What Money Can’t Buy: The Moral Limits of Markets

Capitalism is an economic system whereby private entities or individuals own the means of production, rather than the state. Economically, capitalism relies on a market economy. The forces of supply and demand shape prices and distribute goods and services to individuals within market economies.

On the other hand, collectivist governance systems, such as communism and socialism, are ruled far more by government intervention in terms of production, regulation, and distribution of goods and services. These economies are called “command economies.” Command economies are driven by the importance of shared wealth, rather than individual prosperity.

Western countries in the early 21st century, such as America and the United Kingdom, have mixed economies, characterized by a combination of command and market economy features (“Market Economies.” National Geographic Societies, 2023). Michael Sandel proposes that governments in Western countries since the 1980s have moved increasingly toward market economy features.