As America celebrates 250 years of independence, we should reflect on the principles that have shaped our nation and consider how they continue to promote economic, social and moral growth.
Recent elections have brought renewed attention to democratic socialism. Across America, members of the Democratic Socialists of America have won elections. In Seattle, Katie Wilson was elected mayor. In New York, Zohran Mamdani was elected mayor. In Queens, N.Y., Claire Valdez was elected assemblywoman. These politicians have renewed an important conversation about America’s economic future.
America has long been known as the “land of opportunity.” I believe that capitalism has enabled generations of Americans to pursue the American Dream by creating opportunities to work, innovate, build businesses and improve their circumstances. For Jewish Americans, these opportunities also provide a practical way to fulfill the mandate of tikkun olam by strengthening communities, creating jobs and helping those in need.
Research shows how limitations on autonomy, such as those of socialism, can negatively affect mental well-being. Psychologically, capitalism allows people to thrive. A 2025 article by Kristen Weir for the American Psychological Association explains that self-determination theory identifies autonomy, competence and relatedness as essential psychological needs. Capitalism allows autonomy, the feeling that you are choosing your behavior rather than being controlled or compelled by others. It allows people to feel competent, believing they can be effective in their work. It also fosters connectedness and belonging.
Research published in Frontiers in Psychology in 2016 found that self-determination helps people experience their work as meaningful, while external regulation is associated with lower motivation and less voluntary engagement. Capitalism allows people to rise out of poverty and enter the workforce, using their skills to build businesses, innovate and contribute to society.
America was founded on the inalienable rights of “life, liberty and the pursuit of happiness.” When James Madison authored the Bill of Rights in 1791, he emphasized individual liberties and protections for private property. Our Constitution limits government power while protecting individual autonomy. By contrast, socialism centers on collective economic equality through state control of the means of production.
That is, socialism is an economic system in which goods, natural resources and major industries are collectively owned by society and managed by the government. It seeks an egalitarian society by placing the state, rather than market forces, in control of investment and production decisions.
Capitalism gives everyone the opportunity to create, innovate and climb the economic ladder.
History provides an early example of this in action: In 1825, Robert Owen established the socialist “utopian” community of New Harmony in Indiana.
The community abolished private property and promised equal benefits to all regardless of labor. Although it attracted intellectuals, artists and idealists, it lacked tradesmen, farmers and craftsmen. It did not account for differences among the townspeople, including matters of faith; nor did it reward those who worked harder. Food production and the availability of basic goods declined, conflict increased, and within two years, the community had failed.
It is also clear that economic freedom supports continued scientific innovation. In 2019, the pharmaceutical industry invested $83 billion in research and development because modern drug development requires substantial, continuous investment in scientific discovery. Continued investment in research is essential for developing new treatments for conditions such as depression and schizophrenia.
The Congressional Budget Office estimated in 2025 that a permanent 10% reduction in National Institutes of Health funding for preclinical research would reduce the number of new drugs introduced over time, indicating that the pharmaceutical industry’s enormous investments are an absolute necessity.
Jewish tradition contains enduring principles that align with many features of a capitalist economy, including private property, honest commerce, the dignity of work and the obligation to use one’s resources to help others.
The Torah details the division of the Land of Israel among specific tribes and families, establishing hereditary property. The Talmud in Berachot 8a teaches that one who benefits from the labor of his own hands is praiseworthy. Psalm 128:2 declares, “You shall eat the fruit of the labor of your hands; you shall be happy, and it shall be well with you.” Tractate Bava Metzia is devoted to commercial transactions, contracts, liability and property law.
Judaism also teaches that those blessed with financial resources have an obligation to give tzedakah to those in need. For Jews of every background, tikkun olam calls upon us to repair the world by helping others improve their circumstances. Economic opportunity allows individuals not only to support themselves and their families, but to contribute to their communities through charity, employment, innovation and service.
I write from lived experience. I grew up in poverty and have struggled professionally, so I understand what it means to live with financial instability. I see economic freedom not only as a policy structure but as a pathway to dignity, stability and opportunity.
The lives of such people as Oprah Winfrey, Chris Gardner, Ken Langone, Ralph Lauren and Howard Schultz demonstrate how Americans have used their talents, determination and innovation to overcome poverty and build successful businesses. Their stories reflect the opportunity to create, innovate and climb the economic ladder.
As the United States marks its 250th anniversary, we should remember that the promise of independence extends beyond political freedom. It includes the opportunity to pursue meaningful work, improve one’s circumstances and help others do the same.
For Jewish Americans, capitalism provides opportunities to fulfill the enduring mandate of tikkun olam through work, charity, innovation and personal responsibility. In doing so, it supports not only economic growth, but also the social and moral growth that has long been central to both the American experiment and Jewish life.
