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Understanding the Recession: A Biblical Perspective

(Note from Ellen: Below is the full text of the Bible Study lesson I shared on March 8th, 2009. During the morning service, Pastor Len preached about “defeating the giants’ in our lives. The current recession is one of the “giants” that we must not only defeat but overcome. I pray that you will find some answers to your questions, doubts and worries in the article below.)

Does the current recession bother you? If yes, why or if no, why not? 

What is the difference between recession & depression? (This is a joke!) A recession is when your neighbor loses his job.  A depression is when you lose your job. ^ ^ 

Recession is negative economic growth during two consecutive quarters. Depression is a recession that lasts longer and has a larger decline in business activity.

What is a recession? John Piper, a pastor/preacher/author, in his blog entitled “What is the Recession For?”, describes it as “various financial setbacks like business slowdown, decreasing profits, massive layoffs and joblessness, the bursting of the housing bubble, thousands of foreclosures, personal and business bankruptcies, bank failures, investment company collapses, the loss of retirement funds, and the social ills and unrest that go with the downturn.” 

We are in a recession and it is real! For some it has hit us close to home as we experience a decline in business, or some people we know or even ourselves might have lost our job.  

Recessions are normal part of the ebb and flow of the US and world economies. The US for instance have had numerous recessions over the last century and have had numerous times of economic prosperity. It comes, it goes, and repeats again. It is encouraging to note that based on historical trends in the US, that of the 24 bear markets (or recessions as we know it) during the last century, none of them have lasted more than 3 years with the average length being 15 months. The Canadian economy, while not exactly the same as the US economy, mirrors similar trends. 

But this doesn’t sound re-assuring if you’ve lost your job, or worried how to pay your credit card debts, mortgage/ rent, your bills, and other expenses when we all live by our paycheck. 

What is God’s purpose behind this recession we are currently experiencing? John Piper offers 5 reasons why God is allowing this recession. Please check this link for the full text of the message. http://www.desiringgod.org/ResourceLibrary/Sermons/ByDate/2009/3566_What_Is_the_Recession_For/ 

1.                  To expose sin and bring repentance

Too many Christians have fallen in love with the things of the world and worry more about losing their stuff than pursuing God. With this recession, God exposes us to what we really love. The question we have to ask ourselves: Do we love the things of the world more than we love Him?

One of the sins is the sin of self-reliance, that we think we can do things on our own with our own strength. With this recession, God is showing us to rely on Him and Him alone. Our slogan should be God-dependency rather than self-sufficiency.

Recessions expose the sin of selfishness and greed. This recession was due in part to an increase in greed and love of material possessions.  Example of that greed:  In 2006, (in the US) the big five Wall Street firms handed out bonuses to their worldwide employees equivalent to the GDP of Vietnam or about $70 billion.
Now to fix the mess, the big five helped create, will cost probably US$1 trillion, or an amount equivalent to the GDP of India. (Source: http://www.huffingtonpost.com/diane-francis/wall-street-greed-and-con_b_127592.html ) 

Recessions also expose the sin of fear, perhaps the fear of losing one’s job, which to most of us represents our sense of economic security, losing the things we own…
 
Recessions call us to the cross to deal with our sin. What a gift the recession is in the exposure of sin. May the Lord give us all the grace to repent and receive the forgiveness that God offers in Jesus Christ.  

2.                  To awaken us to world poverty

The developing world is in recession all of the time; that’s all the people know. Recessions come and go for us in North America, not for them in Third World countries. We still have so much. When we still are lining up for a latte or a movie can we really claim to be suffering?

Prosperity makes us blind to the misery of others. We forget about all the people suffering and lost in the world. God wants us to remember, people who are caught in war and genocide, are dying because of HIV/ AIDS, tuberculosis, malaria, have no access to the most basic things in life like clean water, education, toilet, etc. When we suffer, we are more sensitive to others who are suffering. Recessions wake us up to the reality of the world we live in.  

3.                  Recessions give us a chance to glorify God, to put our joy in His grace and not in our goods, in His mercy, not our money and in His worth, not our wealth

God wants to ensure that our joy comes not from the pleasures of the world but from the glory of his grace. Our joy should not be rooted in circumstances but in the constancy of His enduring goodness and mercy. Great is your faithfulness oh Lord, they are new every morning! (Lamentations 3:23)

Ask yourself the question: “What really gives you joy?” It is in times like this that what really matters in life comes into focus. The world’s riches fades away but faith, hope and love abide. Where are you laying up your treasure? We have learned that our investments, money in the bank, etc. are sinking sand but we should be reminded that our treasure in heaven is safe. 

4.                  God intends to advance His saving mission in the world, spread the Gospel, and grow His church precisely at a time when it has the least resources to do it.

God does his great advancing work again and again when it looks impossible for us. He promises the heir when Abraham and Sarah are too old to have children. He splits the Red Sea when Israel is hopelessly trapped by Pharaoh’s army. He gives manna when there is no food in the wilderness.  And there many other instances in the Bible.

In 2 Corinthians 8:1-2, “And now, brothers, we want you to know about the grace that God has given the Macedonian churches. Out of the most severe trial, their overflowing joy and their extreme poverty welled up in rich generosity. “ When God wants to raise money for the poor in Jerusalem, he uses afflicted, poverty-stricken Macedonians and fills them with joy because of His grace.God blesses the work that is done in the name of His Kingdom despite the lack of the abundance of resources at this time. 

5.                  God intends for the church to care for its hurting members and grow in its gift of love so that no one is in need in His church.

In this difficult economic times, some people may be tempted to either (a) reduce or (b) withhold  their tithes to the church. Or we may probably be tempted to reduce our charitable contributions, especially if our own earnings have decreased. “In a time like this, it’s more important to open the storehouse and provide extra help to those who are struggling,” Now, more that ever is the time to be generous!  2 Corinthians 9:11: You will be made rich in every way so that you can be generous on every occasion, and through us your generosity will result in thanksgiving to God.

On the other hand, those in need should not be afraid to ask for help. “When we ask for God’s help and He provides that help, we should accept it in gratitude. While it might be difficult for folks to accept help, they should simply look at it as God’s provision.” ( Check out this link: http://protestantism.suite101.com/article.cfm/trust_god_to_help_you_through_the_recesion ) 

Some Practical Tips: Spend Less and Save More

We are called to be good stewards!

• Save More: Give your tithes and offerings; set aside 10% of your salary for savings- invest in RRSPs & set up automatic deductions from your account; set up an Emergency Fund for yourself and your family, ideally this should be 4 months of your salary to tide you over especially when you lose your job; take advantage of the Tax Free Savings Account ($5,000 annual limit) if this is something that works for your situation; pay credit cards in full; file taxes on time.
• Spend Less: Stay out of the mall; leave your debit & credit cards at home; take limited amounts of cash; cook at home, eat out less; learn to grocery shop effectively, use coupons, watch out for sales, buy in bulk; borrow DVDs rather than watching movies (better yet sign up for a library card & borrow DVDs from the library); make your lunch, don’t buy them; use clothesline instead of dryers (but will only work in the summer!); do it yourself (repairs, painting, cleaning, etc.). Some of these are really common sense stuff, but it’s these common sense that makes money sense!
• Save More- Find the BalanceSaving more is good; spending less is the best way to do it; communicate with your spouse or partner; teach your children; make savings a habit; living life for today & plan for tomorrow; quit competing with everyone else (we don’t have to keep up with the Joneses!).   

What should be our response?

• Do not worry and be not afraid! Matthew 6:25-26: Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more important than food, and the body more important than clothes?  Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they?

         John 14:1: Let not your hearts be troubled.

• Trust in God. God will meet ALL our needs! (not some but ALL)
  Philippians 4:19 And my God will meet all your needs according to his glorious riches in Christ Jesus. It doesn’t matter whether it is a bear market, bull market, recession, depression, or anything else. This promise from Philippians 4:19 is not contingent on what the government is doing, the economy, or even our own ability. It is a promise from the only source (of life, wealth/ riches, etc.) in the universe; we can rest assured our God is going to back up what He promised.

If we really believe that God is our supply and source, then we should be just as confident that our needs will be met when things look good as when they look terrible. The truth is that God’s economy is strong and will never be in a depression or even a recession. God is not and will never be short on cash and He is a great Father who is always faithful to take care of His children. 

• Give ThanksI Thessalonians 5:18 Give thanks in all circumstances, for this is God’s will for you in Christ Jesus. 
• Pray

In the article “ Between Two Worlds” (see http://theologica.blogspot.com/2008/09/thinking-biblically-about-banking.html ) the question was posed: “Is it right to pray for the economy?” I am quoting the article in full here as the writer has succinctly captured the things that we need to pray for.

“I think it is appropriate to pray for the economy. After all, God said to Jeremiah, “Seek the welfare of the city where I have sent you into exile, and pray to the Lord on its behalf, for in its welfare you will find your welfare” (Jeremiah 29:7). When the economy is strong, people are able to work and support their families, believers have greater opportunities for generosity, and many benefit from this common grace. We can pray for integrity and wisdom for government officials who are faced with the incredibly complex task of regulating investment securities and banks in a way that is transparent and serves all varied stakeholders. We can pray that those who are willing to work will be able to find gainful employment. We can pray that greed would be restrained at all levels, from the leaders to individual families tempted to live beyond their means. We can pray for ourselves that we will participate in the national economy that keeps in mind that time is short and the present form of this world is passing away (I Corinthians 7:29-31).” 

Because of these promises found in Bible Scripture, the economic recession can actually be a time for celebration and counting blessings. “Christians can rejoice because their security is in God, not in their bank accounts. This could be one of the best times for Christians. It will give witness to the power of God in our lives.”

Other Online References:

http://samshaw.wordpress.com/2009/20/24/romans-828-and-the-recession/

http://www.christianpf.com/the-mortgage-crisis-and-the-economy/

http://www.christianpf.com/trusting-god-recession/

http://www.christianpf.com/recession-cycles-economic/

http://www.gatherlittlebylittle.co,/2009/02/surviving-economic-recession/

For the Practical Tips: Spend Less and Save More, please visit www.moneymentors.ca