ABSTRACT
Capitalism is notoriously controversial. In this chapter we trace the moral-psychological roots of the capitalism debate. We identify two central factors shaping lay views: first, attitudes to the profit motive, and second, differing conceptions of fairness. Anti-capitalist beliefs are rooted in a social view of the world as a place of cooperation and harmony, where people are naturally compassionate. Pro-capitalist beliefs stem from a view of the world as a place of competition over resources, where people are naturally self-interested. Next, we show how pro- and anti-capitalists favor distinct notions of fairness: proportionality (people get what they deserve) and egalitarianism. The anti-capitalist inclination for egalitarianism stems from their belief that inputs (e.g., effort) and economic outcomes are only loosely connected. The pro-capitalist defense of proportionality is predicated on the belief that, in the real world, inputs and outcomes are tightly connected. Next, we point to political ideology (liberal versus conservative) as the source of people’s beliefs about the strength of connection between inputs and outcomes. People adopt their beliefs wholesale from their political ideology, circumventing the cognitively “expensive” task of deliberating about each and every economic question.
