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

No Free Lunch: preface and acknowledgments vii This suggests that economics and Christianity have a relationship. The central task of economics is to understand how we make choices. Properly defined, economics studies what a person does, while Christianity has prescriptions for what a person should do. Economic textbooks often make the point early in chapter 1 on the difference between positive and normative economics (as we will do also). Positive economics explains “what is,” while normative economics explains “what should be.” Yet, as much as economists try to keep economics purely a positive science, the results of economic analysis are most often applicable to public policy choices and invariably have normative implications. Economic analysis lends itself to answering the question: what should we collectively do? Further, the assumptions made to make models tractable and even the very nature of economic goals (e.g., efficiency) have subtle normative assumptions embedded. Since we will have embedded morality, the approach in this text is to make that morality explicit with a Christian worldview behind every economic principle. PRINCIPLE OF REAPING AND SOWING This book also emphasizes that our choices fit into God’s economy through what some like to call the Principle of Sowing and Reaping. I have received very good counsel during the review process of this book to be very careful in avoiding presenting what is clearly a false gospel—the “health and wealth” gospel. I’ve tried to ensure no misunderstandings in the text, but it’s useful to more fully describe what I mean, and what I do not mean here, so when the reader sees my comment, he or she can understand the broader purpose in my more limited text statements. Fundamentally, I believe there is an ethical “cause and effect,” whereby our actions that are consistent with God’s revealed will generally lead to good results in this life (often even good material results) and always lead to good results for eternity (when done in faith). We see this in both Scripture and in our everyday life. As it says in Galatians 6:6-9, “ 6 The one who is taught the word is to share all good things with the one who teaches him. 7 Do not be deceived, God is not mocked; for whatever a man sows, this he will also reap. 8 For the one who sows to his own flesh will from the flesh reap corruption, but the one who sows to the Spirit will from the Spirit reap eternal life. 9 Let us not lose heart in doing good, for in due time we will reap if we do not grow weary.” Jesus also tells us to seek first his kingdom and righteousness, and all else (the material things we need in this world: food, clothing, etc.) will be added to us (Matthew 6:27- 33) . Further, we see in life that people that are honest, work hard, save and invest, are kind to others, etc., generally have good things happen to them. For example, if someone graduates high school, does not have a baby out of wedlock, gets married (and stays married), and gets a job (and keeps it), he or she is highly unlikely to end up in poverty. This is consistent with someone that lives a life according to what we see in wisdom literature; Proverbs gives all of us sound wisdom as to godly behaviors that