“Well, they’re deductivists. And you know what I think of deductivists.”
That’s how Bernard J. F. Lonergan, S.J. (1904-1984) answered when I asked him about the Austrian school of economics.
Yes, I did know what he thought of them. More on that presently.
On June 22, 1983 I was on the campus of Boston College, engrossed in an afternoon session on Lonergan’s then-unpublished “Essay in Circulation Analysis,” the economics section of that year’s Lonergan Workshop. (An unofficial edition circulated among Lonerganians.) My aunt, the late Anne T. Flood, Sister of Charity, Ph.D. (Catholic University of America; dissertation on Bishop Christopher Butler and Lonergan) beckoned me from the hallway.
Would I like to meet the great man?
I didn’t return to the classroom.
Patricia “Pat” Coonan, who had known Lonergan since 1945, drove us from Chestnut Hill to Weston, where he was convalescing at the Campion Center. When we arrived, it wasn’t certain that Lonergan was up to a visit. We might have to turn around.
But soon he was ready [my diary shows] and greeted us [from his hospital bed] with a smile. Pat introduced me to the master, and I managed to comport myself properly. I did not interview him, but I did tell him about myself, what his work has meant to me, and even raised the question [of] macroeconomics with him when Pat brought up her difficulties with the “Circulation Analysis.” Lonergan stressed his own macroeconomic approach, not seeming to be aware that [Ludwig von] Mises’ and [Murray N.] Rothbard’s “microeconomic” approach has addressed the “Depression” argument against the free market.
In the aftermath of the Great Depression, immersed in theological studies and spiritual formation between his profession of vows in 1924 and ordination in 1936, Lonergan produced that manuscript. In the ‘70s, after his methodological work was done, he returned to it.