Failure to follow God’s economic laws results in disaster for individuals, families, corporations, and nations. Those who make daily economic decisions in running a business and keeping track of household expenses understand this. If a family fails to pay its bills or writes bad checks to postpone bill collection, it suffers the consequences of having creditors call demanding payment. What is true of the individual is also true of the nation. The effects of poor money management are not readily seen on the national level, however. While a “reminder” notice may be sent in thirty days to a family because of an overdue account, it may take decades before a national government gets its overdue notice in the form of inflation and/or depression.
If families or nations fail to honor the word of God as the standard for economics, they must evaluate their economic decisions based on practical results. Economic policy becomes pragmatic: Let’s try this policy to see if it will work. The problem with developing an economic theory based on pragmatism is that the consequences are often known too late. The gamble can be very costly. For example, the great German inflation was effective in the short run. During the Weimar Republic, German farmers benefitted by being able to pay off their debts with the lower valued marks. The industrialists who borrowed to expand or replace their plant equipment paid off their debts with ease.