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Capitalism and Human Nature
In the spring of 1845, Karl Marx wrote, ". . . the human essence is no abstraction inherent in each single individual. In its reality it is the ensemble of social relations." Marx's idea was that a change in the "ensemble of social relations" can change "the human essence."

In June 2004 the communist North Korean government issued a statement to its starving citizens recommending the consumption of pine needles. Pyongyang maintained that pine needle tea could effectively prevent and treat cancer, arteriosclerosis, diabetes, cerebral hemorrhage, and even turn grey hair to black.

Tragically, human nature isn't at all as advertised, and neither is pine needle tea. According to the U.S. State Department, at least one million North Koreans have died of famine since 1995.

Marx's theory of human nature, like Kim Jong Il's theory of pine needle tea, is a biological fantasy, and we have the corpses to prove it. Which may drive us to wonder: if communism is deadly because it is contrary to human nature, does that imply that capitalism, which is contrary to communism, is distinctively compatible with human nature?

A growing scientific discipline called evolutionary psychology specializes in uncovering the truth about human nature, and it is already illuminating what we know about the possibilities of human social organization. How natural is capitalism? ...

...The problem of distributing scarce resources can be handled in part by implicitly coercive allocative hierarchies. An alternative solution to the problem of distribution is the recognition and enforcement of property rights. Property rights are prefigured in nature by the way animals mark out territories for their exclusive use in foraging, hunting, and mating. Recognition of such rudimentary claims to control and exclude minimizes costly conflict, which by itself provides a strong evolutionary reason to look for innate tendencies to recognize and respect norms of property.

New scientific research provides even stronger evidence for the existence of such property "instincts." For example, recent experimental work by Oliver Goodenough, a legal theorist, and Christine Prehn, a neuroscientist, suggests that the human mind evolved specialized modules for making judgments about moral transgressions, and transgressions against property in particular.

Evolutionary psychology can help us to understand that property rights are not created simply by strokes of the legislator's pen. ...

...Trade and mutually beneficial exchange are human universals, as is the division of labor. In their groundbreaking paper, "Cognitive Adaptations for Social Exchange," Cosmides and Tooby point out that, contrary to widespread belief, hunter-gatherer life is not "a kind of retro-utopia" of "indiscriminate, egalitarian cooperation and sharing." The archeological and ethnographic evidence shows that hunter-gatherers were involved in numerous forms of trade and exchange. Some forms of hunter-gatherer trading can involve quite complex specialization and the interaction of supply and demand.

Most impressive, Cosmides and Tooby have shown through a series of experiments that human beings are able easily to solve complex logical puzzles involving reciprocity, the accounting of costs and benefits, and the detection of people who have cheated on agreements. However, we are unable to solve formally identical puzzles that do not deal with questions of social exchange. That, they argue, points to the existence of "functionally specialized, content-dependent cognitive adaptations for social exchange."

In other words, the human mind is "built" to trade. ...