Protestant Ethic and the Spirit of Capitalism. Summary

German sociologist and economist Max Weber (1864-1920) published his most famous work, The Protestant Ethic and the Spirit of Capitalism, in 1904-1905. Weber's writings and theories helped establish the foundations of modern sociology. The Protestant Ethic and the Spirit of Capitalism argues that the "spirit" that defines capitalist institutions has its roots in the Protestant Reformation. The Reformation was a sixteenth-century religious movement that led to the creation of Protestantism, beginning with the protests of Martin Luther against the Catholic Church in 1517. Luther argued that people could be saved through faith alone, and this doctrine is one of the basic tenets of Lutheranism. Another Protestant religion that figures prominently in The Protestant Ethic and the Spirit of Capitalism is Calvinism. Rooted in the ideas of John Calvin, Calvinism was based on the doctrine of predestination--that individual salvation was preordained by God. Calvinism is an ancestor of modern-day Presbyterianism.

To illustrate the connection between money-making and ethics, Weber quotes Benjamin Franklin:

“Time is money. He that can earn ten shillings a day by his labor, and goes abroad, or sits idle, one half of that day, though he spends but sixpence during his diversion or idleness, ought not to reckon that the only expense; he has really spent, or rather thrown away, five shillings besides.[...]Remember, that money is the prolific, generating nature. Money can beget money, and its offspring can beget more, and so on. Five shillings turned is six, turned again is seven and threepence, and so on, till it becomes a hundred pounds.”

Weber notes that this is not a philosophy of mere greed, but a statement laden with moral language. Indeed, Franklin claims that God revealed the usefulness of virtue to him.^[5]2

The Reformation profoundly affected the view of work, dignifying even the most mundane professions as adding to the common good and thus blessed by God, as much as any "sacred" calling. A common illustration is that of a cobbler, hunched over his work, who devotes his entire effort to the praise of God.It is particularly advantageous in technical occupations for workers to be extremely devoted to their craft.

Weber shows that certain branches of Protestantism had supported worldly activities dedicated to economic gain, seeing them as endowed with moral and spiritual significance. This recognition was not a goal in itself; rather they were a byproduct of other doctrines of faith that encouraged planning, hard work and self-denial in the pursuit of worldly riches.^[6]:57

Origins of the Protestant work ethic[edit]

Weber traced the origins of the Protestant ethic to the Reformation, though he acknowledged some respect for secular everyday labor as early as the Middle Ages.^[5]:28 The Roman Catholic Church assured salvation to individuals who accepted the church's sacraments and submitted to the clerical authority. However, the Reformation had effectively removed such assurances. From a psychological viewpoint, the average person had difficulty adjusting to this new worldview, and only the most devout believers or "religious geniuses" within Protestantism, such as Martin Luther, were able to make this adjustment, according to Weber.

In the absence of such assurances from religious authority, Weber argued that Protestants began to look for other "signs" that they were saved. Calvin and his followers taught a doctrine of double predestination, in which from the beginning God chose some people for salvation and others for damnation. The inability to influence one's own salvation presented a very difficult problem for Calvin's followers. It became an absolute duty to believe that one was chosen for salvation, and to dispel any doubt about that: lack of self-confidence was evidence of insufficient faith and a sign of damnation. So, self-confidence took the place of priestly assurance of God's grace.

What Weber argued, in simple terms:

· According to the new Protestant religions, an individual was religiously compelled to follow a secular vocation (German: Beruf) with as much zeal as possible. A person living according to this world view was more likely to accumulate money.

· The new religions (in particular, Calvinism and other more austere Protestant sects) effectively forbade wastefully using hard earned money and identified the purchase of luxuries as a sin. Donations to an individual's church or congregation were limited due to the rejection by certain Protestant sects of icons. Finally, donation of money to the poor or to charity was generally frowned on as it was seen as furthering beggary.

The manner in which this paradox was resolved, Weber argued, was the investment of this money, which gave an extreme boost to nascent capitalism.

Weber maintained that while Puritan religious ideas had significantly impacted the development of economic system in Europe and United States, there were other factors in play, as well. They included a closer relationship between mathematics and observation, the enhanced value of scholarship, rational systematization of government administration, and an increase in entrepreneurship ventures.