But now apart from the Law, the righteousness of God has been manifested, being witnessed by the Law and the Prophets: that is, the righteousness of God through faith in Jesus Christ for all those who believe; for there is no distinction; for all have sinned and fall short of the glory of God, being justified as a gift by His grace through the redemption which is in Christ Jesus; whom God displayed publicly as a propitiatory sacrifice in His blood through faith. This was to demonstrate His righteousness, because of the passing over of the sins previously committed in the forbearance of God; for the demonstration of His righteousness at the present time, so that He would be just and the justifier of the one who is of the faith of Jesus.
Paul says that in the death of Jesus, the “righteousness of God has been manifested” and again that Jesus’ death “was to demonstrate His righteousness.” How does the death of Christ on the cross manifest and demonstrate God’s righteousness?
According to penal substitution, the need for God to demonstrate His righteousness arises from actions on His part that make him seem unrighteous. Specifically, God’s action of “passing over the sins previously committed in the forbearance of God” is taken to mean that God left sins unpunished prior to the coming of Christ, and therefore has made Himself to look unjust, unrighteous, and unfaithful to His commitment to uphold His own worth and holiness in punishing sin. However, penal substitution will argue, God’s action in “displaying publicly” or “setting forth” Jesus as a sacrifice shows Himself faithful in punishing sin by pouring out the withheld punishment on Jesus on the cross. When the text says that God set forth Jesus as a “propitiatory sacrifice” that word “propitiation” means the averting of wrath. So penal substitution takes that to mean that God withheld wrath from sins past, and displaced that wrath on Jesus instead in the event of the crucifixion.
But let’s ask the question: does a person really come away from the Old Testament feeling like God is not one who punishes sin? Look at this brief sketch of judgment in the Old Testament: humanity is spiritually dead in their own sin, cast out of Paradise and God’s presence and consigned to physical death, a global flood, the scattering of all nations following the tower of Babel, fire and brimstone on Sodom and Gomorrah, the ten plagues on Egypt including the death of all the firstborn, 40 years wandering in the harsh wilderness, the annihilation of the Canaanites, the persecutions under foreign powers and the wars of the Judges, and then exile to Assyria, then Babylon, then rule under Persia, then Greece, then Rome. Furthermore, when Paul begins his argument in Romans, he begins right off the bat saying that “the wrath of God is revealed (past tense and present tense) from heaven against all ungodliness and unrighteousness.” The following paragraphs of his argument in Romans 1 make all sorts of references to Genesis, making it clear that Paul is arguing about the wrath of God revealed against humanity since humanity’s original Fall. Remember also what Paul says in Galatians 3. The whole problem of Galatians 3 is that Israel is under a curse. So penal substitution advocates have to argue that though Israel is in bondage to the curse of the law, having drank the cup of God’s anger to the dregs, and though the wrath of God has been revealed from heaven against all ungodliness of humanity, God also seems negligent in punishing sin. That makes absolutely no sense. There is no way that Paul or other Jews in the first century would be sitting around thinking, “Gosh, when is this softy, pacifist God going to start taking sin seriously and execute His punishments?” Yes, they were hoping that God would punish Rome, the current foreign empire they were under, but the narrative context for such punishment would be the elevation of Israel to reign over the world. Again, the real question against God’s justice is when He will restore Israel and the rest of the nations through her; any expected outpouring of wrath would fit within the pursuit of that goal.
Look at these strong statements from the prophets Isaiah and Daniel that God has been active in punishing Israel for her sins. In Isaiah 51:17, the prophet says to Jerusalem, “Arise, O Jerusalem, You who have drunk from the LORD’S hand the cup of His anger; The chalice of reeling you have drained to the dregs.” Jerusalem had drained the cup of God’s wrath down to the dregs. Is that compatible with the idea that God seemed to let their sins go unpunished? Similarly, in Daniel 9:11, Daniel confesses that, “Indeed all Israel has transgressed Your law and turned aside, not obeying Your voice; so the curse has been poured out on us, along with the oath which is written in the law of Moses the servant of God, for we have sinned against Him.” Again, it makes no sense to have these verses in mind and then think that there is some major problem of God appearing negligent in punishing sin.
Furthermore, in those instances in which God does withhold punishment from Israel, as in the moments following the incident with the Golden Calf, it is to prove His justice in the sight of the nations (see Exodus 32). As Isaiah 48:9 says, “For the sake of My name I delay My wrath, And for My praise I restrain it for you, In order not to cut you off.” Withholding punishment from Israel proves that He is just, that is, faithful to His promises to bless all nations through Abraham's offspring.
Rather, it makes far more sense that God’s action of “passing over the sins previously committed” refers to His delay in purging and purifying Israel from sin. God’s delay in purging sin may indeed have included certain instances in which wrath was withheld, but the overall charge against God’s faithfulness/justice is that God seems truant in fulfilling His promise to bless all nations through Abraham’s offspring, that is, Israel. The complaint is, “God, if we are the nation through whom you are to save the world and reverse Adam’s curse and crush the serpent, why do we struggle with sin just like the other nations, and why have we been stomped on by wicked and ungodly empires for the last 500 years?” Remember, because of God’s promises, Israel’s failure is God’s failure. If God fails to save the world through Israel, then He is an unjust God.
But through Jesus and his death and resurrection, God has fulfilled his promises to bless all nations through Abraham's offspring. Through his death he has purified humanity of sin, and by his resurrection, brought us out of exile to sin, Satan, and death. God is just (faithful to bless all nations through Abraham's offspring) and the justifier of the one who is of the faith of Jesus (regardless of whether that person is Jew or Gentile).