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’
Jan 9, 2026 9:32 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
Inadequate: Catholic magazine explains why it published Communist propaganda
If Dean Dettloff’s “The Catholic Case for Communism” were intended to be thought-provoking, it raises only one question: Why did America magazine facilitate this mendacious PR exercise? Editor Fr. Matt Malone, S.J.. felt a need to explain “Why we published an essay sympathetic munism.” (Read our analysis of the original article here.) Fr. Malone likened the article to the magazine bashing Senator Joe McCarthy, which he said took place after America “spent much of the previous 50 years loudly munism.”...
Virtue in a tech economy: Why STEM education isn’t enough
As our global economy has grown more technological, connected, plex, fears continue to loom about an economic future wherein our workers are rendered obsolete—whether by new products and industries, new forms of automation, or petitive labor forces across the globe. Struggling to keep up with the pace, e to embrace technical knowledge and skills-based expertise as the supreme value in many of our educational institutions, crafting a host of STEM education programs and various incentives to prod and prepare our...
China’s recycling ban: Surprisingly helpful for the environment
Off the coast of California floats a Texas-sized island made out of garbage. prised almost entirely of humanity’s plastic waste. Where did this garbage mass in the middle of the Pacific Ocean came from? Plastic dumping. Plastic dumping is the practice of simply throwing away waste into rivers or lakes which eventually lead out into the ocean. Why isn’t this plastic being recycled? Why does this island of garbage continue to grow despite laws that prevent plastic dumping? The answer...
Samuel Gregg on a bishop in France’s public square
Michel Aupetit, the Archbishop of Paris, was rather new to his role when the Cathédrale Notre-Dame de Paris fire pushed him into the spotlight. But Aupetit was more than ready to take his place in the public square, says Samuel Gregg. In a book review for The University Bookman, Gregg considers the archbishop’s role in the representing the Catholic faith: Archbishops of Paris have traditionally been seen as representative of Catholicism in France and setting the tone for how the...
Religion in Europe? It’s complicated
It’s not unusual for Europe—especially Western Europe—to be portrayed as a continent in which religion and, more specifically, religious practice is in decline. No doubt there’s much truth to that. When you start looking at the hard information, however, it soon es apparent that the situation is plicated. Take, for example, France. It is often portrayed as a highly secularized society. Again, there is considerable truth to that picture. Yet a recent study of the state of religion in France...
Explainer: What you should know about the federal government’s two-year budget deal
What just happened? Yesterday the House of Representatives passed a passed a two-year budget and an agreement to once again raise the debt limit. The bill, known as the Bipartisan Budget Act of 2019, is expected to be passed by the Senate next week. What does the Bipartisan Budget Act of 2019 do? The legislation amends the Balanced Budget and Emergency Deficit Control Act of 1985 to establish a congressional budget for fiscal years 2020 and 2021. The main actions...
Edmund Burke on true freedom
In the United States, a growing number of Americans, especially young Americans, are calling for extreme personal autonomy in the guise of “freedom,” while promoting increased government control and coercion. The left, for example, defends radical pro-abortion laws motivated by a desire for personal autonomy. Yet, they look to the government to enforce their radical individualism. Additionally, the left’s praise of democratic socialism has increased dramatically in the past decade. Now, over half of Democrats are in favor of socialism...
There is no ‘Catholic case for communism’
On Tuesday, the Jesuit-runAmerica magazine published an apology for Communism that would have been embarrassing in Gorbachev-era Pravda. “The Catholic Case for Communism” minimizes Marxism’s intensely anti-Christian views, ignores its oppression and economic decimation of its citizens, distorts the bulk of Catholic social teaching on socialism, and seemingly ends with a call to revolution. While author Dean Dettloff claims to own Marxism’s “real and tragic mistakes,” he downplays these to the point of farce. He admits, without elaboration, that “Communism...
Explainer: What you should know about federal deficits
What just happened? The White House Office of Management and Budget recently released a forecast that the federal deficit would exceed $1 trillion this year. As Fox News points out, this would be the first time since the four years following the Great Recession that the deficit reached that level. What is the federal deficit? The term federal deficit refers to the federal government’s fiscal year budget deficit. Such a deficit occurs when total outgoing expenditures (such as for buying...
French-language readers of transatlantic learn of free-market environmentalism
The Acton Institute continues our outreach to the Francophone world with a new translation of one of our articles on the pivotal issue of environmental stewardship. The latest offering illustrates how the free market cares for creation better than government intervention. Our friend Benoît H. Perringraciously translated Joseph Sunde’s article “Free market environmentalism: Conserving and collaborating with nature”; the resultant “Une écologie de marché pour collaborer avec la nature” may be read at Acton’s Religion & Liberty Transatlantic website. Sunde...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved