Fairness and Freedom

Reading Response: The Spirit of Democratic Capitalism, by Michael Novak

Michael Novak makes a convincing argument for capitalism and raises some serious concerns about socialism. He writes, "As an idea, socialism has been forced by its own failures to retreat from the field of economics to the high ground of morality. " His basic argument is that, while socialism sounds good and moral, it just doesn't work. Capitalism, on the other hand, while not appearing as equal and humane, is actually more fair and just than socialism - plus, it actually works.

He is also concerned with socialism causing too much equality, in the sense that minorities would lose their voices because they would be lumped in with the majority, and that most of society's "amenities" would be lost if everyone was paid a middle-class wage. He argues that money is a good thing, and being wealthy is not evil, provided one does productive things with his or her money. He makes an interesting point when he says, " That riverside restaurant which we can afford to go to once in awhile, on special occasions, is in fact kept going by those who can afford to eat out there often and well: no rich, alas, no restaurant. " It is instances like these that the wealthy benefit the lower classes, not to mention all the foundations, hospitals, schools, museums, etc., that the wealthy help to fund.

He argues that, before immediately calling capitalism evil and socialism good, to look at all the facts. "...socialism is not an improvement upon democratic capitalism but a relapse into the tryannical unities from which the latter has emerged. A unitary, dominant, central state authority has been tried before. The enforcement of high moral ideals by coercion of law has been tried before."

I have always thought capitalism was a better economic way, but I was torn because of the morality arguments that socialism pushes. However, after reading Novak, I feel confident in saying that capitalism is good, and even fair. Not equal, but fair.