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 11, 2026 8:31 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
This Fathers’ Day, Remember that Property Is Holy
What can a Christian socialist teach us about being a father and faithful steward of God the Father’s gifts? Plenty. Read More… The French Revolution of 1848, which began on February 22 in Paris, led to the fall of the July Monarchy in France, the founding of the Second Republic, a wave of democratic revolutions across Europe, a revival of European liberalism, and the spread of various forms of socialism. Once again, just as in 1789, the old order of...
There Are No Alternatives to Free Market Capitalism
Exploring Catholic social teaching in relation to economics is fine, but if we’re too open-minded about seeking a new mon good” capitalism, our brains might fall out. Read More… Alexander William Salter’s new book, The Political Economy of Distributism: Property, Liberty, and the Common Good, is an odd fish. It begs questions, contains numerous chapters that consist mostly of lengthy quotations, and at times seems to contradict itself, yet in the end it affirms an essential truth that we may...
Spreading the Flame: The Pioneering Ministry of William Grimshaw
The 18th-century evangelical revival is believed to have saved England from a revolution akin to France’s. Among the lesser-known names who brought gospel hope to classes alienated from the church was a man whose tenacity at saving souls made almost as many enemies as friends. Read More… We have discussed so far the nature of the 18th-century evangelical revival in Britain through the eyes of the most well-known names, John and Charles Wesley and George Whitefield. From the 1740s munities...
Jimmy Lai Appeals National Security Committee Decision—Again
Lai’s legal team is arguing that mittee’s decision, which directly affects his personal freedoms and the rights of Hong Kong citizens, should be subject to judicial review. Read More… Jimmy Lai, the imprisoned Hong Kong media mogul and pro-democracy activist, has lodged an appeal after his previous attempt to challenge a decision made by the National Security Committee was rejected, according to the Hong Kong Free Press. The high-profile entrepreneur and former Apple Daily publisher is seeking to overturn mittee’s...
A Culinary Introduction to the Devout Life
Want to be more disciplined in your spiritual life? Chow down with the saints. Taste and see that it is good. Read More… es a time when you yearn to live out your faith more deeply. This can mean different things for different believers, but it usually entails taking up a variety of personal disciplines, returning to tradition, mitting oneself to prayer and introspection. For harried souls making our way in a hectic, secularized world, an idealized spiritual life is...
Was the British Empire Evil?
It’s a given among most academics today that Britain’s empire and economic success was the result of the depredation of native cultures and gross exploitation. But what if it’s not true? Read More… There is edy sketch from British television, now made immortal by the internet, in which a Nazi soldier, waiting for Russian troops to advance on his army’s position, uneasily examines the skull insignias on his uniform and wonders if they might, in fact, be the baddies. Today...
Can Fraternities Save America?
There’s a movement afoot to abolish Greek life nationwide. But what if frats are actually great places to form virtue and character in young men and not just reboots of Animal House? Read More… Dr. Anthony Bradley is on a quest to make fraternities virtuous again. “This is the craziest thing I’ve ever done,” he tells me. “I’m essentially bailing out water on the sinking Titanic.” The problem he’s confronting is well engrained in American culture and media: a quick...
Bridging the Church-State Divide
This sixth installment of a short history passionate conservatism explores what it meant to finally get into the White House and see policies implemented. Skepticism was not in short supply. Read More… In 2000, I didn’t realize until it was too late that my astronomically exaggerated proximity to presidential candidate George W. Bush would make me a target. For example, I had said in 1998 that women volunteers had run charitable enterprises in the 19th century, so women’s entrance into...
European Union Demands Immediate Release of Jimmy Lai
Growing concerns over deteriorating human rights situation in Hong Kong, and the persecution of political dissidents, prompt EU’s call for immediate action. Read More… The European Parliament condemned the persecution of jailed newspaper publisher and pro-democracy activist Jimmy Lai, calling for his immediate and unconditional release from prison and the repeal of Hong Kong’s national security law (NSL), in a resolution passed on June 15, according to Voice of America. The resolution passed with 483 votes in favor, 9 against,...
Freedom of Religion Is Inherently Good
In many parts of the world, and even among some thinkers in the United States, freedom of conscience is seen as a threat to order and decency. But free choice, especially in religion, aligns perfectly with our free wills and is necessary for true human flourishing. Read More… Growing up in Yemen, a conservative branch of Islam was ‎very popular in my household, school, and mosque. Freedom of ‎religion was a myth frowned upon. It was thought that Islam ‎is...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved