • Ideas to Explore: This strategy affects the poor and middle class the most. Do wealthy people avoid this concern? When a nation is unemployed, the government just prints even more money. How does this help the problem?
• What contemporary policies and regulations would you rank among those no different than siege tactics?
  • Ideas to Explore: Environmental, Covid, immigration, IRS, fossil fuel, solar, social, etc. Please add your own.