Introduction
Capitalism is a social system, both economic and political, where a country’s trade is owned and controlled by private organizations or individuals for profits while rationalization is a belief that actions should be based on knowledge and reasoning rather than traditions, emotions or other beliefs.
According to Weber, capitalism is defined as a common orientation in the shape of various mercantile operations in an effort to achieve maximum profit through economic exchange. It exists in many nations such as Babylon, China, Ancient Egypt, Mediaeval Europe, and India. Capitalism can either be regular or rationalized. Rationalized Capitalism comprises of a disciplined labor force that can set-up modern organizations that are productive in new environments while a regular capitalism involves continued investment and reinvestment allowing accumulation of wealth.
Weber’s Critiques of Western Rationalization
Weber further describes rationalization as a master of change especially in terms of the western legal systems. He disregarded all the traditional subject-boundaries by claiming that there was a co-relation between Calvinism and entrepreneurial attitudes, specific historic thesis, and entrepreneurial attitudes. He was particularly interested in the modern western society where he investigated the influence Puritanism had on the capitalistic activity in an effort to identify the impact of rationalization of culture in major civilizations.
He further composed anthropology and sociology details, economic history, and comparative religion to prove his point, and his work is supplemented by other individuals who embraced his analysis. These supporters have also tried to extend some elements of Weber’s work which has resulted in controversies.
In the doctrine of predestination, Weber disagrees with Calvin, who argues that some human beings are only chosen to be saved from damnation and that choice is predetermined by God. Unlike Weber who believes that faith and good work results in success, Calvin believes that success is a calling combined with a sober, industrious career. He further criticizes the reasoning that wealth is condemned if employed to support life of a self-indulging individual who prefers idle luxury.
Weber further criticized Hinduism by referring to it as other-worldly since it was directed at escaping the encumbrances of the world rather than leaning towards the mastery of that world. He viewed it as trying to escape the real materialistic world and believing in a non-existent world which was irrational and misleading. Even after the Indian trade and manufacture reached its peak, he still held onto the fact that their rituals were not capable of giving such economic and technical results.
In his study on world religions, Weber connected Puritanism to modern capitalization and identified other socio-economic factors other than religion which distinguished Europe from China and India. They include separation of any present productive enterprises from various households, existence of an inherited Roman law in Europe, development of a western city, development of a European book-keeping technique and eastern civilizations.
In addition, Weber criticized the works of R.H.Tawney and his fellow authors, in their publication ‘Economy and Society.’ He referred to it as valueless in some parts, and he suggested that Calvinism caused the development of modern capitalism. This raised a lot of criticism from different individuals and organizations who dismissed his claims.
Capitalism as an Iron Cage
The phrase “iron cage” was derived from Weber’s analysis of Protestantism while emphasizing the role of Puritan sects. It was linked to the influence that analysis had on modern capitalism. Capitalism is viewed as an iron cage because the business world has been converted into a profit-making arena where every business person is focused on making profits by whatever means without putting the worker’s concerns and safety into consideration.
Business ethics are no longer observed and employees are clearly placed on the losing end. This can be observed in Jacob Fugger’s situation where he refused to retire because he wanted to make as much money as he could while he still had the chance. He felt that he deserved to stay in business leaving no room for other young business people to develop and grow.
Capitalism is also an iron cage to happiness since most individuals are focused on making money while strictly avoiding any form of life enjoyment activity. Any thought of participating in a utility that requires spending the hard-earned money is deemed irrational. In the modern world, it is clear that money is no longer a means of satisfaction for man’s daily needs, and he or she is dominated by making money. Money is no longer a supplement to man’s life, but a complement, and also a dominant factor rather than being a subordinate. This reversal is viewed as naive and irrational by Benjamin Franklin.
It is clear that entrepreneurs, individuals, or laborers in capitalistic enterprises who refuse to adjust to the present day capitalism trends will soon get eliminated from the business world. Any individual involved in the system of market relationship is expected to adjust to all capitalistic rules of action or face being rendered jobless. On the other hand, any manufacturer who does not operate according to the set standards of operation risks to be eliminated from the economic scene.
Capitalism can be viewed as a cage in that some countries are left far less developed in comparison to other countries. This can be caused by the different types of profit-seekers in different nations i.e. New England had more profit-seekers than the other parts of America hence the reason it was more developed than the rest of the nation. It is surprising to note that North England was mainly composed of the middle class and craftsmen that drove their nation’s economy into development which depicts how materialist the less privileged population has become in an effort to cope with modern capitalism.
In conclusion, modern Capitalism has caused people and organizations to go to greater lengths in pursuit of their selfish interests which have resulted to them turning businessmen who operate in unscrupulous dealings as explained by Francis. These business men do not put the risks that might be incurred into consideration and work under an uncontrolled impulse. An example is the Dutch sea captain who had scorched all his sails but insisted on going through hell just so he could gain in the end.
Bibliography
Harriss, John. The second great transformation: Capitalism at the end of the 20th century. Oxford: Oxford University Press, 2010.
