I would also call attention to Max Weber's
The Protestant Ethic and the Spirit of Capitalism and R. H. Tawney's Religion and the Rise of Capitalism. These studies show the development of the bourgeois mindset and the rise of the acquisitive class that underlie capitalism arising out of the transition from the Catholicism of the Middle Ages to the Protestantism of the Reformation that emphasized freedom and individualism. Calvinism and Puritanism contributed the "Protestant work ethic" as a moral basis.
The Middle Ages were theocratic and feudal. Did liberalism replace theocracy along with capitalism displacing feudalism as dominant. Is liberalism the new religion, and where economic liberalism dominates are economists, managers and acquisitors the new priesthood.
The question is not only the rise of capitalism but the reasons for a break with the ancient and medieval culture that precluded it. One obvious reason is the rise of science and the development of technology that gave birth to industry and therefore private ownership of the means of production. However, a cultural shift also took place in the direction of liberalism — social, political, and economic.
But that is not sufficient. There was also a cultural and institutional shift taking place that favored the development of liberalism and capitalism as economic liberalism and democracy as political liberalism. Markets catered to social liberalism as free agents exercised choice.
Capitalism presumes the precedence of economic liberalism (the sanctity of private property and contracts) over social and political liberalism. Social and political liberalism are required to provide agents' free choice that underlies market exchange.
If this is the case, then the assumption that liberalism is somehow natural is mistaken. It is a cultural phenomenon that Continental European and British, including American colonial. This brings up the question of the degree to which these cultural developments are exportable to vastly different cultures. Is liberalism a natural basis for globalization as liberals assume, and is it even sufficient?
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Capitalism and religionDavid F. Ruccio | Professor of Economics University of Notre Dame Notre Dame