In 1902, German economic historian Werner Sombart published ‘Der Moderne Kapitalismus.’ In his piece, he hypothesizes that there is such a thing as a “spirit of capitalism” a spirit which has worked as a guiding force in the evolution of modern capitalism (Green 1973). Werner does not offer any explanation as to what the nature of this spirit might be, or where it came from, but he does argue that this spirit is responsible for the development of capitalism in the modern world. After reading Werner’s work, German sociologist Max Weber, one of the founding creators of sociology, seized upon Werner’s idea and set out to explain the origins of this spirit of capitalism. Weber’s visit to America, the heart and soul of capitalism, in 1904 brought him his answer. While in America, Weber observes that matters of business are very closely related to religious affiliation. This attitude manifests itself in many ways, but one example he provides is the story of a man’s visit to the doctor: “the patient’s statement of his church membership was merely to say: ‘Don’t worry about the fees’ (Gerth & Mills 1946, 304).” This, of course, meant that this man was financially sound, because he belonged to a specific church community. Weber explains: “Admission to the congregation is recognized as an absolute guarantee of the moral qualities of a gentleman, especially of those qualities required in business matters (Gerth & Mills, 305).” Essentially, in order to become a part of a religious sect, a man must prove his ability to productively participate in society, ensuring that he will not be a financial burden to others. The close ties Weber observes between religion and business in America lead him to believe that the origin of the spirit of capitalism could be found in the religion of its founders: Protestantism. Weber, among others, notes that there is a profound difference in attitudes about money and money-making during the Modern Age and the Middle Ages. In the Middle Ages, merchants, tradesmen, and other self-made men were often despised by others, seen as being consumed by the sin of avarice. In the modern world, self-made men (Rockefeller, Carnegie) are held as examples of society, illustrating that money-making has become one of the highest accomplishments and the chief aim of civilization. Yet, Weber observes, this difference does not stem simply from a greater love of money, but from a new “ethos” of money-making. The root of this ethos? Religion. Weber notes that the great trading classes of the bourgeoisie have been chiefly found in the ranks of Protestantism. During the Middle Ages, the Catholic Church reigned supreme. This church painted the holy man as one completely free from the sins of this world, chief among them greed. This man had no possessions—he lived in poverty. In Catholicism the church acted as an intermediary between the people and God, and could absolve people from their sins to ensure their entry to heaven. In 1517, Martin Luther began a movement which, as Weber argues, would eventually lead to the birth of capitalism. Luther founded Protestantism, a form of Christianity in which there is no intermediary between believers and their God. According to Weber, this is important because it sets up individuality, something which plays an essential role in capitalism. Weber argues that Calvinism, a specific form of Protestantism, is most responsible for the emergence of modern capitalism. The Puritans who settled America, fleeing religious oppression in England, were largely Calvinists, and Weber points to this as what explains why capitalism began in America, as opposed to any other country. Calvinists believe in the concept of predestination, which contends that if God is indeed all-powerful, he already knows whether a person is destined for heaven or hell. Those destined for heaven, supposedly, will behave in a ‘godly way’. One behaving in this way is characterized by two things which Weber argues are paramount to the spirit of capitalism: the feeling of obligation in one’s vocation, and ‘asceticism’. While Catholics believed that living a secular life meant removing oneself from society altogether, Calvinists believed that living a secular life was achieved through living in society, as God accomplished things through people (Fullerton 1928). Weber explains that this led to a feeling of obligation to do one’s work and do it well, as those behaving in a godly way would work hard to accomplish God’s tasks. Seeking profit for its own sake as confirmation of one’s good works, according to Weber, became a duty to God. This profit, though, was not sought for the purpose of enjoying its fruits. Asceticism, or self-discipline, meant that a godly man lives a moderate life, and does not spend irresponsibly or exhibit any form of ostentation. This concept, Weber argues, creates the opportunity for greater investment, something which is important in fostering the growth of capitalism. Weber’s theory has been received with mixed reviews. Marxists, on the one hand, who believe that all human institutions, including religion, are economically based, would disagree with Weber’s contention that a religious movement fostered capitalism. Others in support of Weber look to the case of Africa, which has proven itself a difficult foothold for capitalism. Murove (2005) argues that post-colonial African traditional religion and ethics are incompatible with the spirit of capitalism, which explains why it has not developed there. Perhaps the most serious issue critics have raised is the fact that Weber does not consider any other capitalist besides the Puritan capitalist in his work, and therefore cannot have captured the true spirit of capitalism. They raise the argument that capitalists have existed throughout history, long before the start of Calvinism (Robertson 1933). Yet Weber does not set out to explain why some people throughout history were motivated to earn money just for the sake of earning money in spite of the values of their church and society at the time, but why modern capitalism came to be, and why it took hold in America over any other country. The emergence of capitalism as an economic system required a cultural change, and American Calvinism, as Weber paints it, is convincing as the catalyst that allowed this change to occur.

References:

Fullerton, Kemper. 1928. “Calvinism and Capitalism: An Explanation of the Weber Thesis.” The Harvard Theological Review 21:163-191.

Gerth, H. H. and C. Wright Mills. 1946. From Max Weber: Essays in Sociology. New York, NY: Oxford University Press.

Green, Robert. 1973. Protestantism, Capitalism, and Social Science: The Weber Thesis Controversy. Lexington, MA: D.C. Heath and Company.

Murove, Munyaradzi. 2005. “The Incarnation of Max Weber’s Protestant Ethic and the Spirit of Capitalism in Post-Colonial Sub-Saharan African Economic Discourse: The Quest for an African Economic Ethic.” Mankind Quarterly 45(4): 389-407.

Robertson, H.M. 1933. “A Criticism of Max Weber and His School.” From Aspects of the Rise of Economic Individualism. New York, NY: Cambridge University Press.