That’s So Second Millennium

Episode 115 - Aida Ramos: How the Big Picture Sheds Light on Economics

December 14, 2020
  1. Our guest, economics professor Dr. Aida Ramos, returned for further conversation after Episode 114. She pointed to wisdom in papal encyclicals from the past that we still need to tap into today—for the sake of just and reasonable arrangements in society and the economy. The granddaddy of these encyclicals is Rerum Novarum, from Pope Leo XIII in 1891. Forty years later, Pope Pius XI issued Quadragesimo Anno.
  2. Words are important, we noted in our discussion. The root for the word subsidiarity, which is a key concept in Catholic Social Thought, comes from the Latin for assistance or help. The origins of the word economics trace back to the management of a household, which incorporated a sense of stewardship, seeking the good for all persons connected with a household.
  3. Ramos pointed out that the appeal of Catholic Social Thought is by no means limited to Catholics or the Church. This wisdom is compatible with a broader legacy of insights deep in the Western intellectual tradition. She discussed economic insights embodied in the Acts of Union of 1707 in Great Britain, as described in her book, Shifting Capital.
  4. Historical figures who helped to shape ideas of economic justice through their expertise and their advocacy regarding the Acts of Union included Sir James Stewart. Dr. Ramos also mentioned Adam Smith, the 18th century economist and moral philosopher whose book The Wealth of Nations argues for the wisdom of free market capitalism. Henry George, a 19th century economist, also contributed to the secular intellectual trends which ran counter to the individual-utility principles of today’s neoclassical economics.
  5. Echoes of the notions more inclined toward common-good thinking are expected to receive attention in a new introductory economics textbook now being written by development economist Jeffrey Sachs. This will integrate concepts of subsidiarity and common-good motivation, which have a long history in secular discussion and are outlined cogently in Catholic Social Thought.

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