Is Capitalism Humane? Capitalism is not humane or inhumane, socialism is not humane or inhumane per se, but capitalism lends itself to the free rein of the more humane values of human beings. It tends to develop a climate of higher moral responsibility and to the greater achievement in every realm of human understanding.  The great virtue of the market is that people who hate each other can come together without any problem in the market. A loaf of bread may have been made by someone of disparate political views or of a different race, by people who may hate each other in any other context, but can work together in the production of that loaf of bread. In this way, capitalism promotes peace and cooperation.

In contrast, one of the effects of the welfare state is that it promotes regionalism, division, and ethnic divisiveness. “We must be fearful of the extent to which the welfare state is encroaching on our freedom,” Friedman said. “Encroaching on it indirectly by its fiscal effects. Putting us in a situation where the fiscal crisis that it tends to create, as in Britain, as in New York City, interferes with our freedom. Interfering with our freedom through which we become subject to bureaucratic control.”

He was so right on capitalism, and still is.