No Free Lunch: Economics for a Fallen World: Third Edition, Revised

Chapter Six: Applications in Markets 127 THE ALTERNATIVE TO MUTUALLY BENEFICIAL EXCHANGE 1 Kings 21:1-16 Ahab Covets Naboth’s Vineyard 1 Now it came about after these things that Naboth the Jezreelite had a vineyard which was in Jezreel beside the palace of Ahab king of Samaria. 2 Ahab spoke to Naboth, saying, “Give me your vineyard, that I may have it for a vegetable garden because it is close beside my house, and I will give you a better vineyard than it in its place; if you like, I will give you the price of it in money.” 3 But Naboth said to Ahab, “The Lord forbid me that I should give you the inheritance of my fathers.” 4 So Ahab came into his house sullen and vexed because of the word which Naboth the Jezreelite had spoken to him; for he said, “I will not give you the inheritance of my fathers.” And he lay down on his bed and turned away his face and ate no food. 5 But Jezebel his wife came to him and said to him, “How is it that your spirit is so sullen that you are not eating food?” 6 So he said to her, “Because I spoke to Naboth the Jezreelite and said to him, ‘Give me your vineyard for money; or else, if it pleases you, I will give you a vineyard in its place.’ But he said, ‘I will not give you my vineyard.’” 7 Jezebel his wife said to him, “Do you now reign over Israel? Arise, eat bread, and let your heart be joyful; I will give you the vineyard of Naboth the Jezreelite.” 8 So she wrote letters in Ahab’s name and sealed them with his seal, and sent letters to the elders and to the nobles who were living with Naboth in his city. 9 Now she wrote in the letters, saying, “Proclaim a fast and seat Naboth at the head of the people; 10 and seat two worthless men before him, and let them testify against him, saying, ‘You cursed God and the king.’ Then take him out and stone him to death.” Jezebel’s Plot 11 So the men of his city, the elders and the nobles who lived in his city, did as Jezebel had sent word to them, just as it was written in the letters which she had sent them. 12 They proclaimed a fast and seated Naboth at the head of the people. 13 Then the two worthless men came in and sat before him; and the worthless men testified against him, even against Naboth, before the people, saying, “Naboth cursed God and the king.” So they took him outside the city and stoned him to death with stones. 14 Then they sent word to Jezebel, saying, “Naboth has been stoned and is dead.” 15 When Jezebel heard that Naboth had been stoned and was dead, Jezebel said to Ahab, “Arise, take possession of the vineyard of Naboth, the Jezreelite, which he refused to give you for money; for Naboth is not alive, but dead.” 16 When Ahab heard that Naboth was dead, Ahab arose to go down to the vineyard of Naboth the Jezreelite, to take possession of it. Mutually beneficial exchange is the cornerstone of free market economics. But this requires each side to voluntarily cooperate—each must ex ante believe they’ll be better off from the exchange. In this scripture we find that no voluntary exchange was possible; Naboth did not expect any consumer surplus from Ahab’s offer—his land was not for sale at any price. Under the rule of law (an institution highlighted in chapter 1), that would be the end of it. However, if people will not follow the rule of law, we end up with the rule (or caprice) of men: