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School of Salamanca



 
 


The School of Salamanca is the renaissance
Renaissance

The Renaissance was a cultural movement that spanned roughly the 14th to the 17th century, beginning in Italy in the late Middle Ages and later spreading to the rest of Europe....
 of thought in diverse intellectual areas by Spanish
Spain

Spain or the Kingdom of Spain , is a country located in Southern Europe on the Iberian Peninsula.The Spanish constitution does not establish any official denomination of the country, even though Espa?a , Estado espa?ol and Naci?n espa?ola are used interchangeably....
 theologians
Theology

Theology is the study of the existence or attributes of a deity or gods, or more generally the study of religion or spirituality. It is sometimes contrasted with religious studies: theology is understood as the study of religion from an internal perspective , and religious studies as the study of religion from an external perspective....
, rooted in the intellectual and pedagogical work of Francisco de Vitoria
Francisco de Vitoria

Francisco de Vitoria was a Spanish Renaissance Roman Catholic philosophy and theology, founder of the tradition in philosophy known as the School of Salamanca, noted especially for his contributions to the theory of just war and international law....
. From the beginning of the 16th century the traditional Roman Catholic conception of man and of his relation to God
God

God is a deity in theism and deism religions and other belief systems, representing either the sole deity in monotheism, or a principal deity in polytheism....
 and to the world had been assaulted by the rise of humanism
Humanism

Humanism is a broad category of ethics that affirm the dignity and worth of all people, based on the ability to determine right and wrong by appealing to universal human qualities, particularly rationalism, without resorting to the supernatural or alleged divine authority from religious texts....
, by the Protestant Reformation
Protestant Reformation

The Protestant Reformation was a Christian reform movement in Europe. It is thought to have begun in 1517 with Martin Luther's Ninety-Five Theses and may be considered to have ended with the Peace of Westphalia in 1648....
 and by the new geographical discoveries and their consequences.






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University of Salamanca


The School of Salamanca is the renaissance
Renaissance

The Renaissance was a cultural movement that spanned roughly the 14th to the 17th century, beginning in Italy in the late Middle Ages and later spreading to the rest of Europe....
 of thought in diverse intellectual areas by Spanish
Spain

Spain or the Kingdom of Spain , is a country located in Southern Europe on the Iberian Peninsula.The Spanish constitution does not establish any official denomination of the country, even though Espa?a , Estado espa?ol and Naci?n espa?ola are used interchangeably....
 theologians
Theology

Theology is the study of the existence or attributes of a deity or gods, or more generally the study of religion or spirituality. It is sometimes contrasted with religious studies: theology is understood as the study of religion from an internal perspective , and religious studies as the study of religion from an external perspective....
, rooted in the intellectual and pedagogical work of Francisco de Vitoria
Francisco de Vitoria

Francisco de Vitoria was a Spanish Renaissance Roman Catholic philosophy and theology, founder of the tradition in philosophy known as the School of Salamanca, noted especially for his contributions to the theory of just war and international law....
. From the beginning of the 16th century the traditional Roman Catholic conception of man and of his relation to God
God

God is a deity in theism and deism religions and other belief systems, representing either the sole deity in monotheism, or a principal deity in polytheism....
 and to the world had been assaulted by the rise of humanism
Humanism

Humanism is a broad category of ethics that affirm the dignity and worth of all people, based on the ability to determine right and wrong by appealing to universal human qualities, particularly rationalism, without resorting to the supernatural or alleged divine authority from religious texts....
, by the Protestant Reformation
Protestant Reformation

The Protestant Reformation was a Christian reform movement in Europe. It is thought to have begun in 1517 with Martin Luther's Ninety-Five Theses and may be considered to have ended with the Peace of Westphalia in 1648....
 and by the new geographical discoveries and their consequences. These new problems were addressed by the School of Salamanca. The name refers to the University of Salamanca
University of Salamanca

The University of Salamanca , located in the town of Salamanca, west of Madrid, is the oldest university in Spain , and List of oldest universities in continuous operation in Europe....
, where de Vitoria and others of the school were based.

Francisco de Vitoria, Domingo de Soto
Domingo de Soto

Domingo de Soto was a Dominican order priest and theologian born in Segovia, Spain and died in Salamanca. He is best known as one of the major figures of the philosophical movement known as the School of Salamanca, together with Francisco de Vitoria....
, Martín de Azpilcueta
Martín de Azpilcueta

Mart?n de Azpilcueta , was an important Spanish canonist and theologian in his time....
 (or Azpilicueta), Tomás de Mercado
Tomás de Mercado

Tom?s de Mercado was a Spanish scholar who wrote a book called Manual of Deals and Contracts in 1571. He stated that: "High prices ruined Spain as the prices attracted Asian commodities and the silver currency flowed out to pay for them....
, and Francisco Suárez
Francisco Suárez

Francisco Su?rez was a Spain Jesuit Catholic priest, philosopher and theology, generally regarded as having been the greatest scholasticism after Thomas Aquinas....
, all scholars of natural law
Natural law

Natural law or the law of nature is a theory that posits the existence of a law whose content is set by nature and that therefore has validity everywhere....
 and of morality
Morality

Morality has three principal meanings.In its first, descriptive usage, morality means a code of conduct which is held to be authoritative in matters of right and wrong....
, founded a school of theologians and jurists who undertook the reconciliation of the teachings of Thomas Aquinas
Thomas Aquinas

Saint Thomas Aquinas, Dominican Order was a priest of the Roman Catholic Church in the Dominican Order from Italy, and an immensely influential philosopher and theologian in the tradition of scholasticism, known as Doctor Angelicus and Doctor Communis....
 with the new political-economic order. The themes of study centered on man and his practical problems (morality, economics, jurisprudence, etc.), but almost equally on a particular body of work accepted by all of them, as the ground against which to test their disagreements, including at times bitter polemics within the School.

The School of Salamanca in the broad sense may be considered more narrowly as two schools of thought coming in succession, that of the Salmanticenses and that of the Conimbricenses
Conimbricenses

Conimbricenses or Collegium Conimbricenses is the name by which Jesuits of the University of Coimbra in Coimbra, Portugal were known. The Conimbricenses were Jesuits who, from the end of 16th century took over the intellectual leadership of the Roman Catholic world from the Dominican Orders....
. The first began with Francisco de Vitoria (1483–1546), and reached its high point with Domingo de Soto (1494–1560). The Conimbricenses were Jesuits who, from the end of 16th century took over the intellectual leadership of the Roman Catholic world from the Dominican
Dominican Order

The Order of Preachers , after the 15th century more commonly known as the Dominican Order or Dominicans, is a Roman Catholic religious order founded by Saint Dominic in the early 13th century in France....
s. Among those Jesuits were Luis de Molina (1535–1600), the aforementioned Francisco Suárez (1548–1617), and Giovanni Botero
Giovanni Botero

Giovanni Botero was an Italian thinker, priest, poet, and diplomat, best known for his 1589 work The Reason of State. In this work, he argued against the amoral political philosophy associated with Niccol? Machiavelli's The Prince, not only because it lacked a Christian foundation but also because it simply did not work....
 (1544-1617), who would continue the tradition in Italy. The name Conimbricenses refers to the University of Coimbra
University of Coimbra

The University of Coimbra is a Portuguese public university in Coimbra, Portugal. It is one of the List of oldest universities in continuous operation in Europe and the world, the oldest university of Portugal, and one of its largest higher education and research institutions....
 in Portugal
Portugal

Portugal , officially the Portuguese Republic , is a country on the Iberian Peninsula. Located in southwestern Europe, Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east....
, where the Jesuit professors were based.

Law and justice


The juridical doctrine of the School of Salamanca represented the end of medieval concepts of law, with a revindication of liberty
Liberty

Liberty, the freedom to act or believe without being stopped by unnecessary force, is generally considered in modern time to be a concept of political philosophy and identifies the condition in which an individual has the right to act according to his or her own free will....
 not habitual in Europe
Europe

Europe is, conventionally, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia to its east by the water divide of the Ural Mountains, the Ural , the Caspian Sea, and by the Caucasus Mountains to the southeast....
 of that time. The natural rights of man came to be, in one form or another, the center of attention, including rights as a corporeal being (right to life, economic rights such as the right to own property) and spiritual rights (the right to freedom of thought
Freedom of thought

Freedom of thought is the Freedom of an individual to hold or consider a fact, viewpoint, or thought, independent of others' viewpoints. It is closely related to, yet distinct from, the concept of freedom of speech....
 and to human dignity).

Natural law and human rights


The School of Salamanca reformulated the concept of natural law
Natural law

Natural law or the law of nature is a theory that posits the existence of a law whose content is set by nature and that therefore has validity everywhere....
: law originating in nature itself, with all that exists in the natural order sharing in this law. Their conclusion was, given that all humans share the same nature, they also share the same rights to life and liberty. Such views constituted a novelty in European thought and went counter to those then predominant in Spain and Europe that people indigenous to the Americas
Indigenous peoples of the Americas

The indigenous peoples of the Americas are the pre-Columbian inhabitants of the Americas, their descendants, and many ethnic groups who identify with those peoples....
 had no such rights.

Gabriel Vázquez (1549–1604) held that natural law is not limited to the individual, but obliges societies to act in accord and be treated with justice.

Sovereignty


The School of Salamanca distinguished two realms of power, the natural or civil realm and the realm of the supernatural
Supernatural

The term supernatural or supranatural pertains to an order of existence beyond the scientifically visible universe. Religious miracles are typically supernatural claims, as are Spell and curses, divination, the belief that there is an afterlife for the dead, and innumerable others....
, which were often conflated in the Middle Ages
Middle Ages

File:Karl 1 mit papst gelasius gregor1 sacramentar v karl d kahlen.jpgThe Middle Ages of European history are a period in history which lasted for roughly a millennium, commonly dated from the fall of the Roman Empire in the 5th century to the beginning of the Early Modern Period in the 16th century, marked by the division of Western Christi...
 through doctrines such as the Divine Right of Kings
Divine Right of Kings

The Divine Right of Kings is a politics and religion doctrine of royal absolutism. It asserts that a monarch is subject to no earthly authority, deriving his right to rule directly from the will of God....
 and the temporal powers of the pope
Pope

The Pope is the Bishop of Rome, the leader of the Roman Catholic Church and head of state of Vatican City. The current pope is Pope Benedict XVI, who was elected April 19, 2005 in Papal conclave, 2005....
. One direct consequence of the separation of realms of power is that the king or emperor does not legitimately have jurisdiction over soul
Soul

In many religions and parts of philosophy, the soul is the immaterial part of a person. It is usually thought to consist of one's thoughts and Personality psychology, and can be synonymous with the spirit, mind or self....
s, nor does the Pope
Pope

The Pope is the Bishop of Rome, the leader of the Roman Catholic Church and head of state of Vatican City. The current pope is Pope Benedict XVI, who was elected April 19, 2005 in Papal conclave, 2005....
 have legitimate temporal power
Temporal power

The temporal power of the Popes is the political and governmental activity of the Popes of the Roman Catholic Church, as distinguished from their spiritual and pastoral activity, which is also called eternal power, to contrast it with the Church's secular power....
. This included the proposal that there are limits on the legitimate powers of government. Thus, according to Luis de Molina a nation
Nation

A nation is a cultural and social community. In as much as most members never meet each other, yet feel a common bond, it may be considered an imagined community....
 is analogous to a mercantile society (the antecedent of a modern corporation
Corporation

A corporation is a legal entity separate from the persons that form it. It is a legal entity owned by individual stockholders. In British tradition it is the term designating a body corporate, where it can be either a corporation sole or a corporation aggregate ....
) in that those who govern are holders of power (effectively sovereigns) but a collective power, to which they are subject, derives from them jointly. Nonetheless, in de Molina's view, the power of society over the individual is greater than that of a mercantile society over its members, because the power of the government of a nation emanates from God's divine power (as against merely from the power of individuals sovereign
Sovereign

Sovereign may refer to:*Sovereignty, a philosophical concept or state*Sovereign *Sovereign Hill, Victoria, Australia*Lady Sovereign, a female MC and performing artist for Def Jam Recordings...
 over themselves in their business dealings).

At this time, the monarchy
Monarchy

A monarchy is a form of government in which supreme power is absolutely or nominally lodged in an individual, who is the head of state, often for Life tenure or until abdication, and "is wholly set apart from all other members of the state." The person who heads a monarchy is called a monarch....
 of England
England

native_name =|conventional_long_name = England|common_name = England|image_flag = Flag of England.svg|image_coat = England COA.svg|symbol_type = Royal Coat of Arms...
 was extending the theory of the divine right of kings
Divine Right of Kings

The Divine Right of Kings is a politics and religion doctrine of royal absolutism. It asserts that a monarch is subject to no earthly authority, deriving his right to rule directly from the will of God....
 — under which the monarch is the unique legitimate recipient of the emanation of God's power — asserting that subjects
Subject (philosophy)

In philosophy, a subject is a being which has subjective experiences, subjective consciousness or a relationship with another entity . A subject is an observer and an object is a thing observed....
 must follow the monarch's orders, in order not to contravene said design. Counter to this, several adherents of the School sustained that the people
People

The English noun people has two distinct fields of application:* as a Count noun, a group of humans, either with unspecified traits, or specific characteristics ....
 are the vehicle of divine sovereignty
Sovereignty

File:Leviathan gr.jpgSovereignty is the exclusive right to control a government, a State, a people, or oneself. A sovereign is a supreme lawmaking authority....
, which they, in turn, pass to a prince under various conditions. Possibly the one who went furthest in this direction was Francisco Suárez, whose work Defensio Fidei Catholicae adversus Anglicanae sectae errores (The Defense of the Catholic Faith against the errors of the Anglican sect 1613) was the strongest defense in this period of popular sovereignty
Popular sovereignty

Popular sovereignty or the sovereignty of the people is the belief that the legitimacy of the state is created by the will or Consent of the governed, who are the source of all political power....
. Men are born free by their nature and not as slaves of another man, and can disobey even to the point of deposing an unjust government. As with de Molina, he affirms that political power does not reside in any one concrete person, but he differs subtly in that he considers that the recipient of that power is the people as a whole, not a collection of sovereign individuals — in the same way, Jean-Jacques Rousseau
Jean-Jacques Rousseau

Jean Jacques Rousseau was a major philosopher, writer, and composer of the eighteenth century The Age of Enlightenment, whose political philosophy influenced the French Revolution and the development of modern political and educational thought....
's theory of popular sovereignty would consider the people as a collective group superior to the sum that composes it.

For Suárez, the political power of society is contractual in origin because the community forms by consensus
Consensus

Consensus has two common meanings. One is a general Wiktionary:agreement among the members of a given group or community, each of which exercises some discretion in decision making and follow-up action....
 of free wills. The consequence of this contractualist theory
Social contract

Social contract describes a broad class of theories that try to explain the ways in which people form nations and maintain social order. The notion of the social contract implies that the people give up some rights to a government or other authority in order to receive or maintain social order....
 is that the natural form of government is democracy
Democracy

Democracy is a form of government in which power is held directly or indirectly by citizens under a free electoral system. It is derived from the Greek language d?????at?a , "popular government" which was coined from d???? , "people" and ???t?? , "rule, strength" in the middle of the 5th-4th century BC to denote the political syst...
, while oligarchy
Oligarchy

Oligarchy is a form of government where political power effectively rests with a small Elitism segment of society distinguished by royalty, wealth, family, military influence or occult spiritual hegemony....
 or monarchy
Monarchy

A monarchy is a form of government in which supreme power is absolutely or nominally lodged in an individual, who is the head of state, often for Life tenure or until abdication, and "is wholly set apart from all other members of the state." The person who heads a monarchy is called a monarch....
 arise as secondary institutions, whose claim to justice is based on being forms chosen (or at least consented to) by the people.

The law of peoples and international law


Francisco de Vitoria
Francisco de Vitoria

Francisco de Vitoria was a Spanish Renaissance Roman Catholic philosophy and theology, founder of the tradition in philosophy known as the School of Salamanca, noted especially for his contributions to the theory of just war and international law....
 was perhaps the first to develop a theory of ius gentium
Ius gentium

Ius gentium is Latin for "law of peoples". It was the body of common laws that applied to foreigners, and their dealings with Roman citizens....
 (the rights of peoples), and thus is an important figure in the transition to modernity. He extrapolated his ideas of legitimate sovereign power to society at the international level, concluding that this scope as well ought to be ruled by just forms respectable of the rights of all. The common good of the world is of a category superior to the good of each state. This meant that relations between states ought to pass from being justified by force to being justified by law and justice. Francisco de Vitoria essentially invented international law
International law

Public international law concerns the structure and conduct of states and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond domestic legal interpretation and enforcement....
.

Francisco Suárez subdivided the concept of ius gentium. Working with already well-formed categories, he distinguished between ius inter gentes and ius intra gentes. Ius inter gentes corresponded to modern international law, and was something common to the majority of countries (although being positive law
Positive law

Positive law is a legal term that is sometimes understood to have more than one meaning. But in the strictest sense, it is law made by human beings, that is, "Law actually and specifically enacted or adopted by proper authority for the government of an organized jural society." This term is also sometimes used to refer to the legal philosophy...
, not natural law, it was not necessarily universal); ius intra gentes or civil law
Private law

Private law is that part of a legal system that involves relationships between individuals. This includes the law of contracts or torts and the law of obligations....
 is specific to each nation.

Just war


Given that war is one of the worst evils suffered by mankind, the adherents of the School reasoned that it ought to be resorted to only when it was necessary in order to prevent an even greater evil. A diplomatic agreement is preferable, even for the more powerful party, before a war is started. Examples of "just war" are:

  • In self-defense, as long as there is a reasonable possibility of success. If failure is a foregone conclusion, then it is just a wasteful spilling of blood.


  • Preventive war against a tyrant who is about to attack.


  • War to punish a guilty enemy.


A war is not legitimate or illegitimate simply based on its original motivation: it must comply with a series of additional requirements:

  • It is necessary that the response be commensurate to the evil; use of more violence than is strictly necessary would constitute an unjust war.


  • Governing authorities declare war, but their decision is not sufficient cause to begin a war. If the people oppose a war, then it is illegitimate. The people have a right to depose a government that is waging, or is about to wage, an unjust war.


  • Once war has begun, there remain moral limits to action. For example, one may not attack innocents or kill hostages.


  • It is obligatory to take advantage of all options for dialogue and negotiations before undertaking a war; war is only legitimate as a last resort.


Under this doctrine, expansionist wars, wars of pillage, wars to convert infidel
Infidel

Infidel is an archaic English language term designating a person who rejects some or all of the essential doctrines of one's own religion or rejects the existence of God - specifically a Muslim to a Christian, a Christian to a Muslim and a Gentile to a Jew It is also a general term used for unbelievers in respect to a particular religion....
s or pagans
Paganism

Paganism is the blanket term given to describe religions and spiritual practices of pre-Christian Europe, and by extension a term for polytheistic?traditions or folk religion?worldwide seen from a Western or Christian viewpoint....
, and wars for glory are all inherently unjust.

The conquest of America


In this period, in which colonialism
Colonialism

Colonialism is the extension of a nation's sovereignty over Territory beyond its borders by the establishment of either settler or exploitation colony in which Indigenous people populations are direct rule, Population transfers, or Genocide....
 began, Spain was the only western European nation in which a group of intellectuals questioned the legitimacy of conquest rather than simply trying to justify it by traditional means.

Francisco de Vitoria began his analysis of conquest by rejecting "illegitimate titles". He was the first to dare to question whether the bulls
Papal bull

A Papal bull is a particular type of letters patent or charter issued by a pope. It is named after the bulla that was appended to the end to authenticate it....
 of Alexander VI known collectively as the Bulls of Donation were a valid title of dominion over the newly discovered territories. In this matter he did not accept the universal primacy of the emperor, the authority of the Pope (because the Pope, according to him, lacked temporal power), nor the claim of voluntary submission or conversion of the Native Americans. One could not consider them sin
Sin

Sin is a term used mainly in a religion context to describe an act that violates a morality rule, or the state of having committed such a violation....
ners or lacking in intelligence: they were free people by nature, with legitimate property rights. When the Spanish arrived in America they brought no legitimate title to occupy those lands and become their master.

Vitoria also analyzed whether there were legitimate claims of title over discovered lands. He elaborated up to eight legitimate titles of dominion. The first and perhaps most fundamental relates to communication between people, who jointly constitute a universal society. Ius peregrinandi et degendi is the right of every human being to travel and do commerce in all parts of the earth, independently of who governs or what is the religion of the territory. For him, if the "Indians" of the Americas would not permit free transit, the aggrieved parties had the right to defend themselves and to remain in land obtained in such a war of self-defense.

The second form of legitimate title over discovered lands also referred back to a human right whose obstruction is a cause for a just war. The Indians could voluntarily refuse conversion, but could not impede the right of the Spanish to preach, in which case the matter would be analogous to the first case. Nonetheless, Vitoria noted that although this can be grounds for a just war, it is not necessarily appropriate to make such a war, because of the resulting death and destruction.

The other cases of this casuistry
Casuistry

Casuistry is an applied ethics term referring to case-based reasoning. Casuistry is used in juridical and ethical discussions of law and ethics, and often is a critique of principle or rule base reasoning....
 are:

  • If the pagan sovereigns force converts to return to idolatry
    Idolatry

    Idolatry is usually defined as worship of any cult image, idea, or Object , as opposed to the worship of a monotheistic God. It is considered a major sin in the Abrahamic religions whereas in religions where such activity is not considered as sin, the term "idolatry" itself is absent....
    .
  • If there come to be a sufficient number of Christians in the newly discovered land that they wish to receive from the Pope a Christian government.
  • In the case of overthrowing a tyranny or a government that is harming innocents (e.g. human sacrifice
    Human sacrifice

    Human sacrifice is the act of killing human beings as part of a religious ritual . Its typology closely parallels the various practices of ritual slaughter of animals and of religious sacrifice in general....
    )
  • If associates and friends have been attacked — as were the Tlaxcaltecas
    Tlaxcala

    Tlaxcala is one of the 31 mexican states of Mexico, located to the east of Mexico City....
    , allied with the Spanish but subjected, like many other people, to the Aztecs — once again, this could justify a war, with the ensuing possibility of legitimate conquest as in the first case
  • The final "legitimate title" although qualified by Vitoria himself as doubtful, is the lack of just laws, magistrates, agricultural techniques, etc. In any case, title taken according to this principle must be exercised with Christian charity and for the advantage of the Indians.


This doctrine of "legitimate" and "illegitimate" titles was not agreeable to Emperor Charles V
Charles V, Holy Roman Emperor

Charles V was ruler of the Holy Roman Empire from 1519 and, as Charles I of Spain, of the Spanish realms from 1516 until his abdication in 1556....
, then ruler of Spain, in that they meant that Spain had no special right; he tried without success to stop these theologians from expressing their opinions in these matters.

Economics


Much attention has been drawn to the economic thought of the School of Salamanca by Joseph Schumpeter
Joseph Schumpeter

Joseph Alois Schumpeter was an economist and political scientist born in Moravia, then Austria-Hungary, now Czech Republic. He popularized the term "creative destruction" in economics....
's History of Economic Analysis (1954). It did not coin, but certainly consolidated, the use of the term School of Salamanca in economics. Schumpeter studied scholastic
Scholasticism

Scholasticism was the dominant form of theology and philosophy in the Western Europe in the Middle Ages, particularly in the 12th, 13th, and 14th centuries....
 doctrine in general and Spanish scholastic doctrine in particular, and praised the high level of economic science in Spain in the 16th century. He argued that the School of Salamanca most deserve to be considered the founders of economics as a science. The School did not elaborate a complete doctrine of economics, but they established the first modern economic theories to address the new economic problems that had arisen with the end of the medieval order. Unfortunately, there was no continuation of their work until the end of the 17th century and many of their contributions were forgotten, only to be rediscovered later by others.

The English historian of economic thought Marjorie Grice-Hutchinson
Marjorie Grice-Hutchinson

Marjorie Grice-Hutchinson was an historian of economics specialised in the Salamanca school and in medieval economic thought. She was a student of Friedrich Hayek with whom she took her PhD....
 has published numerous articles and monographs on the School of Salamanca.

Although there does not appear to be any direct influence, the economic thought of the School of Salamanca is in many ways similar to that of the Austrian School
Austrian School

The Austrian School is a Heterodox economics school of economics. It emphasizes the spontaneous organizing power of the price mechanism, holds that the complexity of subjective human choices makes mathematical modelling of the evolving market extremely difficult and therefore advocates a laissez faire approach to the economy....
. Murray Rothbard
Murray Rothbard

Murray Newton Rothbard was an American economics of the Austrian School who helped define modern libertarianism and founded a form of free-market anarchism he termed "anarcho-capitalism"....
 referred to them as proto-Austrians.

Antecedents


In 1517, de Vitoria, then at the Sorbonne
Sorbonne

The name Sorbonne is commonly used to refer to the historic University of Paris in Paris, France or one of its successor institutions , but this is a recent usage, and "Sorbonne" has actually been used with different meanings over the centuries....
, was consulted by Spanish merchants based in Antwerp
Antwerp

||-||-||-||}Antwerp is a city and municipality in Belgium and the capital of the Antwerp in Flanders, one of Belgium's three regions....
 about the moral legitimacy of engaging in commerce to increase one's personal wealth. From today's point of view, one would say they were asking for a consultation about the entrepreneurial
Entrepreneurship

Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities....
 spirit. Beginning at that time, Vitoria and other theologians looked at economic matters. They moved away from views that they found to be obsolete, adopting instead new ideas based on principles of natural law.

According to these views, the natural order is base in the "freedom of circulation" of people, goods, and ideas, allowing people to know one another and increase their sentiments of brotherhood. This implies that merchantry is not merely not reprehensible, but that it actually serves the general good.

Private property


The adherents of the School of Salamanca all agreed that property has the beneficial effect of stimulating economic activity, which, in turn, contributed to the general well being. Diego de Covarrubias y Leiva (1512–1577) considered that people had not only the right to own property but — again, a specifically modern idea — they had the exclusive right to the benefit from that property, although the community might also benefit. Nonetheless, in times of great necessity, there all goods become a commons.

Luis de Molina argued that individual owners take better care of their goods than is taken of common property.

Money, value, and price


The most complete and methodical developments of a Salamancan theory of value were by Martín de Azpilcueta
Martín de Azpilcueta

Mart?n de Azpilcueta , was an important Spanish canonist and theologian in his time....
 (1493–1586) and Luis de Molina. Interested in the effect of precious metals arriving from the Americas, de Azpilcueta proved that in the countries where precious metals were scarce, prices for them were higher than in those where they were abundant. Precious metals, like any other mercantile good, gained at least some of their value from their scarcity. This scarcity theory of value was a precursor of the quantitative theory of money put forward slightly later by Jean Bodin
Jean Bodin

Jean Bodin was born in Angers, France, and became a French jurist and political philosophy, member of the Parlement of Paris and professor of law in Toulouse....
 (1530–1596).

Up until that time, the predominant theory of value had been the medieval theory based on the cost of production as the sole determinant of a just price
Just price

The just price is a theory of ethics in economics that attempts to set standards of fairness in transactions. With intellectual roots in Ancient Greece philosophy, it was advanced by Thomas Aquinas based on an argument against usury, which in his time referred to the making of any rate of interest on loans....
 (a variant of the cost-of-production theory of value
Cost-of-production theory of value

In economics, the cost-of-production theory of value is the theory that the price of an object or condition is determined by the sum of the cost of the resources that went into making it....
, most recently manifested in the labor theory of value
Labor theory of value

The labor theories of value are theory of value according to which the Value of commodities are related to the Labour needed to produce them....
). Diego de Covarrubias and Luis de Molina developed a subjective theory of value
Subjective theory of value

The subjective theory of value is an economic theory of value that holds that "to possess value an object must be both useful and scarce, with the extent of that value dependent upon the ability of an object to satisfy the wants of any given individual....
 and prices, which asserted that the usefulness of a good varied from person to person, so just prices would arise from mutual decisions in free commerce, barring the distorting effects of monopoly
Monopoly

In economics, a monopoly exists when a specific individual or enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it....
, fraud, or government intervention. Expressing this in today's terms, the adherents of the School defended the free market
Free market

A free market is a market that is free of government intervention and regulation, besides the minimal function of maintaining the legal system and protecting property rights, and is also free of private force and fraud....
, where the fair price of a good would be determined by supply and demand
Supply and demand

...
.

On this Luis Saravia de la Calle wrote in 1544:

Those who measure the just price by the labour, costs, and risk incurred by the person who deals in the merchandise or produces it, or by the cost of transport or the expense of traveling...or by what he has to pay the factors for their industry, risk, and labour, are greatly in error.... For the just price arises from the abundance or scarcity of goods, merchants, and money...and not from costs, labour, and risk.... Why should a bale of linen brought overland from Brittany at great expense be worth more than one which is transported cheaply by sea?... Why should a book written out by hand be worth more than one which is printed, when the latter is better though it costs less to produce?... The just price is found not by counting the cost but by the common estimation.


However the school rarely followed this idea through systematically, and, as Friedrich Hayek
Friedrich Hayek

Friedrich August von Hayek Order of the Companions of Honour was an Austrian economist and philosopher known throughout the world for his defense of classical liberalism and free market capitalism against socialism and collectivism thought....
 has written, "never to the point of realizing that what was relevant was not merely man's relation to a particular thing or a class of things but the position of the thing in the whole...scheme by which men decide how to allocate the resources at their disposal among their different endeavors."

Interest on money


Usury
Usury

Usury originally meant the charging of interest on loans. This would have included charging a fee for the use of money, such as at a bureau de change....
 (which in that period meant any charging of interest
Interest

Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money , or, money earned by deposited funds .Assets that are sometimes lent with interest include money, shares, consumer goods through hire purchase, major assets such as aircraft finance, and even entire factories in finance lease arrangements....
 on a loan
Loan

A loan is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the wiktionary:lender and the wiktionary:borrower....
) has always been viewed negatively by the Roman Catholic Church. The Second Lateran Council condemned any repayment of a debt with more money than was originally loaned; the Council of Vienne
Council of Vienne

The Council of Vienne was the Fifteenth Ecumenical Council of the Roman Catholic Church that met between 1311 and 1312 in Vienne, Is?re. Its principal act was to withdraw Pope for the Knights Templar on the instigation of the King of France, Philip IV of France....
 explicitly prohibited usury and declared any legislation tolerant of usury to be heretical; the first scholastics reproved the charging of interest. In the medieval economy, loans were entirely a consequence of necessity (bad harvests, fire in a workplace) and, under those conditions, it was considered morally reproachable to charge interest.

In the Renaissance
Renaissance

The Renaissance was a cultural movement that spanned roughly the 14th to the 17th century, beginning in Italy in the late Middle Ages and later spreading to the rest of Europe....
 era, greater mobility of people facilitated an increase in commerce and the appearance of appropriate conditions for entrepreneur
Entrepreneur

An entrepreneur is a person who has possession of an organization, or venture, and assumes significant accountability for the inherent risks and the outcome....
s to start new, lucrative businesses. Given that borrowed money was no longer strictly for consumption but for production as well, it could not be viewed in the same manner. The School of Salamanca elaborated various reasons that justified the charging of interest. The person who received a loan benefited; one could consider interest as a premium paid for the risk taken by the loaning party. There was also the question of opportunity cost
Opportunity cost

Opportunity cost or economic opportunity loss is the value of the next best alternative foregone as the result of making a decision. Opportunity cost analysis is an important part of a company's decision-making processes but is not treated as an actual cost in any financial statement....
, in that the loaning party lost other possibilities of utilizing the loaned money. Finally, and perhaps most originally, was the consideration of money itself as a merchandise, and the use of one's money as something for which one should receive a benefit in the form of interest.

Martín de Azpilcueta also considered the effect of time. All things being equal, one would prefer to receive a given good now rather than in the future. This preference
Time preference

In economics, time preference pertains to how large a premium a consumer will place on enjoyment nearer in time over more remote enjoyment.There is no absolute distinction that separates "high" and "low" time preference, only comparisons with others either individually or in aggregate....
 indicates greater value. Interest, under this theory, is the payment for the time the loaning individual is deprived of the money.

Theology


In the Renaissance era, theology was generally declining in the face of the rise of humanism
Humanism

Humanism is a broad category of ethics that affirm the dignity and worth of all people, based on the ability to determine right and wrong by appealing to universal human qualities, particularly rationalism, without resorting to the supernatural or alleged divine authority from religious texts....
, with scholasticism
Scholasticism

Scholasticism was the dominant form of theology and philosophy in the Western Europe in the Middle Ages, particularly in the 12th, 13th, and 14th centuries....
 becoming nothing more than an empty and routine methodology. Under Francisco de Vitoria, the University of Salamanca
University of Salamanca

The University of Salamanca , located in the town of Salamanca, west of Madrid, is the oldest university in Spain , and List of oldest universities in continuous operation in Europe....
 led a period of intense activity in theology, especially a renaissance of Thomism
Thomism

Thomism is the philosophical school that arose as a legacy of the work and thought of Thomas Aquinas. The word comes from the name of its originator, whose Summa Theologica is arguably second only to the Bible in importance to the Roman Catholic Church....
, whose influence extended to European culture in general, but especially to other European universities. Perhaps the fundamental contribution of the School of Salamanca to theology is the study of problems much closer to humanity, which had previously been ignored, and the opening of questions that had previously not been posed. The term positive theology is sometimes used to distinguish this new, more practical, theology from the earlier scholastic theology.

Morality


In an era when religion
Religion

A religion is an organized approach to human spirituality which usually encompasses a set of myth, symbols, beliefs and practices, often with a supernatural or transcendence quality, that give meaning to the practitioner's experiences of life through reference to a higher power or truth....
 (whether Roman Catholicism, Calvinism
Calvinism

Calvinism is a theology system and an approach to the Christian life that emphasizes the rule of God over all things. It was developed by several theologians, but it bears the name of the French Protestant Reformation John Calvin because of his prominent influence on it and because of his role in the confessional and ecclesiastical debates t...
, Islam
Islam

Islam is a Monotheism, Abrahamic religion originating with the teachings of the Prophets of Islam Muhammad, a 7th century Arab religious and political figure....
, or others) permeated everything, to analyze the morality of the acts was considered the most practical and useful study one could undertake to serve society. The novel contributions of the School in law and economics were rooted in concrete challenges and moral problems which confronted society under new conditions.

It was a revolutionary idea to assert that Christian believers could behave in an evil manner and people entirely ignorant of Christianity could do good. That is to say, morality
Morality

Morality has three principal meanings.In its first, descriptive usage, morality means a code of conduct which is held to be authoritative in matters of right and wrong....
 did not depend on conscious knowledge of God. This was particularly important in terms of behavior toward pagans, who could not be presupposed to be evil merely because they were not Christians.

Over the years a casuistry
Casuistry

Casuistry is an applied ethics term referring to case-based reasoning. Casuistry is used in juridical and ethical discussions of law and ethics, and often is a critique of principle or rule base reasoning....
, a fixed set of answers to moral dilemmas, had been developed. However, by its nature, a casuistry can never be complete, leading to a search for more general rules or principles. From this developed Probabilism
Probabilism

In theology and philosophy, probabilism holds that in the absence of certainty, probability is the best criterion....
, where the ultimate criterion was not truth, but the certainty of not choosing evil. Developed principally by Bartolomé de Medina
Bartolomé de Medina

Bartolom? de Medina, Spain theologian, was born in Medina del Campo, Spain in 1527. A member of the Dominican Order and a student of Francisco de Vitoria, he was professor of theology at the University of Salamanca and a member of the School of Salamanca....
 and continued by Gabriel Vázquez y Francisco Suárez, Probabilism became the most important school of moral thought in the coming centuries..

The polemic De auxiliis


The polemic De auxiliis was a dispute between Jesuits and Dominicans which occurred at the end of the 16th century. The topic of the controversy was grace
Divine grace

In theology, grace may be described as 'enabling power sufficient for progression'. In Christianity, grace divine is an "unmerited favour" of God, indispensable gift from God for development, improvement, and character expansion, and without God's grace, there are certain limitations, weaknesses, flaws, impurities, and faults mankind cannot...
 and predestination
Predestination

Predestination is a religion concept, which involves the relationship between God and His creation. The religious character of predestination distinguishes it from other ideas about determinism and free will....
, that is to say how one could reconcile the liberty
Liberty

Liberty, the freedom to act or believe without being stopped by unnecessary force, is generally considered in modern time to be a concept of political philosophy and identifies the condition in which an individual has the right to act according to his or her own free will....
 or free will
Free will

The question of free will is whether, and in what sense, rational agents exercise control over their actions and decisions. Addressing this question requires understanding the relationship between freedom and Causality, and determining whether the laws of nature are causally deterministic....
 of humans with divine omniscience
Omniscience

Omniscience is the capacity to know everything infinitely, or at least everything that can be known about a character including thoughts, feelings, life and the universe, etc....
. In 1582 the Jesuit Prudencio Montemayor and Fray Luis de León spoke publicly about human liberty. Domingo Báñez
Domingo Báñez

Domingo Ba?ez was a Spanish Dominican Order theologian. The qualifying Mondragonensis, attached to his name, seems to be a patronymic after his father John Ba?ez of Mondragon, Guipuscoa....
 considered that they gave free will too great a weight and that the used terminology that sounded heretical
Heresy

Heresy is an introduced change to some system of belief, especially a religion, that conflicts with the previously established canon of that belief....
; he denounced them to the Spanish Inquisition
Spanish Inquisition

The Spanish Inquisition was an ecclesiastical tribunal established in 1478 by Catholic Monarchs Ferdinand II of Aragon and Isabella I of Castile....
, accusing them of Pelagianism
Pelagianism

Pelagianism is a theological theory named after Pelagius . It is the belief that original sin did not taint Instinct and that mortal will is still capable of choosing Goodness and value theory or evil without special Miracle....
, a belief in human free will to the detriment of the doctrine of original sin
Original sin

Original sin is, according to a doctrine in Christian theology, humanity's state of sin resulting from the Fall of Man. While the Old Testament and the New Testament, which frequently speak of the sinfulness of humans, do not contain the terms "original sin" or "ancestral sin", the doctrine expressed by these terms is claimed to be based on t...
 and the grace granted by God. Montemayor and de León were banned from teaching and prohibited from defending such ideas.

Báñez was then denounced to the Holy Office by Leon, who accused him of "committing the error of Lutheranism", that is of following the doctrines of Martin Luther
Martin Luther

Martin Luther was a Germans monk, theology, university professor, priest, father of Protestantism, and Protestant Reformers whose ideas started the Protestant Reformation and changed the course of Western culture....
. According to Lutheran doctrine, man is "dead in his trespasses" (Ephesians 2:1) as a consequence of original sin and cannot save himself by his own merit; only God can save man, "For by grace you have been saved through faith. And this is not your own doing; it is the gift of God, not a result of works, so that no one may boast." (Ephesians 2:8-9) Báñez was acquitted.

Nonetheless, this did not end the dispute, which Luis de Molina continued with his Concordia liberi arbitrii cum gratiae donis (1588). This is considered the best expression of the Jesuit position. The polemic continued over the course of years, including an attempt by the Dominicans to get Pope Clement VIII
Pope Clement VIII

Pope Clement VIII , born Ippolito Aldobrandini, was Pope from January 30, 1592 to March 3, 1605....
 to condemn the Concordia of de Molina. Finally Paul V in 1607 recognized the liberty of Dominicans and Jesuits to defend their ideas, prohibiting that either side of this disagreement be characterized as heresy.

The existence of evil in the world


The existence of evil in a world created and ruled by an infinitely good and powerful God has long been viewed as paradoxical. (See Problem of evil
Problem of evil

In the philosophy of religion and theology, the problem of evil is the problem of reconciling the existence of evil or suffering in the world with the existence of God....
). Vitoria reconciled the paradox by arguing first that free will is a gift from God to each person. It is impossible that each person will always freely choose only the good. Thus, evil results as a necessary consequence of human free will.

See also

  • Conimbricenses
    Conimbricenses

    Conimbricenses or Collegium Conimbricenses is the name by which Jesuits of the University of Coimbra in Coimbra, Portugal were known. The Conimbricenses were Jesuits who, from the end of 16th century took over the intellectual leadership of the Roman Catholic world from the Dominican Orders....
  • Second scholasticism
    Second scholasticism

    Second Scholasticism is a term applied to the revival of the Scholasticism system of philosophy in the 16th century. It arose partly as a reaction to the Protestant reformation which emphasised a return to the language of the Bible, and the Fathers of the Church....
  • Casuistry
    Casuistry

    Casuistry is an applied ethics term referring to case-based reasoning. Casuistry is used in juridical and ethical discussions of law and ethics, and often is a critique of principle or rule base reasoning....
  • Francisco Suarez
    Francisco Suárez

    Francisco Su?rez was a Spain Jesuit Catholic priest, philosopher and theology, generally regarded as having been the greatest scholasticism after Thomas Aquinas....
  • Social contract
    Social contract

    Social contract describes a broad class of theories that try to explain the ways in which people form nations and maintain social order. The notion of the social contract implies that the people give up some rights to a government or other authority in order to receive or maintain social order....
  • Sovereignty
    Sovereignty

    File:Leviathan gr.jpgSovereignty is the exclusive right to control a government, a State, a people, or oneself. A sovereign is a supreme lawmaking authority....
  • Marjorie Grice-Hutchinson
    Marjorie Grice-Hutchinson

    Marjorie Grice-Hutchinson was an historian of economics specialised in the Salamanca school and in medieval economic thought. She was a student of Friedrich Hayek with whom she took her PhD....


External links

  • on the History of Economic Thought website.
  • Murray Rothbard, Essay originally published in The Foundations of Modern Austrian Economics, edited by Edwin Dolan (Kansas City: Sheed and Ward, 1976), pp. 52–74.
  • Peter Chojnowski, . The Angelus
    The Angelus

    The Angelus is an Republic of Ireland Television institution. It is broadcast during weekdays on RT? One immediately prior to the RT? News: Six One....
    , January 2005 Volume XXVIII, Number 1. (Contends that the alleged economic liberalism
    Economic liberalism

    Economic liberalism is the economic component of classical liberalism.Theories in support of economic liberalism were developed in the Age of Enlightenment, and believed to be first fully formulated by Adam Smith which advocates...
     is based on a misreading of scholastic
    Scholasticism

    Scholasticism was the dominant form of theology and philosophy in the Western Europe in the Middle Ages, particularly in the 12th, 13th, and 14th centuries....
     texts.)
  • Leonard P. Liggio, . Acton Institute, Religion & Liberty, January and February 2000, Volume 10, Number 1.
  • Puts into context of truce negotiations 1608-09. Ittersum (p.18) notes Grotius' citing of School of Salamanca figures, as well as the Ancient Greek, Roman and early Church Fathers (p.12).