Competition and CooperationBy David BoazIn this essay, think tank executive and pundit David Boaz showsthe relationship between competition and cooperation, which are<strong>of</strong>ten presented as stark alternatives: a society is organized accordingto one principle or the other. To the contrary, as Boaz explains,in capitalist economic orders people compete in order to cooperatewith others.David Boaz is the executive vice president <strong>of</strong> the Cato Instituteand an advisor to Students For Liberty. He is the author <strong>of</strong>Libertarianism: A Primer and editor <strong>of</strong> fifteen other books, including<strong>The</strong> Libertarian Reader: Classic and Contemporary Writingsfrom Lao Tzu to Milton Friedman. He has written for newspaperssuch as the New York Times, the Wall Street Journal, and theWashington Post, is a frequent commentator on television andradio, and blogs regularly for Cato@Liberty, <strong>The</strong> Guardian, <strong>The</strong>Australian, and the Encyclopedia Britannica.Defenders <strong>of</strong> the market process <strong>of</strong>ten stress the benefits <strong>of</strong> competition.<strong>The</strong> competitive process allows for constant testing,experimenting, and adapting in response to changing situations.It keeps businesses constantly on their toes to serve consumers.Both analytically and empirically, we can see that competitivesystems produce better results than centralized or monopolysystems. That’s why, in books, newspaper articles, and televisionappearances, advocates <strong>of</strong> free markets stress the importance <strong>of</strong> thecompetitive marketplace and oppose restrictions on competition.But too many people listen to the praise for competition andhear words like hostile, cutthroat, or dog-eat-dog. <strong>The</strong>y wonderwhether cooperation wouldn’t be better than such an antagonisticposture toward the world. Billionaire investor George Soros, forinstance, writes in the Atlantic Monthly, “Too much competitionand too little cooperation can cause intolerable inequities andinstability.” He goes on to say that his “main point . . . is that31
cooperation is as much a part <strong>of</strong> the system as competition, andthe slogan ‘survival <strong>of</strong> the fittest’ distorts this fact.”Now it should be noted that the phrase “survival <strong>of</strong> the fittest” israrely used by advocates <strong>of</strong> freedom and free markets. It was coinedto describe the process <strong>of</strong> biological evolution and to refer to thesurvival <strong>of</strong> the traits that were best suited to the environment; itmay well be applicable to the competition <strong>of</strong> enterprises in themarket, but it certainly is never intended to imply the survival<strong>of</strong> only the fittest individuals in a capitalist system. It is not thefriends but the enemies <strong>of</strong> the market process who use the term“survival <strong>of</strong> the fittest” to describe economic competition.What needs to be made clear is that those who say that humanbeings “are made for cooperation, not competition” fail torecognize that the market is cooperation. Indeed, as discussedbelow, it is people competing to cooperate.Individualism and CommunitySimilarly, opponents <strong>of</strong> classical liberalism have been quick to accuseliberals <strong>of</strong> favoring “atomistic” individualism, in which eachperson is an island unto himself, out only for his own pr<strong>of</strong>it withno regard for the needs or wants <strong>of</strong> others. E. J. Dionne, Jr., <strong>of</strong>the Washington Post has written that modern libertarians believethat “individuals come into the world as fully formed adults whoshould be held responsible for their actions from the moment <strong>of</strong>their birth.” Columnist Charles Krauthammer wrote in a review<strong>of</strong> Charles Murray’s What It Means to Be a Libertarian that untilMurray came along the libertarian vision was “a race <strong>of</strong> ruggedindividualists each living in a mountaintop cabin with a barbedwire fence and a ‘No Trespassing’ sign outside.” How he neglectedto include “each armed to the teeth” I can’t imagine.Of course, nobody actually believes in the sort <strong>of</strong> “atomisticindividualism” that pr<strong>of</strong>essors and pundits like to deride. We dolive together and work in groups. How one could be an atomisticindividual in our complex modern society is not clear: would thatmean eating only what you grow, wearing what you make, livingin a house you build for yourself, restricting yourself to naturalmedicines you extract from plants? Some critics <strong>of</strong> capitalism or32
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The Market Economy and the Distribu
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We are not saying, of course, that
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Global Capitalism and JusticeBy Jun
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preferences, and infrastructure. It
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Human Betterment through Globalizat
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any particular sophistication. Afte
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These young people are returning be
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etterment through exchange and the
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of diverse cultures. In this manner
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primitive magical-religious communi
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to censure, repression, and margina
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That is why the best defense of our
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A Little Further Reading for Fun an
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Dr. Tom G. Palmer is executive vice
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14 Karl Marx and Friedrich Engels,
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Index of Proper Names(Chinese names
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The Pierre F. and Enid Goodrich Fou
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Students For LibertyA Free Academy,
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Additional Resources for LibertyThe
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“We need to change the narrative