I. The Reproduction of Capitalism: Weber's "Iron Cage"

A. Predestination, "calling" ==> worldly asceticism as sign of grace
B. Other factors creating capitalism

1. the separation of economic activity from the household
2. cities and urban centers separate from rural areas
3. Roman law
4. nation-states
5. double-entry bookkeeping
6. the disintegration of feudal obligations which led to a free labor force

C. Calvinist belief in predestination and worldly asceticism as vital spark, made accumulation necessary and endowed pursuit of profit with moral and sacred character
D. Once capitalism emerges, it becomes self-perpetuating

1. Rationalization in bureaucratic structures reproduces modes of economic activity
2. Religious beliefs no longer necessary
3. Asceticism, thrift, and accumulation become secular virtues

E. Iron cage: "The Puritan wanted to work in a calling; we are forced to do so" (181)

1. We must have money
2. Our desire, love for money reproduces capitalism
3. We must live by the values and structures we have created

 

II. Assessing Weber

A. Attack on Marx's historical materialism

1. Marx: infrastructure creates superstructure
2. Weber: a particular worldview -- part of the superstructure -- provides impetus for people to develop infrastructure

B. Alienated Catholics: lack discipline, impediment to economic growth
C. Alienated Protestants: iron cage
D. Is Protestant ethic necessary for capitalism?

1. Critics: Japan has capitalism without Protestant ethic
2. Weber: Protestant ethic explains emergence of capitalism in one place at one particular time. After that, it spreads to places which don't have Protestant ethic

E. Giddens' assessment of Weber

1. Calling didn't originate with Luther, Calvin, or other Protestants. Calvinism is anti-capitalist
2. Catholicism wasn't anti-capitalist
3. Calvinists weren't necessarily more entrepreneurial than Catholics
4. Weber defined capitalism so it corresponded with Protestantism
5. Causality, chicken and egg problem

F. The appeal of Weber's logic

1. Religious interests shape concrete actions and social relationships, including economic behavior
2. We all have some degree of freedom of action, but our goals and values are given to us by culture
3. Capitalism inculcates a specific form of morality which justifies and reproduces our economic system

 

III. The God of Fortune in China

A. Weber suggests that capitalist morality is universal, inherent in capitalism
B. China: strong entrepreneurial spirit
C. Importance of money, gift at weddings, means to protect family
D. The God of Fortune, Wutong

1. First appears in written records in 11th century
2. With rise of monetized economy (15-17th c.), Wutong becomes demonic

a. Embodies greed and self-interest
b. Possesses women
c. Men sell wives to Wutong to get wealth

3. 18th century, Wutong becomes benevolent God of Fortune, protects shopkeepers, merchants, and families

E. Today: rise of capitalism

1. Taiwan: "amoral, individualistic, and grasping" cults of fortune (Weller 1994:141)
2. South China: disillusionment, human relationships being lost

F. Gods of Fortune helps people debate and manage economic uncertainty

 

IV. Weber and Marx Revisited

A. China: money is positive and negative
B. Religion doesn't sanctify money, it highlights its ambiguity
C. Broader lessons from China example

1. Money in non-capitalist or pre-capitalist societies is connected with morality
2. Capitalism can lead to crisis in moral values
3. Money doesn't have to be seen as morally good for capitalism to flourish
4. Money isn't inherently moral or immoral; its value isn't intrinsic to the institution of money or its functions
5. Religious discourses about money are most often ambivalent

D. Marx: infrastructure creates superstructure, economy leads to ideology which justifies ruling class interests
E. Weber: ideology provides catalyst for changing economic system
F. Interactive perspective

1. Internal, home-grown changes: ideology can provide a push (Weber)
2. External changes, forced and beyond people's control: ideology provides interpretive framework to make sense of change (Marx, but ideology isn't about mystification)

G. Money and the accumulation of wealth have no inherent morality
H. Money and wealth as universal lightning rods for creation and assessment of moral values

 

For more information, contact:  aleshkow@holycross.edu