Essay prep - Is capitalism rational?

Paragraph 1 - Weber rational

Point: rational in it’s calculated foundations of labour, production and efficiency

Example: ‘Spirit of Capitalism’ instrumental benefits → high systematic efficiency

This means: production is prioritised and continuous reinvestment into the process leading to consistent growth with demand

However point: Hughes explains Weber does not only focus on the economic explanations for this rationality like Marx + Engels

Example: protestant ethics growth in industrialism (methodical discipline)

This means: efficiency of production was prioritised

Therefore: rationalisation was a long historical process effected by both economic and cultural forces

Paragraph 2 - Marx + Engels rational

Point: rational in it’s economic explanation only because there is maximised profit

Example: ‘The Communist Manifesto’ shows feudal relations could not keep up with growing production and demand of a newly industrial society

This means: private ownership replaced old system → increasing class division → developed the bourgeoise through hugely profitable and efficient factories

However point: Dillon recognises Marx + Engels only believe this is rational economically for the bourgeoise, not the proletariat

Example: Workers are only given enough to survive while private owners collect surplus value

This means: Workers are alienated from production and their own work

Therefore:

Weber + Marx = capitalism can be economically rational

Weber = capitalism is not just rational because of economic benefits, it is rationalised because of other cultural influences

Marx + Engels = capitalism is only rational in terms of economic benefits because those benefits are created from material forces off of class division

Paragraph 3 - Weber irrational

Point: Weber agrees that capitalism is irrational for the individual as it isolated them within their respective systems

Example: Hughes suggests Weber saw bureaucracy as the organisational form of capitalism as it is founded it concrete rules and roles, trapping workers in a single activity

This means: Weber agrees with Marx + Engels because of their concept of alienation

However point: Hughes highlights Weber takes the concept of alienation further through his metaphor of the ‘iron cage’

Example: it explains rational systems dominate the individual an impersonal institution, or ‘iron cage’

This means: in ‘The Spirit of Capitalism’ Weber explains, although capitalism is economically rational for the whole group, individually, there is no fulfilment or happiness

Therefore: bureaucracy is the most extreme form of rational capitalism because economic efficiency undermines autonomy, creativity and purpose

Paragraph 4 - Marx + Engels irrational

Point: Similarly, capitalism is irrational for the individual worker with a focus on how class division is maintained through this system

Example: Dillon argues the rigid division of labour reduces freedom of creativity through alienation

This means: however from the claims of economic rationality and high profit, workers accept their roles which serves purely capitalists as they do not reap the fruits of their labour

However point: Marx + Engels explain in ‘The Communist Manifesto’ this ideology reduces workers to commodities

Example: inequality and alienation appear natural so workers accept their isolating roles

This means: this discourages revolutionary potential meaning although capitalism is irrational for workers, it is accepted

Therefore:

Weber + Marx: capitalism is irrational for the consequences of human livelihood

Weber: focuses on loss of meaning in work, and bureaucratic domination

Marx + Engels: the ideology behind accepting irrationality through exploitation, alienation and class oppression using economic structures

Weber:

‘The Spirit of Capitalism’ - 1904

Hughes:

‘Understanding Classical Sociology’ - 1995

Marx + Engels:

‘The Communist Manifesto’ - 1848

Dillon:

‘Introduction to Sociological Theory’ - 2009