Home
/
RELIGION & LIBERTY ONLINE
/
Zero-Sum Game Economic Fallacy
Zero-Sum Game Economic Fallacy
Jan 17, 2026 7:33 PM

Imagine this: a teacher tells her high school students that they are going to enjoy a chocolate cake, while learning about food distribution and economics. (As a former high school teacher, I assure you, most of the students heard nothing past the word, “cake”.)

The teacher then divides the students into three groups. In her class of 30 students, one group is made up of 4 students, a second group is 10 students and the third group is 16. The teacher then sets the cake before them, and announces that she will divide the cake according to food distribution norms among “first, second and third world countries”.

The group of four students will then enjoy half the cake. The second group of students will get about three-quarters of the remaining cake, and the smallest piece will go to the group of 16 students. Of course, protests will follow, along with a discussion of how unfair it all is.

The goal of the teacher will be, of course, to see if the students with the most cake will share their cake with the other two groups. If they don’t, that choice will be discussed as well. The students e away with the idea that everyone will have an equal piece of cake if only those with more share what they have.

This is a noble lesson, and we should of course share what we have, regardless of how much that is. (After all, Scripture doesn’t encourage only the rich to tithe.) Unfortunately, the lesson is wrong: it’s based on the idea that there is only one cake, and we can’t possibly get any more.

I have to admit, that as a teacher, I used lessons similar to this one. And never once, did I or any of my students suggest a most obvious answer: bake another cake.

We have the same problem, writ large, in today’s economic outlook: poor nations are poor because rich nations are hoarding what they have and not sharing. If only the rich nations would “share the cake”, everyone would have enough. It also reinforces the notion that poor countries have to sit around and wait for some noble rich nation to divvy up cake for them; they couldn’t possibly create one on their own. That type of paternalistic attitude is both dangerous and wrong. The “cake game” also supports the erroneous notion that large groups of poor people are going to take stuff from richer folks; therefore, we need to reduce the numbers of poor people in order to keep our “cake”.

This “zero-sum game” fallacy is only one problem with today’s economic policies, but it is a deeply-entrenched one. We all need to know that there isn’t just one “cake”, and that by enabling people to create their own food sources, create their own wealth and create their own stable economies, it won’t cost us our “cake”. We will, in fact, all have more cake – and what better reason to celebrate?

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
Welfare states cultivate the sin of sloth
“As thousands of African migrants land on the golden beaches of Spain, old Europe shows the signs of fatigue,” says MihailNeamtu in this week’s Acton Commentary. “In August, most of its politicians are on holiday. Every summer, for nearly six weeks, Brussels officials cannot be bothered to ponder the future of the European Union.” In the meantime, in Mediterranean countries, the youth seem to be haunted by the same pressing question: “Will I get a proper job?” In Greece, unemployment...
What do banks do?
Note: This is post #88 in a weekly video series on basic economics. Borrowing and saving plays an essential role in our economy, and banks often serve as their primary link. But how exactly do banks operate? In this video by Marginal Revolution University, Alex Tabarrok explains how banks serve as financial intermediaries, how they turn savings into loans, and how they make loans as productive as possible. (If you find the pace of the videos too slow, I’d mend...
Chafuen on ‘The vocation of the think tank’
Alejandro Chafuen – the Acton Institute’s Managing Director, International – received the prestigious 2018 “Premio Juan de Mariana”award from the Intituto Juan de Mariana earlier this year. Today at Acton’s Religion & Liberty Transatlantic website, we have posted the full text of his acceptance speech. Chafuen holds special affection for Juan de Mariana, the Jesuit priest and thinker associated with the School of Salamanca. In his remarks, Chafuen summarized the theologian’s economic and political thought, saying: He states that God...
Free trade could solve the migrant issue: German leader
Germany’s development minister made a startling proposal to the EU this week. There is a simple way to help Africa flourish and reduce the number of migrants seeking greener pastures in Europe: “Open the market for all African goods.” The proposal not only stymies EU officials, who preside over arch-protectionist agricultural regulations, but may solve the continent’s most vexing problem: illegal migration. German Development Minister Gerd Müller proposed a free trade policy – especially for agriculture – in an interview...
7 Figures: Trends in global restrictions on religion
A new study by The Pew Charitable Trusts and the John Templeton Foundation reports on the extent to which governments and societies around the world impinge on religious beliefs and practices. Here are seven figures you should know from the study about trends in religious hostilities: 1. Of the 198 countries included in the study—covering 99.5 percent of the world’s population—28 percent had high or very high levels of government restrictions in 2016 (the most recent year for which data...
The financial crisis is over, but markets still need moral attention
With the financial crisis nearly a decade behind us, and with the latest figures showing4.1 percent economic growth, the economic woes of yesteryear feel increasingly distant in our past. Even still, it’s hard to avoid the sense that something remains amiss—that beneath the material successes and encouraging metrics about unemployment rates and Gross Domestic Product, our society continues to lack the moral fabric necessary for sustained and holistic economic flourishing. In his book, Crisis of Responsibility, investment advisor David Bahnsen...
Radio Free Acton: Luke Burgis tackles myths about entrepreneurship; Upstream on government funded art
On this episode of Radio Free Acton, Victoria Antram, summer intern at Acton, speaks with Luke Burgis, a businessman who was named a top 25 under 25 entrepreneur by Business Week, about the myths and misconceptions about entrepreneurship. Then, on the Upstream segment, Bruce Edward Walker talks to J. Bradley Studemeyer about government funded art in anticipation of the ing book, Art from the Swamp. Check out these additional resources on this week’s podcast topics: Learn more about Luke Burgis...
Socialism dehumanizes the poor…and socialists: Socialist leader
Socialism claims that its collectivist economic plans “put people first.” But even the philosophy behind socialism dehumanizes everyone involved – according to one of the foremost socialist leaders. Marxism is rooted in the concept of dialectical materialism, the pseudo-scientific assertion that the endless churning of class conflict between the rich (bourgeoisie) and the poor (proletariat) eventually produces a worker’s paradise. But to see “poverty as a force in a historic [dialectic], is not only the dehumanization of the poor, it...
How capitalism confounds our notions about the Earth’s ‘carrying capacity’
Thedoom delusions of central planners and population “experts” are well documented and thoroughly exposed, ranging fromthe early pessimism of Rev. Thomas Robert Malthustothe more recentpredictions of Paul Ehrlich. Population growth is something we needn’t fear, and regardless, it’s likely to begin its reverse within the near future, as increasing global prosperity continues to correspond with decreasing global birthrates (this inspires fears of its own). Given that striking reality, the doomsday soothsayers have shifted their arguments accordingly, warning instead of a...
How to increase the economic knowledge of Americans
Imagine you receive an email from the Secretary of Education saying that you’ve been randomly selected for a test pilot program. In an attempt to democratize the educational system, 20 citizens have been selected to develop a curriculum that will be added as a graduation requirement for every high school student in America. The only limitation is that the curriculum must pertain to a subject that is already covered in high school, must not be tied to religion or theology,...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved