2
Book Review: Borrowing and Lending
The book, Business for the Glory of God, is showing how the glory of God is found
within business affairs. The tendency to push religion away from the public eye is connected to
how people have seen or have been treated by religion. You do not hear them glorifying their
God. This does not even come close to what those in business have done to its image on their
own. Because of greedy corporations, dishonesty, and illegal activities, this has shown many on
both sides of the corporate world. Like General Mills, up until recently, was still advertising and
holding capital investments in Russia and now they say their focusing on the refugee crisis of the
fleeing Ukrainian people (Adams, 2022). The thing is business has occurred since ancient times
and is mentioned frequently in the Bible. Because no matter how much sin is in the world, we
were created in God’s image, “So God created man in his own image, in the image of God
created he him; male and female created he them” (Genesis 1:27). The Bible goes over many
rules and lessons throughout its sixty-six books. Though times have changed the lessons in the
teachings are still valuable.
The chapter on borrowing and lending caught my attention the most. If we did not have
borrowing, lending, and savings, we would not be able to invest in anything. If we did not save
or borrow in this day we would struggle, you would have to spend your money as you made it,
and when you are at retirement you would have nothing to fall back on. Money spent as soon as
you make it has only the value of the paycheck. This means not saving for school, no borrowing
for a house, or lending to a friend (Tabarrok, 2008). Business for the Glory of God points out that
many have read Old Testament passages that are against lending money with interest. This is
called usury, “the lending of money with an interest charge for its
3
Book Review: Borrowing and Lending
use especially: the lending of money at exorbitant interest rates” (Merriam-Webster. (n.d.). This
outlook greatly depends on the verse you read, Psalm 37:21 says, “The wicked borroweth, and
payeth not again: but the righteous sheweth mercy, and giveth,” or Proverbs 22:7, “The rich
ruleth over the poor, and the borrower is servant to the lender.” Two verses, only one book apart
and yet they both speak of borrowing differently. One says the borrower is wicked and the other
says the borrower is a slave. Both verses tell the truth from two perspectives because like most
everything it is not just black and white. Borrowing can be unwise, as in the ability to borrow,
the book points out in Deut. 24:10 the people of Israel would loan or borrow things to one
another. So, yes, the Old Testament there was no prohibition on loans (Grudem, 2003). In the
New Testament, Romans 13 6-8, wraps what the Bible thinks about borrowing and lending up in
a bow. To pay what is owed, to honor that, and to owe no one anything. The action of borrowing
and lending is unique to humans, for we are transferring temporary control of property (Grudem,
2003). As a lender we are still within control of what amount we give, and the risk that comes
with borrowing. These actions are seen in our everyday lives. Business for the Glory of God
makes a list of these, hotel rooms, boats, apartments, and trailers to name a few. This has given
people the option to rent what they need and for how long they need it without paying full price.
You enjoy what you rent, and the owner gets paid plus interest, it is a win for both sides. The
progress of lending and borrowing money means it multiplies the usefulness of the money
(Grudem, 2003). The Market for Loanable Funds, you have the price (interest rate) and what is
being exchanged (money), this is shown in the supply (saving) and demand (borrowing) curves
(Tabarrok, 2008). The price of saving and borrowing is the interest rate, as this goes up the
4
Book Review: Borrowing and Lending
savings supplied increases. On the demand curve side, as the interest rates fall, borrowing
demand increases (Tabarrok, 2008). As with many things different factors yield different results.
Many people use the Life-Cycle Hypothesis (LCH), this entails “individuals seeking to smooth
consumption throughout their lifetime by borrowing when their income is low and saving when
their income is high” (Hayes, 2021). The concept was developed by economists Franco
Modigliani in the early 1950s. People who plan their spending throughout their life, factor in
their future income, and spending future savings. (Hayes, 2021). All of this requires trust,
honesty, and wisdom to have patience for the future. Employers who offer a form of pension or
through a tax-deferred retirement savings account. In a pension, “employers promise to pay a
monthly sum to employees who retire from the company after a certain number of years (Melvin
& Guerra-Pujol, 2021). This is not only useful for a comfortable future, but also starting a
business. To be able to afford the building, equipment, and to be able to pay your employees you
would need a loan (Grudem,2003). That is the great thing about loans, you get the money you
need at that time and pay it back as your endeavor grows.
The existence of borrowing and lending raises the standard of living bar because it raises
the amount of available goods and services (Grudem, 2003). Many of God’s attributes can be
seen within them just as with anything sin is there as well. The Bible shows both sides of this as I
mentioned above. “The wicked borroweth, and payeth not again: but the righteous sheweth
mercy, and giveth” (Psalms 37:21). Debt can be a downward spiral if not handled properly, it is
easy to get into, but it is avoidable. Borrow only what you need, no more. Come up with a
payment plan, pay your bills, to not live outside your means, and borrow only what you need.
6
References
Grudem, W. (2003). Business for the glory of God: The bible's teaching on the moral goodness
of business. Crossway.
https://ebookcentral-proquest-com.ezproxy.liberty.edu/lib/liberty/reader.action?
docID=285070&ppg=1
King James Version. (2007). King James Bible Online. Retrieved from
https://www.kingjamesbibleonline.org/
Tabarrok, Alex. (September 15, 2008).
https://mru.org/courses/principles-economics-macroeconomics/savings-and-loan-
definition
Merriam-Webster. (n.d.). Usury. In Merriam-Webster.com dictionary.
https://www.merriam-webster.com/dictionary/usury
Adams, Peter. (March 14, 2022). Marketing Dive. General Mills suspends marketing in Russia, a
small piece of its business.
https://www.marketingdive.com/news/general-mills-suspends-marketing-in-russia-a-
small-piece-of-its-business/620330/
Melvin, S.P. & Guerra-Pujol, F.E. (2021). Legal environment of business (4th ed.). New York:
McGraw-Hill Education
Hayes, Adam. (July 22, 2021). Investopedia. Life-Cycle Hypothesis (LCH).
https://openoregon.pressbooks.pub/socialprovisioning2/chapter/the-loanable-funds-
market/
Powered by TCPDF (www.tcpdf.org)
