Written Rules: Religion

The second chapter in Part III of Social Economics focuses on how religion shapes individual and societal choices and possibilities in economic contexts. Sunday baseball (once banned) and Chick-fil-A (closed on Sunday to observe the Sabbath) are examples. So, too, are findings that belief in Hell is correlated with economic growth and that religiosity is associated with more favorable attitudes toward free markets. In multi-country surveys, more religious individuals tend to work more hours, be more trusting, and save more. Religion has important effects on cultural norms which restrain the worst vices of capitalism while at the same time often promoting its best aspects. Religion appears to limit corporate incidents of financial reporting irregularities, shareholder lawsuits, and management compensation packages (with more generous worker pay). Religious emphasis on thrift and careful investment promotes formation of physical capital. Human capital is encouraged through education. And, as a social endeavor, religion enhances community, particularly bonding social capital (as described in Chapter 19 ). Given the economically relevant influence of religion, the high levels of religiosity in the U.S. and its recent sharp decline foreshadow important implications for the U.S. economy.