Home
/
RELIGION & LIBERTY ONLINE
/
Zero-Sum Game Economic Fallacy
Zero-Sum Game Economic Fallacy
Dec 2, 2025 10:34 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
NY Times Reports That Americans Ages 17 to 29 Are Increasingly Leaning Left
The New York Times reports today that: More than half of Americans ages 17 to 29 — 54 percent — say they intend to vote for a Democrat for president in 2008. They share with the public at large a negative view of President Bush, who has a 28 percent approval rating with this group, and of the Republican Party. They hold a markedly more positive view of Democrats than they do of Republicans. Young Americans are more likely than...
COE Review from the Mises Institute
Thomas Woods from the Mises Institute blog has posted his thoughts on the Call of the Entrepreneur. Woods praises the film saying, “For once, the moral dimension of entrepreneurial activity is brought to the fore and celebrated. For once the heroes are creators, not political hacks.” If you haven’t yet heard about the film, check out the trailer at ! ...
The End of Work
Why do we work? When labor and toil is so often unfulfilling and troublesome, why keep on? For pagans, no doubt the answer is given in the book of Matthew: “Do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the pagans run after all these things, and your heavenly Father knows that you need them.” A non-Christian view of work is one oriented toward survival. And that’s why a non-Christian...
Americans Giving at Record Numbers
Charitable giving in America has risen for the third consecutive year. The picture behind this recent report is rather interesting. Due to the absence of natural disasters, both nationally and internationally, large giving to major relief projects declined. Giving to human services also fell. The giving of corporate America rose only 1.5%. But in a shift from previous years giving to the arts and to cultural and humanities organizations grew rather significantly. The lion’s share of giving is still done...
Media Bias and the ‘Fairness Doctrine’
The confluence of two recent headline-making stories has the potential to impact the practice of free speech, political or otherwise, in this country. First, let’s discuss the question of media bias that has surrounded the offer made by Rupert Murdoch to purchase the Wall Street Journal. The closure of the deal appears imminent, now that the formation of an independent board has been agreed upon. NPR’s Morning Edition covered this story in detail yesterday, with a piece by David Folkenflik...
Supreme Court Rejects Decorating Public Schools Like Racial Christmas Trees
In the vision of Dr. Martin Luther King, the Supreme Court today struck down a move to use race to determine which students attend certain schools and which one who will not. Students will not be assigned to schools according to the color of their skin. We are finally approaching King’s dream. Hopefully, this will end the tremendously failed race-based busing programs nationwide. The 5-4 ruling rejected racial decorating programs in Louisville, Kentucky, and Seattle, Washington. CNN reports: The court...
Gerson on Obama at the UCC
In today’s WaPo, former Bush speechwriter Michael Gerson opines on Senator Barack Obama’s recent address to a gathering of UCC faithful (HT). In “The Gospel Of Obama,” Gerson writes, “By speaking at a gathering of the United Church of Christ — among the most excruciatingly progressive of Protestant denominations — he was preaching to the liberal choir. And he did not effectively reach out to an evangelical movement in transition.” Gerson bases this judgment on the contention, citing a Pew...
Closing the Credibility Gap
If denominations want to demonstrate leadership over social issues like the environment they must have a good track record leading folks in spiritual matters within their own congregations. After all, if they can’t handle the Great Commission, how effective can their mission work possibly be? ~ If you read history you will find that the Christians who did most for the present world were just those who thought most of the next. The Apostles themselves, who set on foot the...
Vatican Statement on … Chocolate?
Well, not exactly. Althought Archbishop John Foley, President of the Pontifical Council for Social Communications—and a “self-proclaimed ‘chocoholic'”—did address a gathering of Nestle executives on the subject of the morality of advertising. Given that a conscientious parent can hardly watch even a daytime sporting event on TV with his children in light of the low moral quality of advertising, I’d say it’s a subject worthy of attention. A couple of Foley’s statements: It frankly surprises me that as women rightly...
You’ve Heard It Before…
You’ve heard it from us before: Good intentions are not enough. Now hear it from a piece in the Columbia Journalism Review, “The Obscured Continent,” which takes a look at the special issue of Vanity Fair devoted to Africa (HT: Poynter Online). The piece begins by depicting the two major approaches to international development (compare to my “Henderson” model). “In the end, it’s hard to avoid the feeling that the only thing it actually achieves is to convince us of...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved