Valuetainment - Episode 208： Does Capitalism Work？

00:00:00.380 30 seconds. One time for the underdog. One time for the underdog. Ignition sequence start.

00:00:06.980 Let me see you put them up. Reach the sky, touch the stars up above.

00:00:11.120 Cause it's one time for the underdog. One time for the underdog.

00:00:17.320 I'm Patrick Baderby, host of IA Team, and today I'm going to talk to you about this concept called capitalism.

00:00:21.940 Does it even work? Is it a good system? Is it a broken system? What is it?

00:00:26.820 We're going to spend talking about capitalism today.

00:00:28.360 There's a big heavyweight matchup between these two forms of economies.

00:00:33.000 You got the socialism-communism side, and you got the capitalism side, right?

00:00:37.980 Now the flag carrier for communism and socialism was a guy named Karl Marx.

00:00:42.660 By the way, I'm not going to do a whole episode about Karl Marx in this one.

00:00:45.820 I may do one in the future.

00:00:47.060 But go study Karl Marx. Go study about the financial difficulties he had, about his kids, about how he was as a parent, about his philosophies, who he was.

00:00:55.280 Go study who he was as an individual.

00:00:57.660 But he wrote a book called Communist Manifesto that became a Bible to a lot of people.

00:01:02.060 And then Leon Trotsky, Fidel Castro, Lenin Stalin, the book on this side.

00:01:05.620 Another one could be The Revolution Betrayed.

00:01:07.700 And then I recommend you also reading The Naked Communist by Cleon Skousen.

00:01:10.900 He was a 15-year CIA agent that wrote the intricacies of how the communists are thinking about imposing their beliefs on other nations.

00:01:19.740 Now on the other side, on the capitalist, the flag carrier is Ayn Rand.

00:01:23.080 I mean, picture this, Ayn Rand and Karl Marx today.

00:01:26.240 If they debated today, there is not a stadium big enough for people who would want to go watch these two guys debate Karl Marx against Ayn Rand.

00:01:35.060 Ayn Rand wrote many books.

00:01:36.380 One of the books she wrote that got a lot of controversy was Atlas Shrugged.

00:01:39.360 She also wrote Fountainhead.

00:01:41.140 And she wrote a book that very few people have read, but it's excellent, called Capitalism, The Unknown Ideal.

00:01:46.360 Then you have Adam Smith, who wrote the book Wealth of Nations.

00:01:49.920 Then Milton Friedman, who, you know, my recommendation to you after you're done watching this video, go type in Milton Friedman, Phil Donahue.

00:01:56.520 Make a note on the side.

00:01:57.600 You will need to take a lot of notes with this.

00:01:59.100 Phil Donahue and Milton Friedman and just watch that debate.

00:02:03.060 By the way, Michael Moore, you know Michael Moore who wrote the video he made about capitalism and they're all greedy and all this other stuff.

00:02:09.740 The same Michael Moore that doesn't believe in capitalism, that's not worth $50 million.

00:02:13.080 A 18-year-old Michael Moore debated Milton Friedman many years ago that you can watch on YouTube.

00:02:19.460 And then Benjamin Franklin.

00:02:20.520 So these are the left and the right for you to be thinking about.

00:02:23.020 Now, I want to explain, I'm going to cover 20 plus different questions today.

00:02:28.380 And the first one that I want to explain to you that will make a whole lot of sense, hopefully, on what this means.

00:02:34.720 What is this whole concept of capitalism, socialism, communism?

00:02:37.980 I don't understand it.

00:02:39.080 Every time I ask, I get five different answers.

00:02:40.880 First of all, I want you to be thinking about it in the following way.

00:02:44.300 Instead of looking at these things as different isms, look at it simply as numbers and control.

00:02:50.920 Meaning, on this side, it's a lot of force.

00:02:54.780 On this side, it's a lot of choice.

00:02:56.900 Come with me to the next side to show you exactly what I'm talking about.

00:02:59.620 So to simplify this whole concept of different forms of economy, we created a pendulum, which I call the forms of economy pendulum,

00:03:05.880 that simplifies the whole thing for you.

00:03:07.800 And by the way, for some of you that are visual, we're going to put this whole thing for PDF for you to be able to print,

00:03:12.620 share with others, and kind of look at and read through it again.

00:03:14.800 So let me explain to you what this means.

00:03:16.960 The first question anybody has to answer when it comes down to capitalism, socialism, communism,

00:03:22.740 Leninism, whatever you want to call it, is this.

00:03:24.940 Out of the $100 that you make this month, or this week, or today, or in the last two hours,

00:03:32.720 how much of this $100 are you willing to give to the government in exchange for certain services?

00:03:39.220 What percentage?

00:03:40.400 30%, 40%, 50%?

00:03:42.620 What percentage is it?

00:03:44.180 Based on what percentage you're willing to pay, that's the form of economy you believe in.

00:03:48.480 Let me simplify it for you.

00:03:49.520 If you say 100%, which is not many people, if you give 100% back to the government,

00:03:56.960 that means you believe in communism, which means the government gives everything for you,

00:04:00.660 they make all of your decisions in your life, and you go to work, you wake up in the morning,

00:04:05.120 you go to work, no matter how hard you work today, no matter how many books you read today,

00:04:08.260 no matter how much you personally develop yourself, you're not going to get paid,

00:04:12.340 because the government gives you your food, milk, drink, juice, place to stay, transportation, all of that stuff.

00:04:18.080 That's it.

00:04:18.780 On the complete opposite end, if it's 0% tax, you say, I don't want to pay any taxes.

00:04:23.660 Well, listen, if you don't want to pay any taxes, you have an anarchy.

00:04:26.080 You know what happens when there's an anarchy?

00:04:27.360 Here's what happens.

00:04:27.980 No rules, no regulations, no laws, you're not protected.

00:04:30.780 You can be living in a house with your wife and kids, somebody else can come with a gun,

00:04:34.360 they're stronger than you, they can kill you, take your wife, take your kids, 0.99

00:04:37.300 and they're not going to prison, there are no laws, he's not getting arrested,

00:04:39.700 cops are not coming, nothing's going to happen, your house is on fire,

00:04:43.640 no one's going to come and take care of that place,

00:04:45.600 because there's not a service to do it.

00:04:47.200 It's 0% anarchy.

00:04:48.600 The last time we had an anarchy, I think it was in Somalia from 1991 to 2006,

00:04:53.940 and prior to that, I want to say it was Albania, when we had an anarchy, right, that took place.

00:04:58.920 But years ago, there was anarchy, many, many years ago.

00:05:01.580 Today, this is the pendulum of the extreme.

00:05:05.120 Far left, far right.

00:05:06.680 Now, capitalism is when you say, you know what, I'm willing to give 10% to 35%.

00:05:13.380 Some people say, I want to pay 10% flat tax, which means you make $100,000 a year, $10,000.

00:05:18.540 You make $1 million a year, you're paying $100,000 in taxes.

00:05:21.440 You make $50,000 a year, you're paying $5,000 in taxes.

00:05:25.000 But between roughly 10% to 35% is considered taxes.

00:05:29.160 That money is considered capitalism.

00:05:30.860 That money goes to the government.

00:05:31.980 The government gives you the basic service of what you're looking for.

00:05:35.040 We're talking security, which means a military, some police, the fire department.

00:05:40.300 You have roads, you have education.

00:05:42.280 You have some of those things that's being taken care of like that for you.

00:05:46.040 Now, in the middle here is when there is a major mixture of capitalism and even more socialism issues.

00:05:53.600 This is when you kind of mix the two up.

00:05:55.300 So this is when you're at 35% to 50% in taxes, where it goes a little bit deeper.

00:06:00.180 Somebody says, well, I think we need to have free healthcare, free this, free that.

00:06:02.840 And then when you pass the tipping point of 50%, this is when you're at socialism, 50% plus.

00:06:10.000 This is the conversation.

00:06:10.980 Well, I think we need to have free food.

00:06:12.280 I think we need to have free college.

00:06:13.480 I think we need to have free pension.

00:06:14.600 I think we need to have free, like a Bernie Sanders thing.

00:06:16.760 By the way, it works very well with the young audience because the 21-year-old, the 20-year-old that's in college right now, 0.99

00:06:22.220 it's very easy to buy into the concept of free, free, free because rich people are greedy and they suck and they're horrible. 0.99

00:06:27.980 Now, my name is Bernie Sanders. 0.99

00:06:29.220 I own all these nice properties.

00:06:30.360 I drive an R8, but all these other rich people are totally greedy, but I'm not.

00:06:34.020 I'm the good guy. 0.86

00:06:34.640 But these guys are terrible people.

00:06:36.040 But it's an easy concept to sell.

00:06:37.740 Very easy.

00:06:38.420 Believe me, I lived in a country where 9 million people revolted.

00:06:43.140 9 million.

00:06:44.000 It's bigger than the French Revolution. 0.80

00:06:45.580 You can go read about it.

00:06:46.600 In Iran, in 1979, February, started from 77, December 31st, after Jimmy Carter put up the glass with the Shah of Iran.

00:06:55.940 And he left, the moment he left, the revolution started, and it dragged out.

00:07:00.080 Sinema wrecks fire in Iran, at Abadan, and all this other stuff.

00:07:03.740 And I'm born in October 18, 1978, at the peak of it, when I was born.

00:07:08.440 There's a guy named Khomeini who got up and said, we have so much money, we can give you free food, we can give you free phone, we can give you free this.

00:07:14.540 And everybody said, what a savior, what a noble concept.

00:07:18.040 He got elected, right?

00:07:19.120 So, this is as simple as it can be explained.

00:07:22.660 Now, someone would say, well, Pat, I think it's a little bit more technical than that.

00:07:25.840 Let me explain to you.

00:07:27.380 The same way this goes, private property.

00:07:30.940 On this side, you don't have any private property.

00:07:33.260 Because communism, they own your property.

00:07:36.080 Capitalism, you have private property.

00:07:37.380 You can own property, you can own your business, you can own all that stuff.

00:07:40.160 Here, socialism gets involved, because then it becomes nationalized.

00:07:43.620 They want healthcare to all go through the government.

00:07:46.060 They want banks to go through the government.

00:07:48.260 Like Hitler believed in socialism, he was a fascist, but he believed in socialism. 0.65

00:07:52.560 All of that's going through the government.

00:07:54.180 We control it, we control it, we control it.

00:07:56.300 You do your loans through us, you do your this through us, you do your healthcare through us.

00:07:59.780 Because it's all controlled.

00:08:00.960 Regulation.

00:08:01.880 This side, a ton of regulation, you can't even breathe.

00:08:04.880 Here, capitalism, you need regulation.

00:08:07.680 Why do you need regulation?

00:08:08.620 If you don't have regulation, there could be a monopoly.

00:08:10.600 Kind of like there used to be a monopoly with AT&T or Microsoft.

00:08:13.840 You cannot have a monopoly.

00:08:14.980 Because then the small business owners being hurt, who runs a mom and pop shop and all this

00:08:19.180 other stuff.

00:08:19.580 So there needs to be some regulation.

00:08:21.640 Too much slows down business.

00:08:23.660 Too little, it's a dog-eat-dog fight and no one can survive in an anarchy type of an environment.

00:08:28.980 Right here, good amount of regulation, it's safe.

00:08:32.460 Taxes.

00:08:32.880 How much are you willing to pay?

00:08:34.360 Speech.

00:08:35.700 On this side, you have no freedom of speech.

00:08:37.960 A lot of people live in China right now.

00:08:39.200 Their forms of economy could be capitalism, which there's a lot of money to be made.

00:08:42.300 But if it comes down to you voicing your opinion against the government, you do not have a

00:08:46.360 freedom of speech because they're still running it in the communists.

00:08:49.420 I still have control over you on what you say.

00:08:51.200 You can't get up and create a YouTube channel and bash the rulers and all this other stuff.

00:08:55.120 You cannot do that because freedom of speech.

00:08:57.480 Here, free.

00:08:58.680 Here, controlled.

00:09:00.400 Decision-making process.

00:09:01.720 Here, somebody makes all your decisions for you.

00:09:04.240 Here, you make the decisions for yourself, backed up by laws and regulations.

00:09:09.020 Owning business.

00:09:09.740 You own your business here.

00:09:10.500 You don't own business here.

00:09:11.280 There is no competition here, right?

00:09:14.340 There's a lot of competition here, okay?

00:09:16.860 Lots of competition here.

00:09:17.940 What's the good thing about competition?

00:09:19.720 If there's no competition, you literally, listen, you would not watch a single movie if there was no competition.

00:09:27.840 You would not watch a single sporting event if there was no competition.

00:09:32.940 We love competition, except we hate to lose.

00:09:36.600 You and I, we love watching other people win or lose.

00:09:40.340 We just hate it when we're the one that's losing.

00:09:42.080 We love watching SportsCenter saying, did you see how bad it went?

00:09:44.720 That was so embarrassing. 1.00

00:09:45.580 What a stupid, I cannot believe he got knocked. 1.00

00:09:48.260 And then Twitter. 1.00

00:09:49.780 But except when we lose, we don't like it, right?

00:09:53.340 We need competition.

00:09:54.540 We love competition.

00:09:55.740 We admire competitors for having the courage to compete and lose.

00:09:59.720 But so many people don't like it.

00:10:01.180 And last but not least, inheritance.

00:10:03.040 On here, no inheritance.

00:10:04.760 Socialists, you know, on this side, you know, they don't like to, you know, have a rich person.

00:10:11.540 When he dies, his money goes to his kids.

00:10:13.220 They say, that's not fair.

00:10:14.480 That money should go to the government. 0.91

00:10:15.960 It needs to go to the government because this kid's a spoiled brat.

00:10:19.760 I cannot believe he's willing to take this money from his parents.

00:10:22.360 And, you know, when he dies, why should that $22 million go?

00:10:25.080 We should tax all of it, right?

00:10:26.700 This is what they say.

00:10:27.860 Now, let me give you on the contrary.

00:10:29.240 The same people, the same people, liberals, whatever you want to call them,

00:10:33.640 that want to tax 100% of all the wealthy's inheritance.

00:10:40.020 Let me explain in a different way that hopefully this will make sense to you.

00:10:43.000 Think about this generation today.

00:10:45.640 Is using the money of the prior generation and the prior generation that they made.

00:10:51.200 Let me explain.

00:10:52.440 America gets started 1776.

00:10:54.860 Then all of a sudden you have the Rockefellers, Carnegie's, JPMorgan Chase.

00:10:59.340 All these guys come up and they start creating commerce and businesses.

00:11:02.540 And then 80s and then 90s.

00:11:04.300 And the market's getting bigger.

00:11:06.160 And government's bigger.

00:11:07.440 Our GDP is bigger.

00:11:09.280 We got all this money coming in.

00:11:11.120 And then people say, well, now that we're rich, we should use the government's money

00:11:15.180 to go out and come out with free health care and free color because we can afford it.

00:11:19.140 The same thing that they don't like with inheritance is the same thing they like to do

00:11:24.460 to inherit the prior generation's tax dollars to put to use.

00:11:29.380 Lots of contradictions there to understand this part.

00:11:31.800 Now, prior to me going and answering the next question,

00:11:34.400 I want to kind of show you the following because a lot of times you'll hear people say,

00:11:38.080 well, you know, there's so many people that capitalism's hurt.

00:11:43.240 And if there was a right noble leader in communism or socialism,

00:11:48.060 this country would be so amazing if there was somebody that's ran noble.

00:11:51.800 Because communism, if you think about it, there's a part of it you say, well, it's kind of noble.

00:11:55.500 You know, it's kind of cool because what's the purpose of me having everything?

00:11:58.780 I should give everything away because it's not mine anyways.

00:12:00.880 If there was this beautiful noble leader that came from the skies

00:12:04.180 and he was so beautiful and amazing and loving and caring

00:12:07.220 and he wasn't driven by power or selfish desires,

00:12:09.780 we would have the most amazing country in the world.

00:12:11.880 Well, let me tell you what happened when we have these noble leaders

00:12:14.520 that all of a sudden realize they have so much power.

00:12:17.180 Look at the decisions they end up making.

00:12:18.780 Now, before we go hire this major recruiting company,

00:12:20.720 find this incredible noble leader for us that's going to run this country

00:12:23.640 based on a socialistic and communistic philosophy,

00:12:26.360 let me give you some historical events and leaders on how many people were killed

00:12:32.420 because of this leader or this event.

00:12:34.640 And by the way, remember this, one life is way too many lives lost.

00:12:37.920 Think about how many people in your life have died and imagine that feeling, that loss.

00:12:43.540 And take it at the numbers that we have here.

00:12:45.200 Let me show you the first one here.

00:12:46.560 The first one is the Hiroshima atomic bombing. 0.58

00:12:49.180 70,000 lives were lost.

00:12:52.620 This is 70,000 too many.

00:12:55.060 Here's another one.

00:12:55.820 The Armenian genocide that was done by the Turkish regime back in 1915.

00:13:00.980 1.5 million lives.

00:13:03.720 Let me say again, 1.5 million lives were lost.

00:13:07.380 1.5 million.

00:13:08.400 You can watch the movie Promise by Christian Bill and Oscar Isaac.

00:13:12.600 With Christian Bill and Oscar Isaac, you'll see how emotional and tragic these events are.

00:13:16.740 The same time when Turkish regime did that to the Armenians,

00:13:19.640 they also did it to the Greeks.

00:13:21.120 750,000 lives lost.

00:13:22.620 And the Assyrians lost 300,000 people.

00:13:26.160 That's over 2.5 million lives lost.

00:13:29.120 And that's still not the highest.

00:13:30.580 When you think about slavery, if you've seen the movie Rosewood with John Voight,

00:13:34.720 or if you've seen the movie 12 Years as a Slave, I watched that movie three times in the first week that came out.

00:13:38.800 Or if you've seen Glory by Denzel Washington and Morgan Freeman, you see and feel what many of these slaves experienced during those years.

00:13:48.940 And roughly, it's been said that 1.5 million at a low to 5 million lives were lost due to slavery.

00:13:56.640 Here's another one that many, many movies have been made about.

00:13:59.160 You know this, you've read about this, the Holocaust. 0.75

00:14:02.260 Hitler and the Nazis, 25 million people were killed.

00:14:07.760 Hitler believed in socialism. 0.64

00:14:09.820 25 million people were killed.

00:14:12.820 If you've seen the movie Schindler's List with Liam Neeson, or if you've seen the movie The Pianist by Adrian Brody,

00:14:19.460 you can actually get a feel what they experienced.

00:14:22.120 Now, as tragic this is, as terrible as this is, with the amount of people that were killed during these events,

00:14:29.980 let me show you what communism did.

00:14:31.760 Here's communism for you.

00:14:33.760 It's been estimated between 80 to 94 million people.

00:14:39.120 Let me say it again.

00:14:39.740 80 million to 94 million people were killed by a communistic regime and a communistic leader.

00:14:47.240 Here's some number for you.

00:14:48.120 Number one, Mao Zedong from China was a communist.

00:14:51.020 45 million to 75 million.

00:14:52.980 Stalin from Russia, 40 million to 62 million.

00:14:55.700 Lenin from Russia, 4 million.

00:14:57.840 Pol Pot, Cambodia, communists, 1.7 million to 2.4 million.

00:15:02.060 Ho Chi Minh from North Vietnam, also communist, 1.7 million.

00:15:05.700 Kim Second Sung from North Korea, communist, 1.6 million.

00:15:08.960 Ethiopia, 1.7 million.

00:15:10.460 Afghanistan, 1.5 million.

00:15:12.320 South America, I can give you a lot of different ones on how many people were, lives were lost at these events.

00:15:16.840 Look, here's what to realize.

00:15:19.300 You know, somebody was asked, we were having a debate over term limits, okay?

00:15:23.100 It was actually at the home office by somebody who was a Republican who wanted to have more term limits.

00:15:27.800 And I said, you know why I'm not comfortable with having people be a president or senator or congressman for 20, 30, 40 years?

00:15:35.720 I'm not comfortable with that.

00:15:37.120 Why?

00:15:38.160 Because you eventually get so much power that you think you're bigger than everybody else.

00:15:44.140 And you can go and cross the line when all of a sudden somebody comes in that is only driven by power that can abuse that power.

00:15:51.560 This is why it's good to have a president be two terms max and no longer than two terms.

00:15:55.720 Because whether you like him or not, two terms later in eight years, you're going to have somebody else that's typically going to be the complete opposite.

00:16:02.520 You have Reagan, then you have Bush Sr., then you have Clinton, then you have Bush, then you have Obama, then you have Trump.

00:16:08.740 It's a pendulum.

00:16:09.880 I'm not happy being, I'm not happy.

00:16:11.580 And this is why, it's kind of like this.

00:16:13.540 Our presidents show us like the eagles, right?

00:16:15.580 We go, oh, too much to the left, too far to the right.

00:16:17.820 The point here for you to realize is the following.

00:16:21.580 Capitalism is simply a mathematical formula.

00:16:24.120 So is communism.

00:16:25.400 So is socialism.

00:16:26.480 It's all a math formula.

00:16:28.560 And when it comes down to the capitalism formula, it produces results.

00:16:33.720 That's simple.

00:16:35.240 Communism produces power, control, decision-making for you.

00:16:40.120 Socialism forces you to give to something you don't want to give to.

00:16:44.840 Capitalism says, listen, you give me 30% of your money, I'm going to give you military safety, roads, all this other stuff, laws that somebody can abuse you, bully you, and all that other stuff.

00:16:52.760 Go do what you want to do.

00:16:54.580 That concept works.

00:16:55.600 By the way, for some of you guys that are wondering politically which way I lean, I voted left, Bill Clinton, I voted right.

00:17:03.340 And today, I'm a registered independent.

00:17:05.680 Do you know why?

00:17:06.260 Here's why.

00:17:06.680 They just sold a number on CNN this last week.

00:17:09.220 And they said California used to be a majorly a democratic state.

00:17:13.320 I think today California is 45.6% democratic, 25.4% republican, 25% independent.

00:17:21.340 Both the democratic and the republican vote in California is going lower and they're getting more independence.

00:17:27.000 You know why?

00:17:27.680 Because people are sick and tired of the games being played on both sides.

00:17:31.040 Both sides.

00:17:31.740 Games are being played.

00:17:32.500 Both of them.

00:17:32.920 And the reason why games are being played is because of the following reason.

00:17:35.860 Let me explain to you.

00:17:36.980 When you go in too deep into anything, if you go and hang out with gangsters or mobsters for a weekend, cool, you had fun.

00:17:45.160 Two weekends, no problem.

00:17:47.100 Three months, six months, 12 months later, you're kind of deep.

00:17:50.400 Three years later and you make a commitment to go to a couple business transactions, you're in too deep already.

00:17:54.480 You can't leave.

00:17:55.100 This is what's happening to a lot of our political people.

00:17:57.340 They're so in too deep on the left side or the right side that they can't come out and say I'm wrong.

00:18:02.000 And for you, my suggestion to do a recap of this today, you heard me talk about the heavyweight matchup and the forms of economy, the pendulum that I talked about.

00:18:11.000 Go through it and study the notes.

00:18:12.860 Share this.

00:18:13.520 Watch this with other people and sit down and ask yourself, do you agree?

00:18:16.160 Do you not agree?

00:18:17.020 What do you think about this?

00:18:18.240 Go watch the videos on Phil Donahue with Milton Friedman.

00:18:21.480 Go watch old interviews of Ayn Rand.

00:18:23.640 You're not going to find interviews with Karl Marx, but there are other people you can see that make their arguments for communism or socialism.

00:18:29.460 Break it down for yourself.

00:18:30.480 This just makes no sense to me.

00:18:32.220 I don't agree with this guy.

00:18:34.480 Create that own opinion and you'll see what it comes back down to.

00:18:37.900 If you're an open-minded person, you're going to have a very hard time arguing capitalism.

00:18:43.400 But the only thing we're really going to be arguing is what percentage of your $100 should be taxed.

00:18:47.940 Thanks, everybody, for listening.

00:18:49.400 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.

00:18:53.960 Give us a five-star.

00:18:55.360 Write a review if you haven't already.

00:18:56.860 And if you have any questions for me that you may have, you can always find me on Snapchat, Instagram, Facebook, or YouTube.

00:19:02.900 Just search my name, Patrick VidDavid.

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00:19:09.780 With that being said, have a great day today.

00:19:11.520 Take care, everybody.

00:19:12.080 Bye-bye.

Valuetainment - November 12, 2018

Episode 208： Does Capitalism Work？

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