ABSTRACT This paper argues that the sort of liberty associated with a capitalist economic system is of particular value because it ensures moral self‐responsibility. Two conceptions of freedom are considered but only one is invoked. It is contended that one, namely, positive freedom, is actually a kind of ability or power. One's positive freedom may be lost as a result of events not initiated by other human beings. Negative freedom, by contrast, is a distinctively normative notion. It is a social (...) condition that members of a community ought to maintain out of respect for human dignity, that is, each person's responsibility to choose to live rightly. It is argued that since ‘ought’ implies ‘can’, persons can only be morally responsible for what they can choose to do. If they lack negative freedom, then in addition to natural limitations, they will also be limited by the voluntary conduct of others. Yet this limitation could be prevented by the choices of others, including governments, to secure for all persons their negative freedom. Because of the universality of the requirement that each person be left free, such negative freedom is the quintessential public good. Finally, the concrete expression of negative freedom is the right to private property— one's sphere of moral authority. This makes the capitalist economic system an essential aspect of the society that secures negative freedom. (shrink)