The Wealth of Nations
Mishpatim teaches us that a Torah-based, economically successful society must be founded on the principle of self-interest.
Mekor’s 6th annual gala will be held on Sunday, February 26, just about one week from today. We hope you will join us for this festive evening, as we honor Rebecca Somach & Shaul Kushinsky and Alumni of the Year Miriam & David Morley. The gala will feature influencer and Mekor alum Lizzy Savetsky as emcee and hilarious comedian Eli Lebowicz. You can reserve tickets and place ads in our tribute book here. Please note that the deadline for ads is Monday, February 20th.
The Gala is not only a terrific experience, but also Mekor’s most important fundraiser. It is fitting that the Parshiot we read in the two weeks preceding the gala are related to money. This week’s Parsha, Parshat Mishpatim, addresses, among other things, economic and tort law. In addition, Parshat Shekalim, the first of the special Parshiot we read this time of year, is usually read the week of Parshat Mishpatim and covers donations to the Mishkan and Beit Hamikdash, which were used for operational expenses. Next week’s parsha, Parshat Terumah, also deals with similar donations.
Parshat Mishpatim can be very challenging to understand, and I spent several years in Yeshiva trying to make sense of it. The sequence of the topics in Parshat Mishpatim is counterintuitive, and many of the rules seem impractical and odd. However, I think there are a few foundational ideas we can discern if we look more closely at the way the Torah presents economic law.
One of the most important principles, I believe, is the very same philosophy that 18th-century Scottish economist Adam Smith puts forward in his book The Wealth of Nations: The idea that a successful economy must be based on self-interest. Smith's conclusion was that self-interest fosters an environment of respect for property and property rights, and a competitive market promotes greater efficiency and productivity. He believed that people are most effective when they respond to incentives. I think the Torah in Parshat Mishpatim preceded Smith in these ideas. The economic laws outlined in Mishpatim emphasize the significance of self-interest and self-ownership, extending from the physical to the spiritual realm. Of course, economic philosophy is not a simple matter, and there are other necessary conditions for a thriving economy. Nevertheless, Parshat Mishpatim asserts that the pursuit of self-interest is the fundamental basis of a Torah-based economic society.
Intriguingly, the Gemara in Mesechet Shabbat 31a associates the entire section of Nezikin, which deals with Jewish Civil Law, with the term "Yeshuot," meaning salvation.
יְשׁוּעוֹת — זֶה סֵדֶר נְזִיקִין / Salvations; that is the order of Nezikin
סדר נזיקין - מושיען מזהיר לפרוש מהיזק ומהתחייב ממון - Rashi
Why salvation? According to Rashi, studying Nezikin teaches one how to manage finances in a way that prevents damage to property or infringement on the ownership of others. This prevents financial loss and leads to "Yeshuot," or salvation. This apparently unusual explanation highlights the same message: self-interest is the driving force behind a Torah-based economy. Even when the goal is to safeguard others' property, the ultimate motivation is self-interest.
Additionally, as we discussed in Parshat Vayishlach, the Gemara in Chulin 91a and Sotah 12a says צדיקים ממונם חביב עליהן יותר מגופן, For a righteous person, their money is more valuable to them than their own body. This idea suggests that for Tzadikim, safeguarding oneself from financial harm is more critical than protecting oneself from physical harm. But why would righteous people care so much about their money? In my opinion, the Gemara suggests that Tzaddikim consider money as a manifestation of their identity and a reflection of their path, passion, and partnership with God. This concept also implies that financial matters have a significant impact on shaping one's identity.
I believe that the concept of self-interest can be traced back to the very formation of the Jewish people. When God tested Abraham, it is no coincidence that He used the same command in both the first and last of the ten tests: God declared, "Lech Lecha" or "Go for yourself". That's because the last thing God wanted was for Abraham to be selfless. Instead, God desired to have a deep and meaningful relationship with Abraham. As we have previously discussed, you cannot form a healthy relationship without first establishing your own sense of self. And establishing your sense of self necessitates the ability to value the ways in which you benefit from the relationship. In other words, you must recognize and pursue your own self-interest.
“I hold this to be the highest task of a bond between two people: that each should stand guard over the solitude of the other.”” - Rilke
We often associate the term selfishness, which is essentially synonymous with self-interest, with a negative and inconsiderate approach to life. Of course, taken to extremes, it can lead to harmful behavior and impede relationships. However, God did not create us to be martyrs, and part of cultivating healthy relationships involves recognizing and safeguarding our own needs. One of the primary reasons for this is that without a sense of self-identity, we cannot relate to others as equals. I cannot form a relationship if I am entirely dependent on the other person. In order to build a strong relationship, I must first be independent, so that we can relate as equals and work together as a team. To relate to God, as Abraham did, we must learn to develop ourselves in the context of our relationships, thereby maximizing our ability to connect with God and others. Ultimately, this is why the Torah emphasizes that a prosperous economy must be founded on the principle of self-interest. Shabbat shalom.