Chapter 1: The Shift in Governance

In her insightful analysis, Dr. McCloskey delves into the cultural transformation that shifted society's focus from hierarchical structures to valuing individual contributions. This change, she argues, is pivotal in understanding the Great Enrichment—a significant economic expansion she aims to explain.

The Radical Reformation sought to push boundaries further than those established by figures like Martin Luther and John Calvin. This movement critiqued traditional religious institutions while fostering new ones, such as radical Anabaptism and later Quakerism, which empowered individuals, including women like Margaret Fell, who were previously silenced by established doctrines.

"Although we recognize Martin Luther as a key figure in the Protestant movement through his 95 Theses in 1517, his primary objective was to reform the Catholic Church rather than to establish a new one," McCloskey highlights.

Luther maintained a belief in hierarchy and did not perceive everyone as having equal worth. He famously stated, “A worldly kingdom cannot stand unless there is in it an inequality of persons, so that some are lords, some subjects.” This mindset, according to McCloskey, led him to denounce the Peasants’ Revolt in Germany in 1524, indicating that his vision was limited to ecclesiastical reform rather than societal change.

Section 1.1: The Unintended Consequences of Reform

The Radical Reformation unfolded with unforeseen impacts, similar to Luther's original intentions. McCloskey notes that while the focus was on religious reform, it inadvertently influenced economic dynamics.

"In essence, the rise of dignity and freedom for economic participants paralleled developments in religious contexts," she observes. The radical governance structures adopted by these new religious communities began to extend into other areas of life. This shift allowed congregants to engage in church governance instead of merely following directives from bishops, popes, or monarchs.

Subsection 1.1.1: From Spiritual to Economic Citizenship

This transition from the concept of a "priesthood of all believers" to a broader notion of citizenship and entrepreneurship for everyone was not merely theoretical. The emergence of denominations where church governance was in the hands of the members reflected a step toward self-governance in both business and civic life.

As philosopher Stephen Hicks articulates, "A free society is a do-it-yourself society," emphasizing that freedom entails individuals taking action for themselves without external imposition from authorities. This philosophy advocates for a system devoid of bishops, lords, and centralized control, favoring laissez-faire economics.

Chapter 2: The Emergence of Bourgeois Virtue

In this chapter, McCloskey emphasizes the contribution of religious reformation to the idea of self-governance. The acceptance of voluntary exchange and the associated outcomes as just marked a significant evolution in societal perspectives, especially noted in Holland around 1600, England around 1700, and in Scotland and British North America around 1750. This shift is integral to what she terms the Bourgeois Revaluation and the Bourgeois Deal.

As we proceed, the next chapter will examine how these changes in religious thought further influenced the evolving theology of happiness.

Reference: McCloskey, Deirdre Nansen, 2016. “‘Democratic’ Church Governance Emboldened People,” Chapter 39 of Bourgeois Equality, The University of Chicago Press.