Voluntary poverty is a legitimate economic way of life and rarely discussed response to the current economic situation.

This idea came up during a Christmas gathering. Nerdy for Christmas, I know, but an idea that was worth holding on to. I was talking economics with a member of a religious community who shared a house with four other priests and who all had chosen to live lives of material poverty. What this means depends on the religious organization or the vow taken, but in general it means that they will buy only what they need, and give as much as they can away to the poor and to others.

This is contrary to one of the bedrock principles of Austrian Economics, which states (something along the lines of) “humans always want more”.

This brings to mind the story of the rich young man in the bible, who had followed all the commandments from his youth, but is told to sell what he has and to give to the poor and to follow Christ. “Where your treasure is, your heart will be also.”

This is an interesting alternative to the line between extreme capitalism and socialism. It requires a belief in something higher, something more. It also doesn’t require a systemic change, but a personal choice. Under different circumstances, these five priests would each live under their own roof and spend all they money they have (or don’t have) on vacations, cars, or whatever they’re able to get. But instead they are spending much less.

I did a quick calculation here with an average CO income after tax being about $47,000, and this is how it tallied out using some very rough guesstimates.

With these numbers, that community of five priests together has about 170k per year to give on an individual level where they think it best, and usually to the poor.

Now I don’t know if they actually get that money or what the numbers are, but the idea is the same. We don’t need to live to our economic limits to live well. If this fact was taken seriously by many, not only would many people likely not be in so much debt, it would also lead to a system where the poor could be supported more by families and individuals. I don’t think this will happen anytime soon, but I hope some people do would be good to trend toward this direction.

Voluntary poverty is a legitimate economic way of life and rarely discussed response to the current economic situation.

This idea came up during a Christmas gathering. Nerdy for Christmas, I know, but an idea that was worth holding on to. I was talking economics with a member of a religious community who shared a house with four other priests and who all had chosen to live lives of material poverty. What this means depends on the religious organization or the vow taken, but in general it means that they will buy only what they need, and give as much as they can away to the poor and to others.

This is contrary to one of the bedrock principles of Austrian Economics, which states (something along the lines of) “humans always want more”.

This brings to mind the story of the rich young man in the bible, who had followed all the commandments from his youth, but is told to sell what he has and to give to the poor and to follow Christ. “Where your treasure is, your heart will be also.”

This is an interesting alternative to the line between extreme capitalism and socialism. It requires a belief in something higher, something more. It also doesn’t require a systemic change, but a personal choice. Under different circumstances, these five priests would each live under their own roof and spend all they money they have (or don’t have) on vacations, cars, or whatever they’re able to get. But instead they are spending much less.

I did a quick calculation here with an average CO income after tax being about $47,000, and this is how it tallied out using some very rough guesstimates.

With these numbers, that community of five priests together has about 170k per year to give on an individual level where they think it best, and usually to the poor.

Now I don’t know if they actually get that money or what the numbers are, but the idea is the same. We don’t need to live to our economic limits to live well. If this fact was taken seriously by many, not only would many people likely not be in so much debt, it would also lead to a system where the poor could be supported more by families and individuals. I don’t think this will happen anytime soon, but I hope some people do would be good to trend toward this direction.