Milbank’s second chapter is entitled ‘Political Economy as Theodicy and Agonistics’. Where the ‘New Science of Politics’ dealt with the origins of a secular space for power relations, political economy was more interested in how the mechanisms of power functioned. Crucially, its theory centered on the regular, unintended harmony of these mechanisms, in which the observed consequences of Hobbes’ and Machiavelli’s systems, once established, would arise apart from erratic and arbitrary extensions of the sovereign’s might. If Hobbes and Spinoza had sought to derive the origins of norms from (ur- and archetypal) deliberative human choices, political economy sought nevertheless to maintain the conformity of observed social outcomes to unthinking natural processes, claiming ‘to “demonstrate” the presence of a spiritual power filling the vacuous “gap” between human intentions and social outcomes.’ (27)
Milbank continues to argue that these are intellectual shifts possible only from within a theological mindset – the ‘spiritual power’ remains necessary to provide ‘divine sanction’ to the secular order. But now, ‘No longer is God the ultimate arbitrary power behind human arbitrary power; instead he is a God regularly and immediately present to human society, holding it together… This providence can be exactly known about, and it is invoked at the level of finite causality.’ (28)
As in the previous chapter, Milbank provides an intellectual genealogy of this science of political economy, beginning this time with the Scots moral philosophers typified by David Hume and Adam Smith. Social theory for the Scots was founded neither on the sole ground of Hobbesian rationalism nor of an inherently ethical Aristotelian telos. They spoke instead of ‘sympathy… specifically pre-moral, natural and sub-rational.’ (29) ‘Sympathy’ describes our common animal attractions and aversions and our ability to see ourselves in the place of others. Public laws and institutions are not derived from rational calculation, nor directly from considerations of virtue as such, but from their observable effects on ourselves and on others. Because we know what it is to lose and to gain and can imagine others feeling the same way, we come to feel that our own security is bound up in the existence of property laws, and to know that we have an interest in justice not only for ourselves but in society. Notions of ‘virtue’ and ‘vice’ come artificially to be attached to practices which adhere to or violate such laws, but these merely reinforce existing institutions without providing them an independent ground on which to stand. The ground remains the ‘natural’ processes of individual human emotions – and mostly negative ones at that, e.g. outrage (hence the asymmetry which holds that violations of property, but not failure of benevolence, is punishable). ‘If there is a utilitarian design at work here, then it is on the part of “nature”, not man.’ (30)
Smith is aligned with Hobbes, on the other hand, in his definition of human self-interest in terms of property rather than virtue. Whereas Aquinas (and, for that matter, Aristotle) had held that liberality and magnanimity were self-interested characteristics because they chiefly augment the virtue of the giver, Smith reverses things so that self-interest is equated with self-preservation and justice, not benevolence, is the virtue grounded on selfish concern.
At this point Milbank traces two divergent forms political economy can take – one Machiavellian or agonistic, and one natural theological, providing, as it were, a secular theodicy.
In its Machiavellian form political economy replaced societal adherence to virtue with sovereign manipulation of the complex of many individuals’ self-interest as the key to peace, security, and political strength. Central to this dynamic was the emergence of the market-based economic and financial systems promoted by Smith:
Equally important as any rise of a middle class is the changing definition of “nobility”, allowing the possibility of a “speculative” aristocracy where fortune is a matter of a gamble on one’s reputation just as economic fortune was now no longer so firmly tied to landed property but could be built on successful investment in the future success of trade, or strength of government. As Montesquieu noted, the power of England was founded on aristocratic whiggery… As a “free nation” England could “bring to bear against its enemies immense sums of imaginary riches which the credit and nature of its government might turn into reality.”‘ (32)
The sovereign wishing to marshal such forces to his own benefit stood at the head of a great reversal in the order of desire and virtue: no longer driven by external standards of the common good, desire now existed as its own end, subject to control by the savvy prince.
The place of inequality in society shifted in logical manner. Previously an evil met in the public sphere by Christian charity, it was now celebrated by Smith as the very engine of progress. Production is driven by the desire of every individual to attain to the luxurious lives of the rich. Not only the wealth but the security of nations is enhanced by this situation, by providing an arena in which conflict among individuals and even states could take place rationally, bloodlessly, via commerce rather than warfare. Milbank highlights the political economic theory of Sir James Stewart as the apogee of this line of reasoning: for Stewart, Christian charity is positively harmful to the state, dampening the need which keeps laborers working for the economic and military strength of the state. Ideally the laborers own nothing, but are dependent on procuring a return for their labor which they can only consume. ‘[T]he accent [for Stewart] is clearly on wage-labour as a mode of discipline, not as a mode of freedom (as in Smith).’ (35) But Stewart also departs from Hobbes in understanding the origins of the successful society as arising by natural processes: ‘the marketplace is a self-regulating agon, but its bounds are initially marked out and constantly redrawn by arbitrary political violence.’ (36) Where Smith promoted fierce defense of property rights, Stewart candidly and cynically recommended that the sovereign violate them whenever dictated by state interests, in order to maintain the necessary agonistic dynamic.
In this regard, Stewart anticipates Marx’ characterization of capitalism as dependent on the forcible separation of a majority of the population from the means of production. Stewart differs from Marx, however, and from Smith, in that the latter two saw capitalism’s origins in rational processes rather than arbitrary extensions of power. All of these, however, stood firmly in a position which Christian theology had once questioned, exalting the autonomy of secular reason and the decisive control of individual desire.
If the Machiavellian strand of political economy can be characterized as ‘pagan’, the more ideological form of political economy instead took the form of ‘a heterodox “theodicy”‘ (38), justifying not God but sovereign nature. The difference lay in the proposed mechanism which underlay social outcomes. Rather than the agonistic system of separate individual actions leading to unintended results, the theodicist highlights the ‘invisible hand’ – perhaps God, or providence, or nature – who takes the place of the Machiavellian sovereign in weaving together disparate interests into a unified (and sometimes optimal) whole. It is crucial to Milbank to note that the great step here towards secular reason was taken by natural theologians, who first made the ‘scientific discovery’ that God had laid divergent desires in the hearts of individuals for the good of society. From here it was a trivial matter to replace God with unthinking nature. Smith attributed to God the animal passions vital to the constitution of society – but not a God who worked through passions as secondary causes, but one who could, in a sense, be reduced to those very causes, which were primary but finite, subject to scientific inquiry.
It would seem that heterogeneous desires lay at an intermediate level in Smith’s ontology, though he did not openly present political economy as natural theology: the hand, while not entirely invisible, was neither yet opaque. Milbank seeks to restore its opacity to the history of secular reason: ‘The heterogenesis of ends can only appear as a fundamental mode of social description because one thinks of an imaginary intending agent standing “behind” her projects, whereas the agent really becomes an agent through her projects. Choice, in its most basic options, is not discovered at the individual level, but within social discourse. Only by forgetting this can one establish an economic “science” which divides and rules in terms of private sentiments and “natural” design.’ (42-43)
Milbank closes with a less than compelling reading of Malthusianism as having originated in yet another flavor of theodicy, one in which it is to the benefit of mankind that God introduce scarcity of resources, as the development of virtue depends on lack (a position close to Stewart’s, but with virtue back at the helm in place of state power). Milbank proposes that it was the theodicy which drove Malthus’ pessimistic economic theorizing on the limits of population growth; it was not the observation in Malthus’ day, then, of what appeared to be looming famine among exploding pre-Industrial peasant populations, that drove Christians to justify God having allowed such a state to come to pass. Again, Milbank shows a weakness for divorcing the history of ideas from the history of events.
I find Milbank’s treatment of Smith to be somewhat unfair. Smith stands in need of rehabilitation in the current economic environment, which has rightly helped some observers to ‘find a flaw’ in pure free-market ideology. Certainly in The Theory of Moral Sentiments, but also in The Wealth of Nations, Smith never maintained that free markets could function in the absence of morality. ‘God’ was not a mere placeholder in his system; sympathies acquired normative force primarily by virtue of their having been placed in human hearts by a God who stands as Creator and the supreme Lawgiver. It is nevertheless the case that in his work as a moral philosopher Smith presented a reductionistic account of the Deity’s work, rendering him too much a benevolent social planner, worthy of emulation by sophisticated statesemen but hardly of worship.
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See also Robert Middlekauff, The Glorious Cause, Oxford University Press, Ch. 1, pp. 10-13.