Analysis of the Protestant Ethic and the Spirit of Capitalism by Max Weber - Book Report/Review Example

Max Weber and his book “The Protestant Ethic and the Spirit of Capitalism” Maximilian Weber, or Max Weber as he is better known, has beendescribed as being the founder of the modern study of sociology and public administration. He was born in Erfurt, Germany in an affluent and politically influential family, but spent his most formative years in his father’s home in Berlin. He was to complete is doctorate in law and a postdoctoral, prior to being appointed a professor of political economy at Freiberg University. He was later to work at the University of Heidelberg, University of Vienna and University of Munich. Max Weber was also to later serve as a consultant to the German Armistice Commission and the Commission responsible for the drafting of the Weimar Constitution. In 1904, Max Weber published his collection of essays entitled “The Protestant Ethic and the Spirit of Capitalism” in the journal “Archives for Social Science and Social Welfare”, of which he was an editor. This collection was later to become one of his most famous works that dealt with the impact of culture and religion on the development of economic systems. In the previously mentioned work, Max Weber describes how capitalism evolved from the Protestant work ethic particularly that of the Calvinist school of thought. This essay presents a brief biography of Max Weber and a discussion of his thoughts that are presented in his famous collection of essays entitled “The Protestant Ethic and the Spirit of Capitalism”. Contents Introduction 3 Max Weber’s Ideas presented in his Book “The Protestant Ethic and the Spirit of Capitalism” 5 Criticism of Max Weber’s Thesis and Reaction to his Book 9 Historical and Intellectual Influences that Help Explain Weber’s Book 11 Conclusion 12 Bibliography / References 13 Introduction Max Weber, the German sociologist and political economist was born on April 21, 1864 in Erfurt, Germany (The Rise of the West.Net, 2006, “Second Bibliography”). His real name was Maximilian Weber, but he has been rather well known as Max Weber. Max’s father was an aspiring liberal politician who was a pro-Bismarck "National-Liberal" who had become wealthy in the German linen industry and he was also appointed as a member of the Prussian House of Deputies (1868-97), as well as the Reichstag (1872-84). The Weber family moved from Erfurt to Berlin in 1868 and it was in Berlin that Weber’s father entertained prominent scholars and politicians, because of his political position in Germany. Max Weber’s mother, Helene Weber, was raised as a strict Calvinist and her upbringing must have influenced Max Weber in his younger years, because this influence certainly shows in his works, including the book “The Protestant Ethic and the Spirit of Capitalism”. Max Weber commenced his higher education at the University of Heidelberg in 1882, but his university education was interrupted after two years by his one year of military service at Strasbourg. During his year of military service, Max developed a certain attachment to the family of his mother’s sister Ida Baumgarten. Her husband was the historian Hermann Baumgarten who had a profound influence on Max Weber’s intellectual development. However, after the completion of his military service, Max Weber was asked by his father to study at the University of Berlin, so that he could live at home. He stayed at his father’s home in Berlin until his marriage to Marianne Schnitger, who was his second cousin, in 1893. In the eight years that Max Weber spent at his father’s home in Berlin, he was also to study at the University of Goettingen and also received further military training as a reservist in the German army. In 1886, Max Weber passed the German equivalent of the bar association examination, which is known as the “Referendar" (Wikipedia, 2006, “Life and Career”). During the late 1880s, Weber concentrated his efforts on the study of legal history and earned his law doctorate in 1889 by presenting a doctoral dissertation entitled “The History of Medieval Business”. Max Weber earned his post doctoral degree, or the "Habilitationsschrift" in law two years later by submitting a post – doctoral dissertation entitled “The Roman Agrarian History and its Significance for Public and Private Law”. By earning his post – doctoral, Max Weber had become a “Privatdozent" and was entitled to hold a German Professorship. Max Weber commenced his academic carrier at the University of Berlin and after a year, he was appointed a full professor of political economy at Freiberg University. A year later, he was appointed a full professor at the University of Heidelberg. He was later to work at the University of Vienna and University of Munich. Max Weber’s inaugural address at Freiberg University in 1895 was a devastating indictment of the ruling Junker aristocracy in which he discussed the agrarian problems of Germany east of the Elbe (The Rise of the West.Net, 2006, “Second Bibliography”). He had previously, in 1890, written a comprehensive analysis of the agrarian problems of Germany’s east for one of Germany’s most influential academic societies, the Union for Social Policy, along with essays on the German stock exchange and the decline of Latin social antiquity. After the First World War, Max Weber was to become a consultant to the German Armistice Commission at the Treaty of Versailles and he was also involved with the drafting of the Weimar Constitution (Wikipedia, 2006, “Life and Career”). Max Weber died of a lung infection on June 14, 1920 in Munich, Germany. Today, Max Weber is considered to be the founder of the modern study of socialism and public administration. Max Weber’s most valued contribution to the field of economics is his book “The Protestant Ethic and the Spirit of Capitalism”, which is based on a series of essays and which was originally written in German as “Die protestantische Ethik und der Geist des Kapitalismus”. This work attempts to present a study of how modern capitalism evolved as a result of the Protestant work ethic. In his series of essays, Max Weber attempts to study the impact of religion on modern economic conditions (SparkNotes, 2006, “Summary”). In this essay, Max Weber argues that it was the religious ideas of groups such as the Calvinists that were responsible for the creation of the capitalist spirit. Calvinism refers to the religious doctrine of John Calvin which emphasises the supremacy of the Scriptures, man’s sinfulness and predestination determined by God. This essay attempts to discuss Max Weber’s ideas that have presented in what is considered to be one of his most important works, “The Protestant Ethic and the Spirit of Capitalism”. The next part of the essay presents a discussion of the previously mentioned essay. Max Weber’s Ideas presented in his Book “The Protestant Ethic and the Spirit of Capitalism” In his essay “The Protestant Ethic and the Spirit of Capitalism”, Max Weber takes the view that religion can be instrumental in the creation of broader social values and social institutions (Spark Notes, 2006, Chapters 1 – 2). Weber ponders over why the Western civilization has been the only civilization in which certain cultural phenomenon has been developed to which universal value and significance is attempted to be attributed. For example, the development of trained officials and a bureaucracy was unique to the West and this notion about the development of social institutions was transferred to other cultures and civilizations as a result of contacts and conquests by Western nations. Max Weber also considers capitalism to be a distinct creation of the Western civilization and culture. Capitalism, according to Max Weber is not the pursuit of gain or the greatest profit, but rather it is the pursuit of forever – renewable profits. Max Weber defines the spirit of capitalism as being the rational pursuit of economic gain. In the Western societies, capitalist tendencies which are to be found in all men have been transformed into a way of life, with capitalist values being supported by social values and institutional values. Studies of different religion, including those from Asia and including the predominant religions of India and China, indicate that these religious doctrines did not result in the generation of concepts that were similar to modern capitalism (Engerman, 2000, Pp. 1). In fact, many of the more important religious philosophies of Asia, such as Confucianism, have a value system that does not sanction the generation of profit in trading and commerce, placing traders or business people to be below scholars, administrators and soldiers in the societal structure (Chan, 2004, Pp. 1). Max Weber presents the observation that in European countries with mixed faiths, most of the top business leaders, skilled professionals and successful workers are Protestants. Hence, Max Weber regards religion as having the power to create social and economic institutions within a society. According to Max Weber, striving for profits is not a natural human tendency that is to be found in all men and it is entirely possible for men to strive for subsistence, or for a traditional way of life. From practical observations, it can be seen that in those cultures from around the world where men has been contented with subsistence, little if any progress has been seen in the society. The Bushmen of Kalahari in Africa have only tried to subsist using what has been made available to them by nature, but they are now facing extinction as other groups and cultures with a “grabbing instinct” have tried to annihilate these people and grab their land. Thus, the broader values that are considered to be important in a society do have an influence in shaping the culture and social institutions that emerge from within a society. Max Weber traces the so called spirit of capitalism that has shaped Western thinking to the Calvinist theological philosophy and not to the protestant thinking of Martin Luther who, in 1517, had rebelled against the Catholic Church for its sale of indulgences. Indulgences were remissions granted by the Catholic Church against sins that had been committed by a baptized Christian. The rebellion against the Catholic Church assumed greater momentum over time and because of the availability of the printing press, Protestant ideas spread rapidly. Other individuals including Johann Tetzel, Philipp Melanchthon, John Calvin and John Knox etc also joined in the protest against the Catholic Church, but it was John Calvin’s theories that Max Weber considered to be more in line with the birth of the spirit of capitalism in the West (Wikipedia, 2006, “The Protestant Ethic and the Spirit of Capitalism”) and (Wikipedia, 2006, “Protestant Reformation”). The Protestant Reformation removed the assurances that a baptized Christian had of salvation, if they believed in the sacrament of the Church and the authority of its religious hierarchy. According to the Calvinist teachings, an individual was required to zealously pursue a vocation and this meant that the individual was distained to become economically successful. The earnings from such activities were not expected to be spent on luxuries of life and the giving of alms to the poor as this was not regarded with favor because being poor was associated with laziness or divine displeasure. Contributions to the Church were limited because the Protestants had rejected the Church’s icons. Thus, any savings from the hard work that a Protestant had performed was expected to be invested in activities that could provide certain enduring returns on the sums that had been invested and this, according to Max Weber, was the reason for the birth of the spirit of capitalism in the West. The idea behind the spirit of capitalism appears to be that each individual is responsible for his / her own rewards through their own hard work, just as they are responsible for any favors from God in exchange for their good deeds and everyone is expected to earn their wealth by working for it. If individuals are using someone else’s wealth, then they are expected to be paying them a compensation for such use and the owners of wealth have to choose carefully who they provide their wealth to. Thus, just as God judges individuals on the basis of their deeds and rewards or punishes, worldly activities too are rewarded on individual efforts without being able to be transferred to another without the permission of the individual who earned by putting in their hard work. The Catholic Church had encouraged monks, nuns and others to remove themselves from worldly activities, but the Protestants reject such attitudes, preferring instead that all individuals take part in worldly activities without turning away from them and seek God’s pleasure by working hard, diligently and with honesty. Calvinists were not expected to be monastic and they were expected to participate in the lives of their communities in order to fulfill God’s expectations from their lives. Thus, Max Weber has attempted to present Calvinism as the most rational philosophy that kindled the spirit of capitalism in Germany and other European nations (SparkNotes, 2006, Chapter 4). Max Weber has considered other forms of Protestantism, such as Pietism, as being less rational then Calvinism (Weber, 1905, Chapter 4). He considered these forms of Protestantism as being tainted with strong emotional elements, which Calvinism had rejected. Pietism required that an individual develop themselves in order to enhance their state of grace. In the Methodist tradition, the nature of the good works that an individual had performed was considered to be the only means of knowing one’s state of grace. Thus, the Methodist philosophy places an emphasis on the need to do good works, for God and the other individuals, with the result that this religious thought could not be considered as being purely profit oriented. The requirement for compassion and a duty towards other men and God had corrupted the pure spirit of capitalism in many a Protestant philosophy. The Baptists, Mennonites, and Quakers also rejected the worldly attractions in favor of guidance from the Holy Spirit. Thus, according to Max Weber, the most perfect theological philosophy that influenced and promoted the spirit of capitalism was the Calvinist philosophy, although other forms of Protestantism did subscribe to the spirit of capitalism to varying degrees. Max Weber considers the writings of Richard Baxter in concluding his arguments about the Protestant work ethic and the spirit of capitalism. Although Richard Baxter has considered the suspicion of wealth as being a temptation that can turn men away from God, Richard Baxter also considers idleness, relaxation, the wastage of time in useless pursuits and luxurious living as an impediment to righteous living. Hard work and toil have been prescribed by this author as the remedy for keeping away from sin. According to Richard Baxter, even those who are wealthy should labor continuously, because everyone has a calling and opportunities that are presented for profit are a part of this calling that are presented by God. Thus, based on Richard Baxter’s writings, Max Weber rejects the notion that men should only toil or labor in order to have their requirements satisfied. The Protestant work ethic, according to Max Weber’s thoughts that have been presented in his collection of essays, require that men should use their time judiciously in order to constantly serve their vocation and refrain from idleness or wasteful pursuits (Weber, 1905, Chapter 5). However, many readers may wonder as to how pure capitalism, which is a very brutal ideology, can be reconciled with Christianity and the compassion of Christ. Max Weber did not considered his views, presented in his essay, to be exhaustive. He accepted that a full explanation for the reasons why the capitalist system has become an accepted part of Western societies and how these societies have evolved requires that a study of historical development, the impact of a number of other forces and the systematic impact of religion in all areas of life should be carried out (Weber, 1905, Chapter 5). However, his work “The Protestant Ethic and the Spirit of Capitalism” is certainly a brilliant study of how religious thought can shape a society. A discussion about the criticisms of Max Weber’s book is presented in the next section. Criticism of Max Weber’s Thesis and Reaction to his Book Criticism that has been presented about Max Weber’s book includes the assertion that the data that Weber has presented about the success of the Protestants is in fact wrong and its source is contradicted in literature, that Max Weber’s interpretation of Protestantism was faulty and that Calvinism was in fact anti – capitalist. It is also mentioned that Max Weber did not adequately study Catholicism, with the result that his interpretation of its doctrine was flawed (Revision – Notes.Co.UK, 2006, Pp.1). Critics have also mentioned that capitalism did in fact exist in ancient times and hence the capitalist spirit was not a product of the Protestant ethic. Another criticism of Max Weber’s book that is often mentioned in literature is that it was not Calvinism that had resulted in the evolution of the capitalism, but that capitalism had in fact resulted in the development of the Calvinist philosophy in the Christian world. In her criticism of Max Weber’s “The Protestant Ethic and the Spirit of Capitalism”, Sandra Pierotti, (Pierotti, 1983, Pp.1), states that Max Weber’s interpretation of Benjamin Franklin, which was presented in his work, was in fact wrong because Franklin’s writings were in fact teaching how an individual can succeed in life and this indicated that the spirit of capitalism in fact did not exist. She further states that capitalism was in fact a growing force in Europe that had existed prior to the Reformation. Scholars have also stated that the Roman Catholic Church and the Protestant Church shared the same percepts in the 16th and the 17th century. Thus, any efforts by Max Weber to try and associate capitalism with the Protestant ethic were in fact flawed. It has also been asserted that Capitalism was in fact born in the Italian merchant states under the umbrella of Catholicism. In relation to Max Weber’s arguments about Calvinism being the cause for the birth of the capitalist spirit, it has been stated that Calvinism in fact did not extend a divine approval for earthly toil and also that neither Christianity, nor Calvinism have anything to do with mundane activities. Further criticism of Max Weber’s thinking states that it was Protestantism that had in fact adopted capitalism in order to provide an evidence for its success and not the other way around. Calvinism was thought to have a restrictive, rather then freeing effect on economic development. Thus a number of arguments have been presented against the thinking which Max Weber has presented in his book “The Protestant Ethic and the Spirit of Capitalism”. Despite the flaws, scholars generally agree that the thesis that has been presented by Max Weber still stands. Even the author had acknowledged that the thoughts that had been presented in his book were not exhaustive and a broader study was needed to better understand the development of capitalism in Europe. At the very least, Max Weber’s work was amongst the earliest attempts to try and understand the influence of religion on the development of a society and its institutions. The reality of the situation that existed in Europe did offer support to ideas that were presented by Max Weber and it was observed that Protestant countries did show a more robust economic growth then Catholic countries. A brief discussion about the historical and intellectual influences that have had an impact on Max Weber and his book is presented in the next section. Historical and Intellectual Influences that Help Explain Weber’s Book Max Weber was obviously influenced by the Calvinist teaching of his mother from a very early age and this may have caused him to have a certain bias for this religious philosophy (University of Regina, 1999, Sections 1 – 5). Such a bias obviously shows up in his book about the spirit of capitalism and Protestant ethic. In addition to his mother’s influence, Max Weber was also influenced by German politics and preferred liberal democracy with human freedom. During his time, Germany was ruled by the Junkers, who were aristocratic landowners with a loathing for capitalistic reforms and free trade in grain. Weber has been known to have criticized the Junkers in several of his works. He must have been aware of the political debates in Germany, because his father was a German politician, a member of Prussian House of Deputies and also a member of the Reichstag. He has also been said to have been influenced by Karl Marx, because it has been stated that Max Weber "spent his life having a posthumous dialogue with the ghost of Karl Marx”. He was also influenced by the complexity of the society and the difficulty of understanding society as a whole. Prior to the writing of his book “The Protestant Ethic and the Spirit of Capitalism”, Max Weber had been on a visit to the United States of America, where he must have seen the Protestant ethic and capitalism at work. Many of Weber’s writings have been influenced by a need to make sense of German politics in a country that had been torn between reaction and socialism. His home in Heidelberg was a meeting place for many German intellectuals. With a rise in the popularity of the Protestant philosophy in Europe, Max Weber’s keen interest in social economy and his visit to America, the right seeds had been provided for his book “The Protestant Ethic and the Spirit of Capitalism”. Conclusion In his work “The Protestant Ethics and the Spirit of Capitalism”, Max Weber presents an explanation for the emergence of capitalism in Germany and Europe as a result of the shaping of the society by Protestant, or to be more accurate, the Calvinist thinking. Although his brilliant work does provide insights into how religious thinking can influence the molding of societal culture and its institutions, even the author himself acknowledges that a far broader study will be required to better explain the emergence of capitalism in the Western and European nations. An interesting point to ponder about the emergence of the spirit of capitalism as a result of the Protestant ethic is how the compassion of Christ and Christian thinking may be applied to a purely capitalist way of thinking, because pure capitalism can be very brutal on the poor and the weak in the society. Bibliography / References 1. Allen, K. (2004). Max Weber: a critical introduction. London: Pluto Press. 2. Boucock, C. (2000). In the grip of freedom: law and modernity in Max Weber. Toronto; London: University of Toronto Press. 3. Breen, K. (2004). Negotiating the "Iron Cage”: Jürgen Habermas, Hannah Arendt, and Alasdair MacIntyre in response to Max Weber. 4. Chan, Jonathan. (2004). Confucian Business Ethics and the Nature of Business Decisions. University of St. Thomas. Referenced: May 12, 2004. Web site: http://www.stthom.edu/cbes/jonachan.html 5. Ekstrand, T. (2000). Max Weber in a theological perspective. Leuven, Belgium; Sterling, Va.: Peeters. 6. Engerman, Stanley L. (2000). Review of Max Weber The Protestant Ethic and the Spirit of Capitalism. Economic History Services. Retrieved: September 30, 2006. From: http://eh.net/bookreviews/library/engerman.shtml 7. Gane, N. (2002). Max Weber and postmodern theory: rationalisation versus re-enchantment. Basingstoke: Palgrave. 8. Harnsberger, R. S. (2002). 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(2001). Max Weber und rational choice. Marburg: Metropolis. 22. Otsuka, H. (1976). Max Weber on the spirit of capitalism. Tokyo: Institute of Developing Economies. 23. Parkin, F. (2002). Max Weber. (Rev. Ed.) London: Routledge. 24. Parsons, S. D. (2003). Money, time and rationality in Max Weber: Austrian connections. London: Routledge. 25. Pierotti, Sandra. (1983). The Protestant Ethic and the Spirit of Capitalism: Criticisms of Webers Thesis. Georgia Institute of Technology. Retrieved: October 2, 2006. From: http://www.ecs.gatech.edu/support/sandra/paper.html 26. Poggi, G. (1983). Calvinism and the capitalist spirit: Max Webers Protestant ethic. London: Macmillan. 27. Revision - Notes Co.UK. (2003). Criticisms of the Protestant Ethic and the Spirit of Capitalism. Revision – Notes Co. UK. Retrieved: October 2, 2006. From: http://www.revision-notes.co.uk/revision/1021.html 28. Ringer, F. K. (2004). Max Weber: an intellectual biography. Chicago; London: University of Chicago Press. 29. 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