“To Marx capitalism is rooted in irrationality but for Weber it is a reflection of rationality.” Discuss.

i) As per him, it is labour & not capital that generates value but it is increasingly pauperized.

ii) Capitalism breeds polarisation, first by eliminating all competition and then by forcing petty bourgeoisie to proletariat level.

Capitalist

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petty bourgeoisie

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proletariat

[Capitalist] | [Proletariat]

iii) Surplus is appropriated by paying less wages & gaining more profit.

iv) Capitalism itself facilitates homogenisation by factory settings & reducing purchasing power.

v) Further, separation from product, process, fellow workers & self creates alienation.

vi) Objective reality brings realisation in subjective state of mind leading to formation of true class consciousness. This leads to 'class for itself'.

vii) Class struggle and irrational nature of capitalism comes to an end due to socialism & ultimately Communism when means of production are held by all.

On the other hand, Weber visualises Capitalism as an epitome of rationality.

i) Capitalism is based on rules & regulations where profit is legitimately generated.

ii) It is manned by managers & administrative staff comprising Capitalistic bureaucracy, following legal rational authority.

iii) Further, capitalism brings ample opportunities leading to proliferation of middle class. (This was confirmed in Lipset's study)

iv) In his Protestant Ethic and Spirit of Capitalism, Weber highlights how rational values of profit making, reinvestment, hardwork, 'time is money' and so on are supported by Protestant ethics. Eg → doctrine of predestination, work is calling, all work is sacred, no spending on luxury.

v) As per Weber, despite substance & resources, whenever rationality is lacking, capitalism fails to grow symbolising their organic relationship.