The Federal Reserve’s Role and how it Transgresses Biblical Principles

The United States is regarded as one of the most legally structured nations globally. This inimitable characteristic is attributed to the nation’s grounding in clear codes, legislations, and Acts meant to serve as a practical outlines for future generations.  In this respect, Thomas Jefferson and Benjamin Franklin underscored the importance of the separation of church and state as a precursor for freedom within the country. The Founding Fathers envisioned a country where each citizen was free to practice to choose their own unique mode of worship as the Congress remained responsible for the creation of legislation. Through the separation of church and state harnessed provisions of the Establishment Clause to avert the possibility of a power struggle between the aforementioned groups at any given point (Conti-Brown, 2017).  However, many are now questioning the effectiveness of this legal provision given the recent incursions made by the government. Christians have recently come out strongly to criticize the execution of government policies which they view as immoral and unethical.  A case in point is their criticism of the Federal Reserve whose recent actions may amount to a gross overstepping of biblical principles.

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The Federal Reserve is one of the most acclaimed financial institutions particularly known for its incisiveness in the United States. It was created as federal fiscal agency in 1913 during a period of pre-war hysteria to help protect the integrity of the financial system in the United States in order to prevent a financial depression. This safe financial environment would be promoted by a high level of autonomy which allowed great latitude to the Federal Reserve and ultimately allowed it to amass sweeping powers (Grey, 2015). The Federal Reserve soon became responsible for reviewing the circulation of currency in the United States and making decisions with far-reaching consequences such as increasing quantity. This practice was informed by the assumption that an increase in the amount of currency in circulation would result in extensive periods of price constancy in the United States. It was through this approach that stability would then be created while ensuring that a majority of the population received jobs. Over the years, the Federal Reserve has morphed into one of the most influential government-aided agencies in the United States in charge of securities.

Read also Role of the Federal Reserve and how it Oversteps the Biblical Principles

Nevertheless, it still failed to respond appropriately to the Great Depression (1929-31) and the global financial crisis of 2008 which had a negative impact on American society. The Federal Reserve should have intervened when it became apparent that banks had run out of money. As part of this intervention strategy, it offered loans arbitrarily to disallowed individuals while accumulating interest without clearly considering the repercussions of such actions. This brazen act was a display of overreaching and negligent behavior which is often criticized by Christians. Many had expected the Federal Reserve to shield the citizens from the financial crisis but it failed to so. The Federal Reserve chose to act indiscriminately in self-interest without considering the effects of proposed economic policies. This was similar to the highly controversial practice of interfering with measures and weights which was forbidden in the Bible (Leviticus, 19; 36). The Federal Reserve was aware of the aftershocks of such policies; but still chose to back implementation.

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Moreover, the Federal Reserve has often exercised its discretion to introduce inflation which is a scandalous practice in Christianity.  This was done by increasing the amount of money in circulation across the United States without properly considering the repercussions of this seemingly mundane act. A high inflation rate affects society negatively in the form of high prices for essential good which ultimately fails to benefit them. They are left grappling with a rise in expenses and a country with a reduced capacity to produce consumer goods. However, it is noteworthy to acknowledge that this policy benefitted the Federal Reserve through a drastic increase in public expenditure. Detractors of monetary inflation are also highly critical of the practice since it benefits few well-to-do individuals at the expense of society (Wells, 2017).

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Additionally, federally-sanctioned inflation benefits early recipients who end up purchasing luxury goods given their current financial position. This fails to benefit the larger segment of society since wealth is only transferred to early recipients who only typically harbor self-interest. The Federal Reserve oversteps the Biblical principle of private property ownership, backing the introduction of monopolies. From a Christian perspective, creating and distributing currency is generally viewed as an unethical practice which results in financial strain for the majority in society. Ignominy is criticized in the Bible and compared to using unjust scales for profit (Proverbs 11; 1). Biblical principles have often accentuated God’s detestation of false weights and measures which are viewed as a form of theft.

Read also Monetary Policy and the Federal Reserve

The United States is grounded in a historic principle of separation of church and state to avert the possibility of future conflict. Yet, agencies such as the Federal Reserve still remain at odds with Christians for introducing principles which disregard biblical teachings. Monetary inflation and standby banking are some of the most brazen acts of the Federal Reserve and a display of its disregard for biblical principles.

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