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It is my intent to put forth a moral justification of the Ayn Rand said “The moral justification of capitalism does not lie in the altruist claim that it represents the best way to achieve the ‘common good’. It is true that capitalism does, if that catch phrase has any meaning, but this is merely a secondary consequence. The moral justification for capitalism lies in the fact that it is the only system consonant with man’s rational nature, that it protects man’s survival qua man, and that its ruling principle is: justice.” In other words, the common good is best achieved through capitalism. This is not because that is its main purpose, but because it is a secondary consequence. Because the common good is merely a secondary consequence and not the primary purpose of capitalism, it is seen by some to be a necessary evil. However, I view it as simply necessary. Capitalism is an economic system in which investment in and ownership of the means of production, distribution and exchange of wealth is made and maintained chiefly by private individuals or corporations. Capitalism respects the rights of the individual to set and fulfill his own goal and to achieve his own happiness. Therefore, capitalism is not only practical, but morally sound, as Capitalism is about the creation of wealth. Wealth tends to be created more abundantly in a society of laissez-faire capitalism. The ideas behind the argument for capitalism are simple. Assuming that consumers are most concerned with their own self interest, the demand for goods that are the most useful or helpful for society will arise. Assuming, also, that producers are most concerned with their own self interest, they will further their own cause by striving to produce those goods which will be the most useful to society at the lowest possible cost. Many economists have debated that capitalism is practical because it allows each individual to align their actions with their own thoughts, instead of acting under the demands of bureaucrats. A multitude of minds attack each problem under capitalism. The successful thinkers thrive because they are able to see the opportunities that the other thinkers do not. They think of new products and come up with more efficient production methods which are innovative to their field. Everyone is able to begin a business, raise money, and market his own product in a free market, and each individual thinker is free to use his own ideas, and his success or failure is based on the merits of his own idea. The successful thinker brings improved and new products at a lower cost which creates In order to fully understand capitalism, we must have some understanding of other politico - economic systems. Socialism is a theory of social organization that advocates the ownership and control of industry, capital, land, etc. by the community as a whole. However, when an economy is run by the state, the plans of the individual are completely wiped out by the planning of the government officials. The predominant apathy of the worker is caused by the fact that these workers, first of all, do not own the business, second, they have no control over the course of their own careers, and thirdly, will neither gain nor lose from whatever actions they may take. The extra wealth achieved in success in an increase in production is only used to support those who did not help to attain this new wealth. The motto of the welfare state is “from each according to his ability, to each according to his need”. However, no one wants to be that able man in such a system. Such a man is named into a life of unredeemed drudgery in which others consume the product of his labor. Unsurprisingly, few societies that have advanced this socialist ideal have found many volunteers to be the men of ability who keep the This can be stated more essentially, by asserting that capitalism is practical simply because it relies on the undying motive which is the power of self interest. Capitalism drives people to be loyal by their own goal and be the ambition for life improvement. These people are driven by the idea that the value of a life is irreplaceable and cannot be wasted or sacrificed. This principle is also a crucial moral principle which states that every man is an end in himself, and not a mere cog in the collective machine to be exploited for the ends of others. Almost all of the intellectuals from our time seem to condemn individualism and that the individual is a mere tool, ventured for the ends of the society. Because the society is only a group of individuals, some men must be sacrificed for those other men who want to represent Socialism proposes that the means of production be controlled by the state, not the individual. According to Karl Marx, capitalism causes the working class to feel alienated from their work and from society. Marx also believed that capitalism was the cause of class struggles between the bourgeois and the proletariat. The problem with socialism is that it is not practical. Capitalism is not only practical, but moral. Capitalism is the only system that safeguards the freedom of thought and the integrity of the individual. As was illustrated by the book, The Fountainhead, for every product that improves human life is made possible by the thinking of the world’s creators and producers. Thus, as a society, we take pleasure in a higher quality of life. We enjoy abundant crops due to more efficient methods of agriculture. We enjoy a life span that is almost double that of the preindustrial era due to advances in medical technology. We also relish the comfort of air conditioning and the convenience of airline travel because scientists and inventors have made crucial mental connections to create these products and conveniences in the name of hopeful Most people recognize the right of a scientist or engineer to be free to ask questions, to pursue new ideas, and to create new innovations. However, at the same time, people tend to ignore the third essential man to human progress: the business man. The business man is the one who takes the achievements of the scientists and engineers and turns them into reality. There is a process of natural inquiry which is every bit as important as that of the scientist or inventor behind the activities of the business man. The business man must find and train workers who are capable of producing a quality product. He must determine how to make the product affordable by cutting costs. He must decide how best to market and distribute his product so that it reaches its potential consumers as well as how to finance his venture in a way that will promote future growth. All of these issues are dependent upon the mind of the business man. If he is not left to think freely, his venture may lose money and the product may go out of existence. It is important that the business man have a high degree of dedication to free thought not only to solve these problems, but also in dealing with employees, investors, and customers. He must persuade suppliers, employees, and investors that his product will be a profitable one. Otherwise, his investors will take their money elsewhere, the best employees will seek better opportunities, and the suppliers will look for The only way to respect this virtue of the dedication to free thought is to leave the individual free to act upon his own judgment. This is what capitalism does. All decisions are to be left solely to the “free market”. Obviously, decisions are left up to buyers, sellers, manufacturers and distributors. In a laissez-faire, free market economy, the individual is driven by his own ambition. If both partners in the transaction do not expect to gain from the transaction, they are free to go elsewhere. According to Adam Smith, the rule of capitalism is that every trade occurs by mutual consent and to mutual Socialism or any other system that sacrifices the individual to the society is a system of virtual slavery. Furthermore, mixed systems, such as today’s regulatory and welfare state, merely unleash the same Only capitalism is true to the moral ideals stated in the Declaration of Independence: the individual’s right to “life, liberty, and the pursuit of happiness”. In conclusion, I would like to submit yet another quote by Ayn Rand which basicly sums up all of the ideas put forth in this paper. “Intellectual freedom cannot exist without political freedom;political freedom cannot exist without economic freedom; a free mind and a free market are corollaries.” Bibliography: Word Count: 1433
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