E plai a d a al se We er s Protesta t ethi theor as prese ted i the protesta t ethi a d spirit of capitalism. What are the strengths and weaknesses of this theory?
This essay will seek to explain and analyse Max We er s Protesta t Ethi a d the Spirit of Capitalis thesis. I doi g so, a thorough des riptio of We er s thesis ill o sist of half of this pie e, hilst offeri g a a al ses upo ea h poi t ade. Firstl this essa ill dis uss We er s ie o Capitalism, and what it is. Focus will then shift to ards We er s theologi al e pla atio for the rise of modern capitalism. In which he describes The Protestant Reformation as an accelerating force of Capitalism. We er s theor offers a i sight i to the d amics of capitalism, but it is also open to scrutiny, of which focus will turn towards conflicting theories on capitalism and its origins, with particular attention focused on the writings of Karl Marx.
In his thesis The Protestant Ethic & The Spirit of Capitalism Max Weber describes capitalism as being the application of an ultra rational approach towards re e ed profit making , (Weber, 2013, pp. 116). He states this as the essence of capitalism, arguing that those who do not pursue renewed profit making through the systematic utilisation of capital (goods & services) for exchange value are doo ed to e ti tio . Weber argues how that increase of capital in exchange value for the purpose of profit making is rationally pursued through a series calculations, It makes no difference whether assets consist of machinery, cash, raw aterials, The important fact is always that a calculation of capital in terms of money is made, whether by modern book keeping methods or any other way (Weber, 2013 pp. 117). What is important about this method of utilising capital is the rational approach to it. Before every individual decision making, a dead al ulatio is carried out to ensure the rationality of the decision making process.
According to Weber these elements of Capitalism have existed elsewhere, such as India and China. What separates western capitalism from its earlier variants in India and China are found in the practice of book keeping and notion of accessible credit, the separation of business from the household and fundamentally the access to free labour. These variables were arguably virtually unknown on a grand scale to China and India, and only existed in
isolated instances (Weber, 2013 pp.118). Weber describes these variables as a prerequisite for progress in growing the necessary external conditions to which capitalism can grow and excel. The separation of production from the household provided growth within cities, with this separation, labourers who would have formally earned an income through farms or textiles in the vicinity of their homes, could migrate to cities and larger towns where capitalist enterprises could grow and excel. The centralising of people in such urban locations allows the capitalist access to cheap labour. Similarly the access to accessible finance, grants the capitalist with the means to generate more capital through rational speculative forces Weber lays a heavy emphasis on these variables as a distinguishing factor as to why capitalism came to prominence in Western Europe and not elsewhere, (Weber, 2013 pp.118).
Weber s thesis sets out to explain why these external conditions came into existence, and in doing so he explores the relationship between cultural and psychological factors with relevance to trade, capitalist industry and enterprise. He does this by assessing the psychological and cultural impact of the Protestant Reformation, and how this acted as a catalyst of capitalism. Initially his argument focuses on the theological elements of the Protestant Reformation, which he argues inadvertently brought about a psychological change in people s attitudes to ards la our a d the a i hi h renewed accumulation of profit was sought after (Weber, 2013 pp. 119). Under the Catholic Church, individuals satisfied their spiritual need for grace through supernatural means. Salvation was found through the intercession of priests and the sacraments Protestant theology allows the individual to achieve salvation through their own personal efforts (Weber, 2013 pp. 119). The individual search for salvation-through-oneself, saw doctrines such as Calvinism, begin to gradually instil the individual with the spirit of Capitalism. Calvinist doctrine rejects any supernatural means of salvation and asserts that the individual is predestined to go to heaven in the afterlife. Thus raising the question from the individual, am I predestined to go to heaven? Calvinists ideology gave the individual with the ability to take possession of their own salvation, which was promoted through a life of asceticism. The individual was advised to detach themselves from the sinful indulgences of this world and devote themselves to a life of work in order to glorify God (Weber, 2013 pp.220).
Weber Furthermore argues Baptists variants of Protestantism held similar virtues which embodied the capitalist spirit. Baptists such as the Quakers applied an ultra-rational approach to the Bible, rejecting the supernatural means to salvation and determining that the individual best espoused his own faith through abandonment of earthly pleasures. It differed to Calvinism however, in its theological approach to salvation. Weber maintains that Baptist se ts arose through the elief of purit of the o s ie e , that only through this purity could the individual be reborn and accept the gift of salvation, The Quaker ethic holds that a a s life i his alli g is a e er ise i as eti irtue, a proof of his state of gra e, through his o s ie tious ess (Weber, 2013 pp. 125) He notes that Baptists organised themselves into sects, which only accepted members who acted in accordance with this aforementioned belief, thus provoking a communal ethic towards work and asceticism, All Baptist communities desired to be pure churches in the sense of the blameless conduct of their members, a sincere repudiation of the world and its interests and unconditional submission to God as speaki g through the o s ie e (Weber, pp. 120).
Weber emphasises how both Baptist and Calvinist interpretations of the Bible provoked the individual to assert their grace through a life of work. A work ethic designed to please God, and a rejection of the world s indulgences combined a psychological effect which manifested itself in the accumulation of capital for the purpose of renewed profit (Weber, 2013, pp. 126).
We er des ri es ho Protesta tis ade u h of the i di idual s o atio of life, which determined the individual to have a fixed calling. Thus, in his writing Martin Luther emphasised how the individual must accept his calling in whatever way it presents itself, Weber notes the Puritans stressed heavily o this aspe t of their theolog , For if God, whose hand the Puritan sees in all occurrences of life, shows one of His elect a chance of profit, he ust do it ith a purpose (Weber, 2013 pp.125). Weber see s this belief as a basis for justifying the division of labour, much like how the pursuit of profit to glorify God is used as a justification for the conduct of the capitalist. Not far removed from the idea of God as a leader and man as his servant, we may find the primary elements of capitalism, the capitalist; as the profit maker, and the worker as the diligent cog in the machine (Weber, 1904, pp. 136). Notably these concepts also justified the condemnation of the lazy,
idolatrous individual. Of course there was another side of the coin to the work ethic of the masses, which was the bourgeoisie, which held an ethic of profiteering, inspiring modern rational economic life and its continuum into unbridled economic enterprises (Weber, 2013 pp.134).
Weber sees asceticism as of prime importance to the Protestant work ethic, but he does acknowledge that it was only when overzealous asceticism peaked and began to decline could the individual begin to focus on economic activity (Weber, 2013 pp. 127).. This provoked a code of normative ethics in the form of Utilitarianism, which determined the i di idual s calling and choices as being judged on the outcome of their decision making (Weber, 2013 pp. 127). The individual would therefore act within their consciousness and thus act within the parameters of the law. Following on from this, the boundaries of the i di idual s conscience allowed the unequal distribution of wealth, being determined as just and moral, as they are acts of Divine Providence, as the i di idual s asceticism and consciousness has allowed themselves to believe they are predestined by God or reborn with the faith of God (Weber, 2013 pp. 229). Weber links this with the origins of ideas, with the unequal distribution of wealth, determining that both only exist because of acts of Divine Providence, wealth only exists, because it is those with the greater ideas who are predestined to enter heaven, or have been reborn through their conscious.
We er s thesis o es i to o fli t ith Karl Mar s riti gs o the rise of Capitalis . I his text The German Ideology And Historical Materialism, Marx argues capitalism as a natural progression for humanity, a development which stems from the division of labour He emphasises how the division of labour existed in all forms of society, whether feudal or tribal, but the degree to which labour was divided depended on the modes of production (Marx, pp. 29). As society grew more sophisticated, various forms of production evolved to maintain a continuum of divisional labour, as definite individuals who are productively active in a defi ite a e ter i to these so ial a d politi al relatio s (Marx, 1970 pp. 29). Marx argues that the accumulation of capital arose through the efforts of various economic actors such as guilds and merchants, who provided the basis for capitalist so alled modes of production . These actors seized new methods of production, such as weaving, mining along with other typical manufacturing efforts. This, along with Marx theory on the disintegration of large feudal armies, caused an influx of people into condensed areas,
which allowed capitalist merchants to seize the produ ti it of free labourers , thus creating towns and cities (Marx, 1970 pp. 31). Marx argues how the disintegration of large scale feudal standing armies began in the thirteenth century (pre Reformation), Kieran Allen reinforces this point as he describes how the beginning of 12th century saw Europe consisting of 50 towns & cities, the end of the 15th century saw Europe consisting of 4000 towns and cities (Allen, 2004, pp. 41). Thus, the initial centralising of people into cities and towns predates the Protestant Reformation.
Marx saw the influx of people into towns and cities as a catalyst of capitalism, illustrating how the more people within a condensed area see s a greater need for material wellbeing. He demonstrates this through the growth of the weaving industry, The rising demand for clothing material, consequent on the growth of population, the growing accumulation of natural capital and mobilisation of natural capital through accelerated circulation, gave weaving a quantitative and qualitative stimulus (Weber 2013 pp.31). Marx illustrates this example in order to project his argument that capitalism originates as a reflection of economic situations. His basis for this point was to emphasise the individuals need for material wellbeing. The greater amount of human beings condensed into a singular area, the greater need for material wellbeing. This will provoke greater ideas on how to excel material wellbeing, thus the individual will be in a greater competitive state with his fellow person, whether this be on a national or domestic scale, ideas will grow on how to increase material wellbeing (Marx, 1970 pp. 33).
We see two conflicting ideologies on the creation of ideas as a catalyst of capitalism. Weber argued that the liberation of the mind due to the Protestant Reformation inspired ideas. Thus, inspiring the acceleration of capitalism through the Protestant work ethic, Marx argues how the detriments of economic structures, such as the greater centralising of people, promoted the need for greater material well being, which was seized upon by the bourgeoisie through violent manipulative methods to promote capitalism.
We er s e phasis o the theologi al asis of the Protesta t ‘efor atio as ei g a atal st for capitalism provides moral justification for capitalist conduct. Its aspects of moral justification have caused concern for intellectuals; Kieran Allen subsequently argues that Weber provided a romanticised moral justification for capitalist conduct (Allen, 2004, pp.32).
He illustrates his criticism of Weber, by claiming Weber was short sighted, as he provides lack clarity on exposing the ariet of the Protesta t ‘efor atio , for e a ple. in Holland, Cal i ists used their theolog to e lude a kers a d their i es fro ser i e (Allen, 2004, pp.43). From this statement we must assume that all bankers were excluded from partaking in Calvinist theology. Therefore, an important variable of capitalism is hindered by Protestant theology rather than enhanced.
What is oti ea l issi g fro We er s thesis is larit o the origins of capital a u ulatio . Little i sight is offered o this o ept, other tha oti e for es as pla i g a i porta t role o a u ulati g apital. Mar i his riti gs o The So-Called Primitive A u ulatio o es i to o fli t ith We er s thesis. Marx argues how the rise in produ ts su h as ool sa the apitalist usurpatio of the o o la d through forcible driving of the peasantry from the common land through which the latter had the same feudal right as the lord hi self (Marx, 1906 pp.75.). Marx argues primitive accumulation to be an economic struggle between the capitalist and the peasantry. The usurpation of o o la d, for ed the peasa tr i to for s of age la our, rather tha We er s o ept of a alli g of as eti is to ork . Marx argues how the feudal estate worked with the capitalist Bourgeoisie with the usurpation of common lands through acts which allowed this phenomenon to take place. Arguing that the both Feudal and Bourgeoisie classes formally acknowledged this through their promotion of the Poor Law Act under Queen Elizabeth I, of which the authors of this law seem to have been ashamed to state the grou ds of it, for it as has o prea le hate er (Marx 1906 pp.76). Marx gives us a greater view into the dynamics of primitive accumulation than Weber; he argues it as s ste of o fli t. I doi g so he also is riti al of We er s theologi al justifi atio of the division of labour, describing it as this system s being enforced on the worker, rather than a religious alli g .
Weber can be criticised for his vague approach on the dynamics of capitalism, his failure to clarify the organic development of capitalism in a singular society where capitalism took hold, has been subject of criticism (Allen, 2004, pp.46). Though it must be noted that there are arguments which suggest that it was not We er s i te tio to focus on one society but rather as Stepha Kal erg argues his thesis as i aid to focus on the sphere of religion and the a er i hi h a spe ifi religious do tri e a i spire a tio . Weber did not wish to
give a grand historical narrative on the origins of capitalism, but rather to focus on how religious change helped to accelerate and modernise capitalism (Kalberg, 1996, pp.54). This may be the case, but there are grounds to criticise Weber on giving a romanticised view of such aspects of capitalism. As illustrated, Weber does give a romantic over view of the division of labour. This could arguably be intended to apply to the religious sects he described and not the general worker, but it is a romantic over view none the less (Kalberg, 1996, pp. 61) The lack of emphasis on a singular society, coinciding with what Allen describes as morally justifying apitalist o du t lea es We er s thesis ope to s ruti (Allen, 2004, pp. 51).
This pie e has ide tified We er s ke poi ts, hilst pro idi g riti is through re ie i g Karl Mar s theories o Capitalis origi s a d pri iti e a u ulatio . I doi g so, this piece pro ided a i sight i to oth So iologi al fou di g fathers o fli ti g theories, hilst pro idi g a al sis fro oder da So iologists. The riti is s of We er s thesis does ot set out to undermine Weber, but rather to offer further scope for taught of capitalist origins. Weber thesis provides the first comparative study of finding correlations between religious psychological effects and the acceleration of capitalism. His thesis has not been exasperated as his reference to Benjamin Franklin s phrase of ti e is o e in the context of embodying the motives of capitalism has seen other coined phrases sum up capitalist motives , such as ou ha e to spe ulate to a u ulate and ou ha e to spe d o e to ake o e . These phrases have found their way into the urban dictionary, and quoted on popular television programs such as 30 Rock. What is owed to Weber for his thesis is an acknowledgement of his immense ability to distinguish the aforementioned correlations even if it is a tad romantic.
BIBLIOGRAPHY
Allen, K. (2004), Max Weber; A Critical Introduction, first ed. Pub Pluto Press, London
Kalberg, S. (1996), On the Neglect of Weber's Protestant Ethic as a Theoretical Treatise, Vol. 14, No. 1. Pub American Sociology Association
Marx, K. & Engals, F. (1970), The German Ideology Volume 1, Chp The German Ideology And Historical Materialism, Volume 143 of New World Paperbacks, Pub International pu lisher s co.
Marx, K. (1906), Capital: A Critique of Political Economy, Vol. I. The Process of Capitalist
Production, Chp VIII The So Called Primitive Accumulation, fourth ed, pub Charles H. Kerr & Co, Chicago, USA.
Weber, M. (2013), The Protestant Ethic and The Spirit of Capitalism, Abridged ed. Pub Merchant Books.