Adam Smith and Catholic Social Teaching

Abstract

The connections between Adam Smith and Catholic Social Teaching (CST) raise several questions. The principle of subsidiarity adopted in CST, according to which higher associations should not replace subordinate organizations on what the latter can do, seems to be in line with the idea that governmental intervention in the market sphere should be restricted to the minimum required, in line with what is typically seen as Smith's view. But the principle of the common good would also recommend intervention from political authorities in order to ensure that the common good is achieved. Here I shall argue that this question must be addressed taking into account another principle of CST, the principle of solidarity, and also the basic principle of CST, regarding human dignity. To do so, it is necessary to understand how the various principles of CST spring from the notion of imago Dei in CST, which is behind the notion of human dignity. This leads to a relational conception of human beings which can be fruitfully articulated with Smith's moral philosophy and political economy.

Is Relationality Always Other-Oriented? Adam Smith, Catholic Social Teaching, and Civil Economy

“…The relationality described here by Werhane (2000) and Martins (2019), very far from any form of beneficence or benevolence gratuitously directed to the good of the other, is grounded in a refined form of self-interest, the one through which we pretend to be justly ranked by others. This is not, as some authors of the AS claim, an "ethical self-interest" (Newbert 2003, p. 252), which "correspond broadly to the interests of society" (Hühn and Dierksmeier 2016, p. 22).…”

“…This is missed in Smith's economic analysis, which is related to a very different notion of relationality. Moreover, I show that the lack of disjunction between relationality and another-oriented perspective prevented Martins (2019) and Wolcott (2018) from noticing that the principle of subsidiarity cannot be placed within Smith's framework. Smith, in fact, was highly critical of the role of associations in society.…”

“…Martins' article (Martins 2019) showed that the tension might be reconciled by focusing on another, more basic convergence between the frameworks of Smith and CST:…”

“…Similarly, other core concepts of CST are relational, such as human dignity and the principle of solidarity. Martins (2019) argues that the focus on the principle of solidarity shows that the conflict between the principles of subsidiarity and the common good is only apparent. The implicit idea is that humans naturally seek to act not only for their own good but also for the good of society, and so could be disposed to accept a notion of private property that is subordinate to the common good.…”

“…For instance, humans' ability to enjoy the fruits of their labor could be supported by legislation against monopolies (Smith and CST) or minimum redistribution (CST more than Smith). Quoting Wolcott (2018), Martins (2019) acknowledges a problem in this reconstruction:…”