Home
/
RELIGION & LIBERTY ONLINE
/
What Christians can learn from Adam Smith’s ‘paradox of value’
What Christians can learn from Adam Smith’s ‘paradox of value’
May 8, 2025 1:22 PM

In a new video from TED Ed, Akshita Agarwal provides a quick lesson on Adam Smith’s “paradox of value” and the differences between “value in use” and “value in exchange.”

For Christians, there’s a crucial lesson here about the best way to meet humanneeds in the economic order,whether throughtrade policy, reducing price controls,orany number of other areas.Discerning “economic value” is a tricky thing, andfree economies are a handy tools for working through these thingsinpeaceful and productive ways.

But as Agarwal concludes, it also has implications forour everyday stewardship:

Utility applies not just to buying things, but to all our decisions, and the intuitive way to maximize it and avoid diminishing returns is to vary the way we spend our time and resources. After our basic needs are met, we’d theoretically decide to invest in choices only to the point they’re useful or enjoyable.

Of course, how effectively any of us manage to maximize utility in real life is another matter. But it helps to remember that the ultimate source of es from us: the needs we share, the things we enjoy, and the choices we make.

On this,the “ultimate source of value” is not so humanistic as Agarwal frames ithere, but in a Christian context,such a statementdoes illuminate the capacity God has given us as image bearers and co-creators. The important thing is that we don’t forget the actual beginning and end of that service.

Again, there is much we can learn from earthboundapproaches to maximizing “utility” and “happiness,” but our economic imaginations aremeant tostretch muchwider and higher than this, resistingidols of hedonism and utility and pressing on toward truth and goodness and beauty.

Ours is an economic witness that meets material needs and lifts up the “least of these” through work and trade and innovation, but our origins and ends arenot made of stuff of the earth.

Ourapproach to “value” and the pursuit thereof is bound to fall short if it fails toharmonize the material and the transcendent.At its core, our economic witness is only as powerful as its foundationin faithfulness to a decision-maker of a different sort —propelled by the power of the Spirit and oriented toward the glory of God in all things.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Capitalism and Christianity, part II
Jordan Ballor’s recent post on “Christian Reason and the Spirit of Capitalism” hit onto something big. In today’s New York Times, op-ed columnist David Brooks weighs in with a piece entitled “The Holy Capitalists”. (Once again, the Times has blocked access to non-subscribers. If you aren’t a subscriber, buy today’s Times just to read this column – it’s worth it.) Brooks calls the debate over the foundations of success the most important in the social sciences today and praises Rodney...
Amy Welborn’s blog on capitalism and Catholicism
The Acton debate on the relationship has featured blog posts on Rodney Stark and David Brooks’s column on Starks. Amy Welborn’s site has more in these two posts (here and here), with a somewhat lively debate in ments sections. Several of ments regard Max Weber’s thesis on the Protestant work ethic and capitalism, and reveal a misunderstanding of what makes for economic growth in Ireland and the lack of it in Latin America. It’s pretty obvious there are few Actonites...
Public v. private services
Fast Company Now is reporting that “for the first time, customer satisfaction with federal agency Websites has surpassed offline government services,” according to an American Customer Satisfaction Index report. What is especially noteworthy, however, is that online private sector services consistently rank higher in satisfaction than their governmental counterparts. “Where the gap between offline public and private services has narrowed, the report said, e-government is trailing far behind the private sector online. That, said ACSI chief Claes Fornell, shows room...
Santa’s little helper
In a not-so-subtle take-off of Donald Trump’s The Apprentice franchise, ExperiencePoint e up with a fun interactive game to challenge your event-planning and management skills. The background: Inspired by his favorite reality programs, Santa Claus invited eight elves to the North Pole for the purpose of selecting one as his new protégé. Through a series of rigorous petitions, Santa has whittled down the group to the final two candidates – congratulations, you’re one of them! Now you must manage a...
Toward freedom in the Arab world
In a new Acton Commentary, Anthony Bradley examines a new report from the Fraser Institute that measures economic freedom in Arab countries, an important indicator for cultures that are in many places still struggling to lift their people out of poverty. In discussing the report, Bradley says, “As history demonstrates, individuals or families having freedom to determine their own economic destiny liberates them from government dependence and long-term dependence on charity.” Read the mentary here. ...
Education optimism
Eugene Hickok and Gary Andres give us an optimistic piece on education reform on NRO today. They see even public educational professionals opening up to the positive potential of reforms that shift the educational enterprise into non-governmental hands. No doubt the continued advance of public education threats such as homeschooling and vouchers have prodded some educators into reform-mindedness. Progress on this issue is painstakingly slow and therefore hard to gauge, but one hopes Hickok and Andres have correctly identified the...
Global warming in Narnia
Dr. Philip Stott at EnviroSpin Watch shares with us an article featuring an interview with Maugrim, head of Queen Jadis’ secret police from The Lion, the Witch, and the Wardrobe, on the growing threat of global warming to the peaceful nation of Narnia. The so-called “greenhouse gas” in question is Pantheron Dileoxide (PL2), monly known as “Lion’s Breath.” “PL2 is a dangerous, roaring greenhouse gas”, the Chief Wolf, Maugrim, growled. “It melts everything, even frozen fauns and fountains. Climate change...
Would C.S. Lewis have risked a Disney ‘nightmare’?
A newly published letter by Narnia creator C.S. Lewis shows his distaste for Disney “vulgarity” and his fear of seeing fictional animal characters transformed into cartoonish buffoons. Jordan Ballor, in a new mentary, explores how Lewis might have felt about the new Disney film of The Lion, the Witch, and the Wardrobe. Ballor looks at Lewis’ dislike of animatronic, or costumed people acting the parts of animals, as well as his feelings towards Walt Disney’s “vulgarity.” Dispensing with Lewis’ objections...
Theroux on African development
Paul Theroux, a former Peace Corps volunteer, indicts what he calls the “more money” platform, headed by none other than U2 frontman Bono, in a NYT op-ed, “The Rock Star’s Burden.” “Those of us mitted ourselves to being Peace Corps teachers in rural Malawi more than 40 years ago are dismayed by what we see on our return visits and by all the news that has been reported recently from that unlucky, drought-stricken country. But we are more appalled by...
Petrol-socialism
Predictions, anyone? Chavez continues to flex his socialist muscles as he has now given ExxonMobil an ultimatum: either give him the controlling interest in pany, or lose their Venezuelan operation altogether. This story is notable because ExxonMobil is the pany who has thus far refused Chavez’s “offer they can’t refuse.” Now, I don’t think anyone had any misconceptions that Chavez would be a ‘nice socialist’, but what was that proverb about being doomed to repeat history? What worries me about...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved