Formal Justice and the Spirit of Capitalism: Max Weber's Sociology of Law

Abstract

A number of contemporary scholars have argued that Max Weber sought to establish a positive relationship between the highest form of rationality in legal thought—logically formal rationality, and the most advanced type of economic rationality, that embodied in capitalism. Since capitalism actually developed first in England, where no such logically formal legal system existed, these scholars conclude that Weber's sociology of law suffers from various contradictions that are frequently referred to as the “England problem.” This paper rejects the idea of the “England problem” and argues that Weber actually identified formal justice and guaranteed rights, rather than logically formal legal thought, as the features of modern law that directly facilitated the rise of capitalism. It also challenges Habermas's claim that Weber ignored the normative dimension of modern law and argues that he considered the “rightness” of law to be an important factor in the rise of capitalism but found that with the disenchantment of law this normative dimension has weakened.