Michael Novak’s understanding of capitalism

This paper examines the work of Michael Novak, a prominent American philosopher and theologian with roots in Central Europe. The study focuses on Novak’s understanding of democratic capitalism and its role in promoting economic growth and human flourishing. Novak argues that when properly understood and practiced, capitalism can lead to a more just and prosperous society, as it is based on the human desire for freedom, creativity, and self-expression. However, he emphasizes that the success of capitalism depends on the presence of moral and spiritual values, which he believes are necessary for it to function properly. This paper explores Novak’s arguments and evaluates them in the light of current knowledge. It also examines which values Novak deems important and why. The paper concludes that while Novak’s understanding of capitalism has some limitations, it offers valuable insights into the relationship between economics and morality. Novak’s framework provides a starting point for future discussions on how to ensure that capitalism operates ethically and promotes the common good.