The Prodigal Son
“The son said unto him, Father, I have sinned against heaven, and in thy sight: I am no more worthy to be called thy son.” (Luke 15: 1-3, 11-32
Warren Buffett, the chairman of Berkshire Hathaway, and one of the world’s wealthiest men, is not leaving his multi-billion dollar fortune to his three children, but, rather, gifting it to a charitable foundation. To be sure, his children are well off, but Buffett does not want to deny them the opportunity to “carve out their own place in this world.”
The dangers of enormous wealth are readily apparent in the parable of The Prodigal Son. The younger boy couldn’t wait to get his hands on his inheritance and cajoled his father into dividing his estate between him and his older brother. But once he got the money, the younger son began to act irresponsibly, squandering his fortune on an extravagant lifestyle. He did not come to his senses until forced to do so.
Warren Buffett, the chairman of Berkshire Hathaway, and one of the world’s wealthiest men, is not leaving his multi-billion dollar fortune to his three children, but, rather, gifting it to a charitable foundation. To be sure, his children are well off, but Buffett does not want to deny them the opportunity to “carve out their own place in this world.”
The dangers of enormous wealth are readily apparent in the parable of The Prodigal Son. The younger boy couldn’t wait to get his hands on his inheritance and cajoled his father into dividing his estate between him and his older brother. But once he got the money, the younger son began to act irresponsibly, squandering his fortune on an extravagant lifestyle. He did not come to his senses until forced to do so.
“The son said unto him, Father, I have sinned against heaven, and in thy sight: I am no more worthy to be called thy son.” (Luke 15: 1-3, 11-32
Warren Buffett, the chairman of Berkshire Hathaway, and one of the world’s wealthiest men, is not leaving his multi-billion dollar fortune to his three children, but, rather, gifting it to a charitable foundation. To be sure, his children are well off, but Buffett does not want to deny them the opportunity to “carve out their own place in this world.”
The dangers of enormous wealth are readily apparent in the parable of The Prodigal Son. The younger boy couldn’t wait to get his hands on his inheritance and cajoled his father into dividing his estate between him and his older brother. But once he got the money, the younger son began to act irresponsibly, squandering his fortune on an extravagant lifestyle. He did not come to his senses until forced to do so.
Some have labeled America as a “Prodigal Nation” because of the way we have squandered our good fortune. But, if that is so, there are signs that we, too, are beginning to come to our senses. We are starting to act responsibly.
In the third quarter of 2008, U.S. household debt declined for the first time in 57 years. In 2009, economists expect the rate of personal savings to hit 3% to 5%, the sharpest uptick since World War II. Consumer incomes, after taxes and adjusted for inflation, are up for five straight months. And housing hasn’t been this affordable in years.
In the long run, those are very positive signs but the sharp drop in consumer spending actually troubles some economists. They believe we have to spend our way out of this recession. They point to the empty store fronts and growing unemployment rolls as signs of what happens when spending suddenly decreases. It’s called the “Pardox of Thrift” - - one family’s prudence becomes another family’s pain.
But America’s decades-long spending spree could not continue indefinitely. We had been living beyond our means. Borrowing more money to continue our prodigal spending would be like trying to douse a fire with gasoline. Some of us would get burned
No one can say for certain how long or how steep this recession will be. There are just two many unknowns. But some historical perspective may help when viewing today’s news bulletins of economic doom and gloom. We know that the nation’s Gross Domestic Product has declined 2.25% in the average recession with some sectors of the economy being much harder hit than others. We also know that the average recession has lasted ten months and that the two longest recessions to-date have lasted 16 months. There is a high probability that this recession will be steeper and longer, but as in the past, we will come out of it.
Going forward, we have to tighten our belts and save up for the things we want. Thrift is a form of abstinence. And to be practical about it, we have to borrow responsibly in order for the recovery to be sustainable.
Meanwhile, the story of The Prodigal Son has something to tell us about the way forward. When the older, more responsible son objects to the way his father treats the wastrel, he could be speaking for all those prudent people who now object to a government bail out for spendthrifts. Their complaint is a legitimate one. They’re going to be taxed to pay for someone else’s extravagant lifestyle.
But therein lies another “Paradox of Thrift.” We are all called to be our brothers keepers. We are all called to share what we have acquired. The father actually runs to meet his prodigal son and embraces him. He urges his older son to set aside his anger and join in the celebration. We never learn what the older son does. Jesus leaves it up to us to decide whether he acted responsibly. But, in thinking about the ending, there is one telling point to consider: neither son was “entitled” to receive any inheritance. The father could have done as Warren Buffett has done. Everything the sons received was a gift.
Warren Buffett, the chairman of Berkshire Hathaway, and one of the world’s wealthiest men, is not leaving his multi-billion dollar fortune to his three children, but, rather, gifting it to a charitable foundation. To be sure, his children are well off, but Buffett does not want to deny them the opportunity to “carve out their own place in this world.”
The dangers of enormous wealth are readily apparent in the parable of The Prodigal Son. The younger boy couldn’t wait to get his hands on his inheritance and cajoled his father into dividing his estate between him and his older brother. But once he got the money, the younger son began to act irresponsibly, squandering his fortune on an extravagant lifestyle. He did not come to his senses until forced to do so.
Some have labeled America as a “Prodigal Nation” because of the way we have squandered our good fortune. But, if that is so, there are signs that we, too, are beginning to come to our senses. We are starting to act responsibly.
In the third quarter of 2008, U.S. household debt declined for the first time in 57 years. In 2009, economists expect the rate of personal savings to hit 3% to 5%, the sharpest uptick since World War II. Consumer incomes, after taxes and adjusted for inflation, are up for five straight months. And housing hasn’t been this affordable in years.
In the long run, those are very positive signs but the sharp drop in consumer spending actually troubles some economists. They believe we have to spend our way out of this recession. They point to the empty store fronts and growing unemployment rolls as signs of what happens when spending suddenly decreases. It’s called the “Pardox of Thrift” - - one family’s prudence becomes another family’s pain.
But America’s decades-long spending spree could not continue indefinitely. We had been living beyond our means. Borrowing more money to continue our prodigal spending would be like trying to douse a fire with gasoline. Some of us would get burned
No one can say for certain how long or how steep this recession will be. There are just two many unknowns. But some historical perspective may help when viewing today’s news bulletins of economic doom and gloom. We know that the nation’s Gross Domestic Product has declined 2.25% in the average recession with some sectors of the economy being much harder hit than others. We also know that the average recession has lasted ten months and that the two longest recessions to-date have lasted 16 months. There is a high probability that this recession will be steeper and longer, but as in the past, we will come out of it.
Going forward, we have to tighten our belts and save up for the things we want. Thrift is a form of abstinence. And to be practical about it, we have to borrow responsibly in order for the recovery to be sustainable.
Meanwhile, the story of The Prodigal Son has something to tell us about the way forward. When the older, more responsible son objects to the way his father treats the wastrel, he could be speaking for all those prudent people who now object to a government bail out for spendthrifts. Their complaint is a legitimate one. They’re going to be taxed to pay for someone else’s extravagant lifestyle.
But therein lies another “Paradox of Thrift.” We are all called to be our brothers keepers. We are all called to share what we have acquired. The father actually runs to meet his prodigal son and embraces him. He urges his older son to set aside his anger and join in the celebration. We never learn what the older son does. Jesus leaves it up to us to decide whether he acted responsibly. But, in thinking about the ending, there is one telling point to consider: neither son was “entitled” to receive any inheritance. The father could have done as Warren Buffett has done. Everything the sons received was a gift.
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