Many don’t understand what economics is in general. Economics is a part of everyone’s daily life and people don’t realize it. Unlike a planned economy where the government decides what the prices of goods and services are; in a market economy where everything is private what the people buy or choose or what they value is what determines prices in this market economy. The people are what drives the businesses. For example, if apples are in high demand the stores may increase their prices to get a better profit. The common misconception is that these companies increase their prices of goods and services because they want more money, but in fact it’s because of the consumer that there is a rise in prices. The definition of the market economy is: a capitalistic economic system in which there is free competition and prices are determined by the interaction of supply and demand. Jay Richards breaks down his book and explains eight common misconceptions or myths and explains it from a Christian prospective.
The first myth or misconception in this book is The Nirvana Myth. The Nirvana Myth is comparing capitalism with an unrealizable ideal. This myth is a misbelief that there could be a utopia or perfect society if people tried hard enough. Without this misconception then the popular but dangerous communist tests in the 20th century it wouldn’t have existed. Tearing down a society because it is unjust to the kingdom of God isn’t right if the …show more content…
Many people believe that the free economy is based on greed for money. According to the bible greed is one of the seven deadly sins. If Capitalism is based on greed then Christians cannot be capitalists. Capitalists don’t believe in this myth. They believe that they are driven by the people and they do this for the society.
The Usury Myth is the sixth myth is Jay’s book. The Bible mentions several times that it was forbidden to charge interest on money. So Christians didn’t and don’t like interests on money loans. Banks today have interest rates on loans only because they don’t want to lose money and the situation is risky. The sin of usury involves exploiting someone in their poverty, like loan sharks do, and doesn’t describe business loans.
Many Christians think of “capitalism” and think “bad.” They assume that capitalism leads to the “commodification of everything,” This means applying value of things to market value. This isn’t really what capitalism is but this due to consumerism. This problem is due to the materialistic view of the world today. Consumption is part of every human life and economic system. Capitalism requires that not all wealth be consumed, but that some be saved, risked, and invested. This is the Artsy