In this article, we explore the biblical narrative of the Garden of Eden through the lens of modern economic theory, proposing a conceptual model of Eden as a state of pre-institutional equilibrium. By analysing Eden as a hypothetical economy devoid of scarcity, currency, and formal labour markets, we aim to understand the foundational transition from a world of natural abundance to one shaped by institutions, incentives, and economic constraints.

Reframing this ancient myth as an economic thought experiment allows us to examine the origins of scarcity, the role of institutions, and the theoretical possibility of a post-scarcity society. Through methodological individualism, general equilibrium theory, and institutional economics, this article positions Eden as an abstract benchmark for understanding human economic structures following the expulsion — a moment that can be interpreted as the symbolic beginning of political economy itself.

Unlike conventional analyses confined to resource-constrained societies, this inquiry investigates Eden as a society where all material needs were effortlessly satisfied — eliminating the foundational drivers of exchange, property rights, and economic policy. Can an economy exist in the absence of scarcity? And if so, what can such a theoretical construct teach us about the limitations and aspirations of real-world economic systems?

1. Introduction

Although primarily examined in religious or philosophical discourse, the Eden narrative provides fertile ground for economic interpretation. The Genesis account presents a unique state of existence free from resource constraints, coercive institutions, and market structures — an unparalleled opportunity to theorize about pre-institutional human behaviour and resource allocation.

Applying economic methodology to such mythical or theological contexts may appear unconventional. However, prominent scholars have successfully deployed economic reasoning to analyse belief systems, social norms, and historical myths. Gary Becker's "The Economic Approach to Human Behavior" (1976) applies microeconomic logic to social practices, while Laurence Iannaccone's work formalises religion itself as an economic choice under resource constraints. These precedents affirm the legitimacy and academic value of analysing Eden through the prism of economics.

2. Methodological Framework

This analysis employs several core principles of economic theory:

• Methodological Individualism: Adam and Eve are treated as rational agents optimising their utility.
• General Equilibrium Theory: Eden is modelled as a closed system in equilibrium, unaffected by external shocks.
• Institutional Economics: The absence of property rights, formal governance, and monetary systems is a key feature of this pre-institutional state.

In economic terms, Eden represents a theoretical 'corner solution' — an extreme state in which scarcity is eliminated, marginal costs are zero, and traditional trade-offs are absent.

3. Labour and Productivity in Eden

Prior to their expulsion, Adam and Eve's engagement with their environment cannot be described as labour in the conventional economic sense. The Book of Genesis describes their role as "tending the garden" (Genesis 2:15), suggesting activity performed not out of necessity, but as a form of existence or stewardship.

Post-expulsion, labour becomes a burden — "By the sweat of your brow you will eat your food" (Genesis 3:19) — introducing opportunity costs, productivity considerations, and the need for efficient resource allocation. The transition from Eden to the 'economy of exile' thus represents a shift from leisure-driven activity to survival-driven production — a defining moment in the emergence of economic systems.

4. Consumption and Utility in Eden

Eden eliminates the basic economic dilemma of unlimited wants versus finite resources. Key aspects of this environment include:

• Food: Plentiful, nutritious, and freely available (Genesis 2:16).
• Shelter and Clothing: Redundant due to perfect climatic conditions (Genesis 2:25).
• Water: Abundant and naturally distributed (Genesis 2:10).

In such a context, consumption decisions are devoid of strategic trade-offs. Standard models of consumer behaviour, budget constraints, and utility maximisation are irrelevant. Instead, human activity centres on aesthetic, relational, and non-material forms of utility.

5. The Absence of Money and Markets

With scarcity eliminated, the prerequisites for market emergence vanish. According to Carl Menger's theory, money arises organically to reduce transaction costs and solve the "double coincidence of wants" problem. Eden, devoid of such frictions, renders money and markets evolutionarily redundant.

This raises profound questions about the origins of economic structures: If human societies initially existed without markets or money, what circumstances — mythological or historical — catalysed their necessity?

6. Leisure and Non-Material Utility

In Eden, utility is derived not from material accumulation, but from aesthetic appreciation, relationships, and existential fulfilment. This parallels the evolution of advanced economies, where post-materialist values, such as self-expression and social connection, supersede mere material acquisition once basic needs are met.

7. The Expulsion and the Birth of Economics

The expulsion from Eden (Genesis 3:17–19) introduces scarcity, labour, and opportunity costs — in essence, the foundational conditions for economic theory. Ownership, exchange, money, and institutions emerge as mechanisms for managing these new constraints.

Thus, Eden's destruction marks not merely a theological fall, but the genesis of economic systems and the institutional frameworks that characterise human society.

8. Historical Parallels and Policy Aspirations

The Eden ideal reappears throughout history in political and economic efforts to reduce scarcity, enhance welfare, and promote human flourishing. Examples include:

• Franklin D. Roosevelt's New Deal: Designed to mitigate the economic devastation of the Great Depression through employment programs and social protection.
• Lee Kuan Yew's Singapore: A strategic transformation from poverty to prosperity through human capital development and institutional reform.
• Gustav II Adolf's Sweden: Early modern efforts to modernise agriculture and improve national welfare.

Each case reflects an aspiration to approximate Edenic conditions via policy, technology, and institutional innovation. The enduring goal of political economy — minimising scarcity and maximising collective welfare — can be seen as a secular echo of the lost equilibrium of Eden.

9. Conclusion

The economic model of Eden is not a naïve utopian fantasy but a valuable philosophical construct that illuminates the foundations of scarcity, institutional necessity, and human economic evolution. Its destruction symbolises both moral decline and the inescapable entry of economic logic into the human condition.

While unattainable in practice, the Eden benchmark provides critical perspective on the limitations of real-world economies and the policy ambitions designed to approximate its lost equilibrium.