2. ‘Protestant Ethic and The Spirit of
Capitalism’ (1904-05)
German Text, translated into English (1930)
“To what extent do the religious conceptions of the
world influence the economic behaviour of various
societies?”
INTRODUCTION
Fundamental Question:
Max Weber (1864-1920)
A German Sociologist
Major Works:
1. The City (1912)
2. The Sociology of Religion (1922)
3. General Economic History (1923)
4. The Theory of Social and Economic
Organization (1925)
The Marx-Weber Debate : Class & Property
3. WHAT IS THE SPIRIT OF CAPITALISM?
Protestantism
Individual Religious Beliefs
Hell, Election, Calling
Existential
Anxiety
Honesty
Integrity
Frugality
Asceticism
Entrepreneurial/Work-related
Profit (Proof of Election, Calling)
Work Ethic
4. And the answer is - CALVINISM
A Man of Vocation
Luther’s Conception of ‘Calling’
Theory of Pre-destination & Worldly Asceticism
The idea of ‘elective affinity’
Ethical
Duty
Industrious
workmen
Stratification
5. “I’m not suggesting that Capitalism came out of Calvinism. All
what I’m suggesting, there has been an independent change in
theological teaching. It was a rationalization of religious thinking:
the loss of magic, the rationalism, the teaching of predestination.
And if this would not have happened, capitalist institutions would
not have been able to develop.”
Has the SPIRIT gone corrupt today?
“Modernity created an Iron Cage where we are actually working, because we are
forced to work very hard.”
Iron Cage: a. Excessive Rationality; b. Teleological; c. Automatic Entrapping
6. CRITICAL APPRAISAL
Capitalism in China
Structure of Chinese community
Structure of Chinese State
Nature of Chinese language
Confucianism
No status mobility, literati
culture, Work attitude, status
quo, no salvation
Taoism
No innovation; No conflict; rule
abiding; spiritual
7. Caste System (Ascribed Status)
Stratification with no Social Mobility
No Occupational Mobility
Doctrine of Reincarnation ( fatalistic)
Rule-abiding (No Innovation)
Salvation - main goal
Capitalism in
India
8. CAPITALISM TODAY
CSR – towards society and environment.
Can we have LSR ???
Creative Capitalism
Innovation-Demographic Dividend-Market AAA formula
Compassionate Capitalism
Capitalism-Socialism-Buddha’s compassion