By Gary North
An try to set forth the biblical presuppositions in different region of economics, yet essentially within the box on financial thought.
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Extra resources for An Introduction to Christian Economics
The addict’s body develops a tolerance for the drug, and if the same amount of it is injected into his system, he will begin to lose the old euphoria, and eventually he will experience physical discomfort. In the market, forecasters expect further inflation, and they prepare their plans more carefully, watching for rising costs and more ready to increase prices. The paper profits are smaller unless largf r quantities of the counterfeit claims are injected into the money su~ply. s The addict’s body continues to 8.
No analogy can claim to be so rigorously exact as to rival the accuracy of the original concept to which it is supposed to be analogous. It is, however, an excellent teaching device, and while it is no substitute for carefully reasoned economic analysis, it is still a surprisingly useful supplement which can aid an individual in grasping the implications of the economic argument. Before beginning the comparison, it is mandatory that a definition of inflation be presented, one which can serve as a workhg basis for the development of the analogy.
Economies do not die, but the social order can be replaced. The classic example is Germany in 1923. 10 The effects upon indi ~idual members of the society could lead to chaos, leaving large segments of the population spiritually demoralized. The habit cannot go on fore rer. It will either be stopped, or else the addict will die, in the case of the human, and the monetary system will collapse, in the econcmy’s case. The thought of the latter alternatives turns one’s attenti m to the former one: stopping the inflation and stopping the drug.