The recent comments by New York City Mayor Zohran Mamdani have sparked significant discussion, particularly his comparison of the “coldness of rugged individualism” with the “warmth of collectivism.” This perspective reflects a common critique that capitalism reduces us to “atomistic individuals,” suggesting that market-oriented structures can erode our social bonds and relationships. The argument posits that the competitive nature of capitalism promotes a mindset where individuals view each other as adversaries rather than collaborators. In contrast, advocates of socialism claim it fosters unity and cooperation. However, this interpretation of capitalism is fundamentally flawed.
Consider your economic interactions this week. How many of these have involved cooperation versus competition?
Chances are, your recent visit to Starbucks for coffee didn’t involve any competition. Paying your phone bill, shopping for groceries, or enjoying a movie were not battles for survival. Instead, you engaged in a succession of mutually beneficial exchanges. You traded money for something you valued more than the cash you spent. As Adam Smith famously stated, “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.”
In everyday life, competition is often less prominent than cooperation. While businesses do compete for customers, and you may have vied for a job, instances of collaboration vastly outnumber competitive moments. Market competitions essentially test who can best serve the needs of others. They serve as platforms to unveil the most efficient collaborative efforts.
Adam Smith recognized the inherently cooperative essence of markets when he observed, “A wool coat is the produce of the joint labour of a great multitude of workmen…”
“…The shepherd, the sorter of the wool, the wool-comber or carder, the dyer, the scribbler, the spinner, the weaver, the fuller, the dresser, with many others, must all join their different arts in order to complete even this homely production. How many merchants and carriers, besides, must have been employed in transporting the materials from some of those workmen to others who often live in a very distant part of the country! How much commerce and navigation in particular, how many ship-builders, sailors, sail-makers, rope-makers, must have been employed in order to bring together the different drugs made use of by the dyer, which often come from the remotest corners of the world!”
Smith’s insight emphasizes that markets do not isolate us; rather, they encourage individuals across the globe to work together.
Reflect again on that cup of coffee. From bean farmers to baristas, countless individuals collaborate daily, unaware of each other’s identities, to ensure you receive your caffeine fix at just the right moment. This synchronization is no accident—market prices provide critical information that helps everyone understand what others desire, along with the motivation to satisfy those needs.
While it is true that competition exists in markets—evident in titles such as Business Warfare—the reality is that businesses are competing to determine who can best meet consumer demands. Take Netflix, which outperformed Blockbuster by offering enhanced convenience, a broader selection, and the elimination of late fees. Ultimately, Netflix succeeded because consumers preferred the experience it provided.
This principle extends to job markets as well. If you aspire to work at Starbucks, you’ll need to distinguish yourself among fellow applicants. Gaining an edge means showcasing your ability to improve customer experiences—whether through punctuality or a friendly demeanor. Market competition centers on demonstrating effective cooperation with others.
It’s important to note that democratic socialists are not fully against competition; democracy itself necessitates competition. Furthermore, they support democracy in workplaces alongside political environments. If competing for funds is deemed a cold pursuit, then competing for votes seems comparably frigid. Market competition actually fosters collaboration among diverse individuals with varying beliefs, encouraging them to coordinate numerous choices. You and your barista needn’t share identical viewpoints on justice to work together successfully, and far from being isolating or harsh, the free market cultivates a system of interconnectedness that unites strangers for mutual benefit.
