The Economics and Ethics Program, under the direction of EPPC Fellow John D. Mueller, studies the relation of modern economic theory to its Judeo-Christian and Greco-Roman origins, its practical application to personal, family, and political economy, and the interaction of economics, philosophical worldviews, and religious faith. The program aims to foster economic policies—in areas ranging from the tax code to retirement pensions to health care—that recognize and promote the family as the central social institution of American civilization.

Modern economic theory rightly develops elements that can be traced to Aristotle and Augustine: notably, the theories of utility, production and exchange.  But it neglects other no less important elements, and poses models of economic behavior that fail to capture the realities of personal, family, and political life. The Economics and Ethics Program aims to apply the tradition of Aristotle and Augustine to the daily facts of economic life for families in the 21st century.

Personal economy. Modern economic theory inaccurately posits individuals who always act selfishly (even when being “altruistic”) and narrows all economic choice to the means of self-gratification. Though Augustine originated the theory of utility—that all economic action involves the comparison of and choice among scarce means—he explained that economic actors also always make a prior choice among persons (whether themselves, family members, friends and other loved ones, fellow citizens, or other persons) as beneficiaries or “ends” of their actions.

Family economy. Unlike modern economic theory, which begins by inaccurately assuming hypothetical sexless adult individuals, Aristotle’s and Augustine’s analysis of human society begins with the fact (as Augustine put it) that “the first natural bond of human society is man and wife,” from which naturally follows “the connection of fellowship in children.” Because it is the smallest unit capable of maintaining and reproducing itself, Aristotle pointed out, the family household is necessarily the basic social and economic unit.

Political economy. Humans are not only rational and conjugal but also political animals, Aristotle noted, because while the family is necessary for life, human government is necessary for living well. Aristotle’s exploration of the two kinds of justice, “justice in exchange” and “distributive justice,” remains the indispensable starting point for addressing basic questions of economic fairness—issues with which most economists are poorly trained to deal. While good government is a blessing for saints and sinners alike, Augustine added, it must not be mistaken for the City of God, whose goal lies beyond this life.

In the realms of personal economy, family economy, and political economy, the Economics and Ethics Program will draw on the insights of Aristotle and  Augustine to develop a fuller account of economics in the modern world and to promote policies that serve the family.