Money, Markets, and Merit

Abstract This book revisits the legacy of Leonardus Lessius (1554–1623), a pivotal figure in the early development of economic thought. Lessius was considered a “father of modern economic analysis” by none other than Joseph Schumpeter. He made significant contributions to the normative foundations of modern economics, offering ethical and juridical frameworks for dealing with issues like speculation, interest-taking, monopolies, banking, and insurance markets. In the process, he observed the empirical functioning of markets and analysed the logic behind economic and financial transactions. Set against the backdrop of global trade, religious upheaval, and the rise of capitalism in the sixteenth and early seventeenth centuries, his seminal work On Justice and Law combines legal, theological, and economic reasoning, providing practical solutions to moral dilemmas faced by merchants and financiers. Though Lessius condemned excessive greed, he supported the pursuit of economic activity through hard work, cleverness, and fair dealing. His ideas helped lay the groundwork for the ethical justification of modern commerce and finance, offering an important link between spiritual salvation and the legitimation of material prosperity on the basis of “merit.”