ABSTRACT
It is a widespread error that the increase of population is to be included as a really crucial agent in the evolution of western capitalism. The growth of population in Europe did indeed favor the development of capitalism, to the extent that in a small population the system would have been unable to secure the necessary labor force, but in itself it never called forth that development. Capitalism in the west was born in the industrial cities of the interior, not in the cities which were centers of sea trade. At the beginning of all ethics and the economic relations which result, is traditionalism, the sanctity of tradition, the exclusive reliance upon such trade and industry as have come down from the fathers. Generally some injury to economic privilege is concealed in this opposition, but its effectiveness depends on a general belief in the potency of the magical processes which are feared.
