Religion and the Rise of Capitalism · Chapter
II: Religious and Social Policy explained
This chapter examines the collision between medieval economic ethics, upheld by the English Church, and the rising commercial capitalism of the sixteenth century.
What happens
This chapter examines the collision between medieval economic ethics, upheld by the English Church, and the rising commercial capitalism of the sixteenth century. It focuses on the controversy over usury as the central issue, the persistence of traditional moral teachings after the Reformation, and the complex role of the Tudor state in mediating between religious ideals and economic pressures.
Themes in this chapter
Conflict Between Ethics and Economics
The chapter centers on the struggle between the Church's traditional moral teachings on usury and fair bargaining and the aggressive expansion of commercial capitalism.
The Role of the Church in Society
The Church is depicted as the guardian of economic morality, but its authority is challenged by economic change and its subordination to the state after the Reformation.
Transformation of Social Ethics
The chapter traces the shift from medieval social theory, which insisted on equity in bargaining, to a more individualistic and capitalist ethic, despite the Church's resistance.
Characters to notice
- The Church
The Church is presented as the guardian of traditional economic morality, struggling to maintain its authority against the rise of commercial interests.
- Dr. Thomas Wilson
Wilson, a Tudor official, defended the value of canon law and traditional Church teachings on economic ethics, illustrating the continuity of medieval social theory.
- Thomas Aquinas
Aquinas is cited for the medieval principle that a fair contract benefits both parties equally, forming the basis of the Church's economic ethics.
- Philip Melanchthon
Melanchthon is referenced as an authority in a memorandum on usury, showing the continued reliance on Reformation-era theologians alongside medieval thinkers.
- William Cecil
Cecil is quoted regarding 'the license grown by liberty of the Gospel,' reflecting the state's concern for maintaining social order through traditional moral standards.
Key passages
“Treasure doth then advance greatness, when the wealth of the subject be rather in many hands than few.”
Bacon argues that national prosperity is best served when wealth is widely distributed among many people rather than concentrated in a few.
This quote illustrates the distributive ideal of Tudor society, contrasting with the concentration of wealth that accompanied commercial capitalism.
“a contract is fair, St. Thomas had said, when both parties gain from it equally.”
According to St. Thomas Aquinas, a just transaction benefits both sides equally.
This principle underpins the medieval economic ethics that the Church sought to uphold against the exploitative practices of moneylenders and engrossers.
“Poor sillie Church of Christ, that could never finde a lawfull usurie before this golden age wherein we live.”
The Anglican divine sarcastically remarks that the Church had never discovered a legitimate form of usury until the current prosperous era.
This reflects the tension between the Church's traditional condemnation of usury and the emerging acceptance of interest in commercial society.