Capitalism vs. Socialism



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 men 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 Hardees 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 plan 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 the 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 now maybe you think it's an unfair example I'm or 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 u.s. does we can argue about the cost 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 your 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 commonsense is all you need that's why it's so frustrating to see young people praising socialism and criticizing capitalism it's bad enough that they're working against their own interests better job prospects better wages personal freedom but they're 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 would you ask for you just might get it i'm andy puzzler the author of the capital has come back for Prager University thank you for watching this video to help keep Prager you videos free please consider making a tax-deductible donation




Comments
  1. Essentially, like most things, they both have positives and drawbacks. What you support all depends on whether you are positively or negatively effected by the system.

  2. Capitalism does not seek to fill the needs of consumers. It seeks to find out what people will buy so that the capitalist can make as much of it as possible for as cheap as it can, so it can make huge profits. The only thing that matters in capitalism is shareholder value. So they will do anything legally possible to make money. If being absolutely amoral makes more money than being moral, they will do anything they can get away with. There is no moral code in business if the business is run by people who are there to maximize profit.

  3. You’ll notice that Venezuela failed when the price of oil fell. It was the country’s over-reliance on oil, that caused the hyperinflation that caused the country to collapse. With a smarter government this collapse likely wouldn’t have happened, or a least would’ve been less impactful.

  4. Yeah, they pay alot of taxes here in scandanavia, but it’s for a good cost, not everyone can affort healtcare and I’m not talking about the poor, middle class familys can always affort it, plus how can a person pay a hospitel to get healtcare. I personally think that free healtcare is good becouse it takes away all of those problems.

  5. Under capitalism, the capitalist class (he owners) control the means of production. Meaning they dictate it, regardless of weather the workers like it or not. The capitalist need to concern themselves with profits and profits only. For that, they must pay workers as little as possible and their work conditions to be as cheap as possible. This would leave conditions where it would be an endangerment to the workers life, they cant go out and "get another job" because the capitalist next door is doing the same thing. its just the most effective way to make money The capitalist, the owners, have no interest to the well being of the people. If it is profitable to dumb waste into a water source that people are using, they will do that. Paying workers as little as possible to increase profit revenue, they will do that. king leapo the second of Belgium and the Congo free State is a perfect example of private property and capitalism to its logical ends.

    Under socialism, work and resources is owned not by the capitalist, but by the workers and people themselves either through worker co-ops and collectives or the socialist state. The socialist state must be democratic to best represent the workers, which what we see under socialist countries like the ussr with its republican (council) democracy and Cuba's participation democracy. A youtuber name Hakim did a video about "was the ussr socialist?" Should check it out. Under socialism, everyone has a right to a job, a right to healthcare, education, shelter, food and water. It's a system concerning itself to the well being of the people rather than profits and the worker is entitled to his/her own labor.
    Cuban democracy:
    https://www.youtube.com/watch?v=2aMsi-A56ds&t=329s

  6. Not just young people, Americans in general do not understand how capitalism and socialism works. They took Economics out of the school curriculum and no one wants to actually do any homework on what the truth is….

  7. I hate this video.

    From the start it is taught by Andy Puzder, a former CEO of two big food chains. Instead of fully defining the two economic/ political systems he makes a one sentence statement about them to fuel the rest of the narrative for the video. Puzder tries to spin that Capitalism is not one off "greed" but of "need". A system that caters to people. He conveniently left out how they try to effectively cater to people for profit, for one's self. That's not necessary bad in its self, but he does try to misrepresent Capitalism.

    He also misrepresents Socialism. He says that the government has the ultimate power, and then spins another fallible tangent about how wrong that is. Just before this he says that people vote in Capitalism with a dollar. In government people vote who is in power…by voting! The "elites" he talks about are our representatives. In our government representatives are always debating socialist programs like Medicare, welfare, regulations, wages, military, ect.  

    I love Capitalism. The harder and smarter you work than someone else should result in more money. However this video is gross. It shows America and Scandinavian countries as solely Capitalistic and prosperous, Then demonizes Venezuela. The problem is not if a country should be Capitalist or Socialist but, in a mixed economy, how much should they be expressed. I was hoping that this video could be nuanced enough to answer that, and it failed.

  8. The problem with capitalism is that wealth is relative. The value of what you have in your pocket is determined by what others have in their pocket.

    Its true that initially it makes sense to give the consumer what they want to accumulate wealth through relationship building thereby benefiting society but in the longer end it is always easier and rational to use the wealth to keep everyone else away from climbing the same ladder and challenging your monopoly rather than continuing to innovate. This guy is only focused in the short term and we are well into the end game now!

    Since price of goods and services are determined by how much money is being put for them, thus greater wealth disparity has the effect of pricing people out of necessary items. A prominent example of this is the housing prices, you literally have to mortgage your entire life these days to finally get a roof that you can safely call your own.

    If socialism is extreme than capitalism is equally extreme. The picture is not as simply in favor of capitalism as this guy is painting. There has to be a constant effort to establish and maintain systems that balance the two forces to make sure there is reward for innovation but that reward is not so extreme that you own the entire world!

    Moreover, there are far more fundamentally questionable ideas that have been accept as normal. The first is the idea of a limited liability company which act as a vehicle to protect the personal wealth of the owners so they take all the benefit but there risk is only limited to what they have put in the company. Second is the idea that the decision making when it comes to currency creation is kept to a few individual or families while it actually impact each and everyone and vast majority has absolutely no say in it. Thirdly the long forbidden idea of usury has become completely acceptable by making it comparable to renting. Lastly the renting itself. Is it fair that you can spend money to use something without actually building some ownership in the asset itself?

  9. 1992 collapse of the Soviet Union, GDP per capita in Estonia was about $2,000.   They undertook 100% free markets.  Their president was a 29 year old.  You could buy a handgun at the corner store, and prostitutes advertised in the yellow pages.  Crime nearly disappeared, as the criminals were now without business.  Economic growth exploded. 

    Fast forward to 2017: The economy is now bogged down with regulations and not similar to the wild west days.  BUT:  GDP per capita is $36,000.  Imagine that…within one generation, free markets catpulted income by a factor of 800%.   Makes one wonder how much better life could actually be were it not for govt interferences from dawn til dusk, 24/7/365.

  10. My friends grandfather lived in present day latvia from 1953-89. He can attest to how good socialism worked in the USSR. Everything was equal. Especially the starvation and censorship on the population. MAGA2020

  11. Your example of Amazon makes it that easier for me to rip you apart! Amazon is not some kind of free market solution to the needs of the people. It's a free market solution to Jeff Bezos infinite desire to see his account balance increase. 150,000,000,000 dollars is not a man's need. It's a man's greed.

  12. This video is nonsense. In a democracy the people decide what policies to implement. The government doesn't have "ultimate power" the people do.

  13. So how did Germany before ww2 become a world superpower and get out of the depression if they were national socialists?

  14. The USA is a socialist country; there is welfare, affirmative action, grants, disability benefits, and so on.  Who do you think pays for the other 50% of citizens that DON'T pay federal income tax?

  15. I do not agree with socialism. But what we have now is not capitalism. https://247wallst.com/special-report/2019/04/16/counties-where-the-american-dream-is-dead-4.

  16. We aren't having this discussion. There are exactly ZERO socialist politicians with any influence in America. Bernie sanders is a democratic socialist. This is the governmental system used in Scandinavia.

  17. Watch "PragerU on Capitalism versus Socialism | Trash Can of Ideology" for an alternative opinion

  18. Someone would’ve said that if they hate socialism so much they at least understand it and study it. Guess they skipped the part of understanding it…

  19. 4:30 Wait wait wait… It is bad that young people criticize capitalism?
    Criticism has brought us out of the dark ages right into the golden age of humanity. Forbidding someone to criticize is the end of freedom and prosperity. It's fashism.

  20. israel in the 90s was really socialist and after Benjamin netanyahu he broke that and made the economic prosperity of Israel today

  21. Look at you! You're finally making a distinction! Now please stop quoting Karl Marx by calling it „capitalism" and start calling it „free markets". The USA has a free market system without boundaries. BUT. IT. IS. NOT. CAPITALISTIC! It's like calling the USA a Latin American country. It's simply the wrong term. It's American, yes. But it's not Latin American.

    This is a good video. It is a fantastic video for PragerU standards.

  22. Socialism may actually be a good solution but only for those countries where universal crushing poverty had been the norm prior to socialism. For this reason, socialism has improved the standard of living in Cuba by introducing social reforms like free education and free healthcare. The standard of living and public happiness improved because it was the first time in history the population had gotten anything from the state (entitlement programs). Socialism may also work in Africa which suffers from similar crushing and universal poverty. However, socialism will never work in a modern country where the population had tasted high standard of living before. Such population will never accept the austere living conditions of socialism, even if you give them certain entitlement programs free of charge.

  23. Capitalism doesn't create wealth, labor creates wealth, and capitalism accumulates that wealth into the hands of people who own the means by which that wealth is produced

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