Max Weber on Capitalism and Calvinism (1)

Weber’s thesis of the rise and the development of the modern capitalism can be found primarily in The Protestant Ethic and the Spirit of Capitalism, which was first published in 1904-1905 as a two part article in Archiv fur Sozialwissenschaft und Sozialpolitik (Archives for Social Science and Social Policy), of which Weber was one of the editors. The English translation by Talcott Parsons, which was taken from Weber’s Gesammelte Aufsatze zur Religionssoziologie (A Collected Essays on Sociology of Religion), and published in 1920-1921 just after his death, was first published in 1930 (Giddens 1978).This work is undeniably regarded as one of the most well-known and controversial works of modern social science in the twentieth century. It has provoked a critical debate and controversy since its first publication (On the debate on Weber’s thesis, see Hartmut Lehmann and Guenther Roth (eds). 1993. Weber’s Protestant Ethic:Origins, Evidence, Contexts. Cambridge: Cambridge University Press).

Attitudes to Economy and Religious Beliefs: Capitalism and Calvinism

In his study on the social structure of Germany, Weber found shortcomings in his country which resulted from a particular type of mentality. He felt that his country was left behind compared to other nations in the West with far more successful commercial activity. He concluded that economic success in England, America, Switzerland, France, the Netherlands, parts of Germany and other countries in central and northern Europe had a significant relationship with a Puritan or Calvinist tradition (Giddens 1990:124-127). Weber argued that this tradition provided ‘a dynamic faith eminently suited to the progress of modern world, the advance of the bourgeoisie, and the evolution of capitalism’ (Hamilton 2000:153).

Weber was interested in religion, particularly the relationship between religious beliefs and human attitudes to economics. He regarded religion a universal phenomenon that affected human mentality and behaviour, including economic behaviour. This interest brought Weber to study the world religions, starting with Christianity and proceeding to Confucianism, Taoism, Hinduism, Buddhism and Judaism. The main purpose of all his studies of the world religion was to uncover what he called ‘rationalism,’ an important characteristic that prevailed in the West (Hamilton 2000:153). Weber himself was a committed liberal Protestant and a participant of Protestant Social Congress who was inclined to overlook Lutheranism and Catholicism, and idealize Calvinism (Hamilton 2000: 152).

Weber intended his study in The Protestant Ethic and the Spirit of Capitalism not to examine the historical and economical causes of capitalism, but to find out a deeper cause that was inherent in western religious outlooks and was equally absent in eastern ones. According to Weber, modern western capitalism was the result of a particular development of Christianity: the Protestant Reformation (Weber 1973:8; Stark 2004:489). However, he distinguished it from medieval and eastern forms of ‘capitalist’ activities. The accumulation of wealth, the pursuit of gain and “the impulse of acquisition” existed and still exist in all societies and all times and all countries (Weber 1973:2-4). Modern western capitalism was very different from that, even from Jewish capitalism, which Weber called “pariah capitalism.” It was, as he had in mind, disciplined and rational, and associated with “the rational organization of formally free labour.” (Hamilton 2000:154).

To understand Weber’s description of the characteristic of modern capitalism, it is necessary to look at what he called “the ideal type of capitalist,” which was derived from Benjamin Franklin’s Advice to a Young Tradesman (Hamilton 2000:155). Weber stated that the ideal type of capitalist is a person who works hard to make profit, immediately invest or reinvest the profits into business, and avoids the accumulation and expenditure of wealth for its own sake. The ideal capitalist entrepreneur, Weber wrote, is person who

"Avoids ostentation and unnecessary expenditure, as well as conscious enjoyment of his power, and is embarrassed by the outward signs of the social recognition which he receives. His manner of life is…often… distinguished by certain ascetic tendency… He gets nothing out of his wealth for himself, except the irrational sense of having done his job well.” (Weber 1978:71).

Given this mentality had an ascetic element and spirit, Weber concluded that there was a connection between asceticism and capitalism (Bocock 2005:167; Hamilton 2000:155). However, he found that this type of asceticism was different from that of pre modern society. In the middle ages, the ascetics lived a separated life from the world in a monastic order. Their lives were devoted to fulfil duties imposed by God and serve as an intermediary between man and God. Great fortunes and financial profit were not sanctioned by the church. Weber called this “otherworldly asceticism.” (Hamilton 2000:155).

Weber claimed the ascetic-capitalist entrepreneurship could be traced to Calvinism, particularly the idea of calling, or “the divine vocation to pursue a particular path in the world where the duties imposed by God were to be fulfilled.”(Fullerton 1973:13-15; Hamilton 2000:156). Since the calling was “a fate to which he must submit and which he must make the best of” (Weber 1978:160), no one could be certain whether he is saved or damned or whether he is among the elect or reprobate. This resulted in a feeling of inner loneliness of the individual because he felt God was distant and unintelligible and was not certain he was saved or damned (Weber 1978:104; Fullerton 1973:16).

According to Weber, Calvinism provided an answer to this consequence that the election was recognizable and the individual could be certain of his destiny. One cannot be sure whether he is saved, but there are clues and signs indicate that he is saved and elected by God; success in life becomes a sign of divine approval (Weber 178:114-115; Stark 2004:490). Weber explained,

"In practice this means that God helps those who help themselves. Thus the Calvinists, as it is sometimes put, himself creates his own salvation, or, as would be more correct, the conviction of it. But this creation cannot, as in Catholicism, consist in a gradual accumulation of individual good works to one’s credit, but rather in a systematic self-control which at every moment stands before the inexorable alternative, chosen or damned" (Weber 1978:115).

In the middle ages, ascetics were required to have self control and discipline, but now every Christian, particularly a Calvinist, was expected to be characterized with these qualities. This eventually brought about what Weber called “inner-worldly asceticism” (Bocock 2005:168). Weber wrote that “the God of Calvinism demanded of his believers … a life of good works combined with a unified system” (Weber 1978:117).