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Political Economy As Natural Theology: Smith, Malthus and Their Followers by Paul Oslington

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Political Economy As Natural Theology: Smith, Malthus and Their Followers by Paul Oslington Political Economy as Natural Theology: Smith, Malthus and their Followers by Paul Oslington Thesis submitted in fulfilment of the requirements for the degree of Doctor of Theology University of Divinity, Melbourne September 2018 ABSTRACT Natural theology shaped political economy in the late 18th andy earl 19th centuries, with continuing significance for the engagement of theology and economics. Early political economists such as Adam Smith, Josiah Tucker, Edmund Burke, William Paley, TR Malthus, Richard Whately, JB Sumner, Thomas Chalmers, and William Whewell extended the British scientific natural theology tradition of Bacon, Boyle, and Isaac Newton to the s ocial world. This extension nourished and shaped political economy as a discipline, influencing its theoretical framework, but perhaps more importantly helping legitimate political economy in the British universities and in public policy circles. Natural theology also created tensions (especially reconciling economic suffering with divine goodness and power – the problem of theodicy) that eventually contributed to the demise of natural theology and the separation of economics from theology in mid-19th century Britain. The promise and difficulties of reviving the conversation between economists and theologians are considered in the final chapter. TABLE OF CONTENTS Chapter 1 - Introduction 1 1. Motivation 2. Aims 3. Scope Chapter 2 - Natural Theology: Philosophical and Historical Issues 4 1. Introduction 2. Natural theology and scripture 3. Varieties of natural theology 4. The British tradition of scientific natural theology 5. Creation, providence and natural theology 6. Natural theology and theodicy 7. Conclusion Chapter 3 - Early English Theological Roots of Political Economy 15 1. Introduction 2. Joseph Butler 3. Josiah Tucker 4. William Paley 5. Edmund Burke 6. Conclusion Chapter 4 - Adam Smith as Natural Theologian 32 1. Introduction 2. Adam Smith’s religious background 3. Adam Smith’s invisible hand 4. Adam Smith’s theodicy 5. The future hope, nature and justice in Adam Smith’s system. 6. Conclusion Chapter 5 - Natural Theology and the Emergence of Political Economy: Dugald Stewart, TR Malthus, JB Sumner and Thomas Chalmers 65 1. Introduction 2. Further Scottish background: Dugald Stewart 3. Malthus Principle of Population and its theodicy 4. Revision of Malthus’ theodicy by JB Sumner 5. Malthus’ Scottish disciple Thomas Chalmers 6. Conclusion Chapter 6 - Progress and Tension: Richard Whately and William Whewell 86 1. Introduction 2. Political Economy at Oxford: Nassau Senior and the response of JH Newman 3. Political Economy at Oxford: Richard Whately 4. Political Economy at Cambridge: Richard Jones and William Whewell 5. Conclusion Chapter 7 - The Demise of Natural Theology and Separation of Economics from Theology 115 1. Introduction 2. Explaining the separation of economics from theology 3. Explaining the demise of natural theology 4. The demise of natural theology as the separation of economics from theology 5. Evolution as a lost opportunity to renew natural theology. 6. Subsequent developments in Britain, Continental Europe, and America. 7. Conclusion Chapter 8 - Reflections on the Contemporary Relationship between Economics and Theology 136 1. Introduction 2. What can we learn from this episode about what promotes fruitful and unfruitful exchange between economists and theologians? 3. Frameworks for contemporary engagement 4. Contribution of the thesis Appendix - Analysis of Key Terms in English Books 142 Bibliography 145 ACKNOWLEDGEMENTS Thanks to my supervisor Reverend Professor Andrew McGowan, who took on this project as Warden of Trinity College within the University of Melbourne and saw it to completion at Yale Divinity School. Discussions over many years with many people have helped me think through issues in the relationship between economics and theology. Without any claim that any of these agree with the arguments of this work, I thank Anthony Waterman, Geoffrey Brennan, Ian Harper, Christopher White, Samuel Gregg, Peter Groenewegen, Geoff Harcourt, John Nevile, John Pullen, Greg Moore, Tony Aspromourgos, Stuart Piggin, Mark Hutchinson, Geoff Treloar, Robert Banks, Margaret Schabas, Ross B. Emmett, Brendan Long, Kim Hawtrey, Donald Hay, Gordon Menzies, Peter Docherty, Ian Smith, Peter Heslam, Robert Mochrie, John Hedley Brooke, Peter Harrison, Mark Brett, Wentzel Van Huyssteen, Deirdre McCloskey, Peter Boettke, John Milbank, Robert Nelson, Luigini Bruni, Neil Ormerod, Shane Clifton, Larry Iannaccone, Max Stackhouse, Paul Williams, David Richardson, Mary Hirschfeld, Albino Barrera, and Andy Yuengert. The work was began at University of New South Wales, continued at Australian Catholic University, and completed at Alphacrucis College. I am grateful for good colleagues and the supportive environment at Alphacrucis, where we are attempting to build a high quality Pentecostal Christian university for Australia and beyond. Most of all thanks to my family, Gabrielle, Ruth, Timothy and Peter. The past few years have not been an easy time for our family but your love and support has made this work possible. DECLARATION / STATEMENT OF ORIGINALITY The manuscript is under contract for publication by Routledge, and incorporates previously published material as indicated in particular chapters. CHAPTER 1 - INTRODUCTION 1. MOTIVATION Economics matters theologically because it has been the dominant discourse in English-speaking countries at least since the middle of the 20th century, arguably before that. Anthony Waterman (2004) suggests that economics has replaced Christian theology as the discourse which binds Western society together and carries authority. John Milbank's influential theological work begins from the marginalization of Christian theology by contemporary social science, including economics, which he sees as deformed theology (Milbank 1990). The American economist Robert Nelson (1991, 2001, 2010) has attempted to read 20th century economics as concealed theology, for instance identifying Samuelsonian public economics with liberal Protestantism, and the Chicago school with Calvinism. Despite its theological significance there is a deep gulf between contemporary economic and theological discourse. Theologians tend to engage only superficially with mainstream economics, and economists on the whole ignore theology. There are exceptions of course to the generally superficial engagement of contemporary theologians with economics, for instance the works of Douglas Meeks (1990, 2014), Miroslav Volf (1991), Alan Storkey (1993), Kathryn Tanner (2004, 2005), and Mary Hirschfeld (2013). Biblical scholars find it difficult to avoid economics, though puzzlingly gravitate to varieties of Marxian or other types of non-mainstream economics (for instance Boer 2015 as discussed in Oslington 2011c). It is very rare for contemporary economists engage deeply with theology. The economics of religion is a growing subfield of contemporary economics, which seeks to explain religious behaviour and religious institutions using mainstream economic models (see the surveys of Iannaccone 1998 2010, Oslington 2011e, and Iyer 2016). However, modelling religious behaviour and institutions is something different to engaging deeply with theology. One recent attempt by economists to reengage with theology has been in the sectarian ‘Christian economics’ that arose in the 1970s in the US and Europe, especially in certain Calvinist and Roman Catholic circles. In my view this ‘Christian economics’ movement is a theologically problematic response to the marginalization of Christianity in Western culture in the preceding decades (discussed further in Oslington 2009, 2010 and briefly in chapter 8). ‘Christian economics’ runs parallel with the rise of a sectarian ‘Islamic economics’ in response to the economic 1 disappointments of the Muslim world through the 20th century and the association of economics with the heart of Western culture that is rejected by these Islamic groups (Kuran 2004). Economics matters particularly in Australia with our heritage of utilitarianism and prosperity (Collins 1985, Gascoigne 2002). The church, and therefore theologians, need to engage more deeply with economic ways of thinking to connect with ordinary Australians and to have an influence for good on our public culture. A renewed theological engagement with economics also matters particularly in African and Asian societies where Christianity is vibrant and economic change rapid. Something better is needed than the distorted prosperity theology that is widespread in churches. 2. AIMS This thesis contributes to the interdisciplinary dialogue between economics and theology by telling the story of the role of theology in the formation of political economy as a discipline in Britain in the 18th and 19th centuries, and the separation of ethics and theology from economics later in the 19th century. It aims to: - Deepen understanding of formation of political economy as a discipline, writing the neglected theological elements back into the history of the discipline. It is a contribution to an alternative history of the formation of political economy emphasizing theological context and influences, largely bypassing figures such as Ricardo and the Mills who are overemphasized in existing histories. - Provide a historical basis and theological resources for renewal of dialogue between economists and theologians. There is no need to create artificial points of contact because strong historical connections already
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