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PDF hosted at the Radboud Repository of the Radboud University Nijmegen The following full text is a publisher's version. For additional information about this publication click this link. http://hdl.handle.net/2066/93624 Please be advised that this information was generated on 2021-09-30 and may be subject to change. WORDLY THEOLOGY ON CONNECTING PUBLIC THEOLOGY AND ECONOMICS Cover and Interior Design Ice Cold Media, The Hague Printing GVO Printers and Designers B.V. ISBN/EAN 978-90-6464-570-9 © Aloys E.H.M. Wijngaards, Nijmegen 2012. All rights reserved. WORLDLY THEOLOGY ON CONNECTING PUBLIC THEOLOGY AND ECONOMICS PROEFSCHRIFT ter verkrijging van de graad van doctor aan de Radboud Universiteit Nijmegen op gezag van de rector magnificus prof. mr. S.C.J.J. Kortmann, volgens het besluit van het college van decanen in het openbaar te verdedigen op vrijdag 24 augustus 2012 om 13.30 uur precies door Aloys Eduard Hans Maria Wijngaards Geboren op 20 februari 1981 te Arnhem Promotoren Prof. dr. A.J.M. van den Hoogen Prof. dr. E.M. Sent Copromotor Dr. J.J.M. Peil Manuscriptcommissie Prof. dr. M.A.C. de Haardt Prof. dr. A.J.A.C.M. Korte (Universiteit Utrecht) Prof. dr. J.B. Davis (Universiteit van Amsterdam en Marquette University) TABLE OF CONTENTS PREFACE I ACKNOWLEDGMENTS V CHAPTER 1 - TOWARDS A CONNECTION BETWEEN PUBLIC THEOLOGY AND ECONOMICS 1.1 THEOLOGY IN CHANGING SOCIETAL CONTEXTS 1 1.1.1 Theology and its contexts: the impact of the twentieth century 1 1.1.2 The meaning of the notion “public” in “public theology” 6 1.1.3 Reasons for engaging in public theology 10 1.1.4 Public theology as a practical fundamental theology 11 1.2 MEANING OF LIFE: CYNICISM IN AN AGE OF SECULARIZATION, INDIVIDUALIZATION, AND LOSS OF TRADITION 13 1.2.1 Longing in an age that cannot name itself: Cynicism and Weber’s Iron Cage 13 1.2.2 Meaning and meaning of life 16 1.2.3 Context of questions of meaning of life (I): Secularization 19 1.2.4 Context of questions of meaning of life (II): Loss of tradition and individualization 22 1.3 A CHALLENGE FOR PUBLIC THEOLOGY 25 1.3.1 Weber’s “iron cage” and meaning of life in the economic domain 25 1.3.2 Meaning of life in the economic domain: a challenge for public theology 28 1.4 CONCLUSION 35 CHAPTER 2 - PUBLIC THEOLOGY AND NEOCLASSICAL ECONOMICS 2.1 INTRODUCTION 37 2.2 PREVIOUS ATTEMPTS AT ESTABLISHING A CONNECTION WITH NEOCLASSICAL ECONOMICS 38 2.2.1 Neoclassical economics 38 2.2.2 Theologians seeking a connection with economics – a short overview of different approaches 41 2.3 A DIRECT ENCOUNTER BETWEEN A THEOLOGIAN AND A NEOCLASSICAL ECONOMIST: CALCULATED FUTURES 45 2.3.1 Prophets and Profits: the first conversation between Long and Fox 45 2.3.2 The first discussion between Long and Fox: a preliminary reflection 49 2.3.3 The second discussion: The conception of value in neoclassical economics 51 2.3.4 The evaluative orientations of economists and theologians 53 2.4 EVALUATION: PUBLIC THEOLOGY AND NEOCLASSICAL ECONOMICS 56 2.4.1 Value in neoclassical economics and theology 56 2.4.2 Neoclassical economics and meaning of life 58 2.4.3 Neoclassical economics and the positive-normative distinction 60 2.4.4 Neoclassical economics and contributing to a viable civil society 65 2.5 CONCLUSION 66 CHAPTER 3 - PUBLIC THEOLOGY AND BEHAVIORAL ECONOMICS 3.1 INTRODUCTION 69 3.2 BEHAVIORAL ECONOMICS AS A NEW APPROACH IN ECONOMIC THEORY 70 3.2.1 The acceptance of behavioral economics in mainstream economics 70 3.2.2 Behavioral economics: defining its perspective 71 3.3 THE DIFFERENT LEVELS OF MODIFICATIONS OF STANDARD NEOCLASSICAL THEORY BY BEHAVIORAL ECONOMISTS 72 3.3.1 Modification of utility functions 73 3.3.2. Deviations from “perfect” rationality 74 3.3.3 The departure from the principle of utility maximization 76 3.4 BEHAVIORAL ECONOMICS AND MEANING OF LIFE 78 3.4.1 Economics and meaning: a new area for behavioral economics 78 3.4.2 Four interpretations of meaning 79 3.4.3 Meaning and utility maximization 81 3.5 BEHAVIORAL ECONOMICS AND EVALUATIVE QUESTIONS REGARDING ECONOMIC POLICY 84 3.5.1 Translating findings to policy 84 3.5.2 Economic policy as “light” paternalism 86 3.6 EVALUATION: PUBLIC THEOLOGY AND BEHAVIORAL ECONOMICS 88 3.6.1 Public theology and behavioral economics: meaning of life 88 3.6.2 Public theology and behavioral economics: contributing to a viable civil society 91 3.7 CONCLUSION 94 CHAPTER 4 - PUBLIC THEOLOGY, HAPPINESS ECONOMICS AND THE CAPABILITY APPROACH 4.1 INTRODUCTION 97 4.2 RICHARD LAYARD’S HAPPINESS: LESSONS FROM A NEW SCIENCE 100 4.2.1 Layard’s understanding of happiness: the ultimate goal for both individual and society 101 4.2.2 The individual good: determinants of happiness at the individual level 103 4.2.3 The common good: the principle of the Greatest Happiness 105 4.2.4 Questions of economic policy 106 4.3 AMARTYA SEN’S DEVELOPMENT AS FREEDOM 107 4.3.1 Freedom as the ultimate end of economic development 107 4.3.2 Freedom: The actual living people manage to achieve or are free to achieve 110 4.3.3 The individual and social good: evaluative reasoning and the pluralist public realm of a democracy 112 4.4 EVALUATION: PUBLIC THEOLOGY, HAPPINESS ECONOMICS AND THE CAPABILITY APPROACH 115 4.4.1 The central line of argument in Layard’s “Happiness”: Hedonist Utilitarianism 116 4.4.2 Layard’s hedonist utilitarianism and “meaning of life” 117 4.4.3 Layard’s hedonist utilitarianism and “contributing a viable civil society” 119 4.4.4 Public theology and Layard’s hedonist utilitarianism 120 4.4.5 The central line of argument in Sen’s “Development as Freedom”: The perspective of freedom 121 4.4.6 Sen’s perspective of freedom and “meaning of life” 122 4.4.7 Sen’s perspective of freedom and “contributing to a viable civil society” 124 4.4.8 Public theology and Sen’s perspective of freedom 125 4.5 CONCLUSION 125 CHAPTER 5 - A FRAMEWORK FOR CONNECTING PUBLIC THEOLOGY AND ECONOMICS 5.1 INTRODUCTION 127 5.1.1 The second step: a framework that establishes a connection based upon evaluative arguments 127 5.1.2 Reasons for choosing Rescher’s pragmatist account of evaluation, objectivity, and rationality 129 5.2 THE POSSIBILITY OF CONSTRUCTING EVALUATIVE ARGUMENTS: A VALUE- THEORETICAL FOUNDATION FOR THE CONNECTION BETWEEN PUBLIC THEOLOGY AND ECONOMICS 132 5.2.1 The difference and similarity between facts and values 132 5.2.2 Cognitive and evaluative systematization and value objectivity 134 5.2.3 Constructing an objective evaluative argument (I): human flourishing as a shared interest 137 5.2.4 Constructing an evaluative argument (II): Cultivation hierarchies 139 5.3 A FRAMEWORK FOR THE CONNECTION BETWEEN PUBLIC THEOLOGY AND ECONOMICS BASED ON EVALUATIVE RATIONALITY 141 5.3.1 The cognitive, practical, and evaluative dimensions of rationality 141 5.3.2 A framework for establishing a connection between public theology and economics 145 5.3.3 The Weberian dichotomy between means-ends and value rationality revisited 149 5.4 AN AXIOLOGICAL INTERPRETATION OF TRANSCENDENCE IN RELATION TO ECONOMIC PRACTICES 153 5.4.1 Axiological theism: transcendence as an evaluative perspective 153 5.4.2 Consuming Faith: an example of an axiological perspective on transcendence 157 5.4.3 Economic spirituality as an axiological perspective on public theology 161 5.5 CONCLUSION 163 CHAPTER 6 - CONCLUSION 6.1 INTRODUCTION 165 6.2 AN OVERVIEW OF THE RESULTS 166 6.2.1 The first step: the search for affinity with public theology’s central interests in economics 166 6.2.2 The second step: the elaboration of a framework to connect public theology and economics 170 6.3 LIMITATIONS OF THIS THESIS AND SUGGESTIONS FOR FURTHER RESEARCH 172 LITERATURE 175 NEDERLANDSE SAMENVATTING 201 PREFACE: A WORLDLY THEOLOGY? When I started my research project on “theology and economics” in 2006, the urgency of questions about values and meaning in relation to economic questions was not widely acknowledged. Back then, most people reacted to my research interests with polite interest, although they had puzzled look in their eyes. “Do they actually pay you to think about these questions?”, was sometimes even said out loud. Nowadays, however, the situation is different. Because of the recent financial and economic crises, we are confronted with difficult choices: if we cannot afford to live as we do now, what are the priorities? In these choices, economic considerations are inherently related to questions of what is valuable and meaningful. The actuality of a relation between economic questions and meaningful orientations is also reflected in developments that integrate traditional economic concepts with an evaluative perspective. For example, people who refer to themselves as social entrepreneurs, sustainable bankers, and impact investors, try to conduct their business while pursuing meaningful ends. As a recent study indicates, the desire to connect one’s work to a meaningful perspective is increasingly important, especially for young employees (Lancaster and Stillman 2010). For some, it can therefore be argued that “the market that intersects at money and meaning is growing”1. 1 Kevin Doyle Jones, organizer of SoCap 2011 (Social Capital Markets event), quoted in Bayrashi 2011. I For these reasons, studying the relation between economic practices and meaningful orientations is urgent for theologians. The question that has guided my research project from its very inception, is whether theologians might be able to benefit from the insights of economists.