[...]This brings me to the second great influence of the Catholic scholastics — the natural law, natural rights theory. Certainly natural law was a great hindrance on state absolutism, and it began in Catholic thought. Schumpeter points out that the divine right of kings was a Protestant theory. The natural law, natural rights theory, also came down from the scholastics to the French and British moral-philosophers. The connection was obscured by the fact that many of the 18th-century rationalists, being bitterly anti-Catholic, refused to acknowledge their intellectual debt to Catholic thinkers. Schumpeter, in fact, claims that individualism began in Catholic thought. Thus: "society was treated (by Aquinas) as a thoroughly human affair, and moreover, as a mere agglomeration of individuals brought together by their mundane needs… the ruler's power was derived from the people… by delegation. The people are the sovereign and an unworthy ruler may be deposed. Duns Scotus came still nearer to adopting a social-contract theory of the state. This… argument is remarkably individualist, utilitarian, and rationalist…."
2 Schumpeter also stresses Aquinas' defense of private property. Schumpeter particularly mentions the anti-statist spirit of the scholastic Juan de Mariana, 1599. He also treats their adoption of the market price as essentially the just price, utility theory, subjective value, etc. He says that while Aristotle and Scotus believed the normal competitive price was the just one, the later Spanish scholastics identified the market price with any competitive price, e. g., Luis de Molina. They also had a gold standard theory, and opposed debasement. Schumpeter also says that de Lugo developeda risk-theory of business profits, which, of course, was only fully developed at the turn of the twentieth century and later.
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