Name one word about what money means to you.
We make many decisions about money, which in turn affect our lives, the lives of others, and the world in many ways:
- How we spend it: tzedakah, consumption, savings, investment
- How we acquire it: work (how much to work, what kind of work), debt
How does your Jewish background influence your view of acquiring money? How is this consistent or at odds with secular views on money or your personal experiences?
How does your Jewish background influence your view of spending money? How is this consistent or at odds with secular views on money or your personal experiences?
How do we decide whom to provide tzedakah for? Jews or non-Jews? Local causes or international ones? Causes that save lives or causes that enrich lives?
Jewish texts offer guidance on many of these aspects of our economic lives.
The Torah requires giving tzedakah, and further sources outline how much should be given
(ה) בָּא הֶעָנִי וְשָׁאַל דֵּי מַחֲסוֹרוֹ וְאֵין יַד הַנּוֹתֵן מַשֶּׂגֶת נוֹתֵן לוֹ כְּפִי הַשָּׂגַת יָדוֹ וְכַמָּה עַד חֲמִישִׁית נְכָסָיו מִצְוָה מִן הַמֻּבְחָר. וְאֶחָד מֵעֲשָׂרָה בִּנְכָסָיו בֵּינוֹנִי. פָּחוֹת מִכָּאן עַיִן רָעָה. וּלְעוֹלָם לֹא יִמְנַע עַצְמוֹ מִשְּׁלִישִׁית הַשֶּׁקֶל בְּשָׁנָה. וְכָל הַנּוֹתֵן פָּחוֹת מִזֶּה לֹא קִיֵּם מִצְוָה. וַאֲפִלּוּ עָנִי הַמִּתְפַּרְנֵס מִן הַצְּדָקָה חַיָּב לִתֵּן צְדָקָה לְאַחֵר:
(5) 5. When a poor person comes and asks for his needs to be met and the giver does not have the financial capacity, he should give him according to his financial capacity. How much? The most desirable way of performing the mitzvah is to give one fifth of one's financial resources. Giving one tenth is an ordinary measure. Giving less [than that] parsimony. A person should refrain from giving less than a third of a shekel a year. A person who gives less than this has not fulfilled the mitzvah. Even a poor person who derives his livelihood from charity is obligated to give charity to another person.
Giving to the poor rather than to friends is consistent with the economic concept of diminishing marginal utility
(יז) מוּטָב לָאָדָם לְהַרְבּוֹת בְּמַתְּנוֹת אֶבְיוֹנִים מִלְּהַרְבּוֹת בִּסְעֻדָּתוֹ וּבְשִׁלּוּחַ מָנוֹת לְרֵעָיו. שֶׁאֵין שָׁם שִׂמְחָה גְּדוֹלָה וּמְפֹאָרָה אֶלָּא לְשַׂמֵּחַ לֵב עֲנִיִּים וִיתוֹמִים וְאַלְמָנוֹת וְגֵרִים. שֶׁהַמְשַׂמֵּחַ לֵב הָאֻמְלָלִים הָאֵלּוּ דּוֹמֶה לַשְּׁכִינָה שֶׁנֶּאֱמַר (ישעיה נז-טו) "לְהַחֲיוֹת רוּחַ שְׁפָלִים וּלְהַחֲיוֹת לֵב נִדְכָּאִים":
(17) It is good for people to increase in their gifts to the poor more than they increase in their meal and the gifts that they send to their companions, for there is no greater or more glorious joy than to bring happiness to the hearts of the poor and orphans and widows and strangers, for he who brings happiness to the hearts of these unfortunate people is compared to the Divine Presence, as it says, "To revive the spirit of the humble, and to revive the heart of the contrite ones" (Isaiah 57:15).
Further sources outline a hierarchy of giving - loans are at the top of this hierarchy
(ז) שמנה מעלות יש בצדקה זו למעלה מזו מעלה גדולה שאין למעלה ממנה זה המחזיק ביד ישראל שמך ונותן לו מתנה או הלואה או עושה עמו שותפות או ממציא לו מלאכה כדי לחזק את ידו עד שלא יצטרך לבריות לשאול.
(ח) פחות מזה הנותן צדקה לעניים ולא ידע למי נתן ולא ידע העני ממי לקח שהרי זו מצוה לשמה.
(ט) פחות מזה שידע הנותן למי יתן ולא ידע העני ממי לקח.
(י) פחות מזה שידע העני ממי נטל ולא ידע הנותן.
(יא) פחות מזה שיתן לו בידו קודם שישאל.
(יב) פחות מזה שיתן לו אחר שישאל.
(יג) פחות מזה שיתן לו פחות מן הראוי בסבר פנים יפות.
(יד) פחות מזה שיתן לו בעצב.
(7) There are eight levels of charity, one above the other. The greatest level that has nothing above it is to strengthen the hand of a Jew who has become poor and give him a gift or loan or create a partnership with him or make up some work for him, so as strengthen his hand until he does not [any longer] need to ask others [for help].
(8) Lower than that is when one gives charity to the poor and does not know to whom he is giving, and the poor person does not know from whom he is taking - since, behold, this is [performance of] the commandment for its own sake.
(9) Lower than that is when the giver knows to whom he is giving, but the poor person does not know from whom he is taking.
(10) Lower than that is when the poor person knows from whom he took and the giver does not know.
(11) Lower than that is when one gives it to him in his hand before he asks.
(12) Lower than that is when he gives it to him after he asks.
(13) Lower than that is when he gives him less than what is fit, [but] with a pleasant demeanor.
(14) Lower than that is when he gives it to him sadly.
But the Torah puts restrictions on lending: lenders cannot charge interest and loans are void in the seventh year of the shmita cycle. One result of these values is the interest-free Hebrew loan societies that have been established to provide for community needs and have been instrumental in particular for providing for new immigrants, potentially in situations when in may be difficult for them to obtain funds otherwise.
However, these rules have been loophole-d away for the greater good of encouraging Jews to lend to other Jews through the institutions of heter iska and pruzbul. [Are there other laws that could be loophole-d away for the greater good? How do economic considerations play into our willingness to be creative with the law more than other considerations?] The result, however, is that borrowers have no way out of debt and they are liable for interest in addition to principal. [Is that good or bad?]
We have an imperative for tzedakah, but what about savings? There is some source material on the use of tithes for savings, though that does not seem to be their main purpose. Is there some role for communal forced savings? If I give more of my income as tzedakah (or spend it) I can then receive from the community if I am in need, but there is a cost to this transfer above me having saved for myself. On the other hand, if I hoard my savings for tomorrow, I am keeping them out of reach for people who could use them today.
(י) הָבִיאוּ אֶת כָּל הַמַּעֲשֵׂר אֶל בֵּית הָאוֹצָר וִיהִי טֶרֶף בְּבֵיתִי וּבְחָנוּנִי נָא בָּזֹאת אָמַר יְהוָה צְבָאוֹת אִם לֹא אֶפְתַּח לָכֶם אֵת אֲרֻבּוֹת הַשָּׁמַיִם וַהֲרִיקֹתִי לָכֶם בְּרָכָה עַד בְּלִי דָי.
(10) Bring ye the whole tithe into the store-house, That there may be food in My house, And try Me now herewith, Saith the LORD of hosts, If I will not open you the windows of heaven, And pour you out a blessing, That there shall be more than sufficiency.
The benefits of giving tzedakah: perhaps it changes our relationship to money; alternatively, perhaps by investing others or the world around us, we also benefit ourselves
בעא מיניה רבי מר' ישמעאל ברבי יוסי עשירים שבא"י במה הן זוכין א"ל בשביל שמעשרין שנאמר(דברים יד, כב) עשר תעשר עשר בשביל שתתעשר
Rabbi asked R. Ishmael son of R. Jose, The wealthy in the Land of Israel, whereby do they merit [wealth]? He replied to him; because they tithe, as it is written, 'Asser te'asser (Deuteronomy 14,24) [which means], give tithes ['asser] so that thou mayest become wealthy [tith'asser].
איזהו עשיר? השמח בחלקו, שנאמר: (תהלים קכח ב): "יגיע כפיך כי תאכל אשריך וטוב לך".אשריך, בעולם הזה .וטוב לך, לעולם הבא.
Who is the rich one? He who is happy with his lot, as it says, "When you eat [from] the work of your hands, you will be happy, and it will be well with you" (Psalms 128:2). "You will be happy" in this world, and "it will be well with you" in the world to come.
How does marriage tie into this discussion?
(ג) לְפִי מַה שֶּׁחָסֵר הֶעָנִי אַתָּה מְצֻוֶּה לִתֵּן לוֹ. אִם אֵין לוֹ כְּסוּת מְכַסִּים אוֹתוֹ. אִם אֵין לוֹ כְּלֵי בַּיִת קוֹנִין לוֹ. אִם אֵין לוֹ אִשָּׁה מַשִּׂיאִין אוֹתוֹ. וְאִם הָיְתָה אִשָּׁה מַשִּׂיאִין אוֹתָהּ לְאִישׁ. אֲפִלּוּ הָיָה דַּרְכּוֹ שֶׁל זֶה הֶעָנִי לִרְכֹּב עַל הַסּוּס וְעֶבֶד רָץ לְפָנָיו וְהֶעֱנִי וְיָרַד מִנְּכָסָיו קוֹנִין לוֹ סוּס לִרְכֹּב עָלָיו וְעֶבֶד לָרוּץ לְפָנָיו שֶׁנֶּאֱמַר (דברים טו ח) "דֵּי מַחְסֹרוֹ אֲשֶׁר יֶחְסַר לוֹ". וּמְצֻוֶּה אַתָּה לְהַשְׁלִים חֶסְרוֹנוֹ וְאֵין אַתָּה מְצֻוֶּה לְעַשְּׁרוֹ:
(3) 3. You are obligated to give the poor person what he lacks. If he does not have clothing, clothe him. If he does not have furniture, buy him furniture. If he is single, marry him/her off. Even if the poor person used to be extremely rich and ride a horse everywhere and had a slave to run before him, provide that as well as it says "[make up to him] his lack which he lacks." You are commanded to make up what he lacks, but not to enrich him.
Ultimately, we want people to be able to support themselves. While the Torah gives us constraints on times when we can work, how do we decide what kind of work to do?
(ז) שמנה מעלות יש בצדקה זו למעלה מזו מעלה גדולה שאין למעלה ממנה זה המחזיק ביד ישראל שמך ונותן לו מתנה או הלואה או עושה עמו שותפות או ממציא לו מלאכה כדי לחזק את ידו עד שלא יצטרך לבריות לשאול.
(7) There are eight levels of charity, one above the other. The greatest level that has nothing above it is to strengthen the hand of a Jew who has become poor and give him a gift or loan or create a partnership with him or make up some work for him, so as strengthen his hand until he does not [any longer] need to ask others [for help].
A final thought: On how to live
And thou say in thy heart: ‘My power and the might of my hand hath gotten me this wealth.’ But thou shalt remember the LORD thy God, for it is He that giveth thee power to get wealth, that He may establish His covenant which He swore unto thy fathers, as it is this day.