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’
Dec 18, 2025 3:20 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
Of Men, Mountains, and Mining
Here’s a brief report from The Environmental Report on mountain-top removal mining, and the increasing involvement of religious groups weighing in on the question. One of these groups is Christians for the Mountains. A quote by the group’s co-founder Allen Johnson was noteworthy, “We cannot destroy God’s creation in order to have a temporal economy.” One other thing that struck me about the interview is that the AmeriCorp involvement smacks of “rebranding” secular environmentalism. Add the magic words “creation care”...
Acton Commentary: Hollywood’s Radical Che Chic
Was the real Che Guevara a lover of “humanity, justice and truth”? In mentary today, Bruce Edward Walker reviews Steven Soderbergh’s new four-hour “Che” film epic and discovers “a cinematic paean to one of the twentieth-century’s most infamous butchers.” Read the mentary at the Acton Institute website. ...
PBR: The Faith-Based Initiative
Last week’s National Prayer Breakfast featured a speech by President Obama which was his most substantive address concerning the future of the faith-based initiative since his Zanesville, Ohio speech of July 2008. In the Zanesville speech, then-candidate Obama discussed “expansion” of the faith-based initiative, and some details were added as Obama announced his vision for the newly-named Office for Faith-Based and Neighborhood Partnerships. The announced priorities of the office are fourfold: The Office’s top priority will be munity groups an...
Dr. Andrew Abela Receives 2009 Novak Award
Maltese-American marketing professor, Dr. Andrew Abela, is the winner of the Acton Institute’s 2009 Novak Award. Dr. Abela’s main research areas include consumerism, marketing ethics, Catholic Social Teaching, and internal munication. Believing that anti-free market perspectives seem to dominate discussion about the social impact of business, Dr. Abela is working to explore Christian ethics further to show how these issues can be resolved more humanely and effectively through market-oriented approaches. To aid this work, Dr. Abela is currently preparing a...
PBR: Monsma and Carlton-Thies Speak Out
In response to the question, “What is the future of the faith-based initiative?” As part of Christianity Today’s Speaking Out (web-only) feature, Stephen V. Monsma and Stanley Carlson-Thies, of Calvin College’s Henry Institute and the Center for Public Justice respectively, address the future of the faith-based initiative under President Obama. Monsma and Carlton-Thies outline five “encouraging signs” and one “major concern.” The encouraging signs include the naming of the office executive director (Joshua DuBois) and advisory council (including “recognized evangelicals”...
PBR: History Casts Doubt
In response to the question, “What is wrong with socialism?” I can hardly do better than Pope John Paul II, who wrote in Centesimus Annus, “the fundamental error of socialism is anthropological in nature,” because socialism maintains, “that the good of the individual can be realized without reference to his free choice.” The socialist experiment is attractive because its model is the family, a situation in which each gives according to his ability and receives according to his need—and it...
Acton Commentary: The Moral Bankruptcy Behind the Bailouts
Amid the Washington clamor for more and bigger bailouts, a few brave voices among elected officials and government veterans are being raised about the moral disaster looming behind massive government spending programs. If we ignore these warnings, writes Ray Nothstine in today’s Acton Commentary, we may be “continuing down a path that may usher in an ever greater financial crisis.” Read the mentary here and share ments below. ...
More on ‘The Moral Bankruptcy Behind the Bailouts’
“Government budgets are moral documents,” is the often quoted line from Jim Wallis of Sojourners and other religious left leaders. Wallis also adds that “When politicians present their budgets, they are really presenting their priorities.” There is perhaps no better example of a spending bill lacking moral soundness than the current stimulus package being debated in the U.S. Senate. In mentary this week, “The Moral Bankruptcy Behind the Bailouts,” I offer clear reasons how spending more does not equate to...
Vatican Condemnation of anti-Semitism Unchanged Despite Misstep on Holocaust Denier
The pope has certainly earned his salary this week. In his attempt to heal a schism, he inadvertently set off a fire storm. As most everyone knows by now, the pontiff lifted the munication of four bishops illicitly ordained by the late Archbishop Marcel Lefevbre in 1988, whose dissent from the Second Vatican Council drew a small but fervent following. One of these bishops, Richard Williamson, is a holocaust denier. To understand the saga, it is necessary to peel back...
PBR: Socialism Tyrannizes
In response to the question, “What is wrong with socialism?” In answering this question we could point to the historical instances of socialist regimes and their abhorrent record on treatment of human beings. But the supporters of socialism might just as well argue that these examples are not truly relevant because each historical instance of socialism has particular contextual corruptions. Thus, these regimes have never really manifested the ideal that socialism offers. So on a more abstract or ideal level,...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved