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 29, 2025 8:11 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
A decade of decline for global freedom
A new report shows that global indicators of economic and political freedom declined overall in 2015, with the most serious setbacks in the area of freedom of speech and rule of law. Freedom House, an “independent watchdog organization dedicated to the expansion of freedom and democracy around the world,” released its Freedom in the World 2016 Report which included some disturbing statistics and worldwide trends, particulary as it concerns the progress made by women in some regions. The beginning of...
Economic freedom increasing worldwide, but not in U.S.
The Heritage Foundation and Wall Street Journal recently released the 2016 Index of Economic Freedom. Despite modest gains in economic freedom worldwide, Americans have, for the eighth time in a decade, lost economic freedom. The global average score is 60.7, “the highest recorded in the 22-year history of the Index” with more than thirty countries including Burma, Vietnam, Poland, and others, received “their highest-ever Index scores.” 74 countries’ ranks declined, but they improved for 97. The least free countries included...
The Goo-Goo Chorus of Silence
George Soros just donated another $6 million to Democratic Party presidential candidate Hillary Clinton’s Super Political Action Committee, raising the total the billionaire has contributed thus far to her 2016 campaign to $7 million. Liberals and progressives who can be counted on to hyperventilate every time the Koch brothers drop a dollar into a Salvation Army drum haven’t made a peep. They’ve also been remarkably silent on other donations to Clinton’s Priorities USA SuperPac, including $5 million from Haim Saban...
Acton Institute named a top think tank in the world in new report
Acton Institute and Instituto Acton have taken top spots in a new ranking. Earlier today, the University of Pennsylvania’sThink Tank & Civil Societies Program released the 2015 Global Go-To Think Tanks Report which maintains data on almost 7,000 organizations worldwide and creates a detailed report ranking them in various categories. Acton was named in five categories and Instituto Acton was named in one. See the highlights: Acton Institute is 9th (out of 90) in the Top Social Policy Think Tanks...
This is No Time to Panic
Today is the official start of the primary season, which which means it’s also the time when many people officially shift into political panic mode. A lot of usare in a panic, fearing that Western civilization — or at least America’s future — is at stake and that something must be done quickly to avert disaster. But what Americans really need is to to heedthe advice of Greg Forster: Don’t panic. With all due respect to baseball, panicking is America’s...
Federal Government Handed Immigrant Children Over to Human Traffickers
Enticed by the promise that their children could go to school in America, numerous Guatemalan parents paid to have their children smuggled into the U.S. No one knows how many made it across the border, but some of the children were detained by immigration official and transferred to the custody of Health and Human Services (HHS). Once in the hands of the federal government, the children should have been safe. Instead, the HHS gave at least adozen children over to...
Heaven’s Not Just for Progressives
Any number of meanings are attached to “the Kingdom of God” as an essential element of Jesus’ teaching for Christian praxis. Used as just another slogan for political activism, in which the shade of meaning is usually reconstructing Heaven on Earth along collectivist lines, has me tossing the theological yellow flag. Another way to put this futile and often dangerous exercise is immanentizing the eschaton. This business has raised many skeptics. From St. Thomas More we received the word “utopia,”...
5 Facts About the Iowa Caucus
Tonightthe nominating process for the U.S. presidential elections officially begins when voters in Iowa meet for the caucuses. Here are five factsyou should know about what has, since 1972, been the first electoral event of each election season: 1. A caucus is a meeting of supporters or members of a specific political party or movement. To participate in the Iowa Caucus, political supporters show up at a one of the 1,681 precincts (church, school munity center, etc.) at a specific...
Where Do Good and Evil Come From?
Where do good and e from? Some possibilities that have been proposed include evolution, reason, conscience, human nature, and utilitarianism. But as Boston College philosopher Peter Kreeft explains in the video below, none of these can be a source of objective morality. So where does e from? “The very existence of morality proves the existence of something beyond nature and beyond man,” says Kreeft. “Just as a design suggests a designer, mands suggest a mander. Moral Laws e from a...
7 Figures: Faith and the 2016 Campaign
A new Pew Research Center survey examines how voters feel about the religiosity of presidential candidates. Here are seven figures you should know from the report: 1. More than half of Americans (51 percent) say they would be less likely to vote for a presidential candidate who does not believe in God. (This is down from 63 percent in 2007.) 2. About half of U.S. adults say it’s “very important” (27 percent) or “somewhat important” (24 percent) for a president...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved