Thread by The ₿itcoin Times
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- Nov 19, 2022
- #Economics
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Who were the scholastics?
And how did they inspire the Austrian School of Economics, and therefore #Bitcoin
🧵👇
And how did they inspire the Austrian School of Economics, and therefore #Bitcoin
🧵👇
Scholasticism was a medieval school of philosophy that employed a critical organic method of philosophical analysis predicated upon the 10 Aristotelian Categories.
Christian scholasticism emerged within the monastic schools that translated Judeo—Islamic philosophies.
Christian scholasticism emerged within the monastic schools that translated Judeo—Islamic philosophies.
Following the collapse of the western Roman Empire in 476, Europe began to lose touch with the work of the Ancients.
But in 1086, the Christian conquerors of Toledo stumbled on a trove of lost books from the Ancient, and "rediscovered" the collected works of Aristotle.
But in 1086, the Christian conquerors of Toledo stumbled on a trove of lost books from the Ancient, and "rediscovered" the collected works of Aristotle.
Over the next 200 years, the discover of more such works occurred.
The "Scholastics" refer primarily to the 13th to 15th Century Christian scholars and theologians who pioneered a new form of critical enquiry into the ‘way things work’.
The "Scholastics" refer primarily to the 13th to 15th Century Christian scholars and theologians who pioneered a new form of critical enquiry into the ‘way things work’.
One of the most notable was Thomas Aquinas, of the 13th Century, who among many other things, argued that ‘value was intrinsic’.
Around the 13th century, Europe saw the acceleration of trade & along with it, the emergence of a markets and more sound, widespread forms of money.
Around the 13th century, Europe saw the acceleration of trade & along with it, the emergence of a markets and more sound, widespread forms of money.
The Medieval Scholastics deployed their new knowledge to try to make sense of this strange new world.
They pored over questions of just price in exchange, usury, the role of merchants, inequality, slavery, etc.
Among the great scholastic economic q's was the issue of value...
They pored over questions of just price in exchange, usury, the role of merchants, inequality, slavery, etc.
Among the great scholastic economic q's was the issue of value...
...whether value is whatever society says it is (Valor impositas), or whether things have intrinsic worth (Bonitas intrinsica).
Scholars like Aquinas opted for the former, but his great rival John Dun Scotus proposed value reflected cost of production.
Scholars like Aquinas opted for the former, but his great rival John Dun Scotus proposed value reflected cost of production.
Later Scholastics, like Nicolas Oresme and Jean Buridan emphasized usefulness as the source of value, which was more utilitarian and was perhaps the seed for the marginal and subjective theories of values established centuries later.
The University of Salamanca, located in Spain, was founded in 1243 by Fernando III, king of León and Castile.
It was a central to the development of late scholasticism, which laid the groundwork for the formation of economics as a separate & distinct study.
It was a central to the development of late scholasticism, which laid the groundwork for the formation of economics as a separate & distinct study.
The pioneering contribution of the Salamanca School helped form and inform later ideas on:
· Private property
· Theory of subjective value
· The study of the exchange rates
· Natural right > the positive;
· Defense of the freedom to trade
· Government fraud
& much more.
· Private property
· Theory of subjective value
· The study of the exchange rates
· Natural right > the positive;
· Defense of the freedom to trade
· Government fraud
& much more.
Much of the a priori approach of this “Iberian scholasticism”, sought to understand economics in relation to human behavior and morality.
It was the Salamanca school that defined the fair price as neither more nor less than the price established for exchange in an environment...
It was the Salamanca school that defined the fair price as neither more nor less than the price established for exchange in an environment...
...of a competitive economy, while condemning fraud, monopolies, and oligopolies.
This analysis led them to draw up a theory of the subjective scarcity of value and to employ supply and demand skillfully.
This analysis led them to draw up a theory of the subjective scarcity of value and to employ supply and demand skillfully.
It was the late scholastics who cautioned the Spanish King during the Spanish “Price Revolution of the 15th and 16th century.
The influx of precious metals from the Spanish colonies combined with the degradation of the Silver currency in Spain, led to their bankruptcy.
The influx of precious metals from the Spanish colonies combined with the degradation of the Silver currency in Spain, led to their bankruptcy.
Juan de Mariana a notable scholastic stated that:
“having the right to private property is natural to human beings”
“it is not morally correct that a king charges taxes from a people without consent since taxes are simply an appropriation of part of the subjects’ wealth”.
“having the right to private property is natural to human beings”
“it is not morally correct that a king charges taxes from a people without consent since taxes are simply an appropriation of part of the subjects’ wealth”.
Also:
“It is immoral to confiscate or waste the property of individuals, just as it is for the king to decrease the metallic content of coins to increase their circulation.”
“if money falls from its legal value, all assets inevitably increase, at the same rate that money fell"
“It is immoral to confiscate or waste the property of individuals, just as it is for the king to decrease the metallic content of coins to increase their circulation.”
“if money falls from its legal value, all assets inevitably increase, at the same rate that money fell"
Also by Mariana:
“Only a fool would try to separate these values in such a way that the legal price was different from the natural one. Fool, or rather, perverse, the ruler who orders that something ordinary people value, say, like five should be sold for ten. Men are guided...
“Only a fool would try to separate these values in such a way that the legal price was different from the natural one. Fool, or rather, perverse, the ruler who orders that something ordinary people value, say, like five should be sold for ten. Men are guided...
...in this matter by common estimates based on considerations about the quality of things and their abundance or scarcity. It would be useless for a prince to try to undermine these principles of trade. It is better to leave them intact instead of forcibly attacking them"
This and much more echoes the thinking of later Austrian thinkers, and in particular some of the early pioneers like Franz Brentano (1838-1917), a contemporary of Menger.
Brentano studied & upheld Aristotelian philosophy, and was ordained a priest in the Catholic Church in 1864
Brentano studied & upheld Aristotelian philosophy, and was ordained a priest in the Catholic Church in 1864
As a priest, he developed an understanding of, and an affection for, Scholasticism & its Aristotelian roots.
Brentano was the chief proponent of the Austrian approach to value theory within the philosophy faculty and his lectures were very popular.
Brentano was the chief proponent of the Austrian approach to value theory within the philosophy faculty and his lectures were very popular.
Menger, Mises, Rothbard, de Soto and many others were either directly, or by proxy influenced by the ideas of Scholasticism, and today, we Bitcoiners stand on their shoulders and continue the tradition of critical thinking + sound economics.
It’s also important to note that The Austrian School of Economics, much like the Iberian and Salamancan branches of Scholasticism emerged in those places organically.
I wonder what future Bitcoin-oriented economic thought will be called, with its emergence in cyberspace?
I wonder what future Bitcoin-oriented economic thought will be called, with its emergence in cyberspace?
If you enjoyed this thread, check out the latest article by @scholarium_at for the Bitcoin Times:
bitcointimes.com.au/from-bitcoin-to-the-austrian-school/
It is a short history of the practical application and implications of Austrian Economics which you will find fascinating!
bitcointimes.com.au/from-bitcoin-to-the-austrian-school/
It is a short history of the practical application and implications of Austrian Economics which you will find fascinating!
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Stay tuned for next week’s thread where we’ll explore the Scottish enlightenment.
www.getrevue.co/profile/TheBitcoinTimes
Stay tuned for next week’s thread where we’ll explore the Scottish enlightenment.
Thankyou once again to @saifedean @bitstein @PierrePoilievre @scholarium_at @KonradSGraf @parkeralewis @SvetskiWrites for their contributions to this year's edition.
