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 12, 2026 9:32 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
Video: Rev. Paul Scalia At The Acton Institute 26th Anniversary Dinner
On October 27, 2016, Rev. Paul Scalia addressed the audience at the Acton Institute’s 26th Anniversary Dinner in Grand Rapids, Michigan after accepting the 2016 Faith and Freedom Award on behalf of his late father, Supreme Court Associate Justice Antonin Scalia. More: We’re happy to share these highlights from Justice Scalia’s 1997 keynote address at Acton’s 7th Anniversary Dinner; his wit and good humor are amonghis many great qualities that are deeply missed: ...
Do the wealthy pay their fair share of taxes?
During her presidential campaign, Sec. Hillary Clinton has repeatedly said she’d implement a tax system in which the wealthy “pay their fair share in taxes.” Expecting the rich to pay what is “fair” is not asking to much of them. But one question that is rarely considered is, “What if they already do pay their fair share?” Before we can determine whether the rich pay enough we have to first ask what would be “fair.” How much of total tax...
Understanding elasticity of Demand
Note: This is the eighthpost in a weekly video series on basic microeconomics. Prices can have an effect on the demand of goods and services. But how much does quantity demanded change when prices changes? By a lot or by a little? Elasticity can help us understand this question. This video covers determinants of elasticity such as availability of substitutes, time horizon, classification of goods, nature of goods (is it a necessity or a luxury?), and the size of the...
Read up on Reformation Day
“The attachment of Luther’s 95 Theses” by Julius Hübne Today is a momentous day in Western history, the beginning of what would be known as the Protestant Reformation. With Martin Luther’s pinning of the ninety-five thesis in Wittenberg, Germany, he would light a candle that would change theology, philosophy, and the political landscape of Europe and beyond. With a focus on the individual and his or her relation with the Almighty, Luther’s reforms reinvigorated the spiritual aspect a person’s daily...
26th Annual Dinner, ‘a pivotal refresher’
Last night, more than 800 men and women attended the Acton Institute 26th Annual Dinner at the J.W. Marriot in downtown Grand Rapids. The evening was highlighted by the presentation of the 2016 Faith and Freedom Award to the late Justice Antonin G. Scalia, but one person in attendance took note of Father Sirico’s special remarks on the crisis of liberty and the despair it has created. David Bahnsen, a faculty member of Acton University and longtime friend of Acton,...
Acton alumnus John Nunes makes history at Concordia College
John Nunes John Nunes has made history as the first African American president at Concordia College. On October 22, 2017, the Acton Alumnus and long-time Acton friend was installed as the ninth president of Concordia College-New York. Nunes is the only African American college president serving at an orthodox Christian college in the United States. An ordained pastor in the Lutheran Church (Missouri Synod), Nunes was most recently the Emil and Elfriede Jochum Chair at Valparaiso University and prior to...
The ‘Greed Myth’ and other economic illusions
Confusion about economics is rampant both among elected officials and the electorate. Fortunately, as Jay Richards says, it doesn’t take an advance degree to understand how innovation and free markets lead to flourishing. All it takes is dispelling a few economic illusions: 1. Can’t we build a just society? In seeking a more just society, we must avoid the “Nirvana Myth,” that paring the market economy with an unrealizable ideal. hough the kingdom of God is already present in some...
The case for faith and a free market
“In modern times, more and more Americans have unwittingly relinquished their freedoms and self-determination to career politicians,” says Daniel Garza, president and chairman of The LIBRE Institute. “Millions have ceded their fate to a raft of government programs and entitlements administered by a powerful central government.” Fighting poverty through work, generated by a free market economic system, is essential to sustain a free society. Ours is the only system the world has ever known that so effectively improves the human...
From drug trafficker to urban missionary
Image courtesy of Clifton Reese “When e down here wanting to help, the first thing I tell them is, watch Poverty, Inc.” Clifton Reese of Bonton in the south side of Dallas has taken the Poverty, Inc. message to heart. When asked what he thought of Poverty, Inc. he pointed to his heart and said, “I have it in here.” Clifton does it all; beekeeping, taking care of his four children, urban mission work, coaching, just to name a few...
Immigrants: Don’t vote for what you fled!
Many of America’s immigrants fled nations that were ruined by corrupt politicians and failed government policies. So why, asks Gloria Alvarez, “do you support the same policies in the U.S. that caused you to flee your home country?” Alvarez, Project Director at the National Civic Movement of Guatemala, says that what makes the United States different from her home country of Guatemala is the “unique American belief in limited government” that leads to greater individual freedom and personal responsibility. This...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved