The Rise of Capitalism 

We continue our discussion of how we living in the West survived The Organic Society and The Reformation. In Part III, we will look at the role capitalism played in creating the mess we are in. In Part IV, we will look at the role the scientific revolution leading to mechanism and determinism played in this process. In particular, Newtonian science. This was a perfect storm of three modes of thought that would change the world forever. 

All of these trends would lead us through Victorianism with its attendant evils of colonialism and the industrial revolution. Finally, humanities journey would culminate in the end of mechanism and determinism.

In Part II, we saw that Calvinism created values that honored work, thriftiness, and industry. Wealth was synonymous with God’s blessing. It is interesting to note that Calvin never addressed how one got wealthy, just that they were. One could cheat his neighbor, or rob the till. Calvin only said that wealth was a sign of God’s favor. Capitalism was an outgrowth of Calvinism. As competition for wealth and markets grew, businesses were forced to reduce wages in order to create higher profits. 

Although the Knights Templars were the first real capitalists, capitalism only became the cause celebre with the rise of Calvinism. Then everybody wanted a piece of the action. There were stages to capitalism.The Bourse (international currency exchanges) was created. Then the rise of mercantilism (colonies could trade only through the mother country). 

This was followed by the development of chartered companies granted by the king or governments. These charters granted to cooperative companies were initially restricted to limited geographical areas. 

With the development of colonialism, companies formed corporations again chartered by a king. This was the second stage of capitalism. The English were especially proficient at developing the charted company. 

We are all familiar with the thirteen colonies formed in the America. These corporations such as the Hudson Bay Company, the Massachusetts Bay Company, or the Virginia Company had unfettered power.

Often, they destroyed local culture, trade or commerce. As long as they didn’t exceed the authority of the king, they had a free hand to do pretty much as they pleased. If they tried to do so, the king would revoke their charter. The East India Tea. Company was really good at cultural destruction. It would take Ghandi  to get England out of India.

Finally the rise of joint-stock companies. It took about two hundred years for the American colonists to figure out how they were being ripped off by corporations. When they did the American Revolution started and the people took back their sovereignty  from the king.and vested it in the people. Power would come from the people, not the state or the king. If the people are sovereign, then the people have the right to revoke corporate charters that abuse their power.

In Part IV, we will examine how the scientific revolution was the third horse in the troika. This  rise in science would create a mechanistic and deterministic view of the world.