| | This simple theorem, first published in a 1960 paper<ref>Ronald H. Coase, ''The Problem of Social Cost'', 3 J. Law & Econ. 1 (1960)</ref> by [[Ronald Coase]] who won the Nobel Prize for Economics for this in 1991, has powerful implications for economics, law, politics, and even [[Christianity]]. This theorem reinforces teachings of [[Jesus]], such as the parable of the sprouting seed,<ref>[[Mark 1-8 (Translated)#4:26|Mark 4:26-29]].</ref> and supports [[conservative]] interpretations of the [[Chicago School of Economics]].<ref>The Coase theorem can also be considered the "[[invisible hand]]" on steroids.</ref> | | This simple theorem, first published in a 1960 paper<ref>Ronald H. Coase, ''The Problem of Social Cost'', 3 J. Law & Econ. 1 (1960)</ref> by [[Ronald Coase]] who won the Nobel Prize for Economics for this in 1991, has powerful implications for economics, law, politics, and even [[Christianity]]. This theorem reinforces teachings of [[Jesus]], such as the parable of the sprouting seed,<ref>[[Mark 1-8 (Translated)#4:26|Mark 4:26-29]].</ref> and supports [[conservative]] interpretations of the [[Chicago School of Economics]].<ref>The Coase theorem can also be considered the "[[invisible hand]]" on steroids.</ref> |
| − | The Coase theorem proves the availability of infinite opportunities to all who are productive. This is helpful to understanding paradoxical miracles and parables. For example, the [[Multiplication of the loaves]] is straightforward example of supplies (food) becoming available to further the most productive activity (spreading the [[Gospel]]). The otherwise baffling [[Parable of the Vineyard Workers]], whereby workers who toil merely at the end the day are paid as much as those who worked the full day, is logical under the Coase Theorem because the owner needed the work done and thus was willing to overpay some for it. | + | The Coase theorem proves the availability of infinite opportunities to all who are productive. This is helpful to understanding paradoxical miracles and parables. For example, the [[Multiplication of the loaves]] is straightforward example of supplies (food) becoming available to further the most productive activity (spreading the [[Gospel]]). The otherwise baffling [[Parable of the Vineyard Workers]], whereby workers who toil merely at the end the day are paid as much as those who worked the full day, is logical under the Coase Theorem because the owner needed the work done and thus was willing to overpay some for it. The most productive use of capital in that parable was to "overpay" for the late-arriving workers. |
| | '''''This theorem also illustrates the primacy of the future over the past'''''. Setbacks or windfalls are rarely as important as they first seem, because the Coase theorem teaches that optimal activity will occur regardless of who owns rights. The greatest [[chess]] player, Magnus Carlsen, is so good because he can "let go" of strategy and reevaluate options with every new board configuration during a game. '''''Lottery winners are almost never better off in the long run, and the Coase theorem predicts that paradoxical result'''''. | | '''''This theorem also illustrates the primacy of the future over the past'''''. Setbacks or windfalls are rarely as important as they first seem, because the Coase theorem teaches that optimal activity will occur regardless of who owns rights. The greatest [[chess]] player, Magnus Carlsen, is so good because he can "let go" of strategy and reevaluate options with every new board configuration during a game. '''''Lottery winners are almost never better off in the long run, and the Coase theorem predicts that paradoxical result'''''. |