E plai a d a al se We er s Protesta t ethi theor as prese ted i the protesta t ethi a d spirit of capitalism. What are the strengths and weaknesses of this theory?
This essay will seek to explain and analyse Max We er s Protesta t Ethi a d the Spirit of Capitalis thesis. I doi g so, a thorough des riptio of We er s thesis
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offeri g a a al ses upo ea h poi t
ill dis uss We er s ie o Capitalism,
ade. Firstl this essa
hilst
and what it is. Focus will then shift to ards We er s theologi al e pla atio for the rise of modern capitalism. In which he describes The Protestant Reformation as an accelerating force of Capitalism. We er s theor offers a i sight i to the d amics of capitalism, but it is also open to scrutiny, of which focus will turn towards conflicting theories on capitalism and its origins, with particular attention focused on the writings of Karl Marx.
In his thesis The Protestant Ethic & The Spirit of Capitalism Max Weber describes capitalism as being the application of an ultra rational approach towards re e ed profit making , (Weber, 2013, pp. 116). He states this as the essence of capitalism, arguing that those who do not pursue renewed profit making through the systematic utilisation of capital (goods & services) for exchange value are doo ed to e ti tio . Weber argues how that increase of capital in exchange value for the purpose of profit making is rationally pursued through a series calculations, It makes no difference whether assets consist of machinery, cash, raw aterials, The important fact is always that a calculation of capital in terms of money is made, whether by modern book keeping methods or any other way (Weber, 2013 pp. 117). What is important about this method of utilising capital is the rational approach to it. Before every individual decision making, a dead al ulatio
is carried out to ensure the rationality
of the decision making process.
According to Weber these elements of Capitalism have existed elsewhere, such as India and China. What separates western capitalism from its earlier variants in India and China are found in the practice of book keeping and notion of accessible credit, the separation of business from the household and fundamentally the access to free labour. These variables were arguably virtually unknown on a grand scale to China and India, and only existed in