Capitalism versus Socialism. We can sum up each economic system in one
line. Capitalism is based on human greed. Socialism is based on human need. Right? …No. Wrong. So wrong, it’s exactly backwards. And I’ll prove it to you. Been on Amazon lately? Each of the thousands of products Amazon offers
represents the work of people who believe they have something you want or need. If they’re right, they prosper. If they’re wrong, they don’t. That’s how the free market works. It encourages people to improve their lives
by satisfying the needs of others. No one starts a business making a thing or
providing a service for themselves. They start a business to make things or provide
services for others. I speak from personal experience. When I was the CEO of the company that owns
Carl’s Jr. and Hardee’s restaurant chains, we spent millions of dollars every year trying
to determine what customers wanted. If our customers didn’t like something we
changed it and fast because if we didn’t our competitors would, pun intended, eat us
for lunch. The consumer – that’s you -- has the ultimate
power. In effect, you vote with every
dollar you spend. In a socialist economy, the government has
the ultimate power. It decides what you get
from a limited supply it decides should exist. Instead of millions of people making millions of decisions about what they want, a few
people - government elites - decide what people should have and how much they
should pay for it. Not surprisingly, they always get it wrong. Have you ever noticed that
late-stage socialist failures always run out of essential items like toilet paper? Of course, this isn’t a problem for those
who have the right connections with the right people. Those chosen few get whatever they want. But everyone else is out of luck. Venezuela, once, the richest country in South
America, is the most recent example of socialism driving a prosperous country into
an economic ditch. Maybe you think it’s an unfair example. I’m not sure why, but okay. We’ll ignore the fact that Leftist activists
celebrated it as a great socialist success right up until it wasn’t. But what about Western European countries? Don't they have socialist economies? People seem pretty happy there. Why can’t we have what they have – free
health care, free college, stronger unions? Good question. And the answer may surprise you. There are no socialist countries in Western
Europe. Most are just as capitalist as the United States. The only difference -- and it’s a big one
-- is that they offer more government benefits than the US does. We can argue about the costs of these benefits
and the point at which they reduce individual initiative, thus doing more harm
than good. Scandinavians have been
debating those questions for years. But only a free market, capitalist economy can produce the wealth necessary to sustain all
of the supposedly “free stuff” Europeans enjoy. To get the “free stuff,” after all, you
have to create enough wealth to generate enough tax revenue to pay for everything the
government gives away. Without capitalism, you’re Venezuela. In a 2015 speech at Harvard, Denmark’s prime
minister took great pains to make this point: “I know that some people in the U.S.
associate the Nordic model with… socialism, therefore I would like to make one thing clear. Denmark is far from a socialist planned
economy. Denmark is a market economy.” So, when you point to Denmark as a paragon
of socialism, you’re really singing the praises of capitalism. The more capitalism, the less “socialism”
you need. Look at America since 2017. A policy of lower taxes and less government regulation (that’s more capitalism) has
led to a robust economic expansion, something thought
impossible just a few years earlier. Unemployment, notably among minority groups
typically most at risk for poverty, is at a generational low. Economic expansion gets people off welfare
and into work (that’s less “socialism”). None of this requires a degree in economics. Common sense is all you need. That’swhy it’s so frustrating to see young people praising socialism and criticizing capitalism. It’s bad enough that they’re working against
their own interest – better job prospects, better wages, personal freedom -- but they
are also working against the interest of the less fortunate. Capitalism leads to economic democracy. Socialism leads to the economic dictatorship
of the elite. Always. And everywhere. So, beware what you ask for. You just might get it. I’m Andy Puzder, author of The Capitalist
Comeback, for Prager University.
I may agree with it, but it's still from PragerU, which makes me hate myself for agreeing with it.
PragerU isnt the most reliable of places for learning lol
“Socialism leads to the economic dictatorship of the elite” as if we don’t have that in the U.S. presently, lol.