Economics and Theology of Salvation in Adam Smith and Hegel

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Economics and Theology of Salvation in Adam Smith and Hegel Economics and Theology of Salvation in Adam Smith and Hegel Yong-Sun Yang Thesis submitted in fulfilment of the requirement for PhD University of New South Wales School of Business, ADFA 2009 Dedication This thesis is dedicated to the memory of my parents, who poured out their lives for their children to live, love and learn the truth and beauty of life. i Acknowledgements This study would not have been possible without the guide of Dr. Paul Oslington. He provided critical assistance, reading every page and sentence. His knowledge, his time, and support were invaluable. I would also like to thank Dr. Keiran Sharpe and Dr. James Warn for their administrative support. A special note of thanks goes out to Rev. Dr. Kye Won Lee and his wife for their encouragement and sincere prayer. I would also like to thank my colleagues and students. They have always been the reason for me to continue this worthwhile endeavor. It is also my great pleasure to have a chance to express sincere appreciation to Graeme McMartin, who has taught me the beauty of being a true friend. Lastly, I would like to thank the University of New South Wales for this educational opportunity. This study could not have been completed without the sacrifice of my wife, Mi-Hea, and my four children, So-Ra, So-Ri, Ha-Neul, and Jeong-Hun. This is a little present to them for waiting so patiently while I have spent many years working on this study. I hope that this is not the end but the beginning of new journey with a great wonder and joy. ii Originality Statement I hereby declare that this submission is my own work and to the best of my knowledge it contains no materials previously published or written by another person, or substantial proportions of material which have been accepted for the award of any other degree or diploma at UNSW or any other educational institution, except where due acknowledgement is made in the thesis. Any contribution made to the research by others, with whom I have worked at UNSW or elsewhere, is explicitly acknowledged in the thesis. I also declare that the intellectual content of this thesis is the product of my own work, except to the extent that assistance from others in the project‘s design and conception or in style, presentation and linguistic expression is acknowledged. COPYRIGHT STATEMENT ‘I hereby grant the University of New South Wales or its agents the right to archive and to make available my thesis or dissertation in whole or part in the University libraries in all forms of media, now or here after known, subject to the provisions of the Copyright Act 1968. I retain all proprietary rights, such as patent rights. I also retain the right to use in future works (such as articles or books) all or part of this thesis or dissertation. I also authorise University Microfilms to use the 350 word abstract of my thesis in Dissertation Abstract International (this is applicable to doctoral theses only). I have either used no substantial portions of copyright material in my thesis or I have obtained permission to use copyright material; where permission has not been granted I have applied/will apply for a partial restriction of the digital copy of my thesis or dissertation.' Signed ……………………………………………........................... Date ……………………………………………........................... AUTHENTICITY STATEMENT ‘I certify that the Library deposit digital copy is a direct equivalent of the final officially approved version of my thesis. No emendation of content has occurred and if there are any minor variations in formatting, they are the result of the conversion to digital format.’ Signed ……………………………………………........................... Date ……………………………………………........................... iii Abstract This thesis explores relationships between economics and theology through the concept of salvation. Self-interested behaviour is often equated with sin in religious circles including Christian theology, while it is the foundation of modern economic theory. Must there be a deep gulf between theology and economics in this and other areas? This is the question of the thesis. The aim of this thesis is to show that economics and theology are mutually intertwined, and that understanding these links contributes to a better understanding of salvation. By showing that self-interest is not only the main motive of economic behaviour but also the basis of theological faith, the thesis will investigate their mutual interrelationship. It argues that economics has a theological dimension as theology is embedded in economic thought, and that theology has an economic aspect as faith is dependent on the self-interested consciousness similar to economics. Different theology leads to different economics. Theological investigation of human behaviour cannot avoid economic account of human self-conscious desire as a way of salvation. The argument about salvation is developed in relation to the two major philosophers Adam Smith and G.W.F. Hegel. Smith’s self-interest is a natural instinct embedded in human nature, while Hegel’s self-consciousness is a rational ability to be realized. It will be argued that this bifurcation comes from the differences in their theological foundations regarding grace, original sin, eternality, transcendence, immanence, etc. The illumination of the theological foundations of the economic ideas of two main thinkers helps to enrich our understanding of the issues related to salvation such as: sympathy and recognition, poverty and the state, invisible hand and cunning of reason, evil and scarcity, and eschatology. This thesis concludes that human self-conscious desire is a way of salvation both in economics and theology as they are mutually interrelated in theologies of economics in Adam Smith and Hegel. This interdisciplinary thesis contributes to better understanding of human behaviour not only in the world of economics but also in the ethical and religious world. iv Table of Contents Dedication ......................................................................................................................... i Acknowledgements.......................................................................................................... ii Originality Statement .................................................................................................... iii Abstract ........................................................................................................................... iii 1. Introduction: Beginning of dialogue between economics and theology ................. 1 1.1. Economics, ethics, and theology....................................................................... 1 1.2. Salvation as a possible contact point ............................................................... 6 1.3. Why Adam Smith and G.W.F. Hegel? .......................................................... 11 1.4. Aim of the thesis .............................................................................................. 17 1.5. Structure of the thesis ..................................................................................... 18 2. Adam Smith’s self-interest as a way of salvation ................................................... 22 2.1. Two poles of Adam Smith’s self-interest: nature and providence.............. 22 Nature ............................................................................................................... 23 Providence ....................................................................................................... 28 2.2. Self-interest: human self-conscious desire with various colours ................ 33 Economic dimension of self-interest .............................................................. 34 Moral dimension of self-interest .................................................................... 42 Theological dimension of self-interest ........................................................... 49 2.3. Self-interest as way of salvation ..................................................................... 55 Self-interest and telos ...................................................................................... 55 Self-interest and gift ........................................................................................ 57 2.4. Adam Smith’s theology of economics ............................................................ 61 God, human, and the world ........................................................................... 63 Human weakness as God’s grace ................................................................... 65 Self-interest as relational rather than solipsistic .......................................... 67 Religious institutions and self-interest .......................................................... 69 2.5. Summary and Conclusion .............................................................................. 74 3. Hegel’s rational self-consciousness as a way of salvation ...................................... 76 3.1. Introduction: the aim and scope of discussion ............................................. 76 3.2. Hegel’s self-interest and original sin ............................................................. 77 Hegel’s self-interest and inherent nature (Ansich) ...................................... 77 Original sin and human natural instinct ...................................................... 80 v 3.3. Hegel’s self-interest and the civil society ....................................................... 87 3.4. Hegel’s self-consciousness (Selbstbewusstsein).............................................
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