1 / 4100%
Economics Analysis
Sofie Lukic
Liberty University
GOVT 200: Constitutional Government & Free Enterprise
Professor Jody Hice
February 27, 2024
Introduction
The Bible calls for all governments and authorities to comply with God’s Word and His
grace. He has given humans moral foundations that are often overlooked in today’s society and
culture. The government now tends to overstep various biblical principles in the form of
economic policies. This is evident in the recent American Recovery and Reinvestment Act
(2009) as well as the welfare system as a whole. The Bible lets us know that taxation is not a bad
thing. Romans 13:5-6 states, “Therefore, it is necessary to submit to the authorities, not only
because of possible punishment but also as a matter of conscience. This is also why you pay
taxes, for the authorities are God’s servants, who give their full time to governing.” This passage
indicates that taxation is accepted and established by God. However, in recent decades, the
government has taken it to a whole new extreme, overstepping those biblical principles.
The American Recovery & Reinvestment Act
The American Recovery and Reinvestment Act was created with the purpose of
stimulating the U.S. economy during the Great Recession. While it did boost the economy, it was
at the expense of taxpayers. The bill ended up being in excess of 787 billion dollars (Hayes,
2023). The government spent money that they did not have which, in turn, increased inflation
and unemployment. Since the bill was passed, unemployment went up by 9.4 percent, with a loss
of over two million jobs (Digest, 2009). The spending from this act still has yet to be fully paid
off, resulting in many taxpayers and future generations being affected. The people in the United
States will continue to feel the ARRA’s effects through various tax increases for years to come.
The Welfare System
The welfare system is the range of programs that provide financial aid to individuals in
need and who cannot support themselves. This system is often abused by those who fall into the
lower class. These individuals are usually unemployed with no desire to find a job and seem to
fully depend on the government’s aid. The welfare system is funded through the country’s tax
system, so naturally, it affects the working class and the upper class. These people work hard yet
consistently have to pay taxes for every dollar they earn, which then goes to support the
individuals who refuse to earn their own money. This system goes against the biblical principles
and morals God has laid out for us. His design was for everyone to work and, in turn, give back
to the community. 2 Thessalonians 3:10-12 states, “For even when we were with you, we gave
you this rule: The one who is unwilling to work shall not eat. We hear that some among you are
idle and disruptive. They are not busy; they are busybodies. Such people we command and urge
in the Lord Jesus Christ to settle down and earn the food they eat.” Relying on government
handouts will eventually lead to the downfall of the American economy. When the government
steps in and implements new bills, such as the ARRA, it helps the economy in the short term but
begins adding to the country's debt and creates angry taxpayers.
Biblical Principles
As Christians, we are called by God to be responsible stewards of the resources He gave
us. This is also applicable to the government. The government was instituted by God for all
humans. We are told to pay taxes, yet when the government starts instituting a surplus of them, it
begins to go against God’s law. Additionally, it stops us from having that balance of caring for
our loved ones and helping those in need that God has called us to have. Proverbs 31:11 states,
“Wealth obtained by fraud dwindles, but the one who gathers by labor increases it.” Both the
ARRA and the welfare system are forms of fraud disguised as benefits to only assist certain
individuals. As faith and hard work are honorable to God, these systems dishonor and insult
Him.
Resources
Hayes, A. (2023). American Recovery and Reinvestment Act of 2009. Investopedia. Retrieved
from https://www.investopedia.com/terms/a/american-recovery-and-reinvestment-
act.asp#:~:text=The%20components%20of%20the%20ARRA,renewable%20energy%2C
%20and%20small%20businesses.
Digest. (2009). The Foundation. The Patriot Post. Retrieved from
https://patriotpost.us/digests/3274
New International Version. (2011). The Holy Bible. Bible Gateway.
https://www.biblegateway.com/passage/?search=Romans%2013%3A5-6&version=NIV
New International Version. (2011). The Holy Bible. Bible Gateway.
https://www.biblegateway.com/passage/?search=2%20Thessalonians%203%3A10-
12&version=NIV
Powered by TCPDF (www.tcpdf.org)
Students also viewed