Victory of Reason: How Christianity Led to Freedom, Capitalism, and Western Success. Rodney Stark.NY: Random House, 2005.
By Michael Chapman, MBA Graduate Student
Rodney Stark makes no apologies in his in-depth look at what factors led to the rise and ultimate success of capitalism. Arguing pointedly against traditional theories (especially Weber's theory of the Protestant ethic) which claim that Protestantism was the driving force behind and instigator of capitalism, Stark claims that the Catholic monastic orders and the Italian city-states are to credit for the initial rise of what is now known as capitalism and free market economics.
For Stark, ultimately the one component that allowed Christianity to be the breeding ground for capitalistic thought and practice was its emphasis on reason. He claims that through the theological greats (such as Augustine and Aquinas), and the unique Christian theology of the "image of God," the Catholic Church was able to accept that humanity has an imperative to innovate and invent. These "Scholastics" helped innovate science by including theory along with traditional observation while still holding onto a firm belief in God. Through people such as Descartes, Galileo, and Newton, early Platonic and Aristotelian thought was refuted through this simple practice of theory and observation. Stark's ultimate claim on this point is that non-Christian religions were fatalistic in their approach to science, believing the earth to be a mystery, and therefore they had no motivation or reason to pursue a greater understanding of the world around them.
Many scholars have disregarded the period known as the "Dark Ages" as a time of unbridled feudalism wherein no progress occurred for the betterment of humankind. Stark clearly disagrees with this notion. In fact, Stark argues that it was this medieval period that was the initial impetus that got capitalism going. Through many practical and scientific innovations many areas of life were improved. Labor and agricultural productivity improved greatly through the innovation of windmills, better horse collars and iron shoes, new plows, fish farming, crop rotation, chimneys, eyeglasses, clocks and many others. Stark uses these examples to show just what occurred during the medieval period and to show that huge breakthroughs in productivity occurred constantly. The reason Stark's theories and research on many of these innovations are so important is due to the fact that it has been commonly believed that all of these innovations did not come about in the medieval period. Many historians have argued that these innovations either appeared in the period just following the medieval period, or that they were around long before the medieval period and there simply was no record of it. Stark claims this is fallacy is due to the speed in which these innovations caught on, most historians simply cannot believe that an innovation would spread throughout society with such force and speed.
Stark's other claim about these innovations and inventions is that most of them were initiated and perfected by the monastic communities. Stark uses example after example to show that the monasteries were the main places where these innovations happened. Fish farming occurred in monastic communities because monks could not eat fish, and therefore wanted increased fish stocks in order to better feed their members. There are many other innovations that Stark goes on to describe in the following sections. Innovations in warfare technology, shipbuilding techniques, land transportation, literature, art, and education all, in Stark's perspective, were caused or influenced by Christianity.
Stark then goes on to discuss how after a period of increased productivity, monasteries became very wealth and were able to hire labor, trade with others for goods, and eventually they began to lend money to others. This was the beginning of investments and banking as we know it; suddenly capitalism was born.Parts of capitalism had been around in all of society through exchanges of goods, and payment for labor, but Stark believes the first occurrence of modern capitalism was in these monasteries where there were free markets, property rights, free labor, increased productivity through reinvestment, and ultimately lending to others to increase economic growth in society as a whole.
Once lending became a more widespread phenomenon the Church had a dilemma on its hands. Traditionally, charging interest of any kind was viewed as usury and therefore was sinful. Stark recounts the process of reason that the Church went through to change its position on the practice of charging interest. Once this shift occurred in the theology of the church, banking and credit became legitimate. This led to the springing up of many local and international banking systems, focused mainly in the northern Italian city-states.
The last section of the book in devoted to the rise and success of "the West." Stark goes into great detail about commerce and economic development in Western Europe and the New World. Much of the growth that occurred in cities such as Antwerp, Burges, and Amsterdam is attributed, in Stark's view, to the Italian banking machine and the rise of Catholic, and eventually Protestant, influence. Typically this is the part in history wherein capitalism is seen most prominently and simultaneously where Protestantism is born. But, Stark claims that it was the medieval banking and agricultural improvements which laid a foundation for the success of the Protestant ethic.
From these cities in Western Europe, Stark then moves to the discovery of the New World by Spain and the establishment of colonialism in the north and the south of America. He uses these two colonial systems as a case study to show success and failure in establishing societies. Because the Spanish kingdom was a despotic state which controlled everything in its grip and lived off the resources gained from the New World, Stark shows that capitalism was not allowed to thrive, eventually causing the failure of the Spanish Empire, and the ultimate ruin of modern Latin America. In contrast, Stark recounts the beginnings of the American Colonies and shows that religious and economic freedoms were the things that allowed these colonies and the new nation to thrive and eventually become the powerhouse economy that it is today.
The last section of the book was not necessarily a revolutionary perspective on the historical progress of Western Europe and the New World, and some have criticized Stark for that. The reason the second half is important though, is because it all must be read in light of what Stark presents in the first half of the book, the revolutionary idea that capitalism actually began in the medieval era in places such a monasteries and Italian city-states. In that light, Stark presents modern Western history and Protestant ethic not as the driving force behind capitalism, but as a by-product of a system which was started long before Martin Luther and the Protestant Reformation even occurred.
This book was a great read and a fascinating account of the innovation that occurred during a period we often hear little about. It frames the Reformation in a much more holistic perspective, giving credit to the progress made in earlier generations, and I appreciate Stark for that. It is a concern though, that Stark largely disagrees with mainstream historians. This is not to say that we must always believe the mainstream perspective on history, but Stark makes some pretty new claims about the origins of capitalism and since this goes against the accepted understanding and retelling of history much more study should happen in order to find a balance and agreement. All in all this is a great read and a new perspective on an old tale of Christianity and the rise of capitalism.