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’
Nov 25, 2025 1:19 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
Verse of the Day
  Commentary on Today's Verse   Commentary on Daniel 6:1-5   (Read Daniel 6:1-5)   We notice to the glory of God, that though Daniel was now very old, yet he was able for business, and had continued faithful to his religion. It is for the glory of God, when those who profess religion, conduct themselves so that their most watchful enemies may find...
Verse of the Day
  Psalm 42:1 In-Context   1 In many Hebrew manuscripts Psalms 42 and 43 constitute one psalm.In Hebrew texts 42:1-11 is numbered 42:2-12.Title: Probably a literary or musical termAs the deer pants for streams of water, so my soul pants for you, my God.   2 My soul thirsts for God, for the living God. When can I go and meet with God?...
Verse of the Day
  Isaiah 29:13-14 In-Context   11 For you this whole vision is nothing but words sealed in a scroll. And if you give the scroll to someone who can read, and say, Read this, please, they will answer, I can't; it is sealed.   12 Or if you give the scroll to someone who cannot read, and say, Read this, please, they will...
Verse of the Day
  Commentary on Today's Verse   Commentary on Luke 6:1-5   (Read Luke 6:1-5)   Christ justifies his disciples in a work of necessity for themselves on the sabbath day, and that was plucking the ears of corn when they were hungry. But we must take heed that we mistake not this liberty for leave to commit sin. Christ will have us to know...
Verse of the Day
  Commentary on Today's Verse   Commentary on 2 Corinthians 3:12-18   (Read 2 Corinthians 3:12-18)   It is the duty of the ministers of the gospel to use great plainness, or clearness, of speech. The Old Testament believers had only cloudy and passing glimpses of that glorious Saviour, and unbelievers looked no further than to the outward institution. But the great precepts of...
Verse of the Day
  1 Corinthians 15:57 In-Context   55 Where, O death, is your victory? Where, O death, is your sting?Hosea 13:14   56 The sting of death is sin, and the power of sin is the law.   57 But thanks be to God! He gives us the victory through our Lord Jesus Christ.   58 Therefore, my dear brothers and sisters, stand firm. Let nothing...
Verse of the Day
  Commentary on Today's Verse   Commentary on John 6:28-35   (Read John 6:28-35)   Constant exercise of faith in Christ, is the most important and difficult part of the obedience required from us, as sinners seeking salvation. When by his grace we are enabled to live a life of faith in the Son of God, holy tempers follow, and acceptable services may be...
Verse of the Day
  Commentary on Today's Verse   Commentary on James 3:13-18   (Read James 3:13-18)   These verses show the difference between men's pretending to be wise, and their being really so. He who thinks well, or he who talks well, is not wise in the sense of the Scripture, if he does not live and act well. True wisdom may be know by the...
Verse of the Day
  Commentary on Today's Verse   Commentary on 2 Thessalonians 3:1-5   (Read 2 Thessalonians 3:1-5)   Those who are far apart still may meet together at the throne of grace; and those not able to do or receive any other kindness, may in this way do and receive real and very great kindness. Enemies to the preaching of the gospel, and persecutors of...
Verse of the Day
  Matthew 6:5-6 In-Context   3 But when you give to the needy, do not let your left hand know what your right hand is doing,   4 so that your giving may be in secret. Then your Father, who sees what is done in secret, will reward you.   5 And when you pray, do not be like the hypocrites, for they love...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved