This form of bad theology is one you've probably been exposed to on tv or the internet, because it is taught by many charismatic churches today. It was popularized by Kenneth Hagan, a well-known figure in post-World War II Pentecostalism. He called it The Word of Faith. Many of his ideas were adapted from the work of early twentieth century preacher E.W. Kenyon who was influenced by groups like Christian Scientists (notice how false teachings morph and spread!).
The underlying premise of these false teachers is that true reality is spiritual, not physical, and through a positive mental attitude humans can create their own reality -- choosing health or wealth, instead of sickness or poverty. Any suffering we experience is caused by our own negative thoughts. The solution is to create a different reality through positive faith-filled thoughts and words.
These beliefs are dangerous because they cause people to ignore reality. They may refuse medical treatment or fail to acknowledge and correct financial problems. When the health and wealth they've been told to imagine does not materialize, many become disillusioned and leave Christianity completely.
What's the remedy? Know the Bible. Jesus did not promise perpetual health or prosperity. The Scriptures teach that the difficulties we face are caused by sin. Not necessarily a sin that we have personally committed -- our world and each one of us are infected with original sin which distorts God's good creation. That is why the Lutheran service begins with confession. We cannot overcome our problems by positive words and thoughts, but by trusting God to forgive us, be with us, and provide what is best for us. As the apostle Paul writes:
"I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want. I can do all this through him who gives me strength." Phil. 4:12-13
For more about false teaching see these posts:
Law or License?
Dietrich Bonhoeffer on False Teaching
A Pitfall of Legalism
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