GERRIT GORTER
The present study of economics did not, of course, come out of thin air. Although thinkers in classical Greece already reflected on what we now call economics, it was largely in the eighteenth century that systematic thought on the subject began.
Two conceptual tools—the economic cycle and the idea of the invisible hand—date from that century and are still in use today, both in academic research and in education.
This site contains twenty-five portraits of important economists. Each offers a biographical sketch together with an indication of his (and, in one case, her) significance for the development of economic thought. They claim no more than to provide a first introduction to the lives and works of these pioneers.
These articles originally appeared in Dutch in the Tijdschrift voor het Economisch Onderwijs and were published on the website of Gerrit Gorter. The English translations are by Folkert Gorter.
Index
François Quesnay
Adam Smith
Thomas Robert Malthus
Jean-Baptiste Say
David Ricardo
Antoine Augustin Cournot
John Stuart Mill
Karl Marx
Walras
Carl Menger
Alfred Marshall
Vilfredo Pareto Eugen von Böhm-Bawerk
Knut Wicksell
Max Weber
Irving Fisher
Sam de Wolff
John Maynard Keynes
Joseph Alois Schumpeter
Joan Robinson
Jan Tinbergen
John Hicks
John Kenneth Galbraith
Milton Friedman
Paul Samuelson
Max Weber
Prussia 1864–1920
The German sociologist and economist Max Weber, born in 1864 in Erfurt, had a particular interest in the phenomenon of religion. In fact, he was interested in almost everything, and didn’t treat any of his interests lightly. No wonder he eventually suffered a nervous breakdown and was unable to work normally for twenty years. His breakdown was likely also connected to a huge falling-out with his father. When his father died seven weeks after the outburst — without Max having seen him again — he fell into a deep, guilt-fuelled gloom.
Weber was appointed professor of Nationalökonomie und Finanzwissenschaft at the University of Heidelberg at the age of 32. The institution, however, didn’t benefit much from Weber’s appointment, due to his aforementioned breakdown. In 1903, Weber traveled to the United States — a trip that seems to have done him good and may well have given him new energy. Shortly thereafter, he published what would become his most famous book: Die protestantische Ethik und der Geist des Kapitalismus (The Protestant Ethic and the Spirit of Capitalism). Initially, it consisted of two essays, written in 1904 and 1905 respectively. In them, Weber explored the role of religion in the emergence of capitalism.
Unbridled greed is often seen as the foundation of capitalism. Greed does, of course, play a role — but according to Weber, capitalism was above all rational and orderly. It was no coincidence that the kind of capitalism we know today spread in the 16th and 17th centuries alongside Protestantism — particularly Calvinism. According to Weber, there is a certain irony in the fact that Calvinism condemns greed and even promotes a sober and frugal life — and that it was precisely these qualities that helped foster the development of capitalism. Calvinism emphasized values such as discipline, diligence, seriousness, rationality, and thrift — precisely the kinds of traits that, for example, made Dutch merchants successful in the 17th century and gave rise to their own form of (mercantile) capitalism.
With a bit of good will, one can still find “evidence” for what is often called the Weber thesis. According to the British historian Niall Ferguson, Weber remains as relevant as ever. He pointed out that Americans work significantly more hours per year than Europeans. Apparently, a different work ethic prevails in the U.S. than in Europe. According to Ferguson, it is no coincidence, then, that Americans are also much more religious than Europeans. Atheism is rare in the United States, whereas in Europe, 15 percent of the population identifies as atheist. Church attendance is also significantly higher in America — double that of Europe. Undeniable proof of such connections is unlikely ever to be found — but they remain fascinating hypotheses. Hypotheses that, unsurprisingly, did not go unchallenged. It was pointed out, for instance, that capitalism first flourished in the Italian cities of the late Middle Ages — cities that were predominantly populated by Roman Catholics.
Meanwhile, Weber certainly did not lead a Calvinist life. He had little interest in churchgoing — but greatly enjoyed late-night drinking sessions with his friends, often followed by swims in the river. His legendary argument with Joseph Schumpeter at the Viennese café Lantmann over the significance of the Russian Revolution has gone down in history. Schumpeter saw the revolution as a useful laboratory. “But a laboratory filled with corpses,” Weber is said to have replied. Another remarkable feat was his two extramarital relationships — with the full consent of his wife. In fact, for a time, he lived with all three women under one roof. After his death, a close friendship even developed between his wife and one of the girlfriends. Weber died in harness, still fully engaged in his work. He contracted pneumonia and died in 1920, at the age of 56.