The Protestant Ethic and Spirit of Capitalism - Essay Example

The Protestant Ethic and Spirit of Capitalism Different theories have been set forth on the original roots and factors which gave birth to our capitalism. Each theory has shown strong merits and has presented rich sources of discussion in both the economic and the academic world. This paper shall assess Weber’s argument that religious ideas were influential in the emergence of economic rationalization. It shall base its discussions of Weber’s works and on the works of other theorists and economic analysts. The theories of Max Weber in relation to the development of capitalism in the west revolve around the Protestant faith and the concepts of rational accounting, rational technology, rational law, and such other similar logical concepts. He relates religion and economy with each other in order to bring about capitalism in the West. He points out that ascetic Protestantism, which is seen in many nations in the West, emphasized on methodological and innovative religious rational behaviour. And this emphasis found its way into economic practices which set off secularization and the undermining of all types of religion. Weber’s analysis of capitalism and economics prompted him to study other major world religions in order to appraise their attitudes about the economy. Modern analysts point out how their studies of history during the early days of capitalism in the West have revealed the important role of religion, especially Protestantism in Capitalism. They cite Weber’s writings in the ‘Protestant Ethic and the Spirit of Capitalism’ as an important source of information about capitalism in the 18th to the 19th century. In his writings, Weber proposed that capitalism flourished in Europe because Protestantism is the religion that created a goal for the people, for them to limit their material consumption while still pursuing wealthy pursuits. Before capitalism made its way into Western society, there was a restraint on consumption which was invariably linked to asceticism and the condemnation of commercial pursuits. The dominant Catholic faith at that time labelled the pursuit of wealthy and economic enterprises as part of eventual profligate spending and consumerism (Calhoun & Gerteis, 2007, p. 1228). The Reformation that followed the strengthening of the Protestant faith veered away from traditional practices. Instead more frugal entrepreneurs came about; they reinvested their profits with the end goal of gaining more wealth; and with this new crop of eager investors who were less confined by their religious beliefs, capitalism in the West was off to a healthy start (Stark, 2005). During the 18th to 19th Century in Europe, there was a population boom. This population boom provided essential human capital to establish and bring forth development for the economy. The population boom in China at about the same time created an overflow of peasants who could not successfully contribute to the economy of the country. And as capitalism flourished in Europe during this time, and things went the opposite way for China (Weber & Swedberg, 1999, pp. 157-158). Religious ideas played a large role in the development of capitalism in Europe. In some parts of the world, like China, India, Rome, and Greece, the material conditions for capitalism already existed, however, these countries could not break through and develop capitalism. They could not “evolve visions compatible with dynamic economic system” (Stark, 2005). These countries denounced the pursuit of profits and they emphasized the importance of asceticism. And yet much of the nation’s wealth was unfairly extracted from the peasants and merchants by the elite and the powerful members of society. As for Europe, the Christian emphasis on rational theology helped turn things in favour of capitalism (Stark, 2005). Role of Protestantism in Capitalism There is strong merit in Weber’s argument that religious ideas played an important role in the emergence of capitalism. One definitive proof supporting Weber’s idea is the fact that nations which are dominantly of the Protestant faith have higher rates of employment as compared to nations which are largely Catholic, Islam, or Buddhists. This proof stems from a study of about 80 countries, including the USA, UK, and other less economically successful nations. This study further exemplifies how the Protestant work ethic has established successful economies and allowed women to be on equal working status as their male counterparts. And traditions of hard work in Protestant faiths have been passed on to younger generations who have continued and honoured this work ethic (Big News Day, 2007). It is also important to note how Catholics have been under-represented in German businesses and economic enterprises at the beginning of the 20th Century. Before the end of the 1800s, the taxable capital for Protestants rose to almost twice as great as the majority of the Catholics. Protestants were also involved in post-compulsory education, modern languages, maths, and science. The Protestants were more economically realistic, and so they did not venture into studies related to classics and traditional studies which would not be economically profitable for them in the future (Foreman-Peck, 2007, p. 3). The long hours of labour put in by the Protestants transmitted into increased income and productivity. Some theorists also point out that there is a big difference in the amount of holidays in the Protestant and the Catholic faith, with the Catholics having more holidays honouring various saints and religious traditions as compared to the Protestants. And while the Catholic was observing the traditions of his faith, the Protestant was working hard, earning money, and building the foundations of capitalism (Foreman-Peck, 2007, p. 3). Another proof of the strength of the Protestant ethic in capitalism is seen in the Netherlands. The conditions for the Industrial Revolution were set in place during the 18th century in the Netherlands and other parts of Western Europe. And such conditions were favourable for economic enterprise and the rise of capitalism. The free reign given by their Protestant faith as far as economic engagements were concerned became the foundations of capitalism in Western Europe. Lands were held as private property; labourers were proletarianized; property rights were guaranteed by the States; labour markets were regulated; and foreign trading privileges were sought for citizens and firms (Lachmann, 2000, p. 6). In Ireland, there were very few Roman Catholic elites. Guinness, one of the nation’s best known businesses was founded and run by Protestants, more particularly the Anglicans. And these Anglicans have managed to make their fortune in commerce, finance and food. Catholics were very much under-represented in Scotland, France and in the UK as far as business is concerned. An analysis of religions represented in these businesses in the UK have revealed that only about 2 of these businesses were run by Catholics, and about 199 were Protestant-run. This pattern is repeated in France (Foreman-Peck, 2007, p. 9). The concept of the ‘call’ was applied in the Protestant work ethic by considering that labour is a duty owed to God in order to gain favour in His eyes. And as seen among many Protestants, they lived a life of hard work – no matter the day and the hour. They did not indulge in luxurious excesses because their Puritanism called for such denials. We see the proof of Weber’s theories in the figures of per capita income posted by nations. In the 1970s, about 7 nations of largely Protestant faith posted higher per capita incomes than other nations of the world (De Long, 1989, p. 9). These figures cannot clearly be ignored. They demonstrate clear proof that Weber’s theories deserve our notice and respect. There is much credit to be given to the theory of the Puritans that they have a duty to the Lord to work; and the ability to work also implied one’s duty to work. This student is more inclined to believe this logic because hard work and labour can indeed bring about a more fruitful and productive day. Many wealthy businessmen and successful enterprises built their wealth on hard work and labour. The restrictions placed by one’s faith and religion on this duty are bound to deprive a person of valuable profits and wealth. They help bring credence to the theories set forth by Weber and by Calvin as they point out the dangers of idleness and sloth, and the benefits of making good use of one’s time (Cohen, 2002, pp. 35-45). In support of Weber’s claims, the Catholics in Germany offer stalwart proof that religion has a commanding impact on the rise of capitalism. Where the trend in the economic world has been the success of minorities, the opposite has been the trend for Roman Catholics in Germany. Minorities tend to be excluded in social and political circles because they have too few numbers to influence political machinations. And so these minorities usually lean towards business enterprises as an alternative means of making their mark in the world. Such has been the case for the Poles in Russia, the Huguenots in France, and the Jews scattered around the globe. But such has not been the case for Roman Catholics in Germany. “In the past they have, unlike the Protestants, undergone no particularly prominent economic development in the times when they were prosecuted or only tolerated, either in Holland or in England” (Weber & Parsons, 2003, p. 39). There is also a certain believability to Weber’s arguments because it is counterintuitive. It offers a statement and line of thought which may be unheard of and seemingly against common sense. And yet it offers a fresh perspective on things because many theorists before Weber’s time would not have equated religion with capitalism. Weber’s ideas also help make sense of why some people decide to live frugally in the face of their efforts in trying to accumulate wealth. Weber also cannot be faulted in his research because he did not intentionally seek out to establish the role of religion in capitalism; he only set out to establish the history of capitalism. In the process, he uncovered some facts that led him to formulate his theories. He drew parallelisms between Puritanism, religion, and capitalism because they were undeniable results that were revealed in the course of his research (Giddens & Griffiths, 2006, p. 105). Weber’s research and theories have set logical and factual accounts, and these accounts have been proven throughout various points in our history. The rationalisation process that Weber relates to capitalism and religion relies very much on the role of religion in directing economic progress and enterprise. Weber opines that different religious views have the effect of advancing or delaying the rationalisation process. Weber has two main views on this subject matter. First, he sets forth that a united religious world view would produce a rational outlook and consequently, rational behaviour would follow. Another belief is that different religious orientations in different parts of the world gave birth to different types of rational development in knowledge and art (Morrison, 2006, p. 282). He pointed out how China’s religious beliefs interfered with its economic enterprises because the country put a premium on magical thinking over and above universal realities. And for the West, its rational views and knowledge of astronomy helped it understand and overlook the implications of astrology and magic. He also cites how China’s religious beliefs interfered with its interpretation of natural events like earthquakes, typhoons, and even rain. The more scientific outlook of the West on these phenomena enabled them to make more rational interpretations and decisions (Morrison, 2006, p. 283). They made decisions based on reason and logic, and consequently, they flourished economically from their rational decisions. Works Cited Calhoun, C. & Gerteis, J., Classical Sociological Theory, Massachusetts: Blackwell Publishing Cohen, J., 2002, Protestantism and capitalism, New York: Walter de Gruyter De Long, J., March 1989, The Protestant Ethic Revisited: A Twentieth Century Look, Harvard University, viewed 21 July 2009 from http://econ161.berkeley.edu/pdf_files/Protestant_Ethic.pdf Foreman-Peck, J., 14 October 2007, The Protestant Ethic and the Rise of Capitalism Revisited. An abbreviated version of a talk given at the Ethical Society, London, Cardiff University, viewed 21 July 2009 from http://www.cardiff.ac.uk/carbs/faculty/foreman-peckj/protestant_ethic.pdf Giddens, A., & Griffiths, S., 2006, Sociology, Cambridge, UK: Polity Press Lachmann, R., 2000, Capitalists in Spite of Themselves, Oxford: Oxford University Press Morrison, K., 2006, Marx, Durkheim, Weber, California: SAGE Publishers. Protestant Nations Have Higher Employment, 1 October 2007, Big News Day, viewed 21 July 2009 from http://www.bignewsday.com/story.asp?code=OK142386F&news=protestant_nations_have_higher_employ Stark, R., 2 December 2005, How Christianity Led to Freedom, Capitalism, and the Success of the West, Independent.org., viewed 21 July 2009 from http://www.independent.org/newsroom/article.asp?id=1809 Swedberg, R., October, 1999, Max Weber as an Economist and as a Sociologist: Towards a Fuller Understanding of Webers View of Economics - Critical Essay, Find Articles, viewed 21 July 2009 from http://findarticles.com/p/articles/mi_m0254/is_4_58/ai_58496750/pg_12/ Weber, M. & Swedberg, R., 1999, Essays in economic sociology, New Jersey: Princeton University Press Weber, M. & Parsons, T., 2003, The Protestant Ethic and the Spirit of Capitalism, New York: Dover Publications Read More