The Case Against Christians Saying the Pledge of Allegiance

Several years ago, I stopped saying the Pledge of Allegiance. I haven’t always objected to saying the Pledge. For years, I never questioned it. The Pledge was never preached against or discussed in Bible classes. Most Christians I knew joined in without hesitation. I was right there with them.

I never viewed the Pledge as a declaration of ultimate allegiance to government institutions. I knew governments often did ungodly things. Instead, I thought of myself as pledging allegiance to the good things the flag was supposed to represent: “liberty and justice for all” and “one nation under God.” As long as America stood for godly values, I could support her, while maintaining my ultimate allegiance to God alone.

Refusing to say the Pledge even felt disrespectful. Scripture commands Christians to honor governing authorities. As Paul writes:

Pay to all what is owed to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed.

Romans 13:7

Even now, though I no longer recite the Pledge, I still believe we must remain respectful. I am not suggesting that Christians should become anti-American activists or stage disruptive protests at sporting events. You can respectfully stand, remove your hat, and yet remain silent without placing your hand over your heart.

If you currently say the Pledge, I think I understand your perspective. But I do want to encourage you to think about what you’re saying. The more I did, the more convinced I became that the Pledge of Allegiance is fundamentally out of step with the gospel.

A Pledge is a Big Deal

Consider those first two words: “I pledge.”

A pledge is a promise, an oath, and a commitment of loyalty. That should immediately capture a Christian’s attention, especially in light of Jesus’ words during the Sermon on the Mount:

Again you have heard that it was said to those of old, ‘You shall not swear falsely, but shall perform to the Lord what you have sworn. But I say to you, Do not take an oath at all… Let what you say simply be ‘Yes’ or ‘No’; anything more than this comes from evil.

Matthew 5:33-37

While Christians have long debated whether Jesus was forbidding every formal oath or simply emphasizing the importance of absolute truthfulness, it is clear that promises and vows are serious spiritual matters. We should never make oaths casually, simply because tradition expects it or because everyone else is reciting them. If we’re going to pledge something, we ought to first pause and examine whether the oath is one we can truly keep.

What Does Biblical Faith Actually Mean?

Consider the biblical concept of faith. The Greek word translated as “faith” is pistis.

In modern culture, faith is often reduced to mere intellectual agreement. The confession, “I believe that Jesus Christ is the Son of God” is frequently treated as simply giving mental assent to the truth of that statement. Sometimes, faith is even treated as the blind opposite of evidence.

That is not how the Bible uses the term. James reminds us that “even the demons believe – and shudder!” (James 2:19). Throughout Scripture, true faith is inseparable from faithfulness, loyalty, or even, allegiance.

We see this clearly in Hebrews 11:

  • By faith, Noah built an ark.
  • By faith, Abraham left his homeland.
  • By faith, Moses rejected Pharaoh’s court.
  • By faith, Israel marched around Jericho.

Faith is never presented as mere belief. It is demonstrated through loyalty, and loyalty includes acts of loyalty. Paul frames the entire book of Romans around “the obedience of faith” (Romans 1:5; 16:26). This phrase has proved quite tricky for those who think of faith as the opposite of works, but it makes perfect sense when we understand pistis as loyalty or allegiance.

This definition matches how the word was used at that time. For instance, in the historical book of 1 Maccabees, King Demetrius praises the Jewish people for maintaining their pistis:

Since you have kept your agreement with us and have continued your friendship with us, and have not sided with our enemies, we have heard of it and rejoiced. And now continue still to keep faith with us, and we will repay you with good for what you do for us.

1 Maccabees 10:25-27

King Demetrius was not thanking the Jews for believing he existed. He was thanking them for remaining politically loyal. In the ancient world, pistis meant allegiance.

The Gospel Calls for Allegiance to a King

Paul opens Romans by summarizing the gospel as a message “concerning [God’s] Son, who was descended from David” (Romans 1:3). This detail matters. David was Israel’s king and Jesus is presented as the One who has inherited his promised throne.

Therefore, Paul’s mission was to bring about “the obedience of faith among all the nations” (Romans 1:5). If faith means allegiance, then the gospel is a summons to people of all nations to give their loyalty to King Jesus.

The central Christian confession is that “Jesus is Lord(Romans 10:9). In the Roman world, “Lord” (Kyrios) was not merely a theological title. It was primarily a political term. To publicly confess Jesus as Lord was to implicitly declare that Caesar was not. That is why the early Christians were routinely accused of political treason:

They dragged Jason and some of the brothers before the city authorities, shouting, “These men who have turned the world upside down have come here also… and they are acting against the decrees of Caesar, saying there is another king, Jesus.”

Acts 17:6-7

The early Christians were not revolutionaries, but they boldly announced that Jesus held all authority in heaven and on earth (Matthew 28:18). When this message was proclaimed throughout all nations, it was understood as a transfer of allegiance away from the competing authorities of those nations, to a life of loyalty to the commands of Jesus.

In fact, one of the reasons why baptism was so important is because it served as a pledge of allegiance. Peter describes baptism as:

…not as a removal of dirt from the body but as an appeal [or pledge, NIV] to God for a good conscience, through the resurrection of Jesus Christ.

1 Peter 3:21

The word translated as “appeal” or “pledge” (eperotema) was used to refer to one’s formal answer, agreement, or vow to the terms of a legal contract. Baptism is a binding pledge of total loyalty made to God. If you are a Christian, you have already pledged your allegiance to a King.

Can Christians Have Dual Allegiance?

This brings us to the core issue: Can a Christian pledge allegiance to Christ and simultaneously pledge allegiance to the flag of an earthly kingdom?

Scripture has much to say about how Christians should relate to the governments. We are to submit to them (Romans 13:1-7), obey their laws (Titus 3:1), and pray for them (1 Timothy 2:1-2). Jeremiah even encouraged the Jewish exiles to “seek the welfare of the city where I have sent you into exile” (Jeremiah 29:7). Christians are to be good and peaceful citizens.

However, Jesus also taught that no one can serve two masters (Matthew 6:24). He demanded loyalty greater than even our loyalty to our family (Luke 14:26). When the apostles were ordered to stop preaching Christ, they replied, “We must obey God rather than men” (Acts 5:29). When forced to choose, their loyalty was undivided.

Revelation’s Warning About Political Powers

The book of Revelation drives this point home with vivid imagery. John depicts the monstrous powers of political entities as “beasts” who were demanding absolute devotion. This image is drawn directly from Daniel 7.

John warned that those who “followed the beast” were, in reality, worshiping the dragon who empowered it with authority (Revelation 13:3-4). The beast promised safety, economic prosperity, and national peace. Yet, John does not advise Christians to pledge their allegiance to the good things these kingdoms stand for. Instead, he offers a sharp warning:

Come out of her, my people,
lest you take part in her sins,
lest you share in her plagues.

Revelation 18:4

According to the book of Revelation, you cannot give your loyalty both to the Lamb and the Beast. One loyalty wholly excludes the other.

The Witness of the Early Martyrs

The final piece that reinforced this conviction for me came from reading about the early Christian martyrs. For the first three centuries, one of the primary reasons Christians were persecuted is because they refused to swear oaths of loyalty to Caesar.

When Polycarp, a disciple of the apostle John, was arrested, Roman officials offered him freedom if he would simply “swear by the fortune of Caesar.” Polycarp refused. Instead he answered:

“Eighty and six years have I served Him, and He never did me any injury: how then can I blaspheme my King and my Savior?”

The Martyrdom of Polycarp 9

For Polycarp, pledging loyalty to Caesar was equivalent to blaspheming Christ. You can read the entire account here.

Similarly, during the trial of the Scillitan Martyrs in AD 180, a Christian named Speratus was pressured to swear allegiance to the emperor. He answered:

I do not acknowledge the authority of this world, but rather I serve that God whom no one has seen or can see with these eyes. I have never been guilty of theft, but whenever I buy, I pay the tax, because I acknowledge my Lord, the King of Kings, and ruler of all peoples.

The Acts of the Scillitan Martyrs

Speratus recognized Caesar’s legal authority, but he was executed because he refused to vow his allegiance to him. An additional Scillitan martyr named Donata likewise refused to pledge to Caesar with the following words:

Honor to Caesar in his capacity as Caesar, but fear to God.

You can read the entire first hand account of these martrys here.

Is reciting the Pledge of Allegiance a perfect parallel to what these Christians were being asked to do? Probably not. Romans often demanded sacrifices to pagan gods along with those pledges. Nobody is asking Americans to worship false gods along with the Pledge.

Even so, when you read about these early Christian martyrs, their objections focused not on Rome’s worship of other gods, but in the vow of allegiance to any king other than King Jesus. The ancient Christians viewed themselves as citizens of a heavenly kingdom. They honored earthly rulers, but because of their devotion to Jesus, they absolutely refused to swear vows of allegiance to them, even at the expense of their lives.

A Different Kingdom

Christians should respect their leaders, pray for them, and obey them whenever doing so does not require disobedience to God. But pledging allegiance is something different. It is a declaration of loyalty. As Christians, we have already made that declaration. Jesus is our King. The church’s mission is not to point people to America as the source of liberty and justice, but to point them to Jesus Christ as the true Savior of the world.

For that reason, I can no longer say the Pledge of Allegiance. If you are a Christian, I invite you to consider doing the same.

Did Jesus Really Rise from the Dead? Part 6: It’s Not About the Evidence

Did Jesus Really Rise from the Dead?
Part 1: Why the Resurrection Deserves Serious Examination
Part 2: Why the Alternative Theories Fail
Part 3: The Earliest Christian Source
Part 4: The Gospel Accounts of the Resurrection
Part 5: The Transformation of the Disciples

The historical evidence for the resurrection of Jesus is much stronger than many assume. We possess multiple sources that are both early and rooted in eyewitness testimony, plus we have evidence that the resurrection was already a foundational teaching of Christianity long prior to the writing of these sources. These claims were publicly proclaimed in Jerusalem, while many of the named witnesses were still alive and available to be consulted.

The enemies of Christianity were unable to produce a body, and did not deny that the tomb was empty. Instead, they attempted to make counterarguments to explain how the tomb was empty (cf. Matthew 28:13-15). The fact that they felt compelled to explain the empty tomb concedes the central truth that the tomb which once held Jesus’ body was now empty.

Meanwhile, the earliest Christians faced persecution and in many cases death, yet the threats to their lives did not deter them. Long-held Jewish ideas about one single general resurrection at the end of time were suddenly transformed into the belief that the resurrection would begin with one man in the middle of history. New theology about a crucified Messiah suddenly sprang onto the scene of history and spread like wildfire. Something caused this to happen.

The four gospel accounts, all written within the lifetime of eyewitnesses, all agree on the central facts of Jesus’ crucifixion and burial, the discovery of the empty tomb, and the numerous post-resurrection appearances. At the same time, they retain all the uniqueness you would expect of genuine independent witnesses. They quite clearly do not read like collusion.

If this much evidence existed for any other historical event – that is, any historical event that does not challenge our core identity and philosophical assumptions about the world – almost every historian would affirm it without hesitation. And this brings us back to the point made at the beginning of this series. The primary reason many reject the resurrection is not the lack of historical evidence.

The real reason many people reject the resurrection is their allegiance to a different worldview that is built on presupposed assumptions about the nature of reality. If one begins with a firm commitment to the idea that supernatural miracles cannot occur, that a dead man cannot rise from the dead under any circumstances, then the resurrection must be false. And if this is the case, some alternative explanation of the data is required, no matter how much that theory struggles to make sense of the data.

You may conclude that the Roman soldiers failed to fully execute Jesus, or that the disciples stole the body and fabricated the story, or that they were sincerely mistaken, or that a grand legend rapidly developed and was adopted by numerous people all throughout the Roman Empire. But each of those alternatives carries serious difficulties of their own. Ultimately these alternative theories must be maintained in spite of the historical evidence, and not because of it.

But what if that allegiance were to change? What if someone’s core identity were to shift, away from the secularism and materialism that is so prevalent in the world, and to turn toward a group of people who have sworn their allegiance to the one who gave up everything because of his love for others? What if they were to begin to walk in the way of mercy, grace, and love that was demonstrated on the cross? What if they were to place their hope in the one who defeated death itself? If someone were to change their core identity, and begin to think of the world through the lens of Christianity, they would find that the historical evidence all makes perfect sense.

No question in life is more important than this one. The resurrection is the foundational claim of Christianity. If the resurrection is false, then Christianity is false. But if Jesus truly rose from the dead, then He is exactly who the Christians recognize him to be. He is the Lord and Messiah, the Son of God in the flesh. His authority over the world is real, and His teachings matter. If the resurrection is true, then death has been defeated.

Everything hinges on this one question: Did Jesus really rise from the dead? Do not brush the question aside. Examine the evidence carefully. Set aside presuppositions and weigh it honestly. If the resurrection is true, then the only reasonable response is to reconsider where your allegiance belongs.

How Does Satan Rule America?

See also:
The Principalities and Powers: The Invisible Rulers We Need To See
Are the Other “gods” of the Bible Real?
Do False Gods Still Rule the Nations?

In the book of Job, the adversarial spiritual being known as “Satan” tells the Lord that he has been “walking to and fro on the earth” (Job 1:7). Later, Scripture speaks even more plainly as Peter warns that “your adversary the devil prowls around like a roaring lion, seeking someone to devour” (1 Peter 5:8). Together, these passages teach two important truths. First, Satan is indeed active in the world. But second, he is not omnipresent. Unlike God, who fills heaven and earth, Satan is a created being – limited in power, space, and knowledge.

He cannot be everywhere at once, nor can he focus personally on every individual at all times. So if Satan is neither all-powerful nor omnipresent, how is his influence so widespread?

Scripture gives us the answer: he works through deception and manipulation, operating indirectly through both heavenly powers and earthly rulers.

Satan’s Delegated Powers

The Bible reveals that Satan rules through a network of subservient spiritual beings who carry out his will. Jesus refers to “the devil and his angels” (Matthew 25:41), and Revelation 12:9 says that “his angels were cast out with him.” These angels are real spiritual entities, operating under his command.

Satan also works through the rulers of the kingdoms of men. In Luke 4:5-7, he offered Jesus “all the kingdoms of the world,” declaring:

To you I will give all this authority and their glory, for it has been delivered to me, and I give it to whom I will. If you, then, worship me, it will all be yours.

That statement reveals that the nations of the world are, to a large degree, under Satan’s sway. When men reject God’s rule, they inevitably come under Satan’s. This is precisely why God warned Israel about seeking a human king.

And the Lord said to Samuel, ‘Obey the voice of this people in all that they say to you, for they have not rejected you, but they have rejected me from being king over them.”

1 Samuel 8:7

Every earthly government that operates apart from God’s law is part of this same pattern of rebellion. This is why Paul wrote:

For we do not wrestle against flesh and blood, but against rulers, against the authorities, against the cosmic powers over this present darkness, against the spiritual forces of evil in the heavenly places.

Ephesians 6:12

Observe that Paul does not say our battle is simply against Satan himself, but against rulers and authorities – lesser powers, both spiritual and earthly, who derive their authority from him.

From Babel onward, every attempt by man to unite and govern themselves apart from God has been viewed in Scripture as rebellion. Each successive empire that flowed from Babel – Egypt, Assyria, Babylon, Rome – follows that same pattern. Revelation 13:4 makes it clear that the “beast,” representing this kind of human government, receives “his power, throne, and authority” directly from “the dragon,” that is, from Satan.

And they worshiped the dragon, for he had given his authority to the beast, and they worshipped the beast, saying, ‘Who is like the beast, and who can fight against it?”

For this reason, we must learn to view earthly government itself as evidence of Satan’s ongoing rule in the world.

How This Pattern Appears in America

The United States of America is not exempt from this biblical pattern. The same spiritual forces that ruled over Babylon, Persia, and Rome still operate behind the scenes in modern nations.

Scripture teaches that the nations are not merely political realities, but spiritual ones as well. Deuteronomy 32:8-9 describes how, when God divided the nations, He “set the boundaries of the peoples according to the number of the sons of God,” indicating that each nation came under the oversight of its own spiritual being. Daniel 10 pulls back the curtain even further, showing us how the actions of earthly rulers reflect unseen interactions among heavenly “princes.” While Christians may differ on some of the interpretive details of these passages, what remains clear is that the nations operate under the influence of spiritual beings which stand in tension with God’s reign.

While these texts establish the reality of corrupt spiritual influences over the nations, we can also see this reality reflected in the symbols these cultures adopt for themselves. With this in mind, it’s worth noting how much of America’s national imagery draws straight from paganism. For instance, it is well known that the “D.C.” in “Washington D.C.” stands for the District of Columbia. But who is “Columbia”? Most people have never given it a second thought. Columbia was a mythical being created as a feminine personification of the spirit of America – often portrayed as a robed woman bearing a torch. The Statue of Liberty, in fact, was modeled after this image of Columbia.

Interestingly, the function of Columbia as the “spirit of America” closely resembles that of national deities in the ancient world. The Greeks personified their ideals in Athena, and the Romans embodied the power and destiny in the goddess Roma. In a similar way, Columbia was created to symbolize America’s ideals of enlightenment, liberty, and independence.

To be clear, this does not mean that Columbia is necessarily a literal goddess. We cannot identify her with any specific “principality or power” named in Scripture. Much like it would be impossible to prove that Athena and Roma accurately represent the actual spiritual rulers mentioned in Scripture, neither do we know any specific details about the actual spiritual entity that represents America. The image of Columbia can be easily explained as having arisen out of the Enlightenment-era admiration for Greek and Roman art and architecture. Scripture gives no detailed knowledge of the specific spiritual beings associated with modern nations, and it would be speculation to claim otherwise.

The existence of pagan symbols does not itself prove America’s corrupt spiritual allegiance; Scripture already does that. But the symbols arise from a culture’s imagination and reflect how a nation understands itself. In that sense, America’s pagan imagery mirrors what Scripture describes more broadly: every nation possesses a kind of spiritual “personality,” that is shaped by unseen powers that influence its values, priorities, and direction.  

So while we cannot know the specific identities or characteristics of the spiritual beings who stand behind the nations, we can know what the Bible plainly teaches – that the nations of the world are ruled by spiritual powers that exist in rebellion to God.  

The Rule of Satan

Here is what we know for certain from Scripture:

  • Satan is the god of this world (2 Corinthians 4:4).
  • He exercises his rule indirectly through spiritual and earthly principalities and powers (Ephesians 6:12).
  • These powers exercise regional dominion, ruling over specific nations (Daniel 10:13, 20).

Just as the Sidonians had Ashtoreth, Moab had Chemosh, and Ammon had Molech (1 Kings 11:5-7), so too each modern nation operates under some spiritual power that mirrors what we see happening on earth.

When we see national symbols that mirror pagan forms, we should therefore take notice. The District of Columbia, the Washington Monument shaped like an Egyptian obelisk (a symbol of the sun god Ra), the Capitol city adorned with statues of Mars, the Lincoln Memorial modeled after a Greek temple – these are not insignificant. Even if their creators saw them as mere works of art, they are still pagan in origin and should remind every Christian of the deeper reality Scripture describes: America, like every other earthly nation, is under the rule of Satan and his principalities and powers.

For this reason, it should not surprise us that America is marked by constant warfare, widespread violence and division, deceptive and destructive economic policies, and the slaughter of millions of innocent children through abortion. These are the natural fruits of a kingdom ruled by Satan – the one who “comes only to steal and kill and destroy” (John 10:10). He steals through inflation and taxation, kills through war and violence, and destroys through corruption of truth and life itself.

The Christian Response

First, Christians must recognize that “the whole world lies under the sway of the wicked one” (1 John 5:19). Satan works through both the earthly and spiritual rulers of the nations, deceiving them and spreading his lies. Revelation 13:14 and 20:3, 8 describe him as “the deceiver of the nations.

Therefore, earthly governments – no matter how moral or democratic they may appear – remain part of the same system that rejects Christ’s kingship.

If these things are true – and Scripture insists they are – then uncomfortable questions inevitably follow. Christians must not confuse patriotism with faithfulness to Christ, or loyalty to a nation with allegiance to the kingdom of God.

How can any Christian pledge allegiance to a kingdom ruled by powers in rebellion against Christ? Why would a follower of Jesus devote his life to the service of a government that refuses His kingship? And how would a disciple of the Prince of Peace take up arms in defense of a nation whose authority arises from rejection of God’s rule?

For the time being, Satan continues to deceive the nations. Yet his rule is neither absolute nor enduring. Because of the gospel, his defeat is certain. “Then comes the end,” Paul writes, “when He delivers the kingdom to God the Father after destroying every rule and every authority and power” (1 Corinthians 15:24).

Christ alone possesses “all authority in heaven and on earth” (Matthew 28:18). Therefore, the hope of every Christian must never be tethered to the doomed authorities of this world, but anchored in “the kingdom of our Lord and of His Christ” (Revelation 11:15).

Every nation bears the marks of spiritual rebellion, but only one kingdom stands eternal – the kingdom of Christ. America, like all the nations in history, will rise and fall. Its monuments will eventually crumble. But the throne of Christ will never be shaken.

Our task as Christians is not to try to reform the Satanic kingdoms of this world into slightly more Christian versions of themselves, but to bear witness to a greater kingdom – to “proclaim the excellencies of Him who called you out of darkness into His marvelous light” (1 Peter 2:9). Our allegiance belongs to Christ alone.

Does Church Attendance = Faithfulness?

Dear Christian Exile Readers,
I’ve had a question come from a much loved sister in a wonderful congregation. I thought my answer to her might be helpful for us too. Christians all over the world are desirous to know how we might be more faithful in the Lord’s service.

Our Sister’s Question – “May I please ask if attending Wednesday night study would be a criteria of a person’s faithfulness? We have a big argument in the church here.”

My response:
Hi sister! It’s good to hear from you! I really appreciate your question. It might be helpful to know that this question is relevant in America too. Here in Tennessee, our church attendance on Sunday evening and Wednesday night is significantly lower than our attendance on Sunday mornings.

The fact of the matter is this: For each individual who attends on Sunday morning but doesn’t return on Sunday or Wednesday night, I won’t know their reasoning without asking them. I likely won’t be able to ask in a humble but sincere way without first being enough of a brother or sister to them to let them know how much they are missed.

As for the question of whether or not I can place a criteria for faithfulness for one of my brethren, I’m not sure that I can and this is why: I don’t know their heart.

I’m sure many have their reasons for absenting themselves from our evening church gatherings. For some, I imagine they have to work to provide for their families, but perhaps it would be possible for them to ask for those evenings off. For the older generation in the church, they may be uncomfortable driving at night, but perhaps they could ask for a brother or sister in Christ to give them a ride. Whatever their excuse may be, I truly cannot examine their heart or the legitimacy of their reasoning. All I can do is to serve them, love them, and do my part in providing a family-like atmosphere that any absent family member would be sad to miss.

If a brother or sister thinks of worship services, Bible study opportunities, and occasions of fellowship as an obligation or a chore, this is a symptom of a deeper heart problem. When my heart is fully aligned with the heart of Christ, where else would I want to be than with His people? What other activity could possibly bring me more joy and meaning in my life than to better understand His Word or to praise Him for what He has done?

I would encourage the brother or sister in question with the following passages from the book of Psalms and then ask how we, as faithful individuals, might positively impact our gatherings.

Psalm 133:1 states “Behold, how good and pleasant it is when brothers dwell in unity!”

Are our gatherings an opportunity for goodness and pleasantness? Do we enjoy fellowship and see the love of Christ in the Christian family? If not, we need to seriously consider what aspects of our gatherings could use improvement. We are to “stir one another up to love and good works” at the occasion of our meetings (Hebrews 10:24-25). We may need to determine whether something like bitterness, slander, or complacency in our gatherings is preventing love and good works from being stirred up and may be keeping brethren away.

The Psalmist tells us of his joy to learn God’s Word. In Psalm 119: 14-16 we read:

In the way of your testimonies, I delight as much as in all riches.
I will meditate on your precepts and fix my eyes on your ways.
I will delight in your statutes; I will not forget your word.

The faithful brother or sister feels this way about God’s Word and every opportunity to study it.

Are the Bible study opportunities we present to the congregation deep and meaningful? Does the congregation feel fed from the word of God? If not, they may look for meaning elsewhere. I pray our meeting times are catered to the needs of those still needing ‘the pure milk of the word’ (1 Peter 2:2), but also to the spiritual dietary requirements of more mature brethren who are ready for ‘the meat’ (1 Corinthians 3:2).

I will give to the LORD the thanks due to his righteousness,
and I will sing praise to the name of the LORD, the Most High.

Psalm 7:17

Are our gatherings frequently reminding our brethren of how praiseworthy our Lord is and how much he has benefited us (Psalm 103)? While we may often focus on our responsibilities to keeping His commands, are we frequently focusing on His great love for us, His rescuing us from our sins, and His wonderful plan of salvation? When we are frequently reminded of how great our Savior’s love is for us, we will remember that “his commandments are not burdensome” (1 John 5:3).

The heart of a faithful individual grieves when they miss an opportunity to spend time with their Christian family. They take advantage of every possible chance to worship the Lord or learn something new from His Word. There’s nowhere they’d rather be during the times in which the local congregation has chosen to meet.

While we aren’t able to look into the hearts of those absent on Sunday or Wednesday nights, we are able to look into God’s Word and understand our faithful response to these brethren is to love and encourage them while we seek to make our times of gathering more rich in praise, sweet fellowship, and dedicated Bible study.

John

Considering Titus 1:6 and the Qualifications for Elders

Dear Christian Exile readers,

Please pray for the young congregations of New Zealand who are studying and working hard to  appoint their first elderships! The congregation at South Auckland appointed their first elders last month and the following correspondence is from another great congregation in New Zealand who is studying the topic. One thing is for certain, congregations with hard-working, servant-leaders who serve as elders are incredibly blessed! Thank God daily and pray for these men and their families! Don’t take them for granted!

My good friend asked me:

“We have been looking at eldership lately and looking at what ‘faithful’ means in Titus 1:6; whether it means ‘Christian’ or ‘faithful forwards parents. Just want to know your thoughts…”

My response:

I’m really glad to see that your congregation is continuing to study eldership. I was excited to see the new eldership at South Auckland and hope that the congregations of New Zealand will follow their footsteps. I also really appreciate the carefulness that everyone is taking in wanting to properly understand 1 Timothy 3 and Titus 1. That concern for scriptural authority is commendable. It would be impossible for anyone familiar with the situation to conclude that anyone there is ‘playing fast and loose’ with the Scriptures. You all clearly want to honor the Lord both in the desire to have scriptural leadership but also the desire to make sure that any man appointed meets the biblical qualifications. Amen to both of those desires!

I have seen some congregations, in their desire to honor God’s criteria for elders, impose the strictest possible (but not necessarily accurate) interpretation on Titus 1:6. By doing so, I think they miss the overarching point of the criteria.

Each of these standards mentioned for eldership are meant to be evaluated in view of the final goal: the task of faithfully shepherding a congregation of the Lord’s people. 

The first criteria in Titus 1:6 provides a helpful illustration of this. What does “the husband of one wife” mean? Consider this situation: Imagine a scenario where a faithful Christian man, already an elder, was married to a faithful Christian woman and she died. At some point later, this same faithful man remarried a widow in the Church who had been faithful for her whole life. Would he now be unqualified to serve as an elder? I have met some who would say that the fact that he has now remarried means that he is no longer “the husband of one wife.” He’s technically had two women in his life. Holding that strictest possible (but incorrect, in my opinion) interpretation, he would not be qualified for eldership, despite being qualified by every other criterion. But does that strict interpretation honor the purpose of the criteria? Is a widower who scripturally married a widow somehow less fit to shepherd the flock of God because, technically, he has had two wives over the span of his whole life? No, a better interpretation of the phrase “husband of one wife,” given the end goal of the criteria is whether or not a man has followed the Lord’s instructions concerning marriage.

If we apply this same standard to the question of “pistos” in 1:6, it might shed some light on the highly debated question. It’s important to recognise that the fact that many have debated it means that we are all very concerned with faithfulness to God in our interpretation. 

In Scripture, “Pistos” is sometimes interpreted “trustworthy” or “faithful” in reference to a responsibility or to a superior like it is in Matt. 25:21, 23, 1 Cor. 4:2, and likely in 1 Tim. 1:12. In this case, it could be understand in Titus 1:6 to mean “faithful” to the father or the family in their particular role as children. Elsewhere it is synonymous with “believing” or being a Christian (1 Tim. 4:3, 10; 6:2; Acts 10:45. If this is the meaning of Titus 1:6, it would mean that the man’s children are Christians who are living faithful lives. In each of the above scriptures referenced, only the context of the passage provides us any insight into which interpretation is to be preferred.

So what is the answer in Titus 1:6? 

I’m not sure I know definitively. There’s a strong case that could be made either way. But in my opinion (and that’s all it is), the overarching, final goal of these criteria is to find men who are capable of shepherding the congregation, proven by their track record as fathers. One question that could be asked of a particular candidate is: Did this individual provide the expected physical and spiritual nourishment, protection, and care for their children? 

It’s true that all children have free will and can decide whether or not to obey their father’s instructions, but the question before us is whether the father provided the things for their own children that an elder ought to be able to provide to the congregation: diligent instruction in truth, protection from falsehood, and care for physical and spiritual wellbeing. If the potential candidate’s deficiencies in one or more of these areas may have potentially led to his child’s unfaithfulness to the Lord, then he likely needs to humbly remove himself from consideration for eldership. If, however, these shepherding characteristics were seen by others in the upbringing of the candidates’ children, I wouldn’t necessarily consider the individual unqualified if one or more of his children rebelled against their father’s upbringing of instruction/protection/care.

If the interpretation of “pistos” to the father/family is taken, the congregation and candidate needs to be incredibly clear on the spiritual status of the potential elder’s children. There can’t be any doubt in the minds of the congregation on what the candidate thinks concerning his wayward children’s souls. Is he clearly grieved by their forsaking of the Lord, despite the good instruction received at home? Obviously, this is an incredibly difficult conversation, but despite the difficulty, passages such as 1 Corinthians 5:9-10 and 2 John 9-11 need to be considered in how they apply to the particular situation.

In whatever the situation, we have to recognise the nature of congregational autonomy. It is one of the beautiful elements of God’s design in His Church.

No congregation can scripturally legislate or adjudicate the decisions of another flock. Peter tells his fellow elders to “shepherd the flock that is among you” (1 Peter 5:2). We may teach and admonish others, but not make their decisions for them. The decision made in your congregation is specific to your situation. No other congregation will know the details behind your decision, nor can they make it for you. Therefore, decisions made (or not made) ought not to prioritise a concern for what a congregation two hours away might think. You all know the flock there and your particular circumstances better than anyone else. 

I pray for wisdom for everyone involved in your decision, love and grace for every member in the body while considering the uncomfortable aspects of this question and individuals involved, and trust and humility towards the Lord and His Word. May God Bless You All.

– John

Is Your Wisdom Hurting the Church?

In the book of Proverbs, we are instructed to seek wisdom (Pr. 3:13-18; 4:7-9). Likewise, in the New Testament we are encouraged to walk in wisdom (Eph. 5:15-17). We must not embrace every sermon, book, podcast, or idea that comes along. We must use discernment to “test the spirits to see whether they are from God” (1 Jn. 4:1).

To those who love meditating on Scripture, and discussing how the church might grow stronger by following its inspired wisdom, thank you. These conversations are vitally important. Guarding the truth and exposing error is essential for the well-being of the church.

But we must remember that not all “wisdom” is beneficial. James warns of two kinds of wisdom: wisdom from above, and wisdom that is earthly, unspiritual, and even demonic.

Who is wise and understanding among you? By his good conduct let him show his works in the meekness of wisdom. But if you have bitter jealousy and selfish ambition in your hearts, do not boast and be false to the truth. This is not the wisdom that comes down from above, but is earthly, unspiritual, demonic. For where jealousy and selfish ambition exist, there will be disorder and every vile practice. But the wisdom from above is first pure, then peaceable, gentle, open to reason, full of mercy and good fruits, impartial and sincere. And a harvest of righteousness is sown in peace by those who make peace.

James 3:13-18

While discussing these two types of wisdom, James offers three warning signs that indicate when someone has crossed the line from heavenly wisdom, to the type of wisdom that hurts the church. As we seek to share our wisdom with the church, we must be on the lookout for these warning signs.

Warning Sign #1: Selfish Ambition

It can be incredibly satisfying correcting someone’s errors. In fact, it can be addicting. Correcting the mistakes of others can easily turn into a hobby.

You know your wisdom is sound, and based on airtight Scriptural logic. You know you have the skill to convincingly refute their misguided ideas. Yes, they might try to argue back, but you are prepared for any objection they may raise. If they do argue back, it will be to their shame (and your glory, though you may not be quick to admit it).

If this describes you, watch out.  Your wisdom may indeed be “sound” and “Scriptural.” Your argument may be “right” and “true.” But if you are motivated by the personal satisfaction and benefit it brings, that is called “selfish ambition.” It is a serious warning sign that your wisdom is not godly.

“But my motivation is love for Christ, for the church, and for truth.” If that is genuinely the case, it is commendable. Just be honest with yourself and make sure that is your true motivation.

Warning Sign #2: Bitterness

James warns against “bitter jealousy,” that attitude of continual complaining and finding fault in others, even in trivial matters. If you try hard enough, you can find a lack of wisdom under every rock. But when your attitude turns bitter, you don’t even have to try hard. Every preacher you hear has problems. Every elder you know does a poor job leading the church. Every work of the church is a waste of time and money. Every imperfect phrase or idea grates on you like nails on a chalkboard. Rather than looking for the good in others, and looking for what you can learn from others, you become a continual critic.

Church critics seldom seek clarification; they wait for one misspoken word, cling onto it, and use it as an opportunity to point out other’s mistakes.

Church critics are not joyful, and they struggle to feel brotherly compassion. They say “you should know better” instead of “I love you, and want to encourage you.”

I get it. Sometimes Christians will disappoint you. Often, criticisms are entirely justified. But if you start to sense bitterness taking root in your heart, and feel compelled to continually complain about others, this is a warning sign.

You may possess a wealth of Biblical knowledge and valuable insights, and others might indeed benefit from listening to you. Nevertheless, James describes “bitter” wisdom as “earthly,” “unspiritual,” and “demonic.”

Warning Sign #3: Disorder

In 1 Timothy 6:3-5, false teachers are described as having “an unhealthy craving for controversy and for quarrels about words, which produce envy, dissention, slander, evil suspicions, and constant friction among people.” James says something similar when he describes earthly wisdom as generating “disorder and every vile practice.”

You know it’s time to reassess your approach when your attempts to share wisdom with the church morph into an “unhealthy craving for controversy and for quarrel about words.” This is the very craving that fuels the false teachers your claim to oppose. Yes, we must confront error in the church, but there is a difference between guarding the truth and incessantly nitpicking others merely because you enjoy controversy.

If you aren’t careful, you’ll end up becoming your own worst enemy, producing the same results as false teachers: “envy, dissension, slander, evil suspicions, and constant friction among people.”

The Cure

The challenge is how to stand for the truth, wisely warning others of the consequences of disregarding Scripture’s teachings, without turning into a source of continuous bitterness, grumbling, and fault-finding. After all, there is an incredible amount of joy, beauty, friendship, generosity, and goodness in the church, even as it stands. Those who follow Jesus are commanded to “rejoice always” (1 Thess. 5:16). There is goodness in the church, and this is worth celebrating.

So what’s the solution? What should we do if we see ourselves approaching one of these warning signs? In the middle of James’s warnings, he offers a compact yet powerful description of the “wisdom that comes down from above.” His description doesn’t focus on knowledge of scripture, years of experience, academic credentials, or knowing how to manage large groups of people. It is much deeper than any of these.

The wisdom from above is first pure, then peaceable, gentle, open to reason, full of mercy and good fruits, impartial and sincere. And a harvest of righteousness is sown in peace by those who make peace.

James 3:17-18

Ironically, these are the kind of attributes that are often dismissed as “unwise,” especially by those who are already filled with jealousy and selfish ambition. Those who love controversy often view those who are peaceable, gentle, merciful, and open to reason as “soft” or “weak.” They might accuse them of “coddling” others or being a “people-pleaser” who is afraid to boldly stand for the truth.

Heavenly wisdom is anything but “weak.” These characteristics are hard to develop and challenging to maintain. “Soft” men cannot develop these qualities; they only emerge through continual prayer and rigorous self-discipline. Even then, they may take years to develop.

Take time to reflect on these attributes. Do they describe you? Can you honestly say “I am pure, peaceable, gentle, reasonable, merciful, full of good fruits, impartial, and sincere”? Think about the times and places when you find these attributes challenging. Think about the people who bring out the worst in you.

Above all, pray for wisdom – true wisdom (James 1:5). The next time the challenge arises, hold firm to the wisdom that comes from above.

The Holy Spirit and Confession

This article is the twentieth in an ongoing study of the Holy Spirit. Click here to read other articles in this series.

In 1 Corinthians 12:3 Paul says “No one can say ‘Jesus is Lord’ except in the Holy Spirit.” John writes something similar in 1 John 4:1-3, which reads, “By this you know the Spirit of God: every spirit that confesses that Jesus Christ has come in the flesh is from God, and every spirit that does not confess Jesus is not from God.” Both Paul and John emphasize the importance of the Holy Spirit in recognizing and confessing the truth about Jesus and his lordship.

But what exactly do these scriptures mean? Does the Holy Spirit miraculously work on some people’s hearts to bring about this confession? If so, why doesn’t He miraculously work to change everyone’s hearts so that all will confess the same truth? What exactly is the role of the Holy Spirit as it pertains to the Christian’s confession about Jesus?

No One Can Say “Jesus is Lord” Except in the Holy Spirit

Now concerning spiritual gifts, brothers, I do not want you to be uninformed. You know that when you were pagans you were led astray to mute idols, however you were led. Therefore I want you to understand that no one speaking in the Spirit of God ever says “Jesus is accursed!” and no one can say “Jesus is Lord” except in the Holy Spirit.

1 Corinthians 12:1-3

As discussed in the previous part of this study, the Corinthians had become so consumed by their spiritual gifts that they had forgotten to use those spiritual gifts in the way they were intended to be used. That is, they were not governing the use of their spiritual gifts with Christ-imitating love.

As Paul addresses this problem, he begins by reminding them of something very important. Being led by the Spirit must not be confused with simply being led by something.

You know that when you were pagans you were led astray to mute idols, however you were led.

1 Corinthians 12:2

Before the Corinthians became Christians, how is it that they had been led into paganism? We don’t know. Perhaps it was just an emotional pull in their heart. Maybe it was just how they were raised. Maybe they had been wrapped up in a cultural movement. We simply don’t know. But Paul’s point is clear. Whatever it is that led them into paganism, it clearly was not the Holy Spirit. People are led to believe certain things in many different ways, and not all of them are good. That is why Paul gave the Corinthians a test.

Therefore I want you to understand that no one speaking in the Spirit of God ever says “Jesus is accursed!” and no one can say “Jesus is Lord” except in the Holy Spirit.

1 Corinthians 12:3

Just as the Holy Spirit had not been the one who had led the Corinthians into paganism, so also, when anyone says “Jesus is accursed”, it clearly was not the Holy Spirit leading them to say that.

Who is Paul talking about here? Who in Corinth was saying “Jesus is accursed,” and why were they saying it? Most likely, Paul was referring to the same people he referred to back in chapter 1, who rejected the word of the cross as foolishness.

For the word of the cross is folly to those who are perishing, but to us who are being saved it is the power of God.

1 Corinthians 1:18

The idea that Jesus became the anointed Lord of the world, not by conquering his enemies, but by dying at their hands, is a concept that many struggled to accept. To them, the word about the cross sounded foolish. Or as Paul put it,

We preach Christ crucified, a stumbling block to Jews and folly to Gentiles, but to those who are called, both Jews and Greeks, Christ is the power of God and the wisdom of God.

1 Corinthians 1:23-24

Why is it that some are able to see the wisdom of the cross, while others dismiss the cross as foolishness? According to Paul, the only way a person can wrap their mind around the wisdom of the cross is by the Spirit of God.

For who knows a person’s thoughts except the spirit of that person which is in him? So also no one comprehends the thoughts of God except by the Spirit of God. Now we have not received the spirit of the world, but the Spirit who is from God, that we might understand the things freely given us by God. And we impart this in words not taught by human wisdom but taught by the Spirit, interpreting spiritual truths to those who are spiritual.

The natural person does not accept the things of the Spirit of God, for they are folly to him, and he is not able to understand them because they are spiritually discerned. The spiritual person judges all things, but is himself judged by no one. For who has understood the mind of the Lord so as to instruct him? But we have the mind of Christ.

1 Corinthians 2:11-16

There are many clarifying observations which can be drawn from these verses. First, notice once again the close connection between a person’s “thoughts” and their “spirit.”

  • “Who knows a person’s thoughts except the spirit of that person which is in him?”
  • “No one comprehends the thoughts of God except by the Spirit of God”
  • “Human wisdom” is contrasted with what is “taught by the Spirit”
  • Those who are not “spiritually discerned” are not able to “understand” the things of the “Spirit” of God
  • The only way we can “understand the mind of the Lord” is if we “have the mind of Christ.”

Paul identifies the “spiritual” person as one who discerns, and understands the mind of Christ. As we learn to think like Christ, we accept the things of the Spirit of God.

Secondly, we can see that for Paul, following the Spirit of God is a choice. We must choose to accept the “words” which are “taught by the Spirit” rather than accept the “words taught by human wisdom.” We can only accept the wisdom of the cross as we choose to accept the God-breathed words of God’s Spirit.

With this idea in mind, Paul’s statement a few pages later in chapter 12 makes a lot of sense. The only way a person can confess that “Jesus is Lord” is to learn to think like God. We do this when we choose to accept His words, and we choose to mimic the mind which we see in Christ on the cross. So long as we dismiss the suffering as foolishness we will never be able to confess that Jesus is Lord. As long as we think of suffering as a curse to be avoided, we will be led to the conclusion that Jesus is accursed.

Instead of retaliating against and defeating his enemies, Jesus conquered them by dying for them. We must learn to think about suffering and personal sacrifice the same way the Spirit of God does. Without that, we will never truly be able to confess that Jesus is Lord.

By This You Know the Spirit of God

John teaches that we should discern the Spirit of God by giving a very similar test.

Beloved, do not believe every spirit, but test the spirits to see whether they are from God, for many false prophets have gone out into the world. By this you know the Spirit of God: every spirit that confesses that Jesus Christ has come in the flesh is from God, and every spirit that does not confess Jesus is not from God. This is the spirit of the antichrist, which you heard was coming and now is in the world already.

1 John 4:1-3

The people to whom John was writing were in danger of being confused, or worse, completely led astray by false prophets. The problem with a false prophet is that you cannot tell a false one from a true one, at least not at first sight. They seem devout. They seem sincere. They seem reasonable. They claim to be speaking a word from God. But John knew that not every teacher claiming to be from God actually teaches God’s words.

How can we tell the difference? How do we discern if a teacher’s ideas accurately reflect the mind of God or not? How do we “test the spirits”?

According to John, you must listen to their teachings very closely. Such people are not likely to come out and claim they are “anti-Christ,” but gradually their fatal flaw will be revealed. That is, when push comes to shove, they do not really believe that “Jesus Christ has come in the flesh.” Just as Paul’s opponents could not wrap their minds around the wisdom of the cross, so John’s opponents could not accept that Jesus’s death on the cross was actual, real, fleshly suffering and death. They could not accept that letting your flesh suffer was actually good news.

When they talked about Jesus, it was not the real Jesus, but a version of Jesus they made up for themselves – one that didn’t actually require the self-denial of the flesh. The Spirit of God, however, recognizes and embraces Jesus’s fleshly incarnation. Even though false prophets may sound convincing at first, they ultimately oppose Jesus as they oppose his fleshly suffering. The “spirit” they teach is described as “anti-Christ.”

The Significance of Confession

To confess that Jesus, who came, suffered, and died, in the flesh, is now the “Lord” is one of the most basic statements of the Christian faith (Rom. 10:9; Phil. 2:11). This confession is not simply about uttering the right words about Jesus, but really buying into the truth that the crucified Jesus really is the Lord. It is not enough to simply confess that we like a whole lot of things about Jesus. We must confess the real Jesus. The crucified Jesus.

Accepting the real Jesus is not easy. It requires that we accept the particular words, the words of God (1 Thess. 1:5; 2:13). It requires that we accept the mind of Christ, who suffered on the cross. We can only confess that Jesus is Lord by the Spirit of God.

Christianity and Economics, Part 4: What Does It Profit?

For other parts of this series on Christianity and Economics, click here.

For what does it profit a man to gain the whole world and forfeit his soul?

Mark 8:36

The answer to Jesus’s question is obviously nothing. Even if a man were to gain the whole world, if he loses his soul in the process, he has made a terrible trade. In the end there is no profit at all. There is only tremendous loss.

What is “Profit”?

It’s not uncommon to hear “profit” treated like a bad thing. Just think about all the movies where the villain is some evil businessman that chooses “profits over people.” But profit is not a bad thing. The word “profit” simply means “benefit.”

Profit can certainly be measured in money if the “benefit” sought is money. If I buy something for $3, and I turn around and sell it for $5, I’ve earned a profit of $2. But in a more general sense, such as the sense in which Jesus used the word, profit simply refers to the reward for making good decisions. Giving away money to a charity can be “profitable” if advances a cause that I’m passionate about.

When discussing economics, however, “profit” often takes on the more precise meaning of monetary profit. When all goods can be traded for money, those goods develop market prices defined in amount of money. For this reason profit and loss can be discussed in terms of money. As long as revenue is greater than expenses, there is a profit. If expenses are greater than revenue, there is a loss.

But we must remember that as soon as we limit “profit” to a monetary value, we are no longer making a statement about an entrepreneur’s overall happiness, spiritual well-being, or subjective satisfaction. We are only talking about profit as it is appraised by other members of society, who ultimately determine monetary value through their demand for certain products in relation to their supply.

It’s easy to see how profit benefits an entrepreneur. But what often goes unrecognized is how profit benefits others. In order to explain how this is so we must first consider the problem of resource allocation.

The Complex Problem of Resource Allocation

God created the world with numerous resources, each of which could be used in any number of ways. For example, iron could be used to make all sorts of things – cars, refrigerators, medical devices, construction buildings, houses, power plants, tools, weapons, spoons, etc. The possibilities are endless. The same could be said for all natural resources.

With endless possibilities, mankind is faced with the complex task of deciding what resources, in what quantities, should be used in what ways. What needs are most important? How can we properly use the earth’s resources to help as many people as possible? Even if we are properly motivated impartial love for everyone, how can we know for certain that we are using the earth’s resources most effectively? How much iron should be used for refrigerators? For medical devices? For houses? For machines?

Even if we correctly prioritize the right needs, we still have a problem.  Perhaps we think housing is most important. Since resources are limited, at what point does our investment in housing begin to take away from the important need for medical devices? Or for tractors, which are used to harvest the food everyone needs? Even if our intentions are pure, it would be impossible to know for sure if we are using resources in the best possible way.

To illustrate the complexity of this problem, imagine a world where this problem is perfectly solved, where we know the optimal use of every resource. To simplify the illustration, imagine there are no changes to anyone’s subjective wants, changes in technology development, changes in the total population, or changes in resource availability. If this were the case, every person would do the same tasks every day. Producers would produce the same products, in the same quantity, every day. The prices of all consumer goods and factors of production would remain constant, as neither supply nor demand ever changed.

Consequently, there would be no uncertainty about the future. There would be no need for someone to risk combining resources in a new way. There would be no reason for a business owner to invest more in one line of production, or less in another, or for anyone to take any risks or seek greater profit. Everything would already be used towards its optimal end.

It’s not difficult to see why this can only be an imaginary scenario. James cautions us against assuming that things will continue in the future as they do today.

Come now, you who say, “Today or tomorrow we will go into such and such a town and spend a year there and trade and make a profit” – yet you do not know what tomorrow will bring.

James 4:13-14

People’s subjective values change all the time. Technology changes. Population levels change. Resource availability changes. There’s always change going on. Tomorrow will not be like today. The future is uncertain.

For this reason, all entrepreneurs have the task of taking risks. No mater how successful an investment may have been in the past, or may appear today, the future will be different. An entrepreneur has no guarantee of future profitability, because prices are always changing to meet changes in supply and demand.

How Profit and Loss Solves The Problem of Resource Allocation

Since the future is uncertain, entrepreneurs must engage in the task of forecasting future prices for the factors of production and finished products. They must forecast future profitability.

For example, one farmer may forecast that there will be a beef shortage, beef prices will increase, and raising cattle will be profitable. As a result, he may raise more cows, build bigger barns, and dedicate more land towards cattle farming. On the other hand, a competing farmer may forecast that cattle prices will fall, and his time will be better spent growing fresh produce, such as corn, beans, and garden vegetables. Whichever farmer’s forecast proves to be more correct will enjoy a greater profit.

Suppose the first farmer is correct. Due to a beef shortage, prices were high, and he was able to enjoy a good profit. The following year, the other farmer may look to the first farmer’s success as a signal that he should raise cattle as well. Because of the first farmer’s profits, the beef shortage will move quickly towards a solution as more and more farmers move into cattle farming. This will continue until cattle production reaches a level where cattle farming is no longer as profitable as the next best use of the  land. As entrepreneurs seek to invest where there will be the greatest return on their investment, production shifts to meet consumer demand.

Just as important as profit is loss. By suffering a loss, the unsuccessful entrepreneur may be forced to make changes. Suppose the cattle farmer was wrong. Instead of a shortage, there was a surplus of cattle. As a result, he was not able to bring in enough revenue to cover the cost of his investment. If the farmer continues suffer loss, he will eventually have to make a change. Perhaps he will shift away from cattle farming to something more in line with consumer demand. Or perhaps he will sell the farm to another entrepreneur who will use the land more efficiently and more profitably. For instance, if there is a housing shortage, there may be a great demand to develop the land as a new neighborhood.

Profit and loss is a wonderful thing, because it communicates to entrepreneurs the most effective uses of resources allowing them to produce what people want and need. Regardless of whether the farmer is profitable, or suffers a loss, by following profit and loss signals, resources will continually be reallocated to meet consumer demand.

This process plays itself out every day, in every industry, in various ways. All over the world, entrepreneurs continually adapt to changes in people’s preferences, changes in technology, and changes in resource availability. When consumers are free to choose which products, they spend their money on, they are able to influence where entrepreneurs invest, what products are produced, and in what quantities.

Who Benefits from Profit?

Obviously, the entrepreneur who correctly forecasts future economic conditions will enjoy the reward of greater profits. But now we can see how others benefit from profit as well.

Consumers enjoy the benefit of enjoying new and better products. Because of profit, these products will become increasingly available and affordable until the market is saturated to the point where increased production is no longer profitable. As entrepreneurs seek to maximize production of profitable products, they will need to invest in the labors of others.  So not only to consumers benefit, but workers are able to earn a greater living as well. Profit and loss are signals which everyone to a greater standard of living.

A successful entrepreneur is able to earn a profit, not by cheating people, but by meeting the desires of his customers. He does this by anticipating what products they are most willing to spend money on. As they seek to earn a profit, they continually examine whether the resources at their disposal are being used in the most efficient way to meet the needs of the greatest number of people.

Obstacles to Meeting The Needs of Others

This process only works when consumers are free to choose what products they spend money on, and entrepreneurs are free to make whatever changes are necessary to earn a greater profit.

When profits are villainized, so that a portion of profits are taken through taxation, this is bad for everyone. It is bad for entrepreneurs, who receive a decreased return for their investments. As profits decrease, entrepreneurs will decrease investment in production. This hurts workers, who receive less investment for their labors. It is bad for consumers, who get less of the product that they desire.

When people call for the government to bail out industries that aren’t profitable, they prevent those resources from being recombined in more beneficial ways. When politicians protect certain jobs they like, they fail to recognize the more profitable, yet unseen jobs they destroy (see Part 2). Instead of responding to losses by making necessary changes, they will continue to waste scarce resources for products that people don’t want enough to buy.

We have the responsibility to use the limited resources as efficiently as possible to meet the needs of others. Making sure entrepreneurs are free to seek a profit, while also bearing the risk of an uncertain future, is the best way to make sure that the earth’s resources are being used in the best possible way.