The Victory of Reason

1. Christianity's Unique Embrace of Reason Fueled Western Progress

While the other world religions emphasized mystery and intuition, Christianity alone embraced reason and logic as the primary guide to religious truth.

Rational theology. Unlike other major world religions that often conceived of the divine as inexplicable or impersonal, early Christian theologians, influenced by Greek philosophy but surpassing its religious impact, taught that reason was God's supreme gift. This foundational belief allowed for a "theology of deduction and inference," where doctrines could evolve and be refined through logical inquiry, fostering a unique "faith in progress." This intellectual framework was crucial for future advancements.

Foundation for science. The Christian image of a rational God who created a lawful, stable universe provided the essential premise for scientific inquiry. Scholars like Nicole d'Oresme saw God's creation as a clock, implying discoverable mechanisms. This conviction, as Alfred North Whitehead noted, was "derivative from medieval theology," enabling the belief that nature's secrets could be unveiled. This contrasts sharply with:

• China: Intellectuals pursued enlightenment, not explanations, due to impersonal divine essences.
• Greece: Gods were inadequate creators, the universe was cyclical, and inanimate objects were personified, hindering physical theories.
• Islam: Allah's active intrusion on the world led to theological blocs condemning natural laws as blasphemy.

Moral innovations. This rational theology also spurred profound moral advancements. Christianity fostered a strong sense of individualism, emphasizing free will and personal salvation, which was revolutionary in a world of collective identities. This led to the development of moral equality and human rights, culminating in the medieval church's unique opposition to and eventual abolition of slavery in Europe by the tenth century, a feat unmatched by other major faiths.

2. The "Dark Ages" Were a Period of Remarkable Innovation, Not Stagnation

Instead, during the so-called Dark Ages, European technology and science overtook and surpassed the rest of the world!

A historical hoax. The notion of the "Dark Ages" as centuries of ignorance and misery is a myth propagated by anti-religious Enlightenment intellectuals. In reality, the period following the fall of Rome, freed from Roman despotism, witnessed an extraordinary outburst of technological and intellectual progress that laid the groundwork for Western dominance. This era saw rapid and widespread adoption of innovations, driven by a Christian culture that celebrated "exuberant invention."

Technological leaps. Medieval Europeans pioneered nonhuman power, with thousands of water-powered mills (one for every fifty families in England by 1086) and windmills reclaiming land. They revolutionized agriculture with:

• The padded horse collar, allowing horses to pull heavy loads faster than oxen.
• Iron horseshoes, preventing lameness and improving traction.
• The heavy, wheeled moldboard plow, doubling crop yields in northern Europe.
• The three-field system, increasing productive land from 50% to 66%.
• Fish farming, a major industry due to church dietary rules.
  Crucial indirect inventions included chimneys, eyeglasses (mass-produced by 1284), and dependable mechanical clocks, which enabled precise scheduling and coordination.

Cultural and military advancements. High culture flourished with the invention of polyphonic music, the development of instruments like the pipe organ, and a system of musical notation. Romanesque and Gothic architecture, sculpture, and stained glass were original and powerful. Vernacular literature was formalized by giants like Dante and Chaucer. The university, a uniquely Christian invention, emerged as a center for higher learning and scientific inquiry. Militarily, the Dark Ages saw the rise of heavy cavalry, the rapid adoption of cannons (first used in battle by 1324), and naval innovations like the sternpost rudder, round ships, and the magnetic compass, enabling global exploration and dominance.

3. Freedom from Despotism Was Essential for Economic and Political Flourishing

Empires are the enemies of progress!

Tyranny's economic toll. Despotic states, exemplified by ancient China or the Ottoman Empire, inherently stifle economic development. Rulers focused on extracting maximum wealth lead subjects to hoard, hide, or underproduce, as any surplus is vulnerable to confiscation. This creates "command economies" where markets and labor are coerced, not free, and wealth is consumed in display (e.g., pyramids, Taj Mahal) rather than invested productively. The Chinese iron industry, once booming, was destroyed when Mandarins imposed a state monopoly, fearing commoners' wealth.

Christian roots of liberty. The fall of Rome, rather than a tragedy, allowed for the emergence of smaller, more responsive political units. Christian theology provided the intellectual bedrock for political freedom, asserting a revolutionary conception of moral equality. Jesus's actions and Paul's admonitions (e.g., "neither bond nor free... all one in Christ Jesus") laid the groundwork for individual rights. The church, having suffered persecution, never fully embraced the state, leading to the concept of separation of church and state.

Limiting state power. Christian thinkers like Augustine questioned the state's fundamental legitimacy, viewing kingdoms as "great robberies." Later theologians, including William of Ockham, argued that private property was a human right preceding sovereign laws, thus limiting rulers' ability to arbitrarily seize property. The Magna Carta (1215) explicitly enshrined these principles in England, guaranteeing church freedom, property rights, and merchant liberties, effectively taming the state and laying the foundation for individual freedoms. European disunity, driven by geography, fostered competitive "statelets" where people could seek greater liberty, further nurturing responsive governance.

4. Italian City-States Perfected Capitalism Through Rational Firms and Financial Innovation

Although capitalism was carefully defined in Chapter 2, more needs to be said about why it is able to so transform the wealth of nations.

Rationalized business. The relatively free and well-located city-states of northern Italy (Venice, Genoa, Florence, Milan) became the crucible where capitalism was perfected. This involved the creation of "rational firms"—organizations managed by calculable rules, meticulous record-keeping (including double-entry bookkeeping by the 13th century), and clear hierarchies. These firms prioritized merit-based hiring and promotion, often recruiting from "abacus schools" that trained highly numerate and literate individuals, ensuring a skilled workforce and management.

Financial ingenuity. Italian firms revolutionized finance to support complex, long-distance trade. They developed:

• Banks of deposit: Evolved from money changers, allowing for cashless transfers.
• Bills of exchange: Notarized documents authorizing distant payments, minimizing risks of transporting cash (e.g., Pope John XXII's convoy ambush).
• Insurance: Syndicates of investors guaranteed shipments for a premium, spreading risk across many ventures (e.g., 1396 Majorca-Venice wool cargo).
  These innovations transformed commerce from "adventure" into a routine, calculable enterprise.

International reach and "Puritan" ethics. Italian banks, like the Riccardi and Medici, became international "supercompanies" with branches across Europe, coordinating vast trade networks and even financing kingdoms. Despite their wealth, many firms incorporated charitable giving, making the poor "partners in the company." The rise of Italian capitalism was also accompanied by an ascetic, proto-Puritan movement, the Humiliati, and the widespread adoption of sumptuary laws promoting frugality. This demonstrated that a "Protestant ethic" of work and thrift predated the Reformation by centuries, challenging Weber's thesis. The Black Death, while tragic, ironically boosted the economy by creating labor shortages, raising wages, and increasing purchasing power, further fueling capitalist expansion.

5. Capitalism Migrated North, Thriving in Free Cities and Driving English Industrialization

If Holland had once been reclaimed from the Atlantic, now the ocean rescued the Dutch by providing superb defensive water barriers.

Flanders' woolen boom. Capitalism spread from Italy to northern Europe, initially through Italian "semicolonial" firms reorganizing the Flemish woolen industry. Guilds in cities like Bruges and Ghent had previously stifled innovation and growth with restrictive rules and fixed wages. Italian bankers, with their advanced business methods, integrated the entire production process, from importing English fleeces to exporting finished cloth, leading to immense gains in productivity and efficiency. This influx of capital and management transformed Flanders into a manufacturing giant.

Antwerp's golden age. Bruges became a dominant financial and trading center, but Antwerp, with its newly scoured deep harbor and strategic location on the Scheldt River, surpassed it by the late 15th century. Antwerp became the world's financial hub, handling vast volumes of trade and major European loans. Its success was built on:

• Freedom and tolerance: Minimal restrictions on merchants and trade, attracting entrepreneurs from across Europe.
• Advanced financial markets: Two bourses, one for commodities (including futures) and one for financial paper.
  Antwerp's prosperity, achieved as a profoundly Catholic community, further disproved the Protestant ethic thesis.

English industrialization. English capitalism, also initially spurred by Italian influence in the woolen trade, developed uniquely due to widespread freedom and secure property rights across the entire realm, not just in cities. This allowed industries to decentralize and thrive in rural areas, leveraging waterpower. The "Industrial Revolution of the Thirteenth Century" began with the water-powered fulling mill, dramatically increasing efficiency in cloth production. This technological innovation, combined with favorable government policies (e.g., export duties on raw wool), propelled England to global dominance in woolens. The English then applied these lessons to other sectors:

• Coal power: Rising wood prices in the 12th century spurred the adoption of coal, leading to innovations in mining (pumps, ventilation) and transportation (rail systems).
• Metallurgy: Blast furnaces and improved casting techniques enabled the production of superior iron goods, including cannons.
  This continuous cycle of innovation, driven by capitalist investment and a free society, laid the foundation for England's global economic and military power.

6. Spanish and French Despotism Stifled Capitalism and Led to Economic Stagnation

Empires are the enemies of progress!

Spain's illusory wealth. Despite its vast New World empire and immense imports of gold and silver, Spain itself remained a feudal, underdeveloped nation. The wealth from the Americas, coupled with crushing taxes and church extractions, primarily financed massive armies and staggering debts, leading to repeated bankruptcies. Spain lacked manufacturing, relying on imports for goods and even food, and its agriculture was hampered by institutions like the Mesta. The "grandeur" of the empire masked Spain's internal economic stagnation, which was often mistaken for a "decline" from a non-existent golden age.

Destruction of Italian and Flemish capitalism. Spanish imperial expansion actively suppressed capitalism in its European territories. Milan, Genoa, and Florence, once vibrant capitalist centers, succumbed to Spanish control, leading to economic stagnation through:

• Oligarchic rule: High taxes, favoritism, monopolies, and usurpation.
• Suppression of innovation: Venice, though independent, saw its industries decline due to excessive taxation (over 40% on woolens) and guild-enforced resistance to cost-cutting technologies.
  In the Spanish Netherlands, Philip II's religious intolerance and brutal repression by the Duke of Alba (e.g., the "Spanish Fury" in Antwerp) destroyed the region's thriving capitalist economy. The blockade by Dutch "Sea Beggars" and the subsequent exodus of firms and skilled workers to Amsterdam cemented Antwerp's demise.

French stagnation. France, under its absolutist "Old Regime," also suffered from economic stagnation due to despotic policies. The king's unchecked power to levy exorbitant taxes (e.g., 200 million livres annual tax, 2 billion livres debt) and sell "privileges" (monopolies, venal offices) stifled free markets and secure property rights. Guilds, supported by the state, imposed rigid regulations, limited firm size, and blocked innovation (e.g., 317 regulations on dyeing cloth).

• Lack of reinvestment: French society's "mania for prestige" meant wealth was diverted from productive commercial investments into status-conferring assets like land or venal offices, yielding low returns but high social standing.
• Agricultural inefficiency: French farms were nearly three times less productive than English ones due to lack of investment, as peasants feared higher taxes if they appeared prosperous.
  This system, where wealth was a badge of status rather than a tool for production, ensured that French "capitalism" remained rudimentary and unappreciated, demonstrating that tyranny, not Catholicism, was the impediment.

7. North America's Success Stemmed from Freedom, Capitalism, and a Competitive Religious Economy

The modern world arose only in Christian societies. Not in Islam. Not in Asia. Not in a “secular” society—there having been none.

Two New Worlds. The economic divergence between North and Latin America is rooted in their colonial legacies: North America, modeled on capitalist and free England; Latin America, re-creating feudal and despotic Spain. While both were Christian, their "religious economies" differed profoundly. Latin America's Catholic Church, a state-imposed monopoly, became indolent and lacked popular support, despite immense wealth. Papal bulls against slavery were ignored due to royal censorship and local opposition, hindering moral progress.

North American religious dynamism. In contrast, North America, despite initial intolerance, evolved into a pluralistic religious economy. The constitutional ban on religious establishment fostered competition among denominations, leading to:

• High commitment: Church membership soared from under 20% in 1776 to over 60% today, as churches actively competed for adherents.
• Vigorous organizations: Competitive pressures favored energetic groups like Methodists and Baptists, while complacent denominations declined.
  This free market for religion, observed by figures like Alexis de Tocqueville, produced a highly pious and engaged populace, contrasting sharply with the unchurched masses of Latin America.

Freedom and human capital. British North America enjoyed significant political freedom through elected assemblies and secure property rights, attracting waves of immigrants seeking economic opportunity. Unlike the extractive Spanish colonies, British America was founded on production, with ambitious smallholders and high wages. These high labor costs, in turn, spurred American capitalists to invest heavily in labor-saving technology, driving extraordinary industrial growth and worker productivity. Crucially, North America also invested heavily in "human capital":

• Widespread literacy: Protestant emphasis on Bible reading led to early laws mandating schooling (e.g., Massachusetts 1647).
• Colleges and universities: Intense denominational competition founded numerous institutions of higher learning (10 before the Revolution, 20 more by 1800).
  By 1860, white Americans and Canadians had literacy rates over 80%, far surpassing Latin American nations (e.g., Argentina 24%, Brazil 16%), a disparity that persists today and remains a critical factor in economic development. Latin American Protestantism, while growing rapidly, is seen by some as a stimulant to progress, fostering thrift and responsibility, and its competitive presence is invigorating Catholicism.

Last updated: October 22, 2025