Werner Sombart and the “Spirit” of Modern Capitalism 1900–1910

This chapter is an examination of Werner Sombart’s contribution to the exploration of the genesis and the essence of modern capitalism. Sombart’s Der moderne Kapitalismus broke ground, not only for his investigation into the rise of modern capitalism but because he did so in a relatively objective manner. Sombart surprised many people because they had read his earlier socialist-leaning works and some had expected something similar. Instead, Sombart’s two volumes are relatively clear accounts of the conditions that gave rise to modern capitalism and how capitalism differed so significantly with the feudal economies. The craftsman was relatively indifferent to competition; the modern capitalist was focused on minimizing it if not eliminating it. The feudal craftsman focused on his handiwork and cared little about any income; the entrepreneur has little concern about his products because his single focus is on the accumulation of money. The craftsman was proud of his skills; the capitalist used his means toward the ends. Rationality, calculability, and marketing were simply means to more profit. This chapter also contains an account of Sombart’s Proletariat, which was focused on the effects of modern capitalism on workers—in terms of working conditions, living arrangements, and physical and mental health issues.