A Contrast of Social Systems

here in the United States what makes it tick and what we want to do it let's start with you and what you want what does anybody want do you think you're different from other people millions have worshipped the strong man the leader millions let somebody else decide what they want they worked fought died for government by strong men I fear by force oh yeah a dictator no not everybody agrees over here we don't like dictators we don't worship the strong man we worship as we please our government represents us the people our government is our servant not I'm st we can work we can fight to that government of the people by the people and for the people shall not perish from the earth that's what Lincoln said not that everybody agreed even then Lincoln was shot remember any government has a lot of power but keep in mind that the power can come from the top down or from the bottom up and it makes a lot of difference to you what you can do and what you can't do where and how you live and work let's start from there where we live and work what we have in the United States one worker out of five lives close to the land on our six million farms and ranches look them over big ones little ones all cans for workers out of 5 work away from the land in almost four million other places big plants small plants peanut stands offices all together that makes about 10 million places where we can work and make a living how we work and how we live makes all the difference in what we have in the United States but how did we get what we have suppose just for a moment but we didn't have our six million farms and ranches let's get rid of all up ok no more farms or ranches now let's get rid of industry to then we won't have to worry about that fine no more industry no more places to work while we're at it let's go all the way let's wipe out all cities towns homes everything now what well now we're starting the hard way close to all mother nature you and everybody else on earth has some things in common you want to stay alive to stay alive you have to have food you have to have some shelter against the elements you want to be as comfortable as you can so let's start with this common problem and see what it takes why are we going to do better find somewhere to go gonna be a storm any minute give me the baby come on unless better nothing I guess Oh take it easy honey it's so cold could you build a fantage GI I don't seem to have any matches don't worry we'll work out something looks like this might blow you staying here I'll go out and see what I can find don't go find out they're they're done I know you're hungry how long do you think she can feed that baby unless she gets some food herself not long how long could you stay alive dumped into a real wilderness most people would started it and yet it's funny isn't it it's all their son air soil water minerals metals it's all right there but how to get at it let's say you're lucky to start with you find some water so you won't die a thirst no but I need food food shelter and come food yeah I'm all right on that other stuff you are now but where you're going to get another shirt when that one wears out well I I don't know i'm not going to worry about that now when the snow starts to fly you worry about it plenty I would have a look around tom has what any man has to work with his brains and his muscles so he goes to work with what he has put yourself in his place let's say you're lucky you find some roots you can eat you find some berries a couple of days go by and you're still alive but it's a full-time job let's say you're very much you find some fish just when they're spawning they're helpless now this probably wouldn't happen to you but let's make it easy let's say you get a couple of fish the way up there does matter look what I got I just flipped them out I'm so hungry I could almost eat them raw I don't know want to try I can't chief we just had a knife hey isn't that smoke Oh Tom sure it's smoke there must be somebody over there wait here I'll go and see where'd you come from hello neither do i you got a fire I wanted to fire but I didn't have any matches how'd she do it it took me long enough to get going I've been trying to do this ever since I found myself here I started like this hey then I took my shoelace and did it this way she did that's wonderful yeah and that knife what you get it I found the antler I made it by rubbing it against the rocks say yeah how about let me use it ah wait a minute what do you want it for you got some food a wife and baby you're just down the valley we've been living on roots and things but I got a couple fish you have how big oh but like that nice ones man i'm so hungry i can hardly stand it I've been working against time I got a weak stomach and I i figured i can't eat stuff raw look let me buy one of those fish what we're what do you think oh well I I guess I haven't got any money what will I do with money around here oh nothing I guess look let's put it this way you give me a fish I'll let you use my knife and cook on my fire how's that wait a minute maybe I'll never find another fish listen I got to get something to eat I'm so hungry I'm sick I've been working barley back with your wife don't get any idea offered you a fair swap me that night I'll give it to you right to vote ok stop it you'll kill each other Tom's fighting for his life so is the other man let's go back and see what this is all about if you were thrown into a wilderness without a match or a knife or any tool you'll be right smack up against nature you'll be just the same the same muscles the same brains and without tools you might stay alive for a while you might find some kind of shelter you'd have to have food and shelter and you want some comforts to improve your situation you'd have to take time out to make some tools you can't be looking for food and make a knife at the same time it takes work and time to get fire or any other two incidentally from now on when we talk about tools we mean anything that helps you get more food or shelter or comforts and helps you get them more easily getting food or shelter is a matter of life and death and once you get something and somebody else has something you come up against the idea of swapping of butter I can't we swap one face for the the use of my knife in my father what's wrong with that like to keep both fish leave that knife and fire okay it's a deal life depends on food and to fill your stomach to put a shirt on your back or some kind of a roof over your head there are only three things to work with natural resources your human energy and tools that's true anywhere anyplace anytime let's bring this out in another way everything in nature was here long ago all the coal the iron the forests the oil the water the land why didn't the Indians do more with it the Indians had to have food shelter comforts in they raised better food bill better homes why didn't the Indians do more with all this they had some tools they knew how to make fire they used fire to clear land when the growth was burnt off the Indian women planted corn like this with a clamshell and a hole made from the shoulder blade of a deer yes they had tools Stone Age tools but they never improved their tools and as a result they couldn't improve their production of food shelter and comforts compare this with the Pioneer farmers crude as the early wooden ploughs were they work better than bones or clam shells yes they had tunes but the important thing is they improved their tunes they shot them with iron and now we make them from steel powerful tractors pull them down the fields if this farmer had lived when the country was young it would have taken nine farmers like him to free one man from the land with a better use of brains and muscles better use of nature and above all with more and better tools the modern farmer can free 15 or 20 men from the land that's a pretty good example of what we have something happened in this country to produce a titanic upsurge in human energy and spirit to produce more and better tools to produce more and better food shelter and comforts what was it what helped us get what we have let's start at the beginning the founders of the country didn't have tractors or television sets or automobiles but they did have a mighty faith in God and a big revolutionary idea about people they thought government's ought to be the servant not the master of ordinary people like you and me have you ever read the Declaration of Independence men risk their lives for the principle that in this country at least we the people take our rights from God and set up a government to preserve and protect our individual rights think that over the signers of the Declaration of Independence declared their belief that we are endowed by our creator with rights to life liberty and the pursuit of happiness which nobody no person no group no political party not even our government can take away from us this farmer has certain unalienable rights responsibilities and obligations which are his birthright under the law this worker has the same rights responsibilities and obligations which are his birthright under the law these workers can challenge their government which is ordered to protect their rights and these aren't idle words on july 4th 1776 we declared our independence in 1788 we ratified our constitution and to this day every officer law and division of American government has existed solely for the purpose of protecting our unalienable rights to life liberty and the pursuit of happiness when you read the Constitution of the United States notice it starts off with we the people and it's the oldest instrument of government in continuous use our government is divided into two parts state and and each part is subdivided into legislative executive and judiciary each branch in the pen this was not done for efficiency it was done deliberately to keep anybody or anything from taking away our individual freedom now let's look at the map the federal government was to handle the national problems the United but individual states were to handle their own problems just as each county city town and village was to handle its local problems problems like fire protection police protection protection of the streets and highways protection and development of citizenship through public education things like this are the concern of state and local government we the people have given our federal state and local governments a limited power but we have ordered them remember to use that power to protect our individual freedoms our rights are only limited when it's for the public good like when you're driving along a public street traffic changes you stop you don't even think about it but you stopped because we gave government represented by the police officer the right to make a stop to let the other people go through then when you get the signal it's your turn to go ahead limitations of our rights sure but for the public good and that's the way our country has gone ahead just what does liberty or individual freedom mean to you freedom to do what there's New York just what freedoms to the people down there hand and what difference does it make how about San Francisco Chicago his life in Chicago any different from life in Moscow Shanghai Paris or any other city is this any different from a town of the same size in some other part of the world there's a great difference and it starts with a great gift of freedom here's a farm two out of three farms like this a run by their owners in other words here's what we mean by freedom farmers are free to save free to invest their savings to buy and own their own farm their own tools their own stock free to produce to make a profit or a loss it takes time takes work takes management take saving takes careful buying and selling it took this farmer 20 years to build up this herd but it was worth the effort nobody can fool this man about what it means to own your own farm or to build your own herd he knows where his tools came from and what a difference they make he started out milking by hand now he does it this way and doesn't have to work so hard and he produces more and better milk and cream he gets more out of it and so do all the rest of us don't sell freedom short freedom to work to grow things to make things freedom to buy and sell freedom to save and invest we have these great freedoms in this country you have today as you may know we live on about one sixteenth of the land area of the world for every square mile we have others have 15 for every worker we have others have about 15 as far as nature and manpower go the odds against us are about fifteen to one let's get this straight all around the world men want the same things food shelter and comforts and naturally selfishly want all they can get you do I do everybody has this in common all of us must use what we can find in nature our own manpower and the tremendously productive power of tools yet in our 10 million workplaces with odds of 15 to 1 against us we have half the productive power on earth that didn't just happen there's a good reason why we have the best workers the booze on earth why we're about eight to one better off than the rest of the whole world how do you think this came to be what makes us tick let's talk about how we got what we have in these United States and what it means you me Tom Tom what do you want to breakfast what you say what do you want for breakfast I don't care you want it hot or cold never mind i can t make up your mind oh well while she gets x breakfast let's take a closer look at that Pam the iron ore for that pan came from the Mesabi Range so let's start there see what happened maybe it'll give us an idea of just what it is we have nature put the iron ore there but it wasn't worth anything until men came along men with tools these are the best workmen and the best tools on earth as you look at what it takes to make one steel pan think about why these men are so much better why their tools are so much better you can't make a pan only with iron ore you need coal you need other raw materials limestone must be quarry it takes a lot of know how to make iron and steel coal must be reduced to cook before it can be used you need fluorspar manganese scrap iron scrap steel it takes all of this and more just to produce the basic steel this is what men can do if you give them a chance give them economic freedom economic freedom in this country means that you and everybody else is free to work to make things to produce that's one part of your free to buy and sell to make a profit or a loss that's the second point and you're free to save and to invest in more and better tools that's the third part and it all adds up to the great gift of economic freedom keep it in mind as you watch these men and their tools you we've come a long way from nature but those sheets still have to be shipped somewhere before you can manufacture the pan let's see what happens next you all right now the pan is about ready to be offered for sale a lot of Labor is already invested in that pan but you can't see the men who made it or all the tools they used you can't see the thousands and thousands of people whose savings are invested in those tools you can't see a thing like freedom either but it's there the great gift of freedom freedom to work to make things to produce freedom to buy and sell to bargain freely to exchange what we have for what we want freedom to save and to invest in the tools that multiply our productive power he didn't have to display that pan or try to sell it but he's free to try just as Mitch didn't have to come into this store she was free to make her own private individual choice free to be ruthless in her search for more and better goods and services at lower prices but she decided to come into this particular store to look for a pair that isn't the only pan she has a choice of iron steel copper bottom salut manam but she selected this particular one now here's what really happens at the time she buys this pan she has hired all the workers and all the tools cleared back to the mine what she is able and willing to pay for that man has to pay all the costs all the way back to nature including the cost of something else you can't see the cost of government and the cost of government remember is paid by all the direct and indirect taxes you pay well now we know something about where the pan came from how about the eggs well let's see nature supplied the land but men made it produced the feed for those chickens you can go in the egg business if you wanted that's what economic freedom means the way one time bought the eggs he employed all the tools all the workers all the way back to the farm Tom had to work with tools to earn enough to buy that pan he had to work with tools to earn enough to buy the eggs he used money is the transfer agent nah you can't eat money or fly eggs in it but it's important and it's easy to be fooled about money how about a time what can you do with your take-home pay give it an edge I didn't she'd bat my ears down and I would too well that's all right and let's look into what money is and what it does take time he works near the end of an assembly line and gets paid in dollars and cents for work with tools and with materials supplied to him in other words one way to earn money is through work using your brains and muscles your skills your know-how for so many dollars and cents money has no fixed value it has no value except at the moment you buy something with it for example you see in the price of eggs jump around sometimes half a dollar will buy a dozen eggs sometimes more than a dozen sometimes lettuce in other words your take-home pay is worth what you can buy with it when you buy it and what you pay for anything remember has to cover all the costs of producing it transporting and selling it plus taxes which must be paid to operate the federal state and local governments yeah but I didn't have to these eggs they get too high we don't need a that's your privilege so long as you live in a free country you didn't have to buy this house either that was my idea it means something to own your own home not that I own it yet nobody told you you had to buy it or that you couldn't buy it either we figure that every dollar we put into this house just like saving a dollar the house is real but the dollar value and don't forget this is what somebody will pay you for it when you want to sell it or rent it we don't want to rent it that's was nice to know you could if you had to that's the second way you can get big how do you mean there are two ways to earn money you can be paid for work any kind of work that produces goods or services or you can be paid for the use of something you saved and bought something you own private property to get the tools and the materials you work with the conveyor belts and all the rest of what it takes to build an assembly line millions of people like you saved and invested their savings in stocks and bonds and there was their savings that made these tools possible this was the money that bought the land built the buildings and provided all the facilities power running water and thousands of other things that people ordinarily don't think about all of these things are tools and tools always come from the investment of savings let's put it this way if you rented a room in your house or the whole house would you expect to be paid for not sure why not if you saved and invested some money in your company which expect to be paid oh sure only I don't have that kind of money you've got a life insurance policy haven't you yeah savings account in the bank yes a little one that's not like buying stock what do you think the insurance company or the bank for instance does with money use it invest that I guess that's right money is a medium of exchange a transfer agent they take your money and buy an interest in private property the tools you work with so that every dollar you say goes freely to work the fact that most people in this country have life insurance a bank account stops or bonds means that practically all of us have invested in the tools that produce the goods and services and comforts our lives depend on that's how we get our tools that's what happens with economic freedom the farmers work close to nature and most of them supply the manpower to both management and labor they know where their tools come from and what it takes to maintain them to replace them with more and better tools what we have in this country is so good and so successful that too many of us just take it for granted what we have started with the official purpose of our limited government and it grew because of our hard-won gift of freedom real individual freedom protected by law and the secret belt the best workman and the best tools on earth and the most democratic way of getting more and better tools not through forced savings and forced labor we're free to save and to invest in productive property in the tools that multiply our total production of goods and services 10 million workplaces where we're free to work to make things to produce free to buy or sell to make a profit or a loss free to try out new ideas new products new methods free to get more and still better tools which multiply our total production shorten our work hours and keep lifting our standard of living we have plenty of problems but with all the things we don't do with all our mistakes we do have political and economic freedom and we're far better off than the rest of the world that's what we have and it's worth talking about let's talk about just exactly what we have in these United States and what it me you now that we have seen what we have in the United States let's talk about how to lose it just what would have to change to be sure to lose what we have suppose this is the night before national election suppose you said in this room there's my saw and heard this let me sum it up this way you are going to vote tomorrow in the election which will do one of two things keep our limited government with its constitutional freedoms rights and responsibilities or change them for unlimited governments and a plant economy we've already amended the Constitution dozens of times let's throw it away for a master plan run by a master state would you care to reply to that I certainly would at this time there are some 10 million workplaces in the United States tour we're free to make 10 million plans we're free to try any new idea new product new service at a new anything but we're all human beings we'll be right but we have free choice we're free to try to make a profit to just get by or to fail some of us do fail every day but enough of a succeeds every generation we double our production of goods and services under a master plan only be one plan with just one plan there wouldn't be any room for a mistake if anything went wrong with a master plan result would be a national disaster and every man woman and child would suffer wait a minute wait a minute we know all we need to know about how to produce things what we don't seem to know anything about his distribution we haven't solved such things as full employment real security from each according to his ability and to each according to his need sure that sounds good but how are you going to do it we're already on our way we partly socialized incomes we're going ahead and socialized property to let the people own the means of production transportation and communication let the people have full employment and full security but what price freedom you talk about full security full employment while you can have that in a penitentiary I'm here tonight because I believe in the right of an individual to be able to choose the kind of job he wants where the company he wants to work for in the partner country he wants to live in yes sir freedom of choice right down to the brand of cigarettes he smokes or doesn't smoke government can't control everything without controlling me what I can say and what I can't say and I mean police control it tells me where I'll work where I'll live and all the rest of it just words the people know what they want vote against the old ruthless sick American economy with its private property in its so-called free competitive enterprise vote for the master state with the master plan our time is almost up but tomorrow you'll be able to vote to keep what we have or to change for a total economy where everything will be run according to a master plan for or against the master state under the master plan thank you and good night well what do you think I'm for it I'm tired of being kicked around I think it sounds wonderful he said it would mean full employment that's something just think what that means full security why shouldn't the government take care of us I'm afraid up I don't understand it very well well the way I get it everything will be planned the whole country will run according to the plan what's wrong with that they talk about free enterprise private enterprise I am sick of listening too long I'm gonna vote for well I am that for sure I guess I will too here's good news workers in some mass production industries are about to be quickly moved to new locations so that under the master plan the right man will be in the right job at the right time here we are nice home Bob yes but I wonder how they're going to take hey this your house yeah yeah two families gonna live here you're being transferred see it's all right do you mean I'm not looking for another job how should I know don't Yap at me brother I don't get it so you don't get it oh good morning ask him he's the party man hey what is this huh this is correct look huh I like it here I don't want another job well it it may seem a little rough at first but in the long run it will be better for everybody but when the truck is unloaded you can take your personal things and we'll move you and your family hi I live here I work here yes I know but that plants been closed temporarily it has you mean I I've gotta drive to another state right now Tom where's net net what's going on here we've got to move whoa haven't I got anything to say about this well what do you want to say how I've got some right mmm of course you have okay come on bugs we need your house for two families now and they'll not use your car to what you better start now to get your things together okay folks inside oh now now now don't be worried you'll only be out of employment for a day or two wait a minute you can't do this to me government can't control everything without controlling me what I can say what I can't say and I mean police control and tells me where I'll work around live and all the rest of it we've worked so hard now we've got the help oh god I didn't even get a chance tom was happening to her they say we'll get government certificates for all private property can't we go to court or go to somebody say how far does this go top 300 miles no I mean this plan all the plan all the way everything's gonna be better under the plan yeah I'll be like that you're gonna like it see good I ask a question sure why not our baby she's never been baptized does that mean look I'm not a full party member I'm just driving this truck I don't know what they gonna do about churches and stuff like that but you better button your lip just remember it's all part of the plan what are you yapping about you voted for it of course it would never happen this real freedoms are equal but little at a time while government controls are slipped on while the real power is collected into a few hands where government is not limited no man is free chains limited government to unlimited government and our rights would be only what the master planners say they are no longer the servant of the people government would be the master of the people that's the way to change what we have take all power and all freedoms away from the people and collect everything into the hands of one small group with absolute power but and think about this we would have the same manpower the same brains and muscles we had before but without our present incentives and opportunities and that would change something else tools always come from savings government has nothing it does not take away from the people with unlimited government whether they wanted to or not force would have to be used to take away our savings just to get the tools they must have to carry on production it's the difference between force and freedom nobody in his or her right mind would willingly sacrifice freedom for the iron discipline of a regimented state it can't allow individual freedom such as our free choices customers in a free economy we are all each other's customers every farmer and rancher is free to farm or not too far free to work for himself or for somebody else free to save and buy his own land his own seed to invest in more and better tools free to sell what he produces for a profit or a loss every worker in this country has the right to live and worship and work as he chooses it's a simple and fundamental as the right of workers to work in to bargain for their wages and working conditions the right of Management workers to manage sabres to invest and the right of all of us freely to buy and sell all this is part of what we have freedom for all is the key we have the fastest-growing most powerful union labor force on earth we have the best management on earth the power of our freedom reaches all of us will take up more of our great problems later when you look around and think about what we have don't forget for a moment that we do have more individual freedom we're better clothed we're more comfortable we're further from starvation in the width of the police state we're far better off in the rest of the world we have our great men and women we have some flannel mouth fools to we all want to live in a better world we all want to have more but there's no mystery about what we have or how to lose it let's look straight into this one let's talk about how to lose what we have and what that would mean to you the United States of America take a good look at the map you remember that for every square mile we have there are 15 more in the rest of the world for every worker we have there are 15 more in the rest of the world the odds against us are about 15 to 1 in land and in workforce only about one out of five workers in our country is on our six million farms and wrenches but they produce enough to feed all of us and four out of every five workers are at work in our 4 million other work centers remember all together we have about half the productive power of the whole world with an economy of this size naturally we have great problems do you know what our biggest problems are and what you want done about them let's look them over we declared our independence way back in 1776 we said officially that we take our rights from God and that we the people will keep the power of government in our hands the main purpose of our limited government is to secure our rights while we have amended our Constitution many times we have not changed that purpose do you think we should do you think we should change the democracy of our republic for the dictatorship of a regimented state do you think you'd be better off with unlimited government by fear and force in other words should government be the servant or the master of the people so far you have a free choice but do you care does it make a difference to you of course it does the difference is so big but you have to live it to really appreciate it the people down there aren't so different from other people around the world but they have something that's hard to get and easy to lose and they have it right in their own hands the great gift of freedom we all want a better world we want all we can get why not that's the number one problem of every living human being in the world and there are always only three things to work with the first thing is natural resources the lamb the soil and everything underneath it and on top of it the second thing is manpower our own brains and muscles the third thing is tools that's all there is nature manpower and tools how you live depends on how we manage those three things for instance the American Indian have the same chance we have at our natural resources same soil and underneath the same iron ore coal oil gas all the rest of it including all that we've used he had some tools but they weren't very good and and this is the important difference he didn't improve his tools a whole tribe of Indians couldn't produce as much food as this one farmer came today we have improved all three things and we just started we make a better use of our natural resources we have improved the skills and opportunities of our manpower and we have steadily improved and increased the productive power of our tools it's easy to see how it works on a farm let's ask a farmer well bars man paws concern that's me this is a family farm and I'm the manager and the hired hand and everything else I'm the guy that decided to go in for a conservation for instance pays off I lie I suppose that's working with nature far as tools go now everything from milk failed at the farm itself I had to save enough to buy them and then take care of and then save enough to replace them when they wear out beyond that I have to save enough to carry me through the bad years when it comes to taxes well I'm guy that pays them too and it all has to come and it does come out of what I can get for what I produce and I got to get back to work it all depends on how we use our natural resources are human energy and on how we get and improve our tools but we're so specialized in this country that it's hard to realize how much we depend on each other it's a problem because we all want all we can get and we all want to give as little as possible for it for instance time do you like a good thing steak what'd you say d like a good thick steak sure I like a good steak would you like steaks to be bigger and juicier and thicker and cheaper you can say that again how about it wait a minute I raise beef cattle you want as much as you can get form don't you don't you how about refrigerators or farm equipment would you like to have better equipment all the way around and cheaper Wow now you're speaking my language wait a minute you cut the price of these refrigerators too much and what happens to me well you cut the price of beef too much what happens to me what about me what about all of us as customers you're not even from anybody else when you go to buy something you want as much as you can get for as little as you can give and when you sell something you want to get as much for it as you can and you're free in this country to bargain back and forth and to buy and sell to make a profit or a loss but keeping this freedom so it's fair both ways that's a real problem the next time you buy something think about this may be the best way to put it is to remember that progress in human welfare always depends on the better use of natural resources human energy and tools but to keep and improve what we have we have to keep our individual freedom to work to make things to produce our freedom to save and invest in the tools that multiply the output of our men if you have some life insurance or have a bank account you've already helped yourself get more and better tools so your work will be easier and much more productive when we talk about tubes remember we mean more than hand tools more than power tools we mean the building's the land they stand on all the equipment all the facilities anything and everything that helps us get more real production and get it more easily we have the best workmen and the best tools we are the most productive nation and that very fact is a problem in itself it's as big as the world since a sixteenth of the world produces half the world's goods and services we're sure to have a lot of problems problems of getting raw materials like iron ore tin copper lead zinc manganese not to mention coffee tea rubbers silk can countless other things this adds up to a big international problem of trading what we have for what we need all the way around the world right here in the United States we have great problems not only a steady employment steady production a food shelter and comforts but we have great problems of sectional and social inequalities real problems of security and human welfare but don't forget that the answer to these problems depends on what happens to our 10 million workplaces where we're free to make an individual decision to try out a new idea a new product to make a profit or a loss 10 million places with freedom of choice so successful that we double our standard of living every generation we have the problem of keeping what we have and improving it or getting some small group an unlimited power and letting them tell us where and how we can live work speak or worship to protect us we have the secret ballot nobody can look over your shoulder when you vote when you step behind that curtain and write out your own personal choice you're alone with your conscience and your God if you have any doubt about how good all this is think of the rest of the world look back at what we have from over there take Ellis Island for example why do you think so many millions and millions of people are trying so desperately to get over here they'd trade places with us right now we're free to leave but some countries have bars and iron curtains just to keep their citizens where they are that tells us something about this country and other countries we have great problems the problem of war and the problem of peace the problem of keeping and improving what we have some people would like to change what we have how do you feel about the purpose of our government do you want limited government by law and government with our consent government which preserves our real freedoms or do you want some other kind of government even unlimited total government where no man is free men made what we have men can change or destroy it the way we meet our problems today may in a not too distant future decide between a dictatorship or a democracy it's in our hands we still have a free choice and while we still have a free choice let's talk about and what it means to you grams has been presented to help all of us understand bebeh out of vending our American Way of life for today's topic let's join now a group of young people at the National Education Program workshop Arkansas at the classroom lectern is dr. Clifton L gayness jr. noted young historian we have discussed socialism and communism in our last two classroom sessions now under and directly national education program says that if each generation of Americans will develop a clear understanding of our American system of capitalism how it works and the comparative advantages it produces for all citizens then neither socialism nor communism ever will become established in America so let's see if we can develop a better understanding of capitalism but first who will define for us the term capital that is in its economic sense all right Joan suppose you define it for us well money capitals money that's right but only partially right let me demonstrate here is a dime suppose I take this time and buy some ceramic clay now then my money which is capital has been converted into raw material which it logically follows must also be capital I mole this clay into a child's toy animal you would regard the energy expended by me as capital now when I finish I baked this clay toy in my oven at home this oven or any machine I might use in achieving the final product must also be regarded as capital then I add the final touch and sell this toy for 39 cents or at least I try to and if I should succeed I take the thirty-nine cents reinvest it in clay and start the cycle again employing again all the farms which capital may take as raw materials as energy as machine and so on capital in a few words is money at work producing things and since I am in charge of the cycle I'm a capitalist yes well what if you have to borrow that money like so many businesses do to start that cycle then that makes the lender a capitalist too since it is his money at work producing something and he becomes a part of the cycle capitalism is a system in which emic well for capital is used to produce goods for sale or in other words to produce new wealth but Professor genious are there different kinds of capitalism yes there are and the differences can be vitally important state capitalism is often the first stage of socialism we might say that state capitalism exists when the government achieves a combination of ownership and control in business and industry large enough to permit it to dominate the nation's economy and there are forms of capitalism which production and distribution are governed by cartels or monopolies fixing prices and permitting no competition this farm existed in many European countries in the time of Karl Marx and during this century before socialism or communism gain control yes John and impart in fact that we must emphasize is that American capitalism is quite unique there never has been a system quite like it in all history so let's examine the structure of American capitalism there are three great pillars the first and foremost of these is who can tell us all right Louise isn't it the principle of private ownership of property yes it is this principle of private ownership is undoubtedly the most fundamental element in the structure of American capitalism consider for instance home ownership which is a bright American goal for most of our people the desire to own one's own home one's own property provides a real incentive for almost all Americans to bring out their most productive efforts in the American system what's yours is yours what you do with it is your business you can squander it away or you can work harder and produce more and have more the principle of the private ownership of property is the number one target of the socialists and communists they believe in government ownership and control Karl Marx in the Communist Manifesto wrote the theory of the Communist may be summed up in a single sentence abolition of private property so private property is the foremost pillar supporting the American system and our personal freedom that brings us to the second great color who can tell us what it is all right Mary the profit motive yes indeed this is the stimulus that brings private ownership to life and expands its usefulness to society as a whole in one sense profitez property when an individual produces more than the basic living requirements for himself and his family the surpluses profit which he can use as he sees fit an automobile is not a basic requirement for survival nor is a television set yet most American families want them and have but because all normal human beings want more than the bare necessities of existence the capitalistic principle of private ownership gives them the privilege of earning and keeping enough wealth beyond their food and shelter requirements to afford to buy the other things they want but Professor gayness what about the individual who doesn't produce a product of his own what I mean is what about the employee the worker well you remember we said that energy is capital ability is capital when we as employees work for someone else we're not selling our time we're selling our services our ability when we get paid if we save a little of our income we are property and we can become employers if we wish and if we can develop management capabilities may of America's greatest industrialists were employees who saved and develop their capabilities if we do not develop into employers we still can become producers or capitalist by investing our surplus or savings in some enterprise which is producing something 18 million ordinary Americans own stock in businesses and industries if I borrowed money from you to make my clay toys you would become producers since your capital would help reduce my toys the business world is full of actual examples General Motors for instance is just a group of people who with their dimes and dollars or producing products for sale there are more than half a million stockholders with their savings invested in general motors and why do they invest their dimes and dollars they want to make a profit it is a normal wholesome motivation dr. gayness I once heard a clergyman say that the profit motive is not a good motive do you agree with him I'm sure the clergyman wasn't a socialist or communist but that happens to be what the Socialists and communists say about the profit motive and yet most converse to socialism and communism joined up because of the promise of personal benefit or profit with a clergyman be able to finish if he told prospective members that there is no personal reward or profit and giving one's life to God how many of you students study at dinner each evening instead of having the momentary pleasure of some favorite pastime I think you would want to say that study can be worth what motivates you then a desire for learning a desire perhaps for good grades but with the belief that in the end you will render a more valuable service and receive more for it if you didn't hope to profit you wouldn't study what I'm trying to say is that the profit motive is active in most human behavior that's important to remember and now to the third of the three great pillars and American capitalism all right Gary the open market yes the open competitive market where anyone can offer his wares for sale at whatever price he can get is a benefit not only to business and industry but to the individual as well let's go back to our toy animal illustration let's suppose that we develop an ability to make attractive little ceramic toys and the children all the nation want these toys we expand our enterprise probably on borrowed money and begin making profit another toy manufacturers seeing our ceramic toys cutting into his sales and profit does some research and finds that he can make an unbreakable toy very much like ours and sell it for less money than we're getting at the same time making a profit he can do this because we have a free competitive market in America challenging achievement the consumer our buyer gains when we have this constant competition in the marketplace the best products at the lowest cost emerge have you ever seen one of the early automobiles manufactured in America it was really something to behold when it was manufactured only a few wealthy people Conan automobile and even for them it was likely to break down on any 10-mile trip today there are more automobiles in America than there are families and almost every family owned one competition the free market brought this about Henry Ford was determined to outstrip other manufacturers he went after the mass market with his low price Model T produced with his remarkable mass production techniques he won the low-priced market but not for long others competed and competed so well that the product continued constantly to improve what competition in the free market is done in the production of automobiles it has done for thousands of other things with private ownership of property the profit motive and the competitive free market American capitalism produces more wealth than the next ten nations all combined you and I benefit tremendously because of our great productive system American capitalism our individual efforts bring us rewards higher than those realized by any people on the earth with one day's wages and American for example can buy this big supply of food an Englishman's daily wage by contrast will buy own it as much anda Russians just this much so let's remember these pillars of freedom and progress when we hear or see the Socialists of the Communists trying openly or secretly to undermine them these factors can be destroyed through subversion or through our own shortsightedness or apathy and defending them surely all of us can feel gratitude and pride toward American capitalism it's record of improving human welfare is unmatched in all history next week we should examine American capitalism's widespread distribution of wealth until then class dismissed the American adventure series is a production of the national education program searcy arkansas dr. george s Benson director dr. Clifton al-qaida's jr. was our instructor this is a continuing series based on a unique political and economic system which has made America great watch for the next presentation of the American adventure

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