 free market people have to encounter in the world out there and the mystery is this capitalism, and I'll tell you what I believe capitalism is in a minute, capitalism to the extent that it is being tried, to the extent that it is being put into action anywhere in the world, no matter what the ethnic group is, no matter what the content is, no matter where it actually is. When people actually apply capitalism to some degree, it's an enormous success, and the mystery is, why don't we do more of that? Why do we hate capitalism so much? Why is it that in most of the world we're moving away from capitalism not towards capitalism? Certainly in the western world, we are eager to turn our backs to capitalism and to get the state more and more and more and more. And to me, this is a great mystery. Capitalism works socialism, Belgium. Capitalism creates wealth, prosperity, longevity, health, beauty, everything good in life. Socialism sucks to create poverty and death and destruction and everything bad in life. And yet, everybody wants to be a socialist. That's cool, particularly those who are young in the audience, your generation in the west, socialism is like, wow, Bernie Sanders in America, Bernie Corbyn in England. I don't think we can talk about hunger. Not quite socialism, but the equivalent of socialism, right? Fascism is just the upside of the same status of authoritarian poverty through hunger inducing coin. So the question is, why? But let's first talk about what I mean by capitalism, because it's a confused issue. The term is confused. What is capitalism? I consider capitalism free markets. We'll get into a more technical definition. Basically it's free markets. But when we say free markets, free of what? Free of what? Free markets are free of coercion? What's that? Free of violence. fear of violence, fear of coercion, fear of regulation, fear of control. So three of government intervention, any kind of government intervention that is coercive, that is controlling, that is regulatory, three moments. Capitalism is a system where the government does not coerce, the government does not intervene, the government does not control. In its purest form, capitalism means a separation of state and economic. The state, I still believe in a state, has no economic role. It doesn't get involved in economics. Now, a lot of times we confuse capitalism with cronyism. What is cronyism? What is cronyism? The state granting economic privilege. The state granting economic privilege. And businessmen seeking economic privilege. And the state being able to grant economic privilege. Now know that the only way the state can grant economic privilege is if the state has economic control. There is no cronyism under capitalism. Cronyism is a feature of statism. It's a feature of state control. When the state has any kind of control, it's going to control some people differently than other people. And part of the power that the state gains is by discriminating so that what? So that you come to me, you come to the state and try to buy favors. All states, all states that get involved in economics are corrupt in one way or another. Sometimes it's suitcases of cash. Sometimes it's campaign contributions. Sometimes it's hiring you after you leave office to help lobby the state. Because you're an expert. You worked for the state. All forms of corruption. All forms of cronyism. But the starting point is state power. State control and economics. My favorite story here is the illustrious. My favorite story here is Microsoft. Everybody know Microsoft, I assume, right? Microsoft in the early 1990s, mid-1990s, was the biggest company in the world. They had the highest market cap of any company anywhere in the world. And they were nasty everywhere in the world. And yet, they had no presence in Washington, D.C. They didn't have an office there. They didn't have lawyers there. They didn't send any money on campaign contributions. No money to politicians. No lobbying firms. Literally zero. Microsoft did zero lobbying. And this is not acceptable to the powers to be. So Congress, you know, I don't know if you've watched Zuckerberg in front of Congress this last week. But Zuckerberg was being testified in front of Congress. These little nobodies who haven't produced anything in their lives, or if anyone in their lives has created negative wealth in the world. Really, one of the great entrepreneurs and one of the great geniuses of production of our generation, that's the kind of world we live in. So Bill Gates and his executive team were watching in front of Congress just like Zuckerberg does. And there was a committee and they said to Microsoft, why aren't you lobbying? Why aren't you in Washington, D.C.? Why don't you have a building here? Why don't you have lawyers here? In other words, why aren't you driving us? And there's a famous senator, he's still in the Senate in America, called Arvin Hatch. He was actually at the hearings with Zuckerberg. He was the guy who didn't even know how my Facebook worked. And he's supposed to regulate something he doesn't know how to work. But he's a Republican, free market supposedly, right? A Republican from Utah and he stood up and he yelled at Microsoft. You guys have to have a building. You guys have to spend money. You guys need to be in Washington, D.C. You guys need to be in Washington, D.C. You guys need to be in Washington, D.C. And Microsoft, Microsoft, the executives of Microsoft said at the end of the meeting, they said, look, we're not interested. You leave us alone, we will leave you alone. We don't need to be there. We're busy, right? We're changing the world. We're literally changing the world. We're building stuff that nobody has. We're exporting it all over the world. People's lives everywhere are becoming better because of us. We don't need you guys anymore. Guess what? Six months later, there's a knock on Microsoft's door. We're from the Justice Department. And we're here to sue you for being a monopoly. Why? What did Microsoft do? What was Microsoft's crime? What was the thing that Microsoft did that really upset politicians in Washington, D.C.? They offered all of us. Now, you guys are too young to remember this, but some of us might remember this. They offered us an internet browser for free. Oh my God. What a crime. Because before that, I don't know how many of you remember this, but I do. We had to pay like 75 bucks to get Netscape. Netscape had gone public, but you had to buy the browser. There was no business model for free browser. Today, how many browsers do we have? 24, right? Major ones and many others, minor ones. All of them are free. But in those days, if you wanted a browser, you had to buy it. And Microsoft said, you don't need a browser. If you buy Windows, we're going to give you the browser for free. That was monopolistic, exploiting the customers. And the Justice Department went after them. And for that, all the other days, the Justice Department ultimately wrote it to go after Microsoft for 20 years. Microsoft had a government bureaucratic in Microsoft offices, signing off from all decisions. Guess what happened to innovation with Microsoft? When they were basically being run by the government. They lost market shade. They become unproductive. They work for them. They became slow after they threw them out of the water. Now because Microsoft is more talented, now because Bill Gates is not a genius, but because they had crossed Washington and Washington sent their agents there to make them pay the price. Guess how much money Microsoft spent today in Washington to receive a model? Tens of millions of dollars. They have a building. They have a big building, beautiful glass, modern building, but equal distance from the White House and Capitol Hill. So they are now in Washington DC. They are now cronies, because they learned a lesson. They learned a lesson. If you don't play the game, you get crushed. If you look at today's technology companies, the ones who play the game are the ones Washington gives a loan. Google, Google from day one has been spending money around in Washington DC. Apple, no. So Apple has gone after Apple. Facebook, no. So they are going after Facebook. So when I talk about free markets, I mean free of all that, because government has no problem. Government can't raise Dr. Bogey. I mean if I was Dr. Bogey, I'm not. I'm no years rich. I haven't changed the world like he has. I would have shown up in jeans and t-shirts. That's how he goes to work. He should treat Congress as employees. I would have walked in and I would have said, I don't recognize your way to interrogate me. And I would have turned around and walked away. Go to hell is what I would have told you. Now there's a consequence. He has to, you know, shareholder is $80,000. So I guess he has to be nice to shareholder. But that was the right way to do it. So to the extent, now I know, we've never had a pure free market. We've never had a system where government is truly separate. From business. But to the extent that we have had systems with it is a separation where there's a little chromism. Countries, economies have done fantastic. When we have a lot of government intervention in the economy, economies tend to grow much slower. If at all, you get poverty. The more government intervention, the more power. The less government intervention means the less power. Capitalism. To the extent that practice is an unmitigated, unbelievable success. The only system in human history to bring people out of poverty. How many people were poor? 250 years ago. 95% at least. Almost everyone. And poor, I don't mean poor, even like the poorest people in Hungary. I'm really poor. I need $2 a day poor. In today's dollars. Imagine living anywhere on $2 a day. You could do it. In Cambodia, in Africa. But it sucks. It's really bad. $2 a day. 95% of all people on the planet live on $2 a day. What was life expectancy? 250 years ago. At 39, I did it in poor, because about 200 years earlier, 300 years earlier, it was close to 35, some place was 29. You guys are all middle-aged and I'm dead. That's what it was like. Most of human life. Most of human history, almost all of human history. This is the chart. It's probably 15 years. This is the chart. This is the graph. This is fine. The y-axis is income per capita. This is $2 a day. This is what 95% of the population is. This is the average income of human beings. I'm going to start at $10,000 a year. It doesn't matter what you start with. This is the chart of wealth or what income doesn't matter. Since minus $10,000, we're basically 95% of it. A good poor, but $10,000. What do you want to give me a date? $80,000. $30,000. Somebody who hasn't seen it. $18,000. $18,000 is good, a little late. But it's good in many other days. Is that fair? $18,000 is still a little late. The Industrial Revolution. Yeah, the Industrial Revolution. But I like a particular date. The three reasons I like this date. Any date to pick is somewhat arbitrary, because it's a period. These things happen over a period. I like 1776. I used to vote. Students don't fall asleep. 1776, why? Three things happen in 1776. One, related to the Industrial Revolution. The first commercialization of the steam engine happens in 1776. So the steam engine was invented much earlier, but the first time it was commercialized, it went into business in 1776. Second, a book, a famous book, published in 1776. The first modern economics book. The Welter Nation. Welter Nation by Adam Schmidt, 1776. And of course, the U.S. Declaration of Independence is written in 1776. Now, all three are connected, because all three are products of the age that comes, leads up to 1776. All of them are products of an era that comes just before 1776. What do we call that period in human history? The 18th century before we speak. What is that era called? The what? The Enlightenment or the age of reason. This is an era in which we discover. Again, we rediscover. We discover from the Greeks, if you will. Aristotle. What we discover is the efficacy, the ability of human reason. That every individual has a capacity. Every individual has a capacity to reason. Every individual has a capacity to know and discover the truth about the world, whether it's Isaac Newton, who teaches us about physics. And we go, whoa, I understand why things don't go out the way they do. That's really cool. And I can use my own mind and I can figure out the equations and I can do it. And it's true. It works. Where did truth come from before Isaac Newton? How did we know stuff? How did we know stuff? How were we told we could only know stuff from where? From some kind of divine revelation for reading a book two thousand years old. All the truth was in the book. I mean, that's why we put Galileo in house arrest. Because when he said that the earth goes around the sun it contradicts the book. The book actually says that the sun goes around the earth. Old Testament really says that. But that's true. That's revealed truth. And suddenly people said, wow, we can know the truth ourselves. And if we can know our truth in physics, which is hard, I wonder if we know what we can know the truth about our own values and what we need in our concept to succeed in life. What about choosing our profession? Remember this was not allowed before this 1776 period. It's not allowed into the profession if you were going to happen the rest of your life. What about choosing my political leaders? Well, God forbid, you know, what we do without kings you have to reveal truth that tells us how to behave. Well, we don't need to reveal truth anymore. So maybe we don't need kings anymore. And suddenly, there was this explosion in the demand for individual liberty. For individual freedom to be left alone for separation of state from life. The only thing we want, the only thing, the Declaration of Independence implicitly allows the government to do is what? What's the role of the government according to Declaration of Independence? It's to protect our ineligible right to life, liberty and the pursuit of happiness. That's it. We can take care of everything else because we have this faculty of reason. And once that is understood, once that is discovered, and once that is implemented politically, whether it's in the United States or in England or in the rest of Europe, there's some degree or another. What happens? People are afraid of something. Massive, massive explosion of innovation and business creation and economic growth and wealth and suddenly fewer and fewer and fewer and fewer people are poor. And not only that, as we become rich, what happens to life expectancy? It expands. It starts at 39 in 1800 by 1960 and today it's well over 80. The mortality of children performance by every measure of human well-being by every measure of human well-being. Life gets dramatically better. During the 19th century. It's the only century out of the 20. The only century that is true. I mean, now other centuries with me it's getting a little bit better. World-wide completion. But no century sees a dramatic completion in human well-being. And that's what the 19th century is. The most important century in my view in human history from a material perspective, from a human flourishing perspective. And yet nobody studies it that way in school. In the 19th century it's about exploitation. It's about child labor. It's about pollution. It's about all the horrible things that happen in the world. Forget about it. Life expectancy is increasing. Well-being increases. No poverty. How many people are poor in the West today? If poor is two dollars a day. Nobody. Nobody. Zero. We capitalise on this much. And because it's probably the worst in the world, what happens in the rest of the world? What happens in Asia? Well, in Asia this is how it continues. Maybe we'll have a little bit of it. And then we'll have the time transition a little bit slower. When did this happen? In 1970. It is probably the beginning of some kind. Probably good for Hong Kong, Singapore Hong Kong is even earlier. Singapore, South Korea, Taiwan is probably in the 70s. Where would this be? Let's say North Korea. North Korea, you know. In 1991. I undergone the Indian State Court. I know reports that they have not done to finance New York. You know, they adopted British socialism. And they stayed for it. And until they actually liberalized the economy in 1991. Anybody know what the date is in China? 1978. 1978. What happened in 1978? Yeah, so the really good thing that happened just before 1978 was the mouse couldn't finally die. I mean, no. But we're talking about a life-changing event for a billion people. Because before he died, people were starving. People were dying. People had nothing. Nothing. In the 1960s, somewhere between 40 to 100 billion people died of starvation in China. Because of how it's caused. He died. That was how pain comes to power. And while Dan was no capitalist and he certainly not for individual liberty or freedom. Dan was a patriot. And he believes that if something works, let it work. And the standard is wealth. In the 1980s, they used to build more than China. Something like, to be a billion in it is good. Things like that. Money is good. That was the communist propaganda of the 1980s. Go make money. First time I visited China. This was in 2006. I arrived here at night and I was driving into Shanghai. And about 20 minutes into the drive I understood for the first time that there were no communists in China. I don't know what they had there but they had communists. The billboards for Coca-Cola and Chanel and Louis Vuitton were bigger than the ones in Piccadilly Circus on Times Square. The skyscrapers were taller and better and modern and amazing. Lights were everywhere. People were selling everything. Everywhere. There's no communism where you have that kind of dynamism. That's kind of marketing, advertising, production, creation. I mean that's screwed up in other words. It's not a healthy place. There's no communism. I don't think we got quite a name but it's certainly not common what they have in China today. So China did that. What Deng Xiaoping did is he kind of by accident said that the county is the kind of area around Hong Kong. What kind of intention is that? We're going to leave them, let them do what they want to do. Because you notice that people were risking their lives across the border into Hong Kong. Instead of shooting them we're going to leave them alone but we're going to leave the whole region alone. Let's see what happens. Bam. Walter was created. He said, ah, maybe we need people alone. It's a good idea. So let's do that in Shanghai. And you go today to China and those places that were identified as trade zones or areas where the government basically left people alone. Amazing wealth. People from all over China came there. I mean I was in a city called Dongguan. In 2006, in 1986 there was nobody there. There was no city. By 2006 there were 8 million people in this city. And at that time 50% of all the shoes in the world were made in Dongguan China. That, by the way, most of the shoes today were made in Vietnam or in Shanghai because wages got too high in Dongguan for the shoe manufacturers to stay prepared. So once China started to do things like that a little bit, created pseudo-mobby rights, left people alone, didn't try to control it regularly. They had to save the United States. Now they're still poorer than us because they haven't done it very well. They haven't done it enough. They're much poorer than us on a capita GDP basis. How many people do you think in the world, Africa, Asia, South Africa, America, everywhere? How many people do you think today live on less, on $2 a day or less? You know what I'm talking about. But there are actual numbers somewhere between 8 to 9% 8 to 9% 30 years ago how many people lived $2 or less? The most under-recorded story of all of human history is the fact that in the last 30 years over one billion people have come out of poverty in the world, extreme poverty in the world. Nobody cares. And how did they come out of poverty because of poverty? Because of charity? Because you guys all sent money to some charity to get money to portray these farmers? No, they all came out of poverty because China adopted a little bit of capitalism. Like you can only imagine what would happen with China actually adopting it. So that's the story of the last 250 years. Capitalism creates wealth, destroys poverty, makes life better for everybody, makes us richer in poverty. You can compare you guys know East Germany, West Germany. In America I have to tell kids the wall in East Germany was not built to prevent everybody from rushing over the wall because they don't know. Too many people today don't know that it was to keep the slaves keep them in their place so they couldn't get it to. You can look at Hong Kong and China for decades and decades and decades Hong Kong went like this and China went like that because one was communist and one was capitalist. You can look at countries that have shifted from more socialism to more capitalism right now. This is South America. Two countries in South America that illustrate this group. 30 years ago this first country was the richest country in Latin America. They're richest country in Latin America. It had fertile soil so it was exporting food. It had and still had the largest oil in the world more than Saudi Arabia. They were good. You have to do more to refine it. Saudi Arabia's oil is really clean. But still, they're more more than Saudi Arabia. They were rich on a per capita GDP. It's been a lot of cool people too but relatively on an African basis they were rich. Over the last 30 years they had the socialism so they have changed their farming practices from private property to collect device farms. They nationalized not only the oil companies but every part of the oil supply chain everything across the entire oil sector. And guess what happened? They moved towards socialism and what did they get in return? A utopia of the proletariat. Yeah, if you consider starvation if you consider extreme poverty if you consider the fact that you corrupt us the capital of Venezuela let me talk about Venezuela they don't ask anymore. Why don't they have pets? They eat them because they're eating them all. They've eaten the animals in the zoos they've eaten everything that they can and they don't have food. So what's happening right now is just seeing millions of Venezuelans poor Venezuelans cross the border into Colombia not extravagantly which country but at least there they're going to get food. They are literally children of starvation all over Venezuela. Anybody who could have left and the people who stuck there slowly died. This was the richest country in Latin America because socialism has become the poorest country in Latin America but what makes the story really interesting is that not far from Venezuela there's another country that 30 years ago was the poorest country in Latin America for the last 30 years in his private times it was regulated it is lower in taxes it even turned its social security program private one of the few countries in the world that has a private social security program and they are today the richest country in Latin America they went in the capitalist route that's chilly so one went like this one went like that one is capitalist one is socialism you'd think it would be easy we don't want to be chilly now things are turning around in Latin America I think they're finally starting to get a little bit and a lot of socialism has been defeated in elections recently in Latin America but up until about a year ago everybody was voting socialism alright that's the mystery right why so let's see if you can figure that out because if you just look at it in honest if you look at human well being in the long term if you look at economists capitalism won a long time ago economists, capitalists, economists female economists have answered all the questions that Keynes and Marx and neo-Keynesians and all the other garbage have performed over the years I mean scientifically they garbage everything they've done has failed so why do we still so let's see about what markets are about what are they really about when we go into the marketplace what are we trying to do what are we seeking what is the purpose of a marketplace so Steve Jobs makes this why does he make this what's the purpose of this yeah to make money so Steve Jobs wants to make money the first iPhones had a profit margin I don't know 60% if Steve Jobs cared about me he would have sold them a lot cheaper but he didn't he cared about his own profit what else only about money Steve Jobs made this just about money solution but what was it about the solution yeah his satisfaction the passion it's cool right he wanted to make something beautiful something in his image something that he would be proud of at the end of the day Steve Jobs made this for whom he made it for himself he made this out of wanting to have fun he made this out of his own passion for life out of his own passion for beautiful things his own passion for technology how many focus groups did Steve Jobs do before the iPhone came out you know you probably study marketing and they teach you to do focus groups because you want to know what your customers want how many focus groups did Apple do assume it Steve Jobs can ask me what I wanted because I didn't know what I wanted none of us know what we want great entrepreneurs don't ask for what we want they give us and then they convince us if that's what we want and if they're wrong we don't buy it and if they're right a life changes without us even knowing I didn't know I wanted a cell phone I barely knew I wanted a computer I still didn't know I wanted an iPhone what have we done with it these days that I have well I have many computers that I have you know I think I have many phones it's no great entrepreneurs figure out what you want way before you know what you want and they give it to us because not because the goodness of the heart not because they want to meet because that is a challenge they put upon themselves and it's fun to fulfill that passion people don't start up companies because they want to satisfy one thing people start companies because they love the business they love creating products they want to build and make something because it makes them feel good gives them a sense of pride and achievement they'll lock it down with them they don't do it for them and I like to say you know I remember the first iPhone I don't know about you but I remember 2008 this economy was going like this financial crisis was happening and I went and I bought my iPhone because I wanted to stimulate the US economy because I had my canes and all I had was the Tokyo and such a price economy and I wanted to help the US economy get better that's why I bought my iPhone because I know that's why you guys go shopping because you want to help your fellow man make sure people have jobs but usually it's one person why do you go shopping? could be crews like that I bought this because I wanted to be more productive I wanted to be cool I thought you would enhance my life and it has I paid 600 bucks for this do you know how much this is worth to me more how much money this is like tens of thousands of dollars I can face time with my kids when I'm half the way around the world I can communicate with my business associates 24-7 anywhere around the planet at any time I can take videos I can watch videos I can millions of little things I can do this I mean I know if there's a youngster who's born with this attached to your hand I remember the world before this and my life is tens of thousands of dollars people in that bad business now don't tell that we're free quite much so what's capitalism? what are markets about? juices come to the market consumers come to the market and they're all coming to the market for the same purpose yeah to meet their lives better up everybody in the marketplace is so interested we all go to the market to meet our lives better up in which we pursue our self-interest now this is in news Anna Smith wrote this in the Waltham Nations he said the baker doesn't bake the bread for you he doesn't know you he doesn't care that much about you he makes the bread because he's taking care of his own life he's trying to build the businesses putting food on the table for himself but he's family it's not an immobility does it it's out of self-interest hopefully the even likes baking bread because you care about the baker it's not like you care about him making a living you're not buying the bread to help him you're buying the bread because it's good for you because it's worth more to you than the dollars you give up for it I've modest all months about the pursuit of self-interest and yet whether we be taught as big I'll tell you put your mother's t-shirt on something bad, right? it's not good it's not good to be selfish it's not good to think about yourself for us it's not good to be self-interested my mother, the Jewish mother taught me to think about this books think of yourself last what's normal what's good what's virtue sacrifice selflessness helping other people it's all about others we build sculptures for people who are self-interested we build sculptures for people who have sacrificed their lives and died for something above and beyond it's all about self-interest that's virtue morality it's not about living it's not about succeeding it's not about being happy it's not about being self-interested it's about being self-control it's about thinking of others first it's about being self-interested it's about suffering everybody being to a museum seeing things cultured have you seen a painting of saints with smile on their faces? the whole point of being a saint is that you suffered the whole point of being a saint is that life sucks for you maybe you've been awarded an afterlife but this life sucks so they're all desperately suffering they don't have a smile on their face morality is not about having fun morality is about the opposite morality is about sacrifice, selflessness so no, we have a system happening which is great but it's evil because everybody's self-interested how can you have a system? now this is the quandary Adam from Smith Space he said, you have a system where everybody pursues their self-interest and somehow magically call it the invisible hand somehow magically society's better up and since society is the standard it's a good system so everybody's committing a vice everybody's doing something immoral but when we add up all the immoralities we get grudges nobody vices that's nonsense it can't be true advice is advice if self-interest is bad if self-interest is wrong adding lots of self-interest up makes a big advice called capitalism and so capitalism in our system today is inherently immoral because it's based on advice and advice is self-interest and it doesn't matter that it helps other people because it helps you too here's the perfect example bookings how do you become a billionaire? this is really good for you guys I'm going to disclose to you that if you can't become a billionaire you're going to have no excuse how do you become a billionaire? produce stuff people like is that enough? produce stuff people like stuff that lots of people like and we're talking lots right it can't be thousands it can't be hundreds of thousands it can't even be millions it has to be hundreds of millions maybe even billions of people like and they like it so much that they're willing to pay you for it more than what it costs you to produce so the way to become a billionaire is to reduce something billions of people want more than what it costs you to produce and if you can do that over and over and over and over again you'll be a billionaire very quickly why are people willing to pay you more than it costs you to produce? why would they pay you? it's more to them they like to better off so the short hand of this the only way to become a billionaire is to make the world a better place for billions of people the only way to become a billionaire is to make the world a better place for billions of people by selling them something they really want a price that's higher than what it costs you to produce you have no excuses now you should all become billionaires I expect a percentage it's simple so here's what it is you became the richest man in the world by changing the world by making the lives of billions of people pop open everybody in the class almost by selling the product by Microsoft that improved our lives we kept paying a hundred dollars for them because they would work more than a hundred dollars because all of us had them they everything like net worth and ultimately in the internet without Microsoft it's helpful we get internet all of these things happen when the planet gets better because of Microsoft how much more correct does Bill Gates get for changing the world and making it a better place the mall credit is not business credit the mall credit you got is 70 billion dollars but what is the mall credit how much does it get negative yeah you may don't live in that place but you may not be doing it it doesn't count when does Bill Gates become kind of a cocaine guy he used Microsoft God forbid he should still work with Microsoft to create and build anything we don't want that some of us don't want Bill Gates now he has to lead Microsoft and go start a foundation and give them money now he's not giving anything in return he's giving it out now so building, creating, making, producing changing the world because you better think about it but giving it away how much will he change the world by giving it away a little bit he'll impact the lives of maybe hundreds of thousands but that's good because he's not getting anything in return so he's small so the point is not notice, the point is not how much do you hold by the people if that were the case capitalism would have been a long time ago the point is that you benefit and if you benefit it's no good okay it's still not a saint we're still not building a sculpture we're still not naming bullet clouds after him right what would it take for Bill Gates to become a saint he'd have to die okay but if he died tomorrow would he be a saint what's the problem with Bill Gates today he still has lots of money and he seems to be enjoying giving it away he's having too much fun he's not suffering exactly how do we make Bill Gates a saint he'd have to give it all away he'd have to move out of his big beautiful sophisticated fancy house maybe into a tent and if he could bleed a little bit for us then he's a saint they were called culturally he's a saint that's the world we live in like it or not, that's the world we have we value sacrifice we value suffering from a moral perspective and you can't value capitalism because capitalism is not about suffering it's not about losing it's about making life better consistently constantly over time and as long as we don't value that forget it we're not going to adopt capitalism we don't care nobody's reporting the story of a billion people coming out of poverty because nobody actually cares because it happened because of capitalism we should be dancing in the streets it's the best story in life so in my view if you adopt this morality with sacrifice and selflessness capitalism is eating all and since we have adopted that we remove the weight of capitalism we don't buy capitalism the only way if you value human life if you value prosperity if you value wealth if you value life extension and everything good in the world the only way to defend that is by changing our morality as long as we alter the morality we call it altruism altru means other other is capitalism capitalism can't go away with it what we need is a new morality what we need is to rethink self-interest is self-intensively bad is self-intensively evil and this is Inrant's great contribution to the debate this is Inrant's one of many but this may be the most important one in terms of capitalism what Inrant contributes to the debate this big economic political debate she says it's not about economics it's not about politics what's necessary is not an economic revolution it's not a political revolution what we need is an ethical revolution she asks a simple question about morality she says everybody teaches us that the good is to be self-left is to sacrifice and get what in return nothing for something less valuable she asks a simple question why? why is that good? why is it good to give it to get nothing in return why is it good to be self-less why is it good to look for the happiness of others other than what is written in the ancient book God said so the dictator said so the tribal media said so the council said so the king said so and they have a huge interest in saying so why? the last thing religious leaders, political leaders, anybody the authority wants is for you to live your own life for yourselves they want you to live for the group and guess who decides what's good for the group this group doesn't know this group doesn't have consciousness you need a leader and what gives a leader value is his ability to decide this is good for the army and race this is good for the proletariat this is good for hungry you don't know what's good I know what's good and your job is to sacrifice for hungry or for the proletariat or for whatever kill anyone and suddenly she's like why can't I decide I'm going back to that idea of reason I have the capacity to think and why shouldn't I live for me why is my happiness less important than other people's happiness it should be more important why? why should my happiness be more important than your happiness this is my habit you live once no second chances you don't get any five minutes to spend back you don't get anything you don't get a second chance you don't get a real living one shot in life why not make the most of it why not live the best life that you can live why not embrace life cherish life live and be successful and happy wow what a concept and with a smile not suffering but having fun why not do that because that's the truth that's what we're here for not that anybody put us here if we can't be happy what's the point there's no point the only point is our own life our own happiness what would people say that it's a selfish you can lie, steal and cheat you can do bad things to other people really notice how they've taken this concept of selfishness of selfishness and they put two kinds of people into this concept real crooks of thieves and murderers and bad guys they're always selfish and Steve Jobs in the vocation is a great producer they're all in the same country they're all selfish the capitalists and the criminals are lumped together just like the cronies of capitalists are lumped together and by doing by lumping people together like that and calling them all self-interested what do we get a mess and we don't trust Steve Jobs in the vocation because their selfish it's just like I don't know I tell you that well like Bernie made up you know Bernie made up this example I was in the U.S. Bernie made up the biggest pyramid scheme I think in the world 63 billion dollars the managers in the poor scourge was he selfish was Bernie made up self by stealing in a sense 63 billion dollars was that selfishness to do is it the same kind of thing Steve Jobs building the apple which was selfish are those in the same category stealing 63 making 63 are those the same thing who answers oh had the big differences what do you think Bernie made up the like was like happy I mean liars cheaters you think they do well in life now there's only one profession because they do well in life what's that what's the one profession to see that by lying politics ever met a happy politician I have not politicians are typically miserable pathetic weak human beings all you have to do is look at the Clintons misery it's just a trope in the fall or Donald Trump liars cheaters do not succeed in life they might get money but money's not what's about it money's just one measure that a living lying is a stupid stuff Bernie made up who was caught in his own jail said that he is happy up in jail now that he was before he was caught he had sex because he was stealing fun he couldn't talk to his sons his sons wanted in on the business his sons wanted to know how his father was doing so well that he wanted to share in it and he kept saying oh no no no it's too complicated for you it's too stupid right these are successful young men so he had a horrible relationship with his sons because he had a God though from the sequence his wife had no clue where he was coming from he had to lie to her I mean if you're not sure what lying does to you and how destructive it is try spending a couple of days lying to your friends or to your wife or husband just for putting it out see what it's like it sucks she continues to be worried about being getting caught not getting caught by the government I'm so confident they never caught him how did he get caught anyone you know his son ultimately figured out what he was doing and caught him the same son committed suicide a year later because he was so ashamed of what his father was you don't succeed in life by stealing and lying and cheating not really superficially but it's not successful it's miserable and things like your son committing suicide because of you you have to live with that doesn't lead to success on the other hand if you're productive if you're producing if you're trading if you're creating at whatever level you are whether it's a bill get to see Josh or whether it's just a work of a plant but you're working it's your work it's your product your effort your focus whatever you're doing you have pride in what you're doing you have satisfaction in what you're producing you're living by your terms not constantly protecting yourself and being discovered by other people but in your terms you don't care about other people what other people know about you because it's nothing to happen that's a life worth living you'll monitor your better people and that's self-interest self-interest is about using your mind when a teacher it's about being dedicated to reason and if you're dedicated to reason then lying particularly to yourself is the last thing you want to do in the world why? why is lying to yourself so bad? if you're dedicated to reason you ask yourself there's a term in computers called garbage in garbage not if you put junk inside the brain then the product of what it does inside then you're subconscious and your calculations and your rational thought is not good you depend your life depends on knowing what's true and what's not what is fact and what is false what is a lie and what is the truth so a dedication to reason is a dedication to truth and if you're dedicated to truth then you have to know it's true so you have to be independent and if you're dedicated to yourself then you have to produce the things necessary for your own life to stay normal so you have to be productive and you have to have integrity and you have to treat other people with justice that's how you build a moral code a moral code of self-interest a moral code that produces real produce real capitalism live by it even if they don't know it they live by it because they couldn't achieve without it nobody achieved anything without thinking and dedicating themselves to facts you mean every business book self-help book what they teach you is to be true to reality is to think it's to dedicate yourself to facts it's not to evade reality not to evade facts not to evade truth but stay true so Grant presents us for the first time I think it's just Aristotle with a morality it's okay a morality says that your life is yours and the purpose of your life is to achieve happiness and flourishing to achieve success and living and being a human being and she gives the virtues and values when necessary to do that but that should be what morality is about morality shouldn't teach us how to sacrifice a guy how to live on a people morality should teach us how to live the best life possible for ourselves that's what Aristotle said that's what I meant agree with the details what's important is the principle this is what morality should be about and if you live for yourself if you're dedicated to your unhappiness if you're dedicated to your own independent mind would you tolerate some dumb and bureaucrat telling you what business you can or cannot open under what terms you can open it or close it under what products you can take or not take what medicine you can use or not use you can use Uber or not I understand it's illegal illegal hearing I mean what human being or self esteem the government to tell it whether it's ok to use a taxi or Uber shouldn't you be ever going to get that choice in other words if you're self interested if you have self esteem if you can't buy yourself you don't accept bureaucrats government officials anybody telling you how to live you live by your own judgment and therefore capitalism is the only system you would accept so anyway we want the economic health in a sense we want the political life but we've lost them all but that's what we need to win so what we need is an ethical revolution a moral revolution it is for a moral revolution what we're talking about is not a political economic revolution what we're talking about is a moral revolution because if we win that one everything else is easy everything else is easy no individual self esteem wants social they're willing to fight for that