History’s most remarkable transformation 

From an article by The Institute for Faith, Work & Economics

Consider one of history’s most remarkable transformations: In 1800, 90% of humanity lived in subsistence poverty. Today, that figure has flipped, and according to the United Nations Development Programme (UNDP), 90% of all people have escaped poverty’s grip.

While the remaining 10% in poverty is still a global tragedy, we can celebrate an unprecedented and rapid decline in material deprivation over the past three decades. Expanding worldwide prosperity means the vast majority of people are no longer struggling merely to survive and now have the opportunity to pursue broader human flourishing.

This rise in prosperity has followed an economic path envisioned centuries ago by Adam Smith, the 18th-century Scottish economist and philosopher often called the father of modern economics. Yet to reduce his ideas to the mechanics of markets guided by an “Invisible Hand” is to miss the moral and spiritual depth of his insights.

In “The Theory of Moral Sentiments,” Smith emphasized that human beings are social creatures shaped by sympathy, virtue, and the desire for mutual recognition. Smith argued that people have an innate desire to trade because they are driven by a hunger to improve their lives.

Though neither people nor markets are perfect, the progression in free market capitalism over the past two centuries has enriched the lives of billions of human beings. In contrast, central planning has stifled innovation and trapped people in poverty in some of the poorest countries of the world, such as Cuba and North Korea.

Nevertheless, as Smith himself recognized, economic flourishing was never solely about the accumulation of material wealth. His vision of a well-ordered society aligns with biblical principles where individuals live with dignity, exercising their gifts, and engaging in honest labour that paradoxically serves the common good.

While the Bible consistently affirms the dignity of work (Gen. 2:15, Eph. 4:28), Jesus taught in the Sermon on the Mount: “So do not worry, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’… But seek first his kingdom and his righteousness” (Matt. 6:31–33).

This reorientation of priorities reminds us that true flourishing is found in right relationship with God, others, and creation. The Hebrew concept of shalom describes this holistic well-being - material, relational, spiritual, and creational - that God intended from the beginning.

Economic freedom creates the conditions for deeper pursuits - creativity, community, and generosity. In this light, the path to flourishing is not just through markets, but through moral formation and divine grace.

In an age increasingly tempted by promises of utopia through state control, we would do well to remember the wisdom of Adam Smith and the eternal truths of Scripture. Economic flourishing is a means to a greater end: the full, vibrant, God-honouring life of shalom.

Read the full article here.