Capitalism Makes Society Less Racist

“Capitalists make a profit by serving their customers. The more customers they please, the more money they might make. It hurts the bottom line to exclude any groups.

“Look around the world,” says Norberg. “The least racist societies with the fewest expressions of racist attitudes are the most capitalist countries.”

Norberg’s new book The Capitalist Manifesto highlights a Journal of Institutional Economics study that found a correlation between economic freedom and “tolerance of ethnic groups.”

“Capitalism,” he says, “is the first economic system where you only get rich by opening up opportunities for others. It pays to be colorblind. It pays to be open to willing customers and workers who could enrich your company no matter what religion or race….It doesn’t mean that every person will be colorblind. There will always be idiots. But in capitalism, it’s costly to be an idiot.”

He reminds us that in the Jim Crow South, businesses fought racism, because the rules denied them customers.”

“The streetcar company in Mobile, Alabama, only obeyed Jim Crow laws after their conductors began to get arrested and fined.

Those business owners may have been racist—I can’t know—but they fought segregation.

“We got Jim Crow laws,” says Norberg, “because free markets weren’t willing to discriminate.”

Capitalists cared about green—not black or white.”

Leave a Reply

Your email address will not be published. Required fields are marked *