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 20, 2026 9:02 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
Climate Conspiracy Theory (w/apologies to CS Lewis)
MY DEAR WORMWOOD, It is indeed fortunate that Our Father has seen fit to quech our appetites in another way and put you in a new role despite your losing in quite dramatic style your former patient to our Enemy. At least you have the good sense to continue our counsel together. I note what you say about your patient’s apparent obsession with things terrestrial and that you’ve been taking care that he sees a good deal of his apoplectic...
Faith-based organizations measure success
Here’s a mended read for anyone interested in measuring the effectiveness of a faith-based charity. The Heritage Foundation has published a special report titled, e-Based Evaluation: Faith-Based Social Service Organizations and Stewardship” by Patrick F. Fagan, Ph.D., Claudia Horn, Calvin W. Edwards, Collette Caprara, and Karen M. Woods — Acton’s former Director of Effective Compassion. Summary: e-based evaluation has the potential to engender a revolution of increased effectiveness in the mu­nity and to debunk skeptics’ claim that faith-based programs are...
‘Reverse’ subsidies
A couple weeks ago the NYT magazine ran a piece by contributing writer Tina Rosenberg, which attempts to outline some of the ways in which “everyone in a wealthy nation has e the beneficiary of the generous subsidies that poorer countries bestow upon rich ones.” What does she mean? In “Reverse Foreign Aid,” Rosenberg asserts that there are five major forms of poor-to-rich international subsidy. The first is the tendency among poorer nations to build-up great reserves of hard currency,...
A Psalm for Holy Week
Psalm 22 – A Cry of Anguish and Song of Praise – A Psalm of David 1My God, my God, why hast thou forsaken me? why art thou so far from helping me, and from the words of my roaring? 2O my God, I cry in the daytime, but thou hearest not; and in the night season, and am not silent. 3But thou art holy, O thou that inhabitest the praises of Israel. 4Our fathers trusted in thee: they trusted,...
Global warming media day
It’s global warming media day at the NYT and elsewhere following the SCOTUS decision on Massachusetts v. EPA: Linda Greenhouse, “Justices Say E.P.A. Has Power to Act on Harmful Gases,” New York Times.Andrew C. Revkin, “Reports From Four Fronts in the War on Warming,” New York TimesEditorial, “The Court Rules on Warming,” New York Times“The Global Warming Survival Guide,” Time (HT: Zondervan>To the Point)“Warming ruling squeezes Bush from both sides,” MSNBCDavid B. Rivkin, Jr., “Discussion Board: Thoughts on Mass v....
Virtue and freedom in a culture of enterprise
Last week I participated in the inaugural “Culture of Enterprise in an Age of Globalization” symposium at the Cato Institute. The event, co-sponsored by Cato and the Intercollegiate Studies Institute, is part of an ambitious new program that aims to encourage scholarly reflection on and greater awareness of those factors that contribute to the building and maintaining of a humane and vibrant economy—a “culture of enterprise.” The papers are available for listening or viewing at Cato’s site. If you observe...
John Paul II: a Protestant tribute
Those who know me are not surprised to learn that I sincerely admired Pope John Paul II for many years. At first, like many Protestants, I saw him only as the pope, thus as a person standing in some kind of opposition to my own Christian faith. After I began to grasp what I believed about the Creed’s affirmation regarding “one, holy, catholic church” I found my heart melted to love all Christians everywhere. It was not hard for me...
A one-size-fits-all approach to charity regulation?
Anyone concerned with good governance in the nonprofit sector — and it’s independence — should read the updated draft report on “principles of effective practice” issued by Independent Sector. The group has been working closely with the Senate Finance Committee, which for the past two years has been investigating abuses in the world of charities and nonprofits. The abuses, which usually involve excessive pensation and lavish perks, pop up with dreary regularity. A good example of this is what’s been...
New Call of the Entrepreneur website
is now open to the public. Stop on by for the latest updates on Acton’s new documentary, The Call of the Entrepreneur. You can view the trailer via YouTube or watch a higher resolution version via the “View the Trailer” tab. Find out where the premieres will be, or request to host a screening by visiting the “Premiere Information” tab. To see a little bit more about the people featured in the documentary, visit the “About the Film” tab....
EPA must examine climate change link
The Supreme Court ruled today (5-4) in the case of Massachusetts v. EPA (05-1120) “that the federal government had the authority to regulate greenhouse gases that may contribute to global warming, and must examine anew the scientific evidence of a link between those gases and climate change.” Toward the end of last year some were arguing that “this case is not about the science of climate change. There is no dispute that human emissions of greenhouse gases affect the global...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved