Answer to Question #178570 in Economics for Lukyamuzi Jude

Question

What economic ideas did st. Thomas Aquinas address himself to in the preclassical period??

Answer 1

Following Aristotle, F. Aquinas (1225-1274), an outstanding Christian theologian in his work "Theology of Theology" develops the idea of ​​the naturalness of a natural economy and, in this regard, makes the division of wealth into natural (products of natural economy) and artificial (gold and silver). The latter, in his opinion, does not make a person happy and the acquisition of such wealth cannot be a goal, since the latter must consist in "moral improvement."

In accordance with the dogmas of Aristotle and the traditions of the Catholic Church, F. Aquinas condemned usury, calling it a "shameful craft". He wrote that by lending money in growth, lenders, seeking to present the deal as fair, demand interest as payment for the time they give the borrower. However, time is a common good, given by God to everyone equally. Among medieval philosophers, the common belief was that usurers are unworthy of an honest name and are superfluous for society, since they do not provide it with the objects necessary for life. However, with regard to trade, medieval scholastics, including F. Aquinas, believed that it was a legitimate occupation, since the difference in the natural resources of different countries indicates that it was provided for by Providence. Trading profits do not in themselves introduce anything vicious into economic life and can be used for an honest purpose. In addition, profit can be a payment for labor if there is a sale of a thing "changed for the better." But at the same time, trade is a dangerous business (in terms of temptation).

F. Aquinsky's work was positively assessed as necessary for life, getting rid of idleness, strengthening morality. At the same time, following Aristotle, F. Aquinas rejects the idea of ​​the equivalence of all types of labor, considering physical labor as a slave occupation. Departing from the ideas of early Christianity, medieval thinkers argue that private property is necessary, at least in this imperfect world. When good belongs to individuals, people work harder and argue less. Therefore, it is necessary to tolerate the existence of private property as a concession to human weakness, but at the same time, in itself, it is by no means desirable. The prevailing view, at least in the area of ​​normative ethics, was that property, even at its best, represented some kind of burden. At the same time, it must be obtained legally, belong to as many people as possible and provide funds to help the poor. Its owners must be ready to share with those in need, even if their need does not reach poverty. Charity in the Middle Ages was enormous, but as wasteful as it was, so ineffectual.

From ancient Greek thinkers into medieval scholasticism the conviction entered that it is impossible to become very rich while remaining virtuous. According to Plato, any surplus product should be viewed as a subversion of social order, as a theft. In this case, first of all, it is not the amount of social welfare that decreases, but the amount of public virtue. The thinkers of Ancient Greece were primarily concerned with ethical issues, not economic efficiency.

In the view of F. Aquinas, society was thought of as hierarchical and class-based, where it would be sinful to rise above one's class, for the division into estates was established by God. In turn, belonging to the class determines the level of wealth to which a person should strive. But striving for more is no longer enterprise, but greed, which is a mortal sin.

These provisions formed the basis of F. Aquinsky's reasoning about a fair price. During the Middle Ages, the fair price debate involved two points of view:

1) the price is fair that ensures the equivalence of the exchange

2) the price is fair that provides people with welfare befitting their class.