Efficiency is mentioned often in economics. It seems to be one of the most important concepts in the entire field of study. It does not matter if something is fair or right, as long as it is efficient. If there is a problem that faces society and the solution implemented happens to benefit the rich more than the poor then as long as the rich benefit more than the poor lose, it is efficient as far as simple economics goes. But our economics cannot be so simple.This theme is present in a lot of the works that I have read so far. In a way it is even more democratic than democracy. If it benefits the most people the most, then it should be used. Period. But that line of reasoning can lead to some horrifying results. Most people, whether they are religious are not, find such an outlook repulsive. People are not products or resources in some grand international collection of interlocking gears and should not be treated as such.
As a Christian, I am confronted with many New Testament texts that command me to care for others as much, if not more than, myself. Economically inefficient commands and stories abound. There are the parables of the lost sheep, the lost coin and the prodigal son. Why not be content with the ninety-nine sheep that did not stray or the nine coins that are still in hand? Why not shower love upon the obedient son who stayed by his father's side? In these examples, economic efficiency instructs us to go in the opposite direction of what Jesus tells us to do.In the past few weeks I have read example after of example of efficient outcomes and effective allocations of resources. But something was missing. Sure, applying sound economic principles to my own life can certainly help me. If these principles were applied more often to our government, it would probably help the vast majority of US citizens. But what about those who fall outside the vast majority? As Jesus teaches us in John 12:8, "You will always have the poor among you..." I started to wonder if the economics books and blogs I was reading would have anything to say on the matter. It cannot only be about improving oneself, ones peer group or even the "majority." There are always the others to consider. Again in the New Testament, James(2:15-17) tells us:
"If a brother or sister is poorly clothed and lacking in daily food, and one of you says to them, 'Go in peace, be warmed and filled,' without giving them the things needed for the body, what good is that? So also faith by itself, if it does not have works, is dead."
Turns out, there are those who know what economic tools can provide and where they fall short. I think I was looking to economics to provide easy answers. If this, then do that. If that then do this. Economics provides illumination to a degree. It does not provide easy answers. Take the following quotation from Dr. Steven E. Rhoads' book, The Economist's View of the World
:"Thus, despite economists' prominent role in proposing alternatives to existing programs and despite the good sense of many of their suggestions, the discipline is unlikely to make major contributions to solving one of our principal domestic problems - pockets of dependency and poverty in a land of plenty."
The subtitle of this book is Government, Markets and Public Policy. I recommend this book if you have an interest in any of those fields. Dr. Rhoads says quite clearly that economists should not lose site of the ultimate purpose of their profession, that is to improve the lot of humanity. It is not to make the rich richer or to keep this or that party in power. It is an attempt to make informed decisions. There are only so many resources available to us. Part of what makes an economist sound cold hearted is that he will announce, ahead of time, what the possible costs will be in human lives and suffering. The idealist ignores such costs and asks us to believe that everything will be okay if only...
Dr. Rhoads goes on to say in his book:
"There is great uncertainly in many analyses - uncertainty about the potential effectiveness of programs and about how to value that effectiveness...The more complicated the problem, the more uncertain the variables involved, the more likely are bad decisions in the absence of analysis."
There are many other great passages in this book but I cannot list too many more or I will end up quoting whole chapters. What I like most about it is the reasoned way in which Dr. Rhoads talks about matters of public policy in addition to economic theory. As with most powerful tools, economics can be used to accomplish amazing thing in the hands of a trained craftsman. I am not such a craftsman, but I hope to at least gain some proficiency in this area of study. It is fascinating stuff. I hope that I am able to apply it properly as I learn more."'Blessed is he who in the name of charity and goodwill shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children'...The truth is, you're the weak, and I'm the tyranny of evil men. But I'm trying, Ringo. I'm trying real hard to be the shepherd." - Jules from Pulp Fiction
.It is a great scene. I just watched it again.
