The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith’s writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton’s theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith’s general providential account (...) of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis. (shrink)

The invisible hand image is at the centre of contemporary debates about capacities of markets, on which discussion of many other topics in business ethics rests. However, its meaning in Adam Smith's writings remains obscure, particularly the religious associations that were obvious to early readers. He drew on Isaac Newton's theories of divine action and providence, mediated through the moderate Calvinism of the eighteenth century Scottish circles in which he moved. I argue within the context of Smith's general providential account (...) of markets, the invisible hand operates restrain inequality and capital flight, thereby stabilizing the market system. Such an understanding of the invisible hand raises questions for contemporary religious and secular discussions of the capacities of markets in the wake of the global financial crisis. (shrink)

Usury is a concept often associated more with religiously based financial ethics, whether Christian or Islamic, than with the secular world of contemporary finance. The problem is compounded by a tendency to interpret riba, prohibited within Islam, as both usury and interest, without adequately distinguishing these concepts. This paper argues that in Christian tradition usury has always evoked the notion of money demanded in excess of what is owed on a loan, disrupting a relationship of equality between people, whereas interest (...) was seen as referring to just compensation to the lender. Although it is often claimed that hostility towards ‘usury’ has been in retreat in the West since the protestant Reformation, we would argue that the crucial break came not with Calvin, but with Jeremy Bentham, whose critique of the arguments of Adam Smith, upholding the reasonableness of the laws against usury, led to the abolition of the usury laws in England in 1854. There has to be a role for law, whether Islamic or secular, in regulating financial relationships. We argue that by retrieving the necessary distinction between demanding usury as illegitimate predatory lending and interest as legitimate compensation, we can discover common ground behind the driving principles of financial ethics within both Islamic and Christian tradition that may still be of relevance today. By re-examining past ethical discussions of the distinction between usury and just compensation, we argue that the world’s religious traditions can make significant contributions to contemporary debate. (shrink)

In the Theory of Moral Sentiments, Adam Smith observed that we live in a fundamentally conflictual world. Although he held that we are creatures who sympathize, he also observed that our sympathy seems to be constrained by geographical limits. Accordingly, traditional theories of cosmopolitanism were implausible; yet, as a moral philosopher, Smith attempted to reconcile his bleak description of the world with his eagerness for international peace. Smith believed that commercial intercourse among self‐interested nations would emulate sympathy on a global (...) scale, balancing national wealth and international peace without a coercive apparatus to enforce compliance with international law. (shrink)

Thomas Hobbes in Leviathan presented a paradigm of the social contract that has proven foundational in Western political thought. A proper understanding of the philosopher’s thought is thus of paramount importance. I argue that today’s case for a religiously tolerant Hobbes has missed an important part of the historical record. I first consider an obscure but important document, the second edition of the Humble Proposals. It demonstrates that leading members of a seventeenth century Christian denomination, the Independents, considered a state-enforced (...) confession of faith. Independents are generally seen as tolerant, and one of the arguments for Hobbesian toleration is that Hobbes endorsed them. But the second edition of the Humble Proposals aligns with the possibility in Hobbes that the civil sovereign will impose part III of Leviathan on the Universities and treat its contents as a legally required confession of faith – one that may be necessary for security, and the avoidance of civil war. Hobbes’s endorsement of Independency alone cannot be used to argue that his work leads to religious toleration. The evidence I present reinforces an earlier assessment and alongside other evidence points to the return of the intolerant Hobbes. (shrink)

This paper seeks to show that Bernard Mandeville's primary purpose in The Fable of the Bees was to historicize the concept of self?love (amour?propre) articulated by seventeenth?century French Jansenists and moralistes; that in doing so Mandeville constructed a theory designed to explain the inter?subjective constraints and forces of social discipline which characterize commercial societies; and that a full understanding of Mandeville's achievement depends upon an appreciation of the way in which pride in his theory becomes socialized into hypocrisy at a (...) decisive moment in the civilizing process, a moment after which, Mandeville argues, cultural institutions themselves can contain that unfettered self?interest which his contemporaries fearfully associated with the triumph of commerce. (shrink)

For many reasons, it is true that the Protestant Reformation unleashed the forces that lay behind the emergence of capitalism. Such a system was compatible with the emancipation of individuals, their mentalities, due to specific societal reforms and transformations. Therefore, it gave birth, in an unprecedented way, to a “new form of capitalism”. But the main idea I want to stress in this article is that the capitalist ethos was present before the Reformation, many centuries ago, in what is called (...) now the “Christian spirit”. In this direction, I emphasize many theories which disagree with the Weber’s well-known thesis about the relation between capitalism and religion, especially when it comes to generalize a particular result that is both theologically vague and empirically disprovable. (shrink)