Judaism, Markets, and Capitalism: Separating Myth from Reality

Corinne and Robert Sauer, co-founders of the Jerusalem Institute for Market Studies, contend that "it is not at all true that Judaism is a set of principles that endorses income redistribution and other progressive social programs." Instead, they say, Judaism is a system of thought that more naturally aligns itself with the basic principles of economic liberalism.

Why is it that American Jews suffer from (or perhaps enjoy) a particularly acute case of champagne socialism? The most popular answer to this difficult question involves the impact of Judaism on the belief system of American Jews, as well as Judaism’s emphasis on aggressively pursuing social justice. The conventional wisdom is that Judaism motivates Jews to be highly educated and to succeed professionally but to fervently support relatively collectivist social policies and other forms of aggressive government intervention for shaping an ideal society.