Analysis of Max Weber's Theory of Capitalism

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Analysis of Max Weber's Theory of Capitalism

Max Weber’s original theory on the rise of Capitalism in Western Europe has been an often studied theory. In its relationship to Protestantism, specifically Calvinism, Weber’s theory has been in scholarly debate since it’s release in 1904. “The Protestant Ethic and the Spirit of Capitalism” puts forth not capitalism as an institute, but as the precursor to the historical origins of capitalism. Weber’s attempts to use statistical data, as well as church doctrine to prove his theory, has been the foundation for the main arena of debate amongst his peers.

Weber, although touching on other religions and countries, specifically focuses on the Reformation and its correlation to the dominance of capitalism in Western civilizations. He centers his work on the thesis ‘that the chances of overcoming traditionalism are greatest on account of the religious upbringing’, thus ‘it is worthwhile to ask how this connection of adaptability to capitalism with religious factors occurred in the early days of capitalism(1).’ This break with tradition could be attributed to the ‘calling’ as depicted in the Protestant faith. Weber believes Protestants saw the ‘calling’ as finally sanctifying the earning of a profit and as a sign of salvation. In this, he saw a breaking of the ‘backward-sloping supply curve’ for labor by instilling a new work ethic and the bringing forth of capitalistic values.

Amintore Fanfani in his critical work “Catholicism, Protestantism, and Capitalism” disagrees with Weber on the role Protestantism played in the development of capitalism. He argues that “Europe was acquainted with capitalism before the Protestant revolt” and thus “…we have ruled out that Protesta...

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...hat inconsistent, there will always be an idea before a movement, and until one man can be proven to be the founder of capitalism Weber’s thesis still stands.

Bibliography

(1)Anderson, Hughes, and Sharrock: Classic Disputes in Sociology. London: Unwin and Hyman, 1987.

(2)Green,Robert W.Protestantism and Capitalism: The Weber Thesis and Its Critiques. Boston: D.C. Heath and Company, 1959.

(3)Dickson, Tony and McLachlan, ”In Search of ‘The Spirit of Capitalism’: Weber’s Misinterpretation of Franklin,” Sociology, Vol.23, No.1 (81-89).

(4)Weber, Max: General Economic History. New Brunswick, NJ: Transaction, Inc., 1979.

(5)Weber, Max: The Protestant Ethic and the Spirit of Capitalism. New York: Charles Scribner’s Sons, 1958.

(6)Algazi, Gadi: Max Weber on Market Relations, Freedom and Coercion. Dept. of History, Tel Aviv University: WWW.Criticism.Com.

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