Dr. Tom G. Palmer is executive vice president for internationalprograms at the Atlas Network and oversees the work <strong>of</strong> teamsworking around the world to advance the principles <strong>of</strong> classical liberalism.Dr. Palmer is a senior fellow <strong>of</strong> the Cato Institute, wherehe was formerly vice president for international programs and director<strong>of</strong> the Center for the Promotion <strong>of</strong> Human Rights. Palmerwas an H. B. Earhart Fellow at Hertford College, OxfordUniversity, and a vice president <strong>of</strong> the Institute for HumaneStudies at George Mason University. He is a member <strong>of</strong> the board<strong>of</strong> advisors <strong>of</strong> Students For Liberty. He has published reviewsand articles on politics and morality in scholarly journals suchas the Harvard Journal <strong>of</strong> Law and Public Policy, Ethics, CriticalReview, and Constitutional Political Economy, as well as in publicationssuch as Slate, the Wall Street Journal, the New YorkTimes, Die Welt, Al Hayat, Caixing, the Washington Post, and <strong>The</strong>Spectator <strong>of</strong> London. He received his B.A. in liberal arts from St.Johns College in Annapolis, Maryland; his M.A. in philosophyfrom <strong>The</strong> Catholic University <strong>of</strong> America, Washington, D.C.; andhis doctorate in politics from Oxford University. His scholarshiphas been published in books from Princeton University Press,Cambridge University Press, Routledge, and other academicpublishers and he is the author <strong>of</strong> Realizing Freedom: Libertarian<strong>The</strong>ory, History, and Practice, published in 2009.125
NotesIntroduction: <strong>The</strong> <strong>Morality</strong> <strong>of</strong> <strong>Capitalism</strong>1 Robert Nozick, Anarchy, State, and Utopia (New York: Basic Books, 1974), p. 163.2 Joyce Appleby, <strong>The</strong> Relentless Revolution: A History <strong>of</strong> <strong>Capitalism</strong> (New York:W. W. Norton and Co., 2010), pp. 25-26.3 David Schwab and Elinor Ostrom, “<strong>The</strong> Vital Role <strong>of</strong> Norms and Rulesin Maintaining Open Public and Private Economies,” in Moral Markets:<strong>The</strong> Critical Role <strong>of</strong> Values in the Economy, ed. by Paul J. Zak (Princeton:Princeton University Press, 2008), pp. 204-27.4 Deirdre McCloskey, Bourgeois Dignity: Why Economics Can’t Explain theModern World (Chicago: University <strong>of</strong> Chicago Press, 2010), p. 48.5 For a simple arithmetic explanation <strong>of</strong> the principle <strong>of</strong> comparative advantage,see tomgpalmer.com/wpcontent/uploads/papers/<strong>The</strong>%20Economics%20<strong>of</strong>%20Comparative%20Advantage.doc.6 For a remarkable account <strong>of</strong> the general decline <strong>of</strong> the experience <strong>of</strong> forcein human affairs, see James L. Payne, A History <strong>of</strong> Force (Sandpoint, Idaho:Lytton Publishing, 2004).7 Envy as an impulse harmful to social cooperation and inimical to free-marketcapitalism has been studied by many thinkers. A recent and interesting approachthat draws on the Indian classic epic <strong>The</strong> Mahabharata can be foundin Gurcharan Das, <strong>The</strong> Difficulty <strong>of</strong> Being Good: On the Subtle Art <strong>of</strong> Dharma(New York: Oxford University Press, 2009), esp. pp. 1-32.8 Fernand Braudel, Civilization and <strong>Capitalism</strong>, 15th–18th Century: <strong>The</strong>Wheels <strong>of</strong> Commerce (New York: Harper & Row, 1982), p. 232.9 Ibid., p. 236.10 Louis Blanc, Organisation du Travail (Paris: Bureau de la Societé del’Industrie Fraternelle, 1847), cited in Braudel, Civilization and <strong>Capitalism</strong>,15th–18th Century: <strong>The</strong> Wheels <strong>of</strong> Commerce, op. cit., p. 237.11 Karl Marx and Frederick Engels, Manifesto <strong>of</strong> the Communist Party, inKarl Marx and Frederick Engels, Collected Works, Volume 6 (1976: ProgressPublishers, Moscow), p. 489.12 For a devastating seminal critique <strong>of</strong> Marx’s economic theories, see Eugenvon Böhm-Bawerk, Karl Marx and the Close <strong>of</strong> His System (1896; NewYork: Augustus M. Kelley, 1949). A better translation <strong>of</strong> Böhm-Bawerk’stitle would be, “On the Conclusion <strong>of</strong> the Marxian System.” Böhm-Bawerkrefers in his title to the publication <strong>of</strong> the third volume <strong>of</strong> Capital, which“concluded” the Marxian system. It should be noted that Böhm-Bawerk’scriticism is altogether an internal critique, and does not rest in any way on theresults <strong>of</strong> the “marginal revolution” in economic science that took place in1870. See also the essay by Ludwig von Mises, “Economic Calculation in theSocialist Commonwealth,” in F. A. Hayek, ed., Collectivist Economic Planning(London: George Routledge & Sons, 1935) on the inability <strong>of</strong> collectivism tosolve the problem <strong>of</strong> economic calculation.13 Karl Marx, “<strong>The</strong> Eighteenth Brumaire <strong>of</strong> Louis Bonaparte,” in DavidFernbach, ed., Karl Marx: Surveys from Exile: Political Writings, Volume II(New York: Vintage Books, 1974), p. 186. I describe the contradictions andconfusions <strong>of</strong> Marxian economic and social analysis in “Classical Liberalism,Marxism, and the Conflict <strong>of</strong> Classes: <strong>The</strong> Classical Liberal <strong>The</strong>ory <strong>of</strong> ClassConflict,” in Realizing Freedom: Libertarian <strong>The</strong>ory, History, and Practice(Washington: Cato Institute, 2009), pp. 255-75.126
- Page 2 and 3:
The Morality of CapitalismWhat Your
- Page 4 and 5:
ContentsIntroduction: The Morality
- Page 6 and 7:
Introduction: The Morality of Capit
- Page 8 and 9:
China, Morocco, the United States,
- Page 10 and 11:
in a friendly sense.” 9 The word
- Page 12 and 13:
Marx saw the “bourgeoisie” as i
- Page 14 and 15:
usinesses rising and falling more r
- Page 16 and 17:
and one an economist, and an interv
- Page 18:
Section IThe Virtues ofEntrepreneur
- Page 21 and 22:
is why I was mentioning the sophomo
- Page 23 and 24:
our society are motivated by purpos
- Page 25 and 26:
promote microfinance in poor countr
- Page 27 and 28:
ownership of wealth, was highly str
- Page 29 and 30:
in the world for a couple of hundre
- Page 31 and 32:
without a strong business sector th
- Page 34 and 35:
lightning rod and Watt’s steam en
- Page 36 and 37:
Competition and CooperationBy David
- Page 38 and 39:
advocates of “back to nature”
- Page 40 and 41:
that the associations within civil
- Page 42 and 43:
For-Profit Medicine and the Compass
- Page 44:
Profit and CompassionThat’s too s
- Page 48 and 49:
The Paradox of MoralityBy Mao Yushi
- Page 50 and 51:
after assessing the situation, sett
- Page 52 and 53:
efrigerators and color TVs, are onl
- Page 54 and 55:
epair trade are crowded out by the
- Page 56 and 57:
person, followed the principle of e
- Page 58 and 59:
if in return for A taking the bigge
- Page 60 and 61:
The Moral Logic of Equality and Ine
- Page 62 and 63:
equality in exchange is economicall
- Page 64 and 65:
eliminate or to establish inequalit
- Page 66 and 67:
earned by the poorest 10% of the po
- Page 68 and 69:
Adam Smith and the Myth of GreedBy
- Page 70 and 71:
them to lobby the state to create c
- Page 72 and 73:
strangers, but when we haggle for t
- Page 74 and 75:
Ayn Rand and Capitalism: The Moral
- Page 76 and 77:
the welfare state, which redistribu
- Page 78 and 79:
Welfarism: The Unchosen ObligationT
- Page 80 and 81: Egalitarianism: “Fair” Distribu
- Page 82 and 83: A worker is hired because of the an
- Page 84 and 85: To live by reason we must accept in
- Page 86 and 87: Economic outcomes in the market—t
- Page 88: is a social asset is incompatible w
- Page 92 and 93: The Market Economy and the Distribu
- Page 94 and 95: no unfavorable, economic results. O
- Page 96 and 97: owner, actual or potential, reflect
- Page 98 and 99: losses prompted by the chance of, o
- Page 100 and 101: We are not saying, of course, that
- Page 102 and 103: well-being reflects a potentially c
- Page 104: discrepancies. The difference was c
- Page 108 and 109: Global Capitalism and JusticeBy Jun
- Page 110 and 111: preferences, and infrastructure. It
- Page 112 and 113: Human Betterment through Globalizat
- Page 114 and 115: any particular sophistication. Afte
- Page 116 and 117: These young people are returning be
- Page 118 and 119: etterment through exchange and the
- Page 120 and 121: of diverse cultures. In this manner
- Page 122 and 123: primitive magical-religious communi
- Page 124 and 125: to censure, repression, and margina
- Page 126 and 127: That is why the best defense of our
- Page 128 and 129: A Little Further Reading for Fun an
- Page 132 and 133: 14 Karl Marx and Friedrich Engels,
- Page 134 and 135: Index of Proper Names(Chinese names
- Page 139 and 140: The Pierre F. and Enid Goodrich Fou
- Page 141 and 142: Students For LibertyA Free Academy,
- Page 143 and 144: Additional Resources for LibertyThe
- Page 145: “We need to change the narrative