Theology and Economy Update

For those of you who check in here now and then, you probably know that in 2009 a group of theological professors in North Carolina and South Carolina distributed a working paper, "Theological Reflection on the Economy."  It was an early step in a series of actions and campaigns through which faith communities have organized around economic justice in the current economic crisis.  Since that time, I have occasionally communicated with the group of professors about active campaigns, particularly the "10% Is Enough" work on usury pertaining to credit cards and other consumer interest.  This week, I sent a note to update them on the range of actions and campaigns in which North Carolina United Power has continued to organize in the past year and a half.  Here is an excerpt of the note I sent them.

Hey, folks,

A year and a half ago I was sending you lots of emails as we started work on a major organizing campaign dealing with economic justice issues.  As theological scholars and servants of the church, we recognize our responsibilities to follow Jesus in the task of serving the poor, offering ministry of relief, building ecclesial structures to reshape economic life in our neighborhoods, and seeking justice in the face of economic powers.  Thus, the theological reflection leading to the "Theological Reflection on the Economy" of 2009 was an exercise of our vocation which helped to provide grounding for faith-based people's movements which have gone many directions.  The document has been studied in churches, in minister's conferences, in seminary classes, and far beyond North and South Carolina. 

The paths of discipleship continue to open before us even now.  Let me highlight some of the work linked to our efforts of 2009.

1.  The "10% Is Enough" campaign in the Eastern US, London, and Berlin, has continued to bear fruit.  We did not convince banks to voluntarily cap credit card interest rates, nor did with convince Congress to cap consumer interest rates.  But we have built relationships with bank executives which are paying off in continued access and influence.  Moreover, leaders of the "10% Is Enough" campaign have met with Dr. Elizabeth Warren to help shape the Consumer Financial Protection Agency.  Caps on interest rates continue to be a lively topic, in part because of the strong work of MetroIAF, of which we have been a part.

2.  The "6% Is Enough" campaign to protect military families from predatory credit practices and foreclosure has been an overwhelming success.  This is a NC United Power campaign, and we have worked with Wachovia/Wells Fargo and Bank of America.  B of A held ongoing conversations with us for over a year.  Last summer they agreed to everything we were asking for, extending benefits beyond the legal requirements for nine months of protection from rising interest rates.  For several months, they were reluctant to admit publicly that they had changed their policies in response to negotiations with NCUP.  This month, in a surprise turn, CEO Brian Moynihan publicly thanked NCUP and Gerald Taylor for our work in this crucial area.  Our fellow signatory, Dan Rhodes, was present to meet personally with Moynihan, the first time he has met personally with members of our organization.

3.   The effort to bring justice to the foreclosure crisis has taken off in recent months, in part because of the attention that NC Attorney General Roy Cooper has given to foreclosure fraud as President of the National Association of Attorneys General.  For this work, NCUP (also going by the name IAF-SouthEast) has made partnership with People Improving Communities through Organizing (PICO), National People's Action (NPA-US), Alliance for a Just Society, and the Alliance of Californians for Community Empowerment (ACCE), all faith-based community organizing groups, stretching our organizing from the west coast to the east coast, from the Rocky Mountains to the midwest to the south.  We have met with key leaders, including Iowa AG Tom Miller and NC AG Roy Cooper, all the while keeping our efforts alive with Bank of America.  One summary of our proposals, "The Homeowner's Bottom Line," has gained significant interest, and most of its proposals remain on the table in the nationwide AG's investigation and potential settlement with the major banks to improve the foreclosure process.

4.  In conversation with a major funding organization (no funding yet) for theological education research, I have piloted a course at Shaw University Divinity School, "Pastoral Readiness for Economic Crises."  We covered financial literacy and financial freedom for pastors as well as a form of Christian formation for churches and their communities.  We looked at a wide range of theological sources on money, possessions, economics, and consumption from the earliest churches down to our times.  We looked at tools for churches to evaluate their relationships with banks that may or may not be serving poor communities.  We looked at models of community development, such as the Christian Community Development Association model of ecclesial politics of neighbor love.  Finally, we looked at faith-based community organizing.  With this trial run under our belt, I am hoping to work with some of you as partners in developing a proposal for adapting this sort of clergy training to other seminaries and to continuing education programs for current pastors.

5.  The predatory practices of payday lenders and car-title lenders will not die without a fight.  From Texas to North Carolina, from Mississippi to New Hampshire, strong lobbying efforts to open the door to astronomical interest rates on small dollar loans are alive and well in the state legislatures.  I've testified before legislative committees in Texas, mentioning you all and our work.  Just this past week, a bill was introduced in the NC legislature to reopen the door to usurious rates.  When there is the chance of ripping people off legally, there will always be people trying to do it.  Contact your legislator right away to stop the progress of HB 810.  South Carolina, having passed important reforms in 2009, seems not to have any pending legislation at this time.

On two matters I am seeking your response to moving forward with this work. 

First, . . . we are considering a clergy witness [at an upcoming event], with particular attention to dealing justly in the foreclosure crisis. 

The text of Micah 2:1-11 is directly relevant to this matter (not to ignore Isaiah 5:8-17).  The injustice of Samaria and Judah included coveting and seizing houses, ruining people financially (v2).  The powerful put people out of their homes (v9).  All the while they continue to practice the trappings of faith.  Predictably, they demand that anyone who might preach judgment against their greed should stop saying that stuff (v6).  The prophet says they only want a preacher who says, "Go on and get drunk.  Live it up!" (v11), while they "rise up against my people as an enemy" (v8). 

We hope we might gather 100 clergy and seminarians to speak a word of witness about the injustices of foreclosing on people whose financial security was destroyed by the greed, risks, and fraud of bankers, brokers, and insurers. . . . Details of when and where to meet will be forthcoming, depending on whether we believe we can gather an appropriate-sized group for witness.

Second, I will be trying to convene a meeting of some of you professors in late May.  If you would be interested in meeting for three or four hours to evaluate the course I put together and to brainstorm about expanding clergy training for economic life, let me know. . . .

For more information, see

News coverage of recent NCUP action:  here and here

Foreclosure Justice:  Homeowner's Bottom Line 

Broad Campaign for Financial Reforms:  Showdown in America

Against Usury:  10% Is Enough 

Military Families:  6% Is Enough 

Periodic updates on "earth as it is in heaven"

Economic Recovery for All 4: Faith Perspectives, Pt 1

I want to acknowledge Andrew Mbuvi, Amanda Mbuvi, Dan Rhodes, and Eric Greaux, who brought their insight into editing meetings at various steps of producing this document.

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009

III. Faith Perspectives on Responding to the Crisis

A. Introduction

Among the most cherished biblical texts in the Christian scriptures is Jesus' teaching to his disciples concerning prayer in Matthew 6. Verse 12 says, “And forgive us our debts, as we also have forgiven our debtors.” The same Greek word in this passage has historically been translated by both the English words “debts” and “trespasses.” The first translation affirms an economic obligation; the second implies a broader, metaphorical one. While both are theologically significant, the first has been underemphasized.

The background of this economic obligation appears in Deuteronomy 24:10-13. A lender must not take away a borrower’s essential items for survival as a pledge for a loan. A loan must serve the good of the whole community, both borrower and lender. When a family member or neighbor is in dire economic straits, biblical economics deems it wrong for a relative or neighbor to make a profit on their misfortune. If someone needs assistance, the command of the Torah affirmed by Jesus is that our hands ought always to be open to help the poor (Deut. 7 and John 12). The Sabbath Year and Jubilee Year laws insist that there is a limit to what a lender can demand from those who have fallen on hard times. This kind of mutuality is what God blesses and it is to be the material and economic shape of our earthly lives if they are to reflect existence as it is in heaven.

However, far from taking reasonable steps to assure the safety and security of borrowers in need, many banks (and hence, many businessmen and women of faith) currently are forcing people out on the street, refusing to share the impact of the loss of real estate values. In contrast to this scenario, Biblical economic principles demand shared risks and as shared opportunities for lenders and borrowers as well as limitation on lending so as to prevent usury.

Economic Recovery for All 2: Causes and Effects of the Current Crisis

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009

I. The Economic Crisis 2008-2009: People are losing their homes. Banks are closing. Businesses are failing. Workers are losing jobs. Families are uprooted.

A. Causes
1. Artificial inflation of housing prices created an illusion of wealth.

2. Greed and irresponsibility made financial institutions eager to sell “creative” and high-risk investment products.

3. Government deregulation of financial markets allowed risky experimentation, gigantic financial conglomerates, and diminished consumer protection.

4. The complexity of financial instruments which divided, bundled, and resold mortgages again and again, led to confusion about their real value and to lack of accountability for following best practices in making loans.

5. Households overextended their debt as consumer acquisitions outpaced income.

6. Overinflated housing prices, the justifiers of high levels of debt and consumption, finally crashed (the "housing bubble" burst).

B. Effects
1. Many households faced foreclosure and the loss of shelter.

a. People owed more than their houses were worth.

b. Many people lost jobs in the weak economy and could not keep up payments.

c. Many households faced increased interest rates from Adjustable-Rate Mortgages (ARMs).

2. Growing numbers of foreclosures led to a crisis of solvency in the financial institutions holding these mortgage-backed securities.

3. The crisis in the financial institutions led to a crash in the stock market.

4. The value of pensions, homes, and investments lost value dramatically, affecting retirees, institutions depending on endowments, homeowners, investors, and the economy in general.

Economic Recovery for All 1: Launching "10% Is Enough"

For the past few days, I have had trouble thinking about much else than an organizing campaign that launched on Wednesday. The local organizing group I am part of through Mt. Level Missionary Baptist Church, Durham CAN, joined with the other IAF affiliates in North Carolina, who go by the name NC UP (North Carolina United Power), to hold a press conference and action in Durham. On the same day, actions took place in the UK, in Boston, New York, Washington, and Chicago. The name of the joint campaign is "10% IS ENOUGH."

This campaign addresses a broad range of economic issues emerging in the current crisis. The first matter to be addressed is usury, the charging of exorbitant interest on loans, especially toward the poor. Our first target for action in North Carolina is the CEO of Bank of America. In the meantime, we are distributing a statement on the economy jointly released by over 20 professors from eight institutions of theological education in North Carolina. It will go to over 1000 churches and to banking leaders throughout our region, and beyond. I wrote about this statement earlier this spring when the project was just getting underway.

The statement is theological and ecumenical. It does not try to speak imperialistically as if Christians could speak for Jews, Muslims, and other people of faith. Yet our research showed us how much the Jewish and Muslim traditions share with Christianity, and how much we can learn from dialogue. NC UP also has examined a Muslim theological analysis of the issue of "riba," the Arabic word for the practice of usury. Moreover, we are aware that all of the theological schools in North Carolina are Protestant, and our statement (despite efforts to be broadly ecumenical) no doubt bears a Protestant perspective. Yet the Catholic church has outstanding resources for examining these economic issues in such documents and resources as the JustFaith program, the US Conference of Catholic Bishops' statement on "Economic Justice for All," and Benedict XVI's recent encyclical Caritas in Veritate. We look forward to continued mutual learning among these communities of faith as we pursue common ends of economic justice.

I will post the text of "Theological Reflection on the Economy: A Working Paper for North Carolina United Power from an Interchange Among Theological Educators, July 2009" in several pieces. I hope readers will take opportunity to examine the ways that we believe the tradition of the gospel speaks to our times.

As of July 22, the following 22 professors have endorsed the document. We are awaiting replies from others who are traveling or out of the office, and we expect the list to grow.

Endorsing Professors Arranged by School Affiliation

Campbell University Divinity School, Buies Creek, NC
Dr. Cameron H. Jorgenson, Assistant Professor of Christian Theology and Ethics

Duke Divinity School, Durham, NC
Dr. Kenneth L. Carder, Ruth W. and A. Morris Williams Professor of the Practice of Christian Ministry
Dr. J. Kameron Carter, Associate Professor in Theology and Black Church Studies
Dr. Curtis W. Freeman, Research Professor of Theology and Baptist Studies
Dr. Mary McClintock Fulkerson, Professor of Theology
Dr. Amy Laura Hall, Associate Professor of Christian Ethics
Dr. Willie J. Jennings, Associate Professor of Theology and Black Church Studies
Rev. Daniel P. Rhodes, Preceptor in Theological Studies
Dr. William C. Turner, Jr., Associate Professor of the Practice of Homiletics

Hood Theological Seminary, Salisbury, NC
Dr. Reginald D. Broadnax, Dean of Academic Affairs
Dr. Samuel V. Dansokho, Associate Professor of Religion and Society

Lutheran Theological Southern Seminary, Columbia, SC
Dr. Daniel M. Bell, Associate Professor of Theological Ethics
Dr. James R. Thomas, Associate Professor of Church and Ministry and Director of African American Studies


School for Conversion, Durham, NC
Prof. Jonathan Wilson-Hartgrove, Director

Shaw University Divinity School, Raleigh, NC
Dr. James P. Ashmore, Associate Professor of Old Testament
Dr. Mikael N. Broadway, Associate Professor of Theology and Ethics
Dr. Dumas A. Harshaw, Jr., Adjunct Professor of Theology and Ethics
Dr. Cheryl A. Kirk-Duggan, Professor of Theology, Ethics, and Women’s Studies
Dr. Andrew M. Mbuvi, Associate Professor of Biblical Studies and Hermeneutics
Dr. Chanequa Walker-Barnes, Assistant Professor of Pastoral Care and Counseling

Union Theological Seminary-Presbyterian School of Christian Education, Charlotte, NC
Dr. Rodney S. Sadler, Jr., Associate Professor of Bible

Wake Forest University School of Divinity, Winston-Salem, NC
Dr. Douglas M. Bailey, Assistant Professor of Urban Ministry
Dr. Stephen B. Boyd, J. Allen Easley Professor of Religion and Chair Department of Religion
Dr. Bill J. Leonard, Dean and Professor of Church History

Winston Salem State University, Winston-Salem, NC, and Gordon-Conwell Theological Seminary (Adjunct), Charlotte, NC
Dr. Eric J. Greaux, Sr., Assistant Professor of Religion, and Adjunct Professor of Greek