When discussing economics, we frequently encounter the zero-sum fallacy: the notion that the economic pie is fixed, that there is always a winner and a loser, and that, for someone to grow rich, another must become poor.

Yet in a market wherein rule of law, contracts, and property rights are properly established, the pie will surely grow. We are not static balls of flesh nestled comfortably in a static universe. We are spiritual beings made in the image of a creative God, and mutual trade and exchange help accelerate our efforts to create and collaborate alongside our neighbors. As Jay Richards notes, the uniqueness of the human person feeds into how economic value is actually determined.

But although we typically discuss the errors of such thinking in matters of basic material exchange, we should note that such a fallacy can just as easily filter into our broader social and spiritual activities in the workplace. Such limited thinking can trap us in a sort of self-centered tunnel vision, whether with our clients, co-workers, or competitors, leading us to assume that success cannot come if we allow any wiggle room for generosity, whether in basic service, various collaborations, or even end-game negotiations.

In an article for The Atlantic, Emily Esfahani Smith touches on these themes by highlighting a new book, Give and Take: A Revolutionary Approach to Success, wherein organizational psychological Adam Grant seeks to challenge such zero-sum thinking, arguing that by having a fuller, more healthy perspective of mutual gain, we can move forward together toward a more productive, more fulfilling economic and social environment. Read more on Generosity vs. Zero-Sum Thinking in the Workplace…

I recently discussed our pesky human tendency to limit and debase our thinking about economics to the temporary and material. Much like Judas, who reacted bitterly to Mary’s outpouring of expensive ointment, we neglect to contemplate what eternal purposes God might have for this or that material good and the ways through which it might be used or distributed.

C.S. Lewis captures the tendency powerfully in his book, The Great Divorce, providing a clear contrast of heaven and hell through a series of conversations and spiritual choices.

Beginning the story in a dreary town described as being “always in the rain and always in evening twilight,” Lewis provides us with a setting very much like earth but with a bit more darkness and—take note—a bit more surface-level comfort and security (“they have no Needs,” as one character describes it).

Lewis follows one man’s journey beyond the town (which we quickly discover to be hell or some type of purgatory), toward an ever-increasing light (which we quickly discover to be heaven). Along the way, he encounters a series of fellow travelers, each struggling with his or her own obstacle to the divine—an earthbound idol that must be pried from their paws.

In one particular conversation, Lewis points specifically to the economic sphere, using a character he calls “the Intelligent Man” to propose an economic solution that, according to his limited, earthbound assumptions, will certainly relieve what he believes to be an inevitable, ever-increasing darkness:

What’s the trouble about this place? Not that people are quarrelsome—that’s only human nature and was always the same even on earth. The trouble is they have no Needs. You get everything you want (not very good quality, of course) by just imagining it. That’s why it never costs any trouble to move to another street or build another house. In other words, there’s no proper economic basis for any community life. If they needed real shops, chaps would have to stay near where the real shops were. If they needed real houses, they’d have to stay near where builders were. It’s scarcity that enables a society to exist. Well, that’s where I come in…I’d start a little business. I’d have something to sell. You’d soon get people coming to live near-centralisation. Two fully-inhabited streets would accommodate the people that are now spread over a million square miles of empty streets. I’d make a nice little profit and be a public benefactor as well.

His approach has some charming elements, to be sure. Indeed, if I myself were to encounter a dreary town such as this, I, too, would be quick to emphasize the positive socializing effects of market collaboration and cooperation. “The townspeople boast an unhealthy and isolating sense of entitlement,” I might be tempted to say. “Thus, we should proceed to foster a healthy web of bottom-up independence, interconnectedness, collaboration, and specialization.” Read more on C.S. Lewis on Transcendent Economics…

We humans have a pesky tendency toward earthbound thinking. The natural world comes more easily to us, for obvious reasons, and thus, even when we aim to overcome our disposition and contemplate ways to improve things beyond the immediate, it’s hard for us to break out of the box.

Much like Judas Iscariot, who reacted harshly to Mary’s outpouring of expensive ointment on Jesus’s feet, we are prone to react only to the material implications, ignoring altogether whether God might prefer us to do something so peculiar as “keep it for the day of [Jesus’s] burial,” as was the case for Mary.

It is for this reason that the Apostle Paul urged us to present our bodies as a “living sacrifice” — to not be “conformed to this world,” but be “transformed by the renewal of your mind.” Such a life, Paul explains, demands a transcendent perspective made up by constant “testing” of the world as we naturally see it, that we might “discern what is the will of God, what is good and acceptable and perfect.” This is a life consisting of far more than surface-level observations of the physical world, requiring us to submit our reasoning about everything from material prosperity to human happiness to the ultimate will of the Supreme Creator.

This call to active and continuous spiritual discernment reaches into every dusty corner of our day-to-day lives, and it involves plenty of overlap with what we might call the “natural realm” (unhealthy dualism in the other direction is, of course, a competing temptation). Thus, in exploring something as overarching and all-encompassing as our social and economic thought, we should be wary of allowing these natural tendencies and earthly values to serve as the dominating inputs, legitimate and valuable though many of these features may be when properly ordered (e.g. “happiness”).

When we attempt to subvert God’s transcendent reality, the problem can play out in a variety of ways and in varying degrees. Most clear, perhaps, at least in recent memory, is the example of Soviet Communism — an orientation that Whittaker Chambers once described as “man’s second oldest faith,” whose “promise was whispered in the first days of the Creation under the Tree of the Knowledge of Good and Evil”:

[Communism] is the vision of man’s mind displacing God as the creative intelligence of the world. It is the vision of man’s liberated mind, by the sole force of its rational intelligence, redirecting man’s destiny and reorganizing man’s life and the world. It is the vision of man, once more the central figure of the Creation, not because God made man in His image, but because man’s mind makes him the most intelligent of the animals. Copernicus and his successors displaced man as the central fact of the universe by proving that the earth was not the central star of the universe. Communism restores man to his sovereignty by the simple method of denying God.

But although the glaring errors of atheism help illuminate where things can turn sour, the trickier questions lie with the rest of us who do seek to place God at the center of all things, yet still find ourselves persistently struggling with how that should look in our day-to-day endeavors. Read more on Beyond an Earthbound Economics…

At the online Prager University, lecturer Frank Pastore asks: “Do you have the ability to shape your own destiny? Is there a difference between your mind and your brain? Or is free will just a convenient delusion? Are you really just a product of physical forces beyond your control?”

Read more on Video: Do You Have Free Will?…

Forbes recently ran a profile of Christian billionaire and Hobby Lobby CEO David Green. According to Forbes, Green is “the largest evangelical benefactor in the world,” giving “at upwards of $500 million” over the course of his life, primarily to Christian ministries.

Yet, for Green, his strong Christian beliefs don’t just apply to how he spends his wealth; they’re integral to how it’s createdin the first place:

Hobby Lobby remains a Christian company in every sense. It runs ads on Christmas and Easter in the local paper of each town where there’s a store, often asserting the religious foundation of America. Stores are closed on Sundays, forgoing revenue to give employees time to worship. The company keeps four chaplains on the payroll and offers a free health clinic for staff at the headquarters–although not for everything; it’s suing the federal government to stop the mandate to cover emergency contraception through health insurance. Green has raised the minimum wage for full-time employees a dollar each year since 2009–bringing it up to $13 an hour–and doesn’t expect to slow down. From his perspective, it’s only natural: “God tells us to go forth into the world and teach the Gospel to every creature. He doesn’t say skim from your employees to do that.”

Economists have increasingly recognized the ways in which healthy stewardship and property rights are linked—how increased ownership leads individuals to weigh costs and benefits more thoughtfully and effectively. Green’s comments add a slight twist to this approach, calling Christians in particular to reconsider who the “owner” actually is and how we might weigh particular costs/benefits and subsequent action accordingly:
Read more on Hobby Lobby’s Billionaire CEO Says ‘God Owns It’…

Last week, in a reflection about American freedom and Christianity, I contended that the shift from emphasis on the pursuit of “property” to the pursuit of “happiness” illustrated the spiritual insight of the American founders. And today, Joe passed along a piece related to the economic climate in America at the end of the eighteenth century, which suggests that as “America had a thriving middle class,” the United States might have been designed especially to institutionalize, protect, and promote the materially-acquisitive ethos of the time.

That, at least, is the suggestion made by Brad Gregory in his book, The Unintended Reformation. In a chapter on “Manufacturing the Goods Life,” Gregory contends that the Declaration of Independence, the Constitution, and the broader vision of social life articulated by the founders was uniquely oriented toward merely material prosperity:

The substantive emptiness of the nation’s founding documents was possible not only because Americans were strongly shaped by Christian moral assumptions, but also because so many of them had simultaneously departed in practice from the traditional Christian condemnation of avarice.

A corollary of this is that America is uniquely anti-Christian:

If Christianity is among other things a discipline of selflessness in charitable service to others, then the United States’ legally protected ethos of self-regarding acquisitiveness, culturally reinforced at every turn, would seem to be its antithesis.

You might guess what this means for our evaluation of Europe, however, which ends up looking rather more Christ-like by comparison:

But, ironically, more than is true of federal or state institutions in the church-going United States, secularized Europeans’ welfare states since World War II have more in common with the social concerns and the moral commitments of the Christianity that made the Continent and Britain, because they at least seek to meet the most basic needs of every citizen.

It’s true, admits Gregory, that American freedom includes the ability to be spiritually responsible. But even the value of this is doubtful:

So too, it is obvious that he advent of modern capitalism and market-governed societies has facilitated the potential for human flourishing and the possibility of living meaningful human lives for hundreds of millions of people, which considered as such is also a very good thing. But those who are devoted to their families, demonstrate care for others, make charitable donations, and practice self-restraint do so within a world dominated by wall-to-Walmart capitalism and consumerism, with all that this implies.

What all this has to do with the Reformation is something that has to be explored within the larger argument of the book. I’m currently drafting a review of it, but it has already been reviewed and engaged in a number of significant places, like Books & Culture, the Wall Street Journal, and First Things. At this point I can recommend Gregory’s book if you want to see what the Reformation and global climate change have to do with one another (hint: the main link is the American “ethos of self-regarding acquisitiveness” outlined above).

Calvin Coolidge quipped shortly before his death, “I feel I no longer fit in with these times.” The words came not long before FDR’s ascendency to the presidency and not long after the upsurge of government activism that started in the Herbert Hoover administration. Coolidge, even for his time, was seen as old fashioned, a throw back to simpler values, ethics, and principles. Coolidge cut the name tags out of his suits when he asked his wife to resale them, so not to profit from his name and position. He was lampooned for his hands off approach to the presidency. Ronald Reagan was even teased by the Washington Press Corps for hanging up a portrait of Coolidge in the White House. By many academics today, Coolidge is chiefly mischaracterized as a simpleton largely from quotes like “The chief business of the American people is business.” In that speech in 1925 delivered to newspaper editors, Coolidge also went on to say, “Of course the accumulation of wealth cannot be justified as the chief end of existence.”

Read more on Calvin Coolidge and the Commercial Spirit…

Economic historian Brian Domitrovic has an interesting post up at his Forbes blog, Past & Present, on the proximate causes of the 2008 meltdown. According to Domitrovic, uncoordinated, even “weird” fiscal and budgetary policy in the early 2000s kept investors on the sidelines, and then flooded the system with easy money. The chickens came home to roost in 2008 (and they’re still perched in the coop).

Read more on How to Deliver a Recession: Cut Brake Lines, Accelerate Toward Cliff…

Metropolitan Jonah at AU 2011

We’ve posted the text of Metropolitan Jonah’s AU talk on “Asceticism and the Consumer Society” on the Acton site. His remarks, delivered on Thursday, June 16, at the plenary session looked at the “opposing movements in the human heart” between consumerism and worship. In the course of his talk, Jonah cited Orthodox Christian theologian Fr. Alexander Schmemann’s definition of secularism as “in theological terms … a heresy … about man.”

Read more on Metropolitan Jonah: Asceticism and the Consumer Society…

One of the latest iterations of the reality TV craze is the show, “Bad Girls Club,” on the Oxygen network. The premise of the show revolves around a group of young women of diverse backgrounds brought together to live in one house: “What happens when you put seven ‘bad’ girls in a house together – the type of girls who lie, cheat and flirt their way out of trouble and have serious trust issues with other women?”

Read more on Ripsi’s Confession…