TAKE HOME EXAM 2

Weber (II) Capitalism, Rationalization and Ideas: Meaning and Domination© Meyer Kestnbaum, University of Maryland -- Sociology 203

Overview

I. From last time II. How can we sharpen the arguments from last time to help navigate TPE?

III. Why is the spirit of capitalism so important? IV. How did capitalism (and properly capitalist activity) originate? V. What are the consequences of capitalism for Weber?

Terms and concepts

Elective affinity

Meaning

Capitalist enterprise

Spirit of capitalism

Protestant ethic

Calvinism

Calling

Monastic asceticism

Worldly asceticism

Iron cage

Disenchantment

II. Sharpening the arguments from last time I. Two notions from last time are especially important for making sense of TPE

A. Rationalization/rationalism is arguably the key notion in Weber’s work, and central in TPE 1. It is the master process that characterizes the sweep and direction of social change for W

a) For now, we can think of in terms of methodical, continuous application--that is, people act in the world and pursue things methodically by continuous application or effort

b) Capitalism, as we noted last time, intensifies rationalization of economic life and more B. It is also a quality of culture -- of sets of ideas and understandings of the world

1. Rational culture is a part of rationalization, and it involves specifying and imposing method and system, formalizing -- what might be some examples? (religious doctrine, accounting, science…)

2. Accelerated by the influence of capitalism, it leads to the translation of more & more spheres of life into sets of knowable causes and effects, remov emotion, value, and what give significance

3. Weber calls emergence of aspects of rational culture that reduce the world into knowable sets of causes and effects disenchantment, in which “wonder” & meaning stripped from the world

II. Sharpening the arguments from last time I. → To better understand the way capitalism and rationalization are linked, we

need to focus closely on culture & the role of ideas in society A. Weber wants to understand how ideas become an effective force in history B. He develops an approach where he examines the historically specific elective affinity between

ideas, interests and ways of life 1. W focuses on concrete people as historical actors, who are bearers of ideas, and explores

what those ideas mean to those who carry them, and how those ideas shape their action 2. Example? (Religious believers such as Calvinists…)

C. Specific move: W looks at how systems of ideas -- by elaborating a particular definition of reality and meaning of the world -- help define the actual interests people feel driven to pursue

D. → two implications central to TPE: (i.) ideas shape people’s action through their impact on what people find significant; (ii.) this places the meanings people make/able to find at the center of the analysis of capitalism and of modern society

III. Significance of the spirit of capitalism I. Capitalism and its spirit (set of observable actions/org vs. ways of thinking)

A. From what we went through last class, we can summarize Weber’s understanding of modern western capitalism in one extraordinarily dense formulation, = 1. (a.) pursuit of profit by means continuous, methodical adjustment of revenues to expenses 2. (b.) resulting from exchange on a market (not force or mere speculation) 3. (c.) of what is produced by means of the rational capitalistic organization of formally free

labor (imp. since allows for predictable, calculable production, adjustment costs to earnings) B. What stands out here? Capitalism is the opposite of endless greed and hedonism; it is all about

restraint, methodical and careful application, or what Weber calls constant attention to the growth of capital as an end in itself 1. This requires continuous reinvestment rather than spending the fruits of exchange; frugality,

delay of gratification, denying yourself pleasures along the way, as well as careful accounting 2. → this is capitalism’s spirit, the animating set of orientations that guide a person’s action

III. Significance of the spirit of capitalism I. Weber distinguishes capitalism from its spirit to make a specific argument

A. Spirit of capitalism is captured brilliantly, Weber contends, in the writings of Ben Franklin 1. Examples from Poor Richard’s Almanac: stitch, penny...What else? (see next slide) 2. What can we draw from this? Industry vs. idleness...saving vs. enjoying...

a) Duty appears central in this: it’s an ethical duty to grow capital as end in itself, w/o relig. B. Orienting this way to ec. action can’t be assumed to be natural, as Smith does, nor can we propose

as Marx does that capitalistic adventurers form the basis of this kind of activity C. Instead, Weber asks two pointed questions:

1. Without some huge set of relationships presupposing and enforcing this kind of conduct, where does it come from? Why do some people act this way in the first place?

2. And we need to look at common folk, numerous, for whom this careful, methodical, dedicated behavior, practically and in the world, is not only intentional but specifically meaningful --activity that treats pursuit of gain as a form of duty, and deviation from it an ethical failing

D. Key to both? Specific meaningful religious beliefs and their distinctive rationalism

Some of Franklin’s aphorisms

I. Regarding effort (or application) and industry (or industriousness) A. A stitch in time saves nine B. Haste makes waste C. Little strokes fell big oaks D. If you have something to do tomorrow, do it today E. The way to be safe is never to be secure

II. Regarding money and business specifically A. A penny saved is a penny earned B. Beware of little expenses: little leaks sink big ships C. Industry pays debts while despair increases them D. Industry gives comfort, plenty and respect

IV. The origins of capitalism

I. Capitalism’s beginnings lie in the ethic of Calvinist Protestantism A. Background: Protestant reformation, historically: break from the Catholic Church, 1517 with

Luther’s 95 Theses, Reformation ends commonly 1648, gave rise not only to religious sects and sectional conflict, but also shifts relations religion/national government and led to war

B. Critical notion -- transformative impact of Protest. rooted in Luther’s understanding of the calling C. Unlike prevailing Catholic understandings of rel. believer’s actions in the world and her rel to God,

1. For Protestant, the only way of living acceptably was not to hide oneself away and surpass worldly morality (=monastic asceticism), but solely through fulfillment of the obligations imposed upon the individual by her or his position in the world

D. Fulfilling these obligations to God was his or her calling 1. → offered a moral justification for worldly activity--that is, activity on a day-to-day basis, in

the mundane, workaday world, as a part of everyday life (literally) 2. Orienting ethically in this way to action in the world -- Weber calls this *worldly asceticism*

IV. Explaining the origins of capitalism

I. The specific logic of the Protestant Ethic and the calling in Calvinism A. In Calvinism particularly we see this strong link between the believer’s careful attention to the world

he/she lived in, and her/his acceptance of life in this world as a religious task B. This sets up how Weber proceeds--to examine the historically specific way this Calvinist version of the

Protestant ethic is related to the spirit of capitalism (or, treating accumulation as an ethical duty)

II. How Weber argues we need to see this relationship A. W does NOT argue that religious reformers advanced the capitalist spirit (they did not say, “accumulate

of capital as end in itself”) B. Instead, religious ideas understood and advanced on religious grounds gave rise to ethical ideals among

believers and produced practical results, including how they did business as well as all else C. And by examining these unintended consequences of religious belief Weber is able to show how

particular religious ideas become an effective force in history

IV. Explaining the origins of capitalism

I. W’s arg about the unintended consequences of religious belief can be broken two large parts A. First piece--hinges on the logic of worldly asceticism itself B. W offers a detailed analysis of the practical ethics of ascetic branches of Protestantism, esp.

Calvinism C. Argues Calvinism gave rise (in a somewhat paradoxical way) to an ethos that stressed

comprehensive, orderly and compulsive organization of the whole of one’s life in pursuit of a calling 1. This ethos is what he calls worldly asceticism

D. To understand this, have to look at the relation among sets of religious beliefs and precepts--that is, the content of religious ideas--to see how they impact people’s lives

E. -->Q: For W, what were the core ideas and beliefs of Calvinism that had an impact of believers’ daily lives?

IV. Explaining the origins of capitalism I. Worldly asceticism -- How the content of religious ideas shapes people’s lives

A. Set of core beliefs 1. Doctrine of predestination 2. Notion of ‘the elect’

B. Results? Unprecedented inner loneliness...practical anxiety C. What’s going on here? What kind of argument is this?

1. Strong conviction about particular religious beliefs shapes how the believer understands themselves, their place in the world, and their relation to God as well as other people, IN ADDITION to what’s most important to them and how that is to be achieved

2. Looking at their world from the vantage point of a believer, we can see how that person would make sense of things, and puzzle through the personal and emotional impact on the believer of their beliefs, which together drive and guide their action

3. In pursuit what they hold dear, what means most to them, &gives them some sense are on path

IV. Explaining the origins of capitalism

I. Second piece--relationship between worldly asceticism, the accumulation of wealth, and the expansion of the spirit of capitalism A. Restless, continuous, systematic work in a worldly calling is demanded by God--And at the same time,

it is “the surest and most evident proof of rebirth and genuine faith” (p. 172), proof of an individual’s state of grace

B. Religious valuation of acting this way/proof of faith linked to gain how? 1. Gain not frowned upon, ethically 2. Pursuit of gain for its own sake is reprehensible 3. But attainment of it as fruit of one’s labor in calling surest sign of God’s blessing

C. → When limitation on consumption was combined with acquisitive activity undertaken in such a disciplined manner and driven by belief, we see accumulation of significant capital by people acting according to the spirit of capitalism, that is, through ascetic compulsion to attend to ever greater growth of capital as an ethical duty

V. How does capitalism (re)shape the world? I. Capitalism and its transformative impact

A. Believers pursuing calling, discipline themselves and embody spirit of capitalism in enterprise and accumulating wealth→ construction of set of arrangements and relationships, linking capitalist and wage laborer in production, where the capitalist dedicates him/herself to the pursuit of ever renewed accumulation as an end in itself through exchange of things produced by labor

B. Others who aren’t believers are forced to adopt similar ways of organizing and acting, if they hope to keep up in a competitive environment

II. Once built, however, things change: A. p. 181 and the iron cage: What does life in modern society look like? How have economic

concerns come to dominate? What is the role of compulsion? What is the place of meaning or meaningful action here?

B. And what of the place of ideals generally? P. 182 sensualists without spirit...mechanized petrifaction. This is how disenchantment plays out -- or may play out -- for Weber

V. How does capitalism reshape the world? I. Capitalism, the iron cage and disenchantment

A. Two major implications, both revolving around the role and place of ideas in history 1. This breaks the former tight relationship between meaningful systems of ideas and economic

activity a) What began as meaningful action for Calvinists now is sustained meaningless action for

most if not all, imposed from outside by the form of economy itself (modern capitalism) b) Structural pressure to pursue gain for its own sake is overwhelming, compelling capit’ists

2. Capitalist rationalism reduces everything to an instrumental relationship between means and ends, and elevates one end above all: the pursuit of gain. In the process, it a) Elevates other idea systems that try to explain the world in like ways (dominant thinking) b) Draws sense of wonder out of world, undercuts prospects of finding meaning (= disench)

B. → Q: How can we restate or clarify the relationship between capitalism, the iron cage and rationalization?

C. What are the prospects for the future, for us?

Weber 1-Minute paper

Go online, and answer the following two questions:

1. Looking around you in today’s world, where might we see distinction between people doing what they do because they find it personally meaningful vs. doing what they do because they feel they must or have no choice today? Give two examples. What might be ways you believe people can find (or even make) meaning in the world today?

2. What are 2 elements in Weber’s argument you still feel are muddy or unclear?