Is there a connection between capitalism and morality?

It is often assumed that capitalism and free market philosophies are justified on the basis of their effectiveness at creating wealth, jobs, or healthy economies. Though that is the common view, it is not the only basis for supporting “laissez faire” economic systems. In fact, some political and economic philosophers base their support of capitalist ideas on morality, with reference to the economic effectiveness of the system as secondary in importance.

The common ground of these “moral capitalism” theories is that they recognize two essential ways values change hands. One way is by the use of force (or the threat of its use), which is what all socialist systems have been based on, and how all government programs operate today. In other words, if people want food stamps, housing help, or any kind of government aid, it is first necessary to forcefully take money from someone else (people pay taxes because they know they’ll be jailed if they don’t). Capitalist who base their beliefs on moral reasoning consider this to be theft.

The other basic way values change hands is by voluntary exchange between people. In other words, if I want your car or book, I have to pay a price you’re willing to take; no coercion is allowed. This free exchange is the proper way to associate with others, according to those who base their support of capitalism on moral grounds. The more general principle is that no man has the right to initiate the use of force against another (defense is a response, not an initiation or “first use” of force).

I have my own views on this, which are a bit more subtle than the either/or scenarios suggested here. But This post is meant to get you thinking about the matter for yourself, so I leave you with two questions about capitalism and morality:

1. When are we justified in using force (or the threat of it) against others to take what they have?

2. Can those who advocate socialist policies or any redistributive government plans answer the moral questions raised by the capitalist proposition that people should not be allowed to initiate the use of force against others?