Myths, Lies and Capitalism | 5 Minute Video
Does free enterprise hurt the poor? Is it unfair and driven by greed? Did it cause the Great Recession? In five minutes, Arthur Brooks answers these questions and more about capitalism.
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Script:
Here are five myths about free enterprise.
Myth Number One. Free enterprise hurts the poor.
Since 1970, the percentage of the world’s population living on the equivalent of less than a dollar a day has fallen by more than 80 percent.
This was not the result of foreign aid or U.N. development projects. It was the spread of free enterprise that achieved this miracle. In China alone, free trade and foreign investment — investment, not aid — lifted 400 million Chinese out of abject poverty in just the 20 years between 1981 and 2001.
There has never been a force for helping the poor that has come close to free enterprise.
Myth Number Two. Free enterprise is driven by greed.
If entrepreneurs were all about money, they’d be far better off getting a secure job in civil service. According to a recent survey by Careerbuilder.com, small-business owners made 19 percent less money per year than government managers.
Entrepreneurs are driven by a fierce desire to control their own destiny. They strive for something I call “earned success.”
For some people, earned success means business success; for others, it means raising good kids, building a nonprofit, or making beautiful art — whatever allows people to create value in their lives and in the lives of others.
Only free enterprise gives them the personal freedom to do that.
Myth Number Three. Free enterprise breeds envy.
Since 1973, the General Social Survey has asked Americans whether they believe good luck or hard work is more important in getting ahead. For 40 years, between 60 and 70 percent of Americans have chosen “hard work.” In a recent poll, the Pew Research Center found that 88 percent of Americans said they admired people who get rich by working hard.
This view is unique to the United States. According the World Values Survey, Americans are more likely than those of other nations to attribute success to hard work. Americans are twice as likely to do so than the French.
In a society that rewards initiative and offers opportunity, free enterprise fosters aspiration and ambition. It is in societies that have much less economic freedom and far fewer entrepreneurs and therefore economic stagnation that you find envy, resentment, and often unrest. This is the case in Europe, where people demand more and more government benefits instead of demanding to keep more of what they earn.
Myth Number Four. Free enterprise caused the Great Recession.
It wasn’t free enterprise that was at fault; it was the lack of free enterprise. Statism and its co-dependent spouse — corporate cronyism — melted down our economy.
As my American Enterprise Institute colleague Peter Wallison has documented, two decades of misguided government policy created the conditions that led to the housing bubble. When housing prices collapsed, so did the whole financial system. And who showed up first in the bailout line? Large corporations, including car companies, big banks, and the government-backed mortgage giants Fannie Mae and Freddie Mac.
This isn’t the free market at work — not even close. It’s a toxic mix of big government and its corporate clients. The solution is more free enterprise: where entrepreneurs put their money on the line and earn a profit or suffer a loss.
For the complete script, visit https://www.prageru.com/videos/myths-lies-and-capitalism
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No such thing as 100% Free Market.
Our Capitalism in Canada, USA, UK, etc. …. is all Crony Capitalism
So long as there is government there will be no 100% free market.
Hugo Boss also worked for the Nazi's where business and government work together – Same $hit different pile but they call that Fascism.
There will never be a 100% free market society as it is impossible just as 100% Socialist/Communist society will never happen.
PragerU consistently hits the nail on the head. They need to do these topics again in new videos because it seems millions more than before need to hear them.
I tell you the biggest misunderstanding of those Socialist Left Idiots towards Wealth, they think Free Market is Zero-Sum Game and Total Wealth is stagnant. That's why you will hear them always saying "Wealth Redistribution!" or "Tax The Rich!" or "Rich Should Pay Their Fair Share!" or "We Need Social Welfare!" It's completely wrong. You create new WEALTH only if you are allowed to innovate and invent something and you destroy WEALTH only if you have Socialism and Communism rule over your individual freedom
If people know new WEALTH can be created and added to the economy, I can guarantee you he/she is NOT SOCIALIST/COMMUNIST
Precisely, and the root of the problem is the irrational interpretation of the Constitution that emerged from the New Deal SCOTUS case U.S. v Butler in 1936. This has allowed the fed gov to grow far beyond it's proper boundaries in size and scope ever since.
A world of lies inbalance and racism and inequality where greedy people sanction poor people for not obeying and use their power corruptly to disadvantage and destroy the poor and disobedient. Bad people hide the truth and teach their children how to be dishonest like they are.
Huh what do you mean unique view? Another lie.
People admire people who work hard regardless of their economy.
If US truly admire and respect people who works hard. Where is their assistance like for health, education, and housing?
The truth is US admire people who creates wealth not necessarily who works hard.
So do US dislike and in some case hates China. Is it because they are Capitalists or Communist?
First of all stop calling Capitalism as
Free Market
Or
Free enterprise
Capitalism is not really one of these.
I disliked because I clicked wrong button
😮 is this some bs propaganda
how do these fierce anti-labour liars sleep at night?
This is a set of proofs that liberals are ignorant
If owning a business is all about greed, then why is going to university also not about greed?
It's just my opinion but I belivee most young people who rally against capitalism are actually rallying against crony corporatism. Transdyne pays it CEO 20 million per year it is a defense contractor that makes a part for an airplane that cost $135 to make yet it sells to the government for over $1,500. Can you build a school or hospital or a bridge for $20 million? You should say that success should be based on a meritocracy. Does that mean you are in favor of a 100% tax on inheritance? Should extreme wealth be taxed or just passed down to generation after generation? Are health insurance companies designed to make sure their clients are healthy or to provide a profit for their investors? Elon Musk and others say electric cars are the way of the future yet they expect the government to invest in the infrastructure to provide electricity for those cars. Why did the government have to invest billions of dollars to bring microchip production into the United States while Jeff Bezos was sending people on joyrides to space and Elon Musk was buying Twitter. Should we do away with police and fire departments and instead have private companies provide those services to subscribers? Here in Bogota Colombia health insurance cost approximately $150 a month for two, doctor copay and pharmacy copay is about 90 cents. Free enterprise exist from vendors selling fruit and sunglasses on the street to international chain stores. As Jesus said render unto Caesar what is Caesar's and God what is God's, some services provided by government but most through private enterprise. Crony corporatism and monopolies destroy free enterprise.
First myth: Wealth is increased not because of free enterprise, it's increased because the quality of life increased with new inventions, thinking of life etc.
I can agree that it is unfair that someone is born rich and someone is born poor
But what's fair is both are left to their own!
Being born in a rich family has responsibilities too! And u can't hold that much wealth if u r incapable.
And poor we all know they obviously have responsibilities too.
Poor people are one who suffer the most in government intervention actually. They r promised but government never fulfil them or will do to some sections Only. Also those people are made to realise that they r incapable when it is untrue and their life is in favour of the authority. What's better is when a person works hard on his own and achieves success and isn't controlled by anyone.
Do you learn from the rich to become rich or to become a middle-class citizen
Small amount of good luck really small of good luck but hard work always is the best and greatest option for any citizen
That's a clever idea you came up with, the point sharing, and it's a shame your example is completely absurd.
The rich are rich because they get someone else's money.
Socialism is when you get 100% of the results of your labor, capitalism is when you get 1% of the results of the labor of 100 people. In both cases you get 100%, but in the second case you did nothing for it.
The more correct way would be: 90% of the students do all the work, and then the 10% who did nothing will get high marks, and the 90% who did the work will get a minimum passing grade. And then the bloody communist student asks the top 10% to share with the bottom 90%, but in reality the top 10% don't share what they have, they give back what they stole.
The system inherently takes away some of the results of labor in favor of the rich; with taxes, the poor do not take away what is not theirs, but give back what is theirs.
This is mostly semantics. He believes in workers owning their own work. He just believes in freedom and that small business are better for people then corporations. which is how most socialists and anarchists define their worldview. He’s an anarcho-communist.
Who the hell made this BS
The Goal of Prager U
“Left bad, Right Good”
“White Christian men are great”
“Democrats don’t change and Republicans are pure”
“Capitalism is always great and it has no flaws”
“Science is trash”
“Rich people rule”
“Liberals are Nazis”
All of these are absolute lies