The questions of what is capitalism and how did it arise have been of central concern to Western economists and sociologists since the 1840s. At that time, commentators began to recognize that a fundamentally new economic and social order – with the expansion of machines in manufacturing and changes in the character and composition of social classes – was emerging. Among the most influential of these commentators were Marx and Engels, who sought to explain the processes of this new system and to explain its emergence as part of a larger historical narrative. The emergence of capitalism, according to Marx, could be explained by a process of class competition whereby the contemporary period was distinguished by domination of the bourgeoisie, who used their power to further their economic interests. Marx embedded this analysis in his theory of an historical dialectic, the competition of opposites, primarily driven by material factors. For Marxists, political, social, and cultural arrangements and views are derivative of economic and material realities. The political and ideational composed a “superstructure” which emerged only after, or were created by, capitalist economic practices and relationships
[...] Overall consumption would likely go down, and the desire and imperative for economic growth would diminish as improving material wealth would no longer be a priority. Identifying how Mitchellism might impact the economy is not the same as saying that it will, however. Just as Calvinism and the capitalist spirit in their infancy, such a spirituality would likely be rejected by the vast majority of people at first. Unlike the capitalist spirit, however, Mitchellism would not impose economic imperatives on non-believers to adopt a Mitchellist set of behaviors. [...]
[...] That this ethos the capitalist spirit gave birth to a full-fledged social and economic system does not follow simply from its emergence as a coherent spirituality. Weber, again emphasizing the historically highly unexpected development of this system, argues that this ethos struggled to emerge and justify itself against the more traditional ideologies and the almost universal scorn heaped upon those who pursue endless accumulation. This ideology only came to dominance thanks in part to other external events to which it at best tangentially if at all contributed to. [...]
[...] “Unlimited greed for gain is not in the least identical with capitalism, and is still less its spirit But capitalism is identical with the pursuit of profit, and forever renewed profit, by means of continuous, rational, capitalistic enterprise.[2]” If the natural human desire for wealth profit for personal gain is not the motive for capitalist enterprise, what is? Weber finds the answer and the ethic of his ideal capitalist in the advice of Benjamin Franklin. Franklin's virtues, Weber says, makes profit a virtue all its own. [...]
[...] In the labor market, a relatively unconcerned Mitchellist would be chosen long after the highly self-motivated and exploitable capitalist worker. In the consumer market, as Mitchellists consumed fewer luxuries it reduces the prices for everyone else making it easier to indulge their material desires. Here we see the Iron Cage Weber referred to. Despite its lack of spiritual content and dubious utility, the capitalist system (unstable equilibrium that it is) denies the ability for an alternative set of behaviors and economic motives from spreading effectively. [...]
[...] Is there no way to prevent this–this continual decay of pure religion?[7] Herein lies the rub those places where something akin to a capitalist spirit may have arisen quickly burnt out through the rejection of the vast majority and the natural decay of its own virtue. Only in the West did a confluence of factors give rise to a feedback through the market economy which made this behavior self-fulfilling. Now, as it spreads further into new countries and industries, the capitalist spirit imposes the same pressures that have so far propelled its spread. [...]
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