The Opportunity Cost of Giving
Economics studies how and why people allocate and use their limited resources. Everyone regardless of age, wealth, or ethnicity has 2 basic resources: money and time. Opportunity cost is the cost of choosing one decision over another. Money: I got a call the other day from Alliance Defending Freedom asking for financial support for their many ongoing legal battles (1). As someone interested in politics and the constitution these battles are very important to me. But then Glenn Beck called, asking for donations for the Nazarene Fund to evacuate as many Christians as possible from the trouble brewing in Afghanistan (2). Meanwhile Samaritan’s Purse was also pleading for supplies and personnel for Haiti following their 7.2 earthquake (3). I only have a limited amount of money and I cannot support every request though they are all important to me. By choosing to support one organization I am simultaneously choosing to not support another. Time: “Look carefully then how you walk, not as ...