John Kenneth Galbraith was the most widely read economist of the 20th century, and certainly one ... more John Kenneth Galbraith was the most widely read economist of the 20th century, and certainly one of the most interesting. Besides his long career teaching economics at Harvard, Galbraith held impor...
The American Journal of Economics and Sociology, 2021
The often‐stated goal of economic development is to lift people out of poverty. However, the poor... more The often‐stated goal of economic development is to lift people out of poverty. However, the poor are usually an afterthought in the design of development policy, with any benefit that reaches them “trickling down” from what goes to whatever group is the real focus of development policy. All development policy consists of directing and redirecting resources to the group that is felt will promote the aims of those implementing the policy. Political realignments and the evolution of capitalism have changed the group that is in the vanguard of development at various stages. In this essay (Part 1), we will look at the economic arguments that each of the first three vanguard groups—merchants, capitalists, and bureaucrats—applied to development policy, with special emphasis of the position of the poor. In a separate essay (Part 2), we will look at the Catholic principle of the “preferential option for the poor,” which recommends making the poor the central focus of development policy. In ...
The American Journal of Economics and Sociology, 2021
In a previous essay (Part 1), we examined the economic arguments for development policies that pl... more In a previous essay (Part 1), we examined the economic arguments for development policies that placed certain groups at the vanguard of development policy, making note of the place of the poor in these arguments. In this essay (Part 2), we look at the case for making the poor the central focus of development policy, following the principle in Catholic social thought of the “preferential option for the poor.” That principle recommends evaluation of policies and outcomes first and foremost on how they affect the poor. In looking at the U.N. development agenda, from the first development decade to the millennium development goals and sustainable development goals, we can see a tension between economic growth and eradication of poverty. Over time, a shift in focus has occurred towards placing the poor at the center of development policy. By focusing on the poor and poverty eradication, development policy becomes more about human flourishing, which, ironically, produces higher levels of ...
The American Journal of Economics and Sociology, 2019
Pope Francis (2013: §53) has emphatically stated his views on the way the modern world economy ef... more Pope Francis (2013: §53) has emphatically stated his views on the way the modern world economy effectively treats some people as less than human: No to an economy of exclusion. Just as the commandment "Thou shalt not kill" sets a clear limit in order to safeguard the value of human life, today we also have to say "thou shalt not" to an economy of exclusion and inequality. Such an economy kills. The articles in this issue are a response to and reflection on Pope Francis's harsh attack and condemnation of the current economic system. In this introduction, we will first discuss why exclusion matters. Second, we will look at the relationship between theology and economics. Finally, we will give an overview of the articles in this issue, showing how each contribution relates to the theme of the economy of exclusion. Why Exclusion Matters In many ways the argument against exclusion is part of the origin story from which modern economic theory arose. Modern economics is typically dated as starting with Adam Smith's ([1776] 1976) Inquiry into the Nature and Causes of the Wealth of Nations. 1 One of the major themes of The Wealth of Nations is Smith's attack on the mercantilist ideas and policies that dominated 18 th-century economic policy. Mercantilism is a system that used exclusion to give preferences to companies and traders based on 1) nationality (to keep gold and silver from leaving the country) and 2) political connections (by which businesses were granted trading charters and monopolies).
What Can Economists Learn from Catholic Social Thought? (by Charles M.A. Clark) - For most of the... more What Can Economists Learn from Catholic Social Thought? (by Charles M.A. Clark) - For most of the 20th Century economists have tried to eliminate ethical analysis from economic theory. This has been to the detriment of economics, because ethical analysis is an essential part of economic behavior. Catholic social thought examines economic and social life from an explicitly ethical perspective, the perspective of the Gospels. It is the argument of this essay that economists can learn a great deal from the Catholic social thought tradition, especially how to examine economic issues based on a view of the human person grounded in human dignity rather than the narrow and unrealistic rational economic man model widely used. Keywords: Catholic social thought; Religion and economics; Social values; Ethics and economics.
ABSTRACT The financial crisis was partially caused by neoclassical economic theory and theorists.... more ABSTRACT The financial crisis was partially caused by neoclassical economic theory and theorists. This failure has prompted business educators to rethink the role of neoclassical economics as the foundation of business education. The author connects this question to the more general critique of the scientific model of business education and the old historical versus scientific methodology debate in the history of economics. It is argued that neoclassical economics has serious limitations that make it a poor foundation for understanding business behavior in a real economy. A realistic and useful business education needs to include historical and social context, both of which neoclassical economics must exclude.
This is a theoretical examination of the scientific assumptions underlying much of economic theor... more This is a theoretical examination of the scientific assumptions underlying much of economic theory. Part I discusses the philosophy of science in general, including the work of Popper, Lakatos, Feyerabend, Bartley, Kuhn, Fleck, Polyani, Toulmin, and Hanson. Part II focuses on Popper, Lakatos, and Kuhn and their philosophies of economics. The author concludes that economists abuse methodology, especially paradigms that are used to demonstrate that a given school of thought is more scientific than another.
In his essay "Christian Morals and the Competitive System," Thorstein Veblen noted that... more In his essay "Christian Morals and the Competitive System," Thorstein Veblen noted that "Western Civilization was both Christian and competitive (pecuniary)" and that each was based on a contradictory code of ethics. Given the rise in interest on the relationship between Christianity and economics and politics, I think this is a good time to revisit Veblen's central argument. l While I think Veblen is correct in pointing out that such a conflict exists, I would suggest that much of Veblen's analysis misses the mark. Veblen attempted to explain the differences between the two ethical codes by contrasting their sociological and historical origins. According to Veblen, each code was a reaction to its respective environment as if each were an adaptation designed to meet existing material conditions. Leaving aside the question of the accuracy of his analysis of these environmental factors, I think that a stronger argument can be made that the lasting influence of the ethics of Christianity and capitalism stems from the ideas and ideals they promote, that these ideas and ideals come from their respective "visions" of a just society, and that their conflicting ethical codes come from these differing "visions." I do not think either can be explained by, or reduced to, the environments from which they sprang, even if environmental factors do play an important role in how specific societies attempt to live according to either system of ethics. It is as systems of thought, that is, perspectives with which to view the world, and as codes of ideal behavior that each gets its staying power. I would suggest a more useful approach would be that followed by Veblen in his famous essay "On the Preconceptions of Economic Science" (1919). In this three-part essay Veblen attempted to understand the development of economic theory by examining its underlying philosophical preconceptions, with the presumption that these preconceptions played an active role in their development. I think this approach would be
It is no accident or coincidence that just about every human society has had some mechanism to pr... more It is no accident or coincidence that just about every human society has had some mechanism to promote economic equity. From the Old Testament’s redistribution of wealth through the Jubilee to the modern welfare state, a common feature of human society has been the redistribution of wealth and incomes to account for those who have not been adequately provided for by the given “rules of the game” that determine income allocation. This constant feature of social living shows that there is a need to account for factors besides existing property rights in determining the ability of individual community members to subsist and thrive. The reason that such redistribution schemes are a fundamental feature of human societies is that wealth and incomes are collectively created, but often the rules that determine the initial distribution of incomes, usually based on power and property rights, do not typically provide for the whole community. Many people in the community are not currently economically productive but still need to be provided for to ensure the economic sustainability of the community (children and the elderly). Furthermore, many factors besides what is necessary to promote future production influence what the initial distribution of income will be (such as a lucky hunter), thus it may be harmful to the health of the community to allow such inequalities to persist.
Reaction among conservatives to Pope Francis' Evangelii Gaudium has most often been negative.... more Reaction among conservatives to Pope Francis' Evangelii Gaudium has most often been negative. Ross Douthat, however, in his 2013 New York Times op-ed, has offered a more nuanced critique. Our four Roundtable authors respond to Douthat's implied invitation to a discussion by responding from the viewpoint of Catholic social thought.
John Kenneth Galbraith was the most widely read economist of the 20th century, and certainly one ... more John Kenneth Galbraith was the most widely read economist of the 20th century, and certainly one of the most interesting. Besides his long career teaching economics at Harvard, Galbraith held impor...
The American Journal of Economics and Sociology, 2021
The often‐stated goal of economic development is to lift people out of poverty. However, the poor... more The often‐stated goal of economic development is to lift people out of poverty. However, the poor are usually an afterthought in the design of development policy, with any benefit that reaches them “trickling down” from what goes to whatever group is the real focus of development policy. All development policy consists of directing and redirecting resources to the group that is felt will promote the aims of those implementing the policy. Political realignments and the evolution of capitalism have changed the group that is in the vanguard of development at various stages. In this essay (Part 1), we will look at the economic arguments that each of the first three vanguard groups—merchants, capitalists, and bureaucrats—applied to development policy, with special emphasis of the position of the poor. In a separate essay (Part 2), we will look at the Catholic principle of the “preferential option for the poor,” which recommends making the poor the central focus of development policy. In ...
The American Journal of Economics and Sociology, 2021
In a previous essay (Part 1), we examined the economic arguments for development policies that pl... more In a previous essay (Part 1), we examined the economic arguments for development policies that placed certain groups at the vanguard of development policy, making note of the place of the poor in these arguments. In this essay (Part 2), we look at the case for making the poor the central focus of development policy, following the principle in Catholic social thought of the “preferential option for the poor.” That principle recommends evaluation of policies and outcomes first and foremost on how they affect the poor. In looking at the U.N. development agenda, from the first development decade to the millennium development goals and sustainable development goals, we can see a tension between economic growth and eradication of poverty. Over time, a shift in focus has occurred towards placing the poor at the center of development policy. By focusing on the poor and poverty eradication, development policy becomes more about human flourishing, which, ironically, produces higher levels of ...
The American Journal of Economics and Sociology, 2019
Pope Francis (2013: §53) has emphatically stated his views on the way the modern world economy ef... more Pope Francis (2013: §53) has emphatically stated his views on the way the modern world economy effectively treats some people as less than human: No to an economy of exclusion. Just as the commandment "Thou shalt not kill" sets a clear limit in order to safeguard the value of human life, today we also have to say "thou shalt not" to an economy of exclusion and inequality. Such an economy kills. The articles in this issue are a response to and reflection on Pope Francis's harsh attack and condemnation of the current economic system. In this introduction, we will first discuss why exclusion matters. Second, we will look at the relationship between theology and economics. Finally, we will give an overview of the articles in this issue, showing how each contribution relates to the theme of the economy of exclusion. Why Exclusion Matters In many ways the argument against exclusion is part of the origin story from which modern economic theory arose. Modern economics is typically dated as starting with Adam Smith's ([1776] 1976) Inquiry into the Nature and Causes of the Wealth of Nations. 1 One of the major themes of The Wealth of Nations is Smith's attack on the mercantilist ideas and policies that dominated 18 th-century economic policy. Mercantilism is a system that used exclusion to give preferences to companies and traders based on 1) nationality (to keep gold and silver from leaving the country) and 2) political connections (by which businesses were granted trading charters and monopolies).
What Can Economists Learn from Catholic Social Thought? (by Charles M.A. Clark) - For most of the... more What Can Economists Learn from Catholic Social Thought? (by Charles M.A. Clark) - For most of the 20th Century economists have tried to eliminate ethical analysis from economic theory. This has been to the detriment of economics, because ethical analysis is an essential part of economic behavior. Catholic social thought examines economic and social life from an explicitly ethical perspective, the perspective of the Gospels. It is the argument of this essay that economists can learn a great deal from the Catholic social thought tradition, especially how to examine economic issues based on a view of the human person grounded in human dignity rather than the narrow and unrealistic rational economic man model widely used. Keywords: Catholic social thought; Religion and economics; Social values; Ethics and economics.
ABSTRACT The financial crisis was partially caused by neoclassical economic theory and theorists.... more ABSTRACT The financial crisis was partially caused by neoclassical economic theory and theorists. This failure has prompted business educators to rethink the role of neoclassical economics as the foundation of business education. The author connects this question to the more general critique of the scientific model of business education and the old historical versus scientific methodology debate in the history of economics. It is argued that neoclassical economics has serious limitations that make it a poor foundation for understanding business behavior in a real economy. A realistic and useful business education needs to include historical and social context, both of which neoclassical economics must exclude.
This is a theoretical examination of the scientific assumptions underlying much of economic theor... more This is a theoretical examination of the scientific assumptions underlying much of economic theory. Part I discusses the philosophy of science in general, including the work of Popper, Lakatos, Feyerabend, Bartley, Kuhn, Fleck, Polyani, Toulmin, and Hanson. Part II focuses on Popper, Lakatos, and Kuhn and their philosophies of economics. The author concludes that economists abuse methodology, especially paradigms that are used to demonstrate that a given school of thought is more scientific than another.
In his essay "Christian Morals and the Competitive System," Thorstein Veblen noted that... more In his essay "Christian Morals and the Competitive System," Thorstein Veblen noted that "Western Civilization was both Christian and competitive (pecuniary)" and that each was based on a contradictory code of ethics. Given the rise in interest on the relationship between Christianity and economics and politics, I think this is a good time to revisit Veblen's central argument. l While I think Veblen is correct in pointing out that such a conflict exists, I would suggest that much of Veblen's analysis misses the mark. Veblen attempted to explain the differences between the two ethical codes by contrasting their sociological and historical origins. According to Veblen, each code was a reaction to its respective environment as if each were an adaptation designed to meet existing material conditions. Leaving aside the question of the accuracy of his analysis of these environmental factors, I think that a stronger argument can be made that the lasting influence of the ethics of Christianity and capitalism stems from the ideas and ideals they promote, that these ideas and ideals come from their respective "visions" of a just society, and that their conflicting ethical codes come from these differing "visions." I do not think either can be explained by, or reduced to, the environments from which they sprang, even if environmental factors do play an important role in how specific societies attempt to live according to either system of ethics. It is as systems of thought, that is, perspectives with which to view the world, and as codes of ideal behavior that each gets its staying power. I would suggest a more useful approach would be that followed by Veblen in his famous essay "On the Preconceptions of Economic Science" (1919). In this three-part essay Veblen attempted to understand the development of economic theory by examining its underlying philosophical preconceptions, with the presumption that these preconceptions played an active role in their development. I think this approach would be
It is no accident or coincidence that just about every human society has had some mechanism to pr... more It is no accident or coincidence that just about every human society has had some mechanism to promote economic equity. From the Old Testament’s redistribution of wealth through the Jubilee to the modern welfare state, a common feature of human society has been the redistribution of wealth and incomes to account for those who have not been adequately provided for by the given “rules of the game” that determine income allocation. This constant feature of social living shows that there is a need to account for factors besides existing property rights in determining the ability of individual community members to subsist and thrive. The reason that such redistribution schemes are a fundamental feature of human societies is that wealth and incomes are collectively created, but often the rules that determine the initial distribution of incomes, usually based on power and property rights, do not typically provide for the whole community. Many people in the community are not currently economically productive but still need to be provided for to ensure the economic sustainability of the community (children and the elderly). Furthermore, many factors besides what is necessary to promote future production influence what the initial distribution of income will be (such as a lucky hunter), thus it may be harmful to the health of the community to allow such inequalities to persist.
Reaction among conservatives to Pope Francis' Evangelii Gaudium has most often been negative.... more Reaction among conservatives to Pope Francis' Evangelii Gaudium has most often been negative. Ross Douthat, however, in his 2013 New York Times op-ed, has offered a more nuanced critique. Our four Roundtable authors respond to Douthat's implied invitation to a discussion by responding from the viewpoint of Catholic social thought.
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