Abstract

This essay proposes an interdisciplinary framework for teaching markets and morals by exploring the linkages between political economy, civil society, and culture. Free markets in capitalist mixed economies shape, and are shaped by, political institutions of representative democracy, the vibrancy of civil society, and the values, norms, and beliefs embedded in culture. The major challenge for liberal society and free markets is to reconcile individual and group interests with the common good. The cultural contradictions of capitalism reflect the inadequacy of commercial virtues to sustain a liberal society. External constraints of law and institutional checks and balances in all spheres need to be conjoined with internalized moral constraints of a well-ordered individual conscience. This, in turn, requires a normative order which transcends radically the selfishness of individual and group interests, thus preserving liberty and democracy while enhancing economic efficiency and the social beneficence of free markets. The essay thus confirms Alexis de Tocqueville's notion of the interdependence of liberty, morality, and faith.