James Leo Garrett Jr.’s critique of traditional Protestant hermeneutics centers on a fundamental methodological flaw he identifies in both Covenantal and Dispensational systems. He argues that both frameworks, in their pursuit of theological coherence, impose an external systematic grid onto the biblical text. This act of imposition, according to Garrett, prioritizes the system over the text itself, often at the cost of genuine exegetical fidelity. The result is a reading of Scripture that conforms to a pre-determined structure rather than allowing the text's own internal logic and development to speak.

Garrett diagnoses Covenant theology as a form of Covenantal Monism. He contends that its reliance on a single, overarching 'covenant of grace' functions as a reductive principle. This monistic lens tends to flatten the distinct historical and theological contours of the various biblical covenants—the Abrahamic, Mosaic, Davidic, and New Covenants—by subsuming them into one continuous administration of grace. While this creates a powerful narrative of redemptive unity, Garrett asserts that it often achieves this unity by minimizing the genuine discontinuities, tensions, and unique teleological functions of each covenant as presented within the Hebrew Bible. The specific stipulations and historical particularities of the Mosaic Law, for example, risk being spiritualized or relativized to fit the singular theme of grace, thereby obscuring their role within Israel's narrative.

In his assessment of Dispensationalism, Garrett identifies a different but related form of reductionism: a rigid dualism. This system's sharp distinction between Israel and the Church creates two parallel, and often disconnected, divine programs. This dualistic framework, particularly in its classic form, effectively bifurcates the biblical narrative. While it excels at preserving the unique, national promises made to Israel concerning land and kingdom, it does so at the cost of the organic continuity presented in the New Testament, where the Church is depicted as the fulfillment of Old Testament promises.

Garrett argues this dualistic grid forces a choice where the text suggests none, creating an artificial separation that struggles to account for the ways New Testament authors saw their communities as heirs to Abrahamic and Davidic promises. The system's structure, with its distinct dispensations, can overshadow the Bible's own progressive and unified redemptive-historical storyline.

Garrett reframes the classic 'Problem of the Old Testament' beyond a simple Christological question (i.e., 'How does it point to Christ?'). He posits a structural and teleological problem inherent within the Hebrew Bible itself. He outlines this as a 'Threefold Problem' concerning the dynamic and often conflicting interplay between the Law, the Land, and the People.

• The Law: The Torah presents a divine standard that the people consistently fail to meet, creating a narrative of covenant failure.
• The Land: The promise of the land is central, yet Israel’s hold on it is tenuous, culminating in exile. The land is both a gift and a source of conflict.
• The People: The chosen people are frequently portrayed as rebellious and unfaithful, placing them at odds with both the Law and the conditions for possessing the Land.

Garrett contends that these three elements are not in simple harmony but exist in a state of unresolved tension throughout the Hebrew Bible's narrative. This internal structural teleology—the text's own forward-pointing, unresolved plot—is the very thing that systematic grids tend to resolve prematurely. They provide answers before the text has fully articulated its own questions.

His critique culminates in the assertion that both Covenantal and Dispensational hermeneutics fail to grapple adequately with this threefold problem. Covenantalism tends to dissolve the tension by allegorizing or spiritualizing elements like the land, while Dispensationalism postpones the resolution to a future, earthly millennium. In both cases, the systematic solution takes precedence, and the difficult, often paradoxical, witness of the Hebrew Bible is not allowed to stand on its own terms.