Monday, March 26, 2012
Catholicism as the Foundation of Monetary Economics

It will come to no surprise to someone familiar with history that the Roman Catholic Church truly built Western Civilization.  Even if you are familiar with the Church's role in agriculture, industrial production of iron ore, translation of ancient Latin and Greek texts, formulation of international law, and astronomy, you may be unaware of the Church's role in economics.

The key in self-education and in the education of your children is to find an appropriate text that accurately addresses not only the Church's contributions but also refutes the errors of modern economics, including Communion and Socialism.

The Church's role in economics is not new - it goes back over 700 years!  San Bernardino of Siena (1380–1444) was the first theologian after Olivi to write an entire work systematically devoted to scholastic economics.  But, he was not even the first, illustrating that the Church's involvement in political and social life was (and is) necessary to sustain a culture with a proper ordering.

The Catholic Church can be credited to founding monetary economics and the value theory based on subjective utility.  This theory stands in sharp contrast to the Labor Theory of Value, which has its roots in the Communist Manifesto of Karl Marx.

Under the Labor Theory of Value, an object's worth is said to not be based on subjective utility but rather on the labor added to the object.  Yet, in a common refutation of this theory, let us consider the case of a painting.  How can this theory be valid when a painting's value rises after the death of its creator, even after no additional labor has been expended?  Marx could not explain this phenomena.  Only the subjective value theory can explain value.

Simply put, the value of a good does not depend on the number of labor hours put into the good.  To succumb to this error is to fall into Communism.  And we have the Church to thank for supporting and defending through the centuries this theory.

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