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Disciplines
• Economics
• Finance
• Personal Financial Planning
Impact of religion: People's religious
beliefs affect practical decisions in their
everyday lives, including decisions in personal
and business finance and economic philosophy.
Religious beliefs influence how people choose
to spend their money and how they believe
money should be spent. They also inform
their beliefs about the role of their nation's
economy in the world and the responsibilities
of the state and individual. Religious organizations
can also be powerful players in the secular
realms of government and politics, affecting
economic policy decisions.
Personal finance:
Individuals' and congregations' religious
ethics often govern their financial decisions
- in giving, spending, saving, investing,
borrowing, allocating and other money matters.
For many people, religious beliefs affect
what products they buy, and where they choose
to spend their money. They may support or
avoid certain businesses or industries because
of religious beliefs. Some faiths celebrate
holidays that lead to seasonal spending
on religious-holiday-specific items. Many
Christians believe in tithing 10 percent
of their income to the church. Muslims are
obliged to pay zakat al-fitr (charity) before
the end of Ramadan to be given to the poor.
The Christian movement Word of Faith (known
for its "Prosperity Gospel"),
believes faithful Christians should expect
financial prosperity and wealth, based on
an interpretation of the words of the Apostle
Paul: "Yet for your sakes (Christ)
became poor, that you by his poverty might
become rich" (2 Corinthians 8:9). Religious
beliefs also play a role in individuals'
and congregations' views toward credit,
loans and debt. Christian theology views
debt as not a sin, but that it should only
be used in extreme necessity, since it leads
to financial bondage, based on Proverbs
22:7, "the borrower becomes the lender's
slave." Some Christians say it is not
acceptable for Christians to owe any money,
even for a home. Others feel such debts
are acceptable as long as debt does not
place a burden on the family's finances.
Islam forbids lending with interest, as
the Catholic Church long did, and the Torah
states that all debts should be erased every
seven years and every 50 years. Mormons
believe in self-reliance, emphasizing that
emergency preparedness includes preparing
financially by staying out of debt, saving
for the future and obtaining insurance.
Faith-based investing is a burgeoning industry,
and houses of worship now routinely offer
courses in money management and personal
finance.
Business finance:
Those involved in the business community
often bring with them similar beliefs as
those that govern their personal financial
habits. Executives and small business owners
likely will exercise their personal religious
beliefs about finances in the business world
as well. Their beliefs affect the products
they buy and sell, where they invest, the
practices in which they engage, and their
behavior in the workplace. Recent large-scale
financial fraud in the private industry
has caused some in the business community
to appeal to religious values as the best
way to increase ethical decision making
in the workplace, though others are concerned
about religion's potential to create conflict
or violate federal workplace laws.
As large
corporations come under closer scrutiny,
some religious organizations - from Christian
mega-churches to Islamic charities (some
came under scrutiny following the 9/11 terrorist
attacks) - also feel the push to study their
books more closely and be more transparent
to members and the public about how money
is spent. Though big-name mega-churches
receive much publicity today, older and
smaller churches, many in the mainline Protestant
tradition, are shrinking in membership and
resources. They are seeking ways to revitalize
their church "economies" to remain
viable. These could all be a growing industry
for analysts and consultants, who can advise
churches on economic matters and businesses
on ethical matters.
Philosophies: Religious
beliefs about economics and personal finance
lead people of faith to various positions
on current issues. For example, while most
churches believe in helping the poor, they
take different views on how to do it. Some
of the more conservative evangelical Christian
churches associate any kind of state intervention
with socialism, favoring individual or faith-oriented
efforts; though others praise the value
of work over welfare, even at minimum wage.
Some religious groups see an active role
for the state and favor raising the minimum
wage, a change they feel is tied to justice
and practically a scriptural mandate. Different
religious interpretations of philanthropy
- where and to whom money should be given,
and why - affect both the personal finances
of the individual and the resources communities
have available to serve needs, locally and
globally.
Global scale: Religious
beliefs often affect people's views of global
poverty and bounty, and the roles of states
and individuals in mitigating suffering.
Some religious groups, such as the Presbyterian
Church (U.S.A) have joined efforts to divest
investment portfolios form Israeli companies
and companies that do business with Israel
to pressure Israel to guarantee human rights
for Palestinians. This angers some other
religious groups, such as the (Jewish) Anti-Defamation
League, which believes divestment is a punitive
measure against Israel for its policies
in the West Bank and Gaza Strip.
Around
the world, wars related to religion affect
local and global economies. One could investigate
how religion, or its suppression, affects
economic growth, or ponder whether increasing
abundance through freer markets would decrease
the supply of people wiling to be suicide
bombers. International Third World debt
has reached the scale that many economists,
as well as people of faith, are convinced
that debt cancellation is the only way to
restore global equity in relations with
the developing nations. Religious groups
often spearhead intervention in impoverished
areas to improve quality of life. Some efforts
are evangelistic in nature, others are not
overtly so. Intervention ranges from providing
medical care and building homes, to improving
sanitation and teaching indigenous people
sustainable agriculture and new enterprises
to overcome poverty.
Areas for study:
Scholars in large numbers are now analyzing
the intersection of faith and economics.
They include people from a range of disciplines
from across the United States and around
the world, as well as students doing groundbreaking
research. Questions they could look at include:
How does religion affect the economy? How
do economic factors impact religious choices?
How do religious beliefs affect how people
spend their money? What impact does religion
have on the global economy? How does membership
in a strict or extreme religious group pay
off - not just in the afterlife, but in
the here and now? Does faith generate individual
behavior that boosts the economy?
Researchers could also
look at what resources are available for
those of faith who want to make large purchases
without using credit or incurring debt,
or want help consolidating existing debt.
This field of study, as well as financial
counselors who can offer advice from a religious
perspective, will be a growing field.
Journal
of Religious Ethics
Journal
of Society and Christian Ethics
American
Academy of Religion Syllabi Search
Religion,
Economy and Values
Ivan Strenski
University of California Riverside
Religion
and the Marketplace
Dr. Linda D. Holler
San Diego State University
Theorizing
Cultural Differences: The Economics of Fundamentalism
Daniel L. Chen
University of Chicago
Religion
in the World: Economics of Religion
Carmel Chiswick
University of Illinois at Chicago
Association of Christian Economists
Association of Christians in Mathematical Sciences
Christian Academics
Muslim Finance Professionals Association
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