Cash Handout the Right Approach to Financial Crisis?

In our small group a few weeks ago, we had quite a discussion on work/labour after watching a lesson of the Truth Project, a worldview study by Focus on the Family. The subject of labour/work reminded us that work is good and is part of God’s design. He worked (Genesis 2:2) and He put Adam to work in the Garden before the Fall (Genesis 2:15). In the 4th commandment, we’re to work 6 days (Exodus 20:9-11).

Work is closely tie to the economy and thus inevitably led to our discussion of our Government’s stimulus packages in response to the current economic crisis. The government has been swift in passing out cash to individuals to stimulate the economy. The idea is to encourage people to spend, and when they consume, the money will flow through to businesses to keep the jobs going. It sounds reasonable on the outset and people are more than happy to receive a cash bonus.

The 1st stimulus package of $10 billion was before Christmas, giving cash out to the selected groups of carers, pensioners, students and mothers with young children. The 2nd package is happening right now where a one off payment of up to $900 is given to everyone living here or overseas, dead or alive.

Debt
Most of the debate have been around whether the stimulus packages are effective. But to me, this is more than just a question of economics, it’s an issue of a moral nature.

Our society has enjoyed such wealth and affluence in the last decades. We are used to the comfort and indulgence that we expect the good times to continue. Recent statistics shows that our debt to earnings ratio has tripled since the 1990s to 160%. We’re spending way beyond our means and we’re willing to rack up huge debts to fund our lifestyle. In view of this, the government’s stimulus packages are counter productive and the encouragement to spend and get into more debt is against the Bible’s view on debt (Proverbs 22:7, Romans 13:8).

Irresponsible Spending
It may not appear so for a start, but what many don’t think about is that there are follow on costs with what they’ve purchased. It’s not just a one off purchase in many cases. I personally know someone who are unemployed but went to buy a motorcycle with the cash bonus. While money can be put to good use, they can also be misused. I know about students who planned to spend the money on alcohol. Someone also witnessed a group recently spent their cash bonus on drugs and had a week long party.

This too violates God’s principle of how to be a responsible manager of His resources. It’s more pressing and wise for the government in my view to use this opportunity to help people develop their skill in money management and learn to be responsible with what they have. And if the government wants to encourage responsible spending, they could have restrict the money to be only spent on certain things that benefit the country and others. Unsanctioned and undirected, the money can be used in myriads of ways that does more harm than good.

Biblical Responsibility
You see, we’re called to be God’s steward of all that He entrusted to us. With which the government is entrusted with a bigger share of the country’s resources to manage and look after. Getting into a big hole of debt to provide cash handouts isn’t a wise manager of His resources.

What’s more? Our responsibility is for the poor, but not in the form of a cash handout, we’re to create opportunities for them to work. In the OT, farmers were asked not to gather the leftovers but leave it to the poor to pick (Leviticus 19:10) and Elisha didn’t just give money to the widow, but helped her by giving her the resources to work and pay off her debt (2 Kings 4:1-7).