Home
/
RELIGION & LIBERTY ONLINE
/
How the Reformation led to a reallocation of religious resources
How the Reformation led to a reallocation of religious resources
Apr 4, 2025 8:15 AM

Soon after Martin Luther nailed his ninety-five theses to the church door at Wittenberg (if he even did), Protestants began to be blamed for unleashing many of the destructive influences of Western Civilization.

As a Baptist, I thinkthe criticisms are overstated (and thatthe good of the Reformation far outweighs the bad) but they aren’t wholly without merit. There is more than a grain of truth that anunintended effect of the Protestant Reformation was to increase the rapid expansion of secularization.

For example, a working paper published by the National Bureau of Economic research finds that the Reformation lead to the reallocation of resources from religious uses to secular ones. From the abstract:

Using novel microdata, we document an unintended, first-order consequence of the Protestant Reformation: a massive reallocation of resources from religious to secular purposes. To understand this process, we propose a conceptual framework in which the introduction of petition shifts political markets where religious authorities provide legitimacy to rulers in exchange for control over resources. Consistent with our framework, petition changed the balance of power between secular and religious elites: secular authorities acquired enormous amounts of wealth from monasteries closed during the Reformation, particularly in Protestant regions. This transfer of resources had important consequences. First, it shifted the allocation of upper-tail human capital. Graduates of Protestant universities increasingly took secular, especially administrative, occupations. Protestant university students increasingly studied secular subjects, especially degrees that prepared students for public sector jobs, rather than church sector-specific theology. Second, it affected the position of fixed investment. Particularly in Protestant regions, new construction from religious toward secular purposes, especially the building of palaces and administrative buildings, which reflected the increased wealth and power of secular lords. Reallocation was not driven by pre-existing economic or cultural differences. Our findings indicate that the Reformation played an important causal role in the secularization of the West.

Read more . . .

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Religious freedom is the solution for Iraq, Prelate says
This is the headline from Zenit on January 18. “Chaldean Archbishop Louis Sako, the archbishop of Kirkuk warns that a division of boundaries will lead to more conflict, with Christians caught in the middle.” “He says ‘a divided Iraq will not be a peaceful Iraq.’ …Archbishop Sako fears that possible plans for a Christian safe haven on the Nineveh plain will not succeed. He said: ‘They would have their own territory, but to be viable, the idea of a protected...
Making college more affordable?
Higher education is one of those areas—like health care—in which prices are so out of whack because of so many distortions in the market that it’s hard to know just how to go about rectifying the situation. Richard Vedder, a great economist who has done pathbreaking work on the causes of the Great Depression, offers an incisive analysis of a Democratic proposal to lower student loan interest rates. It serves as an excellent case study in the law of unintended...
The fallacy of Adam’s fallacy
Duncan Foley’s new book, Adam’s Fallacy, is the latest installment among the critics of free-market economics to spin economic history according to the received wisdom of today’s Center-Left intelligentsia. Lest this statement be too harsh, let it be shown that Foley himself reports that his intention in writing the book is not to get bogged down in historical and textual analysis of the key economic texts of the last three-hundred years but to tell his own “imaginatively reconstructed” account of...
More dispatches from the fall of Western culture
There’s nothing like a few dreary Michigan winter days to get me into a midwinter funk. And because I’m a nice guy, I thought I’d share some of my funkyness with you, gentle reader. Especially if you’re in a warmer climate. First of all, David Warren notes that the foundations of society in Canada are still under assault: The names of the plaintiffs in that case were suppressed by the court. I would be very curious to know who they...
Zandstra on the first 100 hours
Acton senior fellow Rev. Gerald ments on the first 100 hours of the new legislative session in this Associated Baptist Press article by Robert Marus. Zandstra had previously examined one of the core planks in the House leadership agenda, raising the federal minimum wage, in a recent Acton Commentary, “Minimum Wage and Common Sense.” ...
Today’s snippet of wisdom
There is no ordering of the state so just that it can eliminate the need for a service of love. Whoever wants to eliminate love is preparing to eliminate man as such. —Deus Caritas Est ...
The Issachar Project: The importance of film
Last weekend I had the joy of sharing in a special meeting in Newport Beach, California, that was appropriately named the Issachar Project. This small project is the work, primarily, of my friend Andrew Sandlin of the Center for Cultural Leadership. Andrew is convinced that there must be an intellectual and existential coalition of (1) Christians working in Hollywood and elsewhere in the film industry and (2) serious Christian thinkers in the arts. You may recall that the sons of...
MLK and Environmental Justice
Environmental Justice Blog: “If Rev Dr Martin Luther King, Jr. was alive today he would be an environmental justice activist.” Perhaps. MLK went to Memphis in 1968 on a mission for black garbage workers demanding equal pay and better work conditions. He was killed before he got there. 15 years later, black activists would stop a hazardous waste landfill in Warren County, North Carolina, often pointed to as the beginning of the environmental justice movement. Are the two related? Sure....
Adventures in cognitive dissonance
This is one of the images I see on days I drive home from school: Yes, that’s a shared storefront for a health spa featuring “rub downs” and “American” girls, along with an adult “super store.” Nothing untoward about that connection. Nope, nothing at all. And even though it touts “American” girls, this parlor isn’t located in a country like Thailand, which was noted by the US State Department as “a source, transit, and destination country for men, women, and...
ABC’s Nannies & Mommies
One of ABC’s new dramas, Brothers & Sisters, features Calista Flockhart as a hard-hitting conservative pundit named Kitty Walker. Despite its title, the show is not all that family friendly (although it has not yet been rated by the Parents Television Council). But for this post, I won’t be focusing on the questionable social and sexual mores of the show. Instead, I’m going to focus on an aspect of the show’s portrayal of politics. “Politics is about the privilege and...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved