Critics Of Capitalism Misunderstand Economic Success

By Franco Guevara, Mises Institute

A few weeks ago, during a group conversation in a friendly setting, one of the participants said he admired another for his “great professional [economic] success.” It wasn’t flattery or superficial. It was a sober and sincere expression—or at least that’s how I perceived it. Yet the reaction from the others was disconcerting: an awkward pause, followed by nervous, mocking laughter.

But it wasn’t just mockery. There was also a subtle air of moral superiority. It seemed, to some, that the remark sounded materialistic—out of place in a context where something more “human” or “spiritual” was expected to prevail. As if admiring economic success were somehow vulgar, unworthy of “cultured” individuals.

That objection—for the purposes of this article—stems from a confusion. To assume that economic success is superficial is to ignore the fact that, under conditions of liberty, voluntary exchanges reflect decisions about how best to serve others’ needs. Economic success—when it is not the result of coercive privileges or crony capitalism—is not mere accumulation, it is the visible expression of private virtue translated into public utility. In that sense, it is not reductively materialistic, but profoundly ethical. Its ethical nature lies in the fact that such success only arises when others freely choose to validate it through their actions.

The discomfort was not spontaneous. As Agustín Laje warns, modern progressive discourse reduces everything to a dialectic of oppressor and oppressed. In that framework, the capitalist, the entrepreneur—the economically successful individual—is not seen as a benefactor, but as a disguised oppressor.

But this view stems from a fundamental error: the belief that the economy is a zero-sum game. As the Austrians argue, the entrepreneur enriches himself by better anticipating the subjective value something holds for others. Profit is not a sign of exploitation; it is a mark of discovery. Rothbard and Mises reinforce this idea with a simple but powerful truth: every voluntary exchange implies mutual benefit—otherwise, it wouldn’t occur. Profit is not parasitism; it is cooperation.

What if someone found the cure for cancer, sold it for ten dollars, and a billion people bought it? That person would become one of the richest in history—and one of the most valuable. Who would dare call them an exploiter?

Entrepreneurial success also activates virtuous cycles. The entrepreneur who succeeds creates jobs; those jobs generate income, and that income turns into saving or consumption. Both send signals to the market: what society wants, in what quantity, with what quality, and at what price. As Hayek explained, that order is not designed—it emerges. And as Israel Kirzner taught, the entrepreneur is the one who discovers and corrects those mismatches.

But the impact of the entrepreneur goes beyond economics: it inspires. In societies with libertarian tendencies, success can spark a kind of positive envy. In contrast, where another’s success is seen as structural injustice, what emerges is a culture of grievance and victimhood.

Of course, we are not talking here about crony capitalism—that statist virus which, as Jesús Huerta de Soto warns, is the real contaminant of modern society.

That is why, when someone expresses admiration for economic success, don’t dismiss them as simplistic. Perhaps—consciously or unconsciously—they are recognizing something profound: that in a free society, legitimate economic success does not fall from the sky or come by force. It is the result of serving others better than anyone else. Behind every fortune lies effort, risk, savings, time, discovery, validation, and social coordination.

More importantly: this is not a vision reduced to material things. It is about recognizing that genuine economic success is the visible expression of deeply human virtues: effort, self-improvement, intertemporal responsibility, respect for others’ liberty, and the capacity to create value. It is not a frivolous idea. It is a philosophical, moral, and civilizational one.

In the words of Bastos: “Capitalism, saving, and hard work. There is nothing else!”

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