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Social Principles: The Economic Community

We claim all economic systems to be under the judgment of God no less than other facets of the created order. Therefore, we recognize the responsibility of governments to develop and implement sound fiscal and monetary policies that provide for the economic life of individuals and corporate entities and that ensure full employment and adequate incomes with a minimum of inflation. We believe private and public economic enterprises are responsible for the social costs of doing business, such as employment and environmental pollution, and that they should be held accountable for these costs. We support measures that would reduce the concentration of wealth in the hands of a few. We further support efforts to revise tax structures and to eliminate governmental support programs that now benefit the wealthy at the expense of other persons.


We believe private ownership of property is a trusteeship under God, both in those societies where it is encouraged and where it is discouraged, but is limited by the overriding needs of society. We believe that Christian faith denies to any person or group of persons exclusive and arbitrary control of any other part of the created universe. Socially and culturally conditioned ownership of property is, therefore, to be considered a responsibility to God. We believe, therefore, governments have the responsibility, in the pursuit of justice and order under law, to provide procedures that protect the rights of the whole society as well as those of private ownership.

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Collective Bargaining

We support the right of all public and private employees and employers to organize for collective bargaining into unions and other groups of their own choosing. Further, we support the right of both parties to protection in so doing and their responsibility to bargain in good faith within the framework of the public interest. In order that the rights of all members of the society may be maintained and promoted, we support innovative bargaining procedures that include representatives of the public interest in negotiation and settlement of labor-management contracts, including some that may lead to forms of judicial resolution of issues. We reject the use of violence by either party during collective bargaining or any labor/management disagreement. We likewise reject the permanent replacement of a worker who engages in a lawful strike.

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Work and Leisure

Every person has the right to a job at a living wage. Where the private sector cannot or does not provide jobs for all who seek and need them, it is the responsibility of government to provide for the creation of such jobs. We support social measures that ensure the physical and mental safety of workers, that provide for the equitable division of products and services, and that encourage an increasing freedom in the way individuals may use their leisure time. We recognize the opportunity leisure provides for creative contributions to society and encourage methods that allow workers additional blocks of discretionary time. We support educational, cultural, and recreational outlets that enhance the use of such time. We believe that persons come before profits. We deplore the selfish spirit that often pervades our economic life. We support policies that encourage the sharing of ideas in the workplace, cooperative and collective work arrangements. We support rights of workers to refuse to work in situations that endanger health and/or life without jeopardy to their jobs. We support policies that would reverse the increasing concentration of business and industry into monopolies.

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Consumers should exercise their economic power to encourage the manufacture of goods that are necessary and beneficial to humanity while avoiding the desecration of the environment in either production or consumption. Consumers should avoid purchasing products made in conditions where workers are being exploited because of their age, gender, or economic status.

And while the limited options available to consumers make this extremely difficult to accomplish, buying “Fair Trade Certified” products is one sure way consumers can use their purchasing power to make a contribution to the common good. The International Standards of Fair Trade are based on ensuring livable wages for small farmers and their families, working with democratically run farming cooperatives, buying direct so that the benefits and profits from trade actually reach the farmers and their communities, providing vitally important advance credit, and encouraging ecologically sustainable farming practices. Consumers should not only seek out companies whose product lines reflect a strong commitment to these standards, but should also encourage expanded corporate participation in the Fair Trade market.

Consumers should evaluate their consumption of goods and services in the light of the need for enhanced quality of life rather than unlimited production of material goods. We call upon consumers, including local congregations and Church-related institutions, to organize to achieve these goals and to express dissatisfaction with harmful economic, social, or ecological practices through such appropriate methods as boycott, letter writing, corporate resolution, and advertisement.

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In spite of general affluence in the industrialized nations, the majority of persons in the world live in poverty. In order to provide basic needs such as food, clothing, shelter, education, health care, and other necessities, ways must be found to share more equitably the resources of the world. Increasing technology, when accompanied by exploitative economic practices, impoverishes many persons and makes poverty self-perpetuating. Poverty due to natural catastrophes and environmental changes is growing and needs attention and support. Conflicts and war impoverish the population on all sides, and an important way to support the poor will be to work for peaceful solutions.

As a church, we are called to support the poor and challenge the rich. To begin to alleviate poverty, we support such policies as: adequate income maintenance, quality education, decent housing, job training, meaningful employment opportunities, adequate medical and hospital care, humanization and radical revisions of welfare programs, work for peace in conflict areas and efforts to protect creation’s integrity. Since low wages are often a cause of poverty, employers should pay their employees a wage that does not require them to depend upon government subsidies such as food stamps or welfare for their livelihood.

Because we recognize that the long-term reduction of poverty must move beyond services to and employment for the poor, which can be taken away, we emphasize measures that build and maintain the wealth of poor people, including asset-building strategies such as individual development savings accounts, micro-enterprise development programs, progams enabling home ownership, and financial management training and counseling. We call upon churches to develop these and other ministries that promote asset-building among the poor. We are especially mindful of the Global South, where investment and micro-enterprise are especially needed. We urge support for policies that will encourage equitable economic growth in the Global South and around the world, providing a just opportunity for all.

Poverty most often has systemic causes, and therefore we do not hold poor people morally responsible for their economic state.

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Foreign Workers

For centuries people have moved across borders in search of work. In our global world this is still a relevant and increasing form of immigration. Improved wages, better working conditions, and jobs available are reasons for immigration due to work opportunities. Workers from other countries are in many societies an important resource to fill the society’s need of workers. But foreign workers too often meet exploitation, absence of protecting laws, and unreasonable wages and working conditions.

We call upon governments and all employers to ensure for foreign workers the same economic, educational, and social benefits enjoyed by other citizens.

Foreign workers also need a religious fellowship, and we call for the churches to include these in their care and fellowships and to support them in their efforts for better conditions.

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Gambling is a menace to society, deadly to the best interests of moral, social, economic, and spiritual life, destructive of good government and good stewardship. As an act of faith and concern, Christians should abstain from gambling and should strive to minister to those victimized by the practice. Where gambling has become addictive, the Church will encourage such individuals to receive therapeutic assistance so that the individual’s energies may be redirected into positive and constructive ends. The Church acknowledges the dichotomy that can occur when opposing gambling while supporting American Indian tribal sovereignty and self-determination. Therefore, the Church’s role is to create sacred space to allow for dialogue and education that will promote a holistic understanding of the American Indians’ historic quest for survival. The Church’s prophetic call is to promote standards of justice and advocacy that would make it unnecessary and undesirable to resort to commercial gambling—including public lotteries, casinos, raffles, Internet gambling, gambling with an emerging wireless technology and other games of chance—as a recreation, as an escape, or as a means of producing public revenue or funds for support of charities or government.

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Family Farms

The value of family farms has long been affirmed as a significant foundation for free and democratic societies. In recent years, the survival of independent farmers worldwide has been threatened by various factors, including the increasing concentration of all phases of agriculture into the hands of a limited number of transnational corporations. The concentration of the food supply for the many into the hands of the few raises global questions of justice that cry out for vigilance and action.

We call upon the agribusiness sector to conduct itself with respect for human rights primarily in the responsible stewardship of daily bread for the world, and secondarily in responsible corporate citizenship that respects the rights of all farmers, small and large, to receive a fair return for honest labor. We advocate for the rights of people to possess property and to earn a living by tilling the soil.

We call upon governments to revise support programs that disproportionately benefit wealthier agricultural producers, so that more support can be given to programs that benefit medium and smaller sized farming operations, including programs that build rural processing, storage, distribution, and other agricultural infrastructure; which link local farmers to local schools; and which promote other community food security measures.

We call upon our churches to do all in their power to speak prophetically to the matters of food supply and the people who grow the food for the world and to develop ministries that build food security in local communities.

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Corporate Responsibility

Corporations are responsible not only to their stockholders, but also to other stakeholders: their workers, suppliers, vendors, customers, the communities in which they do business, and for the earth, which supports them. We support the public’s right to know what impact corporations have in these various arenas, so that people can make informed choices about which corporations to support. We applaud corporations that voluntarily comply with standards that promote human well-being and protect the environment.

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Financial institutions serve a vital role in society. They must guard, however, against abusive and deceptive lending practices that take advantage of the neediest among us for the gain of the richest. Banking regulations must prevent the collection of usurious interest that keeps people in cycles of debt. Personal credit issuing institutions must operate with responsibility and clarity that allow all parties to understand the full terms of agreements.

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Trade and Investment

We affirm the importance of international trade and investment in an interdependent world. Trade and investment should be based on rules that support the dignity of the human person, a clean environment and our common humanity. Trade agreements must include mechanisms to enforce labor rights and human rights as well as environmental standards. Broad-based citizen advocacy and participation in trade negotiations must be ensured through democratic mechanisms of consultation and participation.

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Graft and Corruption

God’s good creation, the fullness of its bounty, and the loving, nurturing relationships that bind all together are intended by God to be enjoyed in freedom and responsible stewardship. To revere God’s creation is a sacred trust that enables us to fashion just, equitable, sustainable relationships and communities. The strength, stability, security, and progress of such relationships and communities depend on the integrity of their social, economic, political, and cultural processes, institutions, and stakeholders. Graft, referring to unfair or illegal means of acquiring money, gain, or advantage, especially by abusing one’s position in politics, business, and social institutions, transgresses human dignity and violates human rights. Corruption, referring to dishonest and undue exploitation of power for personal gain, subverts God’s intention for the fullness of life and creation. Graft and corruption tangle the social thread of communities, erode the moral fiber of human relationships, and sully the reputation of social institutions. Legislative and judicial mechanisms, including a strong, just criminal justice system, must deal with graft and corruption at every level of society. Good, just political governance characterized by transparency, accountability, and integrity is crucial to the eradication of graft and corruption. Societies that are graft-ridden and plagued with corruption are needful of God’s pardoning love and redeeming grace.

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Public Indebtedness

The huge budget deficits produced by years of overspending by governments around the world is of great concern. We acknowledge that for a limited time in a nation’s history governmental deficits are sometimes necessary. However, long periods of excessive overspending by governments have produced huge deficits and significant economic challenges for many nations. Such wanton carelessness cannot continue. Therefore, we call upon all governments to reduce budget deficits and to live within their means. We ask the governments and institutions that lend money to reduce significantly the interest rates on the money borrowed. We ask that public officials, when making financial adjustments, remember first and foremost obligations that promote the well-being of society such as the funding of schools and other opportunities that foster the growth of the individual, as well as agencies that care for the poor, the elderly, the disabled, and the disenfranchised.

We recognize that, if deficits are not brought under control, future generations will be shackled with a burden of public indebtedness that will force societies to live under the specter of coerced repayments, rising inflation, mass unemployment, and despair. Thus, this is not just a financial issue, but an issue of justice for those who are yet to be born. Wise stewardship is needed today to provide for future generations. We call on church leadership throughout the connection to encourage public officials to reduce public indebtedness and to begin the process toward balanced and fair budgets.

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From The Book of Discipline of The United Methodist Church - 2016. Copyright 2016 by The United Methodist Publishing House. Used by permission.

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