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The Rhonheimer Effect: Shaping Economics, Ethics, and Bioethics in the Modern Age

In the world of economic philosophy and Catholic Social Teaching, Martin Rhonheimer stands as a remarkable thinker whose work has left an indelible mark. The Swiss philosopher and theologian born in 1950, is known for his important contributions to the field of economic ethics and morality, especially in the context of Catholic ethics. In this article, we highlight some remarkable ideas from the author.

  • “The economic system of giving”

In first place, Martin Rhonheimer is widely recognized for his significant contributions to the field of economics, with his theses closely aligned with both the Austrian School of Economics and the Salamanca School[1].

The author emphasizes the historical contribution of capitalism in Europe in liberating the masses from famine and misery, democratizing welfare. He argues that the differences in living standards between workers and billionaires are becoming smaller and smaller in terms of basic material needs[2] and defends capitalism as a generator of employment and wealth through private investment. He warns against attempts to achieve greater “social justice” by taxing the rich and criticizes state intervention as a cause of economic crises. Rhonheimer argues that global poverty has declined thanks to capitalism and the market economy, and that inequality is inherent in economic development, but what is crucial is the increase in absolute welfare, especially of the poorest classes, where there has been more capitalism and free markets.

This position aligns closely with the principles of solidarity and subsidiarity proposed by the Catholic Social Teaching (and which we explained in our previous article on Hienrich Pesch). He emphasizes the importance of a just and humane economic order where solidarity calls for a responsibility to care for the less fortunate, and subsidiarity underscores the need for decision-making to occur at the most localized and efficient level, avoiding unnecessary state intervention. Rhonheimer contends that these principles, when applied thoughtfully, can contribute to a more equitable and morally sound economic system that respects human dignity and promotes the common good.

  • Corporate Social Responsibility: a misconception?

Rhonheimer has also been vocal about corporate ethics. His perspective on Corporate Social Responsibility (CSR) aligns with the idea that CSR is not a misconception, but it should be driven by strategic reasoning within businesses. He emphasizes that entrepreneurs engage in CSR successfully when they perceive it as beneficial for their enterprises, provided it does not compromise their competitiveness. Rhonheimer suggests that CSR should be viewed as a more accurate vision of business itself, considering stakeholders’ needs and contentment, similar to the importance of consumer satisfaction. He argues that market forces, rather than regulations, should stimulate CSR efforts. In market economies, businesses have a natural incentive to improve working conditions and respect stakeholders’ interests to maintain a positive reputation, which is a valuable resource for any enterprise.

  • A Thomistic approach to Bioethics

Martin Rhonheimer has also made significant contributions to bioethics by addressing complex moral dilemmas, including the ethics of assisted reproduction, euthanasia, and stem cell research, all from a robust ethical standpoint rooted in Catholic principles and Thomistic ethics. His unwavering stance on the sanctity of life, opposition to practices such as euthanasia and abortion, and advocacy for conscientious objection among healthcare professionals have all contributed to a more profound understanding of bioethical issues and their implications for humanity.

In conclusion, Martin Rhonheimer’s contributions to the fields of economics, ethics, and bioethics stand as a testament to the influence of Catholic thinkers in shaping these critical fields. His insights into the ethical dimensions of economic systems, firmly grounded in principles of solidarity and subsidiarity, provide a compass for creating equitable and humane economic structures. Furthermore, his unwavering stance on the sanctity of life in bioethical debates underscores the enduring relevance of Catholic ethics in contemporary dilemmas. Martin Rhonheimer’s work serves as a valuable resource for those seeking ethical guidance and moral clarity in the multifaceted landscape of economics and bioethics.

[1] Gómez Rivas, León, Campeones de la Libertad, 2019, Unión Editorial, p.208

[2] Rhonheimer, Martin, Libertad Económica, Capitalismo y Ética Cristiana, 2017, Unión Editorial, p.39

Borja Barragán

Married and father of seven children, he has 19 years of experience in investment banking. He is very clear about his professional vocation: to put what he knows how to do (investment, economics and finance) at the service of the apostolate. After working in investment banking in international entities (Bank of America Merrill Lynch, Royal Bank of Scotland and Goldman Sachs), he founded the first equity investment fund in Spain in Julius Baer that followed the Social Doctrine of the Church: Temperantia. With a background in Business Administration and Management (ICADE), he expanded his training related to the world of faith-consistent investing: Harvard University (Boston): Sustainable Finance & Investments Program. Master’s Degree in Family Pastoral Care from the John Paul II Institute. Social Doctrine of the Church at the Pontifical University of St. Thomas Aquinas of Rome (Angelicum) Management of endowments and institutional funds – IESE. Today, he is the founder of Altum Faithful Investing, a financial advisory firm that follows the criteria of the magisterium of the Catholic Church in each and every one of its decisions.