The spirit of capitalism
Decades ago, while I was working at the Malawi Embassy in Bonn, I boasted to a French lady who was then one of our secretaries, that I was a bourgeois. She laughed and laughed: “Are you a bourgeoisie?”
The term marginally meant a member of the middle class. Then it developed to mean a selfishly materialistic fellow. It also implied a non-communist. It was in the sense of being a non-communist that I dubbed myself bourgeoisie.
Mention this term and then you have the near equivalent of a capitalist. This is a person who lives frugally, saves money and starts businesses to make money. He makes money not to enjoy it but to make more money for he lives an ascetic life.
Why should a person live this kind of life? In his essay (1904-65) titled The Spirit of Capitalism, Max Weber, the German sociologist identified this with Protestant ethics of the time where it was preached that, work is worship while basking in luxury was seen as exposing oneself to the devil.
To some people, capitalism was seen as evil, a method of acquiring wealth through crookedness. These critics advocated socialism and communism, systems of production where factors of production are not only owned by a few individuals but by the State and everyone else is an employee.
The quintessence of communism was achieved in 1918 with the Russian revolution while the milder form of it called socialism gained popularity at the end of World War II.
As time went on, it was found that while socialism and communism might be more generous in distributing wealth and combating inequality it was capitalism that was better at increasing wealth and developing the economy. Today, socialism and communism have taken a backseat in current affairs.
Max Weber observed the spirit of capitalism in the teachings of Benjamin Franklin, one of the founding fathers of the United States. Through his autobiography, Franklin urged the following principles to be followed by a businessperson.
The value of time. Remember that time is money. Have you got something to do tomorrow? Do it today. Another American business tycoon W. Clement Stone said, “Do it now.” Franklin said, “be ashamed of catching yourself idle.” On credit, remember that credit is money. Money borrowed incurs interest to make up for what the money could have been used for had the lender withheld his money. Money can beget money and its offspring can beget more money. He that kills a breeding pig destroys all her offspring to the thousands generation.
On punctuality. He that is known to pay punctually and exactly to the time he promises may raise all the money his friends can spare. After industry (hard working) and frugality nothing contributes more to the raising of a young man in the world than punctuality and justice in all his dealings. Therefore, never keep borrowed money beyond the time you promised.
A German cynic lampooned capitalism by saying, “they make tallow out of cattle and money out of men.”
The capitalism spirit if Benjamin is suffused with moral precepts. Honesty preached as the sure way to acquiring credit (borrowed money) with which one may extend a business. Wealth should be amassed through industry and frugality. Sloth should be shunned. “Seest thou a man diligent in his business? He shall stand before kings,” says the Bible in Proverbs (11:29).
This maxim reminds me of Johnson H Johnson proprietor of the magazine Ebony in the United States. He was born the son to a domestic servant or housemaid. After his success he got photographed with most of the Presidents of America, in Africa with Kwame Nkrumah of Ghana, Jomo Kenyatta of Kenya, others, Dame Margaret Thatcher of Britain and Mrs Golda Meir who at one time was the Prime Minister of Israel.
Honesty is not always the shortest route to wealth. But those who have turned to robbery, bribery and murder to amass abundant riches often do not enjoy sleep. They are always anxious in case someone unravels their unlawful activities.
How do people develop a culture that is conducive to the growth of capitalism? Maybe this begins with a societies elite. If the top layer of society is made up of hardworking, honest people, the people below develop the same culture.
