I’m responding specifically to sentiments I’ve seen expressed in the conservative world as of recent. I’ve noticed there’s been a large injection lately of attempts to piously criticize a sort of “greedy” or “profit-oriented” capitalism. All of this is nonsense on stilts, built on the foundation of what Mises called the “Anti-capitalist mentality.” It is cautious toward pure and unfettered capitalism because it does not understand capitalism.
Capitalism is a social arrangement in which the means of production are privately owned; where the employment of said means is done according to the will of the consumers, as communicated via the price mechanism. Whether this employment of scarce capital is due to the capitalist being “kind” (and therefore doing as the consumer wants) or “greedy” (and therefore, in order greedily acquire a profit, doing as the consumer wants), it makes no difference. Perhaps we would want a man to be kind, and not greedy, but this has nothing to do with the existence of capitalism.
Man has an incalculable number of motivations for acting as he does, and no man, by praxeological definition, acts contrary to his own interests. In this sense, man is entirely self-interested. Indeed, we were created to be this way. But self-interest expresses itself in a capitalist system by enabling man to gain what he desires only if he first contributes to the gain of his fellow man. This is what economists have referred to as a “coincidence of wants.” A kind man does not automatically provide for his fellow man better than the greedy man.
Whether this is “greed” or not is too difficult to judge. In any case, the benefits of Capitalism don’t care whether a man is greedy or kind. Or whether a man is lustful or compassionate. Capitalism is the arrangement wherein each man acts according to his own mental state and results in a growth in prosperity and a betterment of the masses. As Mises writes:
Capitalism is essentially a system of mass production for the satisfaction of the needs of the masses. It pours a horn of plenty upon the common man. It has raised the average standard of living to a height never dreamed of in earlier ages. It has made accessible to millions of people enjoyments which a few gen- erations ago were only within the reach of a small élite.
Economic interventionism against greed, regulation which aims to “protect” consumers, regresses this glorious trend and not only puts back on the path to serfdom, but it also hampers the opportunity that the masses and the impoverished would have had to participate in the rising standards of living. It is a roadblock, a detriment, to the common man.