The Moral Foundations of Capitalism by The Fund for American Studies

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THE MORAL FOUNDATIONS OF CAPITALISM By Professor C. Bradley Thompson

Professor Bradley Thompson delivered the following remarks at The Fund for American Studies’ 2011 Leadership Conference held this past October in Dallas. The annual event brings together TFAS leadership, supporters and alumni for presentations by America’s leading scholars and experts. In his speech, Thompson offered a compelling argument in defense of laissez-faire C. Bradley Thompson is the

capitalism as the only moral and just social system.

BB&T Research Professor in the department of political science

In addition to his work as a professor at Clemson University, Thompson teaches

at Clemson University and the

political philosophy at the Institute for Leadership in the Americas, a TFAS program

executive director of the Clemson

held each January in Santiago, Chile.

Institute for the Study of Capitalism. He teaches political philosophy at The Fund’s Institute for Leadership in the Americas. He has been a

visiting scholar at Princeton and Harvard Universities as well as the University of London. Thompson received his Ph.D. from Brown University. He has published five books: Neoconservatism: An Obituary for an Idea; the awardwinning John Adams and the Spirit

n recent weeks a few hundred “useful idiots,” as Lenin would have called them, have been protesting on Wall Street against capitalism. They are funded by George Soros-affiliated groups; assisted logistically by various white-collar unions and socialist organizations; and supported morally by the White House and the mainstream media. They hold up signs with slogans such as “Need Not Greed,” “People Over Profits,” “Death to Capitalism,” “Eat the Rich” and “Long Live Revolution. Long Live Socialism,” etc.

of Liberty; Freedom and School Choice in American Education; Antislavery Political Writings, 1833-1860; and The Revolutionary Writings of John Adams. Thompson lectures all over the U.S. and around the world. His op-ed essays have appeared in dozens of newspapers, and he appears occasionally on television and radio.

Not surprisingly, the leaders of the liberal intelligentsia have given their official blessing to these anti-capitalist demonstrations, which have, by the way, included some violence. Much more depressing, however, has been the response of Republican politicians and conservative intellectuals, who have been virtually silent in response to the moral attacks against capitalism.

Well, enough of that. Since there may be a few bankers, entrepreneurs and businessmen and women in this audience, let me say this: I’m here today to defend the indefensible – laissez-faire capitalism. Worse yet, I’m going to argue that laissezfaire capitalism is the only – I repeat, the only – moral and just social system, which means of course that it is morally superior to all the alternatives. This is not, however, a talk about economics. I’m not going to talk about the stock market, supply and demand, price theory, free trade, profits or the global economic recession. Nor am I going to defend capitalism on economic or pragmatic grounds. Instead, what I’d like to do today is to argue that capitalism works precisely because it is good – morally good.

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2 In fact, the American CEO is America’s only unadulterated bad guy, the only pure villain. How many times in the last year have you heard American politicians refer to bankers and businessmen as greedy? According to Hollywood, businessmen are the most immoral individuals in America. Who does Hollywood almost always portray as the bad guys, as criminals? Answer: Greedy businessmen. Who does Hollywood always portray as exploiting the poor and the weak? Answer: Greedy businessmen.

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Professor Brad Thompson discusses his theories with TFAS alumni and supporter Judy Black.

Capitalism works precisely because it is good – morally good.

Capitalism is practical precisely because it is moral. I’m here today to share my thoughts on what I think American businessmen and women need more than anything else in order to succeed: i.e., a self-defense course in moral philosophy. Around the world, America is synonymous with capitalism; it is seen as the capitalist nation par excellence. It is also a well-known fact that capitalism is the most economically productive social system in world history. Remarkably, though, capitalism has been left defenseless by its supposed supporters. In fact, for over 100 years, America’s intellectual class – its teachers, professors, novelists, poets, preachers, journalists and filmmakers – have been markedly anti-capitalist. Consider for a moment how

businessmen are typically treated in American culture today. According to America’s cultural elite, according to the New York Times and CNN, what is the cause and who are we to blame for the current financial crisis? Answer: unregulated capitalism is the economic cause and the villain is the fatcat Wall Street businessman. But that’s not good enough. According to the mainstream media, there is a deeper cause – a moral cause – and a truer villain, summed up in one word: GREED. The fact is, America’s cultural elite is openly antagonistic to business and to businessmen. As I’m sure you know all-too-well, businessmen are typically portrayed as villains in our movies, TV dramas, newspapers, novels, on the nightly news, from the pulpit and in our classrooms – from elementary schools to the universities.

Now, let me ask you these questions: How many of you are criminals? How many of you exploit the poor and the weak? But here’s the important question: Why do the vast majority of American businessmen not defend themselves? Why do you just sit there and take it? PERSPECTIVES ON CAPITALISM AS WE KNOW IT Let’s back up and ask this question: What has capitalism given us? Politically and economically, the United States of America, and all the other capitalist nations, have been the freest and most prosperous nations throughout world history. Politically, the capitalist nations have guaranteed freedom of speech, freedom of religion, freedom of intellectual expression, freedom of assembly and freedom of voting. conomically, they have set men and E women free to invent new life enhancing and life saving products that have improved the quality of human life immeasurably.

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There has been greater innovation in the capitalist nations over the last 200 years than in the previous 2,000 years. Today, by flicking a switch, we can create light where there was once only darkness. By pushing some buttons, we can have instantaneous conversations via telephone, Skype, fax, or email with business associates, friends and loved ones all over the world. By turning a key, we can transport ourselves thousands of miles via automobile or plane to see exotic new places. By remote control, we can turn on our personal satellite dish and watch sports events from all over the world. It is an uncontestable fact that capitalism has generated greater per capita wealth than any other system ever invented or put into practice by man. Just contrast the socialist countries with the capitalist countries: North vs. South Korea; Havana vs. Miami; Venezuela vs. Chile.

In fact, the American CEO is America’s only unadulterated bad guy, the only pure villain.

THE INTELLECTUALS’ CRITIQUE OF CAPITALISM Despite creating the greatest wealth in human history, despite raising living standards for poor people all over the world, capitalism is hated by the left and the mainstream media. But why? Why is capitalism routinely attacked as immoral and unjust in high school and college classrooms, from the pulpit, on the nightly news, in newspapers and magazines and in movie theaters? What charges are typically brought against capitalism and businessmen? First, that capitalism is unjust because it creates inequalities. In the socialists’ view, it’s a bad thing when some people have more than others. The moral ideal of the college professors who teach your children is to make everyone the same. Second, that capitalism is immoral because it promotes selfishness. The profit motive, it is said, brings out the worst in men: it makes them greedy, self-interested and acquisitive. Every day America’s children are taught in their schools and in their college classrooms that what businessmen do is immoral. Every day America’s children are told by their grade school teachers that businessmen are greedy and selfish, immoral and cutthroat, fat cats and robber barons – profiteers and chasers after the all-mighty dollar.

TFAS supporter Nora McGowan listens to the words of Professor Brad Thompson.

Every day America’s children are told at school, at church and on television that selfishness is bad and that sacrifice is the moral ideal to which they should aspire.

And what is the moral ideal to which America’s children are being indoctrinated? It is the principle of selflessness and self-sacrifice. They’re taught in one form or another, the old Marxist doctrine: “From Each According to his Ability to Each According to his Need.” Should we be surprised, then, that Pravda, the official newspaper of the former Soviet Union recently said: “The American descent into Marxism is happening with breathtaking speed.” Have you ever stopped to ask the preachers and the teachers who denounce businessmen just one question: “By what standard?” By what standard of justice do they sneer at businessmen and condemn them as immoral? By what standard of morality should government bureaucrats tell businessmen how to run their business? By what standard of morality should the fruits of a man’s labor be taken from him and given to another? Let me be very clear here: America’s intellectual elite share with nineteenthcentury southern slaveholders, Nazis, fascists, socialists and communists a virulent anti-capitalist bias. But consider how the vast majority of businessmen have responded to the charges that have been leveled against them … they are silent. Sadly, America’s businessmen and women have done little to defend themselves.

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4 Worse yet, many of these businessmen and women have accepted the moral code of their enemies. They have ceded to these enemies the moral high ground that should have been theirs. Too many businessmen today feel guilty about their “selfish” motives, so they try to appease their critics. Too many businessmen regularly proclaim that they are selfless, that they’re really serving their workers, the poor and needy around the world, and the public interest, which of course has been defined for them by the socialist intelligentsia. Too many businessmen donate millions of dollars every year to the very institutions and organizations that seek to destroy them. The great problem with capitalism is not that it has enemies but that it has never had a proper moral defense.

At best, they give it lip service; they give it two cheers. And to the extent that conservatives praise capitalism in any meaningful way, it’s simply on economic, pragmatic or utilitarian grounds. They praise it because it works, because it delivers the goods, because it’s more productive and efficient than socialism.

CAPITALISM AS THE ONLY MORAL AND JUST SOCIAL SYSTEM

But the one thing that the conservatives fail to do is defend capitalism on moral grounds. And the reason that they don’t defend capitalism morally is because they accept many of the same basic moral principles as socialists – the idea that one’s primary moral responsibility is to sacrifice for others.

Why? Because it’s the only system that permits men and women to be free, which is the necessary pre-condition for morality.

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Would you like evidence for this claim? Witness the health care debate.

Leaders MAKE A

Capitalism is the only moral system because it’s the only system in which morality is possible.

Capitalism is the only moral system because it’s the only system to free the mind. Free minds are a corollary of a free market. Capitalism says that if you choose to think, to invent, to apply your reason to

There has been greater innovation in the capitalist nations over the last 200 years than in the previous 2,000 years.

Lasting

One might expect conservative intellectuals to defend capitalism, but they don’t.

It’s my view that laissez-faire capitalism is the only moral and just social system.

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Should we be surprised, then, that Pravda, the official newspaper of the former Soviet Union recently said: ‘The American descent into Marxism is happening with breathtaking speed.’”

improving your life and those around you, you are free to act accordingly, you are free to produce and to trade and to keep the fruit of your efforts. Capitalism is the only moral system because it’s the only social system that subordinates society to a moral law. It’s the only social system that recognizes individual rights, which means that it’s the only social system that banishes the initiation of physical force from human relationships.

do? … What’s your motive?

Every day they make decisions that will either promote or hurt the interests of their business. One small mistake can lead to a reduction in profits, to laying off workers, to going out of business.

Do you do it primarily because you want more stuff, so that you can buy a bigger house or a faster car or a better iPhone?

By way of contrast, can the same be said of politicians and government bureaucrats?

It’s the only system in which all human relationships are voluntary.

Do government bureaucrats work the same hours as you? I don’t think so.

Capitalism is the only moral system because it’s the only system that promotes life-enhancing virtues such as rationality, justice, productivity, honesty, independence and integrity. Every day American businessmen and women make profits by throwing themselves into their work – by being creative, inventive and hardworking.

Do they create and produce goods and services that Americans want in the way that you do? No – they just redistribute what you work hard to create. Are they fired for incompetence? No.

Every day they must compete to produce goods or services that their customers want. Every day they must compete to make a better product at a cheaper price.

Every day they must have the courage of their convictions, they must treat their employees justly, and they must demonstrate integrity and honesty to their customers.

Are they hauled before congressional committees when they make mistakes, persecuted and prosecuted like businessmen? No. Otherwise Barney Frank would be serving a life term. Let me ask you this: Why do American entrepreneurs and businessmen do what they do? Why do all of you do what you

Why do you get up every day at 5 a.m. and work until 7 p.m.? Why do you expend so much energy, time and labor?

Well, you might and that’s all the reason you need, but the fact of the matter is that most of you do it for other reasons. The best among you do it for the most selfish reason of all – because you love to think and to create; you love long-range planning and decision making; you love the challenge and the competition; and you love to work and to produce. The fact is American capitalists have made the world a better place. It’s the capitalist system and American businessmen and women who gave the world phones, cars, planes, trains, washing machines, TVs, computers, radios, electric lights, MRIs, etc. For that, they should be praised, thanked and held up as moral heroes. And that’s why I’m here today. I’m here to say “well done” and “thank you.” Let me bring this to a close.

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Capitalism says that if you choose to think, to invent, to apply your reason to improving your life and those around you, you are free to act accordingly, you are free to produce and to trade and to keep the fruit of your efforts.

Capitalism is the system that liberates the human mind to create values; it is the system that frees man to pursue his chosen values; and it is the system that rewards productive achievement.

Sadly, however, America is no longer a capitalist nation. We live under what is more properly called a mixed economy – that is, an economic system that permits private property, but only at the discretion of government planners.

In the capitalist system, it is the free and creative thinker, the productive genius, rather than the government bureaucrat, who determines which goods and services will be produced and how they will be produced.

We have a little bit of capitalism and a little bit of socialism.

Under capitalism, millions of people are free to pursue their own values and to engage in production and trade.

The return of capitalism will not happen until there is a moral revolution in this country. We must rediscover and then teach our young the virtues associated with being free and independent citizens.

The results, ladies and gentlemen, are self-evident.

Then – and only then – will there be “social justice” in America.

Teaching Freedom is a series of remarks published by The Fund for American Studies, a nonprofit educational organization in Washington, D.C. The speakers featured in each issue delivered their remarks at a TFAS institute or conference or serve as faculty members of an institute. The speakers who participate in the educational programs contribute greatly to the purpose and mission of TFAS programs. The speeches are published in an effort to share the words and lessons of the speakers with friends, alumni, supporters and others throughout the country and world who are unable to attend the events. Visit the website to read past issues of Teaching Freedom: www.TFAS.org/TeachingFreedom

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