Good Saturday Morning!

1. Question – Do you think economics matters to Mother Teresa?

2. Thought – Even though no one would of accused the late Mother Teresa of greediness, her self-interest caused her to respond to incentives, too. When Mother Teresa’s organization, the Missionaries of Charity, attempted to open a shelter for the homeless in New York City, the city required expensive (but unneeded) alterations to the building. The organization abandoned the project. The decision did not reflect any change in Mother Teresa’s commitment to the poor. Instead, it reflected a change in incentives. When the cost of helping the poor in New York went up, Mother Teresa decided that her resources would do more good elsewhere. Changes in incentives influence everyone’s choices, regardless of whether we are greedy materialists, compassionate altruists, or somewhere in between. (Common Sense Economics by Gwartney, Stroup & Lee)

“The minister was usually the best educated man in his community.” (Franklin Cole)