Protestant Work Ethic and the Economic Crisis

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Hope for Europe

Thomas K. Johnson

The Spirit of theProtestant WorkEthic and the WorldEconomic Crisis

Hope for Europe

MBSTEXTE1376. Jahrgang

2009


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Te Spirit of the Protestant Work Ethicand the World Economic Crisis................................................ 3

Annotation ............................................................................. 11

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Impressum ............................................................................. 13

Table of ContentsInhaltsverzeichnis

Tis material was prepared by a Hope for Europe theologian on behalf of the Evangelica lReformed Church of Lithuania. If your church, school, or ministry would like Hope forEurope educational resource assistance, please contact Michael Borowski at [email protected].

1. Aufl. 2009


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The Spirit of the Protestant Work Ethic and the World Economic Crisis

Te world economic crisis has beenpainful. A Czech economist comparesthe pain with a hangover after a nightof hard partying, implying that ourdeveloped economies have been drink-

ing irresponsibly, that the changesneeded are much deeper than merelytaking some aspirin or buying a betterbrand of vodka.2Hardly any of us hasbeen spared; many have experiencedreal financial pressure while observ-ing devastation in the lives of others.Despairing thoughts have surely arisenin many hearts. We can be grateful that

not so many in the developed worldhave been driven to suicide by economicangst; I am worried that the results willbe worse for the many millions in thedeveloping world or in economies that

were already dysfunctional.Te very fact that I was asked to give

this special lecture confirms my claimthat we need to think deeply about themoral/cultural convictions that guidethe economic dimension of our lives.

We call this the study of EconomicCulture, which has especially inter-ested Reformed Christians since Max

Webers fascinating study, he Protes-tant Ethic and the Spirit of Capitalism,a little over a century ago.3Tis topic

interests us today because we need tolearn from our past for our future.

Weber asked why parts of western civ-ilization developed distinctive patternsthat are not found in other culturesand civilizations. Tere is, he thought,a certain spirit, meaning a distinctive

definition of rationality, that is seen inmodern northern Europe which has ledto a distinctively capitalist approach to

work and business.4

According to Weber, greed, evenunlimited greed, is not distinctive ofcapitalism and is neither the cause ofcapitalism nor caused by capitalism.People have always been greedy. What

is distinctive of modern capitalism is thepursuit of profit, especially ever-renewedprofit, by means of continuous, ratio-nal enterprise. Distinctively moderncapitalism has three external character-istics: 1. Rational industrial organiza-tion (which means not pursuing merelyspeculative opportunities in the mannerof capitalist adventurers). 2. Te separa-tion of business from the household. 3.Te use of rational bookkeeping. Butthese external characteristics alone willnot explain modern capitalism; moderncapitalism is also characterized by aninternal ethic that says people can findmeaning through their work. Systemsof meaning, claimed Weber, are usu-

ally religious in source, even if particu-lar people may have forgotten the reli-

The Spirit of the Protestant WorkEthic and the World Economic Crisis1

Thomas K. Johnson


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gious roots of their system of meaning.Even people who are not consciouslyreligious often continue to live, think,

react, and emote in ways they regardas rational or natural, even thoughthese natural or rational ways arehistorically rooted in distinctive reli-gious traditions not shared by the restof the worlds population. Authenticmodern capitalism has an internal ethicthat says people find meaning in partthrough self-denial (worldly asceticism)

in their work.5 Tis modern capitalistwork ethic is, Weber claimed, the resultof the Calvinist work ethic, carried onin a secularized manner. He called itTe Spirit of Capitalism.

As an example of the Calvinist workethic, the spirit of capitalism, Weberselected Benjamin Franklin. Reli-giously Franklin was a deist, not a Cal-

vinist, but Franklin illustrates the wayin which a religiously rooted culturalvalue system can come to full frui-tion among people who do not acceptthe religious beliefs of a previous gen-eration. For Franklin, time is money,credit is money, money begets money,honesty protects money, and the pur-suit of all the virtues is tied to money.But what we see in Franklins life and

writings is not greed or egocentrism,because Franklin strongly rejected a self-indulgent lifestyle. Money is the resultof diligence, excellence, and virtue inperforming ones duties; furthermore,an ascetic, self-denying way of life and

work is needed to attain this excellence.

But the goal is personal excellence andthe attainment of moral virtue, not the

money which usually results from thepursuit of excellence.

In contrast with Franklins way of

life, Weber suggests we consider a moretraditional way from the past. radi-tionally, if an employer paid employeesaccording to how much they accom-plished, it would be counterproduc-tive to increase the pay for a unit of

work because the worker would thinkin terms of needing a fixed amount ofmoney to pay his regular bills. A larger

amount of money for a unit of workwould usually mean that the workerwould simply work fewer hours perweek so he could still pay his bills andenjoy more leisure. In contrast to thetraditionalist, the modern capitalist

worker would seize the opportunity toearn more money as part of the life ofdiligence and virtue, without using the

increased earnings in a self-indulgentmanner.

Weber saw an essential part of thereligious background for the modern

work ethic in Martin Luthers doctrineof calling (Beruf in German). Weberthought this was a genuinely new ideain western cultural history, that oneseveryday worldly work and duties couldcarry deep religious significance. Ifpeople really believe that not only doeseveryday work have importance to God,but that all legitimate callings haveequal worth before God and can glo-rify God, there will be significant eco-nomic consequences. But, according to

Weber, Luther tended to interpret the

radical idea of callings inside a tradi-tionalist understanding of economics.


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Terefore, the social effects of Luthersdoctrine of calling were limited. Onlyamong the Calvinists and Puritans did

the Protestant doctrine of calling reachits fullest effects.ypical of Calvinism, according to

Weber, is the doctrine of divine pre-destination, according to which Godpreordains which people are destinedto eternal salvation and which peopleare destined to eternal damnation. Tisdoctrine, thought Weber, gives rise to

an unprecedented inner loneliness ofthe single individual, as each person hasto face his eternal destiny on his own

without the help of any other person,the Church, or the sacraments. Calvinmay have had assurance of eternal sal-vation and may have taught that suchassurance is possible to other believers,but ordinary people in the Calvinist

tradition tended to become rational,unemotional, disillusioned individual-ists living in spiritual isolation fromeach other inside the same church, asthey faced their uncertain eternal des-tiny. But there is a psychological neces-sity for people to have some means ofrecognizing a state of grace, whether inthemselves or in others. Tis recogni-tion of a state of grace was by means ofevident and steadily increasing activityfor the glory of God. Such activity wasnot really a means of earning salvation,but it was a means of recognizing if aperson was in a state of grace. Tere-fore, people endeavored mightily toprove by means of a worldly asceticism

that they were in a state of grace andeternally destined for heaven. Pietism

and Methodism have some theologicaldifferences from Calvinism and are notquite so unemotional, but they have

a similar inner logic of demonstrat-ing that a person is in a state of graceby means of systematically planninghis life according to the will of God.Terefore, Pietism and Methodismhave a relation to worldly asceticismand capitalism similar to that found inCalvinism.

As a theologian who has learned

much from John Calvin, I would insistthat Weber seriously misunderstoodthe Calvinist doctrines of salvation andpredestination. Calvin and the bettertheologians of the Reformed traditionhave rejoiced in assurance of justifica-tion and have written eloquently aboutthe joy of knowing Gods fatherly care,themes that are the total denial of

inner loneliness. Te Christian lifehas routinely been described as a life ofgratitude for the gifts of creation andredemption. However, Webers descrip-tion of the Protestant work ethic andits historical influence is approximatelyright.

While commenting on Webers inter-pretation of Calvin, John . McNeill,the distinguished historian of Calvin-ism, concisely summarized the Protes-tant work ethic:

Tere is no realm of life that is exemptfrom obligation of service to God andman. . . . Te laymans calling is notsecular or religiously indifferent. We

are not our own: every Christian is tolive as one dedicated. . . . Calvin makes


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much of humility and the abandonmentof assumptions of superiority and allself-love as basic to Christian behavior.

In grateful response to Gods love, welove and serve our neighbor, who, goodor bad, attractive or repulsive, bears theimage of God. . . . Calvin would haveus abandon all thought of seeking mate-rial prosperity for ourselves. Whateverworldly goods we handle or possess, our

function with them is one of steward-ship. We and our possessions together

belong to God. Tis view involves thehallowing of each mans vocation. It isthe post assigned, to be faithfully exer-cised.

Calvins insistence on diligence andfrugality, his horror at waste of timeor of goods, his permitting interest onmoney under strict limitations of equity

and charity, and his similarly guardedpermission of a change of vocation arejustly held to have contributed some-thing to the development of capitalisticindustry and business.6

A second appraisal of the influence ofProtestantism on economic life comesfrom Gerhard Simon. Simon very care-fully clarified that Calvins ethics werenot those of the brutal capitalism of thelater era of industrialization; instead,Calvins aspiration in this arena wasentirely oriented toward helping thepoor.7 And Calvin thought that thepoor were best helped within a contextof a broadly flourishing economy.8 As

parts of his economic ethics, Calvinrejected the idea of an unchanging

just price for goods (which could eas-ily prevent market forces from bring-ing prices down to what poor people

could pay for daily needs), allowedpayment of interest on business loansunder strict rules (thereby promotingthe start of new business), and taughtpeople to work hard and consistently

without increasing consumption orluxury, leading to saving and invest-ment in future business. Tis was sucha marked change in the way Christians

talked about business and work ethicsthat, claims Simon, one can talk abouta turning point in the flow of westernthought and culture.9Terefore, Cal-vins command to simultaneously work,save, and invest gradually became thefoundation of a new economic sys-tem.10

Tough McNeill and Simon disagreed

with Webers interpretation of Calvinstheology, they agreed with Weber ontwo fundamental points: generally, howpeople go about work and business isheavily influenced by moral and cul-tural values in which religious beliefsplay a decisive role; specifically, theProtestant work ethic has made a deci-sive contribution to economic develop-ment in multiple parts of the world.

In our historical setting in post-communist Europe, we must notice thecomplete disagreement of Max Weber

with Karl Marx. Marx claimed thatreligion, ethics, and cultural values areentirely the result of economic factors,

whereas Weber thought that religion,

ethics, and cultural values are inde-pendent causes of individual economic


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decisions and the economies of nations.Marx and Weber offer us totally oppo-site views of the relation between eco-

nomic life and cultural values; theypresent a complete contrast in terms ofthe relation between business and thephilosophy of life held by individualsor an entire society.

oday we all know we cannot under-stand twentieth century history withoutknowing something about Marxism;Marxist ideas changed the course of

history in a tragic way. If Marxist ideashad a massive influence on history, thenother philosophies of life, religions, andsystems of values can also change thecourse of history. Tis means Marx

was wrong on the very important ques-tion of the relation of moral/culturalvalues to economic and political life.11Ironically, Marxist history confirms my

claims about the role of ideas, beliefs,and moral values in society in a mannerthat strongly contradicts central claimsof Marx. A Marxist should see Refor-mation theology and ethics as merelythe superstructure of life resulting fromdistinctive economic relations. Historyshows that religious and cultural valuesystems cause economic transitions.12

Tis insight into society is crucial forour assessment of the world economiccrisis. If we fail to reconsider how dif-ferent philosophies of life contributeeither to healthy economic growth orto an economic crisis, we will thought-lessly follow Karl Marx on a most dis-putable point in his philosophy, even

if our politics are democratic and oureconomics are market-oriented. If we

ignore the values and convictions thatcontributed to our economic crisis, we

would be like the person who thinks a

lot of aspirin is the right solution to aterrible alcoholic hangover every morn-ing. We must look at the problem morecourageously.

Abraham Kuyper, the DutchReformed theologian of a centuryago, did much to develop the theoryof Sphere Sovereignty as a frameworkfor understanding society. Our Roman

Catholic friends have further developedthis idea, and I would like to borrow itback from them.13

In a modern society there are alwaysat least three spheres or societal sys-tems that continually interact witheach other: the business/economic, thelegal/political, and the moral/culturalsystems. Each of the three major sys-

tems in society is heavily dependent onthe other two systems functioning ina healthy manner. Tis is interdepen-dence. A healthy economy is dependenton health in both the moral/culturalsystem and in the legal/political sys-tem. A healthy legal/political systemdepends on healthy cultural and eco-nomic systems. And a healthy moral/cultural system depends on healthyeconomic and political systems. Whilethe preaching of the Christian gospelof reconciliation with God is the lead-ing task of the church, as the carrier ofthe Christian message, the church alsoplays and should play a massive rolein the formation of the moral/cultural

system. Culture always goes beyondmoral rules and values to include the


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definition of human nature and des-tiny, a subject about which the churchhas much to say, always in competition

with other definitions, whether Marx-ist, libertarian, or consumerist. Whilethe political and economic spheres areproperly separate from the culturalsphere, human activity in the politicaland economic spheres is alwaysguidedby our understanding of what it meansto be a human being and by a relatedset of moral values and practical prin-

ciples. In this sense, political life andeconomic life are both dependent onthe cultural sphere of life for directionand guidance.

Te moral/cultural sphere of lifewill never be truly empty; there willalways be some moral/cultural content,some definition of human nature anddestiny. Te problem is that the con-

tent of the moral/cultural sphere maybe poorly chosen, perhaps with self-destructive values or with definitionsof human nature and destiny that donot fit who we really are. Such a failureof the moral/cultural sphere of society

will lead to terrible results in the politi-cal and economic systems. Te failureof Marxist Communism was a resultof a description of human nature anddestiny in communist ideology that didnot honestly fit with human nature andexperience. We must never forget thatmoral/cultural values and the under-standing of human destiny are simul-taneously philosophical and religiousmatters. Our understanding of penul-

timate cultural matters (human natureand destiny) always stands in dialogue

with our understanding of the ultimate,the nature of ultimate being, which isproperly the realm of religion. Tis is

the pivotal connection among religions,cultures, and economics.When we talk about the moral/cul-

tural sphere of life, we must never forgetthe multi-faceted relationship betweenfaith and culture. Te Christian faithstands in an answering relationship toculture, speaking to the deepest anxiet-ies of each culture. Te Christian faith

should also have a critical relationshipto each culture, attempting to stand asrepresentatives of the Ultimate SocialCritic. Additionally, the Christian faithmust attempt to contribute somethingto each culture in which the churchexists, articulating a rich perspective onhuman nature and destiny as an effec-tive voice in the moral/cultural sys-

tem.14 When we Christians contributeto the moral/cultural system in a soci-ety, on the one hand, we will properlydescribe much of what we want to sayas simply biblical teaching or Christianethics, which we see as given by God.Tis ethical teaching is inseparablefrom our faith. On the other hand,once these ideas are explained, theyoften achieve an authoritative status formany people, even if those people donot share our Christians beliefs; Chris-tian moral/cultural convictions canhave a wide influence among people

who do not claim to be Christians andmay not know the source of their moralconvictions. Tis was a key element in

Webers observations about the his-torical influence of the Protestant work


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ethic. In theological terms, because ofGods common grace and revelationthrough nature, people often accept

humane moral principles that tend topreserve and protect human well-being,whether or not the people acknowl-edge that these moral principles comefrom God. Terefore, many Christianmoral convictions can both have directintuitive validity and also be capable ofrational/scientific documentation, evenamong people who do not yet accept

Christian beliefs about God and salva-tion. Tis moral content may seem tosome to be somewhat separable frompersonal faith; this is not because Godis irrelevant. It is because God is activein a twofold manner: on the one hand,through redemption by faith in the lifeof believers, and on the other hand, asthe Sustainer and Ruler over all.15

oday we need a renewal of the moral/cultural sphere of society in relation tobusiness, economics, and work ethics.Terefore, I would propose the follow-ing 20 theses as part of the content weneed in the moral/cultural sphere tohave healthy economies. Each thesis isorganically tied to the Christian faithor arises from the faith, and there arebiblical sources for many of these ideas.But most of these ideas are not directlyabout God or salvation, so even athe-ists or adherents of other religions maybe able to accept many of them. Tese20 theses describe human nature anddestiny with supporting moral princi-ples that fit this view of human nature.

Each is worthy of a long explanation,but that is not possible here.

1. Human beings are filled with cre-ative potential; each person can andshould take the initiative to do some-

thing significant with the potential hehas been given. Wise business and eco-nomic structures will seek to unlockthis potential.

2. Greed, laziness, and dishonesty haveroots in our fallen condition which arefar deeper than is any economic systemor situation. Businesses and societyshould be structured to restrain our

vices, use these vices for the commongood, or reduce the destructive powerof these vices.

3. Loving our neighbors as ourselvesis the proper framework for work andbusiness. We should seek to provide forour own needs by means of genuinelyserving the needs of our neighbors.

4. Te alienation from ourselves, fromeach other, and from our work, soeloquently described by our Marxistfriends, will not be overcome by a mereeconomic transition. Wise businessstructures may reduce this alienation inregard to the work place.

5. Our lives are not determined by animpersonal fate. Gods sovereignty does

not mean we should resign responsi-bility for the future. Whether we areChristians, atheists, or adherents ofanother religion, we must take respon-sibility for the future of our societies,including our economy.

6. History is not an eternal set of cir-cles. History moves forward, using ourinitiative and creativeness to developpotential built into the world, under theprovidence of God.


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7. Te physical world is real and good, aplace in which we can find significance,partly through our work. Believers willsee this significance as part of the wor-ship of God.

8. Te promise that wealth will make ushappy is false. Happiness will be foundin significant relationships and activi-ties, including work, hobbies, family,community organizations, and wor-ship.

9. Giving to help someone in need,

rather than buying something for our-selves, will contribute to our life satis-faction.

10. Entertainment and consumptionwill not fill our inner need for ultimatemeaning.

11. Material goods do not belong to meas an individual; they belong to me as amember of a family, including childrenand grandchildren. Responsible eco-nomic decisions will reflect this multi-generational view of life.

12. Honesty really is the best policy.Not only is honesty expected by God;it is a key to human well-being in allrelationships and sectors of society.

13. Providing jobs to people can be as

great an act of love as is humanitarianaid, since it provides people the oppor-tunity to actualize their potential.

14. It is possible to carry on businesswithout exploiting other people. Honestbuying and selling generally helps bothparties; honest financial transactionsare not exploitative.

15. While it is often possible to recog-nize prices that are exploitative, it is

not possible to identify enduring fairprices in the manner of some medievalChristians.

16. While not all loans are immoral,some loans are immoral, and manyloans have been unwise for borrowersand lenders. Borrowing is a morallyserious undertaking which requiresserious deliberation.

17. Laziness is a serious vice whichdestroys business, economies, families,and communities.

18. Intact families are an important endin themselves, but they also play a verysignificant role in total economic andsocietal well-being. Family breakdowncauses economic problems in multiple

ways.

19. Both management and labor mustaccept the discipline of the market-place, which requires continually grow-ing quality and service for lower prices.

20. People generally know a lot aboutright and wrong, more than they like toadmit to knowing. Business life standsunder the same moral demands as allsectors of our lives.

Because of the organic unity ofthought and action in human life, ideashave consequences. Good ideas havegood consequences, and bad ideas havebad consequences, including bad eco-nomic consequences. Tese 20 thesescan help provide a framework for fol-lowing the historic Protestant values ofdiligence, honesty, family loyalty, cre-ativity, and thrift. Following such val-

ues can lead to a renewal of the moral/cultural sphere of society, which can


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support a healthy economy. Christiansshould practice these values as part oftheir worship of God. I hope all our

neighbors will practice these values as

good practical wisdom and also con-sider our distinctly Christian claim thatit is really God who wants us to live in

this manner.

AnnotationAnmerkungen1Te following is a revised text of a public policylecture given on behalf of the synod of the Evan-

gelical Reformed Church of Lithuania, celebra-ting the 500th anniversary of the birth of JohnCalvin. Te lecture was given on June 20, 2009,in Vilnius, Lithuania.

2Te image comes from the blog of the Czecheconomist oma Sedlaek: http://blog.aktu-alne.centrum.cz/blogy/tomas-sedlacek.php.

3Max Webers study was originally published asan essay entitled Die protestantische Ethik undder Geist des Kapitalismus in 1904 and 1905 in

volumes XX and XXI of the Archiv fr Sozialwis-senschaft und Sozialpolitik. It was republished in1920 in German as the first part of Webers seriesGesammelte Aufstze zur Religionssoziologie. Itwas published in English as Te Protestant Ethicand the Spirit of Capitalism, translated by alcottParsons, with a foreword by R. H. awney (NewYork, Scribner, 1958; reprint New York, Dover,2003).

4We must notice that what a person or group of

people regards as economic rationality is depen-dent on values and assumptions about life thatthey bring into work and economic activity.Work is a necessity given to all people by crea-tion; howwe work is heavily influenced by ourbroader philosophy of life.

5In all of this discussion, worldly asceticism,sometimes called intramundane asceticism, iscontrasted with types of religious asceticism thatmay involve some type of religiously motivatedwithdrawal from society or self-denying religiousexercises that provide no societal benefit. Tese

other types of religious self-denial are oftencalled extramundaneasceticism.

6Te History and Character of Calvinism (OxfordUniversity Press, 1954), p. 221.

7Gerhard Simon, Bibel und Brse: Die Reli-gisen Wurzeln des Kapitalismus, Archiv frKulturgeschichte 66 (1984) pp. 87115. Here p.112. All quotations from Gerhard Simon are bor-rowed from Tomas Schirrmacher, Ethik, Band3: Wirtschaft, Kirche, und Staat(Hamburg: RVBand Nrnberg: VR, 2001), pp. 151154.

8

o appreciate Calvins concern, we must notforget that most of the population of Europe inhis day lived in oppressively harsh poverty, andeven if all the wealth of the upper classes hadbeen widely distributed, there would have beenvery little relief from that poverty. In this light,Calvin read biblical texts such as 1 Tess. 4:11(Make it your ambition to lead a quiet life,to mind your own business, and to work withyour hands.) and Eph. 4:28 (He who has beenstealing must steal no longer, but must work,

doing something useful with his own hands,that he may have something to share with thosein need.), and Calvin concluded that the onlypossible way out of poverty was for his peopleto work more consistently and more wisely. Teonly solution to the poverty he saw was the gene-ration of more wealth.

9Ibid, p. 113. German to English translations byProf. Johnson.

10Ibid, p. 104.


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11I am very grateful to have learned from MichaelNovak to see Marx and Weber as presentingdirectly opposing views on the relationship bet-ween culture and economics while I was prepa-ring and writing the special Russian language

introduction and footnotes for his Spirit of Demo-cratic Capitalism(Minsk, Belarus: Luchi Sophii,1997). My participation in this publication of abook by a leading Roman Catholic social econo-mic theorist is an example of the positive inter-action between Catholics and Protestants in therealm of social-economic theory.

12A friend who is an investment manager hascommented that Calvin and Marx represent the

real alternatives of how to view the way econo-mies work.

13See Richard John Neuhaus, Doing Well andDoing Good: Te Challenge to the Christian Capi-

talist(Doubleday, 1992).14For more on faith and culture, see my Christand Culture, MBS ext 79, available at www.bucer.eu.

15For more on this topic, see my essay Te wo-fold Work of God in the World, MBS ext 102,available at www.bucer.eu.

The Authorber den Autor

Thomas K. Johnson received his Ph.D. in ethics from the University of

Iowa (1987) after being a research scholar at Eberhard Karls Universitt

(Tbingen). He has an ACPE from Missouri Baptist Hospital (St. Louis,

1981), a Master of Divinity (Magna Cum Laude) from Covenant Theo-

logical Seminary (St. Louis, 1981), and a BA (Cum Laude) from Hope

College (Michigan, 1977). He is a pastor of the Presbyterian Church

in America. Since 1994 he has served the International Institute for

Christian Studies and is now IICS Professor of Theology, Philosophy, and Public Policy.

He was a visiting professor at the European Humanities University in Minsk, Belarus,

19941996. (UHU is a dissident, anti-Communist university, forced into exile by the

Belarusian dictator in 2004.) Since 1996 he and his wife have lived in Prague, where he

taught philosophy at Anglo-American University (4 years) and at Charles University (8

years). He is MBS Professor of Apologetics and Ethics (2003) and Vice President for

Research (2007). His wife, Leslie P. Johnson, is director of the Christian International

School of Prague.


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Protestant Work Ethic and the Economic Crisis