Home
/
RELIGION & LIBERTY ONLINE
/
Zero-Sum Game Economic Fallacy
Zero-Sum Game Economic Fallacy
Dec 25, 2025 1:04 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
Utopias Denied: Arthur Koestler’s Darkness at Noon at 75
Arthur Koestler (1905-1983) “In the world of literature,” says Bruce Edward Walker in this week’s Acton Commentary, “perhaps only Aleksandr Solzhenitsyn did more to expose the lies and cruelty of 20th century totalitarianism.” What makes Darkness at Noon such an enduring artistic work is Koestler’s firsthand knowledge of his source material. Indeed,Darkness at Noon is an imaginative effort, but unlike The Gladiators – set in the first century B.C. and detailing the failed slave revolution led by Spartacus – and...
Explainer: What you should know about the Trans-Pacific Partnership (TPP) trade accord
In the recent presidential debate, Donald Trump and Hillary Clinton disagreed on nearly everything. But there is one thing they both oppose: the Trans-Pacific Partnership (TPP). Here is what you should know about the agreement and why it matters in the election. What is the Trans-Pacific Partnership? Five years in the making, the Trans-Pacific Partnership (TPP) is a trade agreement between the United States, Australia, Canada, Japan, Malaysia, Mexico, Peru, Vietnam, Chile, Brunei, Singapore, and New Zealand. The twelve countries...
Are libertarians too anti-pollution?
“There are no solutions,” says economist Thomas Sowell. “There are only trade-offs.” Sowell’s claim is especially true when es to the issue of pollution. We have no solution that will allow us to eliminate all pollution, so we are forced to make trade-offs, such as exchanging a certain level of pollution for economic growth. What would happen, though, if we allowed our political presuppositions to determine which side of the tradeoff we must always choose? That’s the question at the...
Explainer: What you should know about NAFTA
In last night’s presidential debate, Donald Trump said that NAFTA was the worst trade deal the U.S. has ever signed, and that it continues to kill American jobs. Here is what you should know about the perennially controversial trade agreement. What is NAFTA? NAFTA is the initialism for the North American Free Trade Agreement, an agreement signed by Canada, Mexico, and the United States that reduced or eliminated trade barriers in North America. (Since the U.S. and Canada already had...
New book explores compatibility of Christianity and freedom
A new collection of essays titled Christianity and Freedom: Historical Perspectives edited by Samuel Shah and Allen D. Hertzke explores the ways that Christian beliefs and institutions have made contributions to the freedoms that are cherished by both Christians and non-Christians today. Acton Director of Research, Samuel Gregg, recently gave his analysis of this new collection of essays in a book review published at Public Discourse. Gregg begins his review by recognizing that while Christians have played a huge role...
Angry about high-priced EpiPens? Blame cronyism and overregulation
pany Mylan recently spurred a flurry of outrage after raisingthe price of their lifesaving EpiPen by 400%, leading many to decry “corporate greed” and point the finger at capitalism. Unfortunately, such angerroutinely fails to consider the systemic reasons as to why Mylan can charge such prices, resorting instead to knee-jerk calls for fresh tricks by the FDA and new layers of price-fixing tomfoolery from Washington. Yet the problem, as detailed by Rep. Mick Mulvaney in a new video from FEE,...
New book explores the historical results of reforms and reformations
The Reformation in the 1500s was more than a movement started by Martin Luther. He played a crucial role, but there was more to it. Samuel Gregg recently reviewed a book for the Library of Law and Liberty that explains the historical significance of Catholic and Protestant reformations. According to Gregg, Reformations: The Early Modern World, 1450-1650 written by the Yale historian Carlos M.N. Eire “is likely to e one of the definitive studies of this period.” The year 1517...
How Christianity created the free society
While many Christians have undermined human liberty, says Samuel Gregg, the Director of Research for Acton, a new book of essays shows just how much of our contemporary freedom we owe to the Christian church, Christian thinkers, and Christian practice rather than liberals and liberalism. Any discussion of freedom and Christianity quickly surfaces the numerous instances in which Christians have undermined human liberty. Reference is invariably made to the various Inquisitions, the witch trials conducted by Puritans, forced conversions, and...
How to understand the supply curve
Note: This is the thirdpost in a weekly video series on basic microeconomics. The supply curve seems like an easy enough concept to understand: it’s a graphic representation of the relationship between the quantity of product that a seller is willing and able to supply at a particular price. The implications for how this affects the supply of goods and services, though, is more profound than we often realize. For example, as this video from Marginal Revolution University shows, the...
Candidates must address school-to-prison pipeline
Given the overpopulation of American jails and prisons, it would stand to reason that both Hillary Clinton and Donald Trump be pressed to explain how they would dismantle the unfortunate relationship between low-performing schools and the criminal justice system. Last February, The American Bar Association (ABA) released a report in the school-to-prison pipeline. According to the ABA, the pipeline is a metaphor for how the issues in our education system facilitates students leaving school and ing involved in the criminal...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved