In order to understand the inevitable trend toward free markets, and why it will lead to a better quality of life for nearly everyone, let’s examine the facts.

In every country that has been divided into two parts, with capitalism in one part and socialism in the other, the capitalist side has prospered. Consider Vietnam, Korea, Germany and China. In every case, the people who were fortunate enough to be on the capitalist side have enjoyed not only more freedom, but also more economic wealth than their socialist neighbors.

And yet, many critics argue that capitalism is a flawed system because it leads to declines in equality, ownership of one's own work, the environment, and morality.

Each of these arguments is widely accepted in some circles, but do they hold up to scrutiny? The eminent scholar James Q. Wilson addressed this subject when he presented a seminal lecture called "The Morality of Capitalism." Wilson spent three decades as Professor of Government at Harvard University and has served on a number of national commissions in the United States concerned with public policy.

To counter the first argument, Wilson pointed out that every social system produces some kind of inequality — either of wealth, or power, or military strength. When governments have asserted that they have gotten rid of economic inequalities, they have inevitably created a shadow system of "haves" and "have nots." Sometimes, it takes the form of a ruling class that enjoys unimaginable luxuries, such as the opulence of Saddam Hussein's many palaces in Iraq, while ordinary citizens struggle to get enough to eat. Other times, it takes the form of a black market where Western goods are sold to the highest bidder.

In any society, then, it is impossible to avoid inequality. However, capitalist inequality gives people the best hope of rising to a higher level. To gain more wealth, an individual must only work harder or acquire more resources.

The second argument, that capitalism alienates people from their work, is also wrong. According to Wilson, work does not produce alienation; instead, the problem is idleness. Most people enjoy their jobs, and feel they are "lost" or "disconnected" when they are not working. According to surveys, more Americans are satisfied with their employers than with their communities, so work in a capitalist society does not...