Using Mathematics to Model the Economics found in the Bible featuring Rowlando Morgan

Introduction:

Economics and religion might seem like disparate realms of human existence, but throughout history, they have been deeply intertwined. One of the most influential religious texts in Western civilization, the Bible, has played a significant role in shaping economic thought and behaviour. From ancient times to modern capitalism, biblical principles have influenced economic systems, policies, and individual attitudes towards wealth, poverty, and social justice. In this article, we'll explore the profound impact of the Bible on economics and its enduring relevance in contemporary society.

The Bible, revered as one of the most important spiritual guides, also harbours a treasure trove of financial, economic and mathematical wisdom. Its narratives, parables, and teachings contain valuable insights into economic principles and human behaviour. While traditionally approached from a theological or ethical standpoint, economists and mathematicians have begun to explore the applicability of mathematical models to understand and elucidate the economic phenomena described in the Bible. In this article, we delve into the fascinating intersection of mathematics and biblical economics, exploring how quantitative analysis can unveil the economic wisdom embedded in sacred texts.

Parables as Mathematical Models

Jesus Christ, a central figure in the New Testament, often employed parables to convey profound spiritual truths. However, these parables also offer rich material for mathematical modelling of economic concepts. For instance, the Parable of the Talents (Matthew 25:14-30) presents a scenario of investment and stewardship, ripe for mathematical interpretation. Economists can use mathematical models to analyze optimal investment strategies, risk management, and the dynamics of capital accumulation depicted in the parable.

Economic Justice and Distributional Equity

The Bible advocates for economic justice and equitable distribution of resources. Mathematical models can be employed to analyze economic systems and policies that promote fairness and alleviate poverty, echoing biblical principles of social welfare. For instance, mathematical techniques like optimization and simulation can evaluate the effectiveness of redistributive taxation or welfare programs in achieving equitable outcomes, as envisioned in biblical teachings on caring for the poor and vulnerable.

Network Theory and Social Interactions:

Social networks play a crucial role in economic interactions and information diffusion. The Bible portrays intricate networks of relationships and social dynamics, offering insights into the interconnectedness of economic agents. Applying network theory, a mathematical framework for studying complex systems of interconnected elements, economists can analyze patterns of social influence, resource flows, and the spread of economic ideas and behaviors depicted in biblical narratives.

Time Series Analysis and Prophetic Economics:

Biblical prophecies often contain elements of economic forecasting and predictive analysis. Employing time series analysis techniques, economists can examine patterns in historical data and explore the predictive power of biblical prophecies regarding economic phenomena such as market cycles, price fluctuations, and socio-economic trends. While interpretations may vary, mathematical modelling offers a systematic approach to studying the temporal dynamics of economic processes described in prophetic texts.

Through my Tiktok page - medwithhari I have gotten the opportunity to talk to all types of people throughout the world with outstanding qualifications from leading institutes. I got to talk to Rowlando Morgan a Cambridge educated economist who specialises in Biblical economics and debt he will discuss his contributions.

Words from Rowlando Morgan

So a bit about me. I am an economist by profession and have spent a lot of time working within the UK government before more recently joining an economic consultancy. I have developed a unique theory that uses geometry to develop a model of the economics embodied within the bible. I first thought about doing this prior to going to Cambridge University to study a BA in Economics. I became aware of the vast amounts of economic related content within the bible and became determined to explore this further. I realised that a particular area of biblical economics that was not, at least at around the turn of the century, explored well was debt. Indeed, debt forgiveness lies at the heart of the Christian religion. At the time of my application to study at Cambridge, debt was also a theme in the global economy, with Argentina on the brink of default. When I went to university I took the opportunity to explore financial crises and I also wrote a dissertation about debt. I went on to work at the Bank of England in 2007, just at the time that a global credit crunch was taking financial markets by storm. There I continued to think about what a biblical economic framework might entail. In 2009 I moved on to work at HM Treasury – the UK’s finance ministry. It was there that I had time to think about the economics of debt more deeply, and think about what a mathematical modelling of debt at the macroeconomic scale might entail. I drew upon my studies in economic history, in particular the interwar period – from 1918-1939 – to apply lessons related to Germany’s own experience with a debt, which was the need to repay reparations following World War 1.

The key insight I had was that the debt and credit positions of all the respective debtors and creditors in the world must move in equal and opposite directions at all times. This and similar thoughts led me to the idea of using trigonometric functions – sines and cosines – to model debt. These are circular functions; related to the circle and Pythagoras’ theorem. In the years that followed I then made efforts to further develop these ideas. It took me until 2011 to bring my ideas together and have my ‘Eureka’ moment.

So what’s the my big idea all about? Well, I found a way to model debt in a way that is directly related it to the circle. And to my surprise, I figured out a way of relating this to the economic content embodied within the bible. The biblical economic content I focused on were scriptures in the old testament. The first is found in Exodus 20 and says `Remember the sabbath day, to keep it holy. Six days shalt thou labour, and do all thy work: But the seventh day is the sabbath of the LORD thy God: in it thou shalt not do any work,...'. This commandment describes the Sabbath as an institution that not only regulates religious but also economic activity. It is the key institution that has led to a seven-day week with a weekend of generally two days, but with these being derived from the concept of one day of rest.  Indeed, the root-meaning of the word Sabbath is ``to cease'':  it is a day of rest on which there was to be no work within the ancient Israelite society. The second relevant law is found in the fifteenth chapter of Deuteronomy it reads (verses 1 and 2): “At the end of every seven years you must cancel debts. This is ow it is to be done: Every creditor shall cancel any loan they have made to a fellow Israelite. They shall not require payment from anyone among their own people, because the Lord’s time for cancelling debts has been proclaimed.”

This verse dictates that the debt cycle was to occur over seven years: lending and borrowing would occur over seven years but then stop at the end of the seventh year immediately before beginning again. Concurrently, in this time period, six years of work (of buying and selling) will have occurred if the observance the Sabbath command was simultaneously practised. This implies a ratio of six-sevenths between two activities: that of buying and selling (and associated productive effort) and lending and borrowing.

It is this ratio that I find, approximately, in a model I build up using geometry. The model also in an important sense makes economics more scientific. By that I mean, I focus on an aspect of economics we can all agree is true. I argue that we know that for every unit of income there must be a unit of expenditure. Likewise, for every unit of lending there must be a unit of borrowing. These are ‘truisms’ – they must be true by definition. I go from that starting point to model debt, essentially using Pythagoras’ theorem. So what’s wrong with standard economics. The main issue is that it’s built on a philosophy called ‘Utilitarianism’. This philosophy asserts a thing we call ‘utility’ which we then assume economic agents try to ‘maximise’ through their choices. But no-one can see ‘utility’ and we cannot be sure it’s a real thing.

The next step is to spread the word. I have a currently got a couple of papers written up on the Association for Christian Economics UK website. I have also shared my work on social media. However, I have yet to have a peer reviewed paper published, and that would be a good next step to take in the process of sharing my ideas and making them that much more robust and acceptable to the masses.