How does religion shaped economic philosophy?
The origin of ideas. Why do ideas come up when they do, where they do? What’s the motivation behind them? What’s the prod?
If you go to 1885, and the rather organized emergence of economics as a discipline with the formation of the American Economic Association, I believe you say the 23 of the 181 founding members were Protestant clergymen?
1885 is an important year for this reason. The Indian National Congress was established when 72 delegates from all over the country met at Bombay in 1885. Prominent delegates included Dadabhai Naoroji, Surendranath Banerjee, Badruddin Tyabji, Pherozeshah Mehta W. C. In 1883, Hume had outlined his idea for a body representing Indian interests in an open letter to graduates of the University of Calcutta. Its aim was to obtain a greater share in government for educated Indians, and to create a platform for civic and political dialogue between them and the British Raj. In North America, the American Civil War ends ten years later in 1865 with the surrender of the Confederate States, beginning the Reconstruction era of U.S. history.
1885, in North America saw the emergence of economics as a discipline with the formation of the American Economic Association, with 23 of the 181 founding members being Protestant clergymen.
Harvard was famously a Puritan Foundation in the original days. But also, in the days of Smith and Hume, all patronage was church patronage in Scotland, because in 1707, the Scots had given up their status as an independent country. They had no Parliament left, but they had the church. And also, in those days, people fought over religious questions in a way that fortunately we don’t today.
The Kingdom of Scotland emerged as an independent sovereign state in the 9th century and continued to exist until 1707. England agreed to give Scotland money to pay off its debts, and both countries’ parliaments passed the Acts of Union to become one nation. Scotland had to relinquish its parliament under the agreement, but it kept Scottish law. Thus, the 1707 Act of Union, which went into effect on May 1, 1707, creating the Kingdom of Great Britain, was a winning deal on both sides of the border. Scotland today is not an independent country (yet!) as it exists within the framework / political union of The United Kingdom and retains its sovereign state status and strong national identity.
Scotland is not an independent country or state, and neither are Wales, Northern Ireland, or England itself. However, Scotland is most certainly a nation of people living in an internal division of the United Kingdom of Great Britain and Northern Ireland.
The English Civil War was not between the Catholics and the Protestants. It was about what kind of Protestant people were supposed to be. Theological wars can become military wars in that era.
Einstein argued that the worldview comes first, the scientific theories come subsequently.
David Hume, for example, was an outspoken opponent of any kind of organized religion. He used to refer to Church of England bishops as retainers to superstition. That was his phrase. He was never able to get a university appointment. Everybody understood that he was the leading figure of the Scottish Enlightenment. But he was never able to get a university appointment because he was at the very least an outspoken agnostic. Probably, I think he was an atheist, actually.
Adam Smith was much more private about his personal religious commitments. He was probably something of the form of a deist, like the way we, Americans, would think of Benjamin Franklin from that era, or Thomas Jefferson Smith, there’s no evidence of religious commitment for him. When he became a professor, Smith asked to be exempted from the requirement to start every lecture with a prayer. Incidentally, his request was denied. So, these were not religiously committed men.
The world as a whole is just too complicated a phenomenon. Nobody can think clearly about the world as a whole. And so, what everybody does, is to form in his or her mind a simplified, what economists would call a model, what Einstein called a worldview, what one of the great economists at Harvard, Joseph Schumpeter, called a Vision. Schumpeter called it Vision with a capital V. The idea is that people have something in their minds, they don’t just sit down to do their work with a blank piece of paper or a blank slate for their minds. And Einstein was very clear that as he put it, scientific work comes out of pre-scientific thought. Schumpeter thought that economic analysis came from this pre-analytic vision, and all of these other figures thought the same thing.
We all inhabit an intellectual house, and it’s never totally vacant. There’s some furniture in the house. And whether we recognize it or not, that furniture has a great deal to do with our understanding of reality. And the furnishings of the intellectual house of Edinburgh, for example, in the 18th century, it would have been explicitly Christian, such that the culture was Christian, even if the individuals were some form of unbeliever even to what would then have been called an infidel. Theologically, no one begins epistemologically, in terms of knowledge from nowhere. Everyone has to begin somewhere.
Edinburgh itself is just a fascinating place during the times of David Hume and Adam Smith. An era that saw the emergence of so many ideas, the coffeehouse culture, the literary societies that had given a fascinating place to live. Religion was integrated into this intellectual life
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Adam Smith and David Hume were members, original members, of the most distinguished of these dining clubs called the Select Society. Of the 31 original members, again, including Smith and including Hume, five of the 31 were Church of Scotland clergymen. And that included this very interesting figure who was their close friend, William Robertson, who was simultaneously the head of the church. He was the moderator of the Church of Scotland General Assembly. And at the same time, Robertson was the principal, in our language, the President of the University of Edinburgh. Well, think about that a moment. That would be as if the president of my university, Larry Bacow, were simultaneously the President of Harvard and also the head of the Central Conference of American Rabbis. Well, he’s not. Or it’s as if his predecessor, Drew Faust, had been President of Harvard and head of the Presiding Bishop over the Episcopalian Church in the United States. Robertson had both of those titles simultaneously. So, it was a very different world from ours, from the perspective of the integration of religion and religious thinking into the intellectual life of the time.
SBTS was founded in 1859 and was explicitly modeled after Princeton, from the original documents of Princeton, but with the synthesis of Brown. James Petigru Boyce, who was the founder of this institution, was a graduate of Princeton. But before that, he was the prized student of Francis Wayland at Brown. Wayland was the most prominent Baptist layman of his age and was the President of Brown University, teaching moral philosophy as presidents did at the time.
Wayland was very much an economist and very interesting character. He was an abolitionist, famously so. He was a free trader, famously so, and as a Baptist clergyman, he anchored those beliefs in his religious thinking. So, unlike Smith and Hume, and when we get to Wayland, here’s somebody who really was a religiously committed individual.
Wayland’s economics textbook, goes on at great length about how it would be wrong to impose tariffs in the United States. The tariff issue was the leading economic issue in the first half of the 19th century other than slavery, and he goes on at great length about how it would be wrong to impose tariffs on imports, because God wanted nations to trade with one another in order to promote amity among nations. And his story was in part that that’s why God created the oceans. By this time, everybody understood that sea travel was a lot more efficient and cheaper than land travel. And so, the reason the oceans where there, according to Pastor Wayland, was precisely to facilitate trade among nations. So, his was a very religiously anchored argument. And, of course, by virtue of being president at Brown, we know he was definitely a Baptist minister. He started his career here in Boston at a Baptist Church and then quickly moved to Brown where he became the great figure at Brown in the 19th century.
Wayland and his colleagues would also have tied the existence of the oceans and the ability to have commerce and shipping and exploration is tied to missions, so then theology still very much there. Economics and missions, just as economic and social betterment and the social gospel were tied very much together in mutual interest.
The decline of Orthodox Calvinism as the official theology of the Anglosphere led to the birth of capitalism, as emerging from a great theological shift that was antecedent to it, and that is the decline of belief in predestination in particular.
In Max Weber’s great book, called The Protestant Ethic and the Spirit of Capitalism, Weber was primarily looking at the 17th century, when belief in predestination was at its, not at its height, but pretty strong, and was looking in effect, Weber kept thinking about all of these Puritans in Massachusetts walking around, suffering what he called existential anxiety about whether they were among the elect, and therefore desperate to have external signs. They knew it couldn’t be causal, but they were looking for external signs of whether they were among the elect. And they persuaded themselves. This is Weber’s story. They persuaded themselves that if they were industrious and worked diligently at their calling, if they save their money, if instead of living luxuriously, they plowed their money back into their businesses, they were thrifty. All of these would be comforting to them because they were external signs. Now, that was a story about people’s behavior, according to Weber. And it’s a story mostly about the 17th century.
In the 18th century b Smith and Hume and others of that era gave us modern Western economics. As an Orthodox Calvinist and Augustinian, and a very much a believer in predestination, and a theologian, I think predestination and the sovereignty of God are often understood from the outside as a form of determinism or fatalism. Whereas in our understanding, it’s rooted in a personal God, not an impersonal deity who relates to us in personal terms, and so there’s more to it than fatalism or some just kind of mere determinism. But still, there is no doubt that when you’re talking about unconditional election, you are talking about a divine decree that is unchanging and unchangeable.
But it is also interesting that if you go back to the 16th century and the 17th century, the great debate in many ways between the Protestants and the Catholics, and especially as you consider Luther and Calvin, was over the issue of assurance. And it was the Reformers who argued for the reality of assurance of salvation. And the Roman Catholic Church and the Council of Trent identified that as among the chief errors of the Reformation, which they condemned. If you look at the economies of historically Protestant Europe and the economies of historically Catholic Europe, you’re looking at very different economic patterns. And Weber talked about the survival of ideas like thrift and investment and patience and those Protestant virtues as being a part of that work ethic.
What I think enabled him to come to these insights was a worldview based on the more expansive notion of the opportunities and possibilities for human choice, human action, human agency that came out of the movement away from belief in predestination. I think if he had still been laboring under the idea that there was nothing a person could do to affect his or her salvation, because that decision had been made not only before the person was born, but before the world had even been created. I’m quoting now from the Westminster Confession. That doesn’t leave a lot of room for thinking that people can make important and worthwhile things happen by what they choose to do. And by contrast, by the time we get to Smith, and the whole new movement is toward believing that, yes, people can affect their salvation to use the words of John Tillotson, who was the first Archbishop of Canterbury, appointed after the Inglorious Revolution in England in 1688. People are able to cooperate, to cooperate with God in effecting their salvation. A very secularization of that idea is that people are able to do good in the world. People are able to tell right from wrong. People are able, just through their innate, inborn nature, what John Locke called the Candle of the Lord, it’s there, if we are only willing to make use of it. People are able to make good things happen, and Smith was looking at the economy, and he said, well, how is it that people just acting on their own instincts can take actions which make other people so much better off? I think it’s an idea that came to him because he lived in this world of pushback and movement away from predestinarian belief.
In 1643, the English Parliament called upon “learned, godly and judicious Divines” to meet at Westminster Abbey in order to provide advice on issues of worship, doctrine, government and discipline of the Church of England. Their meetings, over a period of five years, produced the confession of faith, as well as a Larger Catechism and a Shorter Catechism. For more than three hundred years, various churches around the world have adopted the confession and the catechisms as their standards of doctrine, subordinate to the Bible. The Westminster Confession of Faith was modified and adopted by Congregationalists in England in the form of the Savoy Declaration (1658). English Presbyterians, Congregationalists, and some others, would together (with others) come to be known as Nonconformists, because they did not conform to the Act of Uniformity (1662) establishing the Church of England as the only legally approved church, though they were in many ways united by their common confessions, built on the Westminster Confession. The Westminster Confession of Faith is a Reformed confession of faith. Drawn up by the 1646 Westminster Assembly as part of the Westminster Standards to be a confession of the Church of England, it became and remains the “subordinate standard” of doctrine in the Church of Scotland and has been influential within Presbyterian churches worldwide.
During the English Civil War (1642–1649), the English Parliament raised armies in an alliance with the Covenanters who by then were the de facto government of Scotland, against the forces of Charles I, King of England, Scotland and Ireland. The purpose of the Westminster Assembly, in which 121 Puritan clergymen participated, was to provide official documents for the reformation of the Church of England. The Church of Scotland had recently overthrown the bishops imposed by the King and reinstated presbyterianism (see Bishops’ Wars). For this reason, as a condition for entering into the alliance with the English Parliament, the Scottish Parliament formed the Solemn League and Covenant with the English Parliament, which meant that the Church of England would abandon episcopalianism and consistently adhere to reformed standards of doctrine and worship. The Confession and Catechisms were produced in order to secure the help of the Scots against the king. The Scottish Commissioners who were present at the Assembly were satisfied with the Confession of Faith, and in 1646, the document was sent to the English parliament to be ratified, and submitted to the General Assembly of the Scottish Kirk. The Church of Scotland adopted the document, without amendment, in 1647. In England, the House of Commons returned the document to the Assembly with the requirement to compile a list of proof texts from Scripture. After vigorous debate, the Confession was then in part adopted as the Articles of Christian Religion in 1648, by act of the English parliament, omitting section 4 of chapter 20 (Of Christian Liberty), sections 4–6 of chapter 24 (Of Marriage and Divorce), and chapters 30 and 31 (Of Church Censures and Of Synods and Councils). The next year, the Scottish parliament ratified the Confession without amendment. In 1660, the Restoration of the British monarchy and Anglican episcopacy resulted in the nullification of these acts of the two parliaments. However, when William of Orange replaced the Catholic King James VII of Scotland and II of England on the thrones of Scotland, England and Ireland, he gave royal assent to the Scottish parliament’s ratification of the Confession, again without change, in 1690.[1]