Yesterday, I showed the video that is the focus of the post below to one of my students. It reminded me of why capitalism is so important. It has nothing to do with money, or Wall Street, or “millionaires and billionaires.” It as everything to do with cooperation among disparate humans.
In defense of Capitalism. The lowly pencil.
Among the many individuals who altered my thinking from the progressive prattle with which I was inundated during my college years to an understanding of the logic of Capitalism is Milton Friedman. No economist has spoken more eloquently about the free market than Friedman. He had the remarkable ability to enlighten the average American about the true value of the system that made our country great.
In the following short video, he explains how Capitalism is the only philosophy that can bring disparate groups together peacefully and in full cooperation through the wonder of a “price coordinated system.” It cannot be done by singing “Kumbaya.” It is not accomplished by “sharing the wealth.” It cannot be done by “dividing the pie” according to some progressive/altruist formula because no such formula exists (and, indeed, the “pie” doesn’t even exist). The proof of this lies in a simple observation that any American can make. The simple observation is that when President Obama states with his usual gusto that the rich “must pay their fair share,” he never tells you what that means. He cannot state what a “fair share” is. Why is that? The answer is that once he tells us what that “fair share” is he can no longer go back to the well. Further, it enables every American to analyze whether he or she believes that Obama’s concept of “fairness” comports with their concept of “fairness.” You will never learn from a progressive/altruist what a “fair share” is. But you can learn how the lowly pencil proves the unassailable value of free market Capitalism.
Enjoy the workings of a brilliant mind.