The Morality of Capitalism: Setting Value on Work, Not People

Does capitalism imply that people are merely marketable commodities with assigned values? This idea, while pervasive, is fundamentally flawed. Let’s explore the true nature of the free market and its alignment with ethical standards.

Setting a Market Value: Work vs. People

The free market does not assign a market value to people; it assigns value to the work they perform. These are two distinctly different concepts. The market value of work refers to the economic assessment of the value of goods or services produced, which is a quantifiable and objective measure. Conversely, the value of a person is a subjective and qualitative concept that goes beyond monetary transactions.

Fallacies and False Presuppositions

The notion that capitalism assigns value to people is a misnomer and a fallacy. It presupposes a falsehood and is inherently fallacious. Capitalism is a system based on individual rights, allowing individuals to determine the value of their work and make decisions based on those values. This freedom of choice and individual entrepreneurship is what defines the moral and ethical standards of capitalist societies.

The Ethical Foundation of Capitalism

Capitalism is not immoral; it is perhaps the most ethical economic system. It allows individuals to assess the subjective value of their work and makes decisions accordingly. Unlike state-controlled economies, capitalism places the value of work and goods in the hands of the producers and consumers, not the central authority.

Valuing Work, Not People

When people are compensated for their labor, it is the work, not the individual, being valued. The market sets wages based on the objective value of the results produced. Different people have different opinions on the value of the same work, leading to negotiations that reflect the subjective nature of human judgement. Similarly, in cases like wrongful death or life insurance, monetary payouts serve as a legal and practical way to assign economic value to the loss. Assigning an infinite value is neither realistic nor feasible, thus recognizing a finite value allows for practical solutions.

A Positive Example: The Rise of Living Standards

Countries that embrace capitalism have seen significant improvements in living standards. The free market incentivizes innovation, productivity, and investment, which contribute to a higher quality of life. The standard of living in even semi-capitalist countries has improved dramatically, especially in the context of hundreds of years of economic development. This is a clear indicator of the positive impact of a free market on society.

A Contrast: The Dangers of Anticapitalism

Examining the conditions in societies that reject capitalism provides a stark contrast. The USSR and regimes like that of Pol Pot exemplify the dehumanizing and destructive nature of state-controlled economies. These examples underscore the moral and ethical failings of systems that do not respect individual rights and entrepreneurship.

Capitalism, when allowed to flourish, is not only economically beneficial but also morally just. It fosters freedom, innovation, and growth, all of which contribute to a better future for individuals and society as a whole.