What are the essential ingredients of the “spirit of capitalism” ?
1. Marx Weber’s famous work, The protestant Ethic and the Spirit of Capitalism was published close to his death. (He died in 1920). The book says that ascetic Protestantism fostered a spirit of modern capitlism marked by a ceaseless obligation to earn money and to reinvest profit.
2. The basic points called by Max Weber from Franklin’s writing to his pure type of spirit of the capitalis may be summarized as follows :
(i) Time is money
(ii) Credit is money
(iii) Money begets money. One should never misspend or keep idle even a single paisa.
(iv) One must be punctual in repaying the debt.The good pay master is lord of another man’s purse i.e., if a person pays his debts when they are due, they will always be able to borrow as much as they can.
(v) One should keep carefully accounts of his income and expenditure and it is should be in fully detail also.
(vi) One should always be known for prudence and industry. One should not spend time idly.
3. Spirit of modern Capitalism :
(?) Observance of above described six points or rules nurtures the spirit of modern capitalism.
(b) This spirit is “that attitude which seeks profit rationally and systematically”. It is a philosophy of ceaseless and rational pursuit of profit.
(c) Max Weber urged that the movement to a capitalist society was primarily caused by the habits, attitudes and beliefs of Protestanism, more specifically of Calvinism (i.e., Doctrines of John Calvin which were followed by a section of Protestant Christians); and most especially of English Puritanism.
(d) Puritans worked hard, methodically and rationally, in their callings i.e., tasks which are called to perform in the occupational world. In this way, they stored treasures.
(e) But the asceticism of Puritanism does not permit its followers to consume amassed treasure.
(f) Side by side their creed did not allow them to let their money lie idle.
(g) As a result, the puritans, invested, denied the flesh and produced a new economic order.
