The Protestant Ethic and The Protestant Ethic and the the

Spirit of CapitalismSpirit of Capitalism

I. Points covered in this I. Points covered in this lecture:lecture:

- ““Capitalism”: what is it?Capitalism”: what is it?- The “spirit” of capitalismThe “spirit” of capitalism- Economic “traditionalism”Economic “traditionalism”- Protestantism and capitalismProtestantism and capitalism

II. Summarizing II. Summarizing

What is ‘Capitalism’?What is ‘Capitalism’?

Profit-seekingProfit-seeking

GreedGreed

Money-makingMoney-making(Weber’s examples, pp. 20-1)(Weber’s examples, pp. 20-1)

The Spirit of The Spirit of ModernModern Capitalism ICapitalism I

1)1) Nations: Endless economic Nations: Endless economic growth growth

2)2) Individuals: Desire to become Individuals: Desire to become ever richer ever richer

3)3) Dedication to workDedication to work

The Spirit of Modern The Spirit of Modern Capitalism IICapitalism II

Acquisition of money is:Acquisition of money is:a)a)a ‘duty’ (Benjamin Franklin)a ‘duty’ (Benjamin Franklin)

b)b)an ‘end in itself’ (don’t squander an ‘end in itself’ (don’t squander money in consumption – ‘asceticism’)money in consumption – ‘asceticism’)

c)c) the ‘purpose of life’ and a the ‘purpose of life’ and a ‘systematic’ pursuit‘systematic’ pursuit

(Weber, pp. 14-17).(Weber, pp. 14-17).

The Spirit of Modern The Spirit of Modern Capitalism IIICapitalism III

‘‘[W]e provisionally employ the [W]e provisionally employ the phrase phrase spirit of spirit of modern modern capitalismcapitalism to refer to the particular frame of to refer to the particular frame of mind that … strives mind that … strives systematically and rationally systematically and rationally in a in a callingcalling for legitimate profit’ for legitimate profit’

((ibidibid., p. 27).., p. 27).

Economic Traditionalism Economic Traditionalism II

Workers:Workers:‘‘With a maximum of ease and a With a maximum of ease and a minimum of effort, how is the minimum of effort, how is the customary wage to be maintained?’ customary wage to be maintained?’

‘‘Traditional needs’Traditional needs’

Economic Traditionalism Economic Traditionalism IIII

Traditionalism amongst workersTraditionalism amongst workers

(pp. 22-5)(pp. 22-5)

Traditionalism amongst Traditionalism amongst capitalists (pp. 26-9)capitalists (pp. 26-9)

Whence the Spirit of Whence the Spirit of Capitalism?Capitalism?

Protestant Belief:Protestant Belief:1)1) ‘Calling’ (Martin Luther, 1483-‘Calling’ (Martin Luther, 1483-

1546)1546)(‘This-worldly’ vs. ‘other-worldly’ work)(‘This-worldly’ vs. ‘other-worldly’ work)

2) Predestination (John Calvin, 2) Predestination (John Calvin, 1509-64)1509-64)

The Legacy of The Legacy of ProtestantismProtestantism

The ‘steel-hard casing’ (‘iron The ‘steel-hard casing’ (‘iron cage’) – capitalism without cage’) – capitalism without religious girding religious girding

(pp. 18-19) (pp. 18-19)

Weber Weber contracontra Marx? Marx?

Marx’s ‘Preface’ (1859): Marx’s ‘Preface’ (1859):

‘‘It is not the consciousness of men that It is not the consciousness of men that determines their existence, but their determines their existence, but their social existence that determines their social existence that determines their consciousness’.consciousness’.

Weber (p. 19):Weber (p. 19): (religious) ideas (religious) ideas determine determine economic development economic development (?)(?)

Wood and WeberWood and Weber

Points of agreement:Points of agreement:a)a)Historical discontinuityHistorical discontinuity (modern (modern

capitalism vs. previous types of capitalism vs. previous types of ‘capitalism’ and non-capitalist ‘capitalism’ and non-capitalist societies)societies)

b)b)Origin and spread of capitalism Origin and spread of capitalism are distinctare distinct

Wood and Weber (cont.)Wood and Weber (cont.)

Points of disagreement:Points of disagreement:a)a)Location of capitalism’s originLocation of capitalism’s origin

b)b)Social class associated with the rise Social class associated with the rise of capitalism (partial agreement: of capitalism (partial agreement: which class was not heavily involved)which class was not heavily involved)

c)c)Role of (religious) ideas in Role of (religious) ideas in development of capitalismdevelopment of capitalism

Critique of WeberCritique of Weber

1)1) Evidence I (Franklin)Evidence I (Franklin)

2)2) Evidence II (Protestant theologians Evidence II (Protestant theologians and ministers)and ministers)

3)3) Evidence III (signs of salvation)Evidence III (signs of salvation)

4)4) Relationship between Protestantism Relationship between Protestantism and capitalism and capitalism

Word listWord list

p. 14: beget; p. 14: beget; p. 15: catechismp. 15: catechism

p. 16: avarice; proclivities; p. 16: avarice; proclivities; utilitarianutilitarian

p. 18: bland;p. 18: bland;p. 25: ostracismp. 25: ostracism

p. 33: turpitudep. 33: turpitude;; p. 31: harriedp. 31: harried

p. 56: synod;p. 56: synod; p. 57: wrathp. 57: wrath