How theology ties into economics

By Mary Welch

For the AJC

Matthew D. Burton is president of Narwhal Capital Management, an asset managing and financial planning firm that oversees $400 million in assets. The average portfolio is $14 million.

Burton recently co-authored, “Calvin and Commerce: The Transforming Power of Calvinism in Market Economics,” commemorating the 500th anniversary of the birth of John Calvin, one of the major theologians during the Protestant Reformation.

The book is one of a scholarly set of volumes published by the Presbyterian and Reformed Press.

He spoke to the AJC about his firm and the book.

Q: Where does the name Narwhal come from?

A: It’s the name of my naval father’s submarine. The vessel was named after a whale with a distinctive horn-like tooth that projects out like a unicorn’s horn. The mammal is famous for swimming below the storms.

Q: How did an investment manager come to co-author a scholarly work about John Calvin?

A: I have always been fascinated with the micro and macro economics that are prevalent throughout Calvin’s teachings and writings. After discussing this interest with two pastors on one occasion, I decided to delve deeper into it.

Economics is what I do, and it’s something I’ve always wanted to write a book about.

Three weeks later, David Hall, one of the pastors, came in with a book contract, and we began writing.

Q: When did you decide to “delve deeper” into Calvin’s life and teachings?

A: About 10 years ago I started reading Calvin. I’m not an expert or a scholar by any means.

Q: What caused you to start your investment management firm?

A: Narwhal Capital Management was founded in 2005 because of a lifetime interest in markets and economics, a strength in mathematics and statistics, and a desire to maximize my lifetime “return” in an independent environment. Calvin wrote about the concept of utilizing the talents God gives you and seeking the highest level of total return for Him.

Q: Most people view Calvin solely in a religious light. How is he relevant to business?

A: Despite what one might think, economics is not morally or theologically neutral. Every business action supports a certain economic paradigm and in doing so, supports a certain and specific theology.

Every businessperson needs to understand that taking a specific economic position gives insight into your view of theology, morality and God. These insights must be addressed because it will affect how you run your business.

Q: Give us an example of how a business action links up to theology.

A: For a business owner, it could be whether you maximize your profits or how you compensate your employees, issues like that.

Q: So economics is theological?

A: Economics is certainly not morally or theologically neutral. To take a stance as a Marxist, Keynesian, or an Adam Smith Capitalist reveals insight into your view of man, God and redemption.

Q: Are you saying that different religions lend themselves to different economic paradigms?

A: I can’t speak for all religions. But for Christians, the Bible presents specific economic “truths.”

These truths are not the same as capitalism. Yet capitalism is the one economic paradigm that is most congruent with Calvin’s teachings and the Biblical economic “truths” I mentioned.

Q: Can you apply it to something like success? So many people, for example, think wealth is evil.

A: Calvin believed wealth cannot be evil because God chooses to bless some with wealth. But, whether wealthy or poor, Calvin and the Bible exhort us to be content with our economic positions in life and to live a life following his word, not chasing after wealth.

Q: Was Calvin rich?

A: No. His personal wealth was always modest. He managed no business. That makes his insights into the area of asset development particularly stunning achievements.

Q: Calvin is famous for his belief in predestination. Does being predestined to heaven or hell mean that it is decided in advance whether we will be rich or poor?

A: People who think of Calvin as equating material prosperity with eternal destiny are misreading him. But if someone is in difficulty, then maybe that is where that person needs to be in this life for the sake of his eternal life. That may be an expression of God’s will.

Q: What do your kids think about the book?

A: My 15-year-old certainly approves and has shown some level of interest. The younger four are just glad when I am done working on the computer and am available to play.

Q: Any plans for a second book?

A: Six weeks ago, I would have said no way, but now I am considering a follow-up. I’m interested in discussing capital markets, investing in financial instruments and what we can glean from the Bible and economics from the views of Calvin and other great reformers.