AUTHOR'S INTRODUCTION A PRODUCT of modern European civilization, studying any problem of universal history, is bound to ask him- self to ^hat ^combination of circumstances the fact should be attributed that in Western civilization, and in Western civilization only, cultural phenomena have appeared which(äs we like to think) lie in a line~of development having^ universal significance and value.
Only in the West does science exist at a stage of development which we recognize to-day as valid. Knrpiriral knowledge, reflection on problems of the cosmos and of life, philosophical and theological wisdom of the most profound sort, are not confined to it. thougiTm the case of Ihe last the full development of a_§ystematic theology must be credited to Christianity under the influence of Hellenism, since there were only fragments m Islam and in a few Indian sects. In short, knowledge and observation of great refinement have existed elsewhere, above all in India, China, Babylonia, Egypt. But in Babylonia and elsewhere astronomy lacked — ^which makes its development all the more astounding — ^the mathematical foundation which it first received from the Greeks. The Indian geometry had no rational proof; that was another product of the Greek intellect, also the creator of mechanics and physics. The Indian natural sciences, though well developed in observation, lacked the method of experiment, which was, apart from begin- nings in antiquity, essentially a product of the Renaissance, as was the modern laboratory. Hence medicine, especially in India, though highly developed 13 The Protestant Ethic and the Spirit of Capitalism in empirical technique, lacked a biological and par- ticularly a biochemical foundation. A rational chemistry has been absent from all areas of culture except the West.
The highly developed historical scholarship of China did not have the method of Thucydides. Machiavelli, it is true, had predecessors in India; but all Indian political thought was lacking in a systematic method comparable to that of Aristotle, and, indeed, in the possession of rational concepts. Not all the anticipa- tions in India (School of Mimamsa), nor the extensive codification especially in the Near East, nor all the Indian and other books of law, had the strictly syste- matic forms of thought, so essential to a rational juris- prudence, of the Roman law and of the Western law under its influence. A structure like the canon law is known only to the West.
A similar statement is true of art. The musical ear of other peoples has probably been even more sensi- tively developed than our own, certainly not less so. Polyphonic music of various kinds has been widely distributed over the earth. The co-operation of a number of instruments and also the singing of parts have existed elsewhere. All our rational tone intervals have been known and calculated. But rational har- monious music, both counterpoint and harmony, formation of the tone material on the basis of three triads with the harmonic third; our chromatics and enharmonics, not interpreted in terms of space, but, since the Renaissance, of harmony; our orchestra, with its string quartet as a nucleus, and the organization of ensembles of wind instruments; our bass accompani- 14 Author's Introduction ment; our system of notation, which has made possible the composition and production of modem musical works, and thus their very survival; our sonatas, symphonies, operas; and finally, as means to all these, our fundamental instruments, the organ, piano, violin, etc.; all these things are known only in the Occident, although programme music, tone poetry, alteration of tones and chromatics, have existed in various musical traditions as means of expression.
In architecture, pointed arches have been used else- where as a means of decoration, in antiquity and in Asia; presumably the combination of pointed arch and cross-arched vault was not unknown in the Orient. But the rational use of the Gothic vault as a means of distributing pressure and of roofing spaces of all forms, and above all as the constructive principle of great monumental buildings and the foundation of a style extending to sculpture and painting, such as that created by our Middle Ages, does not occur elsewhere. The technical basis of our architecture came from the Orient. But the Orient lacked that solution of the problem of the dome and that type of classic rational- ization of all art — in painting by the rational utilization of lines and spatial perspective — which the Renaissance created for us. There was printing in China. But a printed literature, designed only for print and only possible through it, and, above all, the Press and periodicals, have appeared only in the Occident. Institutions of higher education of all possible types,, even some superficially similar to our universities, or at least academies, have existed (China, Islam). But a rational, systematic, and specialized pursuit of science, ^ IS ^ IS The Protestant Ethic and the Spirit of Capitalism with trained and specialized personnel, has^ only existed in the West in a sense at all approaching its present dominant place in our culture. Above all is this true of the trained official, the pillar of both the modern State and of the economic life- of the West. He forms a type of which there have heretofore only been suggestions, which have never remotely ap- proached its present importance for the social order. Of course the official, even the specialized official, is a very old constituent of the most various societies. But no country and no age has ever experienced, in the same sense as the modern Occident, the absolute and complete dependence of its whole existence, of the political, technical, and economic conditions of its life, on a specially trained organization of officials. The most important functions of the everyday life of society have come to be in the hands of technically, commercially, and above all legally trained govern- ment officials.
Organization of political and social groups in feudal classes has been common. But even the feudal^ state of rex et regnum in the Western sense has only been known to our culture. Even more are parliaments of periodically elected representatives, with government by demagogues and party leaders as ministers respon- sible to the parliaments, peculiar to us, although there have, of course, been parties, in the sense of organiza- tions for exerting influence and gaining control of political power, all over the world. In fact, the State itself, in the sense of a political association with a ra tional, written constitution, rationally ordained law, anvd an administration bound to rational rules or laws, i6' Introduction administered by trained officials, is known, in this combination of characteristics, only in the Occident, despite all other approaches to it.
^And the same is true of the most fateful force in our nioaern life, capitalism. The impulse to arqnisitinn,, pursuit_of gain, of money, of the, grpatpst pngsjhlp amount "f money^ has in itself nothing to do with capitalismj^his impulse exists and has existed among waiters, physicians, coachmen, artists, prostitutes, dis- honest officials, soldiers, nobles, crusaders, gamblers, ^ and beggars. One may say that it has been common to ■^' all sorts and conditions of men at all times f^pH \n nÜ '^^ cniintries nf the f^arth, whprf^vpr thf^ nKj^Ptlye possi- bility ^f it jp or has b^^n givfn It^should be taught in the kindergarten of cultural history that this naive id^a oTcäpitalism must be given up once and for all. Un- limited jgreed for gain is not in the least identical with capitalismj?inH i« still less its spirit- Papitplism mny even be identical with thp r^Qt-ramtj nr at |pQgt ^ rM\^^?\ tempering^ of this irrational impulse. \But capitalism i^ /^ identical with the pursuit of profit, and forever renewed\ profit, by means of continuous, rational, capitalistic eaterprisei-For it must be so: in a wholly capitalistic order of society, an individual capitalistic enterprise which did not take advantage of its opportunities for profit-making would be doomed to extinction. ( Let us now define our terms sornewhat_more care.- fully than is generally done. We will define a capitalistic economic flrtinn~äR~nnp"whirh rests on the expectation of profit by the utilization of opportunities for exchange, that is on (formally) peaceful chances of profit. Acqui- sition by force (formally and actually) follows its own 17 The Protestant Ethic and the Spirit of Capitalism particular laws, and it is not expedient, however little one can forbid this, to place it in the same category with action which is, in the last analysis, oriented to profits from exchange. ^ Where capitalistic acquisition is rationally pursued, the corresponding action is adjusted to calculations in terms of capital. This means that the action is adapted to a systematic utilization of goods or personal services as means of acquisition in such a way that, at the close of a business period, the balance of the enterprise in money assets (or, in the case of a continuous enterprise, the periodically estimated money value of assets) exceeds the capital, i.e. the estimated value of the material "^eans of production used for acquisition in exchange. It makes no difference whether it involves a quantity of goods entrusted in natura to a travelling merchant, the proceeds of which may consist in other goods in natura acquired by trade, or whether it involves a manufacturing enterprise, the assets of which consist of buildings, machinery, cash, raw materials, partly and wholly manufactured goods, which are balanced against liabilities. The important fact is always that a calculation of capital in terms of money is made, whether by modern book-keeping methods or in any other way, however primitive and crude. Everything is done in terms of balances: at the beginning of the enterprise an initial balance, before every individual decision a calculation to ascertain its probable profit- ableness, and at the end a final balance to ascertain how much profit has been made. For instance, the initial balances of a commenda ^ transaction would determine an agreed money value of the assets put into i8 Introduction it (so far as they were not in money form already), and a final balance would form the estimate on which to base the distribution of profit and loss at the end. So far as the transactions are rational, calculation under- lies every smgle action oi the partners. 1 hat a really accurate calculation or estimate may not exist, that the procedure is pure guess-work, or simply traditional and conventional, happens even to-day in every form of capitalistic enterprise where the circumstances do not demand strict accuracy. But these are points affecting only the degree of rationality of capitalistic acquisition.
For the purpose of this conception all that matters is that an actual adaptation of economic action to a com- parison of money income with money expenses takes place, no matter how primitive the form. Now in this sense capitalism^ and capitalistic enterprises, even with a considerable rationalization of capitalistic calcu- lation, have existed in all civilized countries of the earth, so far as economic documents permit us to judge. In China, India, Babylon, Egypt, Mediterranean antiquity, and the Middle Ages, as well as in modem times. These were not merely isolated ventures, but economic enterprises which were entirely dependent on the continual renewal of capitalistic undertakings, and even continuous operations. However, trade espe- cially was for a long time not continuous like our own, but consisted essentially in a series of individual undertakings. Only gradually did the activities of even the large merchants acquire an inner cohesion (with branch organizations, etc.). In any case, the capitalistic enterprise and the capitalistic entrepreneur, not only 19 The Protestant Ethic and the Spirit of Capitalism as occasional but as regular entrepreneurs, are very old and were very widespread.
Now, however, the Occident has developed capital- ism both to a quantitative extent, and (carrying this quantitative development) in types, forms, and direc- tions which have never existed elsewhere. All over the world there have been merchants, wholesale and retail, local and engaged in foreign trade. Loans of all kinds have been made, and there have been banks with the most various functions, at least comparable to ours of, say, the sixteenth century. Sea loans,* commenda^ and transactions and associations similar to the Kom- manditgesellschaft y^ have all been widespread, even as continuous businesses. Whenever money finances of public bodies have existed, money- lenders have ap- peared, as in Babylon, Hellas, India, China, Rome. They have financed wars and piracy, contracts and building operations of all sorts. In overseas policy they have functioned as colonial entrepreneurs, as planters with slaves, or directly or indirectly forced labour, and have farmed domains, offices, and, above all, taxes. They have financed party leaders in elections and condottieri in civil wars. And, finally, they have been speculators in chances for pecuniary gain of all kinds. This kind of entrepreneur, the capitalistic adventurer, has existed everywhere. Withjthejexception of trade and credit and banking transactions, their activities' were predominantly of an irrational and speculative character, or directed to acquisition by force, above all the acquisition of booty, whether directly in war or in the form of continuous fiscal booty by exploitation of subjects.
20 Introduction The capitalism of promoters, large-scale speculators, concession hunters, and much modern financial capital- ism even in peace time, but, above all, the capitalism especially concerned with exploiting wars, bears this stamp even in modern Western countries, and some, / but only some, parts of large-scale international trade ^ ^ are closely related to it, to-day as alwa^» '■c^/ö/w j^ But in modem times the Occident^nas developed, in U> addition to this, a very different form of capitalism /-/e^'^ which has appeared nowhere else: the rational capital- istic organization of (formally) free labour. Only suggestions of it are found elsewhere. Even the organ- ization of unfree labour reached a considerable degree of rationality only on plantations and to a very limited extent in the Ergasteria of antiquity. In the manors, manorial workshops, and domestic industries on estates with serf labour it was probably somewhat less devel- oped. Even real domestic industries with free labour have definitely been proved to have existed in only a few isolated cases outside the Occident. The frequent use of day labourers led in a very few cases — especially State monopolies, which are, however, very different from modern industrial organization — to manufacturing organ- izations, but never to a rational organization of apprentice- ship in the handicrafts like that of our Middle Ages.
^Rational industrial organization, attuned to a regular market7^nd neither to political nor irrationally specu- lative opportunities for profit, is not, however, the only peculiarity of Western capitalism. The modern rational organization of the capitalistic enterprise would not have been possible without two other important factors in its development: tJie separation of business from ^'^ 21 The Protestant Ethic and the Spirit of Capitalism the household, which completely dominates modem economic life, and closely connected with it, rational book-keeping. A spatial separation of places of work from those of residence exists elsewhere, as in the Oriental bazaar and in the ergasteria of other cultures. The development of capitalistic associations with their own accounts is also found in the Far East, the Near East, and in antiquity. But compared to the modern independence of business enterprises, those are only small beginnings. The reason for this was particularly that the indispensable requisites for this independence, our rational business book-keeping and our legal separation of corporate from personal property, were entirely lacking, or had only begun to develop.^ The tendency everywhere else was for acquisitive enterprises to arise as parts of a royal or manorial household (of the oikos), which is, as Rodbertus has perceived, with all its superficial similarity, a fundamentally different, even opposite, development.
However, all these peculiarities of Western capitalism have derived their significance in the last analysis only from their association with the capitalistic organization of labour. Even what is generally called commercializa- tion, the development of negotiable securities and the rationalization of speculation, the exchanges, etc., is connected with it. For without the rational capitalistic organization of labour,, all this, so far as it was possible at all, would have nothing like the same significance, above all for the social structure and all the specific problems of the modem Occident connected with it. Exact calculation — the basis of everything else — is only possible on a basis of free labour.'
22 Introduction And just as, or rather because, the world has known no rational organization of labour outside the modern Occident, it has known no rational socialism. Of course, there has been civic economy, a civic food-supply policy, mercantilism and welfare policies of princes, rationing, regulation of economic life, protectionism, and laissez-faire theories (as in China). The world has also known socialistic and communistic experiments of various sorts: family, religious, or military communism, State socialism (in Egypt), monopolistic cartels, and consumers' organizations. But although there have everywhere been civic market privileges, companies, guilds, and all sorts of legal differences between town and country, the concept of the citizen has not existed outside the Occident, and that of the bourgeoisie outside the modern Occident. Similarly, the proletariat as a class could not exist, because there was no rational organization of free labour under regular discipline. Qlass_struggles between creditor and debtor classes; landowners and the landless, serfs, or tenants; trading interests and consumers or landlords, have existed everywhere in various combinations. But even the Western mediaeval struggles between putters-out and their workers exist elsewhere only in beginnings. The modern conflict of the large-scale industrial entre- preneur and free-wage labourers was entirely lacking. And thus there could be no such problems as those of socialism.
Hence in a universal history of culture the central problem for us is not, in the last analysis, even from a purely economic view-point, the development of capital- istic activity as such, differing in different cultures only 23 The Protestant Ethic and the Spirit of Capitalism in form: the adventurer type, or capitalism in trade, war, politics, or administration as sources of gain. It is (rather the origin of this sober bourgeois capitalism with its rational organization of free labour. Or in terms of /cultural history, the problem is that of the origin of / the Western bourgeois class and of its peculiarities, a \ problem which is certainly closely connected with that of the origin of the capitalistic organization of labour, but is not quite the same thing. For the bourgeois as a class existed prior to the development of the peculiar modern form of capitalism, though, it is true, only in the Western hemisphere.
Now the peculiar modern Western form of capitalism has been, at first sight, strongly influenced by the development of technical possibilities. Its rationality is to-day essentially dependent on the calculability of the most important technical factors. But this means fundamentally that it is dependent on the peculiarities of modern science, especially the natural sciences based on mathematics and exact and rational experiment. On the other hand, the development of these sciences and of the technique resting upon them now receives important stimulation from these capitalistic interests in its practical economic application. It is true that the origin of Western science cannot be attributed to such interests. Calculation, even with decimals, and algebra have been carried on in India, where the decimal / system was invented. But it was only made use of by developing capitalism in the West, while in India it , led to no modern arithmetic or book-keeping. Neither was the origin of mathematics and mechanics deter- mined by capitalistic interests. But the technical utilizsL' )f 24 — Introduction tion of scientific knowledge, so important for the living conditions of the mass of people, was certainly encour- I aged by economic considerations, which were extremely ' favourable to it in the Occident. Bui this encourage- ment was derived from the peculiarities of the social structure of the Occident. We must hence ask, from what parts of that structure was it derived, since not all of them have been of equal importance?
Among those of undoubted importance are the rational structures of law and of administration. Fori- modern rational capitalism has need, not only of the technical means of production, but of a calculable legal system and of administration in terms of formal rules. Without it adventurous and speculative trading capital- ism and all sorts of politically determined capitalisms are possible, but no rational enterprise under individual initiative, with fixed capital and certainty of calculations. Such a legal system and such administration have been available for economic activity in a comparative state of legal and formalistic perfection only in the Occident. We must hence inquire where that law came from. Among other circumstances, capitalistic interests häve| in turn undoubtedly also helped, but by no means alone | nor even principally, to prepare the way for the pre- dominance in law and administration of a class of jurists specially trained in rational law. But these interests did not themselves create that law. Quite different forces were at work in this development. And why did not the capitalistic interests do the same in China or India? Why- did not the scientific, the artistic, the political, or the economic development there enter upon that path, of rationalization which is peculiar to the Occident? y 25' The Protestant Ethic and the Spirit of Capitalism For in all the above cases it is a question of the specific and peculiar rationalism of Western culture. Now by this term very different things may be under- stood, as the following discussion will repeatedly show. There is, for example, rationalization' of mystical contemplation, that is of an attitude which, viewed from other departments of life, is specifically irrational, just as much as there are rationalizations of economic life, of technique, of scientific research, of military training, of law and administration. Furthermore, each one of these fields may be rationalized in terms of very different ultimate values and ends, and what is rational from one point of view may well be irrational from another. Hence rationalizations of the most varied character have existed in various departments of life and in all areas of culture. To characterize their differences from the view-point of cultural history it is necessary to know what departments are rationalized, and in what direction. It is hence our first concern to work out and to explain genetically the special peculiarity of Occidental rationalism, and within this field that of the modern Occidental form. Every such attempt at explanation must, recognizing the funda- mental importance of the economic factor, above all take account of the economic conditions. But at the same time the opposite correlation must not be left out of consideration. For though the development of economic rationalism is partly dependent on rational technique and law, it is at the same time determined by the ability and disposition of men to adopt certain types of practical rational condudt. When these types have been obstructed by spiritual obstacles, the 26