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 3, 2026 4:58 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
Metropolitan Tarasios on the Orthodox Council in Crete and Catholic-Orthodox relations
On June 16, His Eminence Metropolitan Tarasios of Buenos Aires spoke at Acton University at DeVos Place in Grand Rapids, Michigan. His remarks touched on a wide range of subjects including the ing Orthodox Christian council in Crete, which begins on June 19, Catholic-Orthodox relations, and other topics. The American-born bishop serves in the Ecumenical Patriarchate of Constantinople. According to his official biography, Met. Tarasios was born Peter (Panayiotis) C. Anton in Gary, Indiana, in 1956 to Peter and Angela...
Why Do You Need a License to Braid Hair?
There are numerous forms of crony capitalism, but one of the most subtle and damaging to the economically vulnerable are occupational licensing laws. For millions of Americans, occupational licensing continues to serve as a barrier to work and self-sufficiency. Take, for example,Melony Armstrong. When Armstrong began her hair braiding business, she was required tohave a cosmetology license, which required 1,500 hours of training and $10,000 in tuition. What makes this state occupational licensing requirement so unreasonable? None of the training...
5 facts about fathers and Father’s Day
This Sunday is the day Americans set aside to honor their fathers. Here are 5 facts you should know about dads and Father’s Day. 1. After listening to a Mother’s Day sermon in 1909, Sonora Dodd of Spokane, Wash. wanted a special day to honer her father, a widowed Civil War veteran who was left to raise his six children on a farm. The first Father’s Day celebration, June 17, 1910, was proclaimed by Spokane’s mayor because it was the...
A Gideon v. Wainwright Reminder
Over the past decade media coverage of the problems surrounding indigent defense has been increasing. For example, The American Civil Liberties Union (ACLU) is currently suing the state of Utah for failing to uphold that 6th Amendment which now provides opportunities for government provided criminal defense. The ACLU is claiming that Utah fell short of its obligation to provide attorneys to criminal defendants who cannot afford to hire one. While the merits of the case have yet to be properly...
Millennials Lacking Hope for Entrepreneurship
Today at the FEE (Foundation for Economic Education), Zachary Slayback has an excellent overview of the decline in entrepreneurship among those under 30 since the late 1980s. He writes, Between local, state, and federal regulations placed on everything from who isallowedto braid hairtowho can tell you what color to paint a wall and where to place a doorand a schooling culture and system that encourages young people to waste away the first 22-30 years of their lives away from the...
Philadelphia’s Socially Acceptable Way to Disdain the Poor
Philadelphia may like to think of itself as the “city of brotherly love,” but its latest tax increase is not so friendly to the poor. Last week the city council passed a regressive soda tax proposal that will levy 1.5 cents per liquid ounce on distributors. According to Quartz, the tax will apply to regular and diet sodas, as well as other drinks with added sugar, such as Gatorade, lemonades, and iced teas. This tax on sugary drinks is what...
Election Season in the Spiritually Vacant State
“When the value-bearing institutions of religion and culture are excluded, the value-laden concerns of human life flows back into the square under the politics of politics,” wrote Richard John Neuhaus, “It is much like trying to sweep a puddle of water on an even basement floor; the water immediately flows back into the space you had cleaned.”Although he made ment thirty-twoyears ago, the late Fr. Neuhaus could be describing the current election season. While there is much that could be...
A Crash Course in Capitalism and Socialism
Unclear on how capitalism and/or socialism got started? John Green provides a 12-minute crash course that answers how we got from the British East India Company to iPhones and from Karl Marx to Swedish-style socialism. Warning: Green’s style and digressions can be a bit grating, but overall the material is worth watching. (I’d also mend increasing YouTube’s speed setting to 1.5 or 2 for faster viewing.) ...
Whose Status Do You Want to Raise?
In a ment about neo-reaction (forget about that for now, this isn’t about neo-reaction), economist Arnold Kling says “a major role of political ideology is to attempt to adjust the relative status of various groups.” One e of this is that, … every adherent to an ideology seeks to elevate the status of those who share that ideology and to downgrade the status of those with different ideologies. That is why it matters that journalists and academics are overwhelmingly on...
Lessons on Work as Service from a Hotel Housekeeper
When es to basic definitions of work, I’ve found fort in Lester DeKoster’s prescient view of work as“service to others and thus to God” — otherwise construed as “creative service” in For the Life of the World: Letters to the Exiles. Our primary focus should be service to our fellow man in obedience to God, whether we’re doing manual labor in the field or factory, designing new technology in an office or laboratory, or delivering a range of “intangible” services...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved