Max Weber's classic study The Protestant Ethic and the Spirit of Capitalism made the case that the Reformation had a major impact on the rise of free market capitalism. But Weber assumed that this influence came from Protestants believing that achieving prosperity was a sign of God's election, which completely misunderstands Reformation spirituality and its influence. Weber skimmed over Luther's doctrine of vocation, which taught that God is present and active in ordinary economic activity, which becomes a sphere in which Christians can love and serve their neighbors. Luther believed that God providentially governs the economic order, but that far from being merely a self-interested pursuit--as it is in both Adam Smith and Max Weber--the division of labor in the various vocations form a network of love and community. Dr. Gene Edward Veith is Provost and Professor of Literature at Patrick Henry College. He is the author of 18 books on topics involving Christianity and culture, classical education, literature, and the arts. They include Postmodern Times, The State of the Arts, The Spirituality of the Cross, God at Work, Modern Fascism, Classical Education, and Loving God With All Your Mind. Dr. Veith previously served as the Culture Editor of World Magazine. He was on the faculty for 19 years as Professor of English at Concordia University Wisconsin, where he also served for six years as the Dean of the School of Arts and Sciences. He has also taught at Northeastern Oklahoma A&M College and has been a visiting professor at the Estonian Institute of Humanities, Gordon-Conwell, Regent College (Vancouver), and Wheaton College. In addition he also serves as the director of the Cranach Institute at Concordia Theological Seminary in Ft. Wayne, Indiana. He has been a Fellow at the Capital Research Center and the Heritage Foundation. Dr. Veith received his B.A. in Letters (Literature, Philosophy, History, and Classics) from the University of Oklahoma and his M.A. and Ph.D. in English from the University of Kansas. For more information, visit www.geneveith.com.

Until recently, many thought that Europe had escaped the worst of the 2008 financial crisis. Some even argued that the crisis has demonstrated the European social model’s superiority over “Anglo-Saxon capitalism”. In 2010, however, we have seen an entire country bailed out, riots in Athens, governments slashing budgets, and several European nations staring sovereign debt default in the face. Some are even claiming that the euro is finished. So what went wrong for Europe? How adequate have been the responses of European governments? And what are the consequences for America?