Morality of the Market
by Wes Riddle    Tue, Mar 20, 2012, 12:01 PM

In addition to the market’s “miracle” of efficiency, there is an important moral element in the functioning of the free-market economy that we sometimes overlook or undervalue.  There are none who are only masters and others who are simply servants!  In the market society we are all both servants and masters, but without either force or its threat.  In our roles as producers—be it as men who hire out our labor for wages, resource owners who rent out or sell our property for a price, or entrepreneurs who direct production for anticipated profits—we serve our fellow men in attempting to make the products and provide the services we think they may be willing and interested in buying from us.

 “Service with a smile” and “the customer is always right” are hallmarks of the seller’s deference to those to whom they offer their supplies.  What motivates such attitudes is the fact that in an open, competitive market no one can compel us to buy from a seller who offers something less attractive or more costly than what some rival of his is presenting to us for our consideration.

And why are we interested in not offending or driving away some potential customer into the arms of our rival suppliers?  Because only by successfully making the better and less expensive product can we hope to earn the income that then enables us to re-enter the market, now in the role of consumer and demander of what our neighbors are offering to sell to us.

As consumers, we become the “masters” who those same neighbors attempt to satisfy with newer, better, and cheaper products.  Now those whom we have served defer to us.  We “command” them, not through the use of force but through the attraction of our demand and the money we offer for the goods they bring to the market.  By how much we can “command” the service of others in the market in our role as consumer is directly related to the extent we have been successful in our service to our neighbors as reflected in the money income we have earned from satisfying their wants and desires.

In a free society, no man is required to do work or supply any good he considers morally wrong and ethically questionable.  He may earn less from choosing to supply something that is valued less highly in the market, but he cannot be forced to produce anything that God and/or conscience dictates to be wrong.

On the other hand, we cannot prevent others from supplying a good or service we find morally objectionable.  The ethics of liberty and the free market require that we use only morally justifiable means to stop our neighbors from demanding and supplying something that offends us.  We must use reason, persuasion, and example of a better and more right way to live.

Unfortunately, too many of our fellow men want to preserve or extend a return to a form of a slave society—regardless of the name under which it is presented.  Too many want to dictate how others may make a living, or at what price and under what terms they may peacefully and voluntarily interact with their fellow human beings for purposes of mutual material, cultural, and spiritual betterment.

Our task, for those of us who understand and care deeply about human liberty, is to reawaken our fellow men an awareness of the miracle and morality of the market.  The task, I know, seems daunting.  But it must have seemed that way to our American Founding Fathers when they heralded the truth of the unalienable rights of man for which they fought and then won a revolution, or when advocates of economic freedom first made the case for the free market.

The world was transformed by these ideals of the morality of free men in free markets.  What is most important is that each of us understands as best we can the miracle and the morality of the market economy.  Too often the friends of freedom allow the advocates of various forms of government regulation, control, and redistribution to set the terms of the debate.  Freedom will not win if we do not put those proponents of political paternalism on the defensive.

By that moral right do they claim to tell other men how to peacefully go about their private and market affairs—as long as those men do not use murder, theft, or fraud in their dealings with others?  By what ethical norms do those political paternalists declare their right to take that which others have honestly acquired through production and trade, and redistribute it without the voluntary consent of those from whom it has been taken?  By what assertion of superior wisdom and knowledge do they presume to know more than the individual minds of all the members of society about how the market should go about the business of manufacturing all the things we want, and matching the demands with the supplies?

Defenders of individual freedom and the market economy have nothing to be ashamed or fearful of in advocating the free society.  The American system of limited government, personal liberty, and free enterprise liberated the individual creativity and energies of many millions of people.  It provided the greatest opportunity for individual betterment and the highest standard of living ever experienced in human history.  It also generated the most charitable and philanthropic society in the world.  Therefore, it should be the critics and opponents of this system of individual freedom that should have to justify their continuing calls for reducing our liberty.

It was clear thinking and moral courage that won men liberty in the past.  Liberty can triumph again, if each of us is willing but to try.  We need to take to heart the words o the free-market Austrian economist and long-time FEE senior adviser, Ludwig von Mises:

 

Everyone carries a part of society on his shoulders; no one is relieved of his share of responsibility by others.  And no one can find a safe way out for himself if society is sweeping towards destruction… What is needed to stop the trend towards socialism and despotism is common sense and moral courage.

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Wesley Allen Riddle is a retired military officer with degrees and honors from West Point and Oxford.  Widely published in the academic and opinion press, he serves as State Director of the Republican Freedom Coalition (RFC) and is currently running for U.S. Congress (TX-District 25) in the Republican Primary.   He is also author of two books, Horse Sense for the New Millennium (2011), and The Nexus of Faith and Freedom (2012).  Both books are available on-line at
www.WesRiddle.net and from fine bookstores everywhere.

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