Asymmetrical Information

Hmmm. Interesting subject for a study, but does the article really suggest that economic growth comes from God, or from religious belief. The only reference I see to that is the ‘startling conclusion’ line, where economic growth is highest in societies that believe in heaven and hell.

Regardless, I’d think that the exact opposite is true. The more religious a society is, all other things being equal, the lower their economic vitality. Yes, the U.S. has outgrown Europe, yes the USSR’s experiment in communism failed despite the state banning of religion. But in these situations, extraneous factors supercede – the differences between capitalism vs. communism outside of religion.

The admirable growth in Western Europe from 1600-1900 attributed to the “Protestant work-ethic” should not be counted in religion’s favor; rather, the lessening of ardent religious belief during the Reformation allowed Western Europe to flourish in comparison with those nations that retained Catholicism, IMO.

I dunno Wallster, I always figured that Protestantism was in fact a return to religiousity, not unlike smaller movements in 20th century US. I sort of see the same thing in my back yard (Utah that is)

I don't know how true the whole thing is, but it certainly doesn't strike me as being counterintuitive. First one needs to discount areas in which religious practice is strictly traditional (I am thinking primarily of Latinate countries). Just start from the proposition that there exist right and wrong (however they may be determined) a society that actually believes that there are things an individual should not do would strike me as one in which, all other things being equal, there will be fewer of those actions. This doesn't strike me as all that radical a suggestion. Of course I would wager that those same societies also show strong belief in laws, this might actually account for the differences better than religion, but who is to say the two aren't related.

John - if you are trying to determine if religion has a negative or positive effect on economic growth you can't discount area where religious practice is traditional. Tradition dictates that people spend time practicing their religion and abiding by it's rules, when this may be (and is, most of the time) inefficient. Look at the world of Islam - their strict religous beliefs have made them a laggard for centuries.

Yes, a general sense of right and wrong certainly helps economic development, as without it, anarchy would ensue. But does this mean that religion itself improves a societies economic development? One can have a sense of right & wrong without believing in a deity, or Heaven/Hell.

If Islam was just a religion it wouldn't be so troublesome. It extends much farther into on'e life than just the spiritual. It is literally a way of life that demands absolute obedience in all areas of believers' and non-believers' lives.

The sample size is too small to draw any statistically valid conclusions - especially after you note that there isn't enough difference in culture or religion in most of the European nations to count as separate datapoints. Get away from the northwest European cultures, and the link between religion and success isn't there - because the only other economically successful culture is Japan, and their blend of Shinto and Buddhism is utterly unlike Christianity. It is pretty obvious that the wrong kind of religion is an economic disaster (the Muslim countries, maybe also Latin America), although it is also quite possible for atheists to follow irrational policies and breed economic disaster (Communism).

So the best part of their argument is contrasting Christian countries of northern or western European culture; the USA remains more Christian and highly successful economically, while Western Europe boomed in the 19th Century but fell far behind in the 20th. It's true that observance of Christianity fell further and faster in Western Europe, but that's hardly the only thing going on. I think Christianity was simply a marker for other cultural traits, like belief in limited and honest government, hard work, and careful personal budgeting. Anyone doubt that those three factors contribute greatly to economic success?

It's pretty obvious that Europe lost them far more than the USA. There was a great reduction in churchgoing and religous faith (which aren't the same thing) in the same period, but I think the two things are weakly linked through an underlying cause rather being cause and effect. My guess is that for a portion of the population, the best hope for maintaining the self-discipline necessary for economic success is to adhere to all the beliefs and traditions they inherited from their ancestors, including religion. Maybe it's easier for them than thinking things through and retaining just the parts that are rational to become a frugal workaholic libertarian atheist like me. Unfortunately, it's also quite possible for the non-thinking to reject just the hard rational parts, and turn into socialist christians, Muslims, Hindus, Buddhists, Wiccans, Voodoo practitioners...

Just a thought. It may be possible that religion has an economic benefit on the individual level. No, not divine intervention, rather a training in thought process. Every religion has faith as its sine qua non. I'd venture that the observant could easily internalize that demand and make faith a habit. But the habit of maintaining faith is, I think, economically useful. It can provide a distinct advantage. Faith in the future, faith in one's abilities, and faith in one's work quite often prove vital in achieving. In that sense, by creating a stronger entrepreneurial culture, faith may help move a society ahead.

The question should not be whether religion is good for economic growth or not, but what kinds of specific religion are. Religion is not a monolith, but is a highly diverse phenomenon. Despite superficial similarities, there is a world of difference between Islam and Protestant Christianity, and for that matter between Protestant and Roman Catholic forms of Christianity. I think it is no accident that the United States has achieved far greater wealth, economic growth and productivity superiority over much of the rest of the world, and that two of the greatest influences in America's religious, social and philosophical developemtn have been Protestant Christianity and Judaism.

A "Protestant work ethic" is good for overall economic growth. It's also rewarded on the individual level - in cash - to a greater degree under less socialistic governments. So, does the temporal reward here for a "Protestant work ethic" bolster observance of Protestantism in general around these parts?

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