Nov/Dec 2021
INSIDE THIS ISSUE:
P1 Depression of 1873
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P2 The Financial Corner
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P3 What is So and So in the Bible
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P4 Book Review
EDUCATION CENTRAL (Facts on America's Business, History, and Religion)
Message from the editor...
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Welcome to this edition of our educational newsletter, Education Central. We begin with this issue a section on America's Founding Fathers. As you can see to your right, the first Founding Father to be discussed is George Washington - a hero not just to those who lived during his time but hopefully to Americans today. He believed in the cause for freedom. He loved America! Below we continue our discussions on the economic panics endured by America. While such depressions had a wide impact on Americans at the time, many of these panics had long term consequences for the country - some impacting us today. Stay safe! Stay informed!
America's Founding Fathers George Washington - The History Behind the Man George Washington - the most celebrated American of the 18th century. A hero to many then. Was given the title of "the Father of the Country" in 1776. And for most Americans today, a revered man who among others not only championed the freedoms we have but risked his life in doing so. -
George Washington was born on February 11, 1731 (via the Washington family Bible). However, his birth date was changed to February 22, 1732 when two things happened: 1.
January 1st was adopted as the first day of the year, and
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The adoption of the Gregorian calendar, which deleted eleven days from the Julian calendar that was previously used.1
The Panic of 1873 Lets get in a time machine and travel back almost 150 years ago. We are now approaching September 1873. The Civil War had ended eight years earlier. President Ulysses S. Grant, the commanding general of the victorious Union forces, was president of the United States, having been elected in 1869. His platform focused on Reconstruction and the reconciling of the North and South. Working to ensure freedom for the slaves, he supported the 15th Amendment to the U.S. Constitution that guaranteed the right to vote for freed African American slaves. "A man who felt he had been 'chosen' to save the Union financially during the Civil War and to build a northern transcontinental railroad." M. John Lubetkin Author, Jay Cooke's Gamble Jay Cooke was a leading banker. He was astute in addressing the financial issues associated with the Civil War. After the war, Cooke turned his focus on America's expansion westward, specifically the northwest. His company, Jay Cooke & Co., undertook the financing of the Northern Pacific railroad, which was designed to take passengers via railway from Minnesota to the Pacific Northwest. Cooke was not a railroad guru, but he saw an opportunity, as an investment banker, in the expansion of the railroad industry to the country's northwest marker. People were already traveling via railroads from Boston to San Francisco - why not the Northwest? Cooke was able to find many a buyer for the bonds he was selling as investment vehicles in the Pacific Northwest railroad. However, the U.S. economy began to slow in the beginning of 1873. While the railroad expansion across the U.S. was a major factor in the demise of the economy, the trigger to the economic collapse was the decision of the German government to back its currency with gold only. What does this mean? Well, a person could exchange the currency for whatever amount of gold that was deemed equal in value. The German currency had, for years, been backed by both gold and silver. Having a national currency backed only by gold meant an oversupply worldwide of silver. Doing so had a ripple effect, as such actions spread across Europe and into the United States where Congress passed the Coinage Act of 1873 that fazed out silver currency. Germany would face difficult times as its new monetary policy resulted in a money shortage at the same time as the country was having to deal with a financial, or speculative, bubble. Neighboring countries, such as Austria, were impacted. Austria's stock exchange crashed on May 9, 1873. In the United States, as a result of contracting the currency, the investors Cooke was pursuing
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Washington was born in a home on Pope's Creek, which was part of Bridges Creek Plantation (located in Westmoreland County).
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His parents' names were Augustine and Mary. George was one of six children born to his parents.
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He was educated at home by tutors, receiving education in math and business law. Was also taught Christianity.2
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Washington was twenty-two when he decided to enlist in the Army. He knew early on in life that he wanted to serve in the military.
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He was a private man from early on; known for his humility.
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Was a leader; his actions spoke louder than his words.
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He was forty-three when unanimously chosen to be commander-in-chief of the Army. He would travel to Boston in July to take command of the Continental Army.
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Ten years removed from the crafting of the U.S. Constitution, Washington left the presidency. In March 1797, having served two terms as President of the United States, he retired to Mount Vernon. Two years later, on December 14, 1799, he died.
"George Washington's Birthday." National Archives, 19 June 2019, www.archives.gov/legislative/features/washington. 1
Lillback, Peter A. George Washington's Sacred Fire. Providence Forum Press, 2006. 2
P1
The Four Factors of Production
The Four Factors of Production Production is defined by Webster’s as “the making of goods available for use.” It is taking material in its raw form through a series of steps, manufacturing, in the end, a desired product.
Natural Resources
Can take the form of land or raw materials.
Acquisition of land can be expensive depending on its location;
What are the five important non-fuel minerals? They are lead, copper, ore, tin, and iron.
There are four factors that make up production: 1) Natural Resources
Labor Workers are needed to convert the raw material into a product;
2) Labor
A study of productivity growth conducted by Robert Solow in the 1950s showed there are four categories that reflect growth in labor productivity;
3) Capital
Labor costs make up the bulk of the price consumers pay for a product or service.
4) Entrepreneurship or management
Labor Capital
Free-Market “Free-market capitalism rewards those who produce and innovate the most.”
Capital for a business has been referred to as the business’ “long-run financing.” It consists of assets such as funds held in deposit accounts, storage buildings, manufacturing plants, company cars, machinery, tangible machinery used for production, and patents.
“Labor without natural resources, capital, and entrepreneurship would not be able to support human life. But without the allimportant factor of labor, the other three factors of production would be useless.”
Excerpt from “The Demographic Cliff”
Excerpt from “Economics - Work & Prosperity in Christian Perspective
Entrepreneur
Entrepreneurship This fourth factor addresses the need for effective management to intelligently direct and supervise the use of the natural resources involved, the labor force, and capital.
The Panic of 1873 (cont. from page 1) were spooked. They had no interest in purchasing bonds from Cooke. With investment money drying up, Cooke was not able to fund the debts incurred ($9 million of bonds that Cooke wasn't able to sell were taken possession of by the Northern Railroad executive committee). Cooke's bank would subsequently close with Cooke filing bankruptcy. With a cash shortage, the East Coast banks were not able to ship money to the Midwest banks who loaned to farmers for their crops. The banks also were not able to go to European investors as that investment source had dried up. Considered to be the worst depression other than the Great Depression of 1929-1933, the Panic of 1873 consisted of high rates of unemployment, companies in the United States defaulted on loans, 90 percent of the railroads failed, and people lost their homes. For twenty years following the Panic of 1873, economic growth fell by nearly 24 percent (see article "Production" on this page).
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“An enterprising person with a gift for thinking up undertakings and getting them accomplished. [He or she] takes [on] high risks.” Excerpt from “Economics - Work & Prosperity in Christian Perspective””
The Financial/Economic Corner Production Production is an easy concept right? It brings to mind factories with assembly lines that manufacture or make things. However, is it as simple as placing people along a conveyor belt, sorting parts, matching them up to where they need to go? There is so much more that goes into what appears on the outside as a simple concept. Today's financlal/economic corner focuses on the importance of production and, in particular, the need for a superpower such as the United States to have a strong manufacturing sector. Let's begin by looking at what exactly goes into the word "production." There are four factors of production (see chart above). A factor is defined as an ingredient; in the case of production, a factor is an element that contributes to the
desired output. As you can see in the chart above, they all are dependent on each other. For instance, the natural resources brought in to make the final product will sit as is if there is no labor to make it, no capital assets on which to use to manufacture the product, and no management to help steer the entire process. How critical is production or manufacturing for America and those countries who buy American-made goods? Very. When goods are manufactured in the United States, it means: - more jobs - an increase in research and development - innovation - greater exports - A more robust economy
P2
Religion What is So and So in the Bible? As we read the Bible, we come across words and sayings of which we desire and need further clarification as to their meaning. A few years ago, a study conducted by the Barna Group sadly stated that the Bible is increasingly met with skepticism. However, that's because we as a society have not read the Bible and gotten into God's Word. Let's start here with definitions. - prophesying the Messiah's ride into Jerusalem some 500 years before Jesus Christ was even born!
What is Zion? Many of us have heard the word Zionism. This is the belief of freedom loving people that the Jewish people have the right to an autonomous state in the land of Israel. But let's break the word down to its core: Zion. Is this word mentioned in the Bible? If so, where?
Mount Zion, as it is stated in the beginning of Hebrews 12:22, is the city on the hill - the home of God's people. But it is also referred to as "the city of the living God, the heavenly Jerusalem..." In this case, the eternal home for those faithful to the Lord, the New Jerusalem (see Revelation 21:2).
Yes, to the first question. According to openbible.info, the word Zion is mentioned 100 times throughout the Bible. As for the second question, we will discuss a few of the verses where Zion is mentioned. We are told in 2 Samuel 5:7 that "Nevertheless, David took the stronghold of Zion, that is, the city of David." Zion, back in the 11th century B.C., was a fortress for the Jebusites, a Canaanite tribe first mentioned in the Bible in Genesis 10:15-16. David and his men would not only conquer Zion, but would move the Ark of the Covenant to Zion. Zion, the ancient city of Jerusalem, is located between the Kidron Valley and the Hinnom Valley.
What is Faith? The Merriam Webster dictionary defines faith as "allegiance to duty or a person: loyalty." Loyalty is a powerful word. Being loyal means you don't swerve in your allegiance to someone. You go the distance for him or her may be easy, may be difficult - but it doesn't matter. That is the loyalty, as Christians, we should show the Lord every day! For Christians, faith in the Lord means that we believe Jesus Christ died on the Cross for our sins, then rose from the dead on the third day and sits at the right hand of God the Father. Athough we don't deserve the blessings bestowed upon us, God loves us - those of us who are faithful to Him. So it is remarkable and yet thankful that the Lord has gone the distance, and will continue to do so for His people. He is faithful to us.
We read in 1 Kings 8:1 that King Solomon, David's son, had the Ark of the Covenant brought to the temple in Jerusalem from his father's city, Zion. In the New Testament, Jesus states, in Matthew 21:5, "Say to the daughter of Zion, 'Behold, your king is coming to you, humble, and mounted on a donkey, and on a colt, the foal of a beast of burden.'" In this case, He is speaking to the people in Israel. The prophet Zechariah spoke these words in Zechariah 9:9
We see evidence of this over 6,000 years ago, during Noah's life. In Genesis 9:8-17 God speaks to His covenant with Noah. In verse 11, God states "I confirm My covenant with you
Production (cont. from page 2)
effective manner.
Below are data (from census.gov) supporting the need for manufacturing in the United States:
Where Are Items Manufactured?
- 11.7 million people employed at manufacturers from 2017 to 2018. - Did you know that the manufacturing sector is the fifth largest employer in the United States? - From 2017 to 2018 the value of the shipments of manufactured goods rose 9.1 percent to $6 trillion. - Manufacturers contribute an estimated 60 percent of U.S. export dollars - far ahead of wholesalers and others who also export. The United States will continue to play a vital role in innovation and technology that will not only supply the customer with his/her needs but will also do so in an efficient and cost-
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that never again will every creature be wiped out by the waters of a flood; there will never again be a flood to destoy the earth." We are reminded of this everytime we see a rainbow. He is faithful to us. In Genesis 12:2, God makes a covenant with Abraham, telling him that "I will make you into a great nation, I will bless you, I will make your name great, and you will be a blessing." The Abrahamic Covenant, like the other covenants God enacted, is one of grace. God wanted a relationship with people. He not only extended grace to Abraham whose father was an idolater, He also paved the way to the Promised Land (Canaan) telling Abraham in Genesis 12:1 "Go out from your land, your relatives, and your father's house to the land that I will show you." Today, we see the fulfillment of this covenant: Israel as a nation and Abraham, like Noah and others throughout the Old Testament obeyed God's commands. The prophet Habakkuk speaks of faith this way in Habakkuk 2:4: "Look, his ego is inflated; he is without integrity. But the righteous one will live by his faith." Hebrews 11:13 states "these [Noah, Abraham, Isaac, and Jacob] all died in faith, not having received the promises, but having seen them afar off were asured of them, embraced them and confessed that they were strangers and pilgrims on the earth." Faith: for us today who trust in the Lord, we are certain of His promises, "of things not seen."
From a Deloitte study conducted in 2016, below are the top five countries in the world where many (if not most) of the products you and I have used are made: 1. China 2. USA 3. Germany
4. 5.
Japan Illinois
In 2019, the top five states1 in America with the highest share of total U.S. manufacturing jobs are: 1. California 4. Michigan 2. Texas 5. Illinois 3. Ohio Manufacturing - with its people, facilities/plants, parts/natural resources - spawns more economic activity than other sectors of the economy. 1
"Rankings of States by Industrial Subsector Jobs - Manufacturing." January 14,
2019. Access www.constructconnect.com/blog/economy/
Esther From the Old Testament, we come across another heroic woman. It's the wonderful story of Esther whose life early on was filled with tragedy. Sadly, her parents were killed when she was young. Picking up the pieces of her life, Esther's cousin Mordecai took her into his home. He treated her as if she was a daughter to him. The time period of the story of Esther in the Bible was between the years 483 and 471 B.C. The location of the story took place in Persia, which is today considered to be Iran. In 483, the ruler of the
P3
Esther
(continued from page 3)
Persian empire was King Ahasuerus (or King Xerxes). King Ahasuerus was the son of King Darius I who ruled the Persian empire from 522-486 B.C. The Persian Empire stretched from India to Cush (ancient Ethiopia; named considered derived from Cush, the son of Ham who was the son of Noah). As we see in the first chapter of Esther, King Ahaseurus was in a celebratory mood, overseeing a week-long banquet. But his mood turns sour as his Queen Vashti refuses to come to him on his command. The king would demote her, taking away her royal position. The search for a new queen will be undertaken. Esther would be one of the women taken for the beauty treatments. During this time she did not reveal she was a Jew.
Book Review: This Christmas Night With the Christmas season upon us, there is no better a book to read as to why we celebrate Christmas than Billy & Ruth Graham's book This Christmas Night. The story of the birth of Jesus is presented in short stories, hymns, and poetry. In the book's Forward, the Grahams lovingly speak not just of family memories of Christmas day, but the purpose of getting together: "....we gather to celebrate the Christmas message: a message of hope and joy and love." These three hope, joy, and love - are what Jesus' birth is all about:
HOPE - in Timothy 1:1, the Apostle Paul identifies himself and then designates "Christ Jesus as our hope." The people in the days leading up to the birth of Christ needed hope; they needed to know the Messiah would come and rescue them from oppression. The Apostle Paul refers to Jesus Christ as our hope then, now, and in the future because He is In chapter two, King Ahaseurus chose Esther to be his the only one in whom we can place our hope not just Queen. He loved her more than he did the other for this life on earth, but for eternity. women. Queen Esther did not, however, reveal her JOY - when I hear or see this word, I think of a child family or her people (see Esther 2:20) pointing out to her classmates one Sunday years ago: J means Jesus, O means others, Y In chapter three, we read about Haman, the king's means you. We are to put others ahead of us and always have Jesus be the most important assistant, and his desire to destroy all the Jews. That person in our lives. Elizabeth, Mary's relative, said this in Luke 1:44 about joy: "For you see, would include Mordecai and Queen Esther. How did when the sound of your greeting reached my ears, the baby leaped for joy inside me!" Haman convince King Ahaseurus? He told the king Elizabeth was pregnant with John - John the Baptist - who would pave the way for the that the Jews were not following the king's laws. "If it Messiah! pleases the king, let a decree be written that they be destroyed,..." (Esther 3:9). The king agreed and sealed LOVE - who doesn't embrace love?! Throughout the Bible we read about God's love for His people. John 3:16 tells us that "For God so loved the world that He gave His only begotten it with his signet ring. Son, that whoever believes in Him should not perish but have everlasting life." God's love for Verse 14 of chapter four is the push Esther needed to us came down in the form of a little baby boy who would later die for our sins. That's love. take a stand to protect her people. Mordecai tells her Toward the back of the book is a quote from Ruth Bell Graham's Collected Poems: "It's your "Yet who knows whether you have come to the heart that Jesus longs for; your will to be made His own, with self on the cross forever, and kingdom for suh a time as this." Jesus alone on the throne." In chapter 5, we begin to see Esther's plans and a This Christmas let's celebrate the birth of our savior, Jesus Christ! worried and discontented Haman who had such distaste for Mordecai and the Jews. In the final chapters, we read about Esther's plan coming together, which exposed Haman's deviousness. Instead of Mordecai being destroyed, the king ordered Haman to be killed. After that, Mordecai became head of the house of Haman and the king gave him his signet ring. In chapter nine, the Jews were victorious in their battles (Esther 9). Mordecai would become second in command to King Ahasuerus and Esther remained as Queen.
The Ten Commandments Putting Them to Work in Our Lives The First Commandment: "You shall have no other gods before Me." Exodus 20:2 This commandment is the foundation for the other nine. This commandment is the most important because it expresses the reverence, the respect, the gratitude, and the love that we should have for our Heavenly Father who has blessed us with so much. We are NOT to put anyone or anything above Him ever! We are to put Him first in our lives!
It's 1800 and the Turn of the Century What was the turn of the century like in 1800? What president of the United States ushered in the new centennial? Well, here are some tidbits of American info when the nineteenth century rolled in: - As the United States approached 1800, it was still a new country. The U.S. Constitution was barely thirteen years old. It's conceivable that there was little celebration going on unlike future times in which fireworks and much fanfare helped usher in a new century. Historical notes from the early 1800s: - The nation's capital was moved from Philadelphia to Washington, D.C., under President John Adams, in June 1800. - The political scene, even back then, was brutal. Vice President Thomas Jefferson defeated President John Adams in December 1800. - The role of the Supreme Court would become more prominent when John Marshall, a Federalist and Adams' appointee, became chief justice of the Supreme Court in 1801.
- In 1803, under the Jefferson administration, the United States expanded westward with the Louisiana Purchase - amounting to approximately 827,000 acres. It was a huge deal for such a young country as America was. - Economically, the country remained an agrarian nation in the early 1800s, largely dependent upon foreign countries (the British and French, primarily) for many goods. - The United States first central bank, the First Bank of the United States, did not have its charter renewed in 1811. - The War of 1812 would bring the United States again into battle against England. - The United States would face its first encounter with near economic collapse in 1819 (known as the Panic of 1819). - In 1822, Rowland Hussey Macy, the founder of the Macy's department store chain, was born.
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