Economics 101

Christianity’s Historical Approach to Poverty

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How can Christians learn from history to best serve the poor? The competing paradigms within evangelical thought on poverty alleviation can best be distinguished by the voluntary principle versus the principle of redistribution.

Evangelicals have historically embraced the voluntary principle, which relies on promoting the biblical doctrine of work, the interworking of free-market competition, and fostering wealth-creation. Thomas Chalmers and the Earl of Shaftsbury, who is quoted in the image to the right, were two prominent Christians who utilized this principle in the nineteenth century.

Today I want to share the biblical basis for the voluntary principle and explore how it plays out in a market-setting.

The Voluntary Principle

The voluntary principle is a shorthand way of describing a response to poverty based on individuals and voluntary societies providing for the needs of the poor rather than the state. This principle lies at the heart of the evangelical response to poverty.

This principle is found in several biblical passages, including the following:

Putting these and other passages together, a biblical approach to fighting poverty emerges. It is a picture of Christians who form local, voluntary associations that promote enterprise, work, and free-market economic principles.

Since these bodies are local, Christians who participate in them are more likely to know those in need. They are also more able to assess what those needs really are, in contrast to the state’s remote, more bureaucratic, and less-targeted provision.

Additionally, these local associations encourage enterprise and personal responsibility to help people find ways out of poverty. The voluntary principle in action is usually full of programs from savings clubs and schools to emigration to new lives, all designed to replace welfare with enterprise.

The Voluntary Principle & the Market

The role of the market in dealing with poverty is frequently misunderstood.

For Christians, the market is an essential part of God’s provision for the world and a means to deal with poverty. This is because at the heart of the market is a paradox. Individuals pursuing their own self-interest together work for the common good. Human beings bargain and trade with each other naturally.

Sin, however, complicates this. Not only might the market not work as intended, but also the individuals within it may be corrupted and act illegally, immorally, or in an exploitative manner. The market needs individuals who will bring values to it.

Thomas Chalmers was a professor of theology, prominent leader in the Church of Scotland, and a political economist who utilized the voluntary principle. He believed that human beings, while tainted with sin, also had implanted within them a moral compass.

For the Christian, this is a consequence of a heart and a life that has turned to Christ. From this stems a basic assumption of the voluntary principle: that compassion stems from the heart, not the government.

Further, in economics, the market has proven to be the most effective tool for development. Utilizing self-interest to help the common good is an effective method for bettering society. The market uses incentives to promote hard work, catering to the cultural mandate. It marries responsibility with access to mobility, helping the poor help themselves.

When the creativity, innovation, and dynamism of human beings acting within the market are combined with the voluntary principle, the result is a radical approach that challenges poverty.

Editor’s note: On “Flashback Friday,” we take a look at some of IFWE’s former posts that are worth revisiting. This post was previously published on Dec. 9, 2013.

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