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TechnoratiThe average American today is bombarded by a large number of institutions (and messages) that actually discourage savings and promote impulsive, often foolish, spending, contributing to the highest level of consumer debt in history.
As to the scale of this problem, “there are more than a billion [credit] cards in the hands of U.S. consumers” (Ibid., emphasis mine). Between 1989 and 2001, “credit card debt almost tripled, from $238 billion to $692 billion” with much of that coming from young, unemployed college students, “56 percent” of whom “have four or more cards” (Ibid.). Opportunistic payday lenders provide “fast cash” to more than 15 million lower income wage-earners each month at the equivalent annual percentage rate of 300 to 400 percent.
Since 1973, there has been a 500 percent increase in per capita spending on state lotteries—taking in more than $57 billion in 2006. Studies demonstrate that low-income households spend the most, as a percentage of their total income (approximately $645 annually), on lottery tickets. Dr. Whitehead reported that the Tax Foundation estimated “that if that household were to invest the same amount in stocks every year for forty years, it could expect to have $87,191 [in 2006 dollars]” (Ibid.).
A major factor in the proliferation of these modern day moneychangers was the deregulation of interest rates—a violation of consciously Christian financial principles. In 1965, every state had usury limits on consumer loans. Since then, “seven states have completely deregulated interest rates…and at least 35 states allow lenders to charge the equivalent of more than 300 percent APR on a typical payday loan.” In short, “state usury limits have increased from 36 percent in 1965 to 521 percent in 2007” (Ibid.). With such extraordinary profits available (and now legal), everyone from payday lenders to major credit card companies saw the potential in supplanting the virtue of thrift with the promise of instant gratification through debt. And many Americans, who are equally culpable, bought it hook, line, and sinker! “Borrow today what you do not have to buy what you cannot afford” became the mantra of the consumer culture replacing the old adage, “neither a borrower nor a lender be.”
Here again, the church has an opportunity to bear witness to life under the reign of God by living free from bondage to excessive consumption and consumer debt. Tragically, too many Christians are driven by the same idolatry that propels so many Americans into excessive consumption and debt.
S. Michael Craven is the President of the Center for Christ & Culture, a ministry of discipleship and Church renewal that works to equip Christians with an intelligent, thoroughly Christian and missional approach to culture. For more information on the Center for Christ & Culture, additional resources, and other works by S. Michael Craven visit: www.battlefortruth.org
