America exerts a major influence on global financial health. And our current unrestrained printing of new dollars will doubtless have repercussions around the world.
I’m no economist myself, but there seems to be growing concern among professionals of that persuasion that we’re headed for über-inflation. And, if our dollar drops in value the way some people predict . . . well, it seems many nations may be in for the proverbial “rough time of it.”
Shortly after WWII, C.S. Lewis commiserated with an American friend about the effects of inflation on the price of commodities.
I take it that your [comment] indicates not a saturation of the home market, but a shortage of purchasing power due to inflation? That is the situation with which we are faced at the moment; I see that the clothing concessions for instance have not resulted in an increased sale of home market goods.
The stuff is in the shops, but people can’t buy. Though with us the problem is complicated by the inferior quality of so much of the stuff on the home market.
Years later, in 1951, Lewis could still write “war and inflation are still the background of all ordinary conversation over here.”
. . . to which has just been added the railway jam; our new railway organization has succeeded, so far as I can understand, in blocking every goods depot in the country. The trades people are grumbling, and the effect is just becoming apparent to the consumer.
When I was in high school, collecting coins from around the world, I purchased samples of German currency when hyperinflation was destroying their already-shattered economy. These bills were called notgeld, which means “emergency money.”
So much of the worthless paper was printed that you can still purchase genuine pieces for reasonable prices. Many of them are quite interesting, and you can see a variety of examples online.
Some are quite lovely, like this 1 Mark note printed in Prien am Chiemsee in 1920. Lovely indeed, but virtually worthless in terms of its initial value.
Postwar Germany offers a cautionary example. Similarly, Robert Mugabe’s destruction of Zimbabwe after he gained dictatorial powers shows the danger. You can read about the unbelievable crisis in a variety of places, including this thorough article published in a European economics journal.
You might have thought that the picture at the top of this column was a joke. After all, what country prints a one million dollar bill? Well, Zimbabwe did!
In fact, with an inflation rate of 231,000,000% they ended up printing off one hundred billion dollar bills. That’s not a typo. $100,000,000,000 – you can see one in this Guardian article.
And we won’t even consider the one hundred trillion dollar bill.
Inflation Aside, Is Money Moral?
That’s a false question of course. Morality cannot be attributed to objects. After all, it is not money itself that is “the root of all evil.” It is a fallen human being’s love of possessing wealth that may lead “into ruin and destruction.”
C.S. Lewis expands on this truth, and wisely points out that the danger of idolatry and false security extends beyond money itself.
Christ said ‘Blessed are the poor’ and ‘How hard it is for the rich to enter the Kingdom,’ and no doubt He primarily meant the economically rich and economically poor. But do not His words also apply to another kind of riches and poverty?
One of the dangers of having a lot of money is that you may be quite satisfied with the kinds of happiness money can give and so fail to realise your need for God. If everything seems to come simply by signing cheques, you may forget that you are at every moment totally dependent on God.
Now quite plainly, natural gifts carry with them a similar danger. If you have sound nerves and intelligence and health and popularity and a good upbringing, you are likely to be quite satisfied with your character as it is. ‘Why drag God into it?’ you may ask (Mere Christianity).
C.S. Lewis powerfully portrays this peril in his fiction. In Voyage of the Dawn Treader, a boy named Eustace has surrendered to his lust for treasure and the corruption of his soul becomes quite visible.
He had turned into a dragon while he was asleep. Sleeping on a dragon’s hoard with greedy, dragonish thoughts in his heart, he had become a dragon himself.
You can include me among those who like money. First, for its function – allowing free commerce, in contrast to crippled systems of barter. And, for its intrinsic curiosities – I am, after all, a numismatist.
Still, appreciating the existence of money is a far cry from echoing John D. Rockefeller who said “I believe it is a religious duty to get all the money you can.” (To be fair to the robber baron, his full quote was “I believe it is a religious duty to get all the money you can, fairly and honestly; to keep all you can, and to give away all you can.”)
To gain riches honestly is, of course, not objectionable. But as to reconciling the keeping and the giving away . . . Rockefeller’s logic eludes me.
As I noted above, I’m no economist. C.S. Lewis declared the very same statement in Mere Christianity as he explored the concept of usury (loaning money with significant interest charges). His thoughts on the matter speak to the entire subject we have been discussing.
As for the entire section you can find Lewis’ position at an interesting site called Generosity Monk, which “is committed to serving the Church by providing spiritual and strategic guidance to help people understand and practice biblical generosity.”