Economic Principles versus Spiritual Principles

Economic principles help to explain and predict people’s decision making process. The law of diminishing marginal utility, for example, states that the extra utility (or satisfaction) obtained from an extra unit of a good (or service) declines as we consumer more of it. When you are hungry, the first hamburger you eat gives you a lot of satisfaction; the second hamburger may still taste good but not as good as the first; the third hamburger gives you even smaller extra satisfaction, and so on. This principle explains the classic “water-diamond” paradox. Why is water (which is essential for survival) cheaper than diamond (a luxury item)? The answer: water is so plentiful that an extra glass of water gives us only small extra satisfaction, while an extra carat of diamond adds a great deal more satisfaction. Since we are willing to pay more for an item that gives us higher marginal satisfaction, diamond is more expensive than water. Price reflects marginal utility.

Most of items we consume follow the law of diminishing marginal utility. It is not easy to find many exceptions to this principle. Occasionally, my students would say, “But there is no diminishing utility for money. The more money we have, the more satisfaction we get.” This sounds right, but actually the statement is incorrect as it is a result of misunderstanding the law. The law says that the “marginal” utility of an item declines as we consume more of it. Total satisfaction may still be increasing (albeit at a decreasing rate) while marginal satisfaction declines.

Would this law be applicable in the spiritual world as well? I believe that it may not be the case. For one thing, I find that the more I study the word of God, the more understanding I have about God and his infinite love, and the more satisfaction I have in my heart. There seems to be no diminishing marginal utility for consuming the spiritual food! Perhaps this is what Jesus meant when he said “If anyone has ears to hear, let him hear.” “Consider carefully what you hear,” he continued. "With the measure you use, it will be measured to you—and even more. Whoever has will be given more; whoever does not have, even what he has will be taken from him" (Mark 4:23-25).

Things in heaven will not be the same as things in this world. Who wants to live eternally in heaven if it is just an extension of this cursed world? Both the original paradise described in Genesis 2 and the Prophet Isaiah’s description of the coming kingdom of God (Isaiah 11:6-9), not to mention the book of Revelation, tell us that it will be a different place. Many of the economic principles we learn in this world will be useless there. We will have to learn God’s economics. The economics of God may include principles such as “Blessed are the poor in spirit, for theirs is the kingdom of heaven” (Matthew 5:3).