17 humans can be properly altruistic as Christians in whom the Holy Spirit is working to bring about compassion. However, it is also the case that compassion cannot be coerced, as Adam Smith also stated and as Scripture makes clear. The Bible exhorts and encourages Christians to love, but such genuine love is created in us, for as the inner man is changed by God, the heart is “softened.” Neither the state nor any economic system (contra Marx) can affect inward compassion. We may be tempted to argue that since believers are called to care for those in need, and since individuals and churches don’t have sufficient resources, we can simply push this off to the state. But three problems arise. First, as already noted, the state cannot actually convey compassion. Second, the state can only coerce action. Third, to accomplish the goal of aiding the less fortunate, the state must coercively take from some and redistribute to others, since the state does not itself create wealth. Is that then consistent with biblical standards? In other words, is that a just solution? Another problem that arises as a result of the Fall is that humans lack perfect knowledge of the present and certainly of the future. Christian theology recognized this problem, but in the 20th century it had been largely forgotten in the wake of optimism regarding the capacity of central planning to arrange and guide an economic system. Friedrich Hayek reminded us of the problem once again when he wrote on “The Use of Knowledge in Society” in 1945. Though Hayek was not a Christian, he agreed with the Christian view that knowledge is limited in scope and time due to the Fall, even though Christian theology would also allow that the problem can be lessened and partially overcome by the Scriptures and the work of the Holy Spirit. If local knowledge is really all we can have accurate access to, then planning an economy from the top down is counterproductive, even harmful. Markets should largely be left alone to bring about the best results without having to know everything necessary for a given decision. These problems take us back into the realm of government, especially its relationship to private action. Crucial questions arise: How much government? Is there a limit to state intervention? If so, on what grounds? Is there and should there be a limit to such intervention in market processes? Given the potential for sinful behavior among all, and given that a particular institutional setting does not “magically” transform individuals from private sector egoists into public sector altruists, we
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