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Text B Money and Ethic

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Max Weber

Pre-reading

Max Weber (April 1864-June 1920) was a German sociologist, philosopher, and political economist whose ideas profoundly influenced social theory and social research. He is known as a principal architect of modern social science along with Karl Marx and Emil Durkheim. Weber argued for the study of social action through interpretive means, rather than pure empiricism. His works focused on the processes of rationalization, secularization, and “disenchantment” that he associated with the rise of capitalism and modernity, and which he saw as the result of a new way of thinking about the world. The two theses of “rationalization” and the “Protestant Ethic” together helped launch Weber’s reputation as one of the founding theorists of modernity. His influence was far-reaching across the vast array of disciplinary, methodological, ideological and philosophical reflections that are still our own and increasingly more so.

The Protestant Ethic and the Spirit of Capitalism was published as two essays in 1904 and 1905, and were later collected together in 1919. Weber argued that it was not possible to construct a single comprehensive model of the origins of capitalism, but looked on these essays as providing insight into factors associated with the development of the capitalism system of organization. According to Weber, Calvinist ethic and ideas influenced the development of capitalism. He found that societies having more Protestants were those with a more highly developed capitalist economy. Similarly, in societies with different religions, most successful business leaders were Protestant.

Weber thus argued that the development of the calling quickly gave to the modern entrepreneur a fabulously clear conscience, and also industrious workers. Predestination also reduced agonizing over economic inequality and further. It meant that a material wealth could be taken as a sign of salvation in the afterlife. The believers thus justified pursuit of profit with religion, as instead of being fuelled by morally suspect greed or ambition. Their actions were motivated by a highly moral and respected philosophy. This Weber called the “spirit of capitalism”: it was the Protestant religious ideology that was behind — and inevitably led to — the capitalist economic system.