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)
Dec 22, 2025 12:00 PM

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
A GMO Thanksgiving
Let’s face it – if not for genetically modified organisms, many of us wouldn’t be celebrating Thanksgiving in the traditional sense. Instead of turkey, cranberries and sweet potatoes, we’d be reduced to something far less appealing such as, say, Beans-and-Franksgiving. Unfortunately, some shareholder activists – including those affiliated with As You Sow – work long hours to ensure GMOs are eliminated as a dinner option. According to the AYS website: The genetic modification or engineering of plants and animals has...
Unemployed at Thanksgiving
For many people the holiday season is their favorite time of the year. But for the 9 million Americans who are currently unemployed, this can be an especially difficult time. The feeling of hopelessness and despair that e with looking for work often increase with the approach of Thanksgiving and Christmas. Lauren L. Moy was recently unemployed during Thanksgiving and recallsthefeelings of awkwardness when meeting with friends and relatives over the holidays. Moyoffers mendations for how to deal with unemployment...
Radio Free Acton: Rockin’ The Wall with Larry Schweikart
Larry Schweikart This edition of Radio Free Acton features an interview with Larry Schweikart – drummer, history professor, and producer of the documentary “Rockin’ The Wall” – on the power of music and the influence of rock and roll in munism in the Soviet empire.When we think about the fall of the Berlin Wall, it’s only natural that names like Reagan, Thatcher, and Pope John Paul e to mind, but there were otherelements involved in the battle munism that also...
William Allen On Freedom, Liberty
Tuesday, December 2 marks the final Acton Lecture Series for 2014. Acton es William Allen, Emeritus Professor of Political Philosophy in the Department of Political Science and Emeritus Dean, James Madison College, at Michigan State University. Allen will be speaking on “American National Character and the Future of Liberty,” beginning at 11:30 at 98 E. Fulton, Grand Rapids, Michigan. You can register here. Allen spoke (along with Samuel Gregg, Acton’s Director of Research) in 2008 on “What Is Freedom?” as...
Free Tesla from Franchise Laws and Subsidies
“The Tesla Model S is a drop-dead gorgeous electric automobile that can go from 0-60 mph in 4.2 seconds and carries a sticker price of $80,000 at the high end,” says Sarah Stanley in this week’s Acton Commentary. “Tesla is also at the center of a debate on cronyism, consumer choice, and innovation” On October 21, Gov. Rick Snyder of Michigan signed Enrolled House Bill 5606 into law. Some have rightly nicknamed this the “anti-Tesla bill.” While direct sales from...
Moral Capital and the Rule of Law
“If we want to be coherent when addressing poverty,” writes Acton Research Director Samuel Gregg at Public Discourse, “our concerns can’t be rooted in emotivist or relativistic accounts of who human beings are. They must be founded on recognition of each person’s freedom, rationality, and dignity.” In social sciences such as economics, positivism’s ongoing influence encourages the tendency to see values as irrelevant, hopelessly subjective, and hard to measure (which, for some people, means they don’t exist). Thus, making the...
The Power Of Youth, But Let’s Not Get Carried Away
The United Nations has just published its State of the World Population Report 2014, “1.8 Billion Strong: Adolescents, Youth and the Transformation of the Future.” I always enjoy a good read from the United Nations, and this does not fail to provide much fodder for discussion. The U.N. is very pro-young people. Youth are capable of great things. Our world needs their intelligence, their spirit, their intelligence, their innovation. The report is full of photos of beautiful and vibrant young...
Black Friday: A day of hyper generosity?
For many, Black Friday epitomizes everything nasty American hyper-consumerism. Stores everywhere are plagued with overly aggressive shoppers, each stuffed to the brim with carb-laden Thanksgiving chow and yet ever-more hungry for the next delicious deal. It’s all rather disgusting, no? Quite the contrary, argues Chris Horst over at OnFaith. “Black Friday may have its warts,but let’s not forget the reason for the Black Friday season,” he writes. “The DNA of Black Friday is generosity.” Wielding a fine mix of basic...
The Thanksgiving Proclamation of George Washington
In October 3, 1789 in New York City, President George Washington proclaimed Thursday the 26th of November 1789 a day of “public thanksgiving and prayer” devoted to “the service of that great and glorious Being who is the beneficent Author of all the good that was, that is, or that will be.” Here is the full text of his Thanksgiving proclamation: By the President of the United States of America, a Proclamation. Whereas it is the duty of all Nations...
Samuel Gregg: Economic Freedom And Religious Freedom Are Mutually Reinforcing
On The Daily Caller, Acton Research Director Samuel Gregg looks at the connection between economic liberty and religious freedom which, he observes, “has not been so obvious; or at least it wasn’t until cases such as Hobby Lobby’s started making their way through the American court system.” Also not so obvious is how the ever expanding welfare state in many countries — and the growing dependence of some religious charities on state funding — have had a negative impact on...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved