Jesus on Money (22) - Capital

When Deacons are assisting new Christian to give away their unrighteous wealth, they must be careful that they do not de-capitalise the Christian community. Deacons must understand the importance of capital. Capital goods are important, because they make humans more productive. Capital and trade are the keys to escaping subsistence.

Economists distinguish between capital goods and consumption goods. The word capital is used to describe goods that can be used to produce other goods. A spade is a capital good. You cannot eat it if you are hungry, but you can use it to produce food. Capital goods include machinery and factories.

Consumer goods cannot be used to produce other goods. They produced for household or personal in satisfy human wants and needs. A banana is a consumer good. You cannot use it to make things, but it will satisfy your hunger. Some goods are both capital and consumption goods. When I use my computer to write articles it is a capital good. If I play games on my computer for entertainment, it becomes a consumption good.

In Jesus time, the most important capital good was land, but oxen, donkeys, fishing boats, nets and builders tools were also important. A family with a fishing boat and nets could feed and cloth themselves, whereas those without some capital might be destitute.

In modern times capital has become more complex. The capital of an airline is its aeroplanes. The capital of a courier business is its vans and computers.

The well being of a community is largely determined by the volume of capital goods available. A society with no capital goods is forced into subsistence. A society with capital good will have a better lifestyle.