Principle Perspective with Mike Winther Mike Winther

This episode of the series begins by discussing the 2007 and 2008 housing bubble, a topic that remains highly relevant today. During that period, prices were skyrocketing and interest rates were low, leading people to refinance and sink deeper into debt. When the collapse occurred, proponents of big government blamed the free market and called for increased regulation.

Mike dives into the causes of this housing bubble, highlighting the manipulation of interest rates, the pricing of money, and the economic stimulation by the Federal Reserve. He discusses how low interest rates and the selling of loan bundles led to the ultimate collapse, emphasizing that government control over the economy tends to exaggerate normal economic fluctuations. Mike explains why Keynesian economics exacerbates inflationary periods.

The episode also explores the pitfalls of government banking systems and discusses why these issues should be of concern from a Christian perspective. Mike further analyzes economic principles such as supply and demand before shifting focus to healthcare. He describes how government actions increased demand and how third-party payers escalated spending. We also learn Mike’s solutions to these problems, consistently linking back to a biblical viewpoint.

You’ll Learn:
[00:50] In 2007 and 2008, the price of real estate was escalating rapidly. Interest rates were low and people were refinancing and taking cash out.
[01:44] Whenever there's an economic problem, there's a battle between those who want big government and those who want small government.
[02:01] Dropping interest rates and more people can buy. Rates kept dropping. They were manipulating interest rates or the price of money.
[04:58] In free markets, interest rates go up and down and draw money in and out of banks. It balances the economy.
[08:41] Why were lenders making bad lending decisions? An example. 
[14:37] Why 0% interest rates contribute to bad loans.
[16:54] When rates drop, people buy more houses. When people stop buying, the economy begins to slow.
[17:57] When people with high debt were unable to pay their loans, it began a chain reaction.
[18:34] Keynesian economics makes the trenches deeper and the inflationary periods worse.
[20:37] Mike talks about government required reserve ratios for banks and the government taking over banks. 
[23:33] Mike breaks down supply and demand and how prices work.
[24:52] If healthcare prices are going up, demand is exceeding supply.
[26:05] How the government limits the supply of doctors in America.
[28:42] We have a scarcity of doctors, and they are working more hours.
[29:30] Medicaid passed in 1967 or 1968. Demand went up and prices increased. Medicare was also passed.
[32:20] When there's a third party payer, we're never as cautious about how we spend the money.
[33:55] Insurance only makes sense, when we insure the unlikely.
[36:34] The number of people hired for ObamaCare was greater than the number of doctors and nurses in America.
[37:33] We need more people to buy their own insurance. 
[40:21] Mike shares another example.
 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)
Biblical Principles of Government (4a)
Biblical Principles of Government (4b)
Biblical Principles of Government (5a)
Biblical Principles of Government (5b)
Biblical Principles of Government (6a)

Mike Winther kicks off Section 6a of "Biblical Principles of Government" with a poignant quote from Thomas Jefferson: "It's strangely absurd to suppose that a million human beings collected together are not under the same moral laws which bind each of them separately." This assertion underlines the principle of The Collective Application of God's Commands.

Mike dives into the concepts of individualism and collectivism, explaining individualism as dealing with individuals, whereas collectivism addresses the group as a whole. He highlights the role of government as a collective entity that represents and governs all citizens.

In searching for principles to guide government, he points out that Scripture offers clear guidelines on what government should and should not do. He also asserts that God's commands and guidance to individuals also apply to groups, emphasizing that what applies to the individual should also apply to the collective, unless scripture specifies otherwise.

You’ll Learn:
[00:34] "It's strangely absurd to suppose that a million human beings collected together are not under the same moral laws which bind each of them separately." Thomas Jefferson
[01:06] The principal of The Collective Application of God's Commands.
[01:28] Individualism is when we deal with individuals. Collectivism is dealing with the whole.
[01:39] Government is a collective that represents all of the citizens and rules all of the citizens.
[01:48] We often look for principles to guide the government. There are principles in Scripture that give guidelines for what the government should and should not do.
[01:57] God's commands and guidance to us as individuals also applies to us as groups. We can assert what applies to the individual applies to the collective unless scripture specifically states otherwise.
[02:34] Capital punishment is given as an authority to civil government.
[03:10] An example of individual versus collective.
[08:48] Socialism places limits on the ownership of private property.
[09:19] We need to understand the idea of economic loss. The more goods and services we produce will result in the price going down.
[14:02] We produce for a number of reasons including its built into our DNA and it mimics God. We can help others by producing more and giving them the fruit of our labor.
[20:25] Contrasting the loyalty of serving your fellow man or being given things by the government.
[23:49] The philosophical schools of economics: The classical school of economics includes teachings by Adam Smith. A partial free market scenario.
[25:29] The Keynesian School of Economics from John Maynard Keynes. The government needs to manage and control the economy. Stimulation and slowing down an economy and having a central bank came from Keynes. 
[26:46] The Neoclassical School of Economics is kind of between the other two.
[26:58] The Chicago School of Economics comes from the University of Chicago. The father of this school is Milton Friedman. He says government intervention is damaging the economy and moves closer to a free market model.
[27:41] The Austrian School of Economics. Pure free market economics.
[30:00] Mike talks about environmental issues and economics.
[39:41] Using government policy to choose winners and losers.
[44:54] Ethanol is a net negative energy source.
[46:42] Debt and deficits. 
[53:38] Jobs are not the measure of our well-being, it's the goods and services that we have.
[54:45] Mike talks a little bit about monopolies.
 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)
Biblical Principles of Government (4a)
Biblical Principles of Government (4b)
Biblical Principles of Government (

Last week, Mike Winther discussed the biblical view of property, the definition of property, and the question of whether private property should even exist. Throughout this series of lectures, he has been using the example of an island to illustrate each concept.

Today, we return to the island to vote on redistributing money from the island's wealthy family to its poorer counterpart. In essence, our island has adopted a somewhat socialist approach, redistributing wealth from the rich to the poor. This change necessitates the introduction of an IRS agent and a social worker, leading to decreased production. Winther continues by demonstrating the impact of varying governmental forms on the real economy.

We explore concepts such as distributional and motivational loss. Mike dives into discussions on charity, the socialist model, and biblical principles aimed at preventing the vicious cycle of loss. He also outlines the reasons socialism is considered flawed, both biblically and in practical terms. Eventually, he comes back to the importance of property rights.

You’ll Learn:
[00:43] One family on the island is highly productive. They are rich. There's also a poor family who isn't as productive.
[01:40] Our system then becomes socialist where we take from the rich and give to the poor.
[02:35] We then have to audit the productivity of every family on the island. 
[03:27] One person is in charge of redistributing wealth.
[04:45] Removing one family to be the redistributors of wealth creates less for everyone, because that family isn't productive anymore.
[07:59] 40% of Americans are employed redistributing wealth.
[08:37] Socialist economies have motivational loss and distribution loss. 
[11:31] The Socialist model for taking care of the poor reduces economic capacity.
[12:10] We need to understand why there is poverty.
[14:24] Socialism violates property rights. 
[15:07] Three of The Ten Commandments actually assume a positive role of private property.
[23:14] Mike discusses a Biblical example of voluntary gifts of wealth.
[23:57] The free market is voluntary. Karl Marx and socialism are mandatory.
[24:09] Reasons why socialism is wrong: 1. It violates property rights. 2. Requires the government to operate outside its bounds. 3. There's no God in the system. 
[27:29] Why are people poor? They're poor because of poor governmental systems and the economy's created by those systems.
[28:14] How to create poverty. Have a government that makes it hard to accumulate tools or excess production. Without property rights and holding title, improvements can lead to confiscation.
[30:03] Mike talks about the dangers of inflating the money supply.
[31:08] Contracts need to be enforced in order to grow wealth.
[32:00] We are poor with socialist governments. We are poor with no property rights.
[32:40] Our founding fathers said the most important right was the right to property.
[36:56] Governmental regulations can sometimes be used to pass the buck.
[37:50] Having the government solve every problem is the definition of statism.
[38:44]  A Laissez-faire economy is a leave us alone economy or free market.
[44:16] How a market economy is able to actually create goods. The term is called the invisible hand or the hand of God. 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)
Biblical Principles of Government (4a)
Biblical Principles of Government (4b)
Biblical Principles of Government (5a)
I Pencil

In the words of Samuel Adams, one of the fathers of the American Revolution, The natural rights of the colonists are these: first, a right to life; secondly, to liberty; thirdly, to property; and lastly, to support and defend them in the best manner they can.

Our journey began with the theme of origins, followed by the theme of nature. Tonight, we turn our attention to property. We will explore the biblical view of property, define what property is, discuss how we manage property, and debate whether private property should exist.

We dive into the multifaceted concept of property through a lens both ancient and enduring—the biblical perspective. We'll explore the significance of property, the principles of managing it, and the pivotal question of its ownership. Should there be private property, or not? These are the crucial topics we will dive into tonight as we continue with lectures from Mike Winther’s class on Biblical Principles of Government.

You’ll Learn:

[01:34] Five government systems: monarchy, oligarchy, democracy, republic, and anarchy.
[01:57] Communism isn't a governmental system, it's an economic system.
[02:07] There are only two economic systems. These are the free market and socialism. All other economic systems are a subset of these two.
[02:34] A free market consists of voluntary actions and voluntary trade.
[03:03] Socialism is an economic system that does have government involvement.
[03:33] The free market is a voluntary system and socialism is an involuntary system.
[04:37] The free market consists of voluntary exchange without the government being involved, but there is government enforcement of contracts.
[05:27] A contract is a non-governmental agreement between two parties. Contracts are made without the government, but the government has a role enforcing contracts.
[07:15] We have socialism if we have government controlled capital or forced redistribution of wealth.
[10:15] In America, we have a blended system which is part free market and part socialism.
[10:56] Karl Marx is the modern father of communism. He wrote The Communist Manifesto.
[11:27] According to Marx, a communist is a person who wants socialism.
[12:45] Socialism and communism believe that property is mutually owned. Socialism places limits on private ownership of property.
[15:26] The redistribution slogan of Karl Marx.
[16:40] There are political systems and economic systems.
[27:00] You can tell by the work on the roadways that the government is planning for the future to make it more difficult for people to take private transportation.
[29:43] We need to ask ourselves if our vote is more public sector or private sector and make a decision about which one we want to support.
[32:42] Freedom of physical movement is a big part of freedom of speech.
[35:31] Marx was an advocate of publicly funded schools. Is a public school socialist institution? Who finances it? Redistribution of wealth?
[37:37] Mike goes back to the island example to show how economic systems work. 
[46:49]  Who is hurt the most by a price increase? The poor. That's goods and services and the price goes up.
 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)
Biblical Principles of Government (4a)
Biblical Principles of Government (4b)
Whatever Happened to Justice?
The Communist Manifesto

In this section of Mike Winther’s class on Biblical Principles of Government. Mike dives into economics with the goal of making economics useful to us. We explore the strategies communist leader Khrushchev purportedly advocated for undermining our economy through the gradual introduction of socialism. 
Mike emphasizes how societal readiness for change often emerges from discontent with the current state of affairs, suggesting that instigating dissatisfaction is a precursor to change.
The lecture covers both microeconomics and macroeconomics, with Mike providing a tangible example of microeconomic principles at play on a deserted island. He discusses concepts such as capital, tools, and surplus production, underscoring the notion that there is nothing inherently wrong with seeking to improve one's standard of living—a pursuit even encouraged by the Bible. 
Furthermore, Mike addresses the topics of exchange, trade, specialization, and the capacity to fulfill the needs of a community. It’s possible that this lecture is even more relevant now, then when it was first given. 
 
You’ll Learn:
[01:11] You can accomplish a lot if you don't care who gets the credit. You can accomplish a lot if you're not in too big of a hurry.
[01:36] Being fed small doses of socialism until we wake up and find out we already have communism.
[02:01] There are groups and individuals who intentionally want to weaken the economy. 
[03:01] People accept change when things aren't going well. You have to have a problem in order to be able to implement a solution.
[03:38] If you want to make change, you have to make it so things aren't going well.
[03:54] Economics comes from two Greek words which means the law of the house. It's the policies of running the house.
[04:35] Microeconomics or the economics of a household or firm or something small.
[06:38] Macroeconomics is the study of something bigger like a whole nation.
[07:17] Market friendly econ schools will want you to take microeconomics first. Big government leaning schools will want you to take macroeconomics first.
[08:30] Understanding the principles of microeconomics, a student won't fall for the big government macroeconomics.
[15:51] Means of production: Capital or tools. Capital is also excess production.
[21:47] There's nothing wrong with material wealth or improving your standard of living.
[26:51] Specialization matters. We can't have specialization without trade.
[30:59] Trade without money is called barter. 
[36:19] As the island grows bartering becomes a problem, because the trade overhead is too high.
[39:29] Money needs to be durable and divisible.
[43:44] Inflation is an increase in the money supply. As the money supply increases, prices go up.
[48:36] Intrinsic value or something that will always have value.
[50:21] There's no inherent scarcity in paper money. Governments can print more of it.
[55:26] Inflation is like stealing. 
[56:25] 1st Samuel chapter 8: When the king demands 10% you will be slaves.
[59:46] Economic issues are moral, ethical, and biblical issues.
 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)
Biblical Principles of Government (4a)

Welcome to Section 4a of Mike Winther's continuing lecture series on the Biblical Principles of Government. In this segment, Mike embarks on an examination of Samuel Chapter 8, focusing on the events following the Israelites' entry into the promised land, which was preceded by a significant 40-year period of wandering in the wilderness. 
This period began after the Israelites sent spies to scout the land of Canaan, and, upon receiving a discouraging report, the majority chose not to trust in God’s promise. Contrarily, only two spies, Caleb and Joshua, remained optimistic and faithful to God's guidance. Despite their positive report, the Israelites sided with the majority, leading to God's decree that they would wander in the desert for 40 years until a new, faithful generation arose.
This lecture explores how, after finally entering the promised land, the Israelites experienced the period of the Judges, marking a shift towards a decentralized form of government. Mike highlights how scripture offers both spiritual lessons and insights into governmental principles, illustrating the times of righteous judges and kings. The discussion raises a critical question: Which form of government did God prefer? The answer, as Mike reveals, is found in Samuel 8. 
Throughout the series, Mike shares numerous examples of scriptural passages that reflect political statements. He delves into the negative consequences of monarchical rule, the benefits of decentralized power, and strategies to limit the expansion of government. This episode promises to be an eye-opener, shedding light on the intricate relationship between biblical teachings and governance.
 
You’ll Learn:
[00:38] 1st Samuel chapter 8. The spies came back with a negative report and discouraged the children of Israel from wanting to take the Promised Land.
[04:56] Caleb and Joshua were more optimistic because they knew they had got on their side.
[05:45] 40 years later, they learned that the people they were going to attack were afraid of them because they had got on their side.
[06:29] The period of the judges. This was a centralized government with a lot of leaders. 
[08:35] There were periods of time when certain judges ruled and the people were righteous. There were more years of righteousness than people doing what was right in their own eyes.
[09:26] There are far more righteous judges listed in Hebrews than there were righteous kings.
[12:16] The colonists declared independence from the King of England in 1776 and restored God as the real king.
[15:05] Curses of bad government. The king will take your sons and make them serve. He will take your daughters, the best of your fields, and your vineyards. Also a tenth of your grain and your vintage. 
[19:41] No government would try to tax more than 9%.
[21:21] There are a lot of passages of scripture that are actually political statements.
[22:42] If you understand the sin nature of man you want decentralized power.
[23:16] Civil government is bigger than it ought to be.
[23:41] Ways to limit the expansion of government.
[24:02] Understand the origins of rights and authority. God is the source of authority, we should go to scripture to find out what the government can and can't do.
[26:34] Good laws limit government. The horizontal separation of powers. Isaiah 3:22.
[33:19] The chasm between ideals and reality. 
[35:22] What fuels the growth of government money and dependence.
[38:31] We need a vision to not depend on the government.
[39:55] We limit government by the watchful eye of the people.
[40:10] Public Choice Theory analyzes how the government grows. 
 
Your Resources: Books to browse
Biblical Principles of Government (1a)
Biblical Principles of Government (1b)
Biblical Principles of Government (2a)
Biblical Principles of Government (2b)
Biblical Principles of Government (3a)
Biblical Principles of Government (3b)