Economics at the Jesus Creed: Michael Kruse 5

Consider parents who raise their daughter to brush her teeth, to eat well balanced meals, to look both ways before crossing a street, and to do her homework. These parents are teaching their daughter to have regard for her "own interest and advantage." Are they teaching her to be selfish ... to act with disregard for others? Of course not. It is the "disregard for others" phrase to which we take exception.

When economists speak of self-interest they are referring to purposive behavior. Each of us has a perception of truth and reality. Each of has a set of values. Each action we take is a statement of preference for that action versus others we might have taken. We take each action expecting to realize particular outcomes that are in accord with our perceptions and values. Therefore, each action is self-interested ... an attempt to accomplish outcomes based on our personal perceptions and values. Any attempt to act contrary to our perception and values is merely to suggest that there is another set of perceptions or values that takes precedence over what we thought motivated us, otherwise we would not choose the "contrary" action. If we are not acting according to self-interest, then we are either automatons under the direction of an intelligent being or our actions are the product of non-intelligent forces beyond our control.

In some theological circles, particularly pietistic traditions, self-interest is framed as the antithesis of being other-interested or God-interested. One set of interests succeeds only at the expense of the other. Yet Scripture teaches the transformation of self-interest, not its eradication. My self-interest, other's interests, and God's interest all become one. We will and desire the same things but each act from our own contexts. The interaction of these interests ceases to be win-lose proposition and becomes a win-win-win proposition with a multiplicative effect for good.

Jesus repeatedly appealed to self-interest. Here are just three instances from Matthew's gospel: Matt 7:1-2

"1 Do not judge, so that you may not be judged. 2 For with the judgment you make you will be judged, and the measure you give will be the measure you get."

It is in our self-interest not to judge because we will get whatever treatment we dish out.

Matt 16:25-26

"25 For those who want to save their life will lose it, and those who lose their life for my sake will find it. 26 For what will it profit them if they gain the whole world but forfeit their life? Or what will they give in return for their life?"

It is in our self-interest not to get caught up in worldly status but rather to find our life in Jesus.

Matt 19:21

"21 Jesus said to him, 'If you wish to be perfect, go, sell your possessions, and give the money to the poor, and you will have treasure in heaven; then come, follow me.'"

It is in our self-interest to give up everything for the treasures in heaven.

Martin Luther King, Jr., preached a sermon on the story from Mark 10 where James and John ask for the highest positions in the coming Kingdom (The Drum Major Instinct). King notes Jesus' remarkable response. He doesn't rebuke their ambition. Instead, he says, "You want the highest positions? Go for it! They aren't mine to give but here is how you get them. You excel at putting everyone else ahead of yourself. Now get out there in front and lead the band." Jesus appealed to their self-interest but turned their perception of truth and values upside down and inside out.

Returning to economics, Adam Smith wrote about self-interest (or self-love) as only one of several sentiments that are a part of life. Self-interest was joined with other sentiments like compassion, generosity, and benevolence in his combined works of The Theory of Moral Sentiments and The Wealth of nations. Benevolence was seen by Smith as the highest of all virtues. My point is not to defend Smith at all points but to make clear that his theory was not an exaltation of selfishness. At the writing of the U. S. Constitution, the word "liberty" simply meant not being physically imprisoned. Two hundred years later liberty has come to mean so much more. Similarly, while "self-interest" had a relatively narrow meaning regarding economic transactions it now has a much broader socio-psychological meaning. When economists use the term, most often they are referring to perceptions and values used in ranking options and making choices ... purposive behavior.

Have there been economists that have said selfishness and self-actualization should be our guide? Yes. Over the last half century, many of those who have been influenced by social thinkers like Ayn Rand have championed such thinking. Earlier examples exist as well. But to say that some economists have wanted this mindset to be normative is a far cry from saying that it is essential to market economics. It is not.

It is possible to have a market economy where people are other-centered, but other-centeredness alone will not solve macroeconomic problems. We are confronted with the information problems raised in our earlier discussions. While I may know the needs of the few people I have ongoing daily relationships with, how can I (or any other person or entity) know which actions are in the "common good" of three hundred million other of my national citizens or the billions with whom I share the planet? We saw earlier that markets are dynamic feedback loops of information and incentives, coordinating daily economic decisions. They are both imperfect and indispensable. We will have more to say about this later.

Today, I merely want to distinguish "self-interest" in economic terms as purposive behavior, not as a synonym for selfishness. I've written about this topic enough times to know that some are going to find this characterization of self-interest ... and particularly the assertion that Jesus appealed to our self-interest ... disturbing. 

So a couple of questions. Am I off the mark? Why? If not, are there better ways to describe these dynamics without involving a value-laden word like self-interest? What implications are there for missional Christians?