Home
/
RELIGION & LIBERTY ONLINE
/
What Liberal Evangelicals Should Know About the Economic Views of Conservative Evangelicals (Part 2)
What Liberal Evangelicals Should Know About the Economic Views of Conservative Evangelicals (Part 2)
Aug 27, 2026 4:27 AM

Why do liberal and conservative evangelicals tend to disagree so often about economic issues? This is the second in a series of posts that addresses that question by examining 12 principles that generally drive the thinking of conservative evangelicals when es to economics. The first in the series can be found here.A PDF/text version of the entire series can be foundhere.

In my first post, I covered the first four principles (#1 – Good intentions are often trumped by unintended consequences; #2 – Our current economic and historical context must be taken into account when applying Biblical principles; #3 – To exploit the poor, the rich need the help of the government; #4 – We love economic growth because we love babies). In this post I want to consider points #5 (The economy is not a zero-sum game) and #6 (Poverty in America is more often a matter of personal choice than structural injustice).

5. The economy is not a zero-sum game.

In a zero-sum game, one person’s gain (or loss) is exactly balanced by the losses (or gains) of the other participants. If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. It’s similar to dividing a pumpkin pie between five people: someone can only get a larger slice if someone else’s portion is smaller.

Many progressives in America, including far too many (though not all) liberal evangelicals, believe economics is a zero-sum game. They believe wealth, like a pumpkin pie, is fixed and that “there must be one winner and one loser; for every gain there is a loss.” This may be true in some economic systems, but it does not apply in free markets.

Jay W. Richards explains why free enterprise does not require that there be an economic loser for every economic winner:

One reason people believe this myth is because they misunderstand how economic value is determined. Economic thinkers with views as diverse as Adam Smith and Karl Marx believed economic value was determined by the labor theory of value. This theory stipulates that the cost to produce an object determines its economic value.

According to this theory, if you build a house that costs you $500,000 to build, that house is worth $500,000.

But what if no one can or wants to buy the house? Then what is it worth? Medieval church scholars put forth a very different theory, one derived from human nature: economic value is in the eye of the beholder. The economic value of an object is determined by how much someone is willing to give up to get that object. This is the subjective theory of value.

As Richards goes on to explains, to say “economic value is subjective” is not to say “everything is relative.” Economic value is not ultimate value. Your ultimate value in the eyes of God is not the same as economic value. What is subjective, as Christian scholars discovered in the Middle Ages, is that the pleasure that people derive from different goods is subjective and arises from variability of human opinion, so that different people esteem goods differently.

To understand what this means, let’s return to Richard’s example of the $500,000 house:

As the developer of the house, you hire workers to build the house. You then sell it for more than $500,000. According to the labor theory of value, you have taken more than the good is actually worth. You’ve exploited the buyer and your workers by taking this surplus value. You win, they lose.

Yet this situation looks different according to the subjective theory of value. Here, everybody wins. You market and sell the house for more than it cost to produce, but not more than customers will freely pay. The buyer is not forced to pay a cost he doesn’t agree to. You are rewarded for your entrepreneurial effort. Your workers benefit, because you paid them the wages they agreed to when you hired them.

The reason conservative evangelicals champion the free market is not because it guarantees everyone wins in petition, but rather, as Richards notes, because it allows many more win-win encounters than any other alternative.

6. Poverty in America is more often a matter of personal choice than structural injustice.

There’s an old joke about a man who went to see his doctor because he was suffering from a miserable cold. The doctor tells the man, “Go home and take a hot bath. As soon as you finish bathing throw open all the windows and stand in the cold air.”

“But doc,” protested the patient, “if I do that, I’ll get pneumonia.”

“I know,” said the doctor, “I can’t doing anything about a cold. But I can cure pneumonia.”

Conservatives are a lot like this doctor. While many liberal evangelicals believe that the main cause of poverty is structural injustice, many conservatives wish it were the main cause. After all, we can do a lot about structural injustice, but there’s much less we can do about changing personal choices.

As it relates to economics, structural injustice could be defined as occurring when outside forces unjustly limit some person’s opportunities to enact their morally legitimate plans. A prime example of this is the Jim Crow laws that mandated racial segregation in many parts of the U.S. between 1876 and 1965. This particular form of structural injustice created conditions for African Americans that tended to lead to inferior economic opportunities and limited the routes of escape from poverty.

Structural injustices still exist and must be opposed (as we’ll discuss in point #7). But it is either naïve or dishonest to pretend that these types of injustices are as pervasive and dominant in 2014 as they were in other eras. We should recognize that the victories we’ve achieved over injustice, many of which are due, in part, to the work of liberal evangelicals.

Conservative evangelicals do not deny that structural injustice can still play a causal role in poverty. But we believe that the primary causals factors tend to be related more to personal choices, broadly defined, than to outside forces acting unjustly to keep a person impoverished.

Implying that some people “choose” poverty strikes many people as absurd and callous. The claim has a whiff of “blame the victim” insouciance to it that is ing of a Christian. But when es to poverty, passion requires that we be hardheaded realist. That is why we must ask, “Is it true that poverty is primarily caused by personal choices by individuals and families?”

The answer, based on decades of empirical evidence, seems to show that poverty is indeed mostly caused by the layered choices made both by individuals and their parents. Before we examine this point, though, let’s consider what we believe to be true of poverty by applying what I call the “North Dakota Test.”

The unemployment rate in North Dakota is currently 2.7 percent, well below the natural rate of “full employment” (which in the U.S. is around 5.5 percent). In some parts of the state you can make “$15 an hour serving tacos, $25 an hour waiting tables and $80,000 a year driving trucks” – well above a “living wage.” Now imagine we take an average able-bodied adult that is living below the poverty line and move them to North Dakota. We also give them a car to drive, an RV to live in, wipe out their current debts, and provide them with cash equal to 3 months living expenses.

After 90 days, would that person still be living in poverty? If they would not be, then the reason for their poverty was likely structural, whether the cause was benign (e.g., they live in an area with no available jobs) or unjust (e.g., they can’t get a job because of discrimination). If they would still be in poverty after that time, then the reason is likely due to conditions that were caused by personal life choices.

Currently, the poverty rate in North Dakota is 11.2 percent — the seventh-lowest rate among the states and almost 4 points below the national rate of 15 percent. That rate includes all people, including some that are not able to work. But what about those who are? Why does a state with relatively low structural economic barriers have any poverty at all? The reason, say conservatives, is likely because choices they’ve made in life (drug use, out-of-wedlock pregnancies, dropping out of school, etc.) prevent them from escaping their condition.

Many liberal evangelicals hear the claim that poverty is largely due to “personal choice” and assume that conservatives are saying that the poor are on their own and have only themselves to blame. But that is not the case — at least it’s not true of most conservative evangelicals. We believe that we have an obligation to aid the poor whatever the reason for their poverty. We also believe that to truly help people we must accurately diagnose the problem.

For instance, as Ron Haskins and Isabel Sawhill of the liberal Brookings Institution pointed out in their book Creating an Opportunity Society, young adults who put education, work, marriage and parenthood in the right order — first finishing high school (or college), then getting a job, then marrying, and then having a baby — face very low odds of poverty. If we really want to help people escape poverty, we should help not only to choose the right path but to e the type of people who can make choices that will save them from economic tragedy.

Unfortunately, this article is already too long so I don’t have the space to explain how conservatives believe we should help those whose poverty is caused by unfortunate life choices or how the choices of parents create a cycle of poverty. I do intend, however, to write about that subject soon and outline ways we can change these choice structures (such as through programs for parenting and early childhood intervention). Stay tuned.

***

In future posts, we’ll cover the remainder ofthe 12 principles:

7. The best way pensate for structural injustice is to increase individual freedom.

8. Saddling future generations with crippling debt is immoral.

9. Social mobility — specifically getting people out of poverty — is infinitely more important than e inequality.

10. Jobs that lead to human flourishing are the most important part of a moral economy.

11. Free markets are information systems designed for virtuous people

12. Free markets are the best way to serve free people.

Recent posts in this series: Part 1

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
Socialized medicine just keeps getting more glorious
As a person with a strong family history of cancer, this story warmed my heart. Oh wait, did I say “warmed my heart”? What I meant to say was “chilled me to the bone“: Created 60 years ago as a cornerstone of the British welfare state, the National Health Service is devoted to the principle of free medical care for everyone. But recently it has been wrestling with a problem its founders never anticipated: how to handle patients plex illnesses...
The glory of socialized medicine
It’s a shame that the marvel of government-controlled health care hasn’t been implemented in the US yet: Seriously ill patients are being kept in ambulances outside hospitals for hours so NHS trusts do not miss Government targets. Thousands of people a year are having to wait outside accident and emergency departments because trusts will not let them in until they can treat them within four hours, in line with a Labour pledge. What a fool I’ve been to oppose this...
Kosovo: Pandora’s Box
Nearly two years ago, in “Who Will Protect Kosovo’s Christians?” I wrote: Dozens of churches, monasteries and shrines have been destroyed or damaged since 1999 in Kosovo, the cradle of Orthodox Christianity in Serbia. The Serbian Orthodox Church lists nearly 150 attacks on holy places, which often involve desecration of altars, vandalism of icons and the ripping of crosses from Church rooftops. A March 2004 rampage by Albanian mobs targeted Serbs and 19 people, including eight Kosovo Serbs, were killed...
The fight over charitable choice
Howard Friedman, at his ever-noteworthy Religion Clause blog, reports on the brewing battle over charitable choice language in the US Senate. The Coalition Against Religious Discrimination (CARD), which includes Americans United for Separation of Church and State, is pushing for language in the Substance Abuse and Mental Health Services Administration Act of 2000 to be removed that allows for faith-based charities receiving government funds to limit their hiring practices along confessional/denominational borders. This is just the latest in the long...
Onward, Christian soldiers?
The head of the Church of England and the Archbishop of Canterbury, Dr. Rowan Williams, made international headlines earlier this month when he suggested that the adoption of some aspects of Islamic sharia law into British law was “unavoidable” and discussed patibility of sharia law with the established legal system. Williams’ long speech discusses the pros and cons of ‘plural jurisprudence.’ He does not ignore the repressive aspects of Islamic law, but his main concern seems to be to avoid...
Business fighting poverty
Peter Heslam, a friend of the Acton Institute and sometime contributor to our journal, is the founder of a promising initiative at Cambridge University. Begun a couple years ago, the “Transforming Business” program has recently been revamped, with a new and improved website, including a blog. The program’s goal, as I understand it, is to bring together academics and businesspeople in an effort to understand and articulate how business can play a fundamental role in distributing prosperity more widely. Acton...
Free Cubans by dropping trade restrictions
In today’s Detroit News, Rev. Robert Sirico, president of the Acton Institute, argues for the end of the trade restrictions against Cuba. Fidel Castro, recently retired from the position of el lider maximo, held the small island nation in the tight grip of his totalitarian regime, effectively stagnating all economic development for the past 50 years. The United States embargo against Cuba gave Castro a scapegoat to blame for the economic woes that oppressed the Cuban population and helped him...
Cuba after Fidel: Sirico on Fox Business Channel
Rev. Robert A. Sirico (unfortunately misidentified by host David Asman as “Father John Sirico”) made an appearance on America’s Nightly Scoreboard on Fox Business Channel to discuss the announcement that 81 year old Fidel Castro is stepping down as dictator of Cuba, officially handing power to his sprightly, 76 year old brother Raoul. If you couldn’t catch it live, you can see it here: ...
Public morality and private fidelity
Over recent weeks a great deal of controversy has been swirling in Michigan over allegations of an affair between Detroit Mayor Kwame Kilpatrick and his former Chief of Staff Christine Beatty. Lower courts have approved the release of text messages between the two that would seem to belie the sworn testimony of Kilpatrick and Beatty, and an appeal is currently being considered by the state Supreme Court. Earlier this week, presidential candidate John McCain came under media scrutiny following a...
The NFL on PCA (or ELCA, or CRC…)
Among the critical issues at the confluence of religion, culture, and economics is the question of TV screen size. In a move hailed by gospel-focused churches everywhere, the NFL has modified its rules, which had previously prohibited churches from sponsoring showings of the Super Bowl on screens larger than 55 inches. Church interests had argued that there was no such restriction on, for example, sports bars. One is tempted to conclude that there will no longer be any noticeable difference...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved