Max Weber

(1864 – 1920)

His Influence Lives On

Todd Erickson

My Challenge Today

100 lbs of stuff into a 1 lb bag. His works were “works in progress”. Given time constraints, I will not be

able to fully support everything here.

Note to self: This is not an economics class.

My Objectives

For you to be able to:

See how his ideas come together. Understand his impact today. Have a sense of the areas where he is

criticized. Form your own opinions about Weber’s

influence today.

My Primary Sources Robert Green – overview of the critics. Gordon Marshall - analysis. Wolfgang Mommsen – journal article. Kurt Samuelsson - critiques. Richard Swedberg – reviews economics. Max Weber –

Protestant Ethic and the Spirit of Capitalism Theory of Economic & Social Organizations

Basic Background Sketch Family cultured, upper middle class Father a politician Raised in Berlin, surrounded by

socialism, Marxism, democracy, monarchies, dictatorships.

Primarily agrarian commerce Died of pneumonia at 56

Who Was He Anyway?

Took a law degree Earliest work in historical jurisprudence Taught only economics Studied sociology

Of Religion Of Politics

Wrote as an economic sociologist

Rejected Marxism Early

It did not account for the power of ideas very well.

It discounted people as individuals w/ unique skills etc.

It was too regimented.

Popular Economics – 1880’s

The German Historical School. Institutional in focus. Holistic/historical approach - not

focusing analytically on any mechanisms.

Economics Not Real Enough

“Homo economicus” was not real. Theoretical economics too narrow. He required students to study

outside of economics Law – heavily influenced economics. Sociology – human behavior and the

state.

Weber and Economics

Economic theory deals exclusively w/rational economic action usually not found in reality.

(Weber. Economy and Society: An Interpretive outline of Economics.)

Sociology was too Limiting Existing work not rigorous. Didn’t answer enough questions Motivational issues unresolved. Too narrow

Religion Economics Political

Weber and Sociology Deals w/ broad range of actions that have to

be oriented to others. Interaction – two people orient their actions

to each other. Power – one person imposes their action on

the other. Order – extended interaction creates

expectations. Organization – an order w/specific

safeguards(Weber. Economy and Society: An Interpretive outline of Economics.)

Introducing Economic Sociology

Sociological analysis of the economy. (an innovation)

Analysis of relation of economy to non-economic phenomena (politics, law, religion).

Integration is a big theme of his. Disciplines, in isolation, often can’t cope

with reality.

Major Influences on Weber

Early work on capitalism A trip to America.

What is Modern Capitalism? Not the pursuit of money/gain or

unlimited greed. This is ancient. It is the pursuit of “forever renewed profit

by continuous, rational capitalistic enterprise”.

Emphasis on balance, careful consideration, planning.

The new idea: the organisation of legally free labour.

What Caused the Change? Standard answer: gold/silver from

America, commerce growth outside of Europe, population growth, technological improvements.

Weber’s response: conditions were favourable – yes; but the best conditions did not yield the best capitalism and visa versa.

His answer: the religious revolution of the 16th century formed the seeds.

What Allows it to Continue? The new capitalism developed along

with a new system of legal and administrative support. Not just technological advancement or religious influence. The development was iterative – not just one driving the other.

Religious Influence Highest economic development

occurred where the most religious revolution occurred.

Problem: different religious groups had differing amounts of economic change. WHY?

Religious Influence - Luther

Luther – moral justification of worldly pursuits (but not commerce)

Labor is now a spiritual end. Covetousness is less dangerous than

sloth.

Religious Influence - Calvin

“The calling” – a task set by God & chosen by the individual.

A strenuous and exacting enterprise pursued with a sense of religious responsibility.

Therefore… A New Attitude All callings are equal. Pursuing your calling vigorously is

the sign of your election. You must do it well. Pursuit of wealth is a duty Added a moral dimension to wealth.

What was a human vice is now sanctified.

A Trip to America

Caused a transition in his thought Modern capitalism more prevalent in

America. “Everything opposed to the culture

of capitalism is going to be demolished with irresistible force.” (Weber)

A Weber Quote: “Perhaps never before in history has it

been made so easy for a nation to become a great civilized power, as for the American people. Yet, according to human foresight, it also is the last time in the long-lasting history of mankind that so favourable conditions for a free and grand development will exist; right now the areas of free soil are vanishing throughout the world.”

A Conclusion: “Weber concluded that religious

groups in America practiced a sort of social selection by co-opting as members only those who were considered morally worthy and were, at the same time, respected and professionally successful citizens.” (Mommsen)

Another Conclusion

Modern, rational science is taking over, governing what society thinks is acceptable.

Personal beliefs subsumed. Industrial capitalism and bureaucratization form

the “iron cage” binding mankind. While Puritanism was the model, this new force has taken over.

Bureaucracy was a key – large & skilled not driven by nepotism. (I.E. the U.S. government).

The Danger

Weber believed:Formal rational techniques of socialand economic organization, enforced bymarketplace mechanics, was inevitablybound up with “material irrationalities” -the erosion of relative equality, an increasein social tensions, a weakening ofdemocratic forces.

Critics are Easy to Find A broad, unfinished vision brings critics:

Theologians Sociologists Historians Economists

Most reactions focused on accuracy of aesthetic Protestant roots.

Some doubted his pessimism. Hard to be dispassionate.

Tough Assumptions Weber’s approach requires certain

assumptions –

1. The economy is rational.2. The support structures are in place (law,

political, attitudes)

Problems include: Can the planning body have adequate

knowledge?

More Tough Assumptions Does the planning body actually adhere to the

standards laid out for them (are they rational?) Agreed upon list of values, by which the rational

decisions are made, is never available. Are decisions enforceable? Would require

tremendous bureaucracy. Human behaviour is very complex – equilibrium is hard to find.

Therefore: a system of spontaneously determined competitive prices stabilizes the system because it makes it easier to overcome all the irrational forces impacting it.

Some Observations

Weber’s ideas have infiltrated Marketing management Market forces based on exchange and

competition (5 Forces Model) The impact of religious thoughts

• “we are good - they are bad”

More Observations Religion probably didn’t cause it all. However, it had to have some

influence. The process of capitalism’s expansion was labor intensive. Religion was the only vehicle to speak to the masses that could give them the incentive to fuel capitalism.

Still More … Weber foresaw trouble, but he didn’t

tell us how to get out of it. The Scientific Management School

was a logical outgrowth based on Weber’s observations.

It was also logical that Scientific Management would not solve the problem.

More, More and More... He saw the person as important - yet

took a fatalistic view of where capitalism was going.

Saw the person as a tool of capitalism - didn’t look into what would make that tool more effective (only the system).

Researchers wouldn’t look people as people until the 1960’s.

What do you think? How are large bureaucracies doing? Are employee’s interests subsumed?

Do trends today prove Weber wrong? What role does religion play in the

economy today? What role does religion play in

management/motivation today?