The scripture declares that, “my people perish for a lack of knowledge.” And while the knowledge being referred to is the bible and the commands of God, this verse is true for many forms of knowledge.
Take financial knowledge, if you were to be charged 20% simple interest on a $1,000 per year how much money would you be charged at the end of the year?
The answer: $200 of course, but did know that two thirds of Americans surveyed got that answer wrong?
You would probably think that Americans would have gained in financial literacy since the start of the Great Rescission of 2008 when everyone lost their retirement savings and other investments but sadly it is just not true.
All told, a new study estimated that nearly two-thirds of Americans couldn’t pass a basic financial literacy test, meaning they got fewer than four answers correct on a five-question quiz. Worse, the percentage of those who can pass the test has fallen consistently since the financial crisis to 37% last year, from 42% in 2009.
Understanding the role of debt, the nature of investment vehicles and even managing personal finances is not taught in school and most people will not try to pick up the skills as adults either.
Those under 30 are more prone to skip mortgage payments and few even know what happens to bond yields when interest rates go down, the yields go up. Worse, many minorities, especially those with only a high school degree or less regularly get payday loans with exorbitant interest rates.
What does this have to do with a biblical perspective on life?
The fear of God and an understanding of His word is the foundation of wisdom and knowledge, from that understanding people are interested in principles that build life and even a healthy wealth. The bible teaches about godly stewardship, saving and the destructive nature of bad debt.
The bible also declares the economic destruction of a nation that turns away from the Lord and His commandments, that nation will be a borrower instead of a lender.
The United States of America is still estimated to have a 60% or better chance of heading back into a recession and yet the average American could not face an economic crisis if it required pulling together $2,000 in a month.
This individual economic ignorance is what creates the national ignorance that believes greater debt is a good thing. Although, I believe Marxist progressives like President Obama know that too much debt will destroy the country and that is why Fabian socialist George Soros has spent $7 billion to put him and so many like-minded leaders in place.
Such ignorance among the American people allows these bad actors to do their damage and no one knows or cares because their eyes are glazing over and rolling into the back of their heads and so, “my people perish for a lack of knowledge.”
