The Premodern Era
Land was one of the dominant forms of capital in the premodern era. It was and is a very tangible form of capital and has been the object of many acts of betrayal and warfare. It has also served as a foundation for the formation of democratic institutions:[lxviii]
“James Harrington (1611-1677, the Father of the English political philosophy out of which grew Locke, Hume, Burke, and The Federalist Papers, laid down in his book Oceania that “Power Follows Property.” It was the shift in property from the great nobles to the country squires, he argued, that explained the English Revolution of the 1640s, the overthrow of absolute government and its replacement by the parliamentary government of the new property owners, the local gentry.”
The other two primary assets were less tangible but no less important, these being ancestry and reputation. During the Middle Ages, when the Catholic Church dominated Western Civilization, capital and property were defined primarily in terms of land, for members of the church were forbidden (under penalty of excommunication) from charging interest on money that was lent to other people. This was defined as usury and was a cardinal sin. Only the Jews were allowed to charge interest, for they were already outside the purview of the church. Thus, the major financial houses of Europe were created primarily by those who remained outside the dominant Catholic Church. Christians could accumulate wealth only by acquiring land or by establishing a solid trade with a strong reputation (built over several generations of artisans).
Men of Property
This emphasis on land and reputation was reinforced by the emerging laws regarding property. There was not only the divine right of kings, for those of noble ancestry, but also the newly emerging rights of the common man to own property and pass on property to one’s descendants (in Western societies). While many nonwestern societies (such as those found in most Native American cultures) have embraced the notion that property (land, home, livestock) belongs to the entire group or tribe or belongs to the gods or to nature, our ancestors in the Western world created a society in which personal acquisition was allowed and even highly valued.
Among those in the premodern era who could not acquire land or own a small business built on reputation, there was nothing much to hope for except a life of security in a highly paternalistic setting. One can be a servant, a laborer in a small business or on a farm, or an apprentice who eventually may become a master craftsman with some independence. In these settings, conformity to rigid codes was critical. These workers looked toward paternal care and asked for little in return. Douglas MacGregor provided a vivid and highly influential description of this world of work when he described the Theory X model of management:[lxix]
“People are inherently lazy and must, therefore, be motivated by outside incentives.
People’s natural goals run counter to those of the organization, hence they must be controlled by external forces to ensure that they work toward organizational goals.
Because of their irrational feelings, people are basically incapable of self-discipline and self-control.
People can, however, be divided roughly into two groups—those who fill the assumptions outlined above and those who are self-motivated, self-controlled, and less dominated by their feelings. This latter group must assume the management responsibilities for all the others.”
