1 00:00:00,000 --> 00:00:02,300 Welcome to Keith's night. Don't tread on anyone. 2 00:00:02,300 --> 00:00:06,800 This is a book summary of excuse me, Professor challenging, the 3 00:00:06,800 --> 00:00:10,100 myths of progressivism edited by Lawrence. 4 00:00:10,100 --> 00:00:13,500 Read myth. Number one, income inequality 5 00:00:13,500 --> 00:00:16,800 arises from Market forces and requires government 6 00:00:16,800 --> 00:00:20,800 intervention. Summary response, economic 7 00:00:20,800 --> 00:00:24,200 inequality, like the personality traits that make up each 8 00:00:24,200 --> 00:00:28,300 individual or a defining characteristic of humanity, when 9 00:00:28,300 --> 00:00:31,700 economic inequality. Is naturally in the marketplace, 10 00:00:32,000 --> 00:00:36,200 it largely reflects the ability of individuals to serve others. 11 00:00:36,500 --> 00:00:38,700 When it arises from political connections. 12 00:00:38,700 --> 00:00:43,100 It's unfair and corrupt allowing economic inequality to occur. 13 00:00:43,400 --> 00:00:47,400 So long as it doesn't derive from politics, inevitably raises 14 00:00:47,400 --> 00:00:49,300 the standard of living for society. 15 00:00:49,300 --> 00:00:53,300 As a whole concern. For the poor is often a way to 16 00:00:53,600 --> 00:00:56,900 Simply disguise Envy or disdain for the rich. 17 00:00:58,200 --> 00:01:01,600 Myth number two, because we're running out of resources, 18 00:01:01,600 --> 00:01:05,800 government must manage them. It is simplistic to assume that 19 00:01:05,800 --> 00:01:10,400 people will blindly use up what sustains them without regard to 20 00:01:10,400 --> 00:01:12,900 the incentive structures. They face if they have 21 00:01:12,900 --> 00:01:15,000 incentives to conserve, they will do. 22 00:01:15,000 --> 00:01:19,000 So private property is a powerful incentive to conserve 23 00:01:19,000 --> 00:01:23,000 resources. You lose if you squander, what's 24 00:01:23,000 --> 00:01:27,300 yours, when property is held in common you have a license to use 25 00:01:27,300 --> 00:01:31,000 and abuse. Sources with little incentive to 26 00:01:31,100 --> 00:01:35,400 nurture and improve them. Myth number three, equality 27 00:01:35,400 --> 00:01:38,300 serves the common, good response. 28 00:01:38,500 --> 00:01:42,700 If people are free, they will be different that reflects their 29 00:01:42,700 --> 00:01:46,000 individuality and their contributions to others in the 30 00:01:46,000 --> 00:01:49,100 marketplace. It requires Force to make them 31 00:01:49,100 --> 00:01:53,800 the same talents, industriousness, and savings are 32 00:01:54,000 --> 00:01:57,800 three of many reasons why we are in different incomes in a free. 33 00:01:57,900 --> 00:02:00,400 A society forcing people to be equal. 34 00:02:00,400 --> 00:02:06,000 Economically may make misguided egalitarians feel better, but it 35 00:02:06,000 --> 00:02:09,100 does real harm to real people myth. 36 00:02:09,100 --> 00:02:13,700 Number four, the more complex the society, the more government 37 00:02:13,700 --> 00:02:17,200 control. We need response complexity does 38 00:02:17,200 --> 00:02:20,500 not automatically suggest centralization of power. 39 00:02:20,700 --> 00:02:24,200 You and I have a full-time job managing our own respective 40 00:02:24,200 --> 00:02:26,700 lives. Our task increases 41 00:02:26,700 --> 00:02:29,100 exponentially. If we Try to control the lives 42 00:02:29,400 --> 00:02:33,600 of a handful of others and it explodes Beyond Reason, if we 43 00:02:33,600 --> 00:02:37,800 try to control the lives of millions, myth number five, 44 00:02:38,200 --> 00:02:43,200 income inequality is the great economic and moral crisis of our 45 00:02:43,200 --> 00:02:45,200 time. Historically, the worst 46 00:02:45,200 --> 00:02:49,600 demagogues demonize a group. They don't like such as the rich 47 00:02:49,600 --> 00:02:51,800 for the purposes of political gain and power. 48 00:02:51,800 --> 00:02:56,900 Lust hypocritically many progressives Advocate government 49 00:02:56,900 --> 00:02:59,500 income redistribution. Bution in the name of equality, 50 00:02:59,700 --> 00:03:03,600 but rarely run their own lives, that way, or spend their own 51 00:03:03,600 --> 00:03:06,300 money and accordance with the policies. 52 00:03:06,300 --> 00:03:11,200 They support myth, number 6, capitalism Foster's, greed, and 53 00:03:11,200 --> 00:03:15,500 government policy must temperate, summary, response 54 00:03:15,700 --> 00:03:19,400 greed has become a slippery term that cries out for some 55 00:03:19,400 --> 00:03:22,400 objective. Meaning, it's used these days to 56 00:03:22,400 --> 00:03:25,700 describe lots of behaviors that somebody doesn't like for 57 00:03:25,700 --> 00:03:27,800 others. Sometimes, hidden reasons self. 58 00:03:27,900 --> 00:03:32,100 Interest is healthy and natural how you put it into action in 59 00:03:32,100 --> 00:03:35,600 your relationships with others is what keeps it healthy or gets 60 00:03:35,600 --> 00:03:38,400 it Off? Track lawmakers and government 61 00:03:38,500 --> 00:03:43,400 are not immune to Greed and if anything they magnify it into 62 00:03:43,400 --> 00:03:47,900 harmful outcomes, myth number seven, the free market ignores 63 00:03:48,000 --> 00:03:53,500 the poor explaining, how a, socialist have a socialized 64 00:03:53,500 --> 00:03:57,800 activity, could actually be done better by private voluntary. 65 00:03:57,900 --> 00:04:01,000 Terry means in a free market, is a little, like, telling a blind 66 00:04:01,000 --> 00:04:04,200 man, what it would be like to see, but that doesn't mean we 67 00:04:04,200 --> 00:04:08,000 should just give up and remain blind examples of the wonders of 68 00:04:08,000 --> 00:04:10,700 free and willing, exchange are all around us. 69 00:04:10,900 --> 00:04:13,600 We take them for granted. Just imagine what it would be 70 00:04:13,600 --> 00:04:17,100 like if she was in Sox, had been a government of plea for a 71 00:04:17,100 --> 00:04:21,500 couple hundred years versus the variety and low cost of shoes as 72 00:04:21,600 --> 00:04:26,900 now provided in 40 countries by entrepreneurs free markets open 73 00:04:26,900 --> 00:04:30,200 the way for people to Act immorally, but that doesn't mean 74 00:04:30,300 --> 00:04:33,200 they always will nor should we assume that when armed with 75 00:04:33,200 --> 00:04:37,900 power, our Behavior will suddenly become more moral 76 00:04:38,800 --> 00:04:43,500 number 8, the economy needs more planning Central planning that 77 00:04:43,500 --> 00:04:46,300 is consider the Wonders all around you. 78 00:04:46,300 --> 00:04:50,600 Perhaps far, more than you ever imagined are the result not of 79 00:04:50,600 --> 00:04:53,600 some top down Central plan, imposed by wise, schemers and 80 00:04:53,600 --> 00:04:57,800 government, but rather of the dreams and plans of individuals. 81 00:04:57,900 --> 00:05:02,000 Owls and their personal initiative Central planning, as 82 00:05:02,000 --> 00:05:04,600 an economic framework is rooted in what? 83 00:05:04,600 --> 00:05:08,700 Hayek would call a pretense to knowledge. 84 00:05:09,000 --> 00:05:11,800 No, group of people, no matter how much government power, they 85 00:05:11,800 --> 00:05:17,200 possess can possibly no more than an infinitesimal fraction 86 00:05:17,500 --> 00:05:20,300 of the knowledge. They would have to possess to 87 00:05:20,300 --> 00:05:24,600 plan and economy. Myth number 9, human rights are 88 00:05:24,600 --> 00:05:27,700 more important than property rights summary. 89 00:05:28,700 --> 00:05:32,700 You own yourself and you own those material, things you've 90 00:05:32,700 --> 00:05:38,000 created or traded. For freely with others. 91 00:05:38,100 --> 00:05:42,100 These are rights to property property in yourself and in your 92 00:05:42,100 --> 00:05:45,500 possessions and cannot be separated from Human Rights. 93 00:05:45,800 --> 00:05:48,500 America's Founders made no distinction between human rights 94 00:05:48,500 --> 00:05:50,000 and property rights for good reason. 95 00:05:50,100 --> 00:05:52,400 There aren't any. They are one and the same. 96 00:05:52,700 --> 00:05:56,300 You're right to. What's yours is very different 97 00:05:56,300 --> 00:06:00,700 from a claim on the person or property of others. 98 00:06:01,300 --> 00:06:04,300 Myth number 10. I have a right summary. 99 00:06:04,500 --> 00:06:07,700 Genuine rights. Prior to government. 100 00:06:07,700 --> 00:06:10,800 They are part of our of your nature. 101 00:06:11,000 --> 00:06:14,800 As an individual human, the desire to have something doesn't 102 00:06:14,800 --> 00:06:17,300 automatically mean, you have the right to it. 103 00:06:17,600 --> 00:06:21,200 If your alleged or right to something cannot be achieved 104 00:06:21,200 --> 00:06:23,400 without forcing another person. To provide it to you. 105 00:06:23,700 --> 00:06:25,700 Then it wasn't a right to begin with. 106 00:06:26,300 --> 00:06:30,100 You have a right to read a book, but you have no right to compel 107 00:06:30,100 --> 00:06:34,400 someone else to give you one. Myth number 11, rich people have 108 00:06:34,400 --> 00:06:38,800 an obligation to give back summary response, the innocent 109 00:06:38,800 --> 00:06:41,700 sounding phrase. I want to give back far too 110 00:06:41,700 --> 00:06:45,700 often implies guilt for having been productive or successful. 111 00:06:46,600 --> 00:06:49,800 If you earned it through wealth creation, followed by free and 112 00:06:49,800 --> 00:06:53,200 voluntary exchange. Don't let others get away with 113 00:06:53,400 --> 00:06:56,500 making you feel guilty just because you have it, the people 114 00:06:56,500 --> 00:07:00,500 who really should give it back. Are those to whom it doesn't 115 00:07:00,500 --> 00:07:03,800 belong or who took it? Mothers in the first place. 116 00:07:04,800 --> 00:07:08,400 Myth number 12. I prefer security to Freedom. 117 00:07:09,200 --> 00:07:11,700 True security is an outgrowth of Freedom. 118 00:07:11,900 --> 00:07:16,200 Not an alternative to, it being dependent, instead of being 119 00:07:16,200 --> 00:07:19,300 independent is a move away from True security. 120 00:07:19,600 --> 00:07:23,500 Mr. Reed's observation more than half a century ago that 121 00:07:23,500 --> 00:07:27,000 increasing Reliance on a welfare state for security would provide 122 00:07:27,000 --> 00:07:30,900 financial problems. Seems positively prescient 123 00:07:30,900 --> 00:07:33,100 today. Consider our Seventeen point 124 00:07:33,100 --> 00:07:35,400 five trillion national debt as evidence. 125 00:07:35,700 --> 00:07:38,900 The real choice is not between freedom and security but between 126 00:07:38,900 --> 00:07:44,500 security and insecurity myth number 13, cooperation not 127 00:07:44,500 --> 00:07:48,200 competition. Competition is actually a very 128 00:07:48,200 --> 00:07:51,900 important kind of cooperation. It prompts people to serve 129 00:07:51,900 --> 00:07:55,700 others in the best ways. They know how a company that 130 00:07:55,700 --> 00:07:59,400 gets a high market share because of its efficiency and service is 131 00:07:59,400 --> 00:08:01,900 both competitive and cooperative. 132 00:08:02,300 --> 00:08:05,800 Sense that it earns the satisfaction, and patronage of 133 00:08:06,000 --> 00:08:09,600 customers and economy. Without competition, would be 134 00:08:09,800 --> 00:08:12,900 larded with waste and indifference. 135 00:08:13,400 --> 00:08:17,400 The core assumptions of antitrust laws are dubious and 136 00:08:17,700 --> 00:08:19,800 nebulous. Myth. 137 00:08:19,800 --> 00:08:22,800 Number 14. Healthcare is a right. 138 00:08:23,000 --> 00:08:24,500 Claiming. That one has a right to 139 00:08:24,500 --> 00:08:27,900 healthcare is rhetorical exercise. 140 00:08:28,200 --> 00:08:31,200 The rubber hits the road, when it's actually enforced, which 141 00:08:31,200 --> 00:08:34,799 means somebody has to be compelled to provide it or pay 142 00:08:34,799 --> 00:08:36,700 for it. Centralizing Healthcare 143 00:08:36,700 --> 00:08:40,000 decisions is a movement in the wrong direction, away from 144 00:08:40,000 --> 00:08:44,800 Individual consumer and toward planners, who have no special 145 00:08:44,800 --> 00:08:47,600 knowledge, that would allow them to make good decisions for 146 00:08:47,600 --> 00:08:51,000 others market-based. Consumer-focused options for 147 00:08:51,000 --> 00:08:53,900 Health Care deserve more serious consideration. 148 00:08:55,000 --> 00:08:58,300 Myth number 15. We are destroying the Earth and 149 00:08:58,300 --> 00:09:01,600 government must do something physics. 150 00:09:01,600 --> 00:09:04,800 Teaches us that matter. Is not really destroyed but 151 00:09:04,800 --> 00:09:07,600 rather transformed. So the ever-present question is, 152 00:09:08,100 --> 00:09:10,500 is it worth it Market transactions? 153 00:09:10,500 --> 00:09:13,600 Transform resources, as well as ownership of them. 154 00:09:14,000 --> 00:09:17,800 And if enhanced value doesn't result from those transactions, 155 00:09:17,900 --> 00:09:22,800 the resulting losses tend to minimize future, mistakes, myth 156 00:09:22,800 --> 00:09:28,200 number, 16 ownership. Must be tempered by sharing 157 00:09:28,900 --> 00:09:32,600 progressives are two-faced when it comes to ownership. 158 00:09:32,600 --> 00:09:36,700 They are suspicious of it when it's private and personal but 159 00:09:36,700 --> 00:09:39,800 supportive, when it's politicized, and centrally 160 00:09:39,800 --> 00:09:42,700 directed, whether it's people or property. 161 00:09:42,800 --> 00:09:45,800 It will be owned. It's just a matter of whether 162 00:09:45,800 --> 00:09:49,100 it's owned by those, to whom it belongs, or to those, who want 163 00:09:49,100 --> 00:09:53,200 to claim it for some alleged higher, cause private ownership 164 00:09:53,200 --> 00:09:57,000 of property. Is both a And a necessity, get 165 00:09:57,000 --> 00:10:01,000 rid of it and you flush civilization down with it. 166 00:10:01,100 --> 00:10:05,400 Common ownership is largely impractical and meaningless. 167 00:10:05,500 --> 00:10:08,700 Even destructive. Myth number 17. 168 00:10:09,000 --> 00:10:13,200 All we need is the right people to run the government. 169 00:10:13,300 --> 00:10:16,200 As Government grows. It creates more and more 170 00:10:16,200 --> 00:10:21,200 problems that are systemic. And intractable profit 171 00:10:21,200 --> 00:10:24,700 management and bureaucratic management are two very 172 00:10:24,700 --> 00:10:27,300 different. At things the former seeks to 173 00:10:27,400 --> 00:10:31,800 generate more value than cost. While the top priority of the 174 00:10:31,800 --> 00:10:37,000 latter, is the promulgation and implementation of rules and 175 00:10:37,000 --> 00:10:39,600 regulations. The bigger government becomes 176 00:10:39,900 --> 00:10:43,100 the more calls you here. Endlessly for reform, which may 177 00:10:43,100 --> 00:10:46,200 suggest there's something inherently defective about the 178 00:10:46,200 --> 00:10:50,100 political system that prevents its practitioners from ever 179 00:10:50,100 --> 00:10:53,300 getting things right from the start government-run running 180 00:10:53,300 --> 00:10:56,600 government like a business. A popular rhetorical point, but 181 00:10:56,600 --> 00:10:59,100 essentially an illusion that fails to recognize the Deep 182 00:10:59,100 --> 00:11:03,700 differences between profit-driven business and Rule 183 00:11:03,800 --> 00:11:08,300 driven government. I would also add it doesn't 184 00:11:08,300 --> 00:11:12,100 differentiate from the voluntary sector and the coercive sector 185 00:11:13,000 --> 00:11:18,000 myth number 18, Humanity can be best understood in a collective 186 00:11:18,000 --> 00:11:20,300 context. If you see the world as a 187 00:11:20,300 --> 00:11:24,600 collective lump of humanity, you'll likely come to very 188 00:11:24,600 --> 00:11:27,200 different conclusions about life and economics. 189 00:11:27,700 --> 00:11:31,100 Then, if you see it as composed of billions of Unique 190 00:11:31,100 --> 00:11:35,600 Individuals, a snowstorm is only as big as its individual 191 00:11:35,600 --> 00:11:38,900 snowflakes. Numerous abstractions are just 192 00:11:38,900 --> 00:11:41,900 that. Well, individuals are real take 193 00:11:41,900 --> 00:11:45,200 individuals out of the equation and you remove humans from 194 00:11:45,300 --> 00:11:47,800 Humanity. Myth number 19. 195 00:11:48,000 --> 00:11:53,500 Big government is a check on big business, summary big government 196 00:11:53,500 --> 00:11:57,400 and big business often play well together at the expense of 197 00:11:57,400 --> 00:12:00,000 startups, little guys and consumers. 198 00:12:01,200 --> 00:12:05,900 Artificially politically instigated barriers to entry 199 00:12:06,000 --> 00:12:09,600 make markets less competitive and dynamic and established 200 00:12:09,600 --> 00:12:13,200 firms. More monopolistic a free market. 201 00:12:13,200 --> 00:12:16,000 True capitalism not its adulterated. 202 00:12:16,000 --> 00:12:20,000 Crap at ilysm version, maximizes competition and therefore 203 00:12:20,100 --> 00:12:25,100 service to the consumer. Miss number 20, government. 204 00:12:25,100 --> 00:12:29,200 Can be a compassionate alternative to the harshness of 205 00:12:29,300 --> 00:12:34,000 the marketplace, compassion, isn't simply giving something 206 00:12:34,000 --> 00:12:35,900 away. Especially if what you're giving 207 00:12:35,900 --> 00:12:37,800 away wasn't yours in the first place. 208 00:12:38,200 --> 00:12:40,500 True. Compassion means getting 209 00:12:40,600 --> 00:12:44,500 personally involved. In stinka instinctively when we 210 00:12:44,500 --> 00:12:47,600 want to help others with our own time and resources. 211 00:12:47,800 --> 00:12:51,600 We overwhelmingly tend to do so through donations of time and 212 00:12:51,600 --> 00:12:55,400 money to private agencies. Public ones, the marketplace, 213 00:12:55,600 --> 00:12:58,500 where self-interest is a powerful motivator for the 214 00:12:58,500 --> 00:13:02,300 creation of wealth is therefore the primary source for whatever 215 00:13:02,300 --> 00:13:08,000 wealth anybody has to give away myth number 21, capitalism's 216 00:13:08,100 --> 00:13:11,900 sweatshops and child labor. Cry out for government 217 00:13:11,900 --> 00:13:15,100 intervention. Sweatshops and child labor were 218 00:13:15,100 --> 00:13:19,100 commonplace in pre-industrial pre-capitalist days because 219 00:13:19,100 --> 00:13:21,400 production and productivity were so low. 220 00:13:21,500 --> 00:13:23,200 Not because people dislike their way. 221 00:13:23,400 --> 00:13:26,900 Wives and children more than they do today, savings 222 00:13:26,900 --> 00:13:30,400 investment and economic growth, improve working and economic 223 00:13:30,400 --> 00:13:35,000 conditions faster and more shortly than well-intentioned. 224 00:13:35,000 --> 00:13:38,400 But misguided laws that simply closed doors of opportunity. 225 00:13:39,700 --> 00:13:45,400 Myth number 22, voluntary Market Arrangements, use people 226 00:13:45,700 --> 00:13:49,000 summary, Advocates of free markets, have long, been accused 227 00:13:49,000 --> 00:13:51,600 of supporting Arrangements that used people. 228 00:13:51,600 --> 00:13:56,500 It's ironic because free markets are the one economic Arrangement 229 00:13:56,800 --> 00:14:01,100 that most respects and empowers individuals markets because they 230 00:14:01,100 --> 00:14:04,300 are rooted in the free choice of individual self ownership, 231 00:14:04,300 --> 00:14:06,500 voluntary and contractual relationships. 232 00:14:06,700 --> 00:14:08,800 And customer satisfaction, arf arf. 233 00:14:09,000 --> 00:14:12,800 Less likely to use people in the pejorative sense, then 234 00:14:12,800 --> 00:14:15,800 Arrangements that are coerced, centrally planned or 235 00:14:15,800 --> 00:14:19,100 bureaucratic people should not be treated as objects of 236 00:14:19,100 --> 00:14:22,700 benevolence, but rather as Sovereign individuals with whom 237 00:14:22,700 --> 00:14:28,000 we deal voluntarily peacefully. And for the mutual benefit that 238 00:14:28,000 --> 00:14:30,600 occurs through Freedom of Choice. 239 00:14:31,400 --> 00:14:35,200 Myth number 23, the balance of trade deficit requires 240 00:14:35,200 --> 00:14:39,400 government action, each of us as individuals, have a Balance of 241 00:14:39,400 --> 00:14:43,400 trade with other individuals, but none of us care about the 242 00:14:43,400 --> 00:14:46,100 numbers. What we care about are the goods 243 00:14:46,100 --> 00:14:48,600 and services. We are trading for balance of 244 00:14:48,600 --> 00:14:51,200 trade figures. Count only merchandise. 245 00:14:51,200 --> 00:14:55,500 They leave out the huge chunk of World Trade involving other 246 00:14:55,500 --> 00:14:58,700 things from Real Estate to Securities to Services. 247 00:14:59,500 --> 00:15:04,700 No trades are deemed as anything but favorable by those engaged 248 00:15:04,700 --> 00:15:08,800 in the trading. So how can anyone add all those? 249 00:15:08,900 --> 00:15:13,000 Trades up and arrive at something unfavorable myth. 250 00:15:13,000 --> 00:15:17,400 Number 24, American squander, their incomes on themselves 251 00:15:17,400 --> 00:15:20,300 while public needs are neglected. 252 00:15:20,900 --> 00:15:24,800 If the political class gets more to spend, that means that 253 00:15:24,800 --> 00:15:27,600 private individuals have exactly that much less to spend 254 00:15:27,600 --> 00:15:30,700 according to their own choices. Authoritarianism. 255 00:15:31,000 --> 00:15:34,000 Always argues for more of what belongs to others 256 00:15:34,300 --> 00:15:39,200 authoritarians, never believe they have enough as long as If 257 00:15:39,200 --> 00:15:43,600 anybody gets to make his own choices rather than having the 258 00:15:43,600 --> 00:15:48,600 state make those choices for him, Freedom means spending your 259 00:15:48,600 --> 00:15:52,900 own money, the way you choose. Even if you sometimes choose 260 00:15:52,900 --> 00:15:56,300 foolishly and there's nothing about government that ensures 261 00:15:56,400 --> 00:15:59,500 that the people in it, who spend other people's money will, spend 262 00:15:59,500 --> 00:16:03,300 it more wisely than would those who earned it in the first 263 00:16:03,300 --> 00:16:07,700 place. Myth number 25, if Government 264 00:16:07,800 --> 00:16:12,900 doesn't relieve distress, who will summary response. 265 00:16:13,400 --> 00:16:17,000 No one can name the names in advance of those who might come 266 00:16:17,000 --> 00:16:19,100 to the aid of fellow citizens in distress. 267 00:16:19,400 --> 00:16:22,400 The question is illogical without government assistance. 268 00:16:22,400 --> 00:16:24,800 A massive amount of private voluntary. 269 00:16:24,800 --> 00:16:27,200 Aid. Has poured forth from American 270 00:16:27,200 --> 00:16:29,400 citizens, since the first settlement here. 271 00:16:29,800 --> 00:16:32,500 Is there any reason to suppose that politicians are more, 272 00:16:32,500 --> 00:16:36,700 caring compassionate or In providing relief with other 273 00:16:36,700 --> 00:16:40,300 people's money, then are the individuals who elect them in 274 00:16:40,300 --> 00:16:43,100 the first place and he'll get personally involved in the 275 00:16:43,100 --> 00:16:46,200 relief of citizens. Nearby government is not true 276 00:16:46,200 --> 00:16:50,600 charity and it politicizes, everything it touches. 277 00:16:51,300 --> 00:16:55,000 If number 26, historical preservation won't happen, 278 00:16:55,000 --> 00:16:58,200 unless the government takes charge summary. 279 00:16:58,900 --> 00:17:04,400 Why sell people And markets short when it comes to history, 280 00:17:04,700 --> 00:17:08,500 examples are endless of private preservation and restoration 281 00:17:08,700 --> 00:17:12,500 private efforts have not just been a sideshow in historical 282 00:17:12,500 --> 00:17:15,300 preservation. They have been the centerpiece 283 00:17:15,700 --> 00:17:19,900 by way of prices markets, send signals about what should be 284 00:17:19,900 --> 00:17:21,800 preserved and what should be discarded? 285 00:17:21,900 --> 00:17:24,900 Private ownership means somebody has a direct incentive to 286 00:17:24,900 --> 00:17:26,800 preserve. If government owns it. 287 00:17:27,400 --> 00:17:31,100 We all have incentives to use it and maybe even abuse something. 288 00:17:32,000 --> 00:17:34,300 That is historically valuable government. 289 00:17:34,300 --> 00:17:37,400 Ownership means, we have to trust. 290 00:17:39,000 --> 00:17:43,100 Bureaucrats to preserve, what they don't personally. 291 00:17:43,100 --> 00:17:48,600 Own myth, number 27, government must have the power to make 292 00:17:48,600 --> 00:17:51,400 people take better care of themselves. 293 00:17:51,800 --> 00:17:56,000 It's easy to fall into the Trap of the quick fix that suggests. 294 00:17:56,000 --> 00:17:59,100 The use of force to address a perceived problem. 295 00:17:59,300 --> 00:18:02,900 A thinking person will step back and consider the consequences of 296 00:18:03,000 --> 00:18:06,700 all of them, including the impact on individual rights, 297 00:18:07,300 --> 00:18:09,700 private property rights. Clearly stated and strictly 298 00:18:09,700 --> 00:18:13,300 enforce provide a better framework for society's rules 299 00:18:13,500 --> 00:18:15,800 than the whims of people who want to dictate to others, 300 00:18:15,800 --> 00:18:19,600 what's good for them. Delusion, paternalism 301 00:18:19,700 --> 00:18:23,500 dependency. Myopia impatience, power, lust, 302 00:18:23,500 --> 00:18:27,900 and self-absorption, may prompt us to call the cops, but are 303 00:18:27,900 --> 00:18:31,400 hardly sound motivations for government policy. 304 00:18:31,800 --> 00:18:35,400 Myth number 28, government spending brings jobs and 305 00:18:35,400 --> 00:18:38,300 prosperity summary the broken window fallacy. 306 00:18:38,400 --> 00:18:44,300 He essentially calls us to be thorough in our thinking, it's 307 00:18:44,300 --> 00:18:48,100 not enough to Simply see the immediate or what strikes. 308 00:18:48,100 --> 00:18:50,400 The eye. We must also consider the 309 00:18:50,400 --> 00:18:55,200 long-run effects of an act or policy on all people. 310 00:18:55,500 --> 00:18:59,400 When government spending seems to stimulate, it's because we're 311 00:18:59,400 --> 00:19:01,500 not seeing it redistributed nature. 312 00:19:02,000 --> 00:19:06,100 If Government spends more, then there is precisely that much 313 00:19:06,100 --> 00:19:10,100 less spending done by those. From whom the money is taken. 314 00:19:10,500 --> 00:19:13,300 If the government spends more and borrows to pay for it, 315 00:19:13,400 --> 00:19:19,500 instead of raising taxes, then it's today's Capital Market that 316 00:19:19,500 --> 00:19:22,000 is smaller precisely to the extent. 317 00:19:22,000 --> 00:19:24,800 Government spending is bigger myth. 318 00:19:24,800 --> 00:19:31,000 Number 29, Upton Sinclair's. The jungle proved regulation was 319 00:19:31,100 --> 00:19:32,700 required summary. Upton. 320 00:19:32,700 --> 00:19:34,900 Sinclair's novel. The Jungle is treated by 321 00:19:34,900 --> 00:19:38,600 progressives as though it were a documentary, but it Was nothing 322 00:19:38,600 --> 00:19:41,800 of the kind, it was a work of fiction full Fabrications. 323 00:19:41,800 --> 00:19:44,400 Even Teddy. Roosevelt said the author was 324 00:19:44,400 --> 00:19:48,400 hysterical and untruthful Sinclair was hired to write it 325 00:19:48,400 --> 00:19:51,600 for the purpose of advancing. Socialism in America. 326 00:19:51,600 --> 00:19:55,200 Government Meat, Inspection existed before Sinclair's book 327 00:19:55,208 --> 00:19:59,200 ever was written, if even a portion of what he wrote really 328 00:19:59,200 --> 00:20:03,700 described what was happening, routinely in Meatpacking plants, 329 00:20:03,700 --> 00:20:07,600 either the government inspectors were complicit or else, they 330 00:20:07,600 --> 00:20:12,300 were an Chablis ignorant neither of which makes for a strong case 331 00:20:12,300 --> 00:20:15,000 for new regulation. In the end, the Meat Packers 332 00:20:15,000 --> 00:20:18,400 actually supported the Meat Inspection Act because it put 333 00:20:18,400 --> 00:20:21,100 the government seal of approval on their product and got the 334 00:20:21,100 --> 00:20:25,600 taxpayers to pay for it. Myth number 30, capitalism's 335 00:20:25,600 --> 00:20:29,700 Industrial Revolution curse. The world with the horrors of 336 00:20:29,700 --> 00:20:32,700 child labor children worked before the Industrial 337 00:20:32,700 --> 00:20:35,200 Revolution. It was the Industrial Revolution 338 00:20:35,200 --> 00:20:38,600 fact, which improve productivity so that eventually Really 339 00:20:38,600 --> 00:20:42,200 parents could earn enough to afford to leave their children 340 00:20:42,200 --> 00:20:45,800 at home in Britain. The distinction between Free 341 00:20:45,800 --> 00:20:50,600 Labor, children and Parish. Apprentice children must be 342 00:20:50,600 --> 00:20:53,600 understood. The latter were under the care 343 00:20:54,200 --> 00:20:58,200 of often in different government officials, and the result can be 344 00:20:58,200 --> 00:21:02,600 hardly laid at the exclusive doorstep of capitalism. 345 00:21:03,500 --> 00:21:07,400 Myth number, 31, labor, unions, raise wages. 346 00:21:07,400 --> 00:21:12,600 And the standard of living wages can only be paid out of what is 347 00:21:12,600 --> 00:21:14,200 produced. No production. 348 00:21:14,200 --> 00:21:18,700 No wages there for greater productivity, is the key to 349 00:21:18,700 --> 00:21:22,300 higher wages unions. Typically a production Union 350 00:21:22,300 --> 00:21:25,100 activity, may result in some people getting more but without 351 00:21:25,100 --> 00:21:29,100 an increase in productivity. That simply means that some 352 00:21:29,100 --> 00:21:33,300 other people must get less. Either you bake a bigger pie for 353 00:21:33,500 --> 00:21:36,400 One or you just slice the pie up differently. 354 00:21:36,700 --> 00:21:39,500 It looks sometimes like unions have actually forced wages 355 00:21:39,500 --> 00:21:43,400 higher because of the lower wages in non-unionized 356 00:21:43,400 --> 00:21:46,300 businesses. But the latter are caused in 357 00:21:46,300 --> 00:21:51,200 part by the outflow of Labor from on unionized sectors to 358 00:21:51,400 --> 00:21:55,800 non-unionized ones unionize Auto Workers today, for example, may 359 00:21:55,900 --> 00:21:59,100 make a little more per hour than their non-unionized 360 00:21:59,100 --> 00:22:04,100 counterparts, but there are a lot fewer of them to myth. 4:33 361 00:22:04,100 --> 00:22:10,700 FDR was elected in 1932 on a progressive platform to plan the 362 00:22:10,700 --> 00:22:13,700 economy, Franklin. Roosevelt delivered, a lot of 363 00:22:13,700 --> 00:22:17,200 central planning from Washington, but that wasn't what 364 00:22:17,200 --> 00:22:20,900 he was. He asked voters to endorse him. 365 00:22:22,300 --> 00:22:26,600 That wasn't what he asked voters to endorse in the 1932 election. 366 00:22:26,900 --> 00:22:30,900 FDR attacked Hoover for greatly increasing, taxes and spending. 367 00:22:30,900 --> 00:22:33,300 But one selected did even more of both. 368 00:22:33,900 --> 00:22:37,000 FDR's close adviser James Warburg thought that FDR was 369 00:22:37,000 --> 00:22:40,300 economically, illiterate and politically opportunistic. 370 00:22:40,400 --> 00:22:43,000 Myth number 33. The Great Depression was a 371 00:22:43,000 --> 00:22:45,900 Calamity of unfettered capitalism. 372 00:22:46,100 --> 00:22:49,200 The Great Depression Did not follow a period of unfettered 373 00:22:49,200 --> 00:22:52,500 capitalism. In fact, it was made inevitable 374 00:22:53,500 --> 00:22:56,300 by erratic monetary policy from the federal government. 375 00:22:56,300 --> 00:23:00,200 Namely the Federal Reserve after years of cheap money and low. 376 00:23:00,200 --> 00:23:04,800 Interest rates the FED, set the stage for A correction with a 377 00:23:04,800 --> 00:23:07,600 policy of steep increases in interest rates. 378 00:23:07,900 --> 00:23:11,200 And a deflation of the money supply, the Hoover 379 00:23:11,200 --> 00:23:14,900 administration took a recession and made it a depression by 380 00:23:14,900 --> 00:23:18,700 dramatically choking off World Trade through higher tariffs and 381 00:23:18,700 --> 00:23:21,600 doubling the income tax Franklin, Roosevelt promised to 382 00:23:21,600 --> 00:23:25,100 undo Hoover spending and tax increases, but after he was 383 00:23:25,100 --> 00:23:28,200 elected, he did just the opposite, the New Deal, 384 00:23:28,200 --> 00:23:30,700 lengthen, the depression by preventing recovery. 385 00:23:30,700 --> 00:23:33,300 It cartelized Industries with raised costs. 386 00:23:33,500 --> 00:23:37,300 And destroyed valuable crops and cattle a depression within a 387 00:23:37,300 --> 00:23:42,100 depression occurred in 1937 after the imposition of costly, 388 00:23:42,100 --> 00:23:45,400 new labor rules, and higher taxes. 389 00:23:45,700 --> 00:23:48,900 Myth number 34, government must subsidize. 390 00:23:48,900 --> 00:23:53,500 The Arts Government funding of the Arts is not just music to 391 00:23:53,500 --> 00:23:55,200 the ears. It carries pyramid. 392 00:23:55,300 --> 00:23:59,800 All the downside of dependence on politics claims that Arts 393 00:23:59,800 --> 00:24:01,800 spending is magically multiplied. 394 00:24:02,000 --> 00:24:05,200 Our specious and Ali self-serving and never look at 395 00:24:05,200 --> 00:24:10,700 alternative uses of the same money culture arises naturally 396 00:24:10,700 --> 00:24:14,600 and spontaneously among people who choose to interact with each 397 00:24:14,600 --> 00:24:19,900 other art is part of that. But it also competes with all 398 00:24:19,900 --> 00:24:23,400 sorts of other things. People choose to do with their 399 00:24:23,400 --> 00:24:26,400 time and money. If art is truly important than 400 00:24:26,400 --> 00:24:31,800 the last thing we should want to do is politicize it or divert it 401 00:24:31,800 --> 00:24:35,800 towards those things. That people with power think we 402 00:24:35,800 --> 00:24:40,500 should see or hear myth. Number 35, government is an 403 00:24:40,500 --> 00:24:43,800 inflation fighter. When you change the definition 404 00:24:43,800 --> 00:24:46,900 of inflation, you change the responsibility for it. 405 00:24:47,100 --> 00:24:51,200 Inflation is not Rising prices. In fact, you have inflation 406 00:24:51,200 --> 00:24:55,800 first, and then as a consequence you get Rising prices inflation 407 00:24:55,800 --> 00:24:58,900 properly. Defined involves an increase in 408 00:24:58,900 --> 00:25:02,100 the supply of money. Historically the more control 409 00:25:02,100 --> 00:25:04,700 government exerts. Over money. 410 00:25:04,900 --> 00:25:08,500 The more likely the money will lose its value, the more that 411 00:25:08,500 --> 00:25:11,000 government spends and doesn't pay for with tax revenue. 412 00:25:11,200 --> 00:25:14,000 The more likely it will resort to the printing press. 413 00:25:14,300 --> 00:25:17,500 It's far more accurate to think of government as an inflation 414 00:25:17,500 --> 00:25:20,200 Factory. Not an inflation fighter. 415 00:25:20,900 --> 00:25:25,600 Myth number 36, Outsourcing is bad for the economy, Outsourcing 416 00:25:25,600 --> 00:25:28,300 occurs. When people shop around for the 417 00:25:28,300 --> 00:25:32,200 best deals, we do it all the time as consumers, if it 418 00:25:32,200 --> 00:25:35,600 produces savings. Then savings can be utilized for 419 00:25:35,800 --> 00:25:39,800 the purchase of other things. Outsourcing boosts productivity 420 00:25:40,000 --> 00:25:44,000 and living standards stopping. It means compelling Shoppers in 421 00:25:44,000 --> 00:25:47,900 the case, businesses to settle for a more costly or less 422 00:25:47,900 --> 00:25:52,000 desirable option. Myth number 37, if FDR's New 423 00:25:52,000 --> 00:25:53,800 Deal didn't end, the Great Depression. 424 00:25:53,800 --> 00:25:58,200 Then WWII did Wars aren't cures for depressions. 425 00:25:58,200 --> 00:26:01,500 They simply divert, Manpower and resources away from what 426 00:26:01,500 --> 00:26:05,600 consumers want to what? Government wants to win the 427 00:26:05,600 --> 00:26:08,700 conflict FDR's. New Deal prolong the depression 428 00:26:09,000 --> 00:26:13,200 and fortunately attempts to revive it to keep the economy. 429 00:26:13,200 --> 00:26:16,000 Going after World War two were squelched. 430 00:26:16,700 --> 00:26:20,200 The economy, didn't collapse after World War Two because 431 00:26:20,200 --> 00:26:23,700 reductions in federal spending and Taxation, encouraged 432 00:26:23,900 --> 00:26:28,000 entrepreneurship. Myth number 38, the minimum wage 433 00:26:28,100 --> 00:26:31,200 helps. The poor billions of people who 434 00:26:31,200 --> 00:26:36,400 are utterly unaffected by the minimum. because, They are 435 00:26:36,400 --> 00:26:40,400 already learning something higher to begin with see their 436 00:26:40,400 --> 00:26:44,600 wages rise almost every year some even during recessions. 437 00:26:45,000 --> 00:26:48,200 It's not a decree of Congress that does this. 438 00:26:48,400 --> 00:26:52,100 It's factors such as the productivity capital investment 439 00:26:52,100 --> 00:26:54,400 and competition in the labor market. 440 00:26:54,400 --> 00:26:57,900 You can't expect employers to pay workers more than their 441 00:26:57,900 --> 00:27:01,100 productivity is worth just because Congress demands it at 442 00:27:01,100 --> 00:27:04,700 higher prices or wages. Less is purchased. 443 00:27:04,700 --> 00:27:08,300 That's a law that How much more powerful than a minimum wage law 444 00:27:08,600 --> 00:27:12,100 from Congress? If raising the minimum wage to 445 00:27:12,100 --> 00:27:15,000 $10.10 make sense? Why not stop there? 446 00:27:15,200 --> 00:27:17,700 Why not declare that? Everyone must be paid fifty 447 00:27:17,700 --> 00:27:23,600 dollars and our myth number 39, free markets exploit women 448 00:27:23,600 --> 00:27:27,300 summary, the Freer, the market, the more opportunities there are 449 00:27:27,300 --> 00:27:32,300 for women and anyone else for that matter to progress up the 450 00:27:32,300 --> 00:27:37,200 economic ladder, most of the 17.9%, Percent wage Gap in the 451 00:27:37,200 --> 00:27:41,300 United States can be explained by a number of hours, worked 452 00:27:41,400 --> 00:27:45,700 marriage and age, women who work full-time and who have never 453 00:27:45,700 --> 00:27:49,900 married make ninety-five point. Two percent of male earnings 454 00:27:50,100 --> 00:27:55,200 narrowing, the gender wage Gap to less than 5% for those women 455 00:27:55,200 --> 00:27:59,400 who want to work. Many paid hours and invest, 456 00:27:59,600 --> 00:28:02,900 highly in education. There are more income 457 00:28:02,900 --> 00:28:08,500 opportunities in the highest. Quintiles than there ever have 458 00:28:08,500 --> 00:28:13,400 been myth number 40, the rich are getting richer and the poor 459 00:28:13,500 --> 00:28:16,600 are getting poorer Progressive, should be honest. 460 00:28:16,600 --> 00:28:19,700 And admit that the anti free-market policies, they 461 00:28:19,700 --> 00:28:22,800 promoted and achieved in the last half-century have 462 00:28:22,800 --> 00:28:26,800 disadvantage. The poor and conferred favors 463 00:28:27,100 --> 00:28:31,000 upon the rich and politically. Well-connected amazingly in 464 00:28:31,000 --> 00:28:34,100 spite of those policies. The poor overall are still 465 00:28:34,100 --> 00:28:36,000 better than they were 50 years. Ago. 466 00:28:36,200 --> 00:28:38,400 Imagine the progress that might have happened. 467 00:28:38,500 --> 00:28:41,500 Had those policies not been in place redistributing. 468 00:28:41,500 --> 00:28:44,900 Wealth is just slicing, the pie differently at the risk of 469 00:28:44,900 --> 00:28:46,100 shrinking. The pie. 470 00:28:46,900 --> 00:28:49,800 It's a static view of wealth one. 471 00:28:50,100 --> 00:28:55,300 That's greatly inferior. To a view of baking, a bigger 472 00:28:55,300 --> 00:29:00,400 pie for everyone. Myth number 41, Rockefellers 473 00:29:00,400 --> 00:29:04,000 Standard, Oil Company. Proved we needed antitrust laws 474 00:29:04,000 --> 00:29:09,800 to fight Market monopolies. If the Standard Oil company was 475 00:29:09,800 --> 00:29:12,700 any kind of Monopoly. It was not a coercive one 476 00:29:12,800 --> 00:29:16,600 because it did not derive its high and temporary market share 477 00:29:16,600 --> 00:29:20,700 from special government favors. There were lots of competitors 478 00:29:20,700 --> 00:29:25,400 to it here and abroad. If it was a monopoly then it was 479 00:29:25,900 --> 00:29:30,000 of the efficiency, variety. Meaning that it earned a high 480 00:29:30,000 --> 00:29:35,300 market share because customers liked what it offered at 481 00:29:35,300 --> 00:29:38,900 attractive prices the prices of standard products chiefly 482 00:29:38,900 --> 00:29:43,400 kerosene in the company's early history steadily fell, the 483 00:29:43,400 --> 00:29:48,100 quantity the quality steadily improved total production grew 484 00:29:48,100 --> 00:29:50,600 from year to year. This is not supposed to be the 485 00:29:50,600 --> 00:29:54,300 behavior of an evil monopolist who supposedly restricts output 486 00:29:54,300 --> 00:29:58,100 and raises prices accusation against standard. 487 00:29:58,300 --> 00:30:01,500 Predatory price cutting buying up competitors conspiracy to 488 00:30:01,500 --> 00:30:02,900 restrict output and raise prices. 489 00:30:02,900 --> 00:30:05,700 Securing railroad. Rebates, Etc. 490 00:30:05,700 --> 00:30:10,000 Sound plausible on the surface, but fall apart upon close 491 00:30:10,000 --> 00:30:14,400 inspection. Myth number 42, Jesus Christ was 492 00:30:14,400 --> 00:30:17,200 a progressive because he advocated income redistribution 493 00:30:17,200 --> 00:30:21,000 to help. The poor free will not coercion, 494 00:30:21,000 --> 00:30:24,300 is a central and consistent element in the teachings of 495 00:30:24,300 --> 00:30:27,200 Christ. It is not recorded anywhere that 496 00:30:27,200 --> 00:30:31,200 Christ called, for the To use its power to redistribute wealth 497 00:30:31,300 --> 00:30:34,500 Christ, endorse things like Choice, charity generosity, 498 00:30:34,500 --> 00:30:37,900 kindness personal responsibility, and voluntary, 499 00:30:37,900 --> 00:30:42,100 Association things that are reckon irreconcilable with 500 00:30:42,100 --> 00:30:44,900 coercively, financed redistribution schemes. 501 00:30:45,700 --> 00:30:49,700 Myth number 43, the free market cannot provide public education, 502 00:30:50,300 --> 00:30:53,200 as long as Government Can tax its citizens, and then provide 503 00:30:53,200 --> 00:30:57,600 Educational Services to them at a marginal price of zero much 504 00:30:57,600 --> 00:30:59,600 private. Acacia will never come into 505 00:30:59,600 --> 00:31:03,600 being most parents would know, more, make educational decisions 506 00:31:03,700 --> 00:31:06,700 without consulting, knowledgeable authorities, then 507 00:31:07,100 --> 00:31:09,700 they would make medical decisions without consulting. 508 00:31:09,700 --> 00:31:12,000 Doctors. We don't use the small number of 509 00:31:12,000 --> 00:31:15,400 neglectful parents as a pretext for government, controlling or 510 00:31:15,500 --> 00:31:18,900 Finance of religion. Nor should we use it as a 511 00:31:18,900 --> 00:31:22,100 pretext for government control or financing of schooling. 512 00:31:22,400 --> 00:31:25,500 Government domination of Education assures that the 513 00:31:25,500 --> 00:31:27,700 entrepreneurial Innovation and creativity. 514 00:31:27,800 --> 00:31:30,800 We are Touch them to and say, the computer industry will be 515 00:31:30,800 --> 00:31:36,400 missing from education. Myth number 44, Warren Buffett's 516 00:31:36,400 --> 00:31:40,100 federal tax rate is less than his secretaries. 517 00:31:41,200 --> 00:31:44,600 Warren Buffett, created a new tax metric by combining 518 00:31:44,600 --> 00:31:49,200 individual income, taxes and payroll taxes into one federal 519 00:31:49,200 --> 00:31:52,500 tax rate. He then asserted that his 2010 520 00:31:52,500 --> 00:31:58,000 federal tax rate of 17.4% was 18.6 percentage. 521 00:31:58,200 --> 00:32:03,900 Points lower than the 36 percent average federal tax rate paid. 522 00:32:03,900 --> 00:32:09,700 By his office workers the 2010 Social Security, and Medicare 523 00:32:09,700 --> 00:32:13,700 taxing mechanisms in place. In 2010 were inherently Fair, 524 00:32:13,800 --> 00:32:17,900 ascribing a federal tax rate differential to employee. 525 00:32:17,900 --> 00:32:23,000 Paid payroll taxes as buffeted is analytically incorrect. 526 00:32:23,000 --> 00:32:27,700 This 7.65 percentage Point federal tax rate. 527 00:32:28,600 --> 00:32:32,300 Is a mirage. I must disagree here. 528 00:32:32,300 --> 00:32:35,800 There is nothing. Inherently fair about one person 529 00:32:35,800 --> 00:32:38,900 or group violently taking property from another 530 00:32:39,500 --> 00:32:43,200 incredibly. Buffett included employer-paid 531 00:32:43,200 --> 00:32:46,500 matching payroll taxes into his calculations as well. 532 00:32:46,600 --> 00:32:50,100 Thus doubling the 7.65 percentage Point differential 533 00:32:50,500 --> 00:32:54,600 perfect ignored in his calculations, roughly 1.6 534 00:32:54,600 --> 00:32:57,700 billion in corporate income taxes born by him in. 535 00:32:58,200 --> 00:33:01,700 Ten as a one-third owner of Berkshire Hathaway. 536 00:33:01,900 --> 00:33:05,100 He also ignored his share roughly 400 million dollars of 537 00:33:05,100 --> 00:33:08,900 Social Security and Medicare matching taxes paid by 538 00:33:08,900 --> 00:33:11,600 Berkshire. Hathaway, the analytically 539 00:33:11,600 --> 00:33:15,900 correct comparison, excluding individual payroll taxes and 540 00:33:15,900 --> 00:33:20,200 including corporate income and payroll taxes shows that buffets 541 00:33:20,200 --> 00:33:24,700 federal tax rate was actually over 10 percentage points higher 542 00:33:24,800 --> 00:33:28,100 than the average rate of his office workers in 2010. 543 00:33:29,200 --> 00:33:34,300 Miss number 45, profit is evidence of suspicious Behavior 544 00:33:34,700 --> 00:33:38,400 profit earned in a free and competitive market is the target 545 00:33:38,500 --> 00:33:42,900 of the Miss informed and uninformed. 546 00:33:43,100 --> 00:33:46,700 It's evidence of value-added. Not value subtracted. 547 00:33:46,700 --> 00:33:50,900 Profit is a great motivator and incentivize ER, as most 548 00:33:50,900 --> 00:33:53,400 economists. See at profit is composed of 549 00:33:53,400 --> 00:33:58,100 managerial remuneration, 's interest on Capital invested. 550 00:33:58,200 --> 00:34:02,800 David and entrepreneurial or economic profits by itself. 551 00:34:02,800 --> 00:34:06,300 The sheer dollar amount of a firm's profit. 552 00:34:06,300 --> 00:34:12,000 Tells you nothing about profit as a portion of sales or as a 553 00:34:12,000 --> 00:34:16,699 return on Capital invested, myth number, 46, robots, and 554 00:34:16,699 --> 00:34:21,400 computerization cause unemployment the use of robots 555 00:34:21,400 --> 00:34:25,600 to increase productivity. While decreasing costs Works 556 00:34:25,600 --> 00:34:29,800 basically the same way as past. Advances like the production 557 00:34:29,800 --> 00:34:33,699 line have worked those advances improve the quality of life of 558 00:34:33,699 --> 00:34:37,900 billions of people and created new forms of employment that 559 00:34:37,900 --> 00:34:42,100 were unimaginable at the time compared to humans robots are 560 00:34:42,100 --> 00:34:46,000 cheaper, do employee partly for natural reasons, and partly, 561 00:34:46,000 --> 00:34:49,600 because government intervention natural costs, include training, 562 00:34:49,600 --> 00:34:52,400 safety needs over time and personal problems. 563 00:34:52,400 --> 00:34:56,500 Such as hiring, firing and on-the-job theft unnatural 564 00:34:56,600 --> 00:35:00,300 non-market costs stem from From cronyism dispensed by 565 00:35:00,300 --> 00:35:04,400 governments, and increase. Use of robots will cause labor 566 00:35:04,500 --> 00:35:08,000 dislocation which will be painful for many workers in the 567 00:35:08,000 --> 00:35:10,200 near term. But if Market forces are allowed 568 00:35:10,200 --> 00:35:13,800 to function, the dislocation will be temporary myth. 569 00:35:13,800 --> 00:35:18,500 Number 47, statistical disparities between races, prove 570 00:35:18,500 --> 00:35:21,000 discrimination. There is no evidence from 571 00:35:21,000 --> 00:35:24,500 anywhere on Earth or any time in history, which demonstrates 572 00:35:24,500 --> 00:35:27,700 that, but for discrimination, there would be proportional 573 00:35:27,700 --> 00:35:31,100 representation. Station and absence of growth 574 00:35:31,100 --> 00:35:34,600 statistical disparities by race sex nationality. 575 00:35:34,600 --> 00:35:39,600 And or any other human characteristic, casual 576 00:35:39,600 --> 00:35:43,300 observation of ice hockey, game suggests that blacks attendance 577 00:35:43,300 --> 00:35:46,700 is by no means proportional to their numbers in the general 578 00:35:46,700 --> 00:35:50,400 population, but that's not evidence of discrimination. 579 00:35:51,000 --> 00:35:54,000 Myth number 48. The solution to overpopulation 580 00:35:54,000 --> 00:35:58,000 is population control. There is no relationship between 581 00:35:58,200 --> 00:36:03,300 In high populations disaster and poverty by a considerable 582 00:36:03,300 --> 00:36:06,000 measure poverty, and underdeveloped Nations is 583 00:36:06,000 --> 00:36:07,900 directly attributed to their leaders. 584 00:36:08,100 --> 00:36:12,300 Heeding the advice of Western experts who Champion repressive 585 00:36:12,300 --> 00:36:15,000 redistributive and anti private property Solutions. 586 00:36:15,400 --> 00:36:18,000 What are called overpopulation problems. 587 00:36:18,000 --> 00:36:21,100 Result from socialistic government practices, that 588 00:36:21,100 --> 00:36:24,800 reduce the capacity of people to educate clothes house and feed 589 00:36:24,800 --> 00:36:28,000 themselves. Myth number 49 resource. 590 00:36:28,100 --> 00:36:32,000 Poor countries need strong, central planning to develop Hong 591 00:36:32,000 --> 00:36:35,100 Kong a small rock with little resources, but still a lot of 592 00:36:35,100 --> 00:36:38,000 economic freedom shows that freedom goes a long way to 593 00:36:38,000 --> 00:36:40,600 ensuring progress. No matter how few your 594 00:36:40,600 --> 00:36:43,300 resources. Are the biggest economic flops 595 00:36:43,300 --> 00:36:47,600 of the past Century, were both centrally planned and infatuated 596 00:36:47,600 --> 00:36:50,500 with numbers in spite of being resource-rich. 597 00:36:51,800 --> 00:36:56,900 Myth number 50, people love the Robin Hood story because he took 598 00:36:56,900 --> 00:37:01,500 from the rich to give to the poor Generations have grown up 599 00:37:01,500 --> 00:37:04,100 with the heroic idea. Love Robin Hood, robbing from 600 00:37:04,100 --> 00:37:07,000 the rich and giving to the poor, but it was only in the 19th 601 00:37:07,000 --> 00:37:11,500 century that he amended his modus operandi to include giving 602 00:37:11,500 --> 00:37:15,300 to the poor Market forces emerging with the breakdown of 603 00:37:15,300 --> 00:37:19,300 feudalism. In the late Middle Ages made the 604 00:37:19,300 --> 00:37:21,500 lives of working people and measure. 605 00:37:21,700 --> 00:37:24,700 Lee better and the Nobles who lost their bidding wars for 606 00:37:24,700 --> 00:37:28,700 their services, didn't like it the targets of Robin Hood and 607 00:37:28,700 --> 00:37:32,800 his merry men were Rich from Plunder, not production. 608 00:37:33,300 --> 00:37:37,600 Myth number 51 greedy capitalist, take advantage of 609 00:37:37,600 --> 00:37:42,100 people and natural disasters. Price controls are the answers. 610 00:37:42,200 --> 00:37:46,000 Prices are not set arbitrarily. They are what they are for a 611 00:37:46,000 --> 00:37:48,800 variety of reasons. These reasons are summarized by 612 00:37:48,800 --> 00:37:51,400 two words supply and demand government. 613 00:37:51,600 --> 00:37:55,400 Pros, imposed prohibitions, on price gouging mask, the 614 00:37:55,400 --> 00:37:58,900 underlying reality shielding people from the truth of it, 615 00:37:58,900 --> 00:38:02,500 higher prices in the wake of reduce supplies result in 616 00:38:02,500 --> 00:38:06,300 conservation of what remains and the encouragement of new 617 00:38:06,300 --> 00:38:10,400 supplies, precisely, what the situation calls for myth. 618 00:38:10,400 --> 00:38:13,100 Number 52, progressives have good intentions. 619 00:38:13,200 --> 00:38:16,400 So what else is required one thing Progressive. 620 00:38:16,400 --> 00:38:19,300 Share with almost everyone else has a very high level of 621 00:38:19,300 --> 00:38:23,600 expectations for the private sector and In a very low, one 622 00:38:23,700 --> 00:38:25,500 for the public sector. Good! 623 00:38:25,500 --> 00:38:29,700 Intentions are by themselves nowhere near enough. 624 00:38:29,800 --> 00:38:32,000 Thank you for watching Keith, and I don't tread on anyone.