In his seminal work, The Protestant Ethic and Spirit of Capitalism (1904), Max Weber examines the relationship between protestant ethic, specially Calvinism and rise of capitalism. Weber identifies certain unique values embedded in Protestantism which are in harmony with spirit of capitalism. These are
- Down to Earth pragmatism instead of ritualistic or other worldly orientation
- Changed attitude towards work - work for the glory of God rather then result of original sin as per Catholics.
- The concept of calling i.e. every soul is predestined at birth for heaven or hell
- Protestant Asceticism abstained from pleasure of the world i.e., profit for shake of investment and more profit. Undoubtedly, a condition par excellence for development of capitalism.
Because of combination of all the above factors which Weber could not find in other religious systems, led to rise of capitalism in Western Europe.
Karl Kautsky criticised Weber assertion that capitalism was result of Protestantism. He argues that capitalism preceded and largely determined Protestantism. He sees Calvinism developing in cities where commerce and early form of industrialization already established. In his view, Protestantism became ideology of capitalists to legitimize their position.
