Cultural Foundations of Western Capitalism
Abstract
Capitalism is undoubtedly one of the most prevalent and successful systems of resource allocation which has existed throughout history. Because it has evolved over a period of centuries, and has experienced a long and tempestuous formation, it is interesting to examine the early foundations of this organization which has dictated societal and political agendas, reflected the preferences of the society it serves, and
has contributed to, and changed, that same culture to accommodate its needs.
The most important institution to influence and spread. Capitalism was the Protestant movement and the early Reformation. The Reformation became the voice of Capitalism
and served to legitimize and sanctify it, making it a popular and ethical establishment. Because of the Roman Catholic doctrine and campaign against usury, trade for profit and bourgeois lifestyles were discouraged and forbidden. Wealthy
merchants and traders, to whom the Roman faith did not
necessarily apply, were prohibited from trading and increasing
their revenues by the dictates of the Church and were
threatened by a nobility supported by the Catholic Church.
When Martin Luther posted his theses of change to the door of
his Catholic parish, he unknowingly began a revolution of
various sorts and results.
The Middle Class, long pressed beneath the slow wheels
of Roman Catholic progress, rallied at the opportunity to break
free from Roman oppression and began to express themselves
financially and politically for the first time. In rapid succession
they accepted the Reformed religions which arose because of
Luther's Reformation. Protestantism supplied the merchant
class, rejected as sinful by Roman Catholic doctrine, with an
ethic and an ethos for their profit-making activities. The
Bourgeoisie and the Protestant Faith were mutually
interdependent: The merchants sustained the growing
Protestant institutions by adding membership and resources to
their cause; while Protestantism contributed to the middle class
by giving it an ethic and sanctification to practice
Capitalism. Therefore Protestantism and Capitalism were
quickly and thoroughly spread because of the drive for profit.
North American Protestantism and Capitalism found
different modes of expression, and the agendas which had been
created to serve their earlier European roots changed to reflect
interests present in the New World. The Puritan ethics were
undeniably the most prominent influences on early American
economics and politics; but as the impulse to increase profit
expanded, the earlier foundations of ethics were abandoned in
exchange for a free hand in marketing and profit.
The ethical system which had dominated Capitalism
before, was replaced by a business ethic which comprised
fewer elements of Protestantism; rather consisted of financial
considerations and profit motives. This is to say that
Capitalism, which had previously coexisted with Protestantism,
in essence took over and became the primary concern for the
middle class. Abandoning Protestant ideals for a healthier
bottom line led to an overall change in the society which
thrived on Capitalistic endeavors. The result of this was that a
capitalistic monster was created which has consequently
turned its back on its early Protestant foundations and become
an ethos of its own.
The foundations of Capitalism are rooted and steeped in a
long culture of oppression and subsequent freedom. The
contributions of Roman Catholic and Protestant culture on the
capitalistic system were important motivations and sways on
its formation and spread. Even greater are the contributions
which Capitalism has had on modern society. It is obvious that
there is an intrinsic link between culture and Capitalism which
is both interesting and necessary to explore.