Martin Luther’s Business Ethics and the Economic Utopia

Abstract

The principle of benevolence is at the root of Martin Luther’s (1483-1546) thinking on society, the economy, and business ethics. Luther was the forerunner of the moral economy. He saw the necessity of strong public authorities, which should take into account the public interest, leading to a tamed self-interest coupled with a certain amount of benevolence. Income differentials inside the society should be kept within limits and poverty should be prevented. Luther accepted just business practices but denounced the logic of maximum profit. He criticized the right to sell a good for as much money as possible. According to Luther, there exists some contrast between a true Christian and commerce. He clearly condemned monopoly and all forms of collusion between sellers. Eschatology was an integral part of his theology as he waited for the coming of the Kingdom of Christ, where the nations would be ruled with righteousness. Before that time, people would need strict rules and temporal authority. Therefore, it can be concluded that Luther had two different economic systems in his thinking: The temporal tamed market economy and the coming eschatological economic system of Christ.