For Weber the key characteristic of modern capitalism is that it is rational, it is based on the competitive dynamic of market forces, the costs and benefits of such factors of production as wages and labour, on the likely returns of a given amount of investment and, in particular, on the pursuit of profit. This spirit of capitalism is not limited to a few adventurous entrepreneurs but is all-pervasive, underlying the way of life of whole societies. In his work on early Protestantism Weber noted a strong affinity between such economic values and those of the more puritanical sects that arose after the Protestant reformation- Calvinists, Lutherans and Wesleyans.
Weber notes that while Catholicism taught that poverty was the pathway to salvation and that heaven was in the next world, Puritanism declared personal wealth to be a sign of God’s favour, a visible symbol of the elect few who were predestined for salvation. By working hard and growing rich, Calvinists sought to convince themselves that they were the chosen few, and so profit making became a psychological release from the fear of damnation. However, and this was crucial to the spirit of capitalism, such wealth must not be squandered but saved and invested as a means to further profits and for the greater glorification of God. This desire to save rather then spend provided the spirit of investment so vital to the development of the Industrial Revolution.
Marx and Weber’s views on the origin of capitalism are strikingly different, but their views on the dynamics caused by capitalism are very similar. They both have an interesting vision on the effect capitalism will have on the human spirit. Marx believes as capitalism grows, competition will increase causing power to fall into less and less hands until there are only two classes left, "the property owners and the property less workers (Marx, 70)." This relationship will cause the worker to become more and more exploited creating alienation between him...