Economics Analysis

595 words | 2 page(s)

The way how American government operates often contradicts the Biblical principles, despite the fact the US Constitution was inspired by the Christian principles, too. The recent history of the economic policies demonstrates that some of the economic policies go clearly against the Christian morale. One of the particular economic policies that were criticized by the Christian community is the Obamacare Act, formally adopted by the former Presidential Administration of Barack Obama. In addition to that, the US government was also largely criticized for its actions during the economic crisis in 2008. When criticizing the economic policy of the US government, the Christian community often refers to the Bible and the scriptures. This paper will assess the overstepping of the Biblical principles by the US Federal Reserve.

First and foremost, the Federal Reserve should be defined as the central institution that manages the state finance. The history suggests that the institution was first created in 1913, aimed at ensuring stability and safety of the financial flow in the US economics. Currently, the Federal Reserve operates as the central agency with the office in Washington DC. The personnel working at the Federal Reserve office keeps constant contact with the US State Administration. Thereby, the possibility to impose the policies that favor some social groups contrary to others is very high due to the geographical proximity between the two institutions. However, according to the official documentation, the Federal Reserve is perceived as an independent institution which shall make the decisions without any governmental interfering. At the same time, the US Congress and the Presidential Administration have frequently approved the policies that served their political ambitions.

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The function of the Federal Reserve entails making the necessary adjustments to the US economy. For instance, it can make the necessary short-term adjustments to the interest rates of reserves. Thus, one can see the extremely important role of the institution in maintaining the stable economy of the US economy. The recent actions by the Federal Reserve suggest the institutions’ actions contradict the Christian principles. For instances, there were cases when the bank issued the loans to physical persons whose personal data evidenced an inability to cover the payments back. These actions took place when the Federal Reserve was aware of the scope of issues, and yet the personnel institutions let these actions happen. Ultimately, it had a significantly damaging effect on the US economy. Such irresponsibility and not performing the duty goes clearly against the Scripture and the biblical morale (Manson, Schaefer, 1990).

The issue with the Federal Reserve goes deeper than the single case of misconduct. Similarly to other countries with the central banks, the Federal Reserve is the monopoly, which largely controlled by the government and the economic policies it wishes to pursue. In that case, the American government should take part of the responsibility for the actions of putting numerous US citizens at the financial risk.

No less critical it is to raise that the powers instituted to the bank appear to be overwhelming. Due to the economic crisis, for which the Federal Reserve also partially bears the responsibility, the US government gave even more powers to it. The facts suggest that the Federal Reserve can make unethical decisions against its citizens, and there is a chance that such misconduct will continue, as the institution is gaining more powers.

To conclude, one shall remember that the primary responsibility of the government is to protect the rights of its citizens. The US government which was largely established on the Christian principles should seek the opportunity to observe the scripture and make ethical decision-making.

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