Myths

 

 

On 1/19/2015, Arthur Brooks narrated a Prager U video entitled, Myths, Lies and Capitalism. I took notes on this short video and will comment on it.

 

Brooks: “Myth 1: Free enterprise hurts the poor. Since 1970 the amount of people living on $1 a day has dropped 80% and that is due to investment, not aid. Free enterprise works. Free enterprise gives people the freedom to do what they want. Entrepreneurs have a fierce desire to control their own destiny and create values for themselves and others. Money is not the only value for some want to start a family, or run a nonprofit or create art.

 

Myth 2: Free enterprise is all about greed. Actually, most entrepreneurs make 80% less than government managers. Entrepreneurs do want to make a profit, but they want earned success.”

 

My response: This is one of the most attractive features of capitalism: by their own planning, self-discipline and self-development, entrepreneurs can earn that success that Brooks refers to. Nothing builds self-esteem in a young person like amounting to something due to hard work and perseverance.

 

Brooks: “Myth 3: Free enterprise feeds envy. When Americans are polled to ask if good luck or hard work makes people successful, Americans at a ratio of 2 to 1 over the French attribute success to hard work. We admire rich people here more than in other nations. We reward initiative and our free-market systems offers opportunities that foster aspiration and ambition.”

 

By contrast, Europe offers less economic freedom, so envy, resentment and unrest are more common over there. They clamor for more government benefits and will have to give up to the government more of what they earn.

 

My response: Notice that in our capitalist society, we are more individualistic, and pro-capitalist and pro-liberty. Capitalism is the economic system for a free people. We are individualists and could be individuators that solve our own problems, and worry not about what someone else is doing, let alone expressing envy and resentment and take up arms to grab their money for ourselves. We create our own wealth, and here initiative is rewarded and there are boundless opportunities, so we can dream a dream and bring the dream to life for us and our family. Brooks seems truthful to me.

 

Brooks: “Free enterprise caused the Great Depression. It is not true, for the Great Recession was caused by statism and crony capitalism that melted down the economy.

 

Myth 5: Free enterprise is unfair for the rich have more than the poor. We need some income redistribution to fund the government and a safety net, but not to redistribute wealth. Fairness is rewarding merit, not force equal outcomes.

 

My response: it is equality of opportunity and a good set of values provided for each 18-year-old that is fair, not income equality guaranteed, and fairness is rewarding merit, letting the young go to become what they will, with unequal outcomes.