Is Capitalism the Cause or the Solution to the Financial Crisis? | Thomas E. Woods, Jr.

[woodskier]

....if you install means to return the gross income of companies into strengthing the company ( R &D, training, retension, ect.) the company will have a chance to survive, possible grow to dominate.

[daroncrass]

This is great information.

[deteodoru]

A bunch of ENREPRENEURS-- French for taker in the middle who only rips off a "commission" and offers nothing. People who want wealth out of nothing through investments are doomed and Forbes is like Louis XVIth wondering why they're putting his head in a guillotine. Capitalism is capital to PRODUCE, not illusory paper temples. Money may not be booze but it sure can make you drunk of paper illusions!

Woods is selling you tickets on UFOs to wealth planets he's never seen, nor the UFOs!

[Entropy56]

Nearly 2 years has gone by since this interview and Obama and Ben Bernanke's policies are still failing. US credit rating has been downgraded and is Trillions of dollars in debt. Epic fail of government interference with the economy. Steve Forbes was right.

[mba2ceo]

Gambling was the cause NOT capitalism.

[jaworski716]

the chinese made me do it

[ripkej77]

why do these guys make sence ?? Eveyone else just say its going to be all fine we just have to print more money.

What scares me is it feel like the big crash is just a breath away. I don't belive we have not crashed yet that is why I'm confused what is keeping us going?

[CytherLynx]

Chekky Forbes. bandwagon-ing with the Austrian Economists after being shot down and proved wrong on nation TV by Peter Schiff !

He was for all the exact things he just critised just a few years ago! what a phoney!

[CJLopez21]

@CytherLynx lets let the future tell us if hes a phoney. mr. forbes has been wrong in the past but maybe hes changing his tune and is starting to understand the austrian view. Our side certainly can use someone of his name and audience.

all we can do is watch is actions and words to see if he actually changed his views. this video is a step in the right direction

[CytherLynx]

@CJLopez21 yeah, i suppose. it's just a bit hypocritical unless he actually say "yes, i was once for all these views that5 i now criticize"

[SparklestheClown]

4 Months before Election - Barney Frank &Friends - No problem with Fannie/Freddie-Now CFO Dead? - People lied to gain the White House - Destroying our retirements! LIES - 2001 - 2003 Bush said reign in Fannie/Freddie- 2005 Greenspan - reign in F & F - 2006 McCain & Reps. Submit Bill to Reign IN F&F - Dems again shot it down - The overspending - overentitlement attitude of liberals is choking the nation! That is one major thing among many!

[revengeofBatman]

Yes Forbes is a sound money guy. When he ran for president in 2000. He said that we should have stayed on the gold standard. As well as a anti-federal reserve platform.

[atrickpay11]

@revengeofBatman the gold standard is a scam. Money should be left to the market...not with politicians foolishy hoping that they won't default on a gold standard (oh...which they've only done 100% of the time thruout history).

[betodesign101]

is Forbes a sound money guy?

[gunnarsom]

it sounds like it

[eydos]

OK.

1. I do not refuse to "work" but I would love to have the possibility to work within what resonates with my core humanity, work should not be a chore, while if it is, its a kind of slavery

2. the basic injustice of capitalism is that it keeps the vertical social mobility intact, it strives to sustain itself and do not strive to become something more than it is, its a practical unfalsifiability! and it keeps luck and a priori social status a part of the hoped for succes

[eydos]

3. some of what makes you what you are should be recognized as something inherently valuable without being quantified. If basic subsistential needs would be granted within a resource-based social order, than the sole measure of the quality of your humanity would be the amount of VALUE you would freely provide for others in science, art, or thinking or any other area--- the very contribution of the best in you should be the aim, the social measure and reward free from failure

[eydos]

The most devious of all the inventions of capitalism is the manufacture of needs themselves as a tool for providing new economic niches and thus enslaving people once again with the low-value, easy-going, plastic existence they gain in return for their grudging slave-labor. Having your very needs manufactured then turned against yourself in order to generate profit is in principle an anti-human act Late time capitalism does not function according need and demand but creates artificial needs.

[Arjozof]

@eydos That's a complete myth. It is the free choice of people to decide what they need. People aren't THAT stupid to believe everything the ads say - and we can see that everyday. Besides, what you deem "unnecessary needs" is not an absolute right, as some people may consider these needs very necessary to their happiness. But you would deny them their right to pursue happiness, wouldn't you, dirty fascist? :D

[ajnako12]

Again, what the hell is this gibberish? First, you cannot be a slave if you voluntarily work for a company. Second, do you want to go back to feudalism and serfdom where you were forced to live on the substinence level?

[kclau1]

@ajnako12 Are you sure that under the capitalist economy you may "voluntarily" work for a company? From what I understand about capitalism, the capitalist decides whether he wants you, it is not you who will decide who to work for.

[ajnako12]

If you wanted to unwind captialism and industry then the majority of humans would die. The nice thing about the free market is that when we finally got one after the american and french revolutions, we had the industrial revolution, where the standard of living for the masses was finally lifted out of grinding poverty.

One last thing about industrialized nations, they have never experienced famine, an otherwise frequent and normal event in the past and present with agrarian societies.

[Jaycephus01]

@eydos "Work should not be a chore". So there are people who resonate with cleaning toilets? Picking strawberries? Paving the roads? Digging up coal? Baking bread in a factory? This stuff has to get done. Ironically, it is CAPITALISM that has improved all these jobs, increasing the standard of living of ALL in the process. Machines help in cleaning, harvesting, paving and mining. Fewer people have to work at these jobs due to capitalization (machines, automation), and CONSEQUENTLY earn more.

[Arjozof]

@eydos Only capitalism allows that, as it is the only system where rational economic calculation is possible thanks to the price mechanism.

[ajnako12]

and who's going to value people. This insanity sounds like slavery. If you don't have a free market with a free price system you cannot measure value. It's impossible. What if some "benevolent" over lords decided that subsistence leaving was good enough for most of the masses but because civilization would crumble w/o them they reaped in the profits. Then were back to serfdom.

[Arjozof]

@eydos Capitalism is the only system where vertical social mobility is possible, as proven by the 19th century in USA, from rags to riches and back to rags. The system you are talking about, is corporatism, which has engulfed USA and other Western countries, and due to governmental regulations, licences, patents and other obstacles, the social mobility is very hampered and resembles that of Middle Ages.

[ajnako12]

WTF are you trying to say in #2. It's jibberish, I cannot understand it.

[PersianPaladin]

Capitalism rewards the worst of human desires, i.e. selfishness and greed.

[Hatesfury08]

To quote Steve Forbes. "That's like saying that gravity causes airplane crashes."

[eydos]

And I would add: capitalism also constitutes a kind of slavery, a wage-slavery and an enslavement of personality and creativity to the prostitution of ones abilities and values.

But as the saying goes: "happy slaves are the greatest enemies of freedom."

[LibertyWins2012]

"Capitalism also constitutes a kind of slavery." A kind of slavery in which no physical compulsion is used, huh? That must be why people choose to flee to the most capitalist societies -- they're just dying to be enslaved.

Can you try to comment on this subject with something other than an idiotic cliche?

[eydos]

Of course there is no direct physical compulsion involved since the mental compulsion of the live or dies as allowed already does the job, there is no need for physical coercion. and this is the biggest ruse of capitalism.

Then something being a cliché as such never really disproved an idea's truthfulness.

People do not flee capitalism, because they have nowhere to flee. That does not make it the best system theoretically, at best only the less worst one. WE have no escape from this slavery.

[TheLegalImmigrant05]

In other words, "it sucks to have to work for a living"

Yeah, we hear you.

[eydos]

If it is a MUST, and something that you HAVE to do without having a chance to resonate with your personality, well, then yes, working as such IS slavery and is alienation from ones core humanity. But enough said. You ferengi rules of acquisition rule our lives where the lucky and the already well situated have a strategic advantage to the talented but poor. Go on with your delusion, because one day it will surely crumble in a revolution.

[TheLegalImmigrant05]

Help me out here. What "core humanity" are you talking about? Introducing an undefined term to support your main argument hardly helps your case.

Another question: if your "core humanity" prohibits you from earning your own living, how do you propose not starving to death? Who must feed you? and why?

[eydos]

First of all by the core of your humanity I understand the personality and the tendency of your "being yourself" to truly being able to manifest. I believe that each person can grow and prosper in the direction one's talents, aspirations and dreams lead. Sadly capitalism with its basic injustice in many cases obstructs this by playing onto the self-evident-appearing necessity of the capitalist economy, where no true meritocracy is ever shown to rule. A solution would be a value based society.

[TheLegalImmigrant05]

You did not answer the second question - a pretty important question, don't you think?

To your statement above:

What is the basic injustice of capitalism?

How would you define "true meritocracy"? In capitalism, people are compensated according to how the contribute to the production of goods and services desired by consumers (who pay for everything). What is the standard of "merit" that, I assume, you want people to be compensated for? Who will measure this "merit" and how exactly?

[TheLegalImmigrant05]

And lastly, why do you believe that people necessarily are unable to prosper under capitalism by finding their true calling and manifesting their personality through their work profitably? I, for one, do what I like for a living. What's to stop others from doing the same?

[eydos]

Our current socio-economic arrangement engraved itself s a basic constant of our universe into our minds. It is hard to argue against something that appears to be the materialization of the best way to organize large masses. Yet I do think and "feel" that something is wrong with it.

Not always the smartest, the most versed, the most talented are successful within capitalism. Too often the most greedy and the most unprincipled and lucky ones do.

[eydos]

True merit is the one that relates to the best within yourself. In capitalism you have no equality of possibilities. Many personal qualities and interests are simply unvalued because there is no demand for those qualities. If you love philosophy and you are good in it, you may still die if you can not SELL YOURSELF.

As for the problem of feeding: basic things should be granted in a resource-and value based society, is inhuman to keep people slaves to their subsistence.

[TheLegalImmigrant05]

You haven't answered 3 important questions (which would help your argument):

1. If you refuse to work for a living because the jobs accessible to you are not in sync with your "core humanity", who must work to feed you and why?

2. Define the "basic injustice of capitalism" in a coherent and logical way

3. If you want to replace capitalism with "true meritocracy", what is the standard of "merit" that you want to use to compensate people? Who will determine & measure this "merit" and how exactly?

[TheLegalImmigrant05]

You are also quite vague in your definition of greed. Is wanting more stuff necessarily "greed"? Who defines when legitimate desire ends and "greed" begins by what authority, and by what standard? I think if you are going to use "greed" as a central argument against capitalism, you'll need a good definition.

I would suggest finding here on YouTube a short segment of a talk between Milton Freedman and Phil Donahue about greed. Simply search for "Milton Freedman greed" and you will find it.

[Arjozof]

@eydos Read "Atlas Shrugged" by Ayn Rand, there you have all these issues discussed and explained. Capitalism IS the value based society, where being yourself is the quintessence of being happy.

Any other system must rely on force, on coercion to prod human cattle so they can serve the needs of their enlightened overlords from central planning board. You would probably like to be one of them. Power-hunger is disguised by good intentions.

[Jaycephus01]

@eydos

Well, someone is delusional. There is nothing about capitalism or free market enterprise that forces one to work at a specific job.

If eydos begins to feel that his job at the Dept of Transportation as a crash test dummy is no longer resonating with his inner Marxist, he is FREE to seek employment elsewhere. I hear there is an opening for a Green Jobs Czar.

Q: Why is it that Marxists always want to become czars?

[kclau1]

@Jaycephus01 Are you sure? I wonder how many choices a decently educated person has when he is living in an economy which only values "experts" or "university graduates" or "those who have relations with the boss".

[TheLegalImmigrant05]

So what system rewards the best human virtues? With examples please?

[PersianPaladin]

Anarcho-syndicalism, democratic self-management, workers/consumer councils, etc.

[TheLegalImmigrant05]

i mean, with examples of how they have worked from history?

[Weeth]

love this guy

[doc7474]

Thanks for posting this.

[FreiheitKampfer]

Steve Forbes,

We need you to be John Galt. A 'gulch', right about now could make all the difference in the world.

[marxbitesall]

If anybody will save humanity from tyranny it is the Mises Inst.

Govt is the negation of freedom.

[snoopyflick]

Why is it so many people think areas of highest regulation, like banking and health insurance are lasse faire markets?

[vipero00]

Because they're like mushrooms. They eat the bull shit their fed. And their about that educated as well.

[jscott2700]

Steve Forbes IS being dishonest here. He was chiding Peter Schiff very recently arguing that certain aspects of the economy were strong (that weren't), it's here on YouTube. Also, the "blaming it on greed is like blaming gravity for airplane crashes" line is a line right out of Woods' "Meltdown". I'm not saying Woods was the first to say it, but he is quoting it right in front of Tom. I mean it's great that Forbes is seeing the light, but don't talk as if you knew the cause all along.

[secretarul]

Exactly !

i was preparing to say this but i saw your comm !

[trekkerperson]

Woods is great. I didnt know Forbes saw it the same way or is he jumping on board..They are so objective and rational. Free market is the solution for our fascist/socialist economy.

[latewire]

Freaking amazing steve forbes' turnaround

5 years ago he was oblivious to the coming problems, now he's talking like he knew about it all along.

Whatever though, nice to have someone this powerful and well known talking like they're an Austrian.

[stracinsrt4]

We didn't have capitalism. My God people. A central bank runs the economy, that is not capitalism.

[Gerlandox]

hehehe that is FASHISM

[Jaycephus01]

@stracinsrt4

Exactly. People don't understand that interest rate is a price, & the Fed controls & influences 'prices' for money. That ain't free-markets, folks! The Fed/Treasury also inflate our money. That is essentially a regressive tax, given the working poor see their wage evaporate over time. Yes, the money holdings of everyone is 'taxed' through inflation, but the working poor & middle class spend all-most of their income. But under inflation, those who get the money 1st benefit the most

[bjarnet3]

@stracinsrt4 I agree with you 110% !! That is the same argument that I try to explain to people too..

[CircleBastiat]

@stracinsrt4 Indeed, it really is quite frustrating how people are so quick to assign the label "free market" or "capitalist" when at the root of every problem you can find the government.

If you have a sandwich that is 75% shit and 25% ham... are you willing to call that a ham sandwich? No, you'd call it a shit sandwich and stay well away from it.

[SK3Nives]

Uphold the Constitution in its entirety and capitalism works, ALWAYS!

[antilower]

door to bad people are completely enclosed so that we had in 50 years there will be quite better for all:)

[kingstuks]

Forbes is being used to control decent. A job he's more then willing to do.

One of the best interviews I've ever watched. Norman Dodd being interviewed by Edward Griffiths.

watch?v=YUYCBfmIcHM

[kingstuks]

I'm compelled to ask, do you guys sit and + up your own comments? That's how it seems to me.

The Fed didn't come into existence from thin air or from stupid politicians. It's model can from the BOE by same GLOBALIST families that subverted the political system with bribes, blackmail, murder etc. to get these legal tender laws passed. They are the REAL cause to these effects we are suffering now. If you don't deal with these narcissistic psychopaths the problem will NEVER go away.

[n66178]

F the fed!

[taubstumm]

The FED might be private, but thanks to legal tender laws, you have to use its money.

[arcanekrusader]

you'll probably find that they're not laws.

[CurtHowland]

Seriously, look it up. Legal tender laws have been used repeatedly through history to prop up failing government currencies.

Legal Tender laws are very real, and the only reason anyone still uses Federal Reserve Notes.

[blummedia]

I believe it is government intrusion into the free market capitalism that created the scenario we currently face. If the gov. threatens banks into complying with their wishes it is the fault of the government for using force or coercion to achieve its means. I don't know many Banks that do not fear the government regulators changing their ratings.

[kingstuks]

Why does Steve always refer to The Federal Reserve as a part of government? You can't keep ignoring the giant elephant stinking up the living room

[blummedia]

Not sure I understand your post.

[Krampfarsch]

i think because the private federal reserve is protected by the goverment

[rayyf69]

Also it's illegal to compete with the fed, counter fitting is illegal. This , as krampfarsch says, is a protected monopoly.

[fleskebille]

Even if the fed was quasi private, it's completely irrelevant when it's time to place the blame. There's no way it would be able to operate this way without the government!

[elbowbiter1]

Sadly they own the gov't debt thus making the gov't #2 in the power structure. The Fed is the boss, the people with controlling shares in the Fed have controlling shares in the gov't. The Gov't is irrelevant. At least that is how the conspiracy theory goes... and I haven't seen anything to the contrary. I also see evidence in the utter inanity of the bail outs, however I'd love to hear any other point of view on the subject.

[fleskebille]

Governments do stupid shit all over the planet all the time, and big government = big shit! It doesn't matter if it's run by the CFR and RIIA, trilateral commission, Jesus, 3000 NGO's, Kings and Queens, UN, or whatever. The system is broken, and always has been. The belief in the state as a problem solver is the fundamental issue. We can't trust a system based on coercion, how shocking!

[elbowbiter1]

Amen brother you're preaching to the converted.

[kingstuks]

Your wrong.

watch?v=YUYCBfmIcHM

[fleskebille]

OK, i've seen that before. Interesting. Don't see how i'm wrong, even if Dodd is right. Of course big business and money manipulates the government to do its bidding. The problem is still the same (belief in the state). Have you seen this?:

watch?v=Ta7q1amDAN4

Also, google: school sucks podcast

You'll love the second half of episode 6.

What's your solution? If it includes violence, don't bother.

[kingstuks]

Well the oligarchy families aren't going to play nice just because you say please. They didn't just get the monetary system wrong. It was deliberate to destroy the sovereignty and manufacturing so this country can't defend itself. Von Mises and Rothbard played their part their part be corralling disenfranchised people into discussing Economics rather then the real agenda. There is a common thread to their ugly truth.

watch?v=bJG-Htk3FPc&feature=pl­ayer_embedded

[fleskebille]

I don't believe "they played their part". They had real solutions.

AJ: "destroy everything that the sacred flag...": "Allegiance to the flag"? Nuts!

"nationalize the bank". Riight...

The vid brings to light some important things, BUT I'm telling you, it's the belief in the state/system. If you don't see that, you fail!

Have you read "the first global revolution" (Club of Rome) by any chance?

Read "Human Action" and "For A New Liberty".

[kingstuks]

Try this link

watch?v=F8LPNRI_6T8

[mrcool011]

How can someone who is so smart be against M2M? He supports the free market, well M2M is a major part of the free market. Marking things at market price not a made up price like banks are doing. I just don't get how he can be spot on with so many issues but mess up this major point!

[jeruon]

"Mark to market" is sort of an inaccurate label that is given to what you describe. It would be more accurate to say "mark to what I believe the market should be," because institutions essentially set what they believe the price should be for their assets and liabilities. Of course it is in their interest to set prices that are favorable to themselves because it improves their debt to equity ratio and lowers debt costs.

Mark to market should be legal, but dishonest mark to market is fraud.

[17Spartacus76]

I think you mean 'mark to model'

Mark to market means revaluing an asset compared to an active market. It's very accurate, as long as the market itself isn't distorted.

Mark to model is where you 'mark to what I believe it should be'.

[Betty5150]

He talk about Foreign Policy in this?

[freedominsomalia]

forbes should just say if government didnt exist good things will start to happen

[Chainedorlo]

I love Forbe's analogy!

[freedominsomalia]

yea, with greed and gravity.. im gonna say that sometime

[AubreyHerbert]

It's Peter Schiff's.

[enotdetcelfer]

Lol, at first I thought the show was called "Ma Question."

[MooseOfReason]

I wonder if Tom has any other interviews lined up.

[comp7878]

20:28 Forbes talked about credit on strike, and said that a government gave collateral to a union. Argentina was a given example (company name, other info please?). What are other examples? Please provide links if available!

[4rcane]

steve forbes, its not mark to market thats the problem. Assets SHOULD be marked to market, otherwise we have what we have now, where banks pretend the assets they have, have value when they're just junk