The Protestant Sect Credit Machine Social Capital and the Rise of Capitalism

The new economic sociology contends that personal relationships and trust play key roles in structuring economic activity. Max Weber's 1906 essay, 'Churches and Sects,' epitomizes the new economic sociology argument. The piece not only details the origins of and individual motivations behind social capital formation in sects, it also shows how congregation-based social capital facilitated the emergence of capitalism in America. I supplement Weber's work with that of contemporary scholars to provide social-capital-based explanations of capitalism in northern Italy, the Netherlands, and England, all emphasizing the significance of credit.