Posts tagged with: scarcity

I had the privilege of giving the opening lecture last night for the “Limited Government and the Rule of Law” conference taking place here in Grand Rapids this weekend. The talk was on “Christian Origins of Limited Government,” and was followed by an excellent Q&A session.

One of the questions had to do with economic consequences or effects of the Fall into sin, particularly with respect to the curse. There are of course myriad implications for economics from the curse, starting first with the recognition of the toilsome nature of labor in the fallen world:

“Cursed is the ground because of you;
through painful toil you will eat food from it
all the days of your life.
18 It will produce thorns and thistles for you,
and you will eat the plants of the field.
19 By the sweat of your brow
you will eat your food
until you return to the ground,
since from it you were taken;
for dust you are
and to dust you will return.”

Presumably this means that human work isn’t as productive as it would be otherwise. One practical effect of this is scarcity. Fallen work doesn’t produce as many goods and services as non-fallen work; and it would seem there are in fact both qualitative and quantitative consequences for the fruits of human labor. The noetic effects of sin would have some implications here, as well, as it may be that Adam’s insights into the nature of the world were adversely effected. Where he had previously known the nature of things by immediate perception, this insight may well have been clouded. Certainly, as Abraham Kuyper notes, we no longer possess that direct insight that Adam had before the Fall.

So if we understand economics to be, at least from one perspective, reflection on the dynamic between limited resources and unlimited needs, wants, or desires (as Victor Claar described it in his talk on envy earlier this week), then we have clear implications for economics on the scarcity side stemming from the curse.

But I would also argue that the curse has impacted the other half of the dynamic as well. Our desires have become disordered, inordinate, and confused. We want the things we shouldn’t, and we want the things we should want more than we should want them. The acquisitive, grasping, desiring side of human nature is unmoored from and detached from its natural human limits and orientation. We see evidence of this disorder in the aspect of the curse that is applied to the wife: “Your desire will be for your husband, / and he will rule over you.”

So if the curse was the introduction of scarcity into human life, it also was the introduction of desires no longer appropriately limited by obedience to God’s will. Economics in this fallen world deals directly with these (and other) consequences of the curse.

Dismal science, indeed!

Blog author: jcouretas
posted by on Wednesday, April 27, 2011

Today in Acton News & Commentary we brought you guest columnist Steven F. Hayward’s “Economists in the Wild,” based on his new American Enterprise Institute monograph, Mere Environmentalism: A Biblical Perspective on Humans and the Natural World. Hayward, the F.K. Weyerhaeuser Fellow at AEI, looks at how the “connection between rising material standards and environmental improvement seems a paradox, because for a long time many considered material prosperity and population growth the irreversible engines of environmental destruction.” Not so. Hayward:

The central insight of environmentalism is that humanity’s great leap in material progress has come at a high cost to nature: we tear down entire mountains for their minerals; divert rivers and streams and drain swamps to provide water for modern agriculture and urban use; clear large amounts of forests for other uses, often disrupting crucial habitat for rare animal species; and too often dump our waste byproducts thoughtlessly into the air, water, and land.

But this insight contains a paradox. Environmentalism arose precisely because we have mitigated the material harshness of human life through the Industrial Revolution; as Aldo Leopold, author of the classic environmental book A Sand County Almanac, put it: “These wild things had little human value until mechanization assured us of a good breakfast.”

I want to thank John Baden of the the Foundation for Research on Economics and the Environment in Bozeman, Mont., for bringing this to our attention. Baden’s introduction to Hayward’s commentary is worth reprinting here in full; it’s an excellent thumbnail summary of environmental economics.

Steve Hayward’s column … makes one wonder how noted environmental professionals, and even scientists, can be so, how can I say it gently, remarkably ignorant and intellectually arrogant as this: “Economics is a form of brain damage.” Economics isn’t an ideology or a mental affliction. Rather, it’s the systematic study of allocating scarce resources among contending ends.

When applied to environmental and natural resource problems, its practitioners make a few nearly universally valid assumptions. Here are a few.

When things are free, they are counted as such and hence often over used. Common pools of fish exemplify this.

As scarcity increases, people conserve and innovate. Consider barbed wires introduction to open range, the development of particleboard, laminated beams, and plywood. Entrepreneurs developed these solutions to the increased scarcity of grass and old growth timber.

Property rights and markets peacefully coordinate development and use among people who don’t know one another and generate incentives to act as though they care about unknown others. That’s one under-appreciated function of markets.

Bureaucratic-political management replaces market prices with political favor seeking. Corn ethanol is a classic example that causes untold human misery and great environmental damage.

Wealthier is greener; poverty is the worst polluter.

And this; things that are best and most easily measured are not those that matter most.

Economics isn’t about money, it’s about confronting and helping to resolve the many problems of scarcity in a clear and logical manner. Soft hearts need not imply a mushy brain.

Read Steven F. Hayward’s “Economists in the Wild” on the Acton site. Sign up for Acton News & Commentary here.

Blog author: jwitt
posted by on Wednesday, July 22, 2009

A recent Fox News piece on President Obama’s “science czar,” John Holdren, makes for spooky reading, dramatizing where well-intended intellectuals can end up when they take a zero-sum view of our planet’s resources.

In a 1977 course book that Holdren co-authored with environmental activists Paul and Anne Ehrlich, the three make an extended case for aggressive global population control. As the Fox News article explains:

Holdren and the Ehrlichs offer ideas for “coercive,” “involuntary fertility control,” including “a program of sterilizing women after their second or third child,” which doctors would be expected to do right after a woman gives birth.

“Unfortunately,” they write, “such a program therefore is not practical for most less developed countries,” where doctors are not often present when a woman is in labor.

The Most Dangerous Game

The article provides a pdf of the relevant pages of the 1977 course book (go here). Reading these several pages makes it difficult to take seriously a statement by Holdren’s office that Dr. Holdren “does not now support and has never supported compulsory abortions, compulsory sterilization, or other coercive approaches to limiting population growth.” At best, a passage at the end of 788 and the beginning of 789 suggests that the three authors would happily opt for less coercive measures, provided those measures work to their satisfaction.

Holdren and the Ehrlichs are not alone. There’s a long history, dating back at least to the 1700s, of doomsters insisting that population growth coupled with a scarcity of natural resources will very soon ruin civilization.

What’s behind this pessimism, a pessimism apparently immune to contrary historical evidence? In Acton’s new Effective Stewardship DVD curriculum, soon to be released by Zondervan (go here), Acton president Rev. Robert Sirico puts the matter in philosophical and theological context. There he argues that the problem is rooted in a false anthropology, one in which the doctrine of the imago dei is eclipsed, and with it the powerful role of human creativity:

There are many people, including religious leaders, who say that the essential problem is a problem of resource, and that if it’s a problem of resource then it’s a problem of population. This is what I call humaniphobia.

The image in the humaniphobe’s mind is that the human person is one big mouth that is constantly ingesting, and then polluting.

On such a view, humans are the problem rather than the solution. The takeaway question is this: Do we really want to hand our health care over to the U.S. government when a science adviser like Holdren has the president’s ear?