The-Morality-of-Capitalism-PDF

any particular sophistication. After all, people were trading inmarkets long before there existed any economists to study themarket process. All you have to know is when you are makingmore money or less money and whether you have a chance tomodify your actions.The hallmark of commodity and service markets is diversity—a diversity of tastes, human skills, knowledge, natural resources,soil, and climate. But diversity without freedom to exchangeimplies poverty. No human being, even if abundantly endowedwith a single skill or a single resource, can prosper without trade.Through free markets we depend on others whom we do notknow, recognize, or even understand. Without markets we wouldindeed be poor, miserable, brutish, and ignorant.Markets require consensual enforcement of the rules of socialinteraction and economic exchange. No one has said it betterthan David Hume over 250 years ago—there are just three lawsof nature: the right of possession, transference by consent, andthe performance of promises. These are the ultimate foundationsof order that make possible markets and prosperity.Hume’s laws of nature derive from the ancient commandments:thou shalt not steal, thou shalt not covet thy neighbor’s possessions,and thou shalt not bear false witness. The “stealing” gameconsumes wealth and discourages its reproduction. Coveting theproperty of others invites a coercive state to redistribute wealth,thus endangering incentives to produce tomorrow’s harvest.Bearing false witness undermines community, management credibility,investor trust, long-term profitability, and the personalexchanges that are most humanizing.Only Markets Deliver the GoodsEconomic development is linked with free economic and politicalsystems nurtured by the rule of law and private property rights.Strong centrally planned regimes, wherever attempted, have failedto deliver the goods. There are, however, plenty of examples ofboth big and small countries (from China to New Zealand andIreland) where governments have removed at least some barriersto economic freedom. These countries have witnessed remarkable109