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’
Nov 10, 2025 3:40 AM

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
Rev. Sirico: One Election Cannot Fix What Ails Us
Writing for National Review Online, Rev. Robert A. Sirico offers three salient points about last night’s election: 1. Americans give signs of moving in a morally and politically more progressive direction, by which I mean that the appeal to the wisdom of past ages and tradition is simply not pelling as it once was. People today, not all, but many, seem to want the trappings of the tradition (the white gown at the wedding), but not its obligations (chastity before...
Have Faith in America: Obama, Coolidge, and Restoring National Confidence
President Obama has been re-elected, and as mentators point out, he faces a nation even more divided than when he took office. In his victory speech, the President’s message came back to unity, how “we rise and fall together as one nation and as one people.” es, I should note, after a campaign that sought to demonize the rich and downplay the efforts of the entrepreneur. For those who believe es from a full-scope appreciation of mankind, from the minimum-wage...
What Happened
It is clear that what President Barack Obama has achieved is historic: Being re-elected when not a single one of his major initiatives has enjoyed broad popular support. What is also clear is that the moral and spiritual demographics of the United States have changed considerably. If Gov. Mitt Romney, an honorable man of moderate political preferences and conservative personal convictions, cannot attract a winning coalition we are in deep trouble. His loss illustrates the change that has occurred in...
Rev. Sirico to Participate in Luncheon Honoring Chuck Colson’s Life and Legacy
Rev. Robert Sirico has been invited to participate in The Life and Legacy of Charles W. Colson,a luncheon event at the Evangelical Theological Society’s annual meeting next week. The panel discussion will be held on Thursday, November 15th from 11:45am – 1:15pmin Room 101B in the Frontier Airlines Center in Milwaukee. Dr. John Woodbridge of Trinity Evangelical Divinity School will present “Chuck Colson and Recent Evangelical History.” Dr. Cornelius Plantinga, Jr., President Emeritus of Calvin Theological Society, will speak on...
Samuel Gregg: Benedict XVI and the Pathologies of Religion
Over at Crisis Magazine, Acton Research Director Samuel Gregg has an analysis of a recent, and little noticed, article that Pope Benedict XVI published on, among other things, “the Relation of the Church to Non-Christian Religions.” Gregg writes: This message isn’t likely to be well-received among those who think religious pluralism is somehow an end in itself. Their fort, however, doesn’t lessen the force of Benedict’s point. The context of Benedict’s remarks was the 50th anniversary of Vatican II’s opening....
New Baptist Primer: ‘Flourishing Faith’
As a part of our evangelical outreach at Acton, we missioned four primers from different evangelical traditions on the intersection of faith, work, and economics. The books will be written from the Baptist, Wesleyan, Pentecostal, and Reformed traditions and will be released throughout ing year. The first book released is the Baptist primer written by Chad Brand. Chad is professor of Christian theology at The Southern Baptist Theological Seminary in Louisville, KY as well as the associate dean of Boyce...
Prep School for Potential Presidents
Now that the presidential race of 2012 has ended it is time—whether we are ready for it or not—for the presidential race of 2016 to begin. Since the next election will not include any incumbents, the question of who has the relevant “experience” to be the chief executive will once again e an issue of primary concern. What has been missing from previous discussions, however, is a plan for helping future presidential candidates acquire the skill-set needed to be the...
Has Free Replaced Freedom?
Mississippi State Senator Chris McDaniel has written a solid essay asking “Is ‘free’ now more important than ‘freedom?” It’s a serious and much needed indictment against our culture and the political class. McDaniel is a deep thinker and his work has been highlighted on the PowerBlog before. Below is an excerpt from his recent essay: Building on their principle of self-rule, we have always understood the need for balance between freedom and order; and we built our hopes on a...
First English Translation of Herman Bavinck’s ‘The Christian Family’
Christian’s Library Press and Acton Institute announce the release of the first English translation of The Christian Family by Herman Bavinck. When this book was first published in Dutch, marriage and the family were already weathering enormous changes, and that trend has not abated. Yet by God’s power the unchanging essence of marriage and the family remains proof, as Bavinck notes, that God’s “purpose with the human race has not yet been achieved.” Accessible, thoroughly biblical, and astonishingly relevant, The...
Did Florida Disenfranchise African-American Voters?
For 159 years, the state of Florida attempted to disenfranchise it’s citizens by suppressing voter turnout.At least that’s the logical conclusion that can be drawn from the recent partisan claims about voter suppression in the state. As part of it’s post-2000 election reforms, Florida officially implemented early voting for the 2004 election. Until then, voters had to vote absentee or on Election Day. But as a cost-cutting measure, the state legislature passed a law in 2011 reducing the early voting...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved