From Aristotle, Augustine, Aquinas, and Adam (Smith) to Concordian Monetary Policy - How to Use Public Policy to Guide Accumulation toward Virtuous Ends

Abstract

Aristotle, followed by Augustine, Aquinas, and Adam Smith, recognized, to a lesser or greater degree, that the ownership and control of private property (wealth, money, riches) is an initial, necessary condition to be able to put one’s self in a position to help others in need. A person is or has been corrupted by the process of wealth creation if that person decides that he/she will not help others in need. Adam Smith attempted to move beyond the political analysis of Aristotle, Augustine, and Aquinas on the question of whether economic growth (accumulation of wealth) would or would not promote Virtue (giving) or Vice (greed). Smith believed that the effective control of money and loans by an independent, Central Bank would create an institution that could promote the fortunes of those who were charitable (the sober people) while penalizing/neutralizing those who were greedy (the prodigals, projectors, and imprudent risk takers). This would prevent a state from degenerating into the type of state epitomized by Athens in 400 BC. The Central Bank would maintain the dominant economic position of a very large, prudent, circumspect, judicious, careful, frugal, thriving middle class by skewing credit and loans toward them and away from the prodigals, projectors, and imprudent risk takers, who made up the rich, upper income class. History did not bless Adam Smith with the achievement of his ideals, ideals that were a distillation of the wisdom of the ages. Another chance is given us by the development of Concordian monetary policy. Will we avail ourselves of this opportunity?