 If we are going to understand the Bible rightly, we have to be able to distinguish properly between God's two words: law and gospel. All of God's Word in the Bible comes to us in two forms of speech: God's word of demand (law) and God's word of deliverance (gospel). The law tells us what to do and the gospel tells us what God has done. As I mentioned in my previous post, both God's law and God's gospel are good and necessary, but both do very different things. Serious life confusion happens when we fail to understand their distinct "job descriptions." We'll wrongly depend on the law to do what only the gospel can do, and vice versa.
For example, Kim and I have three children: Gabe (17), Nate (15), and Genna (10). In order to function as a community of five in our home, rules need to be established–laws need to be put in place. Our kids know that they can't steal from each other. They have to share the computer. Since harmonious relationships depend on trust, they can't lie. Because we have two cars and three drivers, Gabe can't simply announce that he's taking one of the cars. He has to ask ahead of time. And so on and so forth. Rules are necessary. But telling them what they can and cannot do over and over won't change their heart. When one of our kids (typically Genna) throws a temper tantrum, thereby breaking one of the rules, we can send her to her room and take away some of her privileges. But neither the rule nor the enforcement of punishment has the power to make her sorry for what she's done. At best, it can only produce "legal repentance"–an external sorrow motivated by a self-preservational fear of getting punished again. For Kim and I to depend on the law to accomplish for Genna what only the gospel can accomplish, would be a huge mistake–as if imposing rules and enforcing consequences carries the power to effect heart change. The law reveals sin but is powerless to remove sin. That's not part of its job description. It points to righteousness but can't produce it. It shows us what godliness is, but it cannot make us godly. As Martin Luther said, "Sin is not canceled by lawful living, for no person is able to live up to the Law. Nothing can take away sin except the grace of God." 
While there are a host of great resources available to help you better understand the important distinction between the law and the gospel, I found the most helpful resource to be John Pless' easy-to-read Handling the Word of Truth: Law and Gospel in the Church Today. In the first chapter he summarizes C.F.W. Walther's six ways in which the law and the gospel are different. I will highlight the first three today and the second three later this week. First, the Law differs from the Gospel by the manner in which it is revealed. The Law is inscribed in the human heart, and through it is dulled by sin, the conscience bears witness to its truth (Romans 2:14-15). "The Ten Commandments were published only for the purpose of bringing out in bold outline the dulled script of the original Law written in men's hearts" (Walther, 8). That is why the moral teachings of non-Christian religions are essentially the same as those found in the Bible. Yet it is different with the Gospel. The Gospel can never be known from the conscience. It is not a word from within the heart; it comes from outside. It comes from Christ alone. "All religions contain portions of the Law. Some of the heathen, by their knowledge of the Law, have advanced so far that they have even perceived the necessity of an inner cleansing of the soul, a purification of the thoughts and desires. But of the Gospel, not a particle is found anywhere except in the Christian religion" (Walther, 8). The fact that humanity is alienated from God, in need of cleansing and reconciliation, is a theme common to many belief systems. It is only Christianity that teaches that God himself justifies the ungodly. Second, the Law is distinct from the Gospel in regard to content. The Law can only make demands. It tells us what we must do, but it is impotent to redeem us from its demands (Galatians 3:12-14). The Law speaks to our works, always showing that even the best of them are tainted with the fingerprints of our sin and insufficient for salvation. The Gospel contains no demand, only the gift of God's grace and truth in Christ. It has nothing to say about works of human achievement and everything to say about the mercy of God for sinners. "The Law tells us what we are to do. No such instruction is contained in the Gospel. On the contrary, the Gospel reveals to us only what God is doing. The Law is speaking concerning our works; the Gospel, concerning the great works of God" (Walther, 9). Third, the Law and the Gospel differ in the promises that each make. The Law offers great good to those who keep its demands. Think what life would be like in a world where the Ten Commandments were perfectly kept. Imagine a universe where God was feared, loved, and trusted above all things and the neighbor was loved so selflessly that there would be no murder, adultery, theft, lying, or coveting. Indeed such a world would be paradise. This is what the Law promises. There is only the stipulation that we obey its commands. Do the Law and you will live, says Holy Scripture (Leviticus 18:5; Luke 10:25-28). The Gospel, by contrast, makes a promise without demand or condition. It is a word from God that does not cajole or manipulate but simply gives and bestows what it says, namely, the forgiveness of sins. Luther defined the Gospel as "a preaching of the incarnate Son of God, given to us without any merit on our part for salvation and peace. It is a word of salvation, a word of grace, a word of comfort, a word of joy, a voice of the bridegroom and the bride, a good word, a word of peace." This is the word that the church is to proclaim throughout the world (Mark 16:15-16). It is the message that salvation is not achieved but received by grace through faith alone. (Ephesians 2:8-9). The Gospel is a word that promises blessing to those who are cursed, righteousness to the unrighteous, and life to the dead.
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