Capitalism Myths: Part 1 — Transcript

Full transcript

1. 0:00everywhere people trash capitalism
2. 0:03no system has redistributed wealth from
3. 0:05the poor to the rich as effectively as
4. 0:08our own i call it slavery by another
5. 0:11name but what they think they know about
6. 0:13capitalism
7. 0:13is often wrong in this video and the
8. 0:16next we'll bust
9. 0:17seven myths about capitalism no one ever
10. 0:21makes a billion dollars
11. 0:22you take a billion dollars that smith
12. 0:26wants
13. 0:27capitalists get rich by taking money
14. 0:29from others
15. 0:30jeff bezos has what a hundred billion
16. 0:32dollars
17. 0:33yeah his wealth is making a lot of
18. 0:35people poor people assume that because
19. 0:37they think
20. 0:38we have a finite amount of money a
21. 0:40finite amount
22. 0:41so when they win you lose but that's not
23. 0:45true
24. 0:45because entrepreneurs create new wealth
25. 0:48research shows that when they got rich
26. 0:51they only kept
27. 0:522.2 percent of the additional wealth
28. 0:55they generated for the economy
29. 0:57economist dan mitchell in other words
30. 0:59the rest of us
31. 1:00captured almost 98 percent of the
32. 1:02benefits today
33. 1:04apple is going to reinvent the phone
34. 1:07yes steve jobs kept billions
35. 1:11but by creating apple he gave us more
36. 1:15so many new jobs and he added billions
37. 1:17to our economy
38. 1:19all by creating tech that makes our
39. 1:21lives better
40. 1:22i hope that we get a hundred new super
41. 1:25billionaires
42. 1:26because that means that there's a
43. 1:27hundred new people who have figured out
44. 1:29ways to make the rest of our lives
45. 1:31better off
46. 1:32let's abolish billionaires this former
47. 1:34labor secretary says
48. 1:35entrepreneurs like jeff bezos would be
49. 1:37just as motivated by say
50. 1:39100 million or even 50 million dollars
51. 1:44but he misses the most important fact
52. 1:46about capitalism
53. 1:47i'm not giving jeff bezos any money
54. 1:50unless he's
55. 1:51selling me something that i value more
56. 1:53than that money
57. 1:55billionaires no one deserves to have
58. 1:58that much money
59. 1:59none of these zillionaires needs that
60. 2:01much money if you put a cap
61. 2:03on how much money someone can make are
62. 2:05they going to continue innovating
63. 2:07no maybe you just decide to take it easy
64. 2:09you retire
65. 2:10you sell a yacht around the world you're
66. 2:12going to start consuming
67. 2:14instead of saving and producing when i
68. 2:17say things like that people call me a
69. 2:19complete
70. 2:20and tweet more money in the richest
71. 2:22hands
72. 2:23means money sitting in the bank doing
73. 2:25nothing
74. 2:27but that's an ignorant view of banks in
75. 2:30reality
76. 2:31that money gets lent out which allows
77. 2:34other people to
78. 2:35build businesses buy homes get educated
79. 2:38new machinery tools factories equipment
80. 2:41technology still we hear the rich
81. 2:44getting richer
82. 2:45and the poor getting poorer that's myth
83. 2:47too the truth is that the
84. 2:49poor and middle class are getting richer
85. 2:51too the economic pie
86. 2:54grows we are much richer than our
87. 2:56grandparents and our grandparents were
88. 2:58much richer
89. 2:59than their grandparents for thousands of
90. 3:01years the world had
91. 3:02almost no wealth creation then some
92. 3:05countries tried capitalism
93. 3:07you can see that per capita gdp is
94. 3:09climbing and climbing and climbing
95. 3:11capitalists helped everyone including
96. 3:14the poor
97. 3:15they do by bringing cheaper and better
98. 3:17food to my supermarket
99. 3:18they do it by providing better goods and
100. 3:20services so high-tech
101. 3:22it could only come from motorola look
102. 3:24how communications changed
103. 3:2525 years ago phones looked like this
104. 3:28then we got the blackberry
105. 3:30the iphone way smarter than any mobile
106. 3:32device has ever been
107. 3:33now we have cheap smartphones when the
108. 3:36media say
109. 3:37the middle class is in decline america's
110. 3:38middle class is in decline
111. 3:40well they're right but they miss why
112. 3:42shrinking because more and more people
113. 3:44are moving into those upper income
114. 3:46quintiles
115. 3:48the rich get richer in a capitalist
116. 3:50society but guess what
117. 3:52the rest of us get richer as well the
118. 3:54average family today is almost a third
119. 3:56richer than 40 years ago
120. 3:58because capitalists compete to get our
121. 4:01dollars
122. 4:03of course this assumes there's
123. 4:04competition but i'm told that's no
124. 4:06longer true in fact
125. 4:08i'm a miserable selfish pig for not
126. 4:11saying that
127. 4:12monopolies destroyed the free market
128. 4:14some republicans and democrats say
129. 4:17that's why tech companies must be broken
130. 4:19up calling facebook
131. 4:21amazon and apple all monopolies but are
132. 4:24they really monopolies
133. 4:25we do have monopolies the government
134. 4:27school system
135. 4:28the postal service monopolies are
136. 4:31almost always a creation of government
137. 4:34intervention
138. 4:35blocking competition for example keeping
139. 4:38your phone system the best in the world
140. 4:40government granted mobile a monopoly on
141. 4:42phone calls
142. 4:44and in 30 years their phones went from
143. 4:46this to
144. 4:47well just this always improving
145. 4:51that's the bell system for you a short
146. 4:53phone call cost
147. 4:5417 dollars ma bell got away with that
148. 4:57because government banned competition in
149. 5:00a free market economy
150. 5:02it's impossible to have a monopoly
151. 5:03because if somebody manages to get a lot
152. 5:06of market share
153. 5:07and they try to raise prices new
154. 5:09competitors are going to spring up
155. 5:11and they're going to draw away the
156. 5:12customers
157. 5:15that happened to blockbuster it charged
158. 5:17late fees
159. 5:18netflix promised no late fees
160. 5:23blockbusters soon went out of business
161. 5:25but people say today's tech companies
162. 5:28are uniquely powerful
163. 5:30no one can compete with them i use
164. 5:32duckduckgo as my search engine
165. 5:34i don't use google but guess what even
166. 5:36if i used google and facebook for
167. 5:3810 hours a day no one's holding a gun to
168. 5:41my head
169. 5:42they're obviously providing something of
170. 5:44value heck they're providing
171. 5:45free search engines free social media
172. 5:48just 14 years ago people called myspace
173. 5:50a monopoly
174. 5:52then facebook proved them wrong our
175. 5:54government once called u.s steel
176. 5:56pan am ibm internet explorer and
177. 5:59kodak monopolies that's something to
178. 6:01consider next time you hear
179. 6:03big tech are the robber barons
180. 6:06of the 21st century robber barons like
181. 6:09rockefeller vanderbilt but what we think
182. 6:12about them
183. 6:13is mostly a myth too in my next video
184. 6:17four other myths about capitalism
185. 6:21thanks for watching this video if you
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189. 6:28the next one
190. 6:38you