Capitalism and Religion * [First Revision: June, 2015] Carl Mosk ** * This paper is a product of a larger study I intend to summarize in a book, tentatively entitled Purification and Progress: Religion in Economic Evolution. Comments would be much appreciated. However please do not cite without the permission of the author. ** www.carlmosk.com; e-mail:
[email protected] 1 Abstract The essence of capitalism is credit creation driven by the mobility of capital; the essence of religion is purifying faith. Pervading the great religions of the Classical Era – Judaism, nascent Christianity, Greek philosophy, Buddhism, Confucianism, and Taoism - was contempt for the merchant, nascent capitalism’s agent. To priests domestic merchants were corrupters, impure; to rulers foreign merchants – notably the nomadic peoples of the Central Asian Steppes adhering to the Central Asian Complex – were potential military enemies. Ultimately pummelled by invasions swirling out of Central Asian that terrified their elites, the great civilizations slipped into the Dark Ages, trade faltering. As the great civilizations recovered from the Dark Ages, the Central Asian Complex merged with Classical Era religions in two regions: Western Europe and Japan, spawning feudalism. Exploiting reviving opportunities for Eurasian wide trade, a new religion Islam emerged. It promoted capital mobility, putting down the roots of Merchant Capitalism. To stay competitive Islam’s most fervent enemy, Western Europe Christendom, gradually copied and adopted Islam’s innovations, notably the bill of exchange, laying the foundation for banks and stock markets. Drawing upon Greek learning as interpreted and updated by Islamic scholars, and exploiting domestic advances in manufacturing precision machinery, Western Europe slowly wedded Merchant Capitalism to a second form of capitalism, Technological Capitalism.