Reinvestment of Profits or Disciples of Jesus?
In his book, The Protestant Ethic and the “Spirit” of Capitalism and Other Writings, Max Weber (1864-1920) utilized his professions of sociology and history to investigate the causality of modern capitalism and the religious forces of his day known as the Protestant Reformation. It is important to note that his work is considered a classic, and based on the editor’s introduction, Weber was not attempting to answer the question of whether religious forces, as well as economic ones, paved the way for the characteristics of Western capitalism.[1] Instead, he wanted to carve out a niche of thinking for others to interrogate and perhaps expand upon in years to come. And from that standpoint alone, his work has been highly successful and the source of countless analyses and academic discussions. As a result, generations have revisited his work to explore the impact of capitalism on culture using a multitude of cross-disciplines, religion, economics, business ethics, and social sciences.
His work’s central theme was linking Calvinism with the then-emerging spirit of capitalism. Weber postulates that the religious concept of “calling” or profession resulted from the Calvinistic view of predestination. As we read earlier in Bebbington’s work, Evangelicalism In Modern Britain, one of the early consequences of the Protestant Reformation was that many Christians were anxious about whether they were saved. Because there was a school of thought among Protestant Reformation theologians to console the congregants that if they worked hard and cared for their families and neighbors, it would alleviate their anxiety. The intent was to assure congregants that hard work was a way to prove God had already saved them. So, one can see how Weber connected the religious concept of the Calvinist work ethic to his body of work. However, in his dissertation, Evangelicalism and Capitalism: A Reparative Account and Diagnosis of Pathogeneses in the Relationship, Dr. Jason Clark notes that Weber misunderstood Calvin’s doctrine of predestination.[2] Dr. Clark also brings into the analysis the work of Guy Oakes to demonstrate that Weber was on the right track with tracing the Protestant work ethic and the spirit of capitalism. It was not, however, based on the doctrinal premise of Calvinism.[3]
Weber’s starting point was to contrast his culture’s traditional ethics or values governing their personal lives with the new business developments. Traditionally, clear codes of conduct governing one’s life were primarily based on religious absolute moral standards. Weber questioned the veracity of whether people should be expected to conduct their lives according to religious values at home and within the context of work. The intersection of these social constructs (heavily influenced by religion) and business or economic constructs has been and still is at the heart of the faithful person’s dilemma.[4] To compound the cross-pollination of ideas was the ascetic work ethic of Calvinism which frowned upon spending money on luxuries or worldly things. However, it did not discourage making money. According to the journal article, Revisiting the Protestant Ethic and the Spirit of Capitalism by Patricia Carr, the Calvinist was morally obligated to forego short-term gratification in the interests of long-term profitability as a result of reinvestments into the business. And it is this modern bourgeois rational spirit of capitalism that emerged that Weber ascribes to Calvinist puritan sects.[5]
Three things to note before I close. First, during Weber’s era, there was the beginning of a breakdown of traditional or societal values that influenced how one should conduct their life (personally and professionally). Things were moving from traditional values to more modern values. The individual and not society were now shaping correct behavior.[6] Now, fast forward to the 21st Century. Gen Zers and Millennials will move from one job to the next with little regard for company loyalty. Many, at least in my extended family in this age group, rarely give a two-week notice. The individual wholly owns correct behaviors.
Secondly, let’s revisit the Calvinistic ascetic work ethic that is inherently prescribed to reinvesting monies into businesses. Is there a correlation between the rise of many Christian companies in the United States in the 17th Century with the ascetic work ethic? Did the Calvinist ascetic work ethic fuel the triumphant surge of these Christian businesses/organizations in the 17th Century listed below?
- The Salvation Army (1865)
- YMCA (1844)
- The Red Cross (1863)
- Bible House Publishing (1869)
- Methodist Book Concern (1880)
- Sunday School Union (1890)
- The Christian Herald (1878)
- The Christian Science Monitor (1908)
Lastly, this profit reinvestment also led me to inquire about the state of churches in the US. We know that churches have a non-profit status – but what do churches do with the monies collected? The answer came as quite a surprise to me. According to several data collection sources, as of 2022, congregations in the US collect around $74.5 billion each year. US faith-based institutions account for a combined yearly revenue of more than $378 billion.[7] (Note: A Fast Company report placed the collections at $50 billion in 2014 – so the $74.5 billion is easy to fathom.) The most exciting aspect of this is that churches in the US act like a business in the following ways: they compete with one another, they generate profit, they are legal entities, they have loopholes to maximize profits, and those that succeed financially typically scale that success through planting new churches. So, the question becomes, are churches in the business of fanning the flames of capitalism or making disciples, feeding the poor, and taking care of the orphans?
[1] Max Weber, The Protestant Ethic and the “Spirit” of Capitalism and Other Writings, (New York: Penguin Group, 2002), ix.
[2] Dr. Jason Paul Clark, Evangelicalism and Capitalism: A Reparative Account and Diagnosis of Pathogeneses in Relationship, (” (2018): 81, https://digitalcommons.georgefox.edu/gfes/132,.
[3] Ibid., 94.
[4] Peter Ghoush, What Did Max Weber mean by the “Spirit” of Capitalism?, https://aeon.co/ideas/what-did-max-weber-mean-by-the-spirit-of-capitalism
[5] Patricia Carr, Revisiting the Protestant Ethic and the Spirit of Capitalism: Understanding the Relationship between Ethics and Enterprise, Journal of Business Ethics
Vol. 47, No. 1, Small Business and Empirical Perspectives in Business Ethics (Sep., 2003),13.
[6] Peter Ghoush, What Did Max Weber mean by the “Spirit” of Capitalism?, https://aeon.co/ideas/what-did-max-weber-mean-by-the-spirit-of-capitalism
[7] Michael Singer, Some Fascinating Church Revenue Statistics To Show The Growth Of This Religious Charitable Institution, https://www.enterpriseappstoday.com/stats/church-revenue-statistics.html NOTE: Fast Company Article: Church Giving Tops $50 bil a year (2014) https://www.fastcompany.com/3039328/church-giving-tops-50-billion-a-year-in-us-and-its-future-is-not-a-collection-plate
About the Author
Audrey Robinson
9 responses to “Reinvestment of Profits or Disciples of Jesus?”
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Audrey,
Excellent review of what Weber and Dr. Clark have discussed in their writings. I appreciated hearing from your voice.
I like some of your final points. I think this will always be good to revisit:
“We know that churches have a non-profit status – but what do churches do with the monies collected?” I am curious how a church comes up with best practices in allocating funds.
Kristy, great question. There was some data on how the monies are allocated but I didn’t have time to do a deep dive. However, it does appear that the denominations have the majority of money in the Protestant arena. The Catholic Church was the richest – worth about $30 billion.
Audrey,
I always enjoy reading your posts! For me, they always seem thoughtful and engaging. I was intrigued by your question, “are churches in the business of fanning the flames of capitalism or making disciples, feeding the poor, and taking care of the orphans?” The sad part is that I have to question this myself. I know plenty of churches do this day in and day out but then we have some that are questionable.
Daron, thank you for your comments. It is sad because so many authentic pastors and leaders toil every day to serve and meet the needs. But somewhere Western Christianity has gotten off track.
I loved your post, Audrey. I agree with you wholeheartedly on your entire post but I’d like to push back for the sake of discussion on your comment “The most exciting aspect of this is that churches in the US act like a business in the following ways: they compete with one another, they generate profit, they are legal entities, they have loopholes to maximize profits, and those that succeed financially typically scale that success through planting new churches.”
I think this is true for many. It’s sad actually, however, there are many churches that can almost not make it through the week and struggle to keep their doors open. I think perhaps the mega-churches that gobble up local members from smaller churches should help support that smaller church in some way. Either way, my point is that although your statement is right on target, I don’t think it’s fair to lump all non-profits and churches into that mindset. Some congregations are extremely generous, others barely make it, and unfortunately, there are many with the mindset of capitalism that takes advantage of systems and government opportunities.
Michael, I agree with you that it is not fair to lump all churches into this group. Personally, I do not see what’s wrong with the church having a business mindset. But what is the intent of the profits?
I think based on recent data, it appears many denominations have lots of money, and the pastors out in the field laboring with the flock are struggling to make ends meet. My husband and I were talking about the revenue that churches are making and it almost feels like the corporations that have CEOS getting huge bonuses and the workers are barely making ends meet.
Audrey,
Great summary of Weber and Clark. So many good points – in particular the question of the rise of Christian organizations in the 17th century (18th/19th century) United States. I agree that “calling” is at the center of what drives the individual and the organization. It’s connection to connection to capitalism does need be critiqued but is it a detrimental notion?
I don’t believe that it is mutually exclusive to be “capitalistic” and make disciples. What characteristics would you ascribe to those who are making disciples apart from capitalist perspectives?
Chad,
At its core, I don’t think a church that has a capitalistic mindset and does the work of the Lord is mutually exclusive. Characteristics, good question. Financial accountability and transparency from the very top are definite requirements.
Secondly, measuring the impact on communities. More than just how many Angel tree gifts were given out each Christmas holiday. For example: Measure how many lives were changed because of financial support, pay for parents to get counseling to become better parents, and addiction counseling. There are sprinklings – but I suspect our overall impact is negligible. What is being done outside of the four walls?
It’s ironic, becoming successful and building buildings can lead to these things becoming monolithic systems that can drain budgets just to maintain. Hope that makes sense.
I enjoyed reading this post. I only wish that I could see more of the church planting with the income communities rather than the pocketing. Is the use of funds in your community seen by the people?