Competition

My "progressive" friends are passionate about the preservation of world peace, the reduction of poverty, and the elimination of discrimination. They also actively oppose "globalization." Why? Because they believe that, by intensifying competition, the expansion of market capitalism corrupts human character and undermines their noble goals. Alas, they resist a process that promotes their cause much more efficiently (though unintentionally) than all of their conscious efforts.

The creative destruction of unhindered market forces makes us more flexible. The dynamics of capitalism create incentives to experiment, to take risks. Competition means that sometimes you win and sometimes you lose. It is the prospect of failure that develops our ability to make responsible choices. On the other hand, the legal protection of the individual's rights to enjoy the profits of his investment unleashes the spirit of innovation. It channels entrepreneurial energy to satisfy, in the most productive way, the most valued needs and wants of the various social groups.

The free market also teaches us the virtue of perseverance. It rewards efforts to build a good reputation. Global competition opens up new opportunities for the poorest people. It creates and disperses prosperity on a scale never seen before. The integration of markets makes people of various ethnic groups and cultures more interdependent, more appreciative, and less fearful of each other, thus strengthening the cause of peace. It makes it more costly for chauvinists, religious fundamentalists, racists, and sexists to indulge their prejudices while operating their businesses.

The intensity of competition and the subjective value of whatever is at stake may test our character to a point where it is very hard to resist temptations. What makes the crucial difference is the strength of our moral convictions. Coaches, business gurus, campaign advisers, drill sergeants, parents, doctors, preachers-they all teach us that the attitudes with which we enter a race can either make us or break us. Economies and democracies cannot function without functioning families to pass moral values from generation to generation. And they cannot function without the test of competition that strengthens our moral character by encouraging self-discipline.