Observation: This very simple proverb - especially verse 4 - touches on a difficult topic, which is predestination. It seems to state that the Lord makes wicked people for the purpose of punishing them, and this would imply that some people are both a) wicked not by their choices, but by the choice of the Lord, and b) destined from birth to divine punishment.
Yet neither of these statements make sense, for we know that the Lord does not seek for anyone to be punished but that all be redeemed in Christ, and that the Lord detests sin and thus does not create people in order to perpetuate sinning. Therefore, this proverb must be read in a different structure where "purpose" is the main subject.
The Lord has his own purposes, and everything he has made aligns to those purposes. Yet one of those purposes is to define both holy goodness and evil wickedness, and to guide all people to selecting goodness. Wicked people are punished, to both correct them and to guide others toward holiness, in alignment with God's purposes.
Application: I look for God's purpose in my life, and I tend to look for it in the small details of ... everything, but most notably my work. However, the Lord also has grand designs and purposes, and orchestrates all creation toward that vision. This is so complex of a thing that even the idea of wicked people being punished fits within the design, not because God likes to punish, but because he values how correction guides us all.
I'm sure I have been wicked in my life, and I have been corrected ... punished. I am different than I was three, ten, or thirty years ago. I do desire different things in life, and most of them involve Jesus. I still make mistakes to be certain, yet more and more I desire to know God's purposes in general, and his purposes for my life specifically, and to align to them.
Prayer: Lord, you purposes are wonderful. May I find my place in your grand design for creation, and may I find the work that I can truly commit to you. In the mean time, I strive to walk humbly with you this day and every day. Amen.