 So I want to show you a clip of What this great defense of capitalism is? No, and I don't even bed Shapiro. I mean author Brooks And I don't know if you guys know author Brooks, but author Brooks was the for many many years was CEO of the American Enterprise Institute Probably one of the most influential intellectuals on the right Not so much a YouTube celebrity not so much a Facebook. Maybe celebrity, but in Washington, DC the guy everybody listens to the guy everybody His books were best-sellers Everybody took this guy seriously and everybody told me this is the guy to learn from This is the guy who really defends capitalism properly So I want you I want you to listen to how we defense capitalism, right? I Want you to listen to how he defends capitalism and We'll talk about it as he does it. So he is being introduced of the pursuit and president of the American Enterprise Institute Arthur Brooks joins me now Arthur. I want to start with making something clear You are not defending capitalism as it stands You are saying this is a system the spirit of the system works Maybe it needs to be updated and improved, but what I loved you traveled across again notice the theme The Dalai Lama set that is now everywhere that everybody's talking about how to take the capitalist system that has exist today and Improve it right now. I don't believe we have capitalism today. We have statism today We have some capitalism on a lot of statism. We have a mixed economy and I believe the mixed economy could be improved by making a capitalist but note What how he views it how he talks about it the world right Mumbai a small town in Kentucky You went to a Himalayan Buddhist monastery and you saw so he went She's talking about a documentary that Arthur Brooks is doing about capitalism a mall defensive capitalism and note that He went to all these poor places. He went to a Buddhist monastery in Amalaya's in an effort to defend capitalism It's somebody Michael says it's nauseating. It really is nauseating It's disgusting. It is truly Disgusting, but this is what you have to do if you're an altruist in order to defend capitalism You have to go and find You know the people in the worst shape in the world who might have benefited a little bit from a little bit of freedom and Show that that is what the essence of capitalism is don't go to Wall Street. God forbid Don't go to Silicon Valley gone forbid don't go To where real wealth is being created You have to go to a Monastery somewhere similarities in these places that one would think have nothing in common Yeah, no, it's true when you find people that are earning their success. They're serving others They're part of the community. They're being lifted up through entrepreneurship It's so they're earning their success. They're serving others and they're part of the community and They're lifting others That's the essence of capitalism for him serving others Being part of a community. Yeah, you're lifting yourself up, but that's not the main issue. It's Society, it's the community. It's the altruism that is everything here Relatively inspirational, you know, the truth of the matter is since I was a kid two billion people have been pulled out of poverty Largely because the American free enterprise system spreading around the world that it does not mean we don't need regulation so note The key statistic the most important statistic is the people who've been bought out of poverty now, I like that statistic I use it all the time But that's the whole theme. That's the whole justification and of course immediately has to say It doesn't mean we don't need regulation Not mean that we don't need basic human morality doesn't mean we don't need morality because we know Capitalism doesn't have morality. So we need to overlay morality onto capitalism. We know capitalism is not really a moral system So remembering how we can improve the system from generation to generation without throwing it out is the only way we can increase Opportunity and and alleviate poverty around the world today Then why do you see so many Millennials and young Americans simply rejecting the idea of capitalism? Well, they're actually not I mean what they're doing is they're going to you know some anti-capitalist rally in an Uber Now notice. I've noticed this a lot of people are doing this They they are saying that the young people Aren't actually socialists because they use iPhone. They're not actually socialists because they use Uber I mean this would be like saying Karl Marx was not a socialist because I Don't know. What was the latest technology at the time? He used the printing press or Karl Marx was not a socialist because he was Living in London benefiting from a capitalist economy and I mean this is so anti-intellectual So anti-ideological Of course Socialists use technology They're not against technology They just want the state to run it. They want the state to own it and they want massive redistribution of wealth Somebody says Karl Marx was rich. No, Karl Marx was actually very poor It was Engels who was rich Engels actually Family was a rich family that had benefited for capitalism and Engels is the person who financed Karl Marx Karl Marx didn't work. He just wrote and that was financed by Engels who was came from a rich family But it's mind-boggling to me that the idea that oh, no, no, no the Millennials are not real socialists because ideas don't matter What really matters is that they're using the iPhone. I mean that is such a concrete bound Anti-intellectual mentality now again author books is is is the best the right has to offer is the best conservatives have to offer and This is exactly what I ran told us the conservatives are the real enemies of capitalism the conservatives. It's a conservative default That makes the disappearance of capitalism almost inevitable and you know, I get it They're actually very they're they're part of the capitalist system What they don't like are the predations that they see the extreme inequality of opportunity extreme inequality of opportunity What that's what's upsetting the Millennials who are going to hovered and are going to really And that's a big opportunity for us to have this conversation Look what we need is presidential candidates and politicians today that are not saying throw out capitalism We need socialism. We don't we need to balance the ideas of an economy where we have a great safety net Really reliable and have people argue about how big it should be and what it should do. There we go so the way to defend capitalism is To argue for the welfare state, you know, yeah, we should argue maybe conservatives think the welfare state should be smaller and Other people might think the welfare state should be bigger the socialist But we need a balance we need both and like Dalio and these other people the Moken conference. What is Arthur Brooks telling us? We need a conversation We need to get together. We need to have a dialogue We need we need to sit in the room and those of us who want more capitalism or more freedom will argue for that And those of us who want more socialism will argue for that and we'll come up with some kind of balance. I mean it is Pathetic and it's the way you lose. Where's the passion? Where's the commitment to freedom? Where's the commitment to individual values the individual pursuit of values? Where's the commitment to entrepreneurship and the freedom that entrepreneurship requires? Where's the understanding of what wealth comes from? All the discussion is all the discussion is how to distribute it Where's the discussion of how to create it how to create more of it? not from Arthur and The only way you can pay for it is with the free enterprise system that lifts people up gives them opportunity There we go. So What's good is the welfare system and you have to pay for the welfare system So how are we gonna pay for the welfare system? We can only pay for the welfare system if we give people enough Freedom so we can then steal their money so we can then milk them for You know For the funds to fund the welfare system So the standard what makes it good what makes capitalism good in these people's mind is That it is a system that creates wealth so that we can steal it Because what makes it good is not the creating the wealth What makes the system good is the we can distribute that then we create enough wealth so we can do redistributed redistribution That is moral the wealth creation. That's egoistic. That's not moral. That's not right. That's not just that just is it truly is stunning right that This is the way capitalism is being defended not just today You know go read You know, what is capitalism and capitalism and I know an idea by in man and she talks about this as being the way Conservatives defending capitalism in the 1950s in the 1960s Nothing has changed. It's only worse because they're fewer conservatives who are any good more and more of them are this and then Most of them are just non-intellectual at all Then the answer is somewhere in the middle earlier Thinking about Democratic candidates who are railing a little bit of a mix of social audience It's not just Democrats when President Trump was running in 2016 He was railing against Wall Street against Hillary Clinton and the Goldman Sachs speeches He was then elected and then fly why is Goldman? Why is Wall Street associated with Hillary Clinton? Because of cronyism, but it's cronyism just Hillary Clinton. It's cronyism just Wall Street. I mean If cronyism is the problem then cronyism is the problem not not Wall Street It's cronyism self with Goldman partners, but Are Democrats making a mistake or a wrong calculation in just going against Wall Street? Wall Street isn't just a bunch of bankers and hedge fund managers when you think about the rise in stock prices Wall Street isn't just bankers and hedge fund managers What does she mean by that? She means what it isn't just the bad guys those evil bastards The bankers and hedge fund guys who don't do anything productive Wall Street is also she says some of the greatest beneficiaries pension plans Wall Street is good Wall Street is good not because It allocates capital efficiently across the economy now because it is the fundamental engine of wealth creation Now because it has created the most efficient way to allocate capital and Thus to create real wealth and to raise the standard of living of all of us Wall Street is good because the stock market goes up and pension plans benefit The common person benefits What is all pension plans? Who are those people hard-working? nurses Do we understand who that is we don't and it's just a boogeyman It's just an easy thing to do and look the right the left they do that because we're so polarized We're so locked down and one of the things I'm trying to do in this all right So one of the problems this is this is what they always do right that we have problem in America today is what polarized We don't get along We haven't got together We're not seeing kumbaya Polarization that's the problem. It's not bad ideas. It's not bad politicians It's not bad universities. It's not bad philosophies Ideologies no, we just don't get along if only we just Turned out the cheek and lure loved our enemy. Here we go. Here we go Movie is to relax some of these things, you know in point of fact It's a complicated situation in our economy all of us could be better All of us should love our neighbors and even love our enemies. There we go Christianity rearing its ugly head Christianity this is why they can't defend capitalism This is why they cannot defend capitalism It's all about loving our neighbors and even loving our enemies and Capitalism is not about loving your neighbor and loving your enemy Capitalism is about going out there and creating wealth and figuring out. What is a value? What is really valuable being an entrepreneur and figuring out what were people actually value? What is gonna enhance? other people's lives what is gonna make their life better and They'll be willing to pay for it That's what capitalism is about it's about entrepreneurs figuring out What's really a value for human being and what's not? What promotes human life and what doesn't what people are willing to pay for what they're not Not be not because Not because they're turning the other cheek not because they love their neighbor not even because they love their customers like themselves But because they're trying to make money and because they love the challenge and because changing the world is a beautiful thing But changing the world for their own egoistic reasons Profit is a beautiful thing because profit cannot be attained unless you create value for someone and the more profit The more value you've created But even that is not discussed here. No We just need to all get together. We need to love our neighbor. We need to love our enemies And we need to sit down and find the middle ground Then the middle ground should be more capitalism. He thinks he would say But this milk toast offensive capitalism is what conservative secret to coming together What I'm hoping is we go into a new election season. There'll be a few people out there who say, yeah, I'm in favor of capitalism I'm also in favor of a strong safety net. That's what there we go I'm in favor of a mixed economy. Everybody's in favor of mixed economy Actually, that is exactly what Elizabeth Warren says. She says she's in favor of capitalism and she wants a strong safety net People up and education reform and I'm not going to pretend that it's pouring more money into the public education system It's going to fix it. We need people who want to view of these things and understand that Wall Street is not evil On the contrary, you know, this is basically the reason Individuals can be or acts can be very imperfect. Absolutely. But you know, if you go look a generation ago There are business practices that you could say are evil without a doubt their business practices that we absolutely need to change There's regulations that we need to change. This is great. I mean, this is an opportunity for note that at best He could say we need to change regulations. I mean To do it, but remember the American free enterprise system is our gift to the world And it's actually making all of this wealth possible so we can have this conversation in the first place It's also not unique to the United gift to the world states in Spain's election on Sunday The Socialist Party there picked up 123 seats now that is a bit shy of the majority. All right, that's enough. I think it's enough of About the books, but that's just an indication. That's just a You know a tiny flavor of what is going on in the world today. Nobody's defending capitalism Nobody can define capitalism. Did he define capitalism? Do you talk about cat capitalism is? there's just The conservatives are pathetic. That's I think that's the best one can say about them, right? I mean she was No difference between her and him. They all want a mixed economy. They all want the benefits of capitalism so they can suck Like parasites Suck the wealth out Suck the wealth that's created by the few entrepreneurs that are out there and hand it over to people who don't deserve it Who haven't earned it who haven't made it? And nobody nobody challenges that nobody stands up for that Now I strongly strongly encourage you all to read Capitalism not known ideal to read Ayn Rand To read what a proper defense of capitalism has to be in a proper defense of capitalism has to start with understanding the nature of man understanding the nature of man as a rational being and Understanding that every human being has the capacity to take care of themselves and the few that don't Rely on the people who do and there's two ways to rely on the people to do Stealing from them or their charity and Stealing is never right no matter how many people vote for it No matter how many people get together and say it's okay stealing is never right So those who cannot take care of themselves rely on the charity of others. There's just no other way No other way by the way other books ran the most You know the biggest conservative organization not the second biggest after heritage the American Enterprise Institute He is considered a real conservative and The the the representative of conservative ideas out there. That is what conservatism is about That is what Ayn Rand Showed conservatives was about 50 years ago. It hasn't changed 60 years ago. It hasn't changed What do you think's gonna happen to the United States of America if we keep going this way if we keep going this way total collapse But I still think that we won't be keep going this way That what will save this country is not its intellectuals, but the people because they've rebelled already without much intellectual prodding that they've already Becoming aware of the fact that we have to go to the right And not more welfare states. That's a great great Tribute to the intelligence of the people only I want to make something clear. I am not a conservative I think that today's conservatives are worse than today's liberals I think they are if anyone destroys this country It will be the conservatives because they do not know how to preach capitalism to explain it to the people because they do nothing except apologize and Because they're all altruists. They're all based on religious altruism and on that combination of ideas You cannot save this country The trouble with this country is that it was based on the right philosophy Originally by the founding fathers, but they did not have a moral code to match The the political ideas which they had you love this country. Don't you passion? Very very much and consciously. I love it for its ideas And I've seen enough of the other side so I can appreciate this country. You might even