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Tuesday, November 12, 2019

Financial Scandal in the Vatican: A Historical Perspective on Christian Economic Ethics

In the history of Christian economic thought, theologians, with the exception of Clement of Alexandria, interpreted the biblical story of the rich man who refuses to part with his wealth in order to follow Jesus as meaning that having wealth is itself indicative of the presence of the underlying sin of greed. The dominance of this anti-wealth paradigm only began to give way during the Commercial Revolution in the eleventh and twelfth centuries, when the expansion of trading made it possible for ordinary people to save, and thus hold wealth without any sense of an underlying sin. Hence, Aquinas differed from Aristotle in allowing for moderate profit without the assumption of any underlying greed. In the Renaissance, theologians generally agreed that the Christian virtues of liberality and munificence could justify even being rich. Even Cosimo de Medici, who made his fortune from the sin of usury (i.e., interest on loans), gained the approval of the Pope in Rome by donating a fraction of the fortune to the Church. Under the dominance of the pro-wealth paradigm, Christians could be wealthy without being assumed to be greedy.[1] As for the Church itself being able to hold wealth, the collective wealth, gained from donations and selling goods, of monasteries in the Middle Ages was the door-opener. It was not as if a greedy individual could be said to exist if a religious organization owned the wealth. Aquinas approved of such wealth, a stance that, with his approval of moderate profit earned (and held as wealth) by individual Christians, began the shift that would result in the hegemony of the pro-wealth paradigm.[2] Unlike individual Christians holding coin without being presumed greedy, monasteries owning substantial wealth could be subject to a critique based on Jesus’ objection to money-changers in the Temple. When I visited a convent in Tucson, Arizona once, a sister rebuffed my request to pick a couple of oranges from the trees behind the building. “We make juice that we sell,” she replied. I had the impression that I had witnessed greed over charity in a religious vocation. Such hypocrisy, enabled by the allowance for collective monastic wealth, rivals Pope Eugene IV’s absolution of Cosimo de Medici, in spite of his fortune having been gained entirely from usury, because he renovated a monastery in Florence. This historical background can help us situate the Vatican’s financial scandal that culminated in five Vatican officials being suspended in 2019.

The full essay is at "Financial Scandal in the Vatican."

1. Skip WordenGod’s Gold: Beneath the Shifting Sands of Christian Thought on Profit-seeking and Wealth, available at Amazon. The related academic treatise, Godliness and Greed, is also available at Amazon.
2. Ibid.