17.7.2012 Tuesday. 6.02am.
Woke up about an hour ago to start studying for my upcoming actuarial exam CT7 - Economics. Really want to finish reading chapter 10 today cuz I should have finished it last night but was too brain dead.... so.....
Studying my Econ textbook just then, and came across this on pg 203-4, that really hit something deep and reminded me....:
----Textbook excerpt----
What determines the normal rate of profit? It has two components. Firstly, capital cost. This is the interest that could have been earned by lending it in some riskless asset. Nobody would set up a business unless they expect to earn at least this rate of profit. Running a business, however, is far from riskless. Hence a second element is a return to compensate for tisk. Thus:
Normal Profit (%) = rate of interest on riskless loan + a risk premium.
Thus if owners of a business can earn normal profit, they will (just) be content to remain in that industry. If they earn more than normal profit, they will also (obviously) prefer to stay in business. If they earn less than normal profit, then after a time, they will consider leaving and using their captial for some other purpose. Given that normal profits are included in costs, any profit that is shown diagrammatically (in Figure 10.7) must therefore be over and above normal profit. This profit is known by several names: supernormal profit, pure profit, economic profit, abnormal profit, or sometimes, simply profit.
----End Textbook excerpt----
Reading this, it really hit me -- God is a wise investor. It reminds me of the parable of the fruitless tree, where the vineyard gardener had a conversation with the vineyard owner ---- excerpt here -----
Luke 13
Now there were some present at that time who told Jesus about the Galileans whose blood Pilate had mixed with their sacrifices. Jesus answered, “Do you think that these Galileans were worse sinners than all the other Galileans because they suffered this way? I tell you, no! But unless you repent, you too will all perish. Or those eighteen who died when the tower in Siloam fell on them—do you think they were more guilty than all the others living in Jerusalem? I tell you, no! But unless you repent, you too will all perish.”
Then he told this parable: “A man had a fig tree growing in his vineyard, and he went to look for fruit on it but did not find any. So he said to the man who took care of the vineyard, ‘For three years now I’ve been coming to look for fruit on this fig tree and haven’t found any. Cut it down! Why should it use up the soil?’
“‘Sir,’ the man replied, ‘leave it alone for one more year, and I’ll dig around it and fertilize it. If it bears fruit next year, fine! If not, then cut it down.’”
--- End Luke 13 Excerpt ----
I've underlined the parallel verses between the economics textbook and the parable here.
Hence for God, as we are His investments, it seems, that for God to consider something a normal profit, it is that we at least bear some fruit. Even if our leaves are as green and lush as they can be, our bark strong and without worms or pollutants, however to God, the lack of fruit causes Him to reconsider other uses for His capital and time. In the vineyard parable, the gardener desperately was trying to save the tree from being perish and incinerated, could almost hear him say "it's all up to you now, come on! come on! 我能做的我都做了，你要爭氣啊！" as if letting a puppy loose to navigate through the obstacle course but being on the other side calling its name in hope that the puppy will run towards the direction of his voice.
Many might think that to bear fruit is simply to have good ethics or to lead many to Christ. But alas, that is not so. To bear fruit, is to, in every aspect of your life, return to God with investment returns in His eyes. It is no use that you are a super Godly Christian who knows the Bible back to front but failed high school or your uni degree with C+'s. God is not just the God of the Bible. He is the God of every part of your life. If God has put potential in you to be potentially gaining B+ given all your commitments (i.e. costs, in the profit equation), then this is His investment in the risk free interest rate asset. He expects no less than B+. If you bite the bit and work hard and got an A, that is what He calls an economic profit -- such a result would cause Him to prefer to invest in you.
Likewise, it is not sufficient for you to be adept at making money but bear no interest in investing your riches in a bank beyond earth. These ones wouldn't even make it into heaven.
But realistically, we get people of this kind -- we get people who have had a good education, relatively Godly, good at mentoring others who are Christians, but bear no fruit outside the church building, be it due to fear, due to ignorance, due to complacency, due to laziness, pride... whatever.
Typing all these, I see my own personal shortfalls/ shortcomings/ 虧欠, in every single one of the three scenarios of people's state, and am alarmed that if I do not start fixing these soon, the threat of hell awaits me -- yes, even me, for it is not just how we start running the road of faith, but how we end. And it is not 'once saved always saved', but rather, 'continually being saved with patience 忍耐, waiting 等候, and perseverance 堅持 till the end'. There is so much fruit to bear. I need to try harder so that God will see a return from me that is worth His investment. Starting from CT7 - Econ.
*Back to study*
------------------------------------------------------------------------------------------------------------------------------------
Footnote:
Here is another excerpt as a reminder.
Matthew 7
“Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it. But small is the gate and narrow the road that leads to life, and only a few find it. .......
A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. Thus, by their fruit you will recognize them.“Not everyone who says to me, ‘Lord, Lord,’ will enter the kingdom of heaven, but only the one who does the will of my Father who is in heaven. Many will say to me on that day, ‘Lord, Lord, did we not prophesy in your name and in your name drive out demons and in your name perform many miracles?’ Then I will tell them plainly, ‘I never knew you. Away from me, you evildoers!’
Woke up about an hour ago to start studying for my upcoming actuarial exam CT7 - Economics. Really want to finish reading chapter 10 today cuz I should have finished it last night but was too brain dead.... so.....
Studying my Econ textbook just then, and came across this on pg 203-4, that really hit something deep and reminded me....:
----Textbook excerpt----
What determines the normal rate of profit? It has two components. Firstly, capital cost. This is the interest that could have been earned by lending it in some riskless asset. Nobody would set up a business unless they expect to earn at least this rate of profit. Running a business, however, is far from riskless. Hence a second element is a return to compensate for tisk. Thus:
Normal Profit (%) = rate of interest on riskless loan + a risk premium.
Thus if owners of a business can earn normal profit, they will (just) be content to remain in that industry. If they earn more than normal profit, they will also (obviously) prefer to stay in business. If they earn less than normal profit, then after a time, they will consider leaving and using their captial for some other purpose. Given that normal profits are included in costs, any profit that is shown diagrammatically (in Figure 10.7) must therefore be over and above normal profit. This profit is known by several names: supernormal profit, pure profit, economic profit, abnormal profit, or sometimes, simply profit.
(Graph here. y axis = money in pounds, x axis = Quantity, AR = Average Revenue, AC = Average Cost,
MC = Marginal Cost i.e. the cost for producing one more unit of output,
MR = Marginal revenue i.e. the revenue from producing one more unit/qty
of output.
Where the quantity e.g. 3 hits the AR and AC curves, and AR > AC at that point then there is economic profit. If AR < AC as in Fig 10.8 then we incur a loss in the economic sense. When economic loss is great enough, even an accounting loss is incurred.
Definition here: Accounting profit = Econ profit - opportunity costs.)
Where the quantity e.g. 3 hits the AR and AC curves, and AR > AC at that point then there is economic profit. If AR < AC as in Fig 10.8 then we incur a loss in the economic sense. When economic loss is great enough, even an accounting loss is incurred.
Definition here: Accounting profit = Econ profit - opportunity costs.)
----End Textbook excerpt----
Reading this, it really hit me -- God is a wise investor. It reminds me of the parable of the fruitless tree, where the vineyard gardener had a conversation with the vineyard owner ---- excerpt here -----
Luke 13
Now there were some present at that time who told Jesus about the Galileans whose blood Pilate had mixed with their sacrifices. Jesus answered, “Do you think that these Galileans were worse sinners than all the other Galileans because they suffered this way? I tell you, no! But unless you repent, you too will all perish. Or those eighteen who died when the tower in Siloam fell on them—do you think they were more guilty than all the others living in Jerusalem? I tell you, no! But unless you repent, you too will all perish.”
Then he told this parable: “A man had a fig tree growing in his vineyard, and he went to look for fruit on it but did not find any. So he said to the man who took care of the vineyard, ‘For three years now I’ve been coming to look for fruit on this fig tree and haven’t found any. Cut it down! Why should it use up the soil?’
“‘Sir,’ the man replied, ‘leave it alone for one more year, and I’ll dig around it and fertilize it. If it bears fruit next year, fine! If not, then cut it down.’”
--- End Luke 13 Excerpt ----
I've underlined the parallel verses between the economics textbook and the parable here.
Hence for God, as we are His investments, it seems, that for God to consider something a normal profit, it is that we at least bear some fruit. Even if our leaves are as green and lush as they can be, our bark strong and without worms or pollutants, however to God, the lack of fruit causes Him to reconsider other uses for His capital and time. In the vineyard parable, the gardener desperately was trying to save the tree from being perish and incinerated, could almost hear him say "it's all up to you now, come on! come on! 我能做的我都做了，你要爭氣啊！" as if letting a puppy loose to navigate through the obstacle course but being on the other side calling its name in hope that the puppy will run towards the direction of his voice.
Many might think that to bear fruit is simply to have good ethics or to lead many to Christ. But alas, that is not so. To bear fruit, is to, in every aspect of your life, return to God with investment returns in His eyes. It is no use that you are a super Godly Christian who knows the Bible back to front but failed high school or your uni degree with C+'s. God is not just the God of the Bible. He is the God of every part of your life. If God has put potential in you to be potentially gaining B+ given all your commitments (i.e. costs, in the profit equation), then this is His investment in the risk free interest rate asset. He expects no less than B+. If you bite the bit and work hard and got an A, that is what He calls an economic profit -- such a result would cause Him to prefer to invest in you.
Likewise, it is not sufficient for you to be adept at making money but bear no interest in investing your riches in a bank beyond earth. These ones wouldn't even make it into heaven.
But realistically, we get people of this kind -- we get people who have had a good education, relatively Godly, good at mentoring others who are Christians, but bear no fruit outside the church building, be it due to fear, due to ignorance, due to complacency, due to laziness, pride... whatever.
Typing all these, I see my own personal shortfalls/ shortcomings/ 虧欠, in every single one of the three scenarios of people's state, and am alarmed that if I do not start fixing these soon, the threat of hell awaits me -- yes, even me, for it is not just how we start running the road of faith, but how we end. And it is not 'once saved always saved', but rather, 'continually being saved with patience 忍耐, waiting 等候, and perseverance 堅持 till the end'. There is so much fruit to bear. I need to try harder so that God will see a return from me that is worth His investment. Starting from CT7 - Econ.
*Back to study*
------------------------------------------------------------------------------------------------------------------------------------
Footnote:
Here is another excerpt as a reminder.
Matthew 7
“Enter through the narrow gate. For wide is the gate and broad is the road that leads to destruction, and many enter through it. But small is the gate and narrow the road that leads to life, and only a few find it. .......
A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. Thus, by their fruit you will recognize them.“Not everyone who says to me, ‘Lord, Lord,’ will enter the kingdom of heaven, but only the one who does the will of my Father who is in heaven. Many will say to me on that day, ‘Lord, Lord, did we not prophesy in your name and in your name drive out demons and in your name perform many miracles?’ Then I will tell them plainly, ‘I never knew you. Away from me, you evildoers!’
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