Top Three Common Myths of Capitalism

Is being pro-business and pro-capitalism the same? Does capitalism generate an unfair distribution of income? Was capitalism responsible for the most recent financial crisis? Dr. Jeffrey Miron at Harvard answers these questions by exposing three common myths of capitalism.

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[Shazbo Valen]

Laissez Faire economics isn't science it's ideology.

Socialism is an attempt to use politics to solve economic problems, laissez faire is an attempt to let economic problems solve themselves, clearly neither has worked, and neither alone has improved the quality of life for most people. All the improvements in our quality of life, our medicine our technology our infrastructure, we owe to science, and to the inventors and engineers that made our society great. Science works.

[Bruce Wayne]

Applying science to economy gets classical liberalism and game theory. Laissez faire economics. Science works the best where a god does not exist and direct something, the opposite of creationist socialism. Richard feynman put it the best by stating that governments stupidity is unexplainable just like gods lack of evidence.

[buzzclick500]

Up to this point in time, President Reagan has been the most recent AMERICAN president. He spoke on behalf of HIMSELF and the American people, so it's perfectly natural that the liberals(communists)hate his memory. No occupant of the White House has publicly apologized to the American people for anything since 1988.

[buzzclick500]

One thing that throws a lot of people, is that Capitalism is a more POSITIVE PHILOSOPHICAL concept than a commercial one, although it can be APPLIED to a commercial endeavor. "I like people, and I want to help make their lives more pleasant, and I have the ability to do that." The true Capitalist knows that the reward will be automatic for such thinking, and isn't obsessed with it.

[garthbartin]

"No one uses other people's money as well as their own."

I'm afraid, as nice as it sounds, that is not an economically sound statement. There are many situations, most notable positive and negative externalities, where central planning is SIGNIFICANTLY more efficient than private markets. The market is best for 99+% of things, but for that last 1% (you gave the example of defense) or so (which happens to be a big 1%), one needs taxes and government spending.

[octalogic102]

bullshit!it's not about the skill level of people it's about money.

"Because they were unlucky" ? 2:01-2

After watching this I have to good back and learn what the meaning of capitalism is? Are they changing the meaning of words and history and this is the way they inform us of a new agenda?

[Kyong Kim]

While the visible part of tax was higher, actual spending today is insanely higher.

They can print money out of thin air, borrow, or tax to raise money.

In any case, money is a representation of resources.

Resources spent by government is resources that could have been spent better by individuals.

No one uses other people's money as well as their own.

There's no central planner smart enough to guide market better than invisible hand. It's beyond human ability.

[garthbartin]

Reagan actually raised income taxes back up after lowering them (not to their original value).

Businesses that hate capitalism ARE the private sector. A tiny government leaves out an enormous number of services the private sector is incapable of suitably providing (healthcare: US system is proof, police force, anything involving positive externalities).

True capitalism is an incredibly imperfect system. It needs a government that directs (not fights) the invisible hand to function properly.

[garthbartin]

I for the most part agree with your disregard of subsidies. However they can be helpful in the context of positive externalities (google it if you're unfamiliar with the phrase).

It is true, a regulation will almost always discourage business and will generally raise prices and unemployment. But the loss is often justified as with say requiring the safe disposal of nuclear waste.

As for Reagan and leaving money in people's hands, taxes under Reagan were much higher than they are now.

[nicscov]

Sharing an idea, like an invention. Ie communism. The scientific method is great for discovering things, but not for distributing them. The free market is a resource based economy.