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Capitalism as religion
Arthur Thoby
Erasmus Student
In this unapologetically provocative essay, Arthur Thoby explores the
fundamental nature of capitalism. He skilfully argues that Capitalism
meets the relevant criteria for classification as a religion, with eco-
nomics providing its theological foundations and money occupying
the role of divinities. He then discusses the harmful consequences of
‘Religious Capitalism’ for society and its limiting influence on indi-
vidual thinking.
"The charm of history and its enigmatic lesson consist in the fact
that, from age to age, nothing changes and yet everything is com-
pletely different. "
Huxley, Aldous.
Introduction
Voluntarily enigmatic, this assertion of Huxley could, in certain respects, con-
stitute the basis for the definition of postivism, especially regarding the sense
of history. This paper, consistent with a certain school of thought that regards
history as highly symbolic, will posit that modern Western societies do not
fiercely differ from pre-Enlightenment societies in the sense that one still wit-
nesses the realisation of a theology. As provocative as this idea may seem,
thinkers from various fields of studies including anthropology, sociology,
philosophy and even economists such as Fogel, laureate of the Nobel Prize
in Economics in 1993, acknowledge that capitalism and economics convey
religious or theological dimensions. In this context, it is argued that the rise
of capitalism and Western ideologies had the progressive decline of the Chris-
tian Church as a corollary. Accordingly, this papers postulates that capitalism
(and economics) is the new recipient of a fervent religious expression. Doing
so, this article (i) briefly reviews the notions of capitalism and progress, (ii)
establishes the grounding for considering capitalism as religion and finally
(iii) analyses the implications of the second point.
Capitalism and Progress: What is Capitalism?
Rarely has a concept been more controversial than capitalism. Of particu-
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lar fashion in the 19th and the very beginning of the 20th century, its use
progressively declined during the 20th century to finally vigorously reappear
in the writings of Hayek and Friedman. Yet, the very concept of capitalism
makes economists uncomfortable. Such uneasiness is to be sought in the his-
tory of thought. Indeed, during the 20th century, capitalism was traditionally
opposed to other ideologies such as communism or totalitarianism. This op-
position gave capitalism the dimension of a doxa that does not fit with the
scientific representation the field of economics has of itself. For that particular
reason, most economists now prefer to capitalism more fashionable words
such as ‘liberalism’, ‘market capitalism’, ‘rational capitalism’ and so on. Thus,
defining capitalism is particularly tricky and depends on the standpoint one
is willing to adopt. This paper being, by nature, inter-disciplinary, one will
settle for a broad definition that entails the two following definitions.
Xing and Hersh (2004:100) define ‘market capitalism’ as a ‘process
of societal development involving historical, cultural and religious causes.
Their approach is all the more original that they regard capitalism as a po-
litical realisation rather than ‘the logic of history’ or a ‘natural outcome’.
In his last lectures, Weber outlined a powerful theory of rationalised
capitalism (Collins, 1980). He depicts it as a system aiming to provide hu-
man needs thanks to ‘the entrepreneurial organisation of capital, rationalized
technology, free labour, and unrestrained markets’ (Collins, 1980:925). Here,
the rise of the bureaucratic is central because the latter is responsible for the
implementation and enforcement of a calculable system of laws along with
the notion of citizenship.
Intellectual Revolution and the Notion of Progress
As many historians of thought, economists, or sociologists under-
line, understanding capitalism requires a broad inquiry into his-
tory and the history of thought. That said, there is a large consen-
sus placing capitalism at the heart of progressism or modernism.
As pointed out by Lash (2004), this revolution corresponded to the
shift from an accidentally chaotic conception of the atom to a state in which
nature became a place of exchanges. In light of the ‘Enlightenment’, the chaos of
collisions and exchanges began to form patterns and laws. This is properly illus-
trated by the Kantian critique of metaphysics, whereby metaphysics is limited to
the condition of understanding. In short, the 19th century witnessed a new sci-
entific and metaphysical order celebrating the notion of reason or, as Xing and
Hirsh (2004) put it, a shift from the ‘Age of Faith’ to the ‘Age of Reason’.
Simultaneously, great changes occurred in the political realm. As
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163
Weber notes this period was characterised by the struggle of bourgeoisie
to takeover political institutions and subsequently expand its economic ac-
tivities. However, consistent with the Enlightenment principles, the new in-
stitutions were designed to convey the ideas of democracy, citizenship and
freedom, thus encouraging people's participation in the system.
In sum, post-Enlightenment societies were characterised by an un-
fettered faith in science and reason, freeing humanity from belief and cel-
ebrating democracy. For the first time in its history, humanity was thought to
be capable of taking on its own destiny, giving birth to the notion of progress.
Thus, progress is a forward-looking concept whose pillars, science and de-
mocracy, ultimately aim to ensure humanity’s well-being through freedom
and the control of nature.
Capitalism as Religion: Defining Religion
Traditionally, religion or theology consists of the study of the transcendent
or metaphysical.
In The Elementary Forms of the Religious Life, Durkheim
(1964) defines religion as ‘a more or less complex system of myths, dog-
mas, rites and ceremonies or, put more simply, a system of beliefs and
rites. In this sense, beliefs consist of opinions and representation while
rites determine the mode of actions. The French sociologist adds that
religious phenomena are generally associated with the observation of
(i) supernatural, (ii) divinity and (iii) the belief in spiritual beings.
Bourdieu defines religious power as ‘the authority to modify,
in a deep and lasting fashion, the practice and world-view of lay people
through the absolutization of the relative and legitimation of the arbi-
trary’ (Verter, 2003:153). In other words, he posits that religion structures
the perception and thinking of the world and especially the social world.
Religion does so by the imposition of a system of practices and represen-
tations (social capital) whose structure presents itself as the natural-su-
pernatural structure of the cosmos. In this framework, religious need is
an inner compulsion seeking understanding of the world or, to put it in
a Heideggerian fashion, the expression of the need for causation.
Capitalism: a Religion?
In a short piece, Walter Benjamin declares that capitalism should
be examined as a ‘purely cultic religion’, i.e. which does not appeal to a
dogma or theology (Löwy, 2009). Social actions (rites and ceremonies),
he argues, are the only forms of the cult, implying that the latter is solely
practical, hence non-transcendental. Finally, capitalism’s main origi-
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164
nality, asserts the German philosopher, lies in the fact that it is not ex-
piatory but guilt-producing. Though fascinating the approach is, the lat-
ter suffers nevertheless from two important limitations. In short, it fails
to recognise the theological and expiatory nature of capitalism.
Fritz Mauthner, further develops the conceptualisation of money
already present in Walter’s thesis. Basing its assumption on an etymologi-
cal ground, he posits that God, as Idols, is essentially a human creation that
gains life, becomes a significant phenomenon, and then ultimately sub-
dues humanity (Löwy, 2009). Viewed from this optic, banknotes would
constitute the new divinities of the cultic phenomenon named capital-
ism. On this particular subject, Lash proposes an insightful interpreta-
tion. The latter postulates that capitalism is the encounter of metaphys-
ics and physics, where metaphysics is in-itself and physics for-itself (Lash,
2004). In this sense, he stresses that money, being abstract and tangible,
is both metaphysical and physical. Thus, as exchange values are abstract
concepts, money solely constitutes the physical face of capitalism.
Nelson (2001, 2004), argues that capitalism is greatly transcendent.
As a matter of fact, it offers to achieve the Kingdom of Heaven (myth) in this
world rather than in the hereafter (Nelson, 2004). In substance, economic prog-
ress (through the application of progressive methods) is expected to alleviate
poverty while providing humanity with the goods and services necessary to
its worldly well-being, its salvation. Thus, Fogel notes that the progressive era
was a period of intense religious expression (Nelson, 2004). Ironically, histori-
ans usually describe this movement as the ‘Gospel of efficiency’. Moreover, the
abusive association of capitalism with democracy, whose pregnancy appears
clearly in the writings of Hayek and Friedman, symbolically reinforces the
idea of salvation, capitalism helping humanity in its quest for freedom.
Market mechanisms in themselves carry theological dimensions.
Thus, as Cox (1999) points out, free markets and God are both ascribed the
same characteristics, namely omnipotence, omniscience and omnipresence.
In a more detailed fashion, market laws are elevated to the rank of natural laws.
This is the very idea of the Invisible Hand, whose universal and absolute na-
ture justifies and determines social interactions (Xing and Hersh, 2004).
In the light of Bourdieu’s definition, economics undoubtedly consti-
tutes a religion. First, economics is a doxa that presents itself as an organised
scientific system of explanations aiming to describe the real world (Xing and
Hersh, 2004; Nelson 2001, 2004; Oslington, 2000). Here, economists are in
charge of the production and reproduction of the theology (Bourdieu, 1998).
In effect, scientific aspects seem to have partly taken over the field of eco-
nomics. Yet, economics failed as a science (notably with reagrd to prediction)
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while it thrived as a theology (Nelson, 2001). In addition, beyond the purely
scientific aspect, economic laws and their corollary capitalism are regarded
as rational, inevitable and natural (Fukuyama, 1992). Second, economics as
a theology produces the basis for moral judgment and values. As a matter of
fact, it produces new values corresponding to the old Christian good and evil
(Nelson, 2001, 2004). In this sense, actions encouraging the well-functioning
of free markets are seen as being good (for the public interest) whereas limit-
ing measures are ascribed an evil nature. From this standpoint, economics
enables people to resolve an ethical dilemma regarding the sole pursuit of
self-interest. In addition, this moral basis constitutes the point of departure
of the notion of expiation. Consistent with the idea of salvation, economics
requires short term sacrifices (transition costs) that should be all the more
significant if heaven is reachable in this world. Third, economic rhetoric is
partly metaphysical (Nelson, 2004, 2001; Oslington, 2000; McCloskey, 1983).
Thus, McCloskey (1983) notes that economists do not follow their method-
ologies (modernism), even arguing that if they had done so, great theories
such as the one of Keynes would have never seen the light of the day. McClo-
skey adds that econometrics is too narrow and illustrates, taking the example
of purchasing power parity, that at the end of the day, the interpretation of
mathematical results (not to mention the construction of models) is a mat-
ter of faith. This, he argues, is perfectly exemplified by the existence of the
semantic of evidence. Thus, economists’ abuse of sentences and words like:
‘significant’, ‘in some absolute sense’, ‘evident’, ‘obvious’, ‘it is natural to assume’
and so on. Moreover, it is ironic to notice that economics’ animosity towards
metaphysics is itself metaphysical (Oslington, 2000; McCloskey, 1983). More
importantly, one should note that in the absence of such a metaphysical rhet-
oric, several key hypotheses of economic theory could not be sustained.
In sum, one may consider capitalism as a religion in the sense that
it is a system of beliefs and rites in which economics plays a theological role.
It is a hegemonic system that combines norms, values, divinities and laws.
The content of its faith is directly derived from the progressive movement
that celebrates the salvation of humanity through science and democracy.
Capitalism as Religion: Implications
Probably the most important implication lies in what Bourdieu calls the
habitus. Religion, as a symbolic system, incorporates the individual lev-
el in the form of the habitus. Here, the habitus is a structured structuring
structure which could be assimilated to a lasting disposition of the in-
dividual to act in conformity with a systematic view of the world (Verter,
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166
2003). In this sense, the habitus is responsible for the construction of be-
liefs and representations at the individual level. Consequently, it is anterior
to conscious thought and structures the actions of the individual.
Figure 1 illustrates this concept:
Why does this matter? Essentially, it means that the great principles of capi-
talism and free markets are no longer processed through the close scrutiny
of reason, but rather, the former being the only way to envisage the under-
standing of the real world, they are given for granted. In the end, conscious
thought may be exercised solely within the boundaries set by the theology.
With respect to the habitus, one has to underline the importance of
education. It is indeed education that ensures the expansion of social capital
and relays the Divine Parole. The educative process reduces the message to
its essence, i.e. the key representations that need to be spread in order for
the system to ensure its functioning. But in doing so, it both denatures and
radicalises it. Moreover, the message is essentially a negative discourse, which
constructs itself by rejecting and pointing out the flaws in other systems. A
prime example of this assertion is the association of capitalism and democra-
cy. As one remarked earlier, the very notion of progress entailed both science
and democracy. But in the course of the 20th century, as communism and
totalitarianism rose, capitalism was more and more associated with democ-
racy, becoming, in the end, a condition to the establishment and development
of democracy. Note that the process of education may be hazardous for the
system in itself as it promotes representations that are not consistent with its
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167
philosophy or may lead to actions inconsistent with the latter.
A Blind Faith
In many respects, one may say that the last two decades have witnessed an
unprecedented period of blind faith in the latest version of capitalism, namely
neoliberalism. The fall of the Soviet Union marked the triumph of capitalism
and its corollary, democracy (Fukuyama, 1992). What the economists call now
the Great Moderation could be depicted, in Fagel’s semantic, as the fifth awak-
ening, i.e. a blind faith in the ‘natural’ laws of markets. Two to three decades of
transmission of Samuelson’s principles and the relative failure of socialist capi-
talism led eventually to an enthusiastic if not zealous application of neoliberal-
ism whose ambition was to release the providential forces of the market.
First, it decided the implementation, by policy makers that
only partly understood the implications of their actions, of an un-
bridled globalisation. Again, this is not to say that globalisation is a
negative phenomenon (I am quite convinced it is positive), but it is
quite clear now that this rather was the resultant of dogmatic forces
(if not theological) than the product of cold reason. This resulted, in
many countries, in severe non-addressed competitiveness issues.
Second, it triggered the development of financial markets in a hazard-
ously deregulated environment. The example of derivatives perfectly illustrates
the latter assertion. In the mid-2000s, when it came to regulate derivatives in the
US, the American Congress that did obviously not understand the nature of the
matter, gave, in a sense, carte blanche to American banks to expand their activ-
ities recklessly, accounting for the ability of the market to regulate itself.
Thus, poor understanding of both the competitiveness of issues aris-
ing from globalisation and the financial innovation is, in a way, the cause of
the current crisis, whose point of departure was a blind faith in the market
and capitalism as whole.
From a Society With Markets to a Market Society
Regarding capitalism as a religion allows making certain comparisons. The
comparison of the history of Catholicism to that of capitalism, at least of their
structures, is worth highlighting. Interestingly, looking at the expansion of
the catholic faith, the tipping point is certainly its association to the Crone
of France, at a time when Clovis sought efficient administrative institutions
to rule his kingdom. Note that faith did not play a great role in this associa-
tion, the goal of Clovis being essentially instrumental. Then, in the course of
the following decades, religion expanded its influence and became the holy
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168
authority, being the only source of empowerment of government structures.
In short, one may say that the religious entity progressively reversed the bal-
ance of power, ultimately subordinating the political realm to its normative
supremacy. How does that fit with the history of capitalism? Capitalism being
the new religion, it is arguable that modern societies are still tripartite. Figure
2 presents the structure of the tripartite model:
In such a framework, in equilibrium (in the sense of sustainability), religious
and political power counterbalance each other (here priesthood and govern-
ment). Should the priesthood overcome government’s authority, it would put
the entire system at risk. In many ways, the history of capitalism resembles the
one of Catholicism. Thus, in its early conception, capitalism aimed to serve
humanity’s well-being (instrumental). Progressively and consistently with its
diffusion, the new secular religion gained momentum and counterbalanced
government authority. Ultimately, with the relative failure of socialist capital-
ism (interventionism), religious authority subdued governments, the condi-
tion to their legitimacy being related to their accomplishment regarding the
hegemonic theology. In sum, capitalism became an end in itself (Friedman,
1982). Symbolically, one may view the current crisis as the natural outcome of
a system in which: (i) the private sphere took advantage of the public sphere;
(ii) the priesthood’s doxa became an end in itself, subordinating governments
to its will.
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Conclusion
Voluntarily provocative, the ambition of this paper was to high-
light the partly theological nature of capitalism and show
that it can be considered as an essentially religious phenomenon.
Firstly, capitalism was described as a process of social devel-
opment finding its essence in the notion of progress seeking human-
ity’s well-being through the advances of the modern sciences and the
establishment of democracy. Following Weber’s definition, this sys-
tem is characterised by the release of the market forces in which the
pursuing of self-interest (entrepreneurial spirit) is the key element.
Then, considering religion as (in short) an organised system of
rites and beliefs seeking to provide an absolute understanding of the real
world while determining social actions, one concludes that, in many re-
spects, capitalism contains religious and theological dimensions. As a mat-
ter of fact, one may assume that social actions constitute rites while money,
due to its physical metaphysical nature, plays the role of divinities. Besides,
capitalism is highly transcendent. Indeed, it proposes no less that the salva-
tion of humanity via the alleviation of worldly poverty and the implementa-
tion of democratic principles. In addition, market laws are ascribed the tra-
ditional characteristic of God. Furthermore, economics, though it presents
itself as a modern science, presents metaphysical and theological elements
in its practice (rhetoric, models, and hypotheses). Accordingly, one may
envisage comparing capitalism, at least symbolically, to a religion.
Finally, this paper posits that religious capitalism bears significant
implications. From a sociological standpoint, it implies that capitalism be-
comes directly embodied at the individual level in the form of the habitus,
the latter determining conscious thought and actions. Doing so, it sets the
boundaries in which thought may be exercised. This, added to the distorting
nature of education that diffuses the great religious principles, is the point
of departure of developments that have characterised the two last decades.
These developments entail (i) a blind faith in capitalism and market laws,
(ii) the progressive transmission of power from the political to the religious
(economic) authority.
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170
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