Posts Tagged risk

Corresponding the Shape of Good Economics to the Shape of the Gospel

Shape of EconomicsOver at the Acton Institute PowerBlog, I piggy-back on a recent Michael Bull post to offer a reminder that we needn’t give all the credit to the market when we reap the benefits of market exchange, free trade and globalization.

For Christians in particular, we should view capitalism as a launching pad for spiritual and social transformation, not a mere means to materialistic ends:

Capitalism is, after all, a mere framework for human engagement. Although the constraints it imposes (“thou shalt not steal”) and the features it elevates (ownership, stewardship, risk, and sacrifice) may fit well within a broader Christian context, it says more about what we can and can’t do than what we might or might not imagine or accomplish…

… For the Christian, then, capitalism provides a simple baseline from which we can launch, holding the potential to lead us toward a broader, deeper network through which we can more freely and fully obey the callings of the Holy Spirit in our lives as we proclaim good news to the poor. In allowing for this free-flow of individual callings, we are given opportunities and choices that many other systems would assume on our behalf.

As Bull writes, we as Christians are called to reach beyond the bare minimum—a truth I’ve emphasized routinely here on the blog:

The final step of Covenant is that you, the risk taker, become a shelter, a house, for the helpless. The final step is generosity. Capitalism only works in a moral society. This is why we can correspond the shape of good economics to the shape of the Gospel. Jesus gave His life to give abundant life to us all. He believed in the promise made to Him by the Father, the promise of resurrection—a new body. Poverty was not something to be embraced eternally. Christian socialists forget that Jesus now owns everything. All the great saints were rich people who risked their wealth for even greater wealth, a wealth that included a legacy of other people—a household. The “glory that was set before Him” was also the glory of the Church, a new body that includes every believer. Jesus Himself is our covering. We are only saved because of His atonement, His “covering.” He, the king of kings, the great Land Lord, is our shelter. Read the rest of this entry »

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Imagination Station: Grounding Church Innovation in Tradition

church, innovation, imaginationI have written previously on how Christians should embrace an entrepreneurial spirit in pursuing God’s will (here and here), grounding their innovations and risk-taking in a holistic Biblical worldview and executing their callings through active fellowship and spiritual discernment.

Over at Faith & Leadership, James K.A. Smith provides some related thoughts on Christian innovation, paying specific attention to the role of individual church bodies. For Smith, “good culture making” comes from a properly oriented Christian imagination, and such imaginations are most reliably fostered and achieved through “intentional, historic, liturgical forms.”

First, Smith’s survey of modern evangelicalism:

The entrepreneurial independence of evangelical spirituality leaves room for all kinds of congregational startups that require little if any institutional support. Catering to increasingly specialized “niche” audiences, these startups are not beholden to liturgical forms or institutional legacies. Indeed, many proudly announce their desire to “reinvent church.”

Clearly, the cultural labor of restoration requires imaginative innovation. Good culture making requires that we imagine the world other than as it is — which means seeing through the status-quo stories we have been told and instead envisioning kingdom come. Yes, we need new energy, new strategies, new initiatives, new organizations, even new institutions.

But if we hope to put the world to rights, we need to think differently and act differently and build institutions that foster such action.

Next, his solution:

If our cultural work is going to be restorative – if it is going to put the world to rights – then we need imaginations that have been shaped by a vision for how things ought to be. Our innovation and invention and creativity will need to be bathed in an eschatological vision of what the world is made for, what it’s called to be — what the prophets often described as shalom. Innovation for justice and shalom requires that we be regularly immersed in the story of God reconciling all things to himself.

That immersion happens most powerfully in worship — in intentional, historic, liturgical forms that “carry” the Christian story in ways that sink into our bones and become part of us. This is why the unfettered, undisciplined “reinvention” of the church actually undercuts our ability to carry out innovative, restorative culture making. The story cannot shape us, cannot become part of us, in a church that is constantly reinventing itself.

I certainly agree that “unfettered, undisciplined ‘reinvention’ of the church” diminishes our ability to “carry out innovative, restorative culturing,” but I’m curious as to how we might start (re)defining standards for Christian worship in modern evangelicalism—how we are to pick and choose “intentional, historic, liturgical forms” and how we are to gauge the success of any Read the rest of this entry »

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Responding to Economics Through Wonder, Heartbreak, and Hope

We need to be careful when discussing the intersection of economics and religion, lest we improperly conflate the two or segregate them altogether.

One goal of this blog has been to push toward achieving and discovering the proper approach: to determine the real questions Christians should be asking and proceed to tackle them head on. Far too often our debased disposition gets the best of us and we approach such matters legalistically and/or materialistically, as if there is a sanctified list of dos and don’ts for general economic activity paired with Biblical prices, a God-ordained wage, and an easily discernable end-game equilibrium.

Such an approach impacts our entire view of value — both temporary and eternal — and in turn, is likely to distort our personal economic decisionmaking, our responses to basic economic activity, and our overall attitude and orientation toward the economic sphere at large. This is likely to also impact our view of God, whether directly or indirectly.

Our discussion needs to press toward a deeper tension, and in a recent piece at Cardus, Gideon Strauss lays forth the types of questions that will challenge us toward getting there. Although the piece is geared toward “business leaders” — the likes of which are certainly a relevant audience — the questions therein also apply to your average minimum-wage worker (or whoever else).

Indeed, if Christians did so much as simply struggle with these types of questions from the very beginnings of their work experiences, we could probably get more things right earlier (and probably get a lot more true “business leaders” overall). Our answers will surely bring disagreement, but I’ll leave that for other discussions. For now, I would simply submit that we be attentive to respond to each with a transformed mind.

To frame his approach, Strauss organizes the questions under three groupings, each of which center around human responses to God: questions inspired by wonder, heartbreak, and hope. These, Strauss says, “we may ask of a particular business or market, or a national economy, or perhaps even, of the global economic order.”

Here’s the rationale for each: 

[#1] I believe that: The whole world of making products, providing services, buying and selling, building companies, establishing relationships of trade—marketplaces filled with businesses and their customers—can be a vibrant expression of what it means to be human in God’s wonderful creation.

[#2] At the same time, given the fractured state of this world, our economic lives are often a source of heartbreak: when poverty overwhelms us; when we cannot find work, or make payroll; when our businesses fail, or governments make it hard to do business; or, when we slavishly devote ourselves to the hunt of money and discover at the end of our pursuit that all we have does not matter.

[#3] And yet, part of the good news that crested over the horizon at Easter is that also this vital but broken part of our lives is a theatre of hope: despite the evil and suffering that can make human life a misery, the original promise of business activity and market relationships is being redeemed, and we can work with courage, lead with love, and expect our efforts to bear fruit of very long-lasting value. (emphasis mine)

I encourage you to contemplate each and read his responses and explanations. For all ye lazy ones (or simply for a teaser), the main questions are listed Read the rest of this entry »

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Embracing the Mundane: Radical Discipleship vs. Spiritualized Escapism

I have often argued that radical individualism — i.e. radical obedience to God — often translates into unradical earthly action: building a family, giving to others, befriending a stranger, starting a business, working at a factory, etc. Whether or not our obedience is “radical” can only be defined by the extent to which we are willing to deny our earthly sentiments for the divine.

This, of course, says nothing about what the divine is actually demanding.

Yet many seem to miss this basic point, believing that following God to the fullest should automatically translate into things like preaching to millions or giving away all our possessions to the poor (insert cherry-picked Biblical anecdotes here). The popularity of David Platt’s recent book, for example, indicates that for many, radical obedience needs to translate into action that feels radical in some tangible, earthly way (going on a missions trip, capping one’s income at $X, building a church without air conditioning, etc.).

In a recent article for Relevant Magazine, Andrew Byers does a nice job of countering such thinking, arguing that “radical can be dangerous” and “monotony can be its own mission”:

Scripture calls us into radical service — but that does not allow others to eviscerate tedious, less “spiritually” glamorous tasks of their meaning in God’s Kingdom. Scripture also calls us to embrace the mundane and ordinary as holy and beautiful: “… aspire to live quietly, and to mind your own affairs, and to work with your hands” (1 Thessalonians 4:11).

Many of us want to do something awesome, something epic. We tend to think that the more normal, the less “spiritual.” So it is quite possible that our aspirations to be radical stem from dangerous ambitions to perform biography-worthy feats of global glory.

But radical discipleship is not adventure tourism.

Then, in a move that leads to some striking socio-economic parallels (unintended, to be sure — see here and here), Byers describes the real Christian pursuit as a bottom-up struggle, one filled with risk, relationship, faith, and Read the rest of this entry »

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The Heart of the Entrepreneur: Realizing God’s Provision Through Burgers and Malts

About a year and a half ago, some of our closest friends, Brett and Emily Geselle, started their own restaurant. In the time since, Tommy’s Malt Shop has become a huge success (no small feat in the middle of a recession).

Prior to starting the restaurant, Brett had a successful career in the corporate world. Leaving that path for the high-risk prospect of starting a burger joint was not necessarily the easy, secure, or comfortable thing to do (pursuing the proper American dream typically isn’t). Yet there was something about pursuing the restaurant that made it worth the risk.

Hear their story here (HT):



This is entrepreneurship — and Radical Individualism — at its finest. Brett’s initial vision was not based in a humanistic, materialistic desire for power, glory or wealth, and neither were the actions that brought his dream to fruition. Instead, it was based in the leading of his heart by the Holy Spirit. The subsequent process involved sacrifice, strugglegenerosity, risk, wisdom, diligence, and hard work. That is how God works.

The result: a restaurant that meets community needs while also bringing the Geselles self-fulfillment and a realization of God’s provision. As Brett says in the video, “It has an impact on your heart and it will Read the rest of this entry »

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Monopolies and Competition: Mom! Dad! AT&T’s Not Sharing!

AT&T, T-Mobile, cell phone, acquisition, monopoly, competitionIn my most recent post at Ethika Politika, I comment on AT&T’s recent plans to acquire T-Mobile, a move that has garnered cries of “monopoly!” (or “duopoly!”) from all sides.

But although many see AT&T’s actions as “anti-competitive” in nature, I see no such thing. From where I stand, the acquisition has great potential to improve the company’s output, which could indeed benefit consumers and invigorate competition in the industry:

With a newly expanded network, AT&T could greatly improve its ability to expand service to rural areas. Due to increased economies of scale, it is likely that prices could decrease across the board. Additionally, although critics claim that the tightening of the market will have a negative impact on innovation, many believe it will raise the stakes (“mono y mono!”), leading to improvements on any number of company weak spots, from customer service to overall quality of service.

Yet whether the deal will be good or bad for (anyone’s) business is secondary; such matters remain debatable. The core issue, as I see it, rests in the mindset of those who adamantly oppose the deal on limited evidence, particularly those trying to prohibit it from happening altogether.

As I argue, the problems with such a mindset can be broken into three main areas: (1) a fear of competition itself, (2) a misunderstanding of the company-consumer relationship, and (3) a corresponding pessimism and all-around static view of human ingenuity and potential.

I expound on each, but regarding the third (and most important), here’s an excerpt:

Do we really believe that markets are that unmovable, or that we as innovators, explorers, and dreamers do not have what it takes to meet whatever challenges and needs may arise? Are we really so short-sighted that we Read the rest of this entry »

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A Romantic Boom and Bust: The Opportunity Costs of Love

Last week, I explored the degree of risk and uncertainty involved in pursuing God’s ultimate will for our lives. This week, Tho Bishop has a great piece at the Mises Institute that echoes these themes from the angle of earthly love.

Bishop’s primary goal is to show the parallels between Austrian business cycle theory and what he calls an “Austrian romance cycle,” focusing specifically on the element of time.

The comparison makes for quite an enjoyable read.

Here is the gist:

Romance starts with a first move. Just as Austrians understand that it is the role of the entrepreneur to shoulder the risk of capital investment in order to potentially achieve profit, we can understand that it is the role of an instigator to take the risk in the hope of finding romantic success. Without an entrepreneur, economic growth is unobtainable; without someone making a first move, romantic growth is unobtainable.

To demonstrate the similarities, Bishop provides a brief parable about a young romantic named Adam. In the beginning of the story, Adam is interested in investing in a new relationship, and like any good investor, he is trying desperately to convince certain women that he is “worth the risk.”

Becoming a bit impatient with the slow growth of his success, Adam begins to “stimulate” his love life in the same way a government might try to manipulate an economy: by faking it.

Adam has become frustrated by romantic failure. Fed up with his lack of success in romance, Adam begins to tell every girl who will listen that he saved orphans from the rampaging cannibals of Rojinda, climbed Mount Everest, and once out debated Ron Paul on the House floor. Adam has decided to manipulate his “interest rate.” All of a sudden Adam finds himself as the center of attention.

Behold! The impressive splendor and all-encompassing prosperity of the boom! Spending for the sake of Read the rest of this entry »

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Iron Chef Church: Christianity and the Entrepreneurial Mind

Leigh Buchanan recently wrote a piece for Inc. Magazine titled, “How Entrepreneurs Think,” exploring a recent study on entrepreneurial psychology by Saras Sarasvathy, a professor at the University of Virginia’s Darden School of Business. (HT)

The study draws a clear line between entrepreneurs and corporate executives, concluding that the former typically exhibit effectual reasoning, while the latter are more prone to thinking causally:

Sarasvathy likes to compare expert entrepreneurs to Iron Chefs: at their best when presented with an assortment of motley ingredients and challenged to whip up whatever dish expediency and imagination suggest. Corporate leaders, by contrast, decide they are going to make Swedish meatballs. They then proceed to shop, measure, mix, and cook Swedish meatballs in the most efficient, cost-effective manner possible.

But this doesn’t mean that entrepreneurs are wandering aimlessly through life. Their approach is simply not static. Like an Iron Chef, they are highly mobile and highly adaptable.

The distinction here, according to Buchanan, is as follows:

That is not to say entrepreneurs don’t have goals, only that those goals are broad and — like luggage — may shift during flight. Rather than meticulously segment customers according to potential return, they itch to get to market as quickly and cheaply as possible, a principle Sarasvathy calls affordable loss. Repeatedly, the entrepreneurs in her study expressed impatience with anything that smacked of extensive planning, particularly traditional market research. (Inc.’s own research backs this up. One survey of Inc. 500 CEOs found that 60 percent had not written business plans before launching their companies. Just 12 percent had done market research.)

…Sarasvathy explains that entrepreneurs’ aversion to market research is symptomatic of a larger lesson they have learned: They do not believe in prediction of any kind. “If you give them data that has to do with the future, they just dismiss it,” she says. “They don’t believe the future is predictable…or they don’t want to be in a space that is very predictable.”

Jim Manzi, in his commentary on the article, points out that one must make another distinction between risk and uncertainty, with risk being somewhat quantifiable and uncertainty more  Read the rest of this entry »

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Winning to Live: Competition Is About Discovery

horse, racing, competitionEconomist Friedrich von Hayek once referred to competition as a “discovery procedure.” This week at Ethika Politika, I explore what that means for us as moral individuals.

Far too often we confine our thinking about competition to matters of “justice” or “fairness.” Such considerations are certainly relevant and important, but I fear that we tend to fall back on them as a way of avoiding the impending risk and vulnerability within the competitive process.

As I argue, we must be careful not to lose sight of the ultimate purpose or value of competition, which is, above all, discovery.

Here’s a brief excerpt:

Competition leads to reaction. It demands, provokes, and prods. It draws out information. When we engage in competitive activity, we are bound to uncover something new. We will not be certain of the end goal, and we will not be certain of the end result, but the information we gain throughout the process will point the way towards true value.

Here’s another:

The good news is that although competition may lead to a frustration of our original intentions, it need not be the frustration of our entire destinies. It may tell us that our role in the larger equilibrium (Hayek prefers the term “order”) has shifted, but it is up to us to find ways to provide value in the shifting frontier. We can certainly remain idle as we watch the world transform, or we can participate and innovate, continuing to develop as individuals and as a society.

Read the full article here.

Read the rest of this entry »

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Agents of Faith: Pursuing the Pillar of Fire

Moses Crossing the Red Sea, Pillar of Fire, RaphaelIn times of uncertainty, we tend to look for the quickest path to security. We want solutions that are neat and tidy, direction that is clear and comfortable, and a future that is pretty and predictable. No one wants to be unsure about tomorrow, and no one likes to be exposed.

When it comes to looking for security in God, we are no different. Not only do we want a tangible sign that God is real, but we want a flashy display of his guidance, outlining exactly what to do and how to do it. We want to know which job will be profitable, which relationship will endure, and which parenting strategy will empower our children to the fullest.

In many ways, God has already given us the answers to these questions, and he has done so in a direct and persuasive way — through his Word. Not only does the Word take the form of written guidance for our daily lives, but it also became flesh in order to deliver us from sin and send us the Holy Spirit (aka “the helper”). In this sense, the answers are largely available. What more could we want?

The problem is that God does not answer such questions on our terms. If you’re anything like me, you’ve asked the following question at least once in your life:

If God is real, why doesn’t he just come down from heaven, tell me the Bible is true, and give me his phone number in case I have any questions?

The answer lies in the reality that God created us to be agents of faith, which is necessary for us to be agents of love. God yearns for relationship with us, and real relationship requires faith in the sense that real relationship requires trust.

The struggle of faith — of believing in God and doing what he says— is part of Read the rest of this entry »

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