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 1, 2025 1:08 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
Wise generosity II
More evidence surfaces of the necessity of using discretion when giving charitably. Not too many readers of this blog will be surprised that the United Nations is not the most efficient entity in the world. It seems that overhead gobbled up a third of the funds the U.N. raised for tsunami relief last year. But private charities aren’t immune to problems. Fifty people have been indicted in a scandal at the Red Cross. Employees were directing Katrina-victim funds to “needy”...
Timber!
Today’s Wall Street Journal has yet another example of what happens when good intentions fail to connect with sound economics (or in this case, sound science). Thanks to the nation’s housing boom, business has been good for the West’s sawmills for the past three years. But Jim faced an insurmountable problem: He couldn’t buy enough logs to keep his mill running. This despite the fact that 10 times as many trees as Jim’s mill needed die annually on the nearby...
Happy new year!
From all of us here at the PowerBlog, please accept our best wishes for a happy, healthy and prosperous 2006! Care to make any predictions for the new year? Feel free to leave them in ments. ...
The glory of socialized health care
A newly certified Guinness World Record, presented without ment. ...
Prayer for the future
O God our heavenly Father, you have blessed us and given us dominion over all the earth: Increase our reverence before the mystery of life; and give us new insight into your purposes for the human race, and new wisdom and determination in making provision for its future in accordance with your will; through Jesus Christ our Lord. Amen. –U.S. Book of Common Prayer, “For the Future of the Human Race,” (1979), p. 828 I cannot pass up this prayer...
Reason and revelation
Here’s what Shakespeare’s Hamlet has to say: “There are more things in heaven and earth, Horatio, / Than are dreamt of in your philosophy” (Hamlet, 1.V). To be sure, the immediate cause of ment is the appearance of the ghost of his father. But it seems right to understand the appearance of the ghostly apparition as intended to be a kind of supernatural revelation. After all, the ghost is making itself known from the depths of Purgatory, “confined to fast...
The right to have a baby
In the latest issue of Touchstone, Acton senior fellow Jennifer Roback Morse examines the issues of procreation and property in contemporary society, and the seemingly growing opinion anyone can be a parent if they so choose. In “First Comes Marriage” Morse contends, “There is no right to a child, because a child is not an object to which other people have rights.” She goes on to make a clarification about meanings of “rights” language that are often conflated: We must...
The church as country club
Jonathan Gruber, an economist at the Massachusetts Institute of Technology, says his research shows that “regular religious participation leads to better education, higher e and a lower chance of divorce. His results (based on data covering non-Hispanic white Americans of several Christian denominations, other faiths and none) imply that doubling church attendance raises someone’s e by almost 10%.” The article linked above gives a good overview of Gruber’s methods, and touches on some related ideas in the history of economics,...
The stewardship of space
As the newly-burgeoning field of space tourism takes the first steps towards reality, elements of the federal government are already pushing for stringent regulation. In a 60 Minutes report last night, the Ansari X Prize, “an petition created in 1996 to stimulate private investment in space,” has spawned the new space race. This new field is “a race among panies and billionaire entrepreneurs to carry paying passengers into space and to kick-start a new industry, astro tourism.” Part of the...
The digital divide and civil society
A new UN report examines the “digital divide” in developing countries and concludes that the “gaps are still far too wide and the catching-up far too uneven for the promise of a truly global information society.” Stephen Grabill examines the issue and the role that civil society plays in enabling access to information technology. Read the mentary here. ...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved