Home
/
RELIGION & LIBERTY ONLINE
/
Zero-Sum Game Economic Fallacy
Zero-Sum Game Economic Fallacy
Jan 18, 2026 10:46 AM

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
Cole on “Patent Failure”
Back in September I posted an announcement about a new book that contributed in interesting ways to our understanding of patent/intellectual property issues. Now Julio Cole’s full review of the book in the Independent Review is available online. An excerpt: Should we really be surprised that the patent system’s internal dynamics have finally brought us to the point at which the potential profits of patenting have, for most industries, been entirely gobbled up by lawyers’ fees? Isn’t that e what...
‘Calvinism’ Transforming and Transformed
A recent Time magazine feature, which highlights “10 Ideas Changing the World Right Now,” has been making the rounds on the theological ‘nets. Coming in at #3 is “The New Calvinism,” which author David Van Biema describes as “Evangelicalism’s latest success plete with an utterly sovereign and micromanaging deity, sinful and puny humanity, and bination’s logical consequence, predestination: the belief that before time’s dawn, God decided whom he would save (or not), unaffected by any subsequent human action or decision.”...
PBR: Friedman on Free Trade
No, not that Friedman. In a wide-ranging lecture for the Carnegie Council for Ethics in International Policy earlier this year, George Friedman touched on American policy with regard to trade. He says of the United States, it has the potential to reshape patterns of international trade if it chooses. The United States throughout the 20th century, the second half in particular, has operated under the principle of a free-trade regime in which its Navy was primarily used to facilitate international...
James B. Stockdale on Public Virtue
Last night I was reading Thoughts of A Philosophical Fighter Pilot by Jim Stockdale (1923-2005). The book is a collection of Stockdale’s speeches and essays over the years. So much of his well thought out writings are words to live by and definitely worth sharing. Here is a timely quote from an essay titled “On Public Virtue” written in 1988: Those who study the rise and fall of civilizations learn that no ing has been surely fatal to republics as...
World Freedom Atlas
The World Freedom Atlas, “a geovisualization tool for world statistics,” looks like a very powerful plement to something like the Gapminder Trendalyzer tool. ...
Wilcox: God Will Provide — Unless the Government Gets There First
In a recent Wall Street Journal column, W. Bradford Wilcox looks at the “boost” that President Obama will give secularism through his rapid expansion of government. An Associate Professor of Sociology at the University of Virginia and a member of the James Madison Society at Princeton University, Wilcox is also a 1994 graduate of the Acton Institute’s Toward a Free and Virtuous Society program. Excerpt: … the president’s audacious plans for the expansion of the government — from the stimulus...
Acton Commentary: The State of the Fourth Estate
Edmund Burke: "...in the Reporters' Gallery yonder, there sat a Fourth Estate more important far than they all."In today’s Acton Commentary, “The State of the Fourth Estate,” I argue that the profession of journalism must be separable from traditional print media. My alma mater’s flagship student publication, The State News, where I broke into the ranks of op-ed columnists, celebrated its centennial anniversary earlier this month. The economics of news media increasingly make it seem as if the few kinds...
Acton Commentary: The Problem with Government Mortgage Relief
In mentary, Sam Gregg writes that “there is little reason to be optimistic about the probable effects of the Obama Administration’s interventionist approach to mortgage relief. In fact, it is most likely to be counterproductive.” More placency about moral hazard? Read mentary at the Acton Website and share ments below. ...
A High Calling: The Work of an Entrepreneur
A recent article by the John Locke Foundation’s Michael Moore (no, not the filmmaker) does a good job of outlining the calling of entrepreneurs. He makes a very positive mention of Acton, Fr. Sirico, and The Call of the Entrepreneur. The full article can be read here. Here’s an excerpt: If you ask someone on the street today what they think is a humble and worthwhile profession, they might say a doctor, teacher, missionary, fireman, munity organizer. Now those are...
Review: Drawing the Line at the Big Ditch
When I was in college, a popular refrain from many academics was to explain the rise of the “Right” or conservatism in the American South as a dynamic brought about because of race. Books like Dan T. Carter’s The Politics of Rage: George Wallace, the Origins of the New Conservatism, and the Transformation of American Politics attempted to link the politics of George Wallace to Ronald Reagan’s brand of conservatism. And if you are suspicious of that theory because Wallace...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved