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)
May 28, 2026 4:01 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
Canon law, works of mercy, and human dignity
The gains made in fort by modernity still leave room for ancient wisdom and ancient law. In fact, they demand them. Read More… “All human societies face about the same problems,” claim David Friedman, Peter Leeson, and David Skarbek in their fascinating and peculiar book Legal Systems Very Different from Ours. “They deal with them in an interesting variety of different ways. All of them are grownups—there is little reason to believe that the people who created the legal systems...
Steven Spielberg’s woke West Side Story is a self-contradictory disaster
The original midcentury musical had its own problems, but this updated plete with untranslated Spanish, only makes things unintelligible and unintentionally funny. Read More… Steven Spielberg has recently made a number of movies nostalgic for midcentury liberalism, Bridge of Spies and The Post, especially, very mediocre stories that won him Oscar nominations and praise in the mainstream press at the price of the popularity he once enjoyed. Indeed, he has sacrificed his place as America’s most important director in pursuit...
A new documentary on the life of Kurt Vonnegut is unstuck in time
This year we celebrate the centenary of the birth of one of the most popular American novelists of the 20th century. Does a documentary shot by a friend do the author of Slaughterhouse-Five justice? Read More… What would Kurt Vonnegut have made of the accordion-style cycle of lockdowns and other restraints imposed on us by the seemingly permanent American sanitary dictatorship devoted to the religion of health in this the centenary year of his birth? Would he have joined the...
Modesty for thee but not for me: Brian Sauvé, Beth Moore, and Ephesians 4
A recent Twitter engagement on the subject of Christian women and modesty is the perfect jumping off point for a larger discussion of what it means to be modest, and obsessed. Read More… For those of us who have dealt pulsive behavior or addiction in our families or our own lives, there are clues—perhaps too seemingly unrelated for some to notice—that tip us off that someone might be engaged in an internal battle. Everyone remembers the Jimmy Swaggart saga. Once...
Joe Rogan is not a problem, but a mirror
The controversial podcaster has e a lightning rod for those who don’t want to be associated with unvetted ideas expressed by either him or his guests. Yet those ideas may not be novel as much as reflective of what the silent majority is already thinking. Read More… The Joe Rogan Experience is one of the world’s most popular podcasts and, for the past two weeks, the world’s most controversial. Launched in 2009 edian and martial arts enthusiast Joe Rogan, the...
Charles Schulz, Peanuts, and the power of community
This year we celebrate the centennial birthday of the creator of the Peanuts gang, which has endured as a ic strip since its debut in 1950, not least because it tackled the most enduring of Western maladies: loneliness. Read More… Charles Schulz believed that life was hard and lonesome. That is why he believed that life was best experienced with others. Only through the sharing of burdens and triumphs and fears and joys could a person navigate the immense challenges...
Licorice Pizza is the L.A. fairy tale we didn’t know we needed
Filmmaker Paul Thomas Anderson has managed the impossible: a love story wise as serpents but innocent as doves. And no sex! Read More… My series on cinematic nostalgia continues—after Wes Anderson’s Francophilia, Ridley Scott’s Italian farce, and Spielberg’s Puerto Rican fiasco, here’s a California story: Paul Thomas Anderson’s ninth feature film, Licorice Pizza, the only Hollywood movie made last year with some reason to be remembered. It’s a story about the ’70s, Hollywood, and the confusion of love in post-’60s...
Terrorists and your valentine have more in common than you think
What may seem a bizarre polarity—terrorism and dating—actually speaks to the calculations we all make when investing not just our money but our very selves into any activity. Read More… Economics is the study of human action; it’s the study of individuals making choices. As a result, we can use the “economic way of thinking” to understand the decisions people make when es to all types of behavior, including dating and marriage, Spring break and Vegas vacations, and, yes, even...
Why we need more O’Rourke Conservatives
The 74-year-old former National Lampooner and conservative humorist has died and left behind a wealth of mentary and good feeling, even among those who did not share his politics. No small legacy. Read More… So by now you’ve heard that P.J. O’Rourke, journalist, essayist, and, of course, humorist, has died at the age of 74. Those who knew him and those who read him have been pouring out ia like so much best-for-last wine. John Podhoretz shared a lovely personal...
George Washington will not be canceled
Whether by toppling statues or neglecting the study of his life, we’ve been trying to cancel the Father of Our Nation for some time now. But it can’t be done. Some people are just too awesome. Read More… Cancel—as in noisily toppling George Washington’s statue and striking his name off of buildings? In 2020, one group demanded the removal of his statue from the campus of the University of Washington. Another outfit called for displacing, renaming, or “recontextualizing” the Washington...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved